Existing law requires, commencing June 30, 2015, and at the end of every fiscal year thereafter, and subject to an exception described below, that the City of Martinez, as trustee, transmit 20 percent of all gross revenue generated from specified trust lands to the State Lands Commission for allocation by the Treasurer to the General Fund and Land Bank Fund. Existing law, in recognition of deteriorated conditions at the Martinez Marina, commencing June 30, 2015, and until June 30, 2021, authorized the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

This bill would authorize the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions at the marina, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina, commencing January 1, 2024, and until June 30, 2029.

Existing law requires, commencing June 30, 2015, and at the end of every fiscal year thereafter, and subject to an exception described below, that the City of Martinez, as trustee, transmit 20 percent of all gross revenue generated from specified trust lands to the State Lands Commission for allocation by the Treasurer to the General Fund and Land Bank Fund. Existing law, in recognition of deteriorated conditions at the Martinez Marina, commencing June 30, 2015, and until June 30, 2021, authorized the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

This bill would authorize the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions at the marina, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina, commencing January 1, 2024, and until June 30, 2029.

Existing law requires, commencing June 30, 2015, and at the end of every fiscal year thereafter, and subject to an exception described below, that the City of Martinez, as trustee, transmit 20 percent of all gross revenue generated from specified trust lands to the State Lands Commission for allocation by the Treasurer to the General Fund and Land Bank Fund. Existing law, in recognition of deteriorated conditions at the Martinez Marina, commencing June 30, 2015, and until June 30, 2021, authorized the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

This bill would authorize the commission to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions at the marina, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina, commencing January 1, 2024, and until June 30, 2033. 2029.

Existing law regulates the safe operation and navigation of vessels in ports and harbors in the state.

This bill would state the intent of the Legislature to enact subsequent legislation relating to the Martinez Marina.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 1686

Author:(Grayson)

As Amended Ver:June 26, 2023

Majority vote

SUMMARY

Extends the sunset date, until June 30, 2039, of the authorization for the State Lands Commission (SLC) to relieve the City of Martinez (City) of its obligation to transmit gross revenues to the state so the City can instead can invest in improving conditions at the Martinez Marina.

Senate Amendments

Extend the proposed sunset date extension from June 30, 2033, to June 30, 2029.

COMMENTS

In 2014, legislation was enacted granting the City four trust land parcels, included the Martinez Marina. The marina is just north of San Francisco, near the city of Martinez, along the Carquinez Strait. The marina has been in operation for more than 40 years. Over the last 17 years, the City has incurred expenses totaling $2,389,803 for dredging construction, design, and mitigation. Ultimately, in order for the marina to be economically viable, the siltation issue needed a long term solution and a plan to be adopted to guide redevelopment of the Martinez Waterfront for the benefit of the greater Contra Costa and Solano County region.

Under current law, at the end of each fiscal year, 20% of all gross revenues generated from the trust lands are required to be transmitted to SLC. Of the amount transmitted, SLC is required to allocate 80% to the Treasurer for deposit in the General Fund, and 20% to the Treasurer for deposit in the Land Bank Fund for management of SLC’s granted lands program. Due to the marina’s infrastructure needs, the revenue generated by the land had barely been enough for the City to keep pace with basic maintenance and operational costs. In recognition of those deteriorated conditions at the marina and the capital improvements needed, SB 1424 (Wolk), Chapter 628, Statutes of 2014, granted SLC the discretion to relieve the City of this obligation from June 30, 2015, until June 30, 2021.

AB 1686 extends the sunset date until June 30, 2039, to allow SLC to let the City to keep the full revenues so the city can further invest in improving conditions at the Martinez Marina.

According to the Author

Without the much-needed extra time to make the infrastructure improvements necessary for the economic viability of the Martinez Marina and greater waterfront, the City will remain in a position of having to subsidize the Marina’s costs with General Fund dollars while also diverting its already limited Marina Fund revenues away from these pressing infrastructure needs.

It is crucial that we to provide the City of Martinez that much-needed extra time for necessary improvements to the Marina to make it profitable. This will benefit the State, the City of Martinez, as well as the residents of Martinez and the surrounding communities that use Waterfront Park for recreation and the enjoyment of the Carquinez Strait.

Arguments in Support

The City of Martinez writes, "By providing the City the opportunity to defer its obligation to pay the State Lands Commission 20 percent of gross revenues generated from the Martinez trust lands from January 1, 2024 until June 30, 2033, the City will be able to devote all of its limited resources to the betterment of the marina and waterfront. These resources will also contribute to necessary design and planning studies which will position Martinez to apply for State and Federal funding opportunities."

Arguments in Opposition

None on file

FISCAL COMMENTS

According to the Senate Appropriations Committee, this bill would result in:

1. Relatively minor revenue loss, likely less than $15,000 annually, from the General Fund and the Land Bank Fund for forgone revenue-sharing and lease revenue until 2033.
2. Revenues of an unknown amount to the General Fund and Land Bank Fund after 2033 as a result of a restored revenue-sharing agreement.
3. Annual General Fund costs, likely minor, to SLC for administrative and oversight duties. The city is required to reimburse these costs.

