BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1424|
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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 Le�n, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SENATE FLOOR : 37-0, 5/29/14
AYES: Anderson, Beall, Berryhill, Block, Cannella, Corbett,
Correa, De Le�n, 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 : (Per Assembly Natural Resources Committee analysis of
5/28/14--Unable to reverify at time of writing)
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
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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.
ASSEMBLY FLOOR : 78-0, 8/14/14
AYES: Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,
Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian
Calderon, Campos, Chau, Ch�vez, 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. P�rez, V.
Manuel P�rez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas,
Rodriguez, Salas, Skinner, Stone, Ting, Wagner, Waldron,
Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NO VOTE RECORDED: Roger Hern�ndez, Vacancy
RM:e 8/15/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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