Carmel-by-the-Sea City Council
July 6, 2026

MRSWMP MOA Revision Draft April 2026 Page 21 of 35
B.3: Indirect Costs
Indirect costs are defined as cost items that cannot be identified specifically with a single cost objective in an economically feasible manner.

For the costs covered by this AGREEMENT, indirect costs will be charged at 10% of all other direct costs and will be updated, as deemed necessary, with Consumer Price Index adjustments for the San Francisco Region.

The following are the types of indirect costs expected to be incurred in conducting Program activities:
 Use of AGENCY electronic processing systems, including hardware/software for printers, modems, and financial and data processing. Costs include depreciation as well as internal and external maintenance, service agreements, software support, and payroll processing.  The use of supplies and/or services that are not feasible or not cost-effective to segregate, such as disposables, shared office supplies, forms, paper, and postage.  Purchasing services, including AGENCY staff time seeking bids, communicating with vendors, preparing requisitions, and issuing purchase orders.  Use of existing office equipment (copiers, fax machines, scanners, computers) and their related repair, supplies, and maintenance.
 Centralized telephone system and use of AGENCY cellular phones.  AGENCY Administration building costs (use, utilities, insurance).  Administrative services including agency-wide training programs (such as safety, sexual harassment prevention), employee assistance programs, and general office support.  Use of upper-level AGENCY staff for overall coordination, management, and support of stormwater permitting activities and Support Staff work performance.  Utilization of Program Administrator Attorney to provide legal input on items pertaining to Program activities, at the request of the AGENCY or MC.

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MRSWMP MOA Revision Draft April 2026 Page 22 of 35
B.4: Budget Amendment Form
Monterey Regional Stormwater
Management Program (MRSWMP)
Budget Amendment Form
Amendment No. Date:

From: Program Administrator [support staff names], Monterey One Water Description: [Describe request]
List Any Attachments: [Please provide if any.]
Amendment Dollar Amount: Not to exceed [enter amount]
APPROVED BY:

MRSWMP Management Committee Chair Monterey One Water Program Administrator Date: Date:

Signed: Signed:

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MRSWMP MOA Revision Draft April 2026 Page 23 of 35
EXHIBIT C: AGENCY PROCUREMENT POLICY
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MRSWMP MOA Revision Draft April 2026 Page 24 of 35
Monterey One Water Procurement Policy
The PARTIES to the MRSWMP MOA shall abide by the AGENCY Procurement Policy with respect to general purchases and consultant services for Program activities.

Should the AGENCY Board of Directors adopt new thresholds for purchasing authority levels of approval or required processes, the Program Administrator shall notify the MC in writing as soon as possible.

Table C.1 and C.2 show the Procurement Policy cost ranges and associated requirements, as approved by the AGENCY Board of Directors July 1, 2017, and amended October 28, 2022.

Table C.1: Solicitation Types
Cost Range Type of Solicitation
Less than $5,000 Informal; solicit one written quote
$5,000 - $35,000 Informal; solicit three (3) written quotes Over $35,000 Advertise for Sealed Bids or issue a Request for Proposals/Qualifications Table C.2: Authority Levels
Position Authority Limit
Designated Employees $11,000
Supervisor $25,000
Manager/Director $40,000
Director $60,000
Assistant General Manager/Director of Finance $80,000
General Manager $135,000
Board of Directors $135,001 or more
ATTACHMENT 3

MRSWMP MOA Revision Draft April 2026 Page 25 of 35
EXHIBIT D: DUTIES OF

THE PROGRAM ADMINISTRATOR &

PROGRAM ADMINISTRATOR SUPPORT STAFF
ATTACHMENT 3

MRSWMP MOA Update Draft April 2026 Page 26 of 34
D.1: Duties of the Program Administrator
Program Administrator: The Program Administrator shall perform the following duties:
 Assist in the recruitment, management, supervision, and retention of Stormwater Program Administrator Support Staff.
 Provide assistance in financial oversight, to include basic Program accounting services and Program budget management, of Stormwater Program Administrator Support Staff.  Provide overall coordination, management, and support of Program activities.

Program Administrator Support Staff: The Stormwater Program Administrator Support Staff shall perform the following duties:
 The Program Administrator Support Staff will be paid from Program funds in accordance with the adopted Program budget.
 Work assignments are given to the Program Administrator by the MC and not by individual PERMITTEES.
 The Program Administrator Support Staff are not responsible for providing program management services related to individual PERMITTEES’ Community-Specific Programs.  In conformance with the Brown Act, arrange for and facilitate meetings of the MC, including making meeting room arrangements, preparation and distribution of agenda materials and meeting notices, and preparation and distribution of meeting minutes.  Advise the MC to ensure that the PERMITTEES are in conformance with Robert's Rules of Order and parliamentary processes for meetings and decision making.  Permit compliance management, including maintaining and promulgating an up-to-date schedule of the activities to be conducted by the MC and its individual PERMITTEES.

Anticipate plans, procedures, policies, and other items necessary to carry out the commitments and obligations under the Program and MS4 Permits; prepare and present same to the MC for their review, direction, and approval.  Prepare the consolidated Regional Annual Report required by the Permit and other permitrelated reports and documents.  Coordinate with RWQCB and SWRCB on Phase 2 Small Municipal Storm Water permitting issues at the direction of the MC.
 As directed by the MC, prepare updates to the Program in conjunction with permit renewals and/or implementation by the SWRCB and/or the RWQCB of new permits or permit requirements.
 At the direction of the MC, manage budget preparation and execution on behalf of the PERMITTEES, including recordation of employee expenses and the proper apportionment to the PARTICIPATING ENTITIES.
 Work with Program Administrator accounting staff with regard to accounts payable, receivable, and invoicing, and review and process Outside Consultant invoices in a timely manner.
 At the direction of the MC, manage contracts with and manage the work of Outside Consultants to perform Program tasks, if deemed necessary and approved by the MC.

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MRSWMP MOA Update Draft April 2026 Page 27 of 34
 Interact with additional Program Administrator staff, such as secretarial, clerical, accounting, and source control, to carry out the work of the Program Administrator Support Staff.  Maintain documents and files both electronically and in hard copy in a logical and understandable manner.
 Arrange for training programs to be conducted to fulfill Program Best Management Practices requirements at the direction of the MC. Such work may involve contracting with training consultants or preparing and presenting the training using in-house resources.  Maintain an up-to-date awareness and knowledge of State and Federal stormwater requirements and, as directed, California Marine Protected Area policies and requirements and Monterey Bay National Sanctuary programs and requirements. Keep the MC sufficiently briefed on programs, potential changes in regulations, grants, and other such matters so that the MC may provide direction and take timely action regarding these types of items.  Participate in California Stormwater Quality Association (CASQA), SWRCB, and RWQCB activities such as meetings, programs, etc. when and if directed by the MC to do so.  Prepare other documents such as correspondence to regulatory agencies and advocacy organizations for review, editing, and finalization by the MC. If so directed by the MC, participate in State task forces and other groups pertaining to Program matters.  As needed, and if so directed by the MC, assist the Public Education and Public Outreach Program Coordinator with such activities as public education, public outreach events, storm drain stenciling, publicity, grant writing, water quality monitoring, and source tracking.  Research and report on various topics of interest to the MC, at the direction of the MC.

Program Administrator Evaluations: At the end of each fiscal year, the full Management Committee (MC) shall conduct an annual performance evaluation of the AGENCY. This evaluation shall be carried out during an Ad Hoc Committee meeting, with the participation of the Program Administrator. Each MC Member shall assess independently the AGENCY’s performance using the standardized evaluation template provided in EXHIBIT D.2. This process ensures transparency, accountability, and continuous improvement in the implementation of the AGREEMENT.

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MRSWMP MOA Update Draft April 2026 Page 28 of 34
D.2: Program Administrator Evaluation Template
Agency: Monterey One Water, MRSWMP Program Administrator (Agency) Support Staff Members:

Performance Feedback Period:

Evaluator: Date of Discussion:

COMPETENCY REVIEW
Please provide feedback on the Agency’s performance relating to the following competencies and specify the appropriate Performance Standards value (defined in description below).  Accuracy & Quality of Work
 Decision Making
 Innovation & Creativity
 Planning & Goal Setting
 Problem Solving
 Teamwork, Consultant Coordination
 Other
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MRSWMP MOA Update Draft April 2026 Page 29 of 34

PROGRAM AREAS OF RESPONSIBILITY
Given the two major categories of Program Administrator responsibilities, summarize the efficacy of these elements:

Administration:

Outreach:

GOALS & EXPECTATIONS
Stormwater Permit Priorities:

Accomplishments:

Incomplete this year:

GOAL SETTING
Identify and list the most important goals that support the MRSWMP objectives for the next review cycle, and indicate how to evaluate goals for success:

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MRSWMP MOA Update Draft April 2026 Page 30 of 34

SUMMARY OF OVERALL PERFORMANCE
Please summarize the overall performance of the Program Administrator and assign a Performance Standards value.

AGENCY COMMENTS
__________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________ __________________________________________________________________________________________

PERFORMANCE STANDARDS
E4 = Exceeds Performance Expectations
Work can be described as consistently exceptional, regularly exceeding Program objectives, goals, and standards.
3P = Performs Well
Strong performance and meets the Program’s high expectations and standards. Can be relied upon to consistently perform quality work that furthers the Program’s goals and objectives. 2N = Not Meeting Expectations
Agency is not fully meeting all expectations of the job. 1C = Corrective Action
Agency is not meeting performance expectations and needs to improve in order to retain the role of Program Administrator. A corrective action plan must accompany this document.

The Program Administrator has reviewed this document and discussed the contents with the Committee.
____________________________________________________________________________________ Program Administrator Representative Signature Date
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EXHIBIT E: DEFINITIONS
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MRSWMP MOA Update Draft April 2026 Page 32 of 34
Definitions
Term Definition
40 CFR 122.6 "States authorized to administer the NPDES program may continue either EPA or State-issued permits until the effective date of the new permits, if State law allows."
ADA Americans with Disabilities Act
AGENCY Monterey One Water, a JPA organized under California law AGREEMENT Memorandum of Agreement, as signed in 2025 between individual MS4 permit holders
Brown Act Also, Ralph M. Brown Act. Government Code Section 54950 et seq., regulating the procedures of MC meetings to ensure public access and transparency
CASQA California Stormwater Quality Association
Clean Water Act section
402(p)(6)
"Not later than October 1, 1993, the Administrator, in
consultation with State and local officials, shall issue regulations (based on the results of the studies conducted under paragraph (5)) which designate stormwater discharges, other than those discharges described in paragraph (2), to be regulated to protect water quality and shall establish a comprehensive program to regulate such designated sources. The program shall, at a minimum, (A) establish priorities, (B) establish requirements for State stormwater management programs, and (C) establish expeditious deadlines. The program may include performance standards, guidelines, guidance, and management practices and treatment requirements, as appropriate."
Community-Specific
Programs
Each permit-holding jurisdiction must implement stormwater management requirements specified in their respective MS4 permits. These programs are separate from regional
coordination efforts and unique to each PERMITTEE.

COORDINATING ENTITIES Non-traditional agencies that are not subject to similar permit requirements and include land parcels adjoining PERMITTEE areas that may impact shared watersheds
Counterpart A copy of the signed MOA, whether that be shared electronically or in hard copy
CWA Federal Clean Water Act
Duly Authorized
Representative
An individual with the authority to enter into agreements on behalf of each jurisdiction
DWQ State Water Resources Control Board Division of Water Quality EPA Federal Environmental Protection Agency
General Permit Water Quality Order No. 2003-005- DWQ, NPDES General Permit CAS000004 WDRs for Storm Water Discharges from
Small Municipal Separate Storm Sewer Systems, adopted April 30, 2003
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MRSWMP MOA Update Draft April 2026 Page 33 of 34
Government Code Section
54950 et seq.

The Ralph M. Brown Act (Brown Act), pertaining to guidelines for public meetings to ensure public access and transparency Government Code Section
810.8
"'Injury' means death, injury to a person, damage to or loss of property, or any other injury that a person may suffer to their person, reputation, character, feelings or estate, of such nature that it would be actionable if inflicted by a private person." Government Code Section
895.4
"As part of any agreement, the public entities may provide for contribution or indemnification by any or all of the public entities that are parties to the agreement upon any liability arising out of the performance of the agreement."
Government Code Section
895.6
"Unless the public entities that are parties to an agreement otherwise provide in the agreement, if a public entity is held liable upon any judgment for damages caused by a negligent or wrongful act or omission occurring in the performance of the agreement and pays in excess of its pro rata share in satisfaction of such judgment, such public entity is entitled to contribution from each of the other public entities that are parties to the agreement. The pro rata share of each public entity is
determined by dividing the total amount of the judgment by the number of public entities that are parties to the agreement. The right of contribution is limited to the amount paid in satisfaction of the judgment in excess of the pro rata share of the public entity so paying. No public entity may be compelled to make contribution beyond its own pro rata share of the entire judgment."
JPA Joint Powers Authority
Management Committee The official management and oversight body of MRSWMP MOA Memorandum of Agreement
MONTEREY ONE WATER A JPA organized under the laws of the State of California MRSWMP Monterey Regional Storm Water Management Program MS4 Municipal Separate Storm Sewer System
NPDES National Pollutant Discharge Elimination System
Order California Water Quality Order No. 2013-0001-DWQ NPDES General Permit No. CAS000004, adopted February 5, 2013
Outside Contractors Any consultant(s) or contractor(s) to be paid from Program funds, who are selected by the Program Administrator to perform duties related to permit compliance activities
PARTY, or collectively as

PARTIES
The AGENCY and PERMITTEES signing onto the 2025 MOA
PERMITTEE, or collectively as

PERMITTEES
City of Carmel-by-the-Sea, a municipal corporation of California; City of Del Rey Oaks, a municipal corporation of California; City of Monterey, a municipal corporation of California; City of Pacific Grove, a municipal corporation of California; City of Sand City, a municipal corporation of California; City of Seaside, a municipal corporation of California; and County of Monterey, a political subdivision of California.

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MRSWMP MOA Update Draft April 2026 Page 34 of 34
Program Monterey Regional Storm Water Management Program Program Administrator Monterey One Water, a JPA organized under California law Program Attorney An attorney or firm selected by the MC that is experienced with the Clean Water Act and Municipal Storm Water NPDES Permits to provide legal advice to the Management Committee on all matters involving administration of the Program's NPDES Permit and such other matters upon which the Management
Committee may seek legal advice or request legal
representation
RWQCB California Regional Quality Control Board - Central Coastal Basin
SWRCB California State Water Resources Control Board
WDQ Waste Discharge Requirements
ATTACHMENT 3

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Justin Ono, City Forester
APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Resolution 2026-049, approving Change Orders #2 and #3 for the City’s On-Call Landscape Service Contractors, Town & Country, increasing the total not-to-exceed contract limit from $229,200 to $266,362 for Fiscal Year 2025/26 and $340,000 for Fiscal Year 2026/27
RECOMMENDATION:

Adopt Resolution 2026-049 (Attachment 1) approving Change Orders #2 and #3 for the City’s On-Call Landscape Maintenance Services contract with Town & Country, with a not-to-exceed fee of $266,362 for Fiscal Year 2025/26 and $340,000 for Fiscal Year 2026/27.

BACKGROUND / SUMMARY:

In October 2022, Council awarded a $175,000 On-Call Landscape Maintenance Services contract to Town and Country Gardening and Landscaping.

In June 2024, Council approved $229,200 for landscape services for FY 2024/25, which incorporated roughly $40,000 in costs for landscaping and irrigation work along the Scenic Pathway.

In this current Fiscal Year 2025-26, the City expanded Town & Country’s tasks to include several CIP Landscape renovations for the Rio Road Medians and Devendorf Park.

The total of these expanded services amounts to $37,162. With the $229,200 contract

limit previously set by Change Order #1, adding the additional $37,162 via Change Order #2 would amount to a total not-to-exceed of $266,362 for Fiscal Year 2025-26.

For the Fiscal Year 2026/2027 Council appropriated $340,000 for landscape maintenance and Change Order 3 raises the contract limit of $266,362 set by Change order #2 to $340,000.

With Council approval, the following chart details Change Order #2:

Contractor Original
Contract
(FY 22/23 and
FY 23/24)
Revised
Contract with
Change Order
#1
(FY 24/25)
Revised
Contract with
Change Order
#2
(FY 25/26)
Revised
Contract with
Change Order
#3
(FY 26/27)
Town &
Country
$175,000 $229,200 $266,362.00 $340,000
Our contractor performs work that our City personnel would otherwise be unable to, given the extent of the 24 locations the contractor currently maintains. The City employs one gardener/landscaper who continues to contribute to landscaping in the City; however, this maintenance worker is also a critical member of the City’s tree crew.

