BILL ANALYSIS                                                                                                                                                                                                    Ó





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          |                                                                 |
          |         SENATE COMMITTEE ON NATURAL RESOURCES AND WATER         |
          |                   Senator Fran Pavley, Chair                    |
          |                    2013-2014 Regular Session                    |
          |                                                                 |
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          BILL NO: SB 968                    HEARING DATE: April 8, 2014
          AUTHOR: Hill                       URGENCY: No
          VERSION: February 10, 2014         CONSULTANT: Katharine Moore
          DUAL REFERRAL: Judiciary           FISCAL: Yes
          SUBJECT: Public lands: Martin's Beach property: access road.
          
          BACKGROUND AND EXISTING LAW
          The State Lands Commission (Commission) has authority over  
          California's sovereign lands and the commission administers  
          these lands pursuant to statute and the public trust doctrine.

          The public trust doctrine is a common law doctrine that  
          specifies the state's authority as sovereign to exercise  
          continuous supervision and control over the navigable waters of  
          the state, tidelands, and and non-navigable tributaries to  
          navigable waters.  The doctrine includes the protection of  
          maritime or water dependent commerce, navigation, and fisheries,  
          and the preservation of the lands in their natural state for  
          scientific study, open space, wildlife habitat, and  
          water-oriented recreation. Incidental uses that directly promote  
          trust uses or that lend themselves to the public's enjoyment of  
          trust lands are also permitted.  These may include facilities  
          that serve visitors, such as parking lots, hotels and  
          restaurants.

          In specific circumstances, the commission may enhance public  
          access to or along navigable waters (see, for example, Public  
          Resources Code (PRC) §6307) to justify certain actions.   
          Additionally, PRC §6210.9 gives the commission specific  
          authority, where there is no access available to public trust or  
          similar lands, to obtain a "right-of-way or easement across  
          privately owned land or other land that it deems necessary to  
          provide access to such public land" via condemnation.  The  
          commission has never exercised that authority since receiving it  
          in 1975.

          The California Constitution (Article X of Section 4) states that  
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          "no individual, partnership, or corporation, claiming or  
          possessing the frontage or tidal lands of a harbor, bay, inlet,  
          estuary, or other navigable water in this State, shall be  
          permitted to exclude the right of way to such water whenever it  
          is required for any public purpose, nor to destroy or obstruct  
          the free navigation of such water; and the Legislature shall  
          enact such laws as will give the most liberal construction to  
          this provision, so that access to the navigable waters of this  
          State shall be always attainable for the people thereof."   
          Further, the Coastal Act (PRC §30000 et seq.) requires  
          maximizing public access to the coast and recreational  
          opportunities.

          Martin's Beach is located on the coast of San Mateo County  
          approximately 8 miles south of Half Moon Bay.  Seventy-five foot  
          cliffs are located on both the north and south ends of the  
          beach.  Access to the beach is via a private road (Martin's  
          Beach Road) from Highway 1.  There are approximately 45 cabins  
          on long-term lease adjacent to the beach area.  Prior to July  
          2008, a single family had owned Martin's Beach and the  
          surrounding land for over 100 years.  At various times the  
          family allowed the public access to the beach by vehicle,  
          according to documents filed during recent litigation.  A  
          parking area was maintained near the beach and parking fees were  
          charged.  Facilities available included a general store,  
          restaurant and restrooms.  These uses and development pre-date  
          the passage of the Coastal Act.  Documents submitted during  
          litigation state that the store and restaurant were closed by  
          the end of the 1980s. In July 2008, two parcels totaling 89  
          acres from Highway 1 west to the coast and encompassing most of  
          Martin's Beach and all of Martin's Beach Road were sold for  
          $37.5 million.

          The new owners of the two parcels are Martins Beach 1, LLC and  
          Martins Beach 2, LLC (MB12).  Vinod Khosla, the prominent  
          venture capitalist, and his family are behind these two LLCs.   
          In fall 2009 or at some point thereafter, local management of  
          MB12 closed and locked a gate on Martin's Beach Road at Highway  
          1, and repainted a roadside sign indicating the beach, among  
          other actions.  According to the local management, the road and  
          parking area were in disrepair and it was uneconomic to provide  
          a parking attendant at the beach.  Considerable local  
          controversy ensued as activists and political figures sought to  
          obtain public access to the beach again.  There are numerous  
          news stories describing trespassing by surfers and others as  
          well as attempts by stakeholders to negotiate renewed public  
          access. 
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          MB12 have been sued twice in an effort to obtain public access  
          to the beach.  Friends of Martin's Beach LLC sued for public  
          access to the tidelands, beach parking area and access along the  
          Martin's Beach Road invoking, in part, the public trust doctrine  
          and provisions of the state's constitution (CIV517634, San Mateo  
          County Superior Court).  The case was decided in favor of MB12  
          in October 2013, although the final order has not yet been  
          issued.  News reports indicate there will be an appeal.  
          Additionally, the Surfrider Foundation has filed a citizen's  
          suit under the Coastal Act to compel public access (CIV520336,  
          San Mateo County Superior Court).  A trial is scheduled for May  
          2014 in this suit.

          PROPOSED LAW
          This bill would:
                 require the commission to consult and enter into  
               negotiations with the owners of the two Martin's Beach  
               parcels to acquire all or portion of that property for a  
               new public access road "to and along the shoreline,  
               including the sandy beach" at Martin's Beach.
                 require the commission to use eminent domain to make the  
               purchase if a negotiated agreement is not reached by  
               January 1, 2016.
                 make various legislative findings in support of the bill  
               including a finding that special legislation is necessary.