VOTES:

ASM NATURAL RESOURCES: 11-0-0

YES: Luz Rivas, Flora, Addis, Friedman, Hoover, Mathis, Muratsuchi, Pellerin, Ward, Wood, Zbur

ASM APPROPRIATIONS: 16-0-0

YES: Holden, Megan Dahle, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Pellerin, Robert Rivas, Sanchez, Weber, Wilson

ASSEMBLY FLOOR: 75-0-5

YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wilson, Wood, Zbur, Rendon

ABS, ABST OR NV: Flora, McKinnor, Muratsuchi, Wallis, Wicks

SENATE FLOOR: 37-0-3

YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk

ABS, ABST OR NV: Dodd, Grove, Portantino

UPDATED

VERSION: June 26, 2023

CONSULTANT: Paige Brokaw / NAT. RES. / (916) 319-2092 FN: 0001228

 CONSENT  

Bill No: AB 1686

Author: Grayson (D)

Amended: 6/26/23 in Senate

Vote: 21

SENATE NATURAL RES. & WATER COMMITTEE: 11-0, 6/22/23

AYES: Min, Seyarto, Allen, Dahle, Grove, Hurtado, Laird, Limón, McGuire, Padilla, Stern

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 75-0, 5/4/23 (Consent) - See last page for vote

SUBJECT: Ports and harbors: Martinez Marina

SOURCE: City of Martinez

DIGEST:

This bill authorizes, commencing January 1, 2024, and until June 30, 2029, the State Lands Commission, at its discretion, to relieve the City of Martinez of its obligation to transmit 20 percent of all gross revenues generated from the city’s trust lands to the State Lands Commission so that the City of Martinez can take action to address deteriorated conditions at the city’s marina, as specified.

ANALYSIS:

Existing law:

1. Defines the “public trust doctrine” to mean the common law doctrine, as enunciated by the court in National Audubon Soc. v. Superior Court (1983) 33 Cal.3d 419, and other relevant judicial decisions, specifying the state’s authority as sovereign to exercise continuous supervision and control over the navigable waters of the state, the lands underlying those waters, and nonnavigable tributaries to navigable waters, including the protection of maritime or water-dependent commerce, navigation, and fisheries, and the preservation of the lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. Chapter 628, Statutes of 2014, §2.
2. Establishes the State Lands Commission (SLC) in the California Natural Resources Agency (CNRA) and grants SLC exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state, including public trust lands. Provides SLC with oversight authority over public trust lands granted by the Legislature to local public agencies. Public Resources Code (PRC) §§6009, 6101 and 6301.
3. Grants to the City of Martinez (city or the trustee), subject to specified conditions, certain parcels situated in Contra Costa County, known as the City of Martinez Waterfront Area, including the Martinez Marina. The lands are held in trust by the trustee for the benefit of the people of the state for purposes consistent with the public trust doctrine. Chapter 628, Statutes of 2014, §§2 and 3.
4. Requires the trustee to annually transmit 20 percent of all gross revenue generated from specified trust lands to SLC for allocation by the Treasurer to the General Fund and Land Bank Fund. Chapter 628, Statutes of 2014, §7.
5. Authorizes SLC, in recognition of deteriorated conditions at the Martinez Marina, until June 30, 2021, to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina. Chapter 628, Statutes of 2014, §7.
6. Requires the trustee to provide an annual statement and standardized reporting to SLC that includes a summary explaining how the trustee is using trust revenues to revitalize the marina and prevent its closure. Chapter 628, Statutes of 2014, §7.

This bill authorizes, commencing January 1, 2024, and until June 30, 2029, SLC, at its discretion, to relieve the City of Martinez of its obligation to transmit 20 percent of all gross revenues generated from the trust lands to SLC so that the trustee can take action to address the deteriorated conditions at the marina, as specified. Further, this bill makes other non-substantive changes to cleanup obsolete provisions.

Background

The Public Trust Doctrine. In general, the public trust doctrine provides that filled and unfilled tide and submerged lands and the beds of lakes, streams, and other navigable waterways (i.e. public trust lands) are to be held in trust by the state for the benefit of the people of California. The public trust doctrine began as an ancient common law doctrine and exists today as a robust and vital common law doctrine that protects the public’s right to use California’s waterways and waterfronts.

The California Legislature is the ultimate trustee of public trust lands in the state and provides direction on permissible uses of trust property in legislative grants. SLC is the steward and manager of the state’s public trust lands. SLC has direct administrative control over the state’s public trust lands and oversight authority over public trust lands granted by the Legislature to over 70 local public trust agencies.

