AGENDA
CITY OF WATSONVILLE
SPECIAL CITY COUNCIL MEETING
Working with our community to create positive impact through service with heart.
Values: Teamwork, Integrity, Honesty, Service and Respect Eduardo Montesino, Mayor, District 1
Vanessa Quiroz-Carter, Mayor Pro Tempore, District 2
Maria Orozco, Council Member, District 3
Kristal Salcido, Council Member, District 4
Casey K. Clark, Council Member, District 5
Jimmy Dutra, Council Member, District 6
Ari Parker, Council Member, District 7
Rene Mendez, City Manager
Samantha W. Zutler, City Attorney
Irwin I. Ortiz, City Clerk
Location:
City Council Chambers
275 Main Street, Top Floor
Watsonville, CA 95076
Anyone addressing the City Council is asked to fill out a speaker card and leave it at the podium for recording purposes
IF YOU CHALLENGE ANY ACTION APPEARING ON THIS AGENDA IN
COURT, YOU MAY BE LIMITED TO RAISING ONLY THOSE ISSUES YOU OR
SOMEONE ELSE RAISED AT THE PUBLIC MEETING DESCRIBED ON THIS
AGENDA, OR IN WRITTEN CORRESPONDENCE DELIVERED TO THE CITY CLERK PRIOR TO, OR AT, THE PUBLIC MEETING.
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For information regarding this agenda, please call the City Clerk's Office at (831) 768- 3040
AGENDA
CITY OF WATSONVILLE
SPECIAL CITY COUNCIL MEETING
Location:
City Council Chambers
275 Main Street, Top Floor
Watsonville, CA 95076
Tuesday, January 10, 2023, 4:30 p.m.
Pages
FACE COVERINGS HIGHLY RECOMMENDED
1. ROLL CALL
1.a MOTION TO EXCUSE ABSENT COUNCIL MEMBER(S) (If any)
2. PLEDGE OF ALLEGIANCE
3. CONSENT AGENDA
All items appearing on the Consent Agenda are recommended actions which are considered to be routine and will be acted upon as one motion. Any items removed will be considered immediately after the vote on the motion. The Mayor will allow public input prior to the approval of the Consent Agenda.
PUBLIC INPUT (2 MINUTES EACH)
3.a EXECUTION OF AGREEMENTS WITH THE STATE BOARD OF
EQUALIZATION FOR IMPLEMENTATION OF LOCAL TRANSACTIONS & USE TAX (Recommended by Interim Finance Director Duran) 3 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX & FEE
ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL TRANSACTIONS & USE TAX
3.b RATIFYING THE CITY MANAGER’S PROCLAMATION OF THE EXISTENCE
OF A LOCAL EMERGENCY
32 RESOLUTION RATIFYING THE CITY MANAGER’S PROCLAMATION OF
THE EXISTENCE OF A LOCAL EMERGENCY DUE TO SEVERE FLOODING
4. ITEMS REMOVED FROM CONSENT AGENDA
5. EMERGENCY ITEMS ADDED TO AGENDA
6. ADJOURNMENT
This agenda was posted in accordance with the California Brown Act. The agenda packet can be accessed on the City of Watsonville website at https://www.cityofwatsonville.org/2123/City-Council-Agendas-Minutes and available for public inspection in the City Clerk’s Office (275 Main Street, 4th Floor) during normal business hours). Any materials related to an item on this Agenda submitted to the Council after distribution of the agenda packet will be made available to the public in accordance with Government Section 54957.5.
1/6/2023 10:15:19 PM
C:\Program Files\eSCRIBE\TEMP\2215762558\2215762558,,,EXECUTION OF AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF LOCAL TRANSACTION AND USE TAX.docx Agenda Report
MEETING DATE: Tuesday, January 10, 2023
TO: City Council
FROM: INTERIM ADMINISTRATIVE SERVICES DIRECTOR DURAN
THROUGH: CITY MANAGER MENDEZ
SUBJECT: EXECUTION OF AGREEMENTS WITH THE STATE BOARD OF
EQUALIZATION FOR IMPLEMENTATION OF LOCAL
TRANSACTIONS AND USE TAX
RECOMMENDED ACTION:
It is recommended that the City Council of the City of Watsonville approve a resolution authorizing the City Manager to Execute Agreements with the State Board of Equalization for implementation of a Special Local Transactions and Use Tax as approved by the voters in the November 8, 2022 election.
DISCUSSION:
On November 8, 2022; 64.4% of Watsonville voters approved Measure R, enacting a one half of one percent transactions and use tax in the City of Watsonville. The tax will aim to provide locally-controlled funding for Watsonville’s essential general services, including: after-school and anti-gang programs that keep kids safe; creating safe places to play; keeping parks/ Watsonville Slough trails safe and clean; repairing, expanding, improving parks/playgrounds; fixing potholes; maintaining streets; creating jobs; supporting local businesses, libraries, senior meal programs and general government use.
The State Board of Equalization requires the adoption of a resolution authorizing the City Manager to execute the necessary agreements with the State to set up and manage the tax.