          ARGUMENTS IN SUPPORT
          The author states that SB 968 was introduced "to try and provide  
          a pathway for compromise so the public can once again access  
          Martin's Beach. [?] Local residents and Californians have been  
          deprived of this natural treasure for long enough. [?] This bill  
          tries to bring the landowner to the table to reach a compromise  
          since they have been unresponsive to other efforts.  I hope a  
          compromise can be reached because no one wants to use eminent  
          domain; however, to me there is no better or more appropriate  
          use for eminent domain."

          According to the California Coastal Commission, "An opportunity  
          to secure permanent public access to such a significant stretch  
          of beach adjacent to major urban areas without the cost, time  
          delays and uncertainty of litigation is worthy of pursuing, and  
          acquisition here under the terms of this bill would appear to be  
          consistent with the Constitutional and statutory direction to  
          maximize access."


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          ARGUMENTS IN OPPOSITION
          None received

          COMMENTS 
           Premature?   As noted above, there are two active lawsuits  
          seeking public access to Martin's Beach.  This bill seeks a  
          legislative remedy to provide public access.  The Committee may  
          find it premature to direct the commission to enter into  
          negotiations or condemnation proceedings until this litigation  
          is completed as the outcome may obviate the need for this bill.

           This bill is double-referred to the Senate Judiciary Committee  .   
          Issues relevant to that Committee's jurisdiction will not be  
          discussed here.

           Is the commission the right property operator  ?  The bill makes  
          no provision for the ongoing management and operation of the  
          property acquired pursuant to its requirements.  Ongoing  
          management of the beach and parking area may be better suited to  
          State Parks or the local or regional open space or park  
          district. (Tunitas Creek Open Space Preserve, Wavecrest Open  
          Space, Purisima Creek Redwoods Open Space Preserve, El Corte de  
          Madera Creek Open Space Preserve, San Gregorio State Beach and  
          Burleigh Murray Ranch State Park all appear to be within 6 - 10  
          miles of Martin's Beach.)  San Mateo County operates a vibrant  
          local park system which currently includes 20 separate  
          locations.  Additionally, the commission has granted lands in  
          San Mateo County to the County and to the San Mateo County  
          Harbor District.  The Committee may wish to add a provision  
          requiring local stakeholders to reach an agreement to provide  
          on-going management and operation [Amendment 1].

           Technical corrections  .  Special legislation is found in Section  
          2 of this act, not Section 1, and the beach area of Martin's  
          Beach does not appear to be 200 acres [Amendment 2].

           The limitation placed on the commission to use condemnation to  
          obtain easement or right-of-way pursuant to PRC §6210.9 does not  
          apply  .  Instead, in this instance, the commission is  
          specifically authorized to negotiate and purchase "property."

           Funding  ?  SB 968 identifies no source of funds to pay for the  
          property it directs the commission to acquire.  Additionally, no  
          funds are identified for any necessary construction, repairs or  
          ongoing maintenance and operation of the property once  
          purchased.  

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           Potential pending permits and a busy court  .  In 2013, both the  
          County of San Mateo and the California Coastal Commission issued  
          emergency permits to MB12 and a lessee of a house endangered by  
          a failing seawall to install a rip-rap revetment.  A condition  
          of the emergency permit approvals was that regular coastal  
          development permit applications would subsequently have to be  
          filed and approved or the revetment would have to be removed by  
          the end of July 2014.  In September 2013, MB12 and the lessee  
          filed permit applications for the sea wall and road repairs that  
          both San Mateo County and the California Coastal Commission  
          deemed to be incomplete.  Letters continue to be exchanged and  
          MB12 is attempting to withdraw as a permit applicant in favor of  
          the lessee.  There are existing zoning violations on the  
          property according to a staff letter from the San Mateo County  
          Planning and Building Department to the applicants.

          There are 3 other related actions related to MB12 - one active  
          and two closed - in the Superior Court of San Mateo County  
          online archive.  The active action is a contractors' lien for  
          aggregate filed in late February 2014.  In 2009, MB12 sued both  
          the California Coastal Commission and the County of San Mateo  
          over public access (CIV485116).  This case was dismissed as MB12  
          had not pursued all administrative remedies available.  In 2013  
          another case was dismissed on similar grounds.  In that instance  
          MB12 sued the California Coastal Commission over a disputed mean  
          high tide line (CIV523571).
          
          SUGGESTED AMENDMENTS 

               AMENDMENT 1  
               Add section 6213.5 (c) as follows:
               (c) The commission shall enter into consultation and  
               negotiation with local stakeholders, including, but not  
               limited to, local and regional government and government  
               entities, to address the ongoing management and operation  
               of the property acquired pursuant to this section.

               AMENDMENT 2 
               On page 2, line 19: replace "a 200-acre" with "an  
          approximately 20 acre"
               On page 3, line 24: replace "Section 1" with "Section 2"
               
          SUPPORT
          Black Surfers Collective
          California Coastal Commission
          California Coastal Protection Network
          Coastside Beach Coalition
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          Committee for Green Foothills
          Environmental Action Committee of West Marin
          Ocean Conservancy
          Save the Waves Coalition
          Sierra Club California Coastal Committee
          Surfrider Foundation
          Wildcoast

          hundreds of individuals

          OPPOSITION
          None Received



































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