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 1424 HEARING DATE: April 22, 2014
AUTHOR: Wolk and Bonilla URGENCY: No
VERSION: April 8, 2014 CONSULTANT: Toni Lee
DUAL REFERRAL: No FISCAL: Yes
SUBJECT: State property: tidelands transfer: City of Martinez.
BACKGROUND AND EXISTING LAW
Existing law, under the Public Trust Doctrine, defines sovereign
or public trust lands as lands under the ocean and navigable
streams owned by the public and held in trust for the people by
government. Uses of these trust lands are generally limited to
those that are water dependent or related, and include commerce,
fisheries and navigation, and environmental preservation and
recreation. Because public trust lands are held in trust for all
citizens of California, they must be used to serve statewide, as
opposed to purely local, public purposes.
Existing law (Public Resources Code (PRC) §6301) grants the
California State Lands Commission (SLC) exclusive jurisdiction
over all tidelands and submerged lands including public trust
lands. This section also grants SLC the authority to grant these
lands to local jurisdictions as specified.
Existing law, the Kapiloff Land Bank Act (PRC §8600), creates
the Land Bank Fund in the State Treasury and continuously
appropriates moneys in the fund to the SLC for certain public
trust purposes. The act authorizes the SLC to use monies in the
fund to further state policy, which declares wetlands essential
and that facilitating the completion of projects on public trust
lands is in the state's interest. The Land Bank Fund may receive
revenues for mitigation, title settlements, or the management
and improvement of public trust property held by SLC.
Since 1851, the City of Martinez (City) has held title to
state-granted lands in the Straights of Carquinez in Contra
Costa County. SB 1876 (Ch. 815, Stats. 1976) established the
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current grant of lands to the City, which contains three parcels
of tide and submerged lands. Two parcels are used only for
marina spoils (materials removed from dredging a marina), spoil
removal, and other activities. One parcel is used as a railroad
right-of-way. Additionally, all revenues derived from the lands
are to be paid to the state to meet the obligations of the
grant.
Since the 1960s, the City has also been leasing the land
containing the Martinez Marina (Marina), which consists of a
pier and moorings. The lease was renewed in 2010 for 46 years.
As of August 1, 2013, the City had five outstanding loans,
totaling approximately $4.249 million, with the California
Division of Boating and Waterways (DBW) for projects related to
the operation and maintenance of the Marina (repairs to the
breakwater, public restrooms, parking area, landscaping,
relocation of berths, dredging, etc.). Due to the large amounts
of sediment flowing into the area, these issues are persistent
and ongoing.
In August of 2013, the office of Senator Wolk, office of
Assemblymember Bonilla, Natural Resources Agency, Department of
Finance, Department of Parks and Recreation, SLC, and the City
(locals and the mayor) met to discuss the future of operations
at the Marina. This small working group determined that the best
way to resolve the financial issues would involve transferring
title of the Marina to the City. The City wishes to use the area
to pursue land and water-based commercial redevelopment
projects.
SB 551 of 2011 (DeSaulnier, Ch. 422, Stats. 2011) repealed a
2006 public land grant to the City of Pittsburg in Contra Costa
County, enacted a new land grant to the city, and introduced a
novel funding scheme. This funding scheme allowed the city to
keep 80% of revenues generated from the trust lands and required
the city to transmit the remaining 20% to SLC for allocation by
the Treasurer. Of the monies allocated by the Treasurer, 80%
would be deposited in the General Fund and 20% to the Land Bank
Fund for management of SLC's granted lands program. The bill
also required the City of Pittsburg submit to SLC a trust lands
use plan and a report by September 30, 2022, and every 5 years
thereafter on uses of trust lands, trust revenues, and
expenditures.
PROPOSED LAW
This bill would:
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1.Repeal the 1976 public land grant to the City and transfer the
title of all parcels, including the Martinez Marina, to the
City.
2.Authorize the City to lease trust lands under specified
conditions.