Pursuant to Revenue and Taxation code section 7265, the new tax is scheduled to become operative on April 1, 2023 while revenue will begin flowing to the City in June of 2023. It is estimated the tax will bring additional $5.2 million on an annual basis; however, the first year will only bring 25% of that amount due to the effective date of the tax mentioned above. In order to implement the measure approved by Watsonville voters, the City must enter into two agreements with the State Board of Equalization for the following purposes:
Accordingly, staff is requesting the City Council approve a resolution authorizing the City Manager to execute these agreements with the State Board of Equalization.
1/6/2023 10:15:19 PM
C:\Program Files\eSCRIBE\TEMP\2215762558\2215762558,,,EXECUTION OF AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF LOCAL TRANSACTION AND USE TAX.docx FINANCIAL IMPACT:
The passage of Measure R is projected to generate approximately $5.2 million annually in additional sales tax revenue for the City. Pursuant to Section 7272 of the State Revenue and Taxation Code, the City must reimburse the State Board of Equalization for its preparatory and administration costs. While the Revenue and Taxation Code states that the preparatory costs shall not exceed $175,000, staff estimates the total impact will be $10,000.
ALTERNATIVES:
No reasonable alternatives are suggested.
ATTACHMENTS:
1) Ordinance No. 1453-22 – Community Investment Sales Tax Measure (Measure R)
Ordinance No. 1453-22 (CM) 1
ORDINANCE NO. 1453-22 (CM)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE ADDING A NEW ARTICLE 15 (TRANSACTIONS AND
USE TAX: COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX
MEASURE) OF CHAPTER 6 (TAXATION) OF TITLE 3 (FINANCE) OF
THE WATSONVILLE MUNICIPAL CODE TO BE ADMINISTERED BY
THE CALIFORNIA STATE BOARD OF EQUALIZATION AND TO BE
APPROVED BY VOTERS
WHEREAS, the impact of COVID-19 on the local economy and City revenues, combined with escalating operating costs, constrains the City’s ability to maintain the quality of services provided and address its capital needs; and WHEREAS, without additional revenues, the City will be compelled to make spending reductions to programs and services that may jeopardize the public health, safety and general welfare of residents and visitors as well as curtail funding for maintenance, construction and other improvements to City facilities, infrastructure and the natural environment; and
WHEREAS, increased tax revenues would provide a secure, local revenue stream that would enable to the City to invest in repair and expansion of aging parks, playgrounds and trails; creating safe places for kids; maintaining after-school and gang prevention programs; fixing potholes and maintaining streets; expanding library access and services for seniors; and creating employment opportunities; and WHEREAS, all funds from a local revenue measure must stay in the City of Watsonville and cannot be taken by the State; and
WHEREAS, the City Council has determined that fiscal necessity requires the placement before the voters at the November 8, 2022 general election of a measure for a transactions and use (sales) tax at the rate of one-half percent (0.5%) on the sale of Attachment 1
Ordinance No. 1453-22 (CM) 2
tangible personal property and the storage, use, or other consumption of such property until repealed by the voters; and
WHEREAS, the transactions and use tax to be submitted to the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular actions or purposes, and any specific purposes recited in the ballot measure are non-exclusive examples only. This tax is a general tax and shall be approved if the measure receives at least a simple majority of affirmative votes.
Table of Contents
SECTION 1. FINDINGS. ................................................................................................. 3 SECTION 2. ENACTMENT. ............................................................................................ 3 ARTICLE 15 ................................................................................................................ 3 COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX................................. 3 Sec. 3-6.1501 Title. .............................................................................................. 3 Sec. 3-6.1502 Program Priorities.......................................................................... 3 Sec. 3-6.1503 Operative date............................................................................... 5 Sec. 3-6.1504 Purpose......................................................................................... 5 Sec. 3-6.1505 Contract with State........................................................................ 6 Sec. 3-6.1506 Transactions tax rate..................................................................... 6 Sec. 3-6.1507 Place of sale.................................................................................. 6 Sec. 3-6.1508 Use tax rate................................................................................... 7 Sec. 3-6.1509 Adoption of provisions of State law. .............................................. 7 Sec. 3-6.1510 Limitations on adoption of State law and collection of use taxes... 7 Sec. 3-6.1511 Permit not required........................................................................ 9 Sec. 3-6.1512 Exemptions and exclusions........................................................... 9 Sec. 3-6.1513 Amendments. .............................................................................. 13 Sec. 3-6.1514 Enjoining collection forbidden...................................................... 14 Sec. 3-6.1515 Annual Audit and Public Report................................................... 14 Sec. 3-6.1516 Termination date. ........................................................................ 14 SECTION 3. CEQA FINDINGS. .................................................................................... 15 SECTION 4. PUBLICATION. ........................................................................................ 15 SECTION 5. SEVERABILITY........................................................................................ 16 SECTION 6. EFFECTIVE DATE. .................................................................................. 16 o-0-o
Attachment 1
Ordinance No. 1453-22 (CM) 3
NOW, THEREFORE, THE PEOPLE OF THE CITY OF WATSONVILLE,
CALIFORNIA, DO HEREBY ORDAIN AS FOLLOWS:
SECTION 1. FINDINGS.