Given the extensive needs of Forestry staff at this time, the City is allocating appropriate funds to landscaping services to allow for our tree crew to focus primarily on maintaining trees in the public rights of way, while balancing landscaping work as needed.

Each year, the city reevaluates the locations which need service. The following is a list of the 24 current locations our contractor maintains, with the supervision and input of our City Forester, Assistant City Forester, and gardener/Maintenance Workers:

1. Boardwalk and Viewing Platform Located at Del Mar Parking Lot and Ocean Avenue

2. Public Works and Carmel Police Department

3. Tennis Courts and Parking Areas in Forest Hill Park

4. Vista Lobos Park

5. First Murphy Park and House Garden

6. Sunset Center North Lot

7. Forest Hill Park: Lower Section

8. Flanders Mansion Grounds and Driveway Circle

9. Lower Ocean Avenue Pathways: North and south sides of Ocean Avenue between Monte Verde and Del Mar

10. Upper Ocean Avenue Landscape and Path: Junipero Avenue to East City Limits

11. Ocean Avenue Medians: Between Junipero Avenue and Monte Verde Street

12. Harrison Memorial Library Park Branch

13. City Hall

14. 9th Avenue Easements (Mission to Junipero, Junipero to 9th, Santa Fe to 9th)

15. Rio Road Medians Between Junipero and Lasuen Pathway

16. Lester Rowntree Native Plant Garden

17. Pathway at San Carlos Street and 2nd Avenue

18. 4th Avenue Pathways Between Monte Verde Street and San Antonio Street, Including Boardwalk and Stairways

19. Post Office Plaza and Parking Lot

20. Harrison Memorial Walkway

21. Jane Powers Walkway

22. Devendorf Park

23. Lincoln Between 4th and 5th Avenue

24. Beach
Environmental Evaluation
This action does not constitute a project within the meaning of the California Environmental Quality Act under Public Resources Code Section 21065. It has no potential to cause either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment and, therefore, does not require environmental review.

FISCAL IMPACT:

Sufficient funding is available in the Forestry Contractual Services Account #101-119- 45-42001 as well as CIP Account #311-301-00-43008 to cover the amounts described

above in Fiscal Year 2025/26. CIP projects include the Rio Medians Project and Devendorf Park Improvements, of which $38,492.00 was spent on Town & Country’s contribution to the projects.

Total budget from each account for FY 25/26:

Operating budget: $227,870
CIP Projects: $38,492
Council approved $340,000 for FY 26/27 to be used from Forestry, Parks, and Beach’s Operating budget Account #101-119-45-42001.

PRIOR CITY COUNCIL ACTION:

In October 2022, Council awarded a three-year, $175,000 On-Call Landscape Maintenance Services contract to Town and Country Gardening and Landscaping.In July 2024, Change Order #1 was approved by Council to increase the contract limit to $229,200 via Resolution 2024-056.

ATTACHMENTS:

1. Resolution 2026-049

ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2026-049

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE CHANGE ORDERS NO. 2 AND NO.3 FOR THE ON-CALL LANDSCAPE MAINTENANCE SERVICES CONTRACT, IN THE AMOUNT OF $266,362 FOR FISCAL YEAR 2025/26 AND $340,000 FOR FISCAL YEAR 2026/27
WHEREAS, in October 2022, Council awarded an On-Call Landscape Maintenance Services contract to Town & Country Gardening and Landscaping; and WHEREAS, in Fiscal Years 2022/23 and 2023/24, the City maintained a contract with a not-to-exceed fee of $175,000; and
WHEREAS, in June 2024, Council approved funding in the amount of $229,200 for landscape contract services for Fiscal Year 2024/25; and WHEREAS, Change Order No. 1 to this contract was issued to increase the $175,000 contract by $59,200, for a total of $229,200; and
WHEREAS Change Order No 2 to this contract will be issued to increase the $229,200 contract by $37,162, for a total of $266,362; and
WHEREAS Change Order No 3 to this contract will be issued to increase the $266,362 contract by $73,638, for a total of $340,000.

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

Authorize the City Administrator to execute Change Orders No. 2 and No. 3 to allocate $266,638 to the On-Call Landscape Maintenance Services contract for the 2025/26 Fiscal Year and $340,000 for the 2026/27 Fiscal Year.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this 6th day June 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:
_________________________ _________________________
Dale Byrne, Mayor Nova Romero, MMC, City Clerk

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Acting City Administrator APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Resolution 2026-050 authorizing the City Administrator to execute an agreement with the Church of the Wayfarer to lease a portion of the Church building for use as a temporary library location during the Harrison Memorial Library Restoration Project.

RECOMMENDATION:

Adopt Resolution 2026-050 (Attachment 1) authorizing the City Administrator to execute an agreement with the Church of the Wayfarer to lease a portion of the Church building for use as a temporary library location during the Harrison Memorial Library Restoration Project.

BACKGROUND / SUMMARY:

As the Harrison Memorial Library prepares for the upcoming Centennial Renovation Project, the City has been working with the Carmel Public Library Foundation (CPLF) to develop a temporary location that will allow library services to continue during construction. Carlson Hall at The Church of the Wayfarer has been identified as the best location to serve as the temporary library and community space.

Carlson Hall is uniquely suited to serve as the City's temporary library. For many years, it has functioned as a welcoming gathering place for the congregation and broader community, making it a natural transition into a temporary civic space. Its size and flexible layout will allow the City to establish a library that continues to provide meaningful services to residents of all ages, including dedicated space for teens, while also providing appropriate work areas for library staff. The result is a temporary facility that reflects the important role the Harrison Memorial Library plays in the cultural and

civic life of Carmel-by-the-Sea.

Over the past few months, the City, CPLF and the Church have been working on a plan for the space and terms of a lease. The proposed lease provides approximately 2,000 square feet of space for a term of twenty-four (24) months, with an estimated commencement date of September 1, 2026. The lease also provides for early access beginning in July to allow the City to complete necessary tenant improvements and prepare the facility for library operations. The lease, which has been signed by the Church, has been included as Attachment 2.

The proposed lease establishes the terms under which the City will occupy Carlson Hall, including monthly rent of $6,250, payment of a proportionate share of utilities and trash service, and the ability to complete tenant improvements necessary to adapt the space for temporary library operations. The agreement also includes an option for a month-to-month extension should additional occupancy time be required.

City staff anticipates beginning tenant improvements in late July. Staff will complete those improvements that can reasonably be accomplished using in-house personnel and resources. Should additional improvements or specialized work be required beyond the City's capabilities, the Carmel Public Library Foundation has agreed to fund those costs. The City will be responsible for the cost of utilities and trash service during the lease term, as provided in the lease agreement. Utility costs are expected to be modest and can be accommodated within the Library operating budget.

FISCAL IMPACT:

Costs associated with the temporary library space will largely be paid for by the Carmel Public Library Foundation as part of the Harrison Memorial Library Project, except for utilities and staff time. City Staff time may be spent during the move, and a pro-rated share of the utilities will also be paid by the City, both of which are already accounted for in the FY 2026/27 adopted operating budget.

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS:

1. Resolution 2026-050

2. Lease Agreement with Church of the Wayfarer

ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2026-050

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

AUTHORIZING THE CITY ADMINISTRATOR TO EXECUTE AN AGREEMENT WITH THE

CHURCH OF THE WAYFARER TO LEASE A PORTION OF CARLSON HALL FOR USE AS A

TEMPORARY LIBRARY LOCATION DURING THE HARRISON MEMORIAL LIBRARY

RESTORATION PROJECT
WHEREAS, the Harrison Memorial Library is preparing for the upcoming Harrison Memorial Library Restoration Project, also referred to as the Centennial Renovation Project; and WHEREAS, during construction, the City desires to provide a temporary library location so that library services may continue to be available to the Carmel-by-the-Sea community; and WHEREAS, the City has worked with the Carmel Public Library Foundation to identify an appropriate temporary location for library operations during the restoration project; and WHEREAS, Carlson Hall at the Church of the Wayfarer has been identified as a suitable temporary location because of its size, layout, community-serving function, and ability to accommodate library services, staff work areas, and public use during construction; and WHEREAS, the proposed lease provides for the City’s use of approximately 2,000 square feet of space at Carlson Hall for a term of twenty-four months, with an estimated commencement date of September 1, 2026, and early access beginning in July 2026 to allow the City to complete tenant improvements and prepare the space for library operations; and WHEREAS, the proposed lease provides for monthly rent in the amount of $6,250, the City’s payment of a proportionate share of utilities and trash service, and the ability to complete tenant improvements necessary to adapt the space for temporary library operations; and WHEREAS, the lease also includes an option for month-to-month occupancy if additional time is needed; and
WHEREAS, the Carmel Public Library Foundation has agreed to fund costs associated with the temporary library space as part of the Harrison Memorial Library Project, except for City staff time and the City’s share of utilities and trash service, which are included in the FY 2026/27 adopted operating budget; and
WHEREAS, the City Council desires to authorize the City Administrator to execute the lease agreement and take the actions necessary to establish Carlson Hall as the temporary library location during the Harrison Memorial Library Restoration Project.

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

Resolution 2026-050 ATTACHMENT 1

Authorize the City Administrator to execute an agreement with the Church of the Wayfarer to lease a portion of Carlson Hall for use as a temporary library location during the Harrison Memorial Library Restoration Project.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BYTHE-SEA this 6th day of July, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

_________________________ _________________________
Dale Byrne, Mayor Nova Romero, MMC, City Clerk

4937-1207-1069 v1

LEASE AGREEMENT

BY AND BETWEEN

THE CHURCH OF THE WAYFARER,
a California non-profit religious corporation

AS LANDLORD
and

CITY OF CARMEL-BY-THE-SEA,
a California municipal corporation

AS TENANT
ATTACHMENT 2

TABLE OF CONTENTS

1. DEMISE ............................................................................................................................................ 3

2. PREMISES . ....................................................................................................................................... 3

2.1 Premises .............................................................................................................. 3

2.2 Common Areas .................................................................................................... 3

2.3 Condition of Premises .......................................................................................... 3

3. TERM ............................................................................................................................................... 4

3.1 Term .................................................................................................................... 4

3.2 Delay and Delivery ............................................................................................... 4

3.3 Extension Period .................................................................................................. 4

3.4 Early Possession ................................................................................................. 4

4. RENT ................................................................................................................................................ 5

4.1 Base Rent ............................................................................................................ 5

4.2 Additional Rent .................................................................................................... 5

5. USE; HOURS OF ACCESS; COMPLIANCE WITH LAWS . ................................................................. 5

5.1 Use ...................................................................................................................... 5

5.2 Hours of Access ................................................................................................... 5

5.3 Compliance with Laws ......................................................................................... 5

6. TAXES .............................................................................................................................................. 5

6.1 Taxes ................................................................................................................... 5

6.2 Payment .............................................................................................................. 6

7. AL TERA TIO NS ................................................................................................................................. 6

7.1 Landlord Consent Required ................................................................................. 6

7.2 Alterations ............................................................................................................ 6

7.3 Liens .............................................. -............ -.......................................................... 6

8. MAINTENANCE AND REPAIR OF PREMISES ................................................................................... 6

8.1 Maintenance and Repair by Tenant ..................................................................... 6

8.2 Maintenance and Repair by Landlord ................................................................... 7

9. HAZARDOUS MATERIALS ............................................................................................................... 7

10. ASSIGNMENT AND SUBLETTING ..................................................................................................... 7

10.1 Landlord Consent Required ................................................................................. 7

10.2 Limitations on Transfer Reasonable ..................................................................... 7 4937-1207-1069 v1
ATTACHMENT 2

TABLE OF CONTENTS
(CONTINUED)

11. INDEMNITY AND WAIVER OF CLAIMS ........................................................................................... 8

11.1 Tenant lndemnification ......................................................................................... 8

11.2 Waiver of Claims .................................................................................................. 8

11.3 Survival/No Impairment.. ...................................................................................... 8

12. INSURANCE ...................................................................................................................................... 8

12.1 Tenant's Insurance .............................................................................................. 8

12.2 Requirements For All Policies .............................................................................. 9

12.3 Certificates of Insurance ...................................................................................... 9

12.4 Landlord's Insurance ............................................................................................ 9

13. DAMAGE OR DESTRUCTION ........................................................................................................... 9

13.1 Definitions ............................................................................................................ 9

13.2 Partial Damage - Insured Loss ........................................................................... 10

13.3 Partial Damage - Uninsured Loss ...................................................................... 10

13.4 Total Destruction ................................................................................................ 10

13.5 Abatement of Rent ............................................................................................. 10

14. CONDEMNATION ........................................................................................................................... 10

15. DEFAULT ....................................................................................................................................... 11

15.1 Events of Default. ............................................................................................... 11

15.2 Remedies .......................................................................................................... 11

15.3 No Waiver .......................................................................................................... 12

15.4 Waiver of Redemption, Reinstatement, or Restoration ....................................... 12

15.5 Remedies Cumulative ........................................................................................ 13

15.6 Landlord's Right to Perform Tenant's Obligations .............................................. 13

15. 7 Severability ........................................................................................................ 13

16. LIMITATION OF LIABILITY .......................................................................................................... 13

17. SURRENDER OF PREMISES ........................................................................................................... 13

18. MORTGAGES ................................................................................................................................. 14

18.1 Subordination to Mortgages ............................................................................... 14

18.2 Mortgage Protection ........................................................................................... 14

19. TENANT'S ESTOPPEL CERTIFICATE ............................................................................................ 14

20. NOTICE .......................................................................................................................................... 15

21. MISCELLANEOUS .......................................................................................................................... 15 4937-1207-1069 v1 ii
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TABLE OF CONTENTS
(CONTINUED)
PAGE

21.1 Governing Law ................................................................................................... 15

21.2 Severability ........................................................................................................ 15

21.3 Attorneys' Fees .................................................................................................. 15

21.4 Force Majeure .................................................................................................... 15

21.5 Signs .................................................................................................................. 15

21.6 Brokers .............................................................................................................. 15

21. 7 Access by Landlord ............................................................................................ 16

21.8 Waiver of Right to Jury Trial ............................................................................... 16 21 . 9 Recordation ....................................................................................................... 16

21.10 Article and Section Titles .................................................................................... 16 21 .11 Quiet Possession ............................................................................................... 16

21.12 Asbestos Notification for Commercial Property Constructed Before 1979 .......... 16

21.13 Lead Warning Statement ................................................................................... 17 21 . 14 OFAC Certification ............................................................................................. 17

21.15 Certified Access Specialist Disclosure ............................................................... 17

21.16 Time of the Essence .......................................................................................... 17

21.17 Entire Agreement ............................................................................................... 17

21.18 Counterparts ...................................................................................................... 18 4937-1207-1069 v1 iii
ATTACHMENT 2

A PREMISES
A-1 COMMON AREAS
8 COMMENCEMENT LETTER
4937-1207-1069 v3

INDEX OF EXHIBITS
iv
ATTACHMENT 2

Lease Date:

Landlord:

Landlord's Address:

Tenant:

Tenant's Address:

Premises:

Building:

Length of Term:

Estimated Commencement
Date:

Estimated Expiration Date:

Month-to-Month Extension:

Base Rent:
4937-1207-1069 v3

LEASE AGREEMENT

BASIC LEASE INFORMATION
Dated as of , 2026 for reference purposes only
The Church of the Wayfarer,
a California non-profit religious corporation
The Church of the Wayfarer
Lincoln Street and 7
th Avenue
Carmel-by-the Sea, CA 93921
Tel:(_)
Attn: Pastor Karla Lundin
Notice Copy to:

Tel:(_)
The City of Carmel-by-the Sea
The City of Carmel-by-the Sea
PO. Box CC
Carmel-by-the-Sea, CA 93921
Approximately 2,000 square feet making up Carlson Hall within the Building
The approximately 14,000 square feet building referred to as The Church of the Wayfarer located in Carmel-by-the Sea
Twenty-four (24) months
September 1, 2026
August 31, 2028 -
See Section 3. 3 of the Lease
Months Monthly Base Rent
1 - 12 $6,250.00
13-24 $6,250.00
1 ATTACHMENT 2

Utilities/Trash: Tenant shall pay Tenant's Share of utilities for the Premises, including electricity, gas and water. Tenant shall also pay Tenant's Share of trash and refuse pick-up costs.

Tenant's Share: Each month, Tenants will pay the difference between the current monthly and the average of the prior 3 years' monthly utility and trash bills.

Security Deposit: $6,250.00
Permitted Use: A temporary library and community space and other ancillary uses permitted by Law
Brokers: None
4937-1207-1069 v3 2
ATTACHMENT 2

LEASE AGREEMENT
THIS LEASE AGREEMENT is made and entered into by and between The Church of the Wayfarer, a California non-profit religious corporation ("Landlord"), and The City of Carmelby-the-Sea, a municipal corporation ("Tenant"). The Basic Lease Information, the Exhibits and this Lease Agreement are and shall be construed as a single instrument and are referred to herein as the "Lease".

