BILL ANALYSIS                                                                                                                                                                                                    




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          |SENATE RULES COMMITTEE            |                       SB 1172|
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                                      CONSENT 


          Bill No:  SB 1172
          Author:   Hancock (D) 
          Introduced:2/18/16  
          Vote:     27 

           SENATE NATURAL RES. & WATER COMMITTEE:  9-0, 3/29/16
           AYES:  Pavley, Stone, Allen, Hertzberg, Hueso, Jackson,  
            Monning, Vidak, Wolk

           SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           SUBJECT:   Tidelands and submerged lands:  City of Albany


          SOURCE:    Author


          DIGEST:  This bill repeals the existing granting statute to the  
          City of Albany to eliminate the requirement that the trust lands  
          be used in a manner consistent with the obsolete Waterfront Plan  
          from 1977.  This bill replaces that outdated granting statute  
          with a new grant of public trust lands that is consistent with  
          the city's current waterfront improvement plans.


          ANALYSIS:  


          Existing law:

          1)Grants the City of Albany (city) three parcels of submerged  
            tidelands along the San Francisco Bay waterfront for the  
            establishment, improvement, and conduct of a harbor and other  
            structures and utilities necessary for the promotion of  
            commerce and navigation.








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          2)Amends the original granting statute to require future  
            developments be consistent with the Albany Waterfront Plan of  
            1977, which permits recreation-oriented development, including  
            a small craft marina and retail complex.


          This bill:


          1)Requires the city to submit a trust lands use plan to the  
            State Lands Commission (commission) for approval on or before  
            January 1, 2022.  The plan must describe (a) any proposed  
            development, preservation, or other use of the trust lands;  
            (b) the projected statewide benefit; (c) the proposed method  
            of financing any development; (d) an estimated timetable for  
            implementing each phase of the plan; and (e) how the city  
            proposes to protect the resources and facilities on the trust  
            lands, particularly from the impacts of sea level rise.

          2)Requires the city to submit a report to the commission on or  
            before 
          September 30, 2022, and every five years thereafter, describing  
            how the trust lands have been used.

          3)Requires the city to establish an accounting system to track  
            revenue received from the trust lands and any associated  
            assets. Any revenue received must be kept separate from other  
            city money and can only be spent in a way that is consistent  
            with this bill.

          4)Requires the city to get approval from the commission before  
            spending trust revenues for any large capital improvement  
            project ($250,000 or greater).

          5)Requires 20 percent of trust revenue be transmitted to the  
            commission. Of this amount transmitted, 80 percent will be put  
            in the General Fund and the remaining 20 percent will be  
            deposited in the Land Bank Fund pursuant to Division 7  
            (commencing with Section 8600) of the Public Resources Code.   
            Money in the Land Bank Fund is used to manage the commission's  
            granted lands program. 








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          6)Permits the city to lease the land under certain conditions.

          Background
          
          Since 1850, the California Legislature has periodically granted  
          public trust lands to local jurisdictions to hold and manage  
          according to various terms and conditions.  These lands remain  
          subject to the Public Trust Doctrine and the commission oversees  
          the grants to ensure the use and management of the trust lands  
          is consistent with the Public Trust Doctrine and granting  
          statutes. 

          Chapter 211 of the Statutes of 1919 granted the city three  
          parcels of submerged tidelands along the San Francisco Bay  
          waterfront.  These lands include what is now known as the Albany  
          Neck and Bulb portion of the waterfront. The Neck and Bulb are  
          located at the base of Buchanan Street and protrude into the  
          bay. That granting statute was later amended (Chapter 1223,  
          Statutes of 1977) to require future development is consistent  
          with the Albany Waterfront Plan.  The Albany Waterfront Plan  
          reflected the city's plans at that time for recreation-oriented  
          development, including constructing a small craft marina and  
          retail complex. However, the plan was never implemented.

          Since 1977, policy at the local, regional, and state levels has  
          shifted away from commercial waterfront development on the  
          publically-owned portion of the Albany waterfront. The city is  
          currently in the process of developing a new plan for improving  
          the Albany Neck and Bulb area and transitioning the area to  
          become part of the McLaughlin Eastshore State Park.  The  
          McLaughlin Eastshore State Park includes tidelands and upland  
          property along 8.5 miles of shoreline extending from the City of  
          Richmond in the north to Emeryville and Oakland in the south.  
          The Albany Bulb and Neck is currently open to the public for  
          recreational uses.

          At its December 7, 2015 city council meeting, the city  
          authorized city staff to work with the commission and the  
          Legislature to draft legislation updating the terms of the  
          tidelands grant on the city-owned portion of the Albany  
          waterfront.  This bill is the result of those efforts.








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


          SUPPORT:   (Verified4/11/16)


          California State Lands Commission
          City of Albany


          OPPOSITION:   (Verified4/11/16)


          None received
          
          ARGUMENTS IN SUPPORT:      The author stated that this bill is  
          designed to assist the "City of Albany with managing and  
          improving its waterfront."

          According to the State Lands Commission, "?the city is in the  
          process of developing a new plan to improve its waterfront and  
          transition the Neck and Bulb area to become part of the  
          McLaughlin Eastshore State Park.  The city's legislative  
          granting statute, however, is inconsistent with the city's  
          current waterfront improvement plans. SB 1172 eliminates the  
          requirement that the trust lands are used in a manner that is  
          consistent with the obsolete Waterfront Plan.  The bill requires  
          the city to submit a new land use plan and sea-level rise  
          analysis to the commission for approval.  The bill also  
          modernizes non-discrimination language in the granting statute  
          to reflect current law, aligns the city's financial reporting  
          requirements with current law, and deletes various obsolete  
          provisions." 














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          Prepared by:Matthew Dumlao / N.R. & W. / (916) 651-4116
          4/13/16 15:56:47


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