The people of the City of Watsonville do hereby find that the above recitals are true and correct and material to the adoption of this Ordinance.
SECTION 2. ENACTMENT.
Title 3 (Finance) of the Watsonville Municipal Code is hereby amended by adding a new Article 15 (Community Investment Transactions and Use Tax Measure) of Chapter 6 (Taxation) to read in words and figures as follows:
ARTICLE 15
COMMUNITY INVESTMENT TRANSACTIONS AND USE TAX MEASURE
Sec. 3-6.1501 Title.
This article shall be known as the City of Watsonville Community Investment Transactions and Use Tax. The City of Watsonville hereinafter shall be called “City.” This article shall be applicable in the incorporated territory of the City of Watsonville.
Sec. 3-6.1502 Program Priorities.
The community investment transactions and use tax measure will provide a secure, local revenue stream to the City of Watsonville that will be used for general fund purposes to support investment in our community such as: repair and expand aging parks, playgrounds and trails; create safe places for kids; maintain after-school and gang prevention programs; fix potholes and maintain streets; expand library access and services for seniors; create employment opportunities; invest in community partners; and general government use. Detailed expenditure plans shall be developed to explain Attachment 1
Ordinance No. 1453-22 (CM) 4
how the funds will be spent if the one-half of one (0.50%) percent sales tax is approved by voters.
The revenue generated by this transactions and use tax measure will enable the City to invest, maintain, improve and sustain general fund expenses that directly affect the quality of life of Watsonville residents as prioritized by the community needs assessment survey.
(a) The City shall commission an independent third-party to conduct a community needs assessment survey at least once every decade, no later than two years after final decennial census data is available. This survey shall be used to update the short-term, and long-term investment of the revenue generated by this transactions and use tax measure in a way that is consistent with current community needs. The first assessment should be conducted by July 2032, paid for by the measure. (b) Oversight: The City Revenue Measure Oversight Committee shall serve in an oversight capacity to at least bi-annually review revenues and expenditures and provide second independent verification that all expenditures are being made as promised to Watsonville residents. The findings of both the Revenue Measure Oversight Committee shall be reviewed by the City Council at a publicly noticed meeting of the Council and made available to the public.
(c) The Community Investment Tax Measure will be in effect until repealed by Watsonville voters.
(d) Contingency/Reserve Fund. A community investment sales tax measure contingency/reserve fund shall be consistent with the General Fund reserve policy of the City.
Attachment 1
Ordinance No. 1453-22 (CM) 5
Sec. 3-6.1503 Operative date.
“Operative date” shall mean the first day of the first calendar quarter commencing more than one hundred ten (110) days after the adoption of this Article.
Sec. 3-6.1504 Purpose.
This Article is adopted to achieve the following purposes, among others, and directs that the provisions hereof be interpreted in order to accomplish these purposes:
(a) To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) and Section 7285.91 of Part 1.7 both in Division 2 of the Revenue and Taxation Code which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.
This tax is a general tax whose proceeds shall be deposited in the City’s general fund and expended for any lawful purpose of the City.
(b) To adopt a retail transactions and use tax that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. (c) To adopt a retail transactions and use tax that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
Attachment 1
Ordinance No. 1453-22 (CM) 6
(d) To adopt a retail transactions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this article.
Sec. 3-6.1505 Contract with State.
Prior to the Operative Date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transaction and use tax article; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.
Sec. 3-6.1506 Transactions tax rate.
For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half of one (0.50%) percent of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the City on and after the Operative Date and until repealed by voters.
Sec. 3-6.1507 Place of sale.
For the purposes of this article, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the Attachment 1
Ordinance No. 1453-22 (CM) 7
retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. If a retailer has no permanent place of business in the State or has more than one (1) place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.
Sec. 3-6.1508 Use tax rate.
An excise tax is hereby imposed on the storage, use or other consumption in the incorporated territory of the City of tangible personal property purchased from any retailer on or after the Operative Date and until repealed by the voters, for storage, use or other consumption in the City at the rate of one-half of one (0.50%) percent of the sales price of the property. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made.
Sec. 3-6.1509 Adoption of provisions of State law.
Except as otherwise provided in this article and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this article as though fully set forth herein.
Sec. 3-6.1510 Limitations on adoption of State law and collection of use taxes.
Attachment 1
Ordinance No. 1453-22 (CM) 8
In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:
(a) Wherever the State of California is named or referred to as the taxing agency, the name of City shall be substituted therefor. However, the substitution shall not be made when:
(1) The word “State” is used as a part of the title of the State Controller, State Treasurer, State Board of Control, California Department of Tax and Fee Administration, State Treasury, or the Constitution of the State of California; (2) The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this article. (3) In those sections, including but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:
(i) Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remains subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code; or
Attachment 1
Ordinance No. 1453-22 (CM) 9
(ii) Impose this tax with respect to certain sales, storage, use, or other consumption of tangible personal property which would not be subject to tax by the State under the said provision of that code. (4) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. (b) The word “City” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203.