1. o·EMISE. In consideration for the rents and all other charges and payments payable by Tenant, and for the agreements, terms and conditions to be performed by Tenant in this Lease, Landlord does hereby lease to Tenant and Tenant does hereby hire and take from Landlord, the Premises upon the agreements, terms and conditions of this Lease for the Term hereinafter stated.

2. PREMISES.

2.1 Premises. The Premises demised by this Lease are as specified in the Basic Lease Information. The Premises are located in the Building and have the address and contain the square footage specified in the Basic Lease Information; provided, however, that any statement of square footage set forth in this Lease is an approximation which Landlord and Tenant agree is reasonable and no economic terms based thereon shall be subject to revision whether or not the actual square footage is more or less.

2.2 Common Areas. In addition to the Premises, Tenant shall have the nonexclusive right, in common with all other parties occupying the Building, to use the areas designated by Landlord as depicted in Exhibit A-3, which shall include access to the trash receptacles through the two (2) doors located on the west side of the Building leading to an alley, and the restrooms on the same floor as the Premises ("Common Areas"). The use of the Common Areas shall be for the non-exclusive use of Tenant and Tenant's employees, staff, officials, agents, suppliers, customers and patrons, in common with Landlord and all other visitors to the Building and such other persons to whom Landlord has previously granted, or may hereinafter grant, rights of usage. Tenant shall not be entitled to use the Common Areas for storage of goods, vehicles, refuse or any other items. Landlord reserves the right to alter, modify, enlarge, diminish, reduce or eliminate the Common Areas from time to time in its sole discretion.

2.3 Condition of Premises; Landlord Work; Tenant Work. Tenant accepts the Premises in its "AS IS" "WITH ALL FAUL TS" condition and configuration without any representations or warranties by Landlord, and subject to all matters of record and all applicable laws, ordinances, rules and regulations, with no obligation of Landlord to make alterations or improvements to the Premises, except for the Landlord Work, as described in Section 2.3(a). (a) Landlord Work. Prior to the Commencement Date, Landlord shall undertake the following: (i) remove and store outside the Premises all contents and property stored in the large storage room located on the east side of Carlson Hall, , and (iii) remove and store outside the Premises the hanging sound system, including the speakers and other related equipment (collectively, "Landlord Work").
(b) Tenant Work. During the Early Access Period (defined below) and prior to and as a condition precedent to the Commencement Date, Tenant shall undertake and complete, and Landlord hereby approves of, the following: (i) relocation of two (2) pianos 4937-1207-1069 v3 3
....:

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located in the Premises, including the piano on the stage in Carlson Hall and the piano on the main floor of Carlson Hall to storage located at outside the Premises; (ii) installation of a water dispenser in the Premises; (iii) cutting a slot in the door of the Premises located on Lincoln Avenue ("Garden Entrance") or installing an exterior receptacle that will serve as a book drop-off location; (iv) installing a lock on the Garden Entrance to Carlson Hall for use by City staff and church leadership; (v) building a partition wall separating the halves of the closet/storage area used by the Tenant and Landlord as shown on Exhibit A (vi) installing a lock to be exclusively used by City and Church staff on the upstairs double door located at the south end of the Building to prevent access to the main part of the church by non-staff users of the Premises; (vii) installing exterior signage on or near the main entrance to Carlson Hall and on or near the Garden Entrance to the Building; (viii) installing directional signage near or about the Building as City deems reasonably necessary; (ix) installing such other security measures benefiting the Premises as deemed reasonably necessary by City; (x) locating an automatic external defibrillator within the Premises; (xi) if Tenant elects to remove the counters in the Premises, replacing the old counters with new counters at the same locations; and (xii) remove two (2) sets of double closet/storage doors currently located within Carlson Hall as shown on Exhibit A and cause all doors that are removed to be stored by Landlord at a location outside of the Premises,. (collectively, "Tenant Work").

3. Term.

3.1 Term. The term of this Lease ("Term") shall be for the period specified in the Basic Lease Information, commencing on the later of (a) the date Tenant completes the Tenant Work, as reasonably determined by Tenant, or (b) the day of final approval of the Lease by the City Council of the City of Carmel-by-the-Sea ("Commencement Date"). This Lease shall terminate at midnight on the last day of the twenty-fourth (24th) full calendar month following the Commencement Date ("Expiration Date"), unless sooner terminated or extended as hereinafter provided. Promptly following the Commencement Date, Landlord and Tenant shall enter into a letter agreement substantially in the form attached hereto as Exhibit B, specifying and confirming the Commencement Date and the Expiration Date.

3.2 Delay and Delivery. If for any reason Landlord has not delivered to Tenant possession of the Premises by the first day of the Early Access Period (defined below), this Lease shall remain in effect and Landlord shall not be liable to Tenant for any loss or damage resulting therefrom; provided that Landlord shall use good faith efforts to deliver the Premises to Tenant as expeditiously as practical.

3.3 Extension Period. If Tenant desires to extend the Term of this Lease, Tenant shall deliver written notice to that effect to Landlord no later than sixty (60) days prior to the Expiration Date and thereafter, the Term shall continue on a month-to-month basis on the same terms and conditions as contained in this Lease until terminated by Tenant on thirty (30) days written notice to Landlord.

3.4 Early Possession. Effective July 1, 2026, Landlord shall permit Tenant to enter and access the Premises prior to the Estimated Commencement Date ("Early Access Period"), in order for Tenant to undertake and complete the Tenant Work. During such Early Access Period, all of the terms and provisions of this Lease shall be in effect as if the Commencement Date had occurred, except that Tenant shall not be required to pay Base Rent during the Early Access Period, and Landlord will be able to utilize the space for events when Tenant Work is not taking place upon reasonable coordination with Tenant. Tenant shall be required to pay Additional Rent during the Early Access Period.
4937-1207-1069 v3 4
ATTACHMENT 2

4. RENT.

4.1 Base Rent. From and after the Commencement Date, Tenant shall pay to Landlord, in advance of the first day of each calendar month, without any setoff or deduction and without further notice or demand, the monthly installments of rent specified in the Basic Lease Information ("Base Rent"). One full installment of Monthly Base Rent shall be due and payable on the date of execution of this Lease by Tenant and shall be applied to the first full calendar month for which Monthly Base Rent is due. If the Commencement Date should be on a date other than the first day of a calendar month, the monthly Base Rent installment paid for any fractional month during the Term shall be prorated based upon a thirty (30) day calendar month.

4.2 Additional Rent. As used in this Lease, the term "Additional Rent" shall mean Tenant's Share of utilities, including electricity, gas and water, and trash and refuse costs and any other sums that are due and payable by Tenant under the terms of this Lease. The term "Rent," as used herein, shall mean all Base Rent and Additional Rent payable hereunder from Tenant to Landlord. Unless otherwise specified herein, all items of Rent other than Base Rent shall be due and payable by Tenant on or before the date that is thirty (30) days after billing by Landlord.

5. USE; HOURS OF ACCESS; COMPLIANCE WITH LAWS.

5.1 Use. The Premises shall be used for the Permitted Use and for no other use.

Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the Premises, the Building or with respect to the suitability or fitness of either for the conduct of Tenant's business or for any other purpose.

5.2 Hours of Access. The Premises will be accessible to the general public for the Permitted Use during the hours established by Tenant consistent with the customary hours of operation for a library and community space ("Library Hours"). Certain of Landlord's staff and board members, as mutually agreed to by Tenant and Landlord only, may access the Premises outside of Library Hours, provided that no other individuals shall be given access to the Premises outside of Library Hours.

5.3 Compliance with Laws. Tenant shall comply with all laws, ordinances, rules, regulations and codes, of all municipal, county, state and federal authorities, including the Americans With Disabilities Act, as amended, (42 U.S.C. Section 1201 et seq. [the "ADA"]) (collectively, "Laws"), pertaining to Tenant's use and occupancy of the Premises and the conduct of its business. Tenant shall not commit, or suffer to be committed, any waste upon the Premises or any public or private nuisance, or otner act or thing wnich disturbs the quiet enjoyment of any other tenant in the Building.

6. TAXES.

6.1 Taxes. "Taxes" shall mean all taxes, assessments, fees, impositions, assessments and charges levied (if at all) upon or with respect to the Building or the Common Areas, any personal property used in the operation of the Building, the Common Areas or Landlord's interest in the Building or the Common Areas whether now or hereafter imposed by any governmental, quasi-governmental or other agency.
4937-1207-1069 v3 5
ATTACHMENT 2

6.2 Payment. Landlord shall pay all Taxes due and owing in connection with the Building, the Common Areas and any property therein, if and to the extent any Taxes are so imposed.

7. ALTERATIONS.

7.1 Landlord Consent Required. Except for the Tenant Work, as described in Section 2(b), Tenant shall not make any alterations, improvements, or additions (each an "Alteration") in or about the Premises or any part thereof without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed.

7.2 Alterations. Any Alterations to the Premises shall be at Tenant's sole cost and expense, and made in compliance with all applicable Laws and all reasonable requirements of Landlord. Any Alteration shall at once become the property of Landlord. Alterations shall be made in a good and workmanlike manner and in a manner that will not disturb other users of the Building, and Tenant shall maintain appropriate liability and builders' risk insurance throughout the construction. Tenant shall indemnify, defend, protect and hold Landlord harmless from and against any and all claims for injury to or death of persons or damage or destruction of property arising out of or relating to the performance of any Alterations by or on behalf of Tenant.

7.3 Liens. Tenant shall pay when due all claims for labor or materials furnished Tenant for use in the Premises. Tenant shall not permit any mechanic liens, stop notices, or any other liens against the Premises, Building, Alterations or any of Tenant's interests under this Lease for any labor or materials furnished to Tenant in connection with work performed on or about the Premises by or at the direction of Tenant. Tenant shall indemnify, hold harmless and defend Landlord from any liens and encumbrances arising out of any work performed or materials furnished by or at the direction of Tenant. In the event that Tenant shall not, within ten (10) days following the imposition of any such lien or stop notice, cause such lien or stop notice to be released of record by payment or posting of a proper bond, Landlord shall have, in addition to all other remedies provided herein or by law, the right, but not the obligation, to cause the same to be released by such means as it may deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and expenses reasonably incurred in connection therewith, including attorneys' fees and costs, shall be payable to Landlord by Tenant on demand.

8. MAINTENANCE AND REPAIR OF PREMISES.

8.1 Maintenance and Repair by Tenant.
(a) Tenant Maintenance. Tenant shall, at its sole cost and expense, maintain the Premises in a neat and clean condition. Tenant's maintenance obligations include:
(i) floor coverings and flooring; (ii) the interior side of demising walls; (iii) Alterations, described in Article 7; (v) restrooms serving the Premises, including cleaning and stocking of supplies; and (v) the hallway leading to the Premises located between Carlson Hall and the 7 th Avenue
entrance on the lower level.
(b) Tenant Repair. Tenant shall, at its own costs and expense, repair or restore any damage or injury to all or any part of the Building caused by Tenant or Tenant's agents, employees, invitees, licensees, visitors or contractors, including but not limited to repairs or replacements necessitated by (i) the construction or installation of improvements to the Premises by or on behalf of Tenant; (ii) the moving of any property into or out of the 4937-1207-1069 v3 6
ATTACHMENT 2

Premises; or (iii) Tenant's use and occupancy of the Premises. If Tenant fails to make such repairs or replacement within fifteen (15) days after notice from Landlord, then Landlord may, at its option, upon prior reasonable notice to Tenant (except in an emergency) make the required repairs and replacements and the costs of such repairs or replacement shall be charged to Tenant and shall become due and payable by Tenant with the monthly installment of Base Rent next due hereunder.

8.2 Maintenance and Repair by Landlord. Landlord shall maintain in good repair (i) all portions of the Building, except those for which Tenant is responsible pursuant to Section

8.1 (b), including, without limitation, structural elements of exterior walls and foundations; and (ii) the Common Areas. Tenant hereby waives any and all rights under and benefits of subsection 1 of Section 1932, and Sections 1941 and 1942 of the California Civil Code or any similar or successor Laws now or hereby in effect. Tenant shall immediately give Landlord written notice of the need for repair of the items for which Landlord is responsible. If Tenant or Tenant's invitees or anyone in the employ or control of Tenant caused any damages necessitating such repair, then Tenant shall pay to Landlord the cost thereof, immediately upon demand therefor. Except as otherwise expressly set forth in this Lease, Tenant waives any right to terminate this Lease or offset or abate Rent by reason of any failure of Landlord to make repairs to the Premises or Building.

9. Hazardous Materials. Except as permitted in this Article 9, Tenant hereby agrees that Tenant and Tenant's officers, employees, staff, representatives, agents, contractors, subcontractors, successors, assigns, subtenants, concessionaires, invitees and any other occupants of the Premises (collectively, "Tenant Parties"), shall not cause or permit any hazardous materials to be used, generated, manufactured, refined, produced, processed, stored or disposed of, on, under or about the Premises or Building or transported to or from the Premises or Building without the express prior written consent of Landlord. The foregoing notwithstanding, Tenant may use ordinary and customary materials reasonably required to be used in the course of the Permitted Use, ordinary office supplies ( copier, toner, liquid paper, glue, etc.) and common household cleaning materials.

10. ASSIGNMENT AND SUBLETTING.

10.1 Landlord Consent Required. Subject to the terms and conditions of this Lease, Tenant shall not voluntarily or by operation of law, (a) mortgage, pledge, hypothecate or encumber this Lease or any interest therein, or (b) assign or transfer this Lease or any interest herein, sublease the Premises or any part thereof or any right or privilege appurtenant thereto, or allow any other person (the employees and invitees of Tenant excepted) to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent shall not be withheld unreasonably, conditioned or delayed, provided that Tenant is not then in Default under this Lease nor is any event then occurring, with the giving of notice or the passage of time, or both, would constitute a Default hereunder.

10.2 Limitations on Transfer Reasonable. Tenant acknowledges and agrees that the restrictions, conditions, and limitations imposed by this Article 10 on Tenant's ability to assign or transfer this Lease or any other interests herein, to sublet the Premises or any part thereof, are, for purposes of California Civil Code Section 1951.4, as amended from time to time, and for all other purposes, reasonable at the time this Lease was entered into and shall be deemed to be reasonable at the time that Tenant seeks to assign or transfer this Lease or any interest herein, to sublet the Premises or any part thereof, or transfer or assign any right or privilege appurtenant to the Premises.
4937-1207-1069 v3 7
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11. INDEMNITY AND WAIVER OF CLAIMS.

11.1 Tenant Indemnification. Tenant shall indemnify, defend and hold Landlord and Landlord Related Parties (defined below) harmless against and from all liabilities, obligations, damages, penalties, claims, actions, costs, charges, judgment and expenses (including reasonable attorneys' fees, costs and disbursements) (collectively referred to as "Losses"}, arising from (a) the use of, or any activity done, permitted or suffered in or about the Premises (b) any activity done, permitted or suffered by Tenant or Tenant's agents, contractors, invitees or licensees in or about the Building, or (c) any act, neglect, fault, willful misconduct of Tenant or Tenant's agents, except to the extent such claims arise out of or relate to the negligence or willful misconduct of Landlord. If any action or proceeding is brought against Landlord by reason of any such claim, upon notice from Landlord, Tenant shall defend the same at Tenant's expense by counsel reasonably satisfactory to Landlord.

11.2 Waiver of Claims. Except in the event of its own negligence or willful misconduct, Landlord shall not be liable to Tenant and Tenant hereby waives all claims against Landlord and its trustees, members, principals, beneficiaries, partners, officers, directors, employees, Mortgagees, contractors and agents ("Landlord Related Parties") for any injury or damage to any person or property occurring or incurred in connection with or in any way relating to the Premises or Building.

11.3 Survival/No Impairment. The obligations of Tenant under this Article 11 shall survive any termination of this Lease. The foregoing indemnity obligations shall not relieve any insurance carrier of its obligations under any policies required to be carried by either party pursuant to this Lease, to the extent that such policies cover the peril or currents that results in the claims that is subject to the foregoing indemnity.

