BILL ANALYSIS Ó SENATE COMMITTEE ON NATURAL RESOURCES AND WATER Senator Fran Pavley, Chair 2015 - 2016 Regular Bill No: SB 1172 Hearing Date: March 29, 2016 ----------------------------------------------------------------- |Author: |Hancock | | | ----------------------------------------------------------------- ----------------------------------------------------------------- |Version: |February 18, 2016 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Matthew Dumlao | | | | ----------------------------------------------------------------- Subject: Tidelands and submerged lands: City of Albany BACKGROUND AND EXISTING LAW 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 State Lands Commission (commission) oversees the grants to ensure the use and management of the trust lands is consistent with the Public Trust Doctrine and granting statutes. In 1919, the Legislature granted the City of Albany (city) three parcels of submerged tidelands along the San Francisco Bay waterfront (Chapter 211, Statutes of 1919). These lands include what is 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. In 1977, the city adopted the Albany Waterfront Plan, which reflected the city's plans at that time for recreational-oriented development, including constructing a small craft marina and retail complex. Later that year, the Legislature amended the original trust lands grant from 1919 to require that future development is consistent with the Albany Waterfront Plan (Chapter 1223, Statutes of 1977). However, the plan was never implemented. Since 1977, policy at the local, regional, and State levels has SB 1172 (Hancock) Page 2 of ? 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 of Albany authorized city staff to work with the commission and the State 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. PROPOSED LAW This bill would repeal the city's granting statute (Chapter 211, Statutes of 1919, as amended by Chapter 1223, Statutes of 1977) to eliminate the requirement that the trust lands are used in a manner that is consistent with the obsolete Waterfront Plan from 1977. This bill would replace the outdated granting statute with a new grant of public trust lands that is consistent with the city's current waterfront improvement plans. This bill would establish several terms and conditions. 1.Require the city to submit a trust lands use plan to the commission for approval on or before January 1, 2022. The plan must describe (1) any proposed development, preservation, or other use of the trust lands; (2) the projected statewide benefit; (3) the proposed method of financing any development; (4) an estimated timetable for implementing each phase of the plan; and (5) how the city proposes to protect the resources and facilities on the trust lands, particularly from the impacts of sea level rise. 2.Require 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.Require the city to establish an accounting system to track revenue received from the trust lands and any associated SB 1172 (Hancock) Page 3 of ? 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.Require the city to get approval from the commission before spending trust revenues for any large capital improvement project ($250,000 or greater). 5.Require 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. 6.Permit the city to lease the land under certain conditions. ARGUMENTS IN SUPPORT The author stated that the 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." ARGUMENTS IN OPPOSITION None received. COMMENTS Similar bills: From time to time, cities have sought to change SB 1172 (Hancock) Page 4 of ? existing granting statutes in order to implement new plans on public trust land. For example, in 2014 the Legislature passed and the Governor signed SB 1424 (Wolk) at the request of the commission and the City of Martinez. SB 1424 repealed an existing statute and replaced it with a new statute that added an additional parcel. The terms of the grant are very similar to the terms outlined in this bill, including the requirement that the city submit a trust lands use plan, provide updates every five years, and transfer 20 percent of trust revenue to the commission. Similarly, SB 551 (DeSaulnier) was passed by the Legislature and signed by the Governor in 2011 and it contained similar conditions as outlined in this bill. Current uses of the land: The tidelands were built up over time using construction debris and have been since colonized by native and non-native vegetation. It is currently used for passive recreational activities, including hiking, dog walking, bird watching, and sightseeing. Visitors and local artists have taken advantage of the abundant construction debris to construct ephemeral works of art that include murals, sculptures, installations, and graffiti. Recently, the Albany City Council asked the Police Department to begin enforcing the city's no camping policy on the Bulb, and existing homeless encampments have been removed. Financial conditions follow current practices: 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. Potential benefits to the state and the City of Albany: In 2002, State Parks adopted the General Plan for the McLaughlin Eastshore State Park calling for a balance of open-space recreational activities and habitat conservation efforts. The Albany Neck and Bulb lands were included in the General Plan. Developments proposed in the General Plan include constructing restrooms and drinking fountains, and adding utilities near the east end of the Albany Neck. SB 1172 (Hancock) Page 5 of ? SUGGESTED AMENDMENTS None. SUPPORT California State Lands Commission (sponsor) OPPOSITION None received. -- END --