(1) “A retailer engaged in business in the District” shall also include any retailer that, in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand dollars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.
Sec. 3-6.1511 Permit not required.
If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this article.
Sec. 3-6.1512 Exemptions and exclusions.
(a) There shall be excluded from the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city Attachment 1
Ordinance No. 1453-22 (CM) 10
and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any State-administered transactions or use tax. (b) There are exempted from the computation of the amount of transactions tax the gross receipts from:
(1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. (2) Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this subsection, delivery to a point outside the City shall be satisfied:
(i) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code, by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and
Attachment 1
Ordinance No. 1453-22 (CM) 11
(ii) With respect to commercial vehicles, by registration to a place of business out of the City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. (3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date of this Article.
(4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this Article.
(5) For the purposes of subsections (b)(3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(c) There is exempted from the use tax imposed by this article the storage, use or other consumption in this City of tangible personal property:
(1) The gross receipts from the sale of which have been subject to a transactions tax under any State-administered transactions and use tax ordinance.
(2) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or Attachment 1
Ordinance No. 1453-22 (CM) 12
compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government.
This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.
(3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of the this article.
(4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of the this article.
(5) For the purposes of subsections (c)(3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.
(6) Except as provided in subsection (c)(7) of this section, a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the Attachment 1
Ordinance No. 1453-22 (CM) 13
property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.
(7) “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.
(d) Any person subject to use tax under this article may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.
Sec. 3-6.1513 Amendments.
All amendments subsequent to the effective date of this this article to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Parts 1.6 and 1.7 of Division 2 of the Revenue and Attachment 1
Ordinance No. 1453-22 (CM) 14
Taxation Code, shall automatically become a part of this article; provided, however, that no such amendment shall operate so as to affect the rate of tax imposed by this article.
Sec. 3-6.1514 Enjoining collection forbidden.
No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this article, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.
Sec. 3-6.1515 Annual Audit and Public Report.
Annually the City Council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the City’s financial activities. The auditor shall include an accounting of the revenue received from the tax collected pursuant to this Article and expenditures therefore in the audited financial statements.
The auditor’s report shall be presented to the Council and made available to the public.
Additionally, the City Manager or his or her designee shall annually prepare and present to the Council and the public a report in conjunction with the audit that reviews the status and performance of the programs and services funded wholly or partially with proceeds of the tax authorized by this Article.
Sec. 3-6.1516 Termination date.
The tax levied by this article shall continue until repealed by voters from the operative date of this article.
Attachment 1
Ordinance No. 1453-22 (CM) 15
SECTION 3. CEQA FINDINGS.
For purposes of the California Environmental Quality Act (Public Resources Code Section 21000, et seq.), a “project” is defined in State CEQA Guidelines Section 15378 (a) as “the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment”. The people of the Watsonville hereby find that the proposed Ordinance will not result in any change in the environment and thus is not a project subject to the requirements of CEQA. Additionally, the proposed Ordinance involves the creation of a government funding mechanism which does not involve any commitment to any specific project which may result in a potentially significant impact on the environment and thus the proposed Ordinance is not a project subject to the requirements of CEQA pursuant to CEQA Guidelines Section 15378 (b)(4). Further, even if the adoption of this Ordinance was deemed to be a project subject to CEQA, the people of the City of Watsonville find the proposed Ordinance is exempt from CEQA under the common sense exemption set forth in Section 15061(b)(3), which provides that CEQA only applies to projects which have the potential for causing a significant effect on the environment, and thus where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.
SECTION 4. PUBLICATION.
This ordinance shall be published in compliance with the provisions of the City Charter.
Attachment 1
Ordinance No. 1453-22 (CM) 16
SECTION 5. SEVERABILITY.
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.
SECTION 6. EFFECTIVE DATE.
This Ordinance relates to the levying and collecting of the City transactions and use tax and shall take effect ten (10) days after the certification by the City Council of the election returns indicating passage of the Ordinance by a majority of voters voting in the election.
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Attachment 1
Reso No. (CM)
Meeting Date: 011023
SWZ ______ RM ______
1 RESOLUTION NO. __________ (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WATSONVILLE AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH THE CALIFORNIA DEPARTMENT OF TAX AND
FEE ADMINISTRATION FOR IMPLEMENTATION OF A LOCAL
TRANSACTIONS AND USE TAX
[MEASURE R (2022)]
WHEREAS, on November 8, 2022, the voters of the City of Watsonville approved Ordinance No. 1453-22 amending the City Municipal Code and providing for a local transactions and use tax; and
WHEREAS, the California Department of Tax and Fee Administration (Department) administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and
WHEREAS, the Department will be responsible to administer and collect the transactions and use tax for the City; and
WHEREAS, the Department requires that the City enter into a “Preparatory Agreement” and an “Administration Agreement” prior to implementation of said taxes, and
WHEREAS, the Department requires that the City Council authorize the agreements;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA, AS FOLLOWS:
That the City Council of the City of Watsonville that the “Preparatory Agreement” attached as Exhibit A and the “Administrative Agreement” attached as Exhibit B are
Reso No. (CM)
Meeting Date: 011023 2
hereby approved and the City Manager is hereby authorized to execute each agreement on behalf of the City of Watsonville.