12. INSURANCE.

12.1 Tenant's Insurance.
(a) Liability Insurance. Tenant shall maintain in full force throughout the Term, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than Two Million Dollars ($2,000,000.00) each occurrence for bodily injury and property damage combined, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and product liability if a product is sold from the Premises. Each policy of liability insurance required by this Section shall: (i) contain a cross liability endorsement or separation of insureds clause; (ii) provide that any waiver of subrogation rights or release prior to a loss does not void coverage; (iii) provide that it is primary to and not contributing with, any policy of insurance carried by Landlord covering the same loss; (iv) provide that any failure to comply with the reporting provisions shall not affect coverage provided to Landlord, its partners, property managers and Mortgagees; and (v) name Landlord and such other parties in interest as Landlord may from time to time reasonably designate to Tenant in writing, as additional insureds in an Additional Insured Endorsement. Such additional insureds shall be provided at least the same extent of coverage as is provided to Tenant under such policies. The additional insured endorsement shall be in a form at least as broad as endorsement form number CG 20 11 01 96 promulgated by the Insurance Services Office.
(b) Personal Property Insurance. Tenant shall maintain in full force and effect on all of its personal property, furniture, furnishings, trade fixtures and equipment 4937-1207-1069 v3 8
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from time to time located in, on or upon the Premises ("Tenant's Property"), and any Alterations (as defined in Article 10) in an amount not less than one hundred percent (100%) of their full replacement value from time to time during the Term, providing protection against all perils, included within the standard form of "all-risk" (i.e., "Special Cause of Loss") fire and casualty insurance policy. Landlord shall have no interest in the insurance upon Tenant's Property or Alterations and will sign all documents reasonably necessary in connection with the settlement of any claims or loss by Tenant. Landlord will not carry insurance on Tenant's Property or Alterations.
(c) Worker's Compensation Insurance; Employer's Liability Insurance.

Tenant shall, at Tenant's expense, maintain in full force and effect during the Term of this Lease, worker's compensation insurance with not less than the minimum limits required by law, and employer's liability insurance with a minimum limit of coverage of One Million Dollars ($1,000,000.00).
(d) Automobile Liability. Tenant shall maintain in full force and effect during the Term of this Lease, Commercial Automobile Liability. Such policy shall be in an amount of not less than One Million Dollars ($1,000,000) combined single limit.

12.2 Requirements For All Policies. Each policy of insurance required under Section

12.1 shall: (a) be maintained at Tenant's sole cost and expense, and (b) require at least thirty (30) days' written notice to Landlord prior to any cancellation, nonrenewal or modification of insurance coverage. Tenant shall provide to Landlord, upon request, evidence that the insurance required to be carried by Tenant pursuant to this Section, including any endorsement affecting the additional insured status, is in full force and effect.

12.3 Certificates of Insurance. Upon execution of this Lease by Tenant, and not less than thirty (30) days prior to expiration of any policy thereafter, Tenant shall furnish to Landlord a certificate of insurance reflecting that the insurance required by this Article is in force, accompanied by an endorsement(s) showing the required additional insureds satisfactory to Landlord in substance and form.

12.4 Landlord's Insurance. During the Term, Landlord shall keep in effect property insurance covering the Building in amounts not less than the full insurance replacement value thereof (but not on any of Tenant's property) with customary limits and deductibles, together with such other types of insurance coverage, if any, as Landlord, in Landlord's reasonable discretion, may elect to carry.

13. DAMAGE OR DESTRUCTION.

13.1 Definitions.
(a) "Premises Partial Damage" shall mean damage or destruction to the improvements on the Premises, other than Tenant's property, which can reasonably be repaired. in ninety (90) days or less from the date of the damage or destruction. Landlord shall notify Tenant in writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total and the estimated time for repairing said damage. (b) "Premises Total Destruction" shall mean damage or destruction to the Premises other than Tenant's property, which cannot reasonably be repaired in ninety (90) days or less from the date of the damage or destruction. Landlord shall notify Tenant in 4937-1207-1069 v3 9
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writing within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.
(c) "Insured Loss" shall mean damage or destruction to
improvements on the Premises, other than Tenant's property, which was caused by an event required to be covered by the insurance described in Section 12.4, irrespective of any deductible amounts or coverage limits involved.
( d) "Replacement Cost" shall mean the cost to repair or rebuild the improvements in the Premises at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Laws governing the Premises, and without deduction for depreciation.

13.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, Landlord shall repair such damage (but not Tenant's property) as soon as reasonably possible and this Lease shall continue in full force and effect. However, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, either Landlord or Tenant may terminate this Lease on thirty (30) days written notice to the other. In any event, if any repair is estimated to take longer than ninety (90) days to complete, Tenant may terminate the Lease on thirty (30) days written notice to Landlord.

13.3 Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Tenant (in which event Tenant shall make the repairs at Tenant's expense), Landlord may either: (a) repair such damage as soon as reasonably possible at Landlord's expense, in which event this Lease shall continue in full force and effect, or (b) terminate this Lease by giving thirty (30) days written notice to Tenant within thirty (30) days after receipt by Landlord of knowledge of the occurrence of such damage. In any event, if any repair is estimated to take longer than ninety (90) days to complete, Tenant may terminate the Lease on thirty (30) days written notice to Landlord.

13.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate thirty (30) days following such destruction.

13.5 Abatement of Rent. In the event of damage or destruction for which Tenant is not responsible under this Lease, the Rent payable by Tenant for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Tenant's use of the Premises is impaired, and such abatement shall be Tenant's sole remedy for such impairment of use.

14. CONDEMNATION. If the whole or if any material part of the Premises or Building is taken or condemned for any public or quasi-public use under either state or federal law, by eminent domain or purchase in lieu thereof ("Taking"), and (a) such Taking renders the Premises or Building unsuitable for the purposes for which they were constructed or are being used; or (b) the Premises or Building cannot be repaired, restored or replaced at reasonable expense to an economically profitable unit within ninety (90) days from the date of Taking, then either Landlord or Tenant may, at its option, terminate this Lease as of the date possession vests in the condemning party. The terminating party shall provide written notice of termination to the other party within thirty (30) days after it first receives notice of the Taking. The termination shall be effective as of the effective date of any order granting possession to, or vesting legal title in, the condemning authority. If this Lease is not terminated, Base Rent shall be appropriately adjusted to account for any reduction in the square footage of the Premises. If 4937-1207-1069 v3 10
ATTACHMENT 2

only a part of the Premises is subject to a Taking and this Lease is not terminated, Landlord, with reasonable diligence, will restore the remaining portion of the Premises as nearly as practicable to the condition immediately prior to the Taking. Tenant hereby waives any and all rights it might otherwise have pursuant to Section 1265.130 of the California Code of Civil Procedure, or any similar or successor Laws. Landlord shall be entitled to any and all compensation, damages, income, rent, awards or any interest thereon which may be paid or made in connection with any such Taking, and Tenant shall have no claim against Landlord for the value of any expired term of this Lease or otherwise; provided, however, that Tenant shall be entitled to receive any award separately allocated by the condemning authority to Tenant for Tenant's relocation expenses, the value of Tenant's fixture, equipment and personal property (specifically excluding components of the Premises which under this Lease or by law are or at the expiration of the Term will become the property of Landlord, including, without limitation, fixtures and Alterations), or Tenant's loss of business goodwill, provide that such award does not reduce any award otherwise allocable or payable to Landlord. Notwithstanding the foregoing, if any repair or restoration is estimated to take longer than ninety (90) days to complete, Tenant may terminate the Lease on thirty (30) days written notice to Landlord.

15. DEFAULT.

15.1 Events of Default. The occurrence of any of the following shall constitute a "Default" by Tenant:
(a) Tenant fails to make any payment of Rent when due, if payment in full is not received by Landlord within five (5) days after written notice that it is past due. (b)
the California Civil Code.
(c)
Tenant abandons the Premises as defined in Section 1951.3 of Tenant violates the restrictions on Transfer set forth in Article 10. (d) Tenant ceases doing business as a going concern; makes an assignment for the benefit of creditors; is adjudicated an insolvent, files a petition (or files an answer admitting the material allegations of a petition) seeking relief under any state or federal bankruptcy or other statute, law or regulation affecting creditors' rights; all or substantially all of Tenant's assets are subject to judicial seizure or attachment and are not released within thirty (30) days, or Tenant consents to or acquiesces in the appointment of a trustee, receiver or liquidator for Tenant or for all or any substantial part of Tenant's assets. (e) Tenant fails to perform or comply with any provision of this Lease other than those described in (a) through (e) above, andaoes not fully cure such failure within fifteen (15) days after notice to Tenant or, if such failure cannot be cured within such fifteen (15) day period, Tenant fails within such fifteen (15)-day period to commence, and thereafter diligently proceed with, all actions necessary to cure such failure as soon as reasonably possible but in all events within ninety (90) days of such notice.

15.2 Remedies. Upon the occurrence of any Default under this Lease, whether enumerated in Section 15.1 or not, Landlord shall have the option to pursue any one or more of the following remedies without any notice (except as expressly prescribed herein) or demand whatsoever. Without limiting the generality of the foregoing, Tenant hereby specifically waives notice and demand for payment of Rent or other obligations, and waives any and all other notices or demand requirements imposed by applicable Law:
4937-1207-1069 v3 11
ATTACHMENT 2

(a) Terminate this Lease and Tenant's right to possession of the Premises and recover from Tenant an award of damages equal to the sum of the following:
(b) The Worth at the Time of Award of the unpaid Rent which had been earned at the time of termination;
(c) The Worth at the Time of Award of the amount by which the unpaid Rent which would have been earned after termination until the time of award exceeds the amount of such Rent loss that Tenant affirmatively proves could have been reasonably avoided;
( d) The Worth at the Time of Award of the amount by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that Tenant affirmatively proves could be reasonably avoided discounted to the then present value;
( e) Any other amount necessary to compensate Landlord for all the detriment either proximately caused by Tenant's failure to perform Tenant's obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and (f) All such other amounts in addition to or in lieu of the foregoing as may be permitted from time to time under applicable law.

The "Worth at the Time of Award" of the amounts referred to in parts (i) and (ii) above, shall be computed by allowing interest at the lesser of a per annum rate equal to: (A) the greatest per annum rate of interest permitted from time to time under applicable law, or (B) the Prime Rate plus 5% as determined by Landlord, and as referred to in part (iii) above, shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award plus one percent (1 %).
(g) Employ the remedy described in California Civil Code§ 1951.4 (Landlord may continue this Lease in effect after Tenant's breach and abandonment and recover Rent as it becomes due, if Tenant has the right to sublet or assign, subject only to reasonable limitations); or
(h) Notwithstanding Landlord's exercise of the remedy described in California Civil Code § 1951.4 in respect of an event or events of Default, at such time thereafter as Landlord may elect in writing, to terminate this Lease and Tenant's right to possession of the Premises and recover an award of damages as provided above.

15.3 No Waiver. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord's knowledge of such preceding breach at the time of acceptance of such Rent. No waiver by Landlord of any breach hereof shall be effective unless such waiver is in writing and signed by Landlord.

15.4 Waiver of Redemption, Reinstatement, or Restoration. Tenant hereby waives any and all rights conferred by Section 3275 of the Civil Code of California and by Sections 117 4( c) and 1179 of the Code of Civil Procedure of California and any and all other laws and 4937-1207-1069 v3 12
ATTACHMENT 2

rules of law from time to time in effect during the Lease Term or thereafter providing that Tenant shall have any right to redeem, reinstate or restore this Lease following its termination as a result of Tenant's breach.

15. 5 Remedies Cumulative. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder or now or hereafter existing by agreement, applicable Law or in equity. In addition to other remedies provided in this Lease, Landlord shall be entitled, to the extent permitted by applicable Law, to injunctive relief, or to a decree compelling performance of any of the covenants, agreements, conditions or provisions of this Lease, or to any other remedy allowed to Landlord at law or in equity. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an event of Default shall not be deemed or construed to constitute a waiver of such Default.

15.6 Landlord's Right to Perform Tenant's Obligations. If Tenant is in Default of any of its non-monetary obligations under this Lease, in addition to the other rights and remedies of Landlord provided herein, then Landlord may at Landlord's option, but without any obligation to do so and without further notice to Tenant, perform any such term, provision, covenant or condition or make any such payment and Landlord by reason of doing so shall not be liable or responsible for any loss or damage thereby sustained by Tenant. If Landlord performs any of Tenant's obligations hereunder in accordance with this Section 15.6, the full amount of the costs and expense incurred or the payments so made or the amount of the loss so sustained shall be immediately be owed by Tenant to Landlord, and Tenant shall promptly pay to Landlord upon demand, as Additional Rent, the full amount thereof with interest thereon from the day of payment by Landlord the lower of ten percent (10%) per annum, or the highest rate permitted by applicable law.

15.7 Severability. This Article 15 shall be enforceable to the maximum extent such enforcement is not prohibited by applicable Law, and the unenforceability of any portion thereof shall not thereby render unenforceable any other portion.

16. LIMITATION OF LIABILITY. Notwithstanding anything to the contrary contained in this Lease, the liability of Landlord (and of any successor Landlord) shall be limited to the interest of Landlord in the Building as the same may from time to time be encumbered. Tenant shall look solely to Landlord's interest in the Building for the recovery of any judgment. Neither Landlord nor any Landlord Related Party shall be personally liable for any judgment or deficiency, and in no event shall Landlord or any Landlord Related Party be liable to Tenant for any lost profit, damage to or loss of business or a form of special, indirect or consequential damage. Before filing suit for an alleged default by Landlord, Tenant shall give Landlord and the Mortgagee(s) whom Tenant has been notified hold Mortgages (defined in Article 18), notice and reasonable time to cure the alleged default.

17. SURRENDER OF PREMISES. At the termination of this Lease or Tenant's right of possession, Tenant shall remove Tenant's property, including any furniture, fixtures, equipment or cabling installed by or for the benefit of Tenant from the Premises, except that Tenant shall leave at the Premises any upgrades to the lighting or electrical system made by Tenant.

Further, Tenant shall quit and surrender the Premises to Landlord, broom clean, with a fresh coat of interior paint, with any damage to the flooring repaired and otherwise in good order, condition and repair, ordinary wear and tear and damage which Landlord is obligated to repair hereunder excepted. Landlord shall not be responsible for the value, preservation or safekeeping of Tenant's property. Tenant shall pay Landlord, upon demand, the expenses and 4937-1207-1069 v3 13
ATTACHMENT 2

storage charges incurred. If Tenant fails to remove Tenant's property from the Premises or storage, within thirty (30) days after notice, Landlord may deem all or any part of Tenant's property to be abandoned and, at Landlord's option, title to Tenant's property shall vest in Landlord or Landlord may dispose of Tenant's property in any manner Landlord deems appropriate.

18. MORTGAGES.

18.1 Subordination to Mortgages. Tenant accepts this Lease subject and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other lien(s) now or subsequently arising upon the Premises, or Building and any ground lease(s) or other agreements or covenants running with the land now or subsequently arising upon the Building, and to renewals, modifications, refinancing and extensions thereof ( collectively referred to as a "Mortgage"). The party having the benefit of a Mortgage shall be referred to as a "Mortgagee".

This clause shall be self-operative, but upon request from a Mortgagee, Tenant shall, within ten (10) days written request therefor from Landlord, execute a commercially reasonable subordination agreement in favor of the Mortgagee. Landlord shall use commercially reasonable efforts to obtain for Tenant a non-disturbance provision in any such subordination agreement.

As an alternative, a Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease. Upon request, Tenant, shall attorn to any successor to Landlord's interest in this Lease.

18.2 Mortgage Protection. Tenant shall give to any Mortgagee, in accordance with the notice requirements of this Lease, at the same time as it is given to Landlord, a copy of any notices of default given to Landlord, provided that, prior to such notice, Tenant has been notified in writing (by way of notice of assignment of rent and leases, or otherwise) of the existence and address of such Mortgagee. Tenant further agrees that, if Landlord shall have failed to cure such default within the time provided for in this Lease, then the Mortgagee shall have an additional reasonable period of time within which to cure such default, or if such default cannot be cured without Mortgagee pursuing its remedies against Landlord, then mortgagee shall have such additional time as may be necessary to commence and complete a foreclosure proceeding. If, in connection with obtaining financing for the Project, or a portion thereof, Landlord's lender shall request reasonable modifications to this Lease as a condition to such financing, Tenant shall not unreasonably withhold, delay or defer its consent to such modifications, provided that such modifications do not materially adversely affect Tenant's rights or increase Tenant's obligations under this Lease.

19. TENANT'S ESTOPPEL CERTIFICATE. Within ten ( 10) days after written request therefor, Tenant shall execute and deliver to Landlord, in a form provided by or reasonably satisfactory to Landlord, an estoppal certificate stating, that this Lease is in full force and effect, describing any amendments or modifications thereto, acknowledging that this Lease is subordinate or prior, as the case may be, to any Mortgage and stating any other information Landlord may reasonably request, including the Term, the monthly Base Rent, the date to which Rent has been paid, the amount of any security deposit or prepaid rent, whether either party hereto is in default under the terms of the Lease, and whether Landlord has completed any construction obligations hereunder. Any such estoppal certificate may be relied upon by any person or entity purchasing, acquiring an interest in or extending finance with respect to the Building, or any part thereof. If Tenant fails to provide such certificate within ten (10) days as herein provided, such failure shall at Landlord's election, constitute a Default and Tenant shall be deemed to have given such certificate as above provided without modification and shall be deemed to have 4937-1207-1069 v3 14
ATTACHMENT 2

admitted the accuracy of any information supplied by Landlord to a prospective purchaser or mortgagee or deed of trust holder.

