BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                 UNFINISHED BUSINESS


          Bill No:  SB 1424
          Author:   Wolk (D), et al.
          Amended:  6/18/14
          Vote:     27


           SENATE NATURAL RESOURCES AND WATER COMMITTEE  :  9-0, 4/22/14
          AYES:  Pavley, Cannella, Evans, Fuller, Hueso, Jackson, Lara,  
            Monning, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/14
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg

           SENATE FLOOR  :  37-0, 5/29/14
          AYES:  Anderson, Beall, Berryhill, Block, Cannella, Corbett,  
            Correa, De León, DeSaulnier, Evans, Fuller, Gaines, Galgiani,  
            Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara,  
            Leno, Lieu, Liu, Mitchell, Monning, Morrell, Nielsen, Padilla,  
            Pavley, Roth, Steinberg, Torres, Vidak, Walters, Wolk, Wyland
          NO VOTE RECORDED:  Calderon, Wright, Yee

           ASSEMBLY FLOOR  :  78-0, 8/14/14 (Consent) - See last page for  
            vote


           SUBJECT  :    State property:  tidelands transfer:  City of  
          Martinez

           SOURCE  :     City of Martinez


           DIGEST  :    This bill grants state trust lands to the City of  
          Martinez (City) in exchange for a revenue-sharing agreement with  
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          the state.

           Assembly Amendments  delete statement requirements the City must  
          file annually with the California State Lands Commission (SLC)  
          for approval of trust revenues and expenditures; delete the  
          requirement the statement must be received by December 31, of  
          each year; and make clarifying changes. 

           ANALYSIS  :    

          Existing law:

          1.Defines under the Public Trust Doctrine, 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.

          2.Grants the SLC exclusive jurisdiction over all tidelands and  
            submerged lands including public trust lands, and also grants  
            the SLC the authority to grant these lands to local  
            jurisdictions, as specified.

          3.Creates under the Land Bank Fund (Fund) in the State Treasury  
            and continuously appropriates monies in the Fund to the SLC  
            for certain public trust purposes.  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 Fund may receive revenues for mitigation, title  
            settlements, or the management and improvement of public trust  
            property held by the SLC.

          This bill:

          1.Repeals the 1976 public land grant to the City and establishes  
            a new 49-year grant for all parcels, including the Martinez  
            Marina.


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          2.Authorizes the City to lease trust lands under specified  
            conditions.

          3.Requires that the City submit to the 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.Requires that the City to file a statement of all trust  
            revenues, expenditures, and outstanding obligations annually  
            to the SLC.  Requires the statement to include a summary  
            explaining how the City is using trust revenues to revitalize  
            the Martinez Marina and prevent its closure.

          5.Requires the City to file a specified document for approval  
            with the SLC before spending more than $250,000 on a single  
            project on trust lands.

          6.Requires, commencing on June 30, 2015, and at the end of every  
            fiscal year, the remaining 20% of gross revenue shall be  
            transmitted to the 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 Fund.

          7.Provides that, in recognition of the deteriorated conditions  
            of the Martinez Marina, commencing June 30, 2015, and until  
            June 30, 2021, the SLC may, at its discretion, relieve the  
            City of its obligation to transmit the gross revenues, as  
            specified, so that the City can take action to address those  
            conditions, including the dredging of sediment to restore  
            adequate depth for launching, berthing, and safe navigation at  
            the Martinez Marina.

           Background
           
          Since 1851, the City has held title to state-granted lands in  
          the Straights of Carquinez in Contra Costa County.  SB 1876  
          (Chapter 815, Statutes of 1976) established the 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  

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          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, 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 Division of  
          Boating and Waterways for projects related to the operation and  
          maintenance of the Martinez 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, the office of  
          Assemblymember Bonilla, the Natural Resources Agency, the  
          Department of Finance, the Department of Parks and Recreation,  
          the SLC, and the City (locals and the mayor) met to discuss the  
          future of operations at the Martinez Marina.  This small working  
          group determined that the best way to resolve the financial  
          issues would involve transferring title of the Martinez Marina  
          to the City.  The City wishes to use the area to pursue land and  
          water-based commercial redevelopment projects.

          SB 551 (DeSaulnier, Chapter 422, Statutes of 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 the SLC for allocation  
          by the State Treasurer.  Of the monies allocated by the  
          Treasurer, 80% would be deposited in the General Fund and 20% to  
          the Fund for management of the SLC's granted lands program.  The  
          bill also required the City of Pittsburg to submit to the SLC a  
          trust lands use plan and a report by September 30, 2022, and  
          every five years thereafter on uses of trust lands, trust  
          revenues, and expenditures.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:


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           Unknown costs, likely a maximum of $15,000 annually from the  
            General Fund and the Fund for forgone revenue-sharing and  
            lease revenue until 2021.

           Unknown revenues to the General Fund and the Fund after 2021  
            as a result of the revenue-sharing agreement.

           Annual costs, likely minor, to the General Fund to the SLC for  
            administrative and oversight duties.  These costs are to be  
            reimbursed by the City.

           SUPPORT  :   (Verified  8/15/14)

          City of Martinez (source)
          California State Lands Commission
          City Council for the City of Martinez 
          Contra Costa County Board of Supervisors 

           ARGUMENTS IN SUPPORT  :    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, the Contra  
            Costa County Sheriff's Department, and the California Highway  
            Patrol.

           Providing a learning opportunity for the Martinez Unified  
            School District Environmental Studies Academy and Diablo  
            Valley College Maritime Biology Studies.

          The SLC reports that silt flowing through gaps in the eastern  
          breakwater wall has rendered the eastern portion of the Marina  

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          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.

           ASSEMBLY FLOOR  :  78-0, 8/14/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian  
            Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley,  
            Dababneh, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,  
            Gorell, Gray, Grove, Hagman, Hall, Harkey, Holden, Jones,  
            Jones-Sawyer, Levine, Linder, Logue, Lowenthal, Maienschein,  
            Mansoor, Medina, Melendez, Mullin, Muratsuchi, Nazarian,  
            Nestande, Olsen, Pan, Patterson, Perea, John A. Pérez, V.  
            Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,  
            Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,  
            Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Roger Hernández, Vacancy


          RM:e  8/15/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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