********************************
1 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE
CITY'S TRANSACTIONS AND USE TAX ORDINANCE
In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Watsonville, hereinafter called City, and the CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION, hereinafter called Department, do agree as follows:
1. The Department agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City.
2. City agrees to pay to the Department at the times and in the amounts hereinafter specified all of the Department's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Department's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Department's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance.
These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code.
3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Department. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City.
4. Any dispute as to the amount of preparatory costs incurred by the Department shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final.
5. Preparatory costs incurred by the Department shall be billed by the Department periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Department the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received.
2 6. The amount to be paid by City for the Department's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.)
7. Communications and notices may be sent by first class United States mail.
Communications and notices to be sent to the Department shall be addressed to:
California Department of Tax and Fee Administration
P.O. Box 942879 MIC: 27
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to City shall be addressed to:
City Clerk
275 Main Street, Suite 400
Watsonville, CA 95076
8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Department has received all payments due from City under the terms of this agreement.
CITY OF CALIFORNIA DEPARTMENT OF TAX
AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Rene Mendez
(Typed Name)
City Manager
(Title)
(Rev. 11/17)
AGREEMENT FOR STATE ADMINISTRATION
OF CITY TRANSACTIONS AND USE TAXES
The City Council of the City of Watsonville has adopted, and the voters of the City of Watsonville (hereafter called “City” or “District”) have approved by the required majority vote, the City of Watsonville Transactions and Use Tax Ordinance (hereafter called “Ordinance”), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the California State Department of Tax and Fee Administration, (hereinafter called the “Department”) and the City do agree as follows:
ARTICLE I
DEFINITIONS
Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following:
1. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code.
2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 1453-22 amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2.
ARTICLE II
ADMINISTRATION AND COLLECTION
OF CITY TAXES
A. Administration. The Department and City agree that the Department shall perform exclusively all functions incident to the administration and operation of the City Ordinance.
Exhibit B
(Rev. 10/17) 2
B. Other Applicable Laws. City agrees that all provisions of law applicable to the administration and operation of the Department Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Department pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled.
C. Transmittal of money.
1. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter.
2. For periods subsequent to the expiration date of the tax whether by City’s self-imposed limits or by final judgment of any court of the State of California holding that City’s ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter.
3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement.
D. Rules. The Department shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder.
E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Department shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear.
Exhibit B
(Rev. 10/17) 3
F. Security. The Department agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Department shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Department.
G. Records of the Department.
When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Department agrees to permit authorized personnel of the City to examine the records of the Department, including the name, address, and account number of each seller holding a seller’s permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Department's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Department pursuant to this Agreement.
H. Annexation. City agrees that the Department shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Department. The notice shall include the name of the county or counties annexed to the extended City boundary. In the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary.
ARTICLE III
ALLOCATION OF TAX
A. Allocation. In the administration of the Department's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code:
1. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Exhibit B
(Rev. 10/17) 4
Department, to all districts with which the Department has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers.
2. All district taxes collected as a result of determinations or billings made by the Department, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes for the period for which the determination, billing, refund or credit applies.
B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Department in determining the place of use.
ARTICLE IV
COMPENSATION
The City agrees to pay to the Department as the State's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Department for the City.
ARTICLE V
MISCELLANEOUS PROVISIONS
A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses as the parties may from time to time designate.
A notification is complete when deposited in the mail.
Exhibit B
(Rev. 10/17) 5
Communications and notices to be sent to the Department shall be addressed to:
California State Department of Tax and Fee Administration P.O. Box 942879
Sacramento, California 94279-0027
Attention: Administrator
Local Revenue Branch
Communications and notices to be sent to the City shall be addressed to:
City Clerk
275 Main Street, Suite 400
Watsonville, CA 95076
Unless otherwise directed, transmittals of payment of District transactions and use taxes will be sent to the address above.
B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April 1, 2023. This Agreement shall continue until December 31 next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Department completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance.
C. Notice of Repeal of Ordinance. City shall give the Department written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal.
Exhibit B
(Rev. 10/17) 6
ARTICLE VI
ADMINISTRATION OF TAXES IF THE
ORDINANCE IS CHALLENGED AS BEING INVALID
A. Impoundment of funds.
1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. C., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid.
2. If the tax is determined to be unconstitutional or otherwise invalid, the City shall transmit to the Department the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and nonappealable.
B. Costs of administration. Should a final judgment be entered in any court of the State of California, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that:
1. Department may retain all payments made by City to Department to prepare to administer the City Ordinance.
2. City will pay to Department and allow Department to retain Department's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement.
3. City will pay to Department or to the State of California the amount of any taxes plus interest and penalties, if any, that Department or the State of California may be required to rebate or refund to taxpayers.