20. NOTICE. All notices shall be in writing and delivered by hand or sent by registered, express, or certified mail, with return receipt requested or with delivery confirmation requested from the U.S. postal service, or sent by overnight or same day courier service at the party's respective Notice Address(es) set forth in the Basic Lease Information ("Notice Address").

Each notice shall be deemed to have been received on the earlier to occur of actual delivery or the date on which delivery is refused, or, if Tenant has vacated the Premises or any other Notice Address of Tenant without providing a new Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service in the manner described above. Either party may, at any time, change its Notice Address (other than to a post office box address) by giving the other party written notice of the new address.

21. MISCELLANEOUS.

21.1 Governing Law. This Lease shall be interpreted and enforced in accordance with the Laws of the State of California and Landlord and Tenant hereby irrevocably consent to the jurisdiction and proper venue of such state.

21.2 Severability. If any section, term or provision of this Lease is held invalid by a court of competent jurisdiction, all other sections, terms or severable provisions of this Lease shall not be affected thereby, but shall remain in full force and effect.

21.3 Attorneys' Fees. In the event of an action, suit, arbitration or proceeding brought by Landlord or Tenant to enforce any of the other's covenants and agreements in this Lease, the prevailing party shall be entitled to recover from the non-prevailing party any costs, expenses (including out of pocket costs and expenses) and reasonable attorneys' fees incurred in connection with such action, suit or proceeding. Without limiting the generality of the foregoing, if Landlord utilizes the services of an attorney for the purpose of collecting any Rent due and unpaid by Tenant or in connection with any other breach of this Lease by Tenant following a written demand of Landlord to pay such amount or cure such breach, Tenant agrees to pay Landlord reasonable actual attorneys' fees for such services, irrespective of whether any legal action may be commenced or filed by Landlord.

21.4 Force Majeure. Whenever a period of time is prescribed for the taking of an action by Landlord or Tenant (other than the payment of Rent), the period of time for the performance of such action shall be extended by the number of days that the performance is actually delayed due to strikes, acts of God, shortages of labor or materials, war, terrorist acts, pandemics, civil disturbances, extreme weather an-d other causes oeyond the reasonable control of the performing party ("Force Majeure").

21.5 Signs. Tenant shall not place any sign upon the Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed.

Tenant shall maintain any such signs installed on the Premises.

21.6 Brokers. Landlord and Tenant each represents and warrants to the other that neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real estate broker in the negotiating or making of this Lease. Each party agrees to indemnify, defend and hold harmless the other from any claim or claims, and costs and expenses, including attorneys' fees, incurred by the indemnified party in conjunction with any such claim or claims of any other 4937-1207-1069 v3 15
ATTACHMENT 2

broker or brokers to a commission in connection with this Lease as a result of the actions of the indemnifying party.

21. 7 Access by Landlord. Landlord shall be allowed limited access to the Premises during the term of this Lease upon prior written notice to Tenant. Landlord will give Tenant a minimum of twenty-four (24) hours prior notice of its intention to enter the Premises. Subject to the notice requirement described herein, Tenant agrees to allow Landlord and its utility supplier access to the Premises for operation, maintenance, repair and replacement of these utilities systems as may be required. In executing operation, maintenance, repair or replacement of these systems, Landlord agrees to take commercially reasonable steps to minimize interference with the use of the Premises by Tenant.

21.8 Waiver of Right to Jury Trial. Landlord and Tenant waive their respective rights to trial by jury of any contract or tort claim, counterclaim, cross-complaint, or cause of action in any action, proceeding, or hearing brought by either party against the other on any matter arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant, or Tenant's use or occupancy of the Premises, including without limitation any claim of injury or damage or the enforcement of any remedy under any current or future law, statute, regulation, code, or ordinance. Landlord and Tenant agree that this paragraph constitutes a written consent to waiver of trial by jury within the meaning of California Code of Civil Procedure Section 631 (f)(2), and Tenant does hereby authorize and empower Landlord to file this paragraph and/or this Lease, as required, with the clerk or judge of any court of competent jurisdiction as a written consent to waiver of jury trial. If the waiver set forth in this Section 21.8 is determined by any court to be invalid because it was executed prior to the commencement of any action, then Landlord and Tenant each covenant and agree to execute and deliver to the other, within five (5) days of a written request by the other, a waiver of the right to trial by jury similar in terms and scope to the waiver set forth in this Section 21.8 at such time following the commencement of such action as such waiver , if then made, would be valid.

21.9 Recordation. Neither this Lease, nor any memorandum, affidavit nor other writing with respect thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of Tenant without the prior written consent of Landlord, which may be granted or withheld in Landlord's sole and absolute discretion. Any recording thereof in violation of this provision shall make this Lease null and void at Landlord's election.

21.10 Article and Section Titles. The Article and Section titles use herein are not to be considered a substantive part of this Lease, but merely descriptive aids to identify the paragraph to which they referred. Use of the masculine gender includes the feminine and neuter, and vice versa.

21.11 Quiet Possession. Landlord covenants and agrees with Tenant that, upon Tenant's payment of Rent and observing and performing all of the terms, covenants, conditions, provisions and agreements of this Lease on Tenant's part to be observed or performed, Tenant shall have the quiet possession of the Premises throughout the Term.

21.12 Asbestos Notification for Commercial Property Constructed Before 1979. Tenant acknowledges that Landlord has advised Tenant that, because of its age, the Building may contain asbestos-containing materials ("ACMs"). If Tenant undertakes any Alterations as may be permitted by Article 10, Tenant shall, in addition to complying with the requirements of Article 10, undertake the Alterations in a manner that avoids disturbing ACMs present in the Building.

If ACMs are likely to be disturbed in the course of such work, Tenant shall encapsulate or 4937-1207-1069 v3 16
ATTACHMENT 2

remove the ACMs in accordance an approved asbestos-removal plan and otherwise in accordance with all applicable Environmental Laws, including giving all notices required by California Health & Safety Code Sections 25915-25919. 7.

21.13 Lead Warning Statement. Tenant acknowledges that Landlord has advised Tenant that buildings built before 1978 may contain lead-based paints ("LBP"). Lead from paint, paint chips and dust can pose health hazards if not managed properly. Subject to Article 10 of this Lease, Tenant may at its sole cost and expense, have a state certified LBP Inspector complete a LBP inspection and abatement and provide an abatement certification to Landlord.

Landlord has no specific knowledge of the presence of lead-based paint in the Premises.

21.14 OFAC Certification. Tenant represents, warrants and covenants that: (a) Tenant and its principals are not acting, and will not act, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, "Specially Designated and Blocked Person" or other banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and (b) Tenant acknowledges that the breach of this representation, warranty and covenant by Tenant shall be an immediate Default under the Lease.

21.15 Certified Access Specialist Disclosure. Inspection by Certified Access Specialist.

Landlord discloses that the Premises have not undergone inspection by a Certified Access Specialist as referenced in California Civil Code Section 1938 subsection (e) which provides: "A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises." Pursuant to the foregoing Section 1938(e), Tenant acknowledges and agrees that, if Tenant wishes to have the Premises inspected by a CASp: (i) Tenant must notify Landlord on or before the date when Tenant executes this Lease pursuant to the election below; (ii) the inspection will be at Tenant's sole cost and expense; (iii) the inspection must be scheduled through Landlord and in coordination with the Building's property manager; (iv) any repairs or modifications necessary to correct any violation of construction-related accessibility standards that is noted in the CASp report shall be Tenant's responsibility; and (v) Tenant must provide a copy of the CASp report to Landlord on completion. By initialing below, Tenant represents that:

Tenant wishes to have a CASp inspection of the Premises Initials: ------ Tenant hereby waives its right a CASp inspection of the Premises Initials: _____ _

21.16 Time of the Essence. Time is of the essence of this Lease and each and all of its provisions.

21.17 Entire Agreement. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreements or understandings pertaining to any such matter shall be effective for any purpose. No provision 4937-1207-1069 v3 17
ATTACHMENT 2

of this Lease may be amended or added except by an agreement in writing signed by the parties hereto or their respective successors-in-interest.

21.18 Counterparts. This Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute one and the same instrument.

Landlord and Tenant have executed this Lease as of the day and year first above written.

LANDLORD:

The Church of the Wayfarer,
a California non-profit religious corporation
By: ;ilt/ �
Name:�11. l<tLr-!A J:. Lt.A..Ad...�
Its: PA.,.$ fe>c
Date: Jtuu, 2� 2o �
4937-1207-1069 v3 18
TENANT:

The City of Carmel-by-the Sea,
a municipal corporation
By:

Name: ____________ _
City Manager
Date:

By:

Brian Pierik, City Attorney
Date:

ATTACHMENT 2

;',,-circt11��n
1-Desk. \_
' \
I
F1 }
._<::::::;J l '-., /
___ __......Book
Holds Shelf
4937-1207-1069 v3
-EXHIBIT A

PREMISES
Gathering Space
••
•• r
-
-
I l:13, r Chairs (20)
i laptop ! Q Q
l. charging I n n
·•.Crt ' � �
Tenant Space
Exhibit A
Otes:
hole space needs WiFi/Data
sumes WiFi works for all tech - i.e.: no cable needed
irrulation desk needs crty phone (VOiP)
If check area - remove counter and sink
een Area - build partition with vistb1lity to main area erhead ltghts in storage area - no outlets
paces with dotted oval = must have power
ower availlbll on sta teen Area - unknown
ATTACHMENT 2

4937-1207-1069 v3
EXHIBIT A-1

COMMON AREAS
(to be attached)
Exhibit A-1
ATTACHMENT 2

Date: ________ _

EXHIBIT B

COMMENCEMENT LETTER
Re: Lease dated as of ___ , 2026, by and between The Church of the Wayfarer, as Landlord, and The City of Carmel-by-the Sea, as Tenant, for approximately __ rentable square feet referred to as the Carlson Hall, in the Building located at Lincoln Street and 7
th Avenue, Carmel-by-the Sea, CA 93921.

Dear --------
In accordance with the terms and conditions of the above referenced Lease, Tenant accepts possession of the Premises and agrees:

The Commencement Date of the Lease is ___ , 2026. The Expiration Date of the Lease is _____ , 2028.

Please acknowledge your acceptance of possession and agreement to the terms set forth above by signing all 3 counterparts of this Commencement Letter in the space provided and returning 2 fully executed counterparts to my attention.

Sincerely Agreed and Accepted:

Landlord: The Church of the Wayfarer Tenant: The City of Carmel-by-the Sea By: By:

Name: Name:

Title: City Manager
[Exhibit Do not sign]
4937-1207-1069 v3 Exhibit B
ATTACHMENT 2

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

CONSENT AGENDA
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Erin Lewis, Assistant Planner
APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Resolution 2026-051 Authorizing a refund of Preliminary Site Assessment application fees of $1,571.00 to Molly Branch RECOMMENDATION:

Adopt Resolution 2026-051 (Attachment 1) authorizing a refund of Preliminary Site Assessment application fees of $1,571.00 to Molly Branch.

BACKGROUND / SUMMARY:

The applicant, Carl Martin Maxey of Maxey Design Group, submitted a Preliminary Site Assessment ( PSA 26120) application on April 7, 2026 for the alteration of an existing single family residence at the Northwest corner of 7th Avenue & Forest Avenue. The application fees were paid by the property owner, Molly Branch, on April 8, 2026. Upon receipt of the application and payment of fees, staff completed an initial completeness review and determined that a Preliminary Site Assessment was not required based on the scope of the project.

This application for a Preliminary Site Assessment was initially made at the direction of Planning Department staff based on the initial understanding of the project; however, a re-assessment of the project found the did not rise to the level of requiring a Preliminary Site Assessment. Because the application and associated fees were submitted at the direction of staff, staff recommends a full refund of the application fees as outlined in the municipal code. Section 3.32.110 (Refunds) allows a refund of “any tax, interest or penalty has been overpaid or paid more than once, or has been erroneously or illegally collected or received by the City”. CMC Section 3.06.060 (Return of Funds) requires

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

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

PRIOR CITY COUNCIL ACTION:

None.

ATTACHMENTS:

1. Resolution 2026-051

ATTACHMENT - 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2026-051

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

AUTHORIZING A REFUND OF PRELIMINARY SITE ASSESSMENT APPLICATION FEES OF $1,571.00 TO MOLLY BRANCH
WHEREAS, the applicant, Carl Martin Maxey, submitted a Preliminary Site Assessment application on April 7, 2026; and
WHEREAS, the applicant was assessed a permit fee of $1,571 for the review of the application; and
WHEREAS, the property owner, Molly Branch, remitted payment for the assessed fee; and WHEREAS, on May 29, 2026 the Planning Department determined that a Preliminary Site Assessment was erroneously required for this project; and WHEREAS, minimal staff time was utilized in processing and reviewing the application prior to the withdrawal request; and
WHEREAS, the applicant is entitled to a full refund of the permit fee which amounts to $1,571.00; and
WHEREAS, CMC Section 3.06.060 (Return of Funds) requires refunds of $1,000 or more to be approved by the City Council.

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

Authorize a refund of $1,571.00 which is 100% of the permit fee for a Preliminary Site Assessment application to Molly Branch.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA this 6th day of July, 2026 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED: ATTEST:

_________________________ _________________________
Dale Byrne, Mayor Nova Romero, MMC, City Clerk

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

PUBLIC HEARINGS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Acting City Administrator APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Consideration of an Appeal (APP 26134, Diamond) by John and Patricia Dilks, of the Planning Commission’s approval of Design Study and Coastal Development Permit application DS 25206 (Diamond) for non-excluded development (ground disturbance for an 800 square accessory dwelling unit attached to an existing rear terrace, landscaping, drainage improvements and associated site work) and the installation landscaping consistent with the proposed landscaping plan as authorized by the Coastal
Development Permit, located at Scenic Road 5 northwest of 8th Avenue in the Single-Family Residential (R-1) District, Archaeological Significance (AS) Overlay District, Park (P) Overlay District, and Beach and Riparian (BR) Overlay. APN: 010- 312-012-000 - Recommended for a continuance to August 3 2026
RECOMMENDATION:

Staff recommends that the continuation of the Diamond Appeal Hearing (APP 26143) be continued to the Special City Council Meeting on August 3, 2026, at 3:00 p.m to allow sufficient time for staff to present this item at the same meeting as a discussion on a separate ADU Policy, as directed by the full Council.

Recommended Motion: To continue this item to a date certain of August 3, 2026.

BACKGROUND / SUMMARY:

FISCAL IMPACT:

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS:

None

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Jayme Fields, Finance Manager
APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Discussion and Direction Regarding Funding for See Monterey Marketing Services; Consider Adoption of Resolution 2026-052 Amending the FY 2026-2027 Adopted Operating Budget
RECOMMENDATION:

Staff recommends that the City Council discuss and provide direction regarding funding for See Monterey marketing services and, if desired, adopt Resolution 2026-052 amending the FY 2026-2027 Adopted Operating Budget.

BACKGROUND / SUMMARY:

See Monterey is the marketing arm of the Monterey County Tourism Improvement District. This district collects an assessment from hotels and also receives contributions directly from cities in Monterey County.

The City Council removed the annual contribution expense to fund See Monterey from the adopted Fiscal Year 2026-2027 budget ("FY26/27") in their June meeting. Each year prior, the City has budgeted 3% of its Transient Occupancy Tax revenue as a contribution expense to be paid to See Monterey. The FY26/27 budgeted expense was approximately $293,000 before it was removed.

The City Council asked that this item be brought back at its next meeting for it to consider as a budget adjustment. The Council has the option to make a budget adjustment and put some or all of the requested $293,000 back into the FY26/27 budget (see Resolution at Attachment 1). As the City is already budgeting to spend more than it receives in revenue, this increase in expenditures would be a further

reduction of fund balance.

The discussion before the Council is whether to approve a budget adjustment to fund See Monterey and, if so, for how much. See Monterey submitted a detailed proposal for the City Council to consider which outlines the services which would be provided to the City based on a $290,000 contribution (Attachment 2). The attached proposal also includes answers from See Monterey which seek to address questions asked by Council at previous meetings.

FISCAL IMPACT:

The City may choose to fund some or all of the requested expenditure of $292,947, resulting in a decrease to fund balance.

PRIOR CITY COUNCIL ACTION:

Funding was removed from the Fiscal Year 2026-2027 budget at the June 2, 2026 City Council meeting.