3.Require that the trustee submit to SLC a trust lands use plan
describing any proposed development, preservation, or other
use of the trust lands by January 1, 2020 and a report of its
utilization of trust lands by September 30, 2025 and every
five years thereafter.
4.Require that the City annually file for approval with SLC a
statement of all trust revenues, expenditures, and outstanding
obligations by October 1.
5.Require the City to file a specified document for approval
with SLC before spending more than $250,000 on a single
project on trust lands.
6.Require, provided specified loans have been repaid, that on
June 30, 2015 and at the end of every fiscal year thereafter
the remaining 20% of gross revenue shall be transmitted to SLC
for allocation to the Treasurer, 80% of which will be
deposited to the General Fund and 20% of which will be
deposited in the Land Bank Fund.
ARGUMENTS IN SUPPORT
The author's office states that the Legislature has enacted more
than 300 statutes granting sovereign public trust lands to over
80 local municipalities to manage in trust for the people of
California. They add that this bill will provide the City a
revised land grant that includes the marina and adjacent
property to "foster the revitalization of those parcels."
The City Council for the City of Martinez and the Contra Costa
County Board of Supervisors contend that the Martinez Marina has
"long been an icon representing Martinez' rich history in the
fishing industry." The Marina serves local and outlying
communities as the only one of two entry points to the San
Francisco Bay and Delta in Contra Costa County. According to the
city council, uses include:
Serving as the entry point for the U.S. Department of
Fish and Game, academic, and industrial research
Aiding environmental safety responses to oil refinery
activities through 11 reserved slips for the National
Response Center, CalBay Response Team, and Marina Spill
Response Corporation
Providing an access point for the U.S. Coast Guard,
Contra Costa County Sheriff's Department, and the
California Highway Patrol
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Providing a learning opportunities for the Martinez
Unified School District Environmental Studies Academy and
Diablo Valley College Maritime Biology Studies
SLC reports that silt flowing through gaps in the eastern
breakwater wall has rendered the eastern portion of the marina
unusable and significantly decreased revenue. These conditions
have "hampered the City's ability to revitalize the Marina and
prevent its closure." The SLC staff supports granting to the
City the Martinez Marina in addition to updating and
restructuring the City's existing grants.
ARGUMENTS IN OPPOSITION
None received
COMMENTS
1.Since the 1960s, SLC has been leasing the Martinez Marina and
public access parking lots to the City. As a result of these
leases, the City is obligated to pay past due loans to the
state. A working group composed of the City, the Natural
Resources Agency, and the Department of Parks and Recreation,
suggested transferring the lands to the City to both eliminate
ongoing lease payments to the state and allow the City to
manage it directly and keep that revenue.
2.For most past public land grants, SLC has only required that
excess trust revenues shall be returned to the state,
effectively leaving no revenues to the state from granted
trust lands. SB 551 of 2011 allows the state to receive 20% of
gross revenues, ensuring the state receives revenue from
granted trust lands. SLC stated that this revenue sharing
provision would encourage grantees to appropriately develop
tidelands while providing income to the General Fund and a
revenue stream for grant oversight within SLC.
3.Public land grants are typically not codified due to the level
of detail required to specify the coordinates and other
markers of grant boundaries. The language for the original
public land trust to the City of Martinez is contained in
Chapter 37, Statutes of 1851. Amendments to this agreement are
located in Ch. 130, Stats. 1917; Ch. 442, Stats. 929; Ch. 442,
Stats. 1929; Ch. 1263, Stats.1953; and Ch. 815, Stats. 1976.
Information pertinent to public land grants in the City of
Pittsburg lie in Ch. 214, Stats.1937; Ch. 1835, Stats. 1961;
Ch. 1828, Stats. 1963; and Ch. 275, Stats. 2006.
SUPPORT
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City Council for the City of Martinez
Contra Costa County Board of Supervisors
California State Lands Commission
OPPOSITION
None Received
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