4. City will pay to Department its costs for rebating or refunding such taxes, interest, or penalties. Department's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and Exhibit B
(Rev. 10/17) 7
developing instructions for Department's staff for use in making these rebates or refunds and any other costs incurred by Department which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Department's direct and indirect costs as specified by Section 11256 of the Government Code.
5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Department. The billings for such costs may be presented in summary form. Detailed records will be retained for audit and verification by City.
6. Any dispute as to the amount of costs incurred by Department in refunding taxes shall be referred to the State Director of Finance for resolution and the Director's decision shall be final.
7. Costs incurred by Department in connection with such refunds shall be billed by Department on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Department shall bill City on or before the 25th of each month for all costs incurred by Department for the preceding calendar month. City shall pay to Department the amount of such costs on or before the last day of the succeeding month and shall pay to Department the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Department costs incurred in making those refunds.
CITY OF WATSONVILLE CALIFORNIA STATE DEPARTMENT OF
TAX AND FEE ADMINISTRATION
By By
(Signature) Administrator
Local Revenue Branch
Rene Mendez
(Typed Name)
City Manager
(Title)
Exhibit B
1 Reso No. (CM)
Meeting Date: 011023
RESOLUTION NO. (CM)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WATSONVILLE RATIFYING THE CITY MANAGER’S PROCLAMATION OF THE
EXISTENCE OF A LOCAL EMERGENCY DUE TO SEVERE FLOODING
WHEREAS, the California Emergency Services Act (California Government Code section 8550, et. seq.) defines a local emergency as the existence of conditions of disaster or extreme peril to the safety of persons and property within the territorial limits of a city, caused by conditions such as flood or storm, which are or are likely to be beyond the control of services, personnel, equipment, and facilities of a city, and require the combined forces of other political subdivisions to combat; and WHEREAS, Public Contract Code section 1102 defines emergency as a sudden, unexpected occurrence that poses a clear and imminent danger, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property, or essential public services; and
WHEREAS, Public Contract Code section 20168 states that a legislative body may pass a resolution by a four-fifths vote declaring that the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property; and
WHEREAS, Public Contract Code section 22050(b)(1) permits the City Council to delegate the authority to repair or replace a public facility, take any directly related and immediate action required by the emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts to the city manager by four-fifths vote; and
WHEREAS, Section 4-2.02 of the City of Watsonville (“City”) Municipal Code
2 Reso No. (CM)
Meeting Date: 011023
defines emergency as, among other things, an extraordinary flood or storm; and WHEREAS, Section 4-2.03 of the City’s Municipal Code designates the City Manager as the Director of Emergency Services for the City and empowers the Director of Emergency Service to proclaim the existence or threatened existence of a local emergency when the City Council is not in session; and
WHEREAS, on December 30th and 31st, 2022 and January 4th and 5th, 2023, the City experienced a major rain event (the “2022-23 Atmospheric River Winter Storm”); and
WHEREAS, as a result of the 2022-23 Atmospheric River Winter Storm, major flooding of Corralitos Creek and Salispuedes Creek in South Santa Cruz County caused damage to public and private property in the City; and
WHEREAS, various other roads and infrastructure in the City have also been a result of the 2022-23 Atmospheric River Winter Storm; and WHEREAS, the 2022-23 Atmospheric River Winter Storm has already caused damage, estimated to exceed $1.5 million, although the true extent of the damage has yet to be ascertained; and
WHEREAS, soil conditions in the City and surrounding areas remain saturated as a result of the 2022-23 Atmospheric River Winter Storm; and WHEREAS, on January 3, 2023, when the City Council was not in session, the City Manager, acting as the Director of Emergency Services, issued a Proclamation of the Existence of a Local Emergency, pursuant to Municipal Code section 4-2.03, finding that conditions of disaster and extreme peril to the safety of persons, their property and public services exist in the City as a result of the 2022-23 Atmospheric River Winter
3 Reso No. (CM)
Meeting Date: 011023
Storm; and
WHEREAS, the conditions for emergency supporting the City Manager’s January 3, 2023, Proclamation continue to exist in the City; and WHEREAS, due to the severe flooding and mandatory evacuations ordered as a result, there is substantial evidence that the emergency will not permit a delay resulting from a competitive solicitation for bids, and emergency repair work is necessary to respond to the emergency; and
WHEREAS, the City Council must adopt this Resolution with a four-fifths vote to delegate emergency contracting authority to the City Manager pursuant to Public Contracting Code sections 1102, 20168, and 22050.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WATSONVILLE, CALIFORNIA THAT the January 3, 2023 Proclamation of the Existence of a Local Emergency issued by the City Manager, acting as the Director of Emergency Services, is hereby confirmed and ratified by the City Council of the City of Watsonville.
BE IT FURTHER RESOLVED that said local emergency shall be deemed to continue to exist and shall be reviewed at least once every 60 days until its termination is proclaimed by the City Council of the City of Watsonville per California Government Code section 8630.