ATTACHMENTS:

1. Draft Resolution 2026-052

2. See Monterey Proposal and FAQs

ATTACHMENT 1

CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
RESOLUTION NO. 2026-052

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA APPROVING A BUDGET AMENDMENT TO THE FISCAL YEAR 2026-2027 ADOPTED BUDGET
WHEREAS, the City Council adopted Resolution 2026-035 approving the Fiscal Year 2026-2027 annual operating and capital budget on June 2, 2026; and WHEREAS, the City invests in economic development by funding various organizations; and
WHEREAS, after review of expenditures and discussion of priorities; and WHEREAS, the City requires additional appropriations to increase the budget for the funding of See Monterey by $________; and
WHEREAS, the funding would be offset against fund balance; and WHEREAS, the Carmel Municipal Code Section 3.06.030 requires Council to approve all transfers of appropriations between departments.

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

Approve the budget amendment to the Fiscal Year 2026-2027 Budget to fund expenditures for See Monterey of $__________.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THESEA this 6th day of July 2026 by the following roll call vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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

1 Carmel-by-the-Sea Proposal Outline for FY26/27
June 26, 2026
The following outlines See Monterey's proposal for the City Council's annual 3% investment in destination marketing for the coming fiscal year. The proposal recognizes the Village's dual challenge of managing periods of overcrowding while addressing belowtarget hotel occupancy. These interconnected issues directly affect TOT and sales tax revenues, economic vitality, the visitor experience, and residents' quality of life.

This new proposal is designed to support a healthier, more balanced tourism economy that benefits residents, businesses, and visitors alike.

Investment:
• 3% of projected TOT collections, approximately $290,000.

Deliverables:
• Global destination sales and marketing promotion
• Responsible Travel - continue and expand efforts to promote responsible and respectful visitation in Carmel-by-the-Sea
• Free membership for the 140+ (and growing) Carmel-by-the-Sea businesses • Data, Analytics & Research – financial and industry data that may assist in the Village’s planning and forecasting
• Board Representation
• Event & Air Service Development – collaboration on programs for managed growth of air service and events
Additionally:
• See Monterey proposes to reinvest approximately 1/3 of Carmel’s jurisdiction investment into visitor management analysis to explore challenges and solutions working directly with City staff, CRA, Visit Carmel and other stakeholders ATTACHMENT 2

2 FAQs
To address previously asked questions and discussions from the Council, the following ‘FAQs’ provide helpful information:

How much does See Monterey invest in fly-in markets?
Our sales and marketing programs span the country and the globe. A major strategic imperative from our MCT 2030
Strategic Roadmap is to attract more fly-in visitors who spend 2-3x that of drive-in visitors – and they don’t bring their cars. In addition to our Leisure and Sales programs, we have specific International and Luxury travel programs that are primarily focused on fly-in guests. Overall, See Monterey spends more than 80% of its budget to attract fly-in visitors.

How does See Monterey invest in air service development? Launching a new nonstop route like Chicago requires a coordinated community investment. See Monterey partnered with the Monterey Bay Aquarium, Visit Carmel and MRY on a $400,000+ pre-launch campaign to help ensure a successful start. Once service begins, See Monterey continues year-round marketing in Chicago and all other nonstop air markets to sustain demand.

Is it working?
The strategy is working – fly-in visitation has grown from 14.4% in 2016 to more than 20% in 2024. Airlines have responded by upgrading routes from Denver, Los Angeles and Dallas to larger mainline aircraft, adding more than 3,000 seats per week this summer. The inverse is a benefit to residents who have more options. Airlines make these investments because they see growing demand—and See Monterey has helped create it.

Can visitor behavior change?
Visitor behavior can be influenced. Through consistent education, comprehensive visitor management, and positive reinforcement, destinations can reduce undesirable behaviors, improve the visitor experience, and help grow overnight occupancy. There are many successful examples, and See Monterey is eager to work with the City Council and community stakeholders to achieve similar results.

History of See Monterey market
investment:
• 2013: ~50% Fly / 50% Drive
• 2019: ~60% Fly / 40% Drive
• 2026: ~80+% Fly / 20% Drive
ATTACHMENT 2

CITY OF CARMEL-BY-THE-SEA
City Council
Staff Report
July 6, 2026

ORDERS OF BUSINESS
TO: Honorable Mayor and City Council Members
SUBMITTED BY: Brandon Swanson, Acting City Administrator APPROVED BY: Brandon Swanson, Acting City Administrator SUBJECT: Receive a presentation on the updated Council Strategic Priorities list following the January 22nd workshop, and provide direction to staff
RECOMMENDATION:

Receive a presentation on the updated Council Strategic Priorities list following the January 22nd workshop and provide direction to staff on priorities for the calendar year, 2026.

BACKGROUND / SUMMARY:

On January 22, 2026, the City Council held their annual workshop to review their list of strategic priority projects. This list is intended to provide the City Administrator with guidance on projects that should be completed or see meaningful progress made in the calendar year. The format of the meeting allows feedback from the public during the entire workshop. Throughout the meeting, Councilmembers provided direction about adding and removing projects, and feedback on the level of priority for a handful of projects (level 1, 2 or 3). The results of the January workshop have been marked up on the attached Strategic Priorities Spreadsheet so that the changes can be tracked (Attachment 1). In summary, the following actions were taken:
• 16 priority projects added
• 1 priority project canceled
• 6 priority projects marked as “Complete” and removed from the list • 5 titles modified to better represent Council’s objectives

At their February 3rd meeting, Council was presented with a marked-up list which captured their direction from that January workshop and asked to finalize the list, item by item. Due to a full agenda, Council was not able to make it through the entire list, and directed staff to return at an upcoming meeting to complete the task.

Following this February 3rd continuance, this item was placed on multiple Council agendas in an effort to complete the task at hand of finalizing the list. Unfortunately, due to the length of those subsequent meetings, it has been continued each time.

What is Council Being Asked to do?
Originally, Council's July meeting was intended to provide a mid-year update on the priorities list. However, due to the list being incomplete, this meeting will be focused on completing the list rather than a mid-year update.

Council has been presented with a marked-up list which shows where decisions were made at the February 3rd meeting, and where direction is still needed. Council will begin at section "S-4 Preserve the Village Charachter".As a reminder, Council is being asked to review the remaining items on this list, and be prepared to:

1. Clarify any changes which were not accurately captured by staff

2. Assign a “priority level” to every project on the list – Level 1, 2 or 3. Level 1 being the highest.

3. Move some items from the active list to “Future Projects” to create a manageable list for 2026.
a. NOTE: The City Administrator’s recommendation is that the current list is too long for every item to be completed or see meaningful progress in 2026.

Council has also been provided with a “clean” version of the list which incorporates all the draft changes noted in the markup version (Attachment 2). This clean version is only being offered as a convenience for Council as a worksheet to prepare notes for the February 3rd meeting. It is not meant to imply that the draft changes are finalized.

Some Notes about the Priorities List
To assist in reviewing, here are a few notes about the list:
• There is a key at the top of the list showing how the colors relate to changes:
o Green = new item
o Pink = complete item
o Yellow = modified title
o Red = canceled project
• For any item which the Council provided a “priority level” at the workshop, that number has been added in BOLD. The rest of the priorities are left blank for Council to fill in.

• Items elevated from the “future projects” list include a note showing which section they moved to.

Capacity Discussion
The ability to complete projects on the priorities list is directly related to the City’s capacity. In this sense, “capacity” means both staff time and budgeted funds. With that in mind, Council is asked to consider other core City tasks while deliberating on whether to keep items on the active priority list or place them on the “Future Project” list. Examples of core city tasks that already take capacity include things like:
processing development permits, preparing recuring reports for state and other regulatory agencies, ongoing infrastructure and facility maintenance, routine forest management, daily finance and accounts payable work, IT troubleshooting and network management, implementing adopted City Plans, providing staff support to various City Boards and Commissions, and execution of the City’s approved Capital Improvement Program (CIP).

In an effort to help begin the conversation, Council has been provided with a sample rebalanced list prepared by the City Administrator. This sample shows some projects moved to the “Future Projects” list and levels of priority for those not assigned by Council at the recent workshop (Attachment 3). This sample list is in no way meant to change or limit Council’s ability to decide what projects stay on the active priority list and the Council’s level of priority. This list of priorities belongs to Council, and the City Administrator will work to fulfill all the goals of the list that Council assigns.

Next Steps
Following direction from Council, the priorities list will be finalized accordingly. From there, the list will become one of the regular reports attached to each regular City Council agenda for the rest of the year. This will allow the list to be pulled at any meeting by Council, staff, or the public to discuss an item on the list. In addition, staff will plan to return to Council with formal updates in September, and December of this year.

FISCAL IMPACT:

Time associated with preparation of the priorities list is included in the FY25/26 Fiscal Year operating budget. Projects on the list will all have their own associated costs, which will be included in agenda reports for any future Council actions on those items.

PRIOR CITY COUNCIL ACTION:

ATTACHMENTS:

1. 2-3-2026 MARKUPS Council Priority Tracker 01.22.26

2. CLEAN Council Priortiy Tracker 01.22.26

3. SAMPLE Council Priortiy Tracker 01.22.26

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
Item is complete, and will be removed from the list
Item was added by Council at Strategic Priorities Meeting Item name has been changed based on Council feedback (changes struck and underlined) Item is not complete, and was removed by Council from the list S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance 3 July 2026 G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 2 Mar 2026 P-1.2 Financial Health
G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance future TBD G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance 1 Jan 2027 G-1.2.4 Develop menu of potential funding sources to close City's funding shortfalls 1 May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking as a management tool Admin/PD 2 June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW 1 Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW 2 Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW 1 June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW 1 June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW 1 - ongoing Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW ongoing Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council), and Certify LCP amendment for updated Carmel Fores PW 2 Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e,g,: allowed materials, building code, etc.), and Create a CPB/PW 2 Ongoing G-2.2.4 Complete all tasks on the arpproved list of prioritized fuel mitigation projects CPB/PW 1 Ongoing G-2.2.6 Execute a citywide evacuation drill PD 1 May 2026 S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
G-3.1.1 Ambulance mutual aid contract Admin 1 3/1/2026
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-3.1.1 Implement a Street Address Program Admin 1 May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW 2 TBD G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW 3 TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings and develop maintenance plan PW 2 Dec 2027 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW future April 2026 G-3.2.3 Have Council receive a presentation from the Friends of MTNP for a Rio Park project Admin/PW 2 TBD P-3.3 City Building (Police/PW)
G-3.3.2 Select architect PW/PD 1 March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin 1 July 2027 P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT 1 May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT 1 July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW 2 Ongoing G-3.5.3 Significantly increase parking enforcement capabilities PD 1 June 2026 S-4 Preserve the Village Character - Start here on 3-24-2026 P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB Mar 2027 G-4.1.3 Reinstate the Design Review Board (DRB) CPB TBD G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB April 2027 P-4.2 Housing Policy and Community Sustainability Attract New Full Time Residents G-4.2.1 Adopt ADU ordinance (City Council) CPB Dec 2026 G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT Dec 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Dec 2026 P-5.2 Public Access to Records
G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Ongoing P-5.3 "Smart Village" Plan DELETED
G-5.3.1 Expand free public Wi-Fi network to cover all parks and key public areas Admin/IT DELETED S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW TBD G-C-1.1.3 Energy Efficiency Audits PW TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW TBD G-C-1.2.2 Residential Home Energy Renovations. PW TBD
G-C-1.2.3 Residential Home Energy Renovation Incentives. PW TBD G-C-1.2.4 Commercial Energy Renovations. PW TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW TBD G-C-3.1.1 Incentivize Clean Energy Installations PW TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW TBD G-C-4.1.2 Exceed Water Efficiency Standards PW TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW TBD G-C-6.2.1 Allow Cool Roof Options PW TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW TBD G-D-1.1.2 Update Emergency Preparedness. PW TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-D-1.1.3 Collaborate with Monterey Fire. PW TBD
G-D-1.1.4 Publicize Local Evacuation Routes. PW TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW TBD
G-D-1.2.1 Establish a Resilience Hub. PW TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW TBD G-D-1.2.3 Engage the Community. PW TBD
G-D-1.2.4 Social Support Network. PW TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW TBD G-D-1.3.1 Partner with Monterey County Health Department. PW TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW TBD G-D-1.3.6 Promote Funding Opportunities. PW TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW TBD G-D-2.1.2 Increase Urban Forest Resilience. PW TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW TBD G-D-2.1.6 Beach Sand Monitoring Program. PW TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW TBD G-D-3.1.2 Increase Green Infrastructure. PW TBD
G-D-3.1.3 Public Building Electrification. PW TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW TBD G-D-3.1.7 Water Conservation. PW TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW TBD
G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-D-3.1.10 Wastewater Treatment. PW TBD
G-D-3.2.1 Development Standards. PW TBD
G-D-3.2.2 Update City Planning Guidelines. PW TBD
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW TBD G-D-3.2.4 Update Shoreline Management Plan. PW TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Dec-31

1.1.B Development on Small Sites CPB Jun-28

1.1.C Live/Work Housing CPB Jun-26

1.1.D Mixed-Income Incentive Program CPB Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Multiple

1.1.F Hotel-to-Residential Conversion CPB Jun-27

1.1.G Hotel Employee Housing Program CPB Jun-27

1.1.H Accessory Dwelling Units CPB Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB DONE

1.2.B Address Infrastructure Constraints CPB Dec-31

1.3.A Condominium Conversions CPB Dec-31

1.3.B Employee Housing (Farmworker) CPB Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB Dec-26

1.3.E Emergency Shelters CPB Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Jun-28

1.4.B Objective Design and Development Standards CPB Jun-27

1.4.C By-Right Approval CPB Dec-31

2.1.A Incentives for Mixed-Use Development CPB Jun-28

2.1.B Permanent Housing CPB Dec-31

2.1.C Monitor Affordable Housing Stock CPB Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Dec-26

2.2.A Historic Preservation Educational Programs CPB Dec-31

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion

2.4.A Housing Rehabilitation and Maintenance Information CPB Dec-31

3.1.A Mixed-Use Affordable Housing CPB Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Dec-31

3.1.C Density Bonus CPB Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Jul-26

3.1.E Reduced Parking Requirements CPB Jun-26

3.1.F Expedited Processing Procedures CPB Dec-26

3.1.G Establish Minimum Densities CPB Jun-28

3.2.A Reasonable Accommodation Procedures CPB DONE

3.2.B Housing Mobility CPB Multiple

3.2.C Family Friendly Housing CPB Jun-28

3.2.D Local Universal Design Standards CPB Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Jun-26

3.3.B Low-Barrier Navigation Centers CPB Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Jun-26

4.1.A Water Conservation CPB Dec-31

4.1.B Energy Conservation and Green Building CPB Dec-31

5.1.A Fair Housing Services CPB Dec-31

5.1.B Housing Choice Voucher Program CPB Dec-31

5.1.C Shared Housing Information CPB Dec-31

5.1.D Farmworker Housing CPB Dec-31

5.2.A Support Community Organizations CPB Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB TBD G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested parties PW/CPB TBD G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-1.5 Conduct outreach specific to vulnerable communities PW/CPB TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB TBD G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB TBD G-4.8 Consider the use of cultural burning PW/CPB TBD
G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library TBD G-1.3.4 Develop an accommodation policy Admin/Library TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library TBD G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library TBD G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library TBD G-1.4.5 Encourage community advocacy for the library Admin/Library TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library TBD G-2.3.1 Restore Saturday hours Admin/Library TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 (MOVED UP TO PRIORITY G-1.2.5) Transient Occupancy Tax (TOT) Increase Admin TBD F-2 Explore Opportunities for Flanders Mansion Admin TBD F-3 Explore Opportunities for Permanent Outdoor Dining/Downtown Master Plan CPB DELETED F-4 Outdoor Wine Tasting Ordinance CPB DELETED
F-5 (MOVED UP TO PRIORITY G-3.3.2) Explore Opportunities for Scout House Admin TBD F-6 (MOVED UP TO PRIORITY G-3.3.2) Carmel Area Wastewater District (CAWD) Bridge to Everywhere Project CPB TBD F-7 Undergrounding Power Lines separate from Rule 20A PW TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department Priority Level Target Goal Completion
F-8 Build city-owned conduit system for data (currently Comcast owned) Admin/IT TBD F-9 Implement a parking and traffic management program Admin/CPB TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 10 ATTACHMENT 1

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
Key to the Strategic Priorities List:

S: These are Council STRATEGIC areas, which are high-level and long term visions for the City P: These are Council PRIORITY areas, which focus on more specific objectives within one of the long term strategic visions G: These are Council GOALS, which are the measurable outcomes or tasks that will be completed within each priority area S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance 3 Y July 2026 G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 1 Y Mar 2026 P-1.2 Financial Health
G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance Y TBD G-1.2.2 Complete internal review (checklist) of City readiness to take on bonds or other financing Admin/Finance Y TBD G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance Y Jan 2027 G-1.2.4 Develop menu of potential revenue sources to close City's funding shortfalls 1 Y May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Y Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking Admin/PD 2 Y June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW N Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW N Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW N June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW N June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW N Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW 2 N Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council) PW Y Sept 2026 G-2.2.2 Certify LCP amendment for updated Carmel Forest Management Plan (Coastal Commission) PW N Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e.g.,: allowed materials, building code, etc.) CPB/PW N Ongoing G-2.2.4 Complete all tasks on the list of prioritized fuel mitigation projects CPB/PW 1 N Ongoing G-2.2.5 Create and distribute home hardening rules to the community CPB/PW 2 Y Aug 2026 G-2.2.6 Execute a citywide evacuation drill PD 1 N May 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
G-3.1.1 Implement a Street Address Program Admin N May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW N TBD G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW N TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings, determine values and develop maintenance plan PW Y Sept 2026 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW 2 Y April 2026 G-3.2.3 Provide Council with a draft agreement between the City and the Friends of MTNP for a Rio Park project Admin/PW 3 N TBD P-3.3 City Building (Police/PW)
G-3.3.1 City Council decision on rebuild vs. renovate PW/PD Y DONE G-3.3.2 Select architect PW/PD Y March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin N July 2027 G-3.3.4 Construction begins PW Y TBD
G-3.3.5 Employees fully move back into building PW/PD Y TBD P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT Y May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT Y July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW Y Ongoing G-3.5.2 Complete modeling work of street condition to optimize use of CIP funds for maintenance and replacement PW Y April 2026 G-3.5.3 Significantly increase parking enforcement capabilities PD Y June 2026 S-4 Preserve the Village Character
P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB Y Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB N Mar 2027 G-4.1.3 Reinstate the Design Review Board (DRB) CPB Y TBD G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB Y April 2027 P-4.2 Housing Policy and Community Sustainability
G-4.2.1 Adopt ADU ordinance (City Council) CPB Y Dec 2026 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB N Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB N April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB N June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 Y TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Y Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT Y Dec 2026 G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT Y Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Y Dec 2026 P-5.2 Public Access to Records
G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Y Ongoing S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW Y TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW N TBD G-C-1.1.3 Energy Efficiency Audits PW N TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-C-1.2.2 Residential Home Energy Renovations. PW Y TBD G-C-1.2.3 Residential Home Energy Renovation Incentives. PW N TBD G-C-1.2.4 Commercial Energy Renovations. PW Y TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW N TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW Y TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW Y TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW N TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW Y TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW N TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW Y TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW N TBD G-C-3.1.1 Incentivize Clean Energy Installations PW Y TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW N TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW Y TBD G-C-4.1.2 Exceed Water Efficiency Standards PW Y TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW N TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW Y TBD G-C-6.2.1 Allow Cool Roof Options PW Y TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW N TBD G-D-1.1.2 Update Emergency Preparedness. PW Y TBD
G-D-1.1.3 Collaborate with Monterey Fire. PW N TBD
G-D-1.1.4 Publicize Local Evacuation Routes. PW N TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW Y TBD
G-D-1.2.1 Establish a Resilience Hub. PW N TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW N TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-1.2.3 Engage the Community. PW Y TBD
G-D-1.2.4 Social Support Network. PW N TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW Y TBD G-D-1.3.1 Partner with Monterey County Health Department. PW N TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW Y TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW Y TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW Y TBD G-D-1.3.6 Promote Funding Opportunities. PW N TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW N TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW N TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW N TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW Y TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW Y TBD G-D-2.1.2 Increase Urban Forest Resilience. PW Y TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW N TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW N TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW N TBD G-D-2.1.6 Beach Sand Monitoring Program. PW Y TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW N TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW N TBD G-D-3.1.2 Increase Green Infrastructure. PW N TBD
G-D-3.1.3 Public Building Electrification. PW Y TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW N TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW Y TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW Y TBD G-D-3.1.7 Water Conservation. PW N TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW Y TBD G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW Y TBD G-D-3.1.10 Wastewater Treatment. PW N TBD
G-D-3.2.1 Development Standards. PW Y TBD
G-D-3.2.2 Update City Planning Guidelines. PW Y TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW Y TBD G-D-3.2.4 Update Shoreline Management Plan. PW N TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW N TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Y Dec-31

1.1.B Development on Small Sites CPB Y Jun-28

1.1.C Live/Work Housing CPB Y Jun-26

1.1.D Mixed-Income Incentive Program CPB Y Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Y Multiple

1.1.F Hotel-to-Residential Conversion CPB Y Jun-27

1.1.G Hotel Employee Housing Program CPB Y Jun-27

1.1.H Accessory Dwelling Units CPB Y Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB N DONE

1.2.B Address Infrastructure Constraints CPB Y Dec-31

1.3.A Condominium Conversions CPB Y Dec-31

1.3.B Employee Housing (Farmworker) CPB Y Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Y Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB N Dec-26

1.3.E Emergency Shelters CPB Y Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Y Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Y Jun-28

1.4.B Objective Design and Development Standards CPB Y Jun-27

1.4.C By-Right Approval CPB Y Dec-31

2.1.A Incentives for Mixed-Use Development CPB Y Jun-28

2.1.B Permanent Housing CPB Y Dec-31

2.1.C Monitor Affordable Housing Stock CPB Y Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Y Dec-26

2.2.A Historic Preservation Educational Programs CPB Y Dec-31

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Y Dec-31

2.4.A Housing Rehabilitation and Maintenance Information CPB Y Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion

3.1.A Mixed-Use Affordable Housing CPB Y Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Y Dec-31

3.1.C Density Bonus CPB Y Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Y Jul-26

3.1.E Reduced Parking Requirements CPB Y Jun-26

3.1.F Expedited Processing Procedures CPB Y Dec-26

3.1.G Establish Minimum Densities CPB Y Jun-28

3.2.A Reasonable Accommodation Procedures CPB Y DONE

3.2.B Housing Mobility CPB Y Multiple

3.2.C Family Friendly Housing CPB Y Jun-28

3.2.D Local Universal Design Standards CPB Y Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Y Jun-26

3.3.B Low-Barrier Navigation Centers CPB Y Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Y Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Y Jun-26

4.1.A Water Conservation CPB N Dec-31

4.1.B Energy Conservation and Green Building CPB N Dec-31

5.1.A Fair Housing Services CPB Y Dec-31

5.1.B Housing Choice Voucher Program CPB N Dec-31

5.1.C Shared Housing Information CPB Y Dec-31

5.1.D Farmworker Housing CPB Y Dec-31

5.2.A Support Community Organizations CPB Y Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW Y TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB Y TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB Y TBD G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested partie PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB Y TBD G-1.5 Conduct outreach specific to vulnerable communities PW/CPB Y TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB N TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB N TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB Y TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB Y TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB Y TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB N TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB N TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB N TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB Y TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB N TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB Y TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB N TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB N TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB Y TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB Y TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB Y TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB Y TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB Y TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB Y TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB Y TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB Y TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB Y TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB N TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB Y TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB Y TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB Y TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB Y TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB Y TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB Y TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB Y TBD G-4.8 Consider the use of cultural burning PW/CPB Y TBD G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB Y TBD G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB N TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB Y TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB Y TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB Y TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB Y TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB Y TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB Y TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB N TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB Y TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB Y TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB Y TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT N TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library Y TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library N TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library Y TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library Y TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library Y TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library Y TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library Y TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library Y TBD G-1.3.4 Develop an accommodation policy Admin/Library Y TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library Y TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library Y TBD G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library Y TBD G-1.4.5 Encourage community advocacy for the library Admin/Library N TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library Y TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library Y TBD G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library Y TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library Y TBD G-2.3.1 Restore Saturday hours Admin/Library Y TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library Y TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library Y TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library N TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library N TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library Y TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library Y TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library Y TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library Y TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library Y TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library Y TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library Y TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library Y TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library Y TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library Y TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library Y TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library Y TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library Y TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW N TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 Explore Opportunities for Flanders Mansion Admin Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 11 ATTACHMENT 2

City Council Strategic Priorities Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
F-2 Undergrounding Power Lines separate from Rule 20A PW Y TBD F-3 Build city-owned conduit system for data (currently Comcast owned) Admin/IT Y TBD F-4 Implement a parking and traffic management program Admin/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 11 of 11 ATTACHMENT 2

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
Key to the Strategic Priorities List:

S: These are Council STRATEGIC areas, which are high-level and long term visions for the City P: These are Council PRIORITY areas, which focus on more specific objectives within one of the long term strategic visions G: These are Council GOALS, which are the measurable outcomes or tasks that will be completed within each priority area S-1 Exercise Financial Sustainability, Accountability and Transparency P-1.1 Budget Clarity
G-1.1.2 Create an online public facing CIP tracking dashboard Admin/IT 1 Y Mar 2026 P-1.2 Financial Health
G-1.2.3 Implement a new HR, Finance and Payroll management system (ERP) Admin/Finance 2 Y Jan 2027 G-1.2.4 Develop menu of potential revenue sources to close City's funding shortfalls 1 Y May 2026 G-1.2.5 Provide Council a presentation on placing a TOT increase on the Nov 2026 ballot and receive direction Admin/Clerk 1 Y Feb 2026 G-1.2.6 Provide Council with a presentation on options for paid parking Admin/PD 2 Y June 2026 S-2 Steward the Natural Environment
P-2.1 Beach Infrastructure Repairs and Maintenance
G-2.1.1 Rebuild 8th Ave. sand ramp PW 1 N Mar 2027
G-2.1.2 Complete 4th Ave. outfall repair/replacement PW 1 N Sep 2027 G-2.1.3 Rebuild 10th Ave. stairs PW 1 N June 2026
G-2.1.4 Rebuild 12th Ave. stairs PW 1 N June 2026
G-2.1.5 Complete maintenance/repair of bluff revetments PW 1 N Ongoing G-2.1.6 Implementation of coastline related items from Climate Action and Adaptation Plan PW 2 N Ongoing P-2.2 Wildfire Mitigation and Prevention
G-2.2.1 Adopt updated Carmel Forest Management Plan (City Council) PW 1 Y Sept 2026 G-2.2.2 Certify LCP amendment for updated Carmel Forest Management Plan (Coastal Commission) PW 1 N Jan 2027 G-2.2.3 Adopt additional citywide wildfire and prevention measures (e.g.,: allowed materials, building code, etc.) CPB/PW 2 N Ongoing G-2.2.4 Complete all tasks on the list of prioritized fuel mitigation projects CPB/PW 1 N Ongoing G-2.2.5 Create and distribute home hardening rules to the community CPB/PW 2 Y Aug 2026 G-2.2.6 Execute a citywide evacuation drill PD 1 N May 2026 S-3 Maintain Public Safety and Infrastructure
P-3.1 Public Safety
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 1 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-3.1.1 Implement a Street Address Program Admin 1 N May 2026 G-3.1.2 Create a plan to improve the resiliency of the City's power grid and present to City Council Admin/PW 2 N TBD P-3.2 City Buildings and Property (Non-Police/PW)
G-3.2.1 Conduct condition assessment of all City buildings, determine values and develop maintenance plan PW 2 Y Sept 2026 G-3.2.2 Provide presentation to Council on the process required to sell the Scout House and receive direction Admin/PW 2 Y April 2026 G-3.2.3 Provide Council with a draft agreement between the City and the Friends of MTNP for a Rio Park project Admin/PW 3 N TBD P-3.3 City Building (Police/PW)
G-3.3.2 Select architect PW/PD 1 Y March 2026
G-3.3.3 Construction Plans and financing approved by City Council PW/Admin 1 N July 2027 G-3.3.4 Construction begins PW 1 Y TBD
G-3.3.5 Employees fully move back into building PW/PD 1 Y TBD P-3.4 Digital Infrastructure
G-3.4.1 Complete an IT audit, including cyber-security Admin/IT 1 Y May 2026 G-3.4.2 Develop and adopt an IT Strategic Plan Admin/IT 2 Y July 2026 P-3.5 Streets and Sidewalks
G-3.5.1 Complete repairs to get current on all sidewalk and ADA improvements PW 2 Y Ongoing G-3.5.3 Significantly increase parking enforcement capabilities PD 1 Y June 2026 S-4 Preserve the Village Character
P-4.1 Design Review
G-4.1.1 Adopt updated Design guidelines and Zoning Code - Design Traditions 1.5 Project (City Council) CPB 1 Y Dec 2026 G-4.1.2 Certify LCP amendment for updated Design Guidelines and Zoning Code (Coastal Commission) CPB 1 N Mar 2027 G-4.1.4 Complete Objective Design and Development Standards for affordable units (ODDS) CPB 1 Y April 2027 P-4.2 Housing Policy and Community Sustainability
G-4.2.1 Adopt ADU ordinance (City Council) CPB 1 Y Dec 2026 G-4.2.2 Certify LCP amendment for ADU Ordinance (Coastal Commission) CPB 1 N Mar 2027 G-4.2.3 Adopt Housing Element amendment to move units from City lots (City Council) CPB 1 N April 2026 G-4.2.4 Certification of Housing Element amendment to move units from City lots (CA State HCD) CPB 1 N June 2026 G-4.2.5 Research policy options in response to accelerating population loss / loss of families with children Admin/CPB 2 Y TBD G-4.2.6 Implement the City's 6th Cycle Housing Element Admin/CPB 1 Y Ongoing S-5 Provide Effective, Reliable, Responsive and Friendly Government Services P-5.1 Process Improvements
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 2 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-5.1.1 Implement new permitting software, with focus on integrating Artificial Intelligence CPB/IT 2 Y Dec 2026 G-5.1.2 Implement technologies to support routine staff tasks and free up time for enhanced customer service CPB/IT 1 Y Ongoing G-5.1.3 Implement a citywide customer service program CPB/IT 1 Y Dec 2026 P-5.2 Public Access to Records
S-6 Implement the City's Adopted Plans
P-6.1 Climate Action (C) and Adaptation (D) Plan
Program # Program Name
G-C-1.1.1 Energy Efficiency Outreach PW Y TBD
G-C-1.1.2 Energy Efficiency and Electrification Incentives PW N TBD G-C-1.1.3 Energy Efficiency Audits PW N TBD
G-C-1.2.1 Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-C-1.2.2 Residential Home Energy Renovations. PW Y TBD G-C-1.2.3 Residential Home Energy Renovation Incentives. PW N TBD G-C-1.2.4 Commercial Energy Renovations. PW Y TBD
G-C-1.2.5 Residential Commercial Energy Renovation Incentives. PW N TBD G-C-1.3.1 Energy Efficiency in New Residential Construction PW Y TBD G-C-1.3.2 Energy Efficiency in New Commercial Construction PW Y TBD G-C-2.1.1 Reduce Reliance on Automobiles. PW N TBD
G-C-2.1.2 Develop Bicycle Master Plan to Create Safe Bike Routes around the City PW Y TBD G-C-2.1.3 Ride-Sharing and Bike to Work Programs within City Operations and Businesses PW N TBD G-C-2.2.1 Prioritize Electric Vehicles (EVs) PW Y TBD
G-C-2.3.1 Develop Origin/Destination Transportation Model. PW N TBD G-C-3.1.1 Incentivize Clean Energy Installations PW Y TBD G-C-3.1.2 Increase uptake of 3CE Renewable Generation portfolio PW N TBD G-C-4.1.1 Continued Implementation and Promotion of City and Model Water Efficient Ordinance Standards PW Y TBD G-C-4.1.2 Exceed Water Efficiency Standards PW Y TBD
G-C-5.1.1 Increase the City’s solid waste diversion to reduce landfill methane emissions PW N TBD G-C-6.1.1 Urban Forest Maintenance and Improvement PW Y TBD G-C-6.2.1 Allow Cool Roof Options PW Y TBD
G-D-1.1.1 Maintain and Update Evacuation Plan Every 8 Years. PW N TBD G-D-1.1.2 Update Emergency Preparedness. PW Y TBD
G-D-1.1.3 Collaborate with Monterey Fire. PW N TBD
S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 3 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-1.1.4 Publicize Local Evacuation Routes. PW N TBD
G-D-1.1.5 Evaluate Evacuation Route Capacity. PW Y TBD
G-D-1.2.1 Establish a Resilience Hub. PW N TBD
G-D-1.2.2 Limit the Impacts of Climate Change on the Most Vulnerable Populations. PW N TBD G-D-1.2.3 Engage the Community. PW Y TBD
G-D-1.2.4 Social Support Network. PW N TBD
G-D-1.2.5 Back-up Power for Vulnerable Populations. PW Y TBD G-D-1.3.1 Partner with Monterey County Health Department. PW N TBD G-D-1.3.2 Initiate a Heat Pump Retrofit Program. PW Y TBD G-D-1.3.3 Invest in Improving Resilience in Critical Facilities. PW Y TBD G-D-1.3.4 Conduct a Feasibility Study for Existing Building Electrification and Back-up Power. PW Y TBD G-D-1.3.5 Improve Resilience in Existing Building Stock. PW Y TBD G-D-1.3.6 Promote Funding Opportunities. PW N TBD
G-D-1.4.1 Develop Partnerships to Provide Support to Displaced Workers. PW N TBD G-D-1.4.2 Establish Partnerships to Develop a Resilient Economy. PW N TBD G-D-1.4.3 Business Resilience Outreach Program. Collaborate PW N TBD G-D-1.4.4 Hire a Grant Writer/Climate Coordinator. PW Y TBD G-D-2.1.1 Increase Funding for Climate Adaptation. PW Y TBD G-D-2.1.2 Increase Urban Forest Resilience. PW Y TBD
G-D-2.1.3 Increase Resilience of the Mission Trail Nature Preserve and Pescadero Canyon. PW N TBD G-D-2.1.4 Increase Resilience of the North Dunes. PW N TBD G-D-2.1.5 Increase Resilience to Stronger Storms. PW N TBD G-D-2.1.6 Beach Sand Monitoring Program. PW Y TBD
G-D-2.1.7 Carmel Cove Sand Supply. PW N TBD
G-D-3.1.1 Underground Utilities in Fire Hazard Zones (Develop Plan). PW N TBD G-D-3.1.2 Increase Green Infrastructure. PW N TBD
G-D-3.1.3 Public Building Electrification. PW Y TBD
G-D-3.1.4 Reduce Stormwater Runoff. PW N TBD
G-D-3.1.5 Storm Drain Repair Funding and Improvements. PW Y TBD G-D-3.1.6 Retrofit Existing Critical Buildings and Related Infrastructure. PW Y TBD G-D-3.1.7 Water Conservation. PW N TBD
G-D-3.1.8 Bluff Structural Monitoring Program. PW Y TBD G-D-3.1.9 Sea Level Rise Coastal Vulnerability Study. PW Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 4 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-D-3.1.10 Wastewater Treatment. PW N TBD
G-D-3.2.1 Development Standards. PW Y TBD
G-D-3.2.2 Update City Planning Guidelines. PW Y TBD
G-D-3.2.3 Incorporate Climate Change Adaptation into Local Plans. PW Y TBD G-D-3.2.4 Update Shoreline Management Plan. PW N TBD
G-D-3.2.5 Multi-Jurisdictional Hazard Mitigation Plan. PW N TBD P-6.2 Housing Element - Cycle 6
Program # Program Name