BE IT FURTHER RESOLVED that pursuant to Municipal Code section 4-2.04, Public Contract Code sections 1102, 20168, and 22050, the City Manager or designee is hereby authorized to repair or replace a public facility, take any directly related and immediate action required by the emergency, and procure the necessary equipment,
4 Reso No. (CM)
Meeting Date: 011023
services, and supplies for those purposes; and
BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to take whatever other action is authorized under the City of Watsonville Municipal Code and state and federal law, subject to any required authorization from the City Council, consistent with this Resolution and its basic purposes. ********************************
BY THE DIRECTOR OF EMERGENCY SERVICES
OF THE CITY OF WATSONVILLE, STATE OF CALIFORNIA
PROCLAMATION OF EXISTENCE OF A LOCAL EMERGENCY
WHEREAS, Section 4-2.03 of the City of Watsonville (“City”) Municipal Code, empowers the City Manager acting as the City’s Director of Emergency Services, to issue a proclamation of the existence or threatened existence of an emergency when the City Council is not in session, subject to confirmation by the Council at the earliest practicable time; and WHEREAS, Section 4-2.04 empowers the City Manager, acting as the City’s Director of Emergency Services, to among other things, obtain vital supplies, equipment, and such other things found lacking and needed for the protection of life and property, and bind the City to the fair value thereof; and
WHEREAS, on December 30 and 31, 2022, the City experienced a major rain event (the “2022-23 Atmospheric River Winter Storm”); and
WHEREAS, as a result of the 2022-23 Atmospheric River Winter Storm, major flooding of Corralitos Creek and Salsipuedes Creek in South Santa Cruz County caused damage to public and private property in Watsonville, California; and
WHEREAS, various other roads and infrastructure in the City of Watsonville have been damaged as a result of the 2022-23 Atmospheric River Winter Storm; and WHEREAS, current estimates of the damage caused by the 2022-23 Atmospheric River Winter Storm exceed $1.5 million, and the true extent of the damage caused by the 2022-23 Atmospheric River Winter Storm has yet to be ascertained; and WHEREAS, soil conditions in the City of Watsonville and County of Santa Cruz remain saturated as a result of the 2022-23 Atmospheric River Winter Storm, and an additional atmospheric storm event is expected on January 4 and 5, 2023, increasing the likelihood of further damage from earth slippage events, including the potential for flooding; and WHEREAS, at the time of this Proclamation, the City Council is not in session.
NOW, THEREFORE, IT IS PROCLAIMED AS FOLLOWS:
1. Conditions caused by the 2022-23 Atmospheric River Winter Storm in the City of Watsonville in the County of Santa Cruz, including but not limited to flooding along Corralitos Creek and Salispuedes Creek and in the City of Watsonville as well as other currently undiscovered damage related to the 2022-23 Atmospheric River Winter Storm, constitute DocuSign Envelope ID: 31103625-A82F-4C37-B4EF-3BCB4DB19E59
conditions of disaster and extreme peril to the safety of persons, their property and public services, and that such conditions have existed since approximately 12:00 a.m. on January 1, 2023.
2. A local emergency, as defined in Section 4-2.03 of the Watsonville Municipal Code, Government Code Section 8558(c) and Public Contract Code Section 1102, now exists in the City of Watsonville in the County of Santa Cruz.
3. During the existence of said local emergency the powers, functions, and duties of the City Manager or designee, shall be those prescribed by State law and the ordinances, resolutions, codes and approved plans of the City of Watsonville in order to mitigate the effects of the local emergency.
4. Pursuant to Section 4-2.01 of the City of Watsonville Municipal Code, all expenditures made in connection with this local emergency, including mutual aid activities, shall be deemed to be for the direct protection and benefit of the inhabitants and property of the City of Watsonville.
5. City Manager, or his designee, is hereby designated as the authorized Agent for the City of Watsonville for the purposes of receipt, processing, and coordination of all inquiries and requirements necessary to obtain available County, State, and federal assistance.
6. Pursuant to Government Code section 8630, the local emergency shall be deemed to continue to exist for a period of up to seven (7) days, and thereafter by ratification and extension by the City Council until it is terminated by the City Council.
DATE: January 3, 2023 ______________________________
RENE MENDEZ
CITY MANAGER/ DIRECTOR OF
EMERGENCY SERVICES
ATTEST:
______________________________
IRWIN ORTIZ
CITY CLERK
APPROVED AS TO FORM:
________________________________
SAMANTHA W. ZUTLER
CITY ATTORNEY
Distribution: City Council
Governor Newsom
Santa Cruz County
Assemblymember Robert Rivas
Senator John Laird
Congressmember Zoe Lofgren
Congressmember Jimmy Panetta
California Office of Emergency Services
DocuSign Envelope ID: 31103625-A82F-4C37-B4EF-3BCB4DB19E59
Atmospheric River Storm
City of Watsonville Update
January 10, 2023 Page 38 of 53
Background
December 31, 2022
An unprecedented atmospheric river hit the Central Coast impacting all of Santa Cruz County.
Corralitos Creek breached the levee outside of the City at approximately 5pm.
Several City streets and residents were flooded.
RESPONSE
WFD - Began to assist with rescue and
evacuation calls
Police - Closed roads and ensured safety
Watsonville Public Works Crews - were
on duty assisting with road closures and
ensuring all 14 storm pump stations were
operational
Parks Crew - Open triage area for shelter
at Ramsay Park
Communication team - Pushed out
important information via all social media
platforms
JANUARY 1ST
Water receded overnight leaving
large amount of debris and
sediment on the streets,
driveways.
Solid Waste team, Street
sweepers, Field Services, Water
Services, and Parks personnel
were all recalled to assist with
aftermath of storm
.<1--- :~- .: &
, .· - , -..... . ;·::... ,r
'. . . ·' .1. ~ ;;_.:. ~ i .-.. . ' --~ ;
PRIORITIES
NWS reports confirmed that a new
storm was going to hit our area
Recovery and preparedness of
our drainage system was our
number one priority
Engaged contractors to clear
channels and remove sediment
buildup in streets
Performed comprehensive
preventive maintenance check of
all pump stations and generators
NEIGHBORS
HELPING NEIGHBORS
TO GET PREPARED
Over 70 volunteers assisted
conducting door to door
outreach and distribute
information to residents
Approximately 1,200 Tons of
sand and 75,000 bags were
filled and distributed
WEDNESDAY 1/4/23
“Bomb Cyclone”
Was predicted to be monumental
and bring large amount of rain to
our area.
Evacuation order was issued at
5:20pm on 1/3/23
Shelter was open at Cesar Chavez
School - 73 residents
SC Health Department - provided
medical support at shelter site
THURSDAY 1/5/23
MONDAY 1/9/23
8:30am
Evacuation Orders Issued in Watsonville
Areas affected by orders included
Corralitos and Salsipuedes Creeks and
Pajaro River neighbors
As predicted with the amount of rain
received in our area Corralitos Creek
flooded again in a very similar pattern as it
did on December 31, 2022
EVACUATION ORDER
Orden de Evacuaci6n
MONDAY 1/9/23
𝟭𝟭𝟬𝟬:𝟰𝟰𝟱𝟱𝗔𝗔𝗠𝗠
Evacuation Warning warnings were
later issued for additional areas of our
City.
Through Sunday Night and early
hours of Monday morning we
received rain and affluent waters
coming into Corralitos and
Salsipuedes Creek caused
EVACUATION WARNING
Advertencia de Evacuaci6n
January 9, 2023 - 10:45 am
MONDAY 1/9/23
𝗠𝗠𝗢𝗢𝗡𝗡𝗗𝗗𝗔𝗔𝗬𝗬, 𝗝𝗝𝗔𝗔𝗡𝗡𝗨𝗨𝗔𝗔𝗥𝗥𝗬𝗬 𝟵𝟵, 𝟴𝟴:𝟰𝟰𝟱𝟱𝗣𝗣𝗠𝗠
All evacuation orders and
warnings remained in place
to am today (1/10/23)
We continue to monitor
creek and river levels as
additional rain was expected
later last night.
. ~
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c<>«a111,.,c,...i,.
~ii_
• EVACUATION ORDER
Orden de Evacuaci6n
January 9, 2023 - 8:45 pm
TUESDAY 1/10/23
𝗧𝗧𝗨𝗨𝗘𝗘𝗦𝗦𝗗𝗗𝗔𝗔𝗬𝗬, 𝗝𝗝𝗔𝗔𝗡𝗡𝗨𝗨𝗔𝗔𝗥𝗥𝗬𝗬 𝟭𝟭𝟬𝟬, 𝟱𝟱:𝟮𝟮𝟬𝟬𝗔𝗔𝗠𝗠
Evacuation Orders in the City of
Watsonville have been
downgraded to Evacuation
Warnings.
Residents are cleared to return
home but should remain
prepared and alert for pending
weather changes.
• EVACUATION WARNING
Advertencia de Evacuaci6n
WHERE WE ARE
TODAY?
Continue to monitor creek and river levels,
levees, and upcoming wet weather systems in
coordination with Santa Cruz County & PRFMA
Public Works Crews continue cleanup and
repair of storm damage areas while resuming
normal duties throughout City
Customer service staff responding to calls
Infrastructure remains operational and
prepared for continued wet weather
Flood Damage Disposal at Waste and
Recycling Center
No service interruption to City utilities through
storm event
...
"
RECOMMENDATION FOR OUR RESIDENTS
•Stay off Levees - For your safety and safety
Keep your property’s drainage systems clear
• Develop an emergency/evacuation plan
• Contact and inform relatives/friends about your plan
• Prepare emergency supplies
• Download the Watsonville Police Department App to get notifications • Sign up for “Code Red” emergency phone notifications at: www.scr911.org
RECOMMENDATION
RATIFY THE CITY MANAGER’S PROCLAMATION OF THE EXISTENCE OF A LOCAL EMERGENCY DUE TO SEVERE
FLOODING