1.1.A Adequate Sites CPB Y Dec-31

1.1.B Development on Small Sites CPB Y Jun-28

1.1.C Live/Work Housing CPB Y Jun-26

1.1.D Mixed-Income Incentive Program CPB Y Jun-28

1.1.E Affordable Housing on Religious Facility Properties CPB Y Multiple

1.1.F Hotel-to-Residential Conversion CPB Y Jun-27

1.1.G Hotel Employee Housing Program CPB Y Jun-27

1.1.H Accessory Dwelling Units CPB Y Multiple

1.2.A Water Distribution Prioritization for Affordable Housing CPB N DONE

1.2.B Address Infrastructure Constraints CPB Y Dec-31

1.3.A Condominium Conversions CPB Y Dec-31

1.3.B Employee Housing (Farmworker) CPB Y Jun-26

1.3.C Manufactured Homes on a Foundation System CPB Y Jun-26

1.3.D Senate Bill 35 and Senate Bill 423 Processing Procedure CPB N Dec-26

1.3.E Emergency Shelters CPB Y Jun-26

1.3.F Forest and Beach Commission Required Findings CPB Y Jun-26

1.4.A Modify or Eliminate Onerous Use Permits CPB Y Jun-28

1.4.B Objective Design and Development Standards CPB Y Jun-27

1.4.C By-Right Approval CPB Y Dec-31

2.1.A Incentives for Mixed-Use Development CPB Y Jun-28

2.1.B Permanent Housing CPB Y Dec-31

2.1.C Monitor Affordable Housing Stock CPB Y Jun-26

2.1.D Establish Affordable Housing Trust Fund CPB Y Dec-26

2.2.A Historic Preservation Educational Programs CPB Y Dec-31 S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 5 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion

2.3.A Preserve and Increase Upper Floor Residential Uses CPB Y Dec-31

2.4.A Housing Rehabilitation and Maintenance Information CPB Y Dec-31

3.1.A Mixed-Use Affordable Housing CPB Y Jun-28

3.1.B Housing for Extremely Low-Income Households CPB Y Dec-31

3.1.C Density Bonus CPB Y Dec-31

3.1.D Reduced Entitlement and Development Fees CPB Y Jul-26

3.1.E Reduced Parking Requirements CPB Y Jun-26

3.1.F Expedited Processing Procedures CPB Y Dec-26

3.1.G Establish Minimum Densities CPB Y Jun-28

3.2.A Reasonable Accommodation Procedures CPB Y DONE

3.2.B Housing Mobility CPB Y Multiple

3.2.C Family Friendly Housing CPB Y Jun-28

3.2.D Local Universal Design Standards CPB Y Jun-28

3.3.A Zoning for Transitional and Supportive Housing CPB Y Jun-26

3.3.B Low-Barrier Navigation Centers CPB Y Jun-26

3.3.C Unlicensed Residential Care Facilities CPB Y Jun-26

3.3.D Single Room Occupancy (SRO) Units CPB Y Jun-26

4.1.A Water Conservation CPB N Dec-31

4.1.B Energy Conservation and Green Building CPB N Dec-31

5.1.A Fair Housing Services CPB Y Dec-31

5.1.B Housing Choice Voucher Program CPB N Dec-31

5.1.C Shared Housing Information CPB Y Dec-31

5.1.D Farmworker Housing CPB Y Dec-31

5.2.A Support Community Organizations CPB Y Dec-31
P-6.3 Carmel Forest Management Plan
Program # Program Name
G-6.3.1 IN PROCESS PW Y TBD
P-6.4 Community Wildfire Prevention Program (CWPP)
Program # Program Name
G-1.1 Conduct biannual educational seminars to educate residents on wildfire preparedness and mitigation PW/CPB Y TBD G-1.2 Create educational materials depicting proper defensible space guidelines PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 6 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.3 Maintain the project StoryMap as a hub for information sharing amongst community members and interested parties PW/CPB Y TBD G-1.4 Provide resources to for groups to pursue National Fire Protection Association Firewise USA Program PW/CPB Y TBD G-1.5 Conduct outreach specific to vulnerable communities PW/CPB Y TBD G-1.6 Collaborate with Monterey County Fire Safe Council to disseminate educational information PW/CPB N TBD G-1.7 Leverage local groups, such as Carmel CERT, to disseminate information on wildfire risk PW/CPB N TBD G-1.8 Host practice evacuation events throughout the Plan Area on an annual basis PW/CPB Y TBD G-1.9 Conduct public outreach/education where vegetation management projects are proposed prior to work PW/CPB Y TBD G-2.1 Support collaborative vegetation management projects across ownership boundaries PW/CPB Y TBD G-2.2 Collaborate with Pebble Beach Community Services District and CAL FIRE on wildfire mitigation strategies PW/CPB N TBD G-2.3 Consult with local tribes during wildfire mitigation planning PW/CPB N TBD G-2.4 Collaborate with the Monterey County Fire Safe Council to prioritize community wildfire mitigation projects PW/CPB N TBD G-2.5 Work with rec. facilities, campgrounds, and other guest-oriented businesses to develop evacuation preplans PW/CPB Y TBD G-2.6 Coordinate with interested parties (U.S. Forest Service, CAL FIRE, etc.) on information and resource sharing PW/CPB N TBD G-2.7 Update the General Plan Safety Element to address wildfire risk PW/CPB Y TBD G-2.8 Partner with universities and research institutions to support or conduct wildfire-related projects or research PW/CPB N TBD G-2.9 Develop an evacuation plan with the Community Hospital of the Monterey Peninsula PW/CPB N TBD G-3.1 Identify critical infrastructure and facilities in need of structural hardening PW/CPB Y TBD G-3.2 Conduct roadside fuels reduction along major roadways and roads identified as evacuation routes PW/CPB Y TBD G-3.3 Identify and remove hazardous trees along major evacuation corridors PW/CPB Y TBD G-3.4 Revaluate City Tree Ordinances to expedite maintenance or the removal of trees that pose wildfire hazards PW/CPB Y TBD G-3.5 Develop a coordinated evacuation plan for the Plan Area PW/CPB Y TBD G-3.6 Evaluate opportunities for engaging residents and landowners in structural retrofit programs PW/CPB Y TBD G-3.7 Encourage structural retrofits through assessments, community education, and grant funding opportunities PW/CPB Y TBD G-3.8 Install evacuation signage/lighting along designated evacuation routes PW/CPB Y TBD G-3.9 Facilitate emergency vehicle access and evaluate need for road maintenance on private and public roads PW/CPB Y TBD G-3.10 Coordinate with jurisdictions controlling outside roads (CalTrans, etc.) on maintenance agreements PW/CPB N TBD G-3.11 Establish staging areas and shelter-in-place sites PW/CPB Y TBD G-4.1 Implement vegetation treatment activities identified in Appendix C PW/CPB Y TBD G-4.2 Ensure appropriate environmental review is conducted prior to implementing fuels reduction projects PW/CPB Y TBD G-4.3 Consult with a qualified biologist and/or Professional Forester when designing fuels treatment prescriptions PW/CPB Y TBD G-4.4 Promote Monterey pine regeneration through fuels reduction projects PW/CPB Y TBD G-4.5 Develop a French broom removal program and reduce hazardous ladder fuels PW/CPB Y TBD G-4.6 Remove dead and down woody debris annually following winter storms and prior to June 1 of each year PW/CPB Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 7 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-4.7 Conduct annual monitoring of vegetation management project areas and maintain as needed PW/CPB Y TBD G-4.8 Consider the use of cultural burning PW/CPB Y TBD G-4.9 Develop post-fire rehabilitation guidelines in cooperation with appropriate federal, state, and local agencies PW/CPB Y TBD G-5.1 Hold annual meetings with mutual aid partners to discuss emergency response goals and review targets PW/CPB N TBD G-5.2 Prepare annual reports of incidents and responding mutual aid partners PW/CPB Y TBD G-5.3 Identify additional resources needed to adequately respond to wildfires and achieve response target goals PW/CPB Y TBD G-6.1 Evaluate staffing capacity annually and identify needs to ensure capacity for wildfire projects PW/CPB Y TBD G-6.2 Identify and pursue grant funding opportunities for wildfire projects PW/CPB Y TBD G-6.3 Pursue efforts to get on California’s Fire Risk Reduction Communities List to be prioritized for Grant Funding PW/CPB Y TBD G-6.4 Pursue the development of a Home Hardening Grant Program PW/CPB Y TBD G-6.5 Collaborate with the Monterey County Fire Safe Council to obtain grants for wildfire mitigation projects PW/CPB N TBD G-6.6 Increase the number of properties inspected in the Plan Area annually PW/CPB Y TBD G-6.7 Empower community groups, etc. to pursue grant funding for community-scale retrofits PW/CPB Y TBD G-6.8 Evaluate subsidies or incentives for property owners to complete and maintain vegetation management PW/CPB Y TBD P-6.5 IT Strategic Plan
Program # Program Name
G-x.x.x IN PROCESS Admin/IT N TBD
P-6.6 Library Master Plan
Program # Program Name
G-1.1.1 Establish regular weekly hours for tech help Admin/Library Y TBD G-1.1.2 Collaborate with Carmel, Carmel Valley, Big Sur and Pebble Beach schools on programs on a regular basis Admin/Library N TBD G-1.1.3 Continue to learn from and build on established programs and explore new program ideas as they arise Admin/Library Y TBD G-1.2.1 Conduct Community Conversations and produce an updated Public Knowledge Report Admin/Library Y TBD G-1.2.2 Provide a variety of ways for community members to provide feedback Admin/Library Y TBD G-1.3.1 Better serve patrons with dementia and Alzheimer's and their caregivers Admin/Library Y TBD G-1.3.2 Start a conversation with the community workforce to understand their needs and wants Admin/Library Y TBD G-1.3.3 Explore option for books delivery to homebound patrons, including a partnership with Carmel Foundation Admin/Library Y TBD G-1.3.4 Develop an accommodation policy Admin/Library Y TBD G-1.4.1 Re-brand the library so that it is clear who we are, where we are, and what we do Admin/Library Y TBD G-1.4.2 Develop a plan and strategy for marketing and communication of library services Admin/Library Y TBD G-1.4.3 Conduct outreach to community leaders to ensure understanding of the value of the Library Admin/Library Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 8 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
G-1.4.4 Work with local realtors to distribute a welcome packet for new community members Admin/Library Y TBD G-1.4.5 Encourage community advocacy for the library Admin/Library N TBD G-2.1.1 Look for opportunities to renovate both library buildings Admin/Library Y TBD G-2.1.2 Ensure continuity of operations during any renovation projects Admin/Library Y TBD G-2.2.1 Introduce patrons and visitors to the library in the Harrison Library garden with improved signage Admin/Library Y TBD G-2.2.2 Conduct nature-centric programs utilizing the HML garden and other greenspaces in the City Admin/Library Y TBD G-2.3.1 Restore Saturday hours Admin/Library Y TBD
G-2.4.1 Continue to invest in Wonderbook, large print, audio collections, and explore a braille collection Admin/Library Y TBD G-3.1.1 Review, reaffirm, and amend library policies and procedures to ensure transparency and efficiency Admin/Library Y TBD G-3.1.2 Work with Pacific Grove and Monterey libraries to implement book/DVD sharing Admin/Library N TBD G-3.1.3 Work with community organizations to identify projects that could provide opportunities for special funding Admin/Library N TBD G-3.1.4 Better promote purchase suggestions to further engage the community in collection development Admin/Library Y TBD G-3.2.1 Develop staff training plan (1 all-staff training per month) including emergency preparedness Admin/Library Y TBD G-3.2.2 Map the library’s volunteer needs and map the needs of volunteers Admin/Library Y TBD G-4.1.1 Investigate ways to reduce waste in library operations (paper, single-use plastics, etc.) Admin/Library Y TBD G-4.1.2 Look for opportunities to switch to local/sustainable/Certified/etc. companies and vendors when possible Admin/Library Y TBD G-4.1.3 Work with Public Works to identify opportunities to reduce energy consumption in library buildings Admin/Library Y TBD G-4.2.1 Develop Continuity of Operations Plan for the Library Admin/Library Y TBD G-4.2.2 Create a special collections evacuation plan in case of an emergency Admin/Library Y TBD G-4.2.3 Prioritize staff training on disaster recovery topics, such as salvaging water-damaged materials Admin/Library Y TBD G-4.3.1 Regularly host sustainability and resilience related programs that are relevant to Carmel Admin/Library Y TBD G-4.3.2 Provide opportunities for organizations such as CERT, CalFire, Carmel Prepares to share info Admin/Library Y TBD G-4.4.1 Continue to act as a charging/warming center during storms and power outages Admin/Library Y TBD G-x.x.x Explore additional ways we can support our community during emergencies and extreme weather events Admin/Library Y TBD P-6.7 Mission Trails Nature Preserve Master Plan
Program # Program Name
G-x.x.x IN PROCESS PW N TBD
Future Projects - These are projects that are important, but are not actively being worked on by City Staff until directed by Council.

F-1 Explore Opportunities for Flanders Mansion Admin Y TBD F-2 Undergrounding Power Lines separate from Rule 20A PW Y TBD F-3 Build city-owned conduit system for data (currently Comcast owned) Admin/IT Y TBD S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 9 of 10 ATTACHMENT 3

City Council Strategic Priorities - SAMPLE Responsible
Department
Priority
Level
Fully City
Controlled
Target Goal
Completion
F-4 Implement a parking and traffic management program Admin/CPB Y TBD G-1.2.1 Receive Council approval on revised investment portfolio approach Admin/Finance Y TBD G-1.2.2 Complete internal review (checklist) of City readiness to take on bonds or other financing Admin/Finance Y TBD G-1.1.1 Increase usability and clarity of financial reports given to Council Admin/Finance Y July 2026 G-3.1.3 Complete the City's Rule 20-A project at Del Mar Parking Lot PW N TBD G-3.5.2 Complete modeling work of street condition to optimize use of CIP funds for maintenance and replacement PW Y April 2026 G-4.1.3 Reinstate the Design Review Board (DRB) CPB Y TBD G-5.2.1 Scan and digitize all physical city records to make available online (resolutions, ordinances, etc.) Admin/IT Y Ongoing S = Strategy; P = Priority; G = Goal Council Strategic Priorities 01.22.2026 Page 10 of 10 ATTACHMENT 3