Martinez Marina. In 1851, the City of Martinez was granted certain sovereign lands. In 2014, the previous grant and statutory amendments were repealed and a new statute was enacted granting the city four land parcels in trust, including the Martinez Marina (marina). The marina is just north of San Francisco, near the city of Martinez, along the Carquinez Strait. The marina has been in operation for more than 40 years.

In 1993, the city adopted a Marina Master Plan that called for upgrading and replacing the marina. Plans included a new boat launch ramp, deeper water channels for the boats in the marina, new bait shop, boat storage, waterfront restaurant, and more. Despite the adoption of the Master Plan, the marina remained in a deteriorated state. By 2014, only five of the six docks were usable, and of the 400 slips in the marina (parking spots for boats), only approximately 140 were in use. The condition of the docks are deteriorated due to the high levels of siltation that flowed downstream and through its breakwater since its construction in 1960. Due to the location of the marina, the dredge cycle is every three years.

Over the last 17 years, the city has incurred expenses totaling $2,389,803 for dredging construction, design, and mitigation. In fiscal year (FY) 2017-18 alone, the city incurred $772,736 in costs to dredge this small area. The siltation issue needed a long term solution and a plan to guide redevelopment of the Martinez Waterfront for the benefit of the greater Contra Costa and Solano County region.

As of November 2020, the city had completed an above water assessment of the fishing pier at a cost of $33,800. The initial assessment indicated approximately $800,000 of pier repairs were necessary to maintain the facility in a safe manner for public access. This assessment did not include any additional costs associated with repair of deteriorated pilings, which a subsequent underwater assessment notes will incur an additional cost of $28,250.

On the marina’s website, it states that progress to date includes removal of the old ferry pier, construction of the Ferry Point Plaza, new boat launch, and initial dredging of the marina entrance. The next phase will include more dredging, breakwater wall repair, and entrance reconfiguration. This is a multi-phase project that will take place over the next several years and is contingent upon the availability of public and private funding.

Comments

Martinez Marina revenues. At the end of each fiscal year, the City of Martinez must transmit 20 percent of all gross revenues generated from its trust lands to SLC. Of the amount transmitted, 80 percent is deposited into the General Fund and 20 percent is deposited into the Land Bank Fund for management of SLC’s granted lands program.

Due to the marina’s infrastructure needs, the revenue generated by the land has barely been enough for the city to keep pace with basic maintenance and operational costs. Significant silting has and continues to require costly dredging to maintain adequate channel depth to the boat launch and channel facing slips. In recognition of the deteriorated conditions at the marina and the capital improvements needed, SB 1424 (Wolk, Chapter 628, Statutes of 2014) granted SLC the discretion to relieve the city of its obligation to transmit 20 percent of the revenues from June 30, 2015, until June 30, 2021.

As a result, the city has requested the relief authorized by SB 1424 for each year it has been authorized to do so. SLC has consistently granted the relief and the city has retained the additional revenues in the Marina Service Enterprise Fund for use toward infrastructure needs and redevelopment on the marina. The city estimates needing $18 million to fully improve the marina to a condition in which only regular maintenance is required.

In 2021, the city reported $244,077 as the gross revenue received, which includes rents ($193,483), “other” ($35,796), taxes ($2,181), and interest income ($2,617). With the law allowing the city to retain the funds for improvements, in 2021, the city spent $266,707 on maintenance and repair, administration, and interest expenses. The city is conducting a dredge study and expects to spend approximately $1 million in FY 2023.

SLC’s authority to relieve the city of its obligation to remit revenues to the state expired on June 30, 2021. In 2022, the city remitted $13,510, to SLC.

Related/Prior Legislation

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 Chapter 130, Statutes of 1917; Chapter 442, Statutes of 1929; Chapter 442, Statutes of 1929; Chapter 1263, Statutes of1953; Chapter 815, Statutes of 1976; Chapter 387, Statutes of 2002; and Chapter 628, Statutes of 2014. The last bill established the revenue-sharing agreement with the state and the authority for SLC to relieve the trustee of its obligation to transmit revenues to the state until June 30, 2021.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

SUPPORT: (Verified 7/10/23)

City of Martinez (source)

OPPOSITION: (Verified 7/10/23)

None received

ARGUMENTS IN SUPPORT: According to the author, “The Martinez Marina was envisioned as the economic driver that would generate revenue for both the State and City. Unfortunately, the City has never been able to generate sufficient revenues to pay for the ongoing infrastructure challenges at the Marina and it continues to be in a deteriorated condition. These infrastructure challenges now total in the tens of millions of dollars for the necessary improvements and repairs/replacements to the Marina’s breakwater and docks.

“Additionally, the City will need to address ongoing issues related to sea level rise, which are being evaluated now and expected to also cost in the millions of dollars to address. Remitting this 20 [percent] of gross revenues obligation to the SLC is counterproductive, as all revenues generated through the Trust Lands at this time should continue to be dedicated to improving the Marina and Trust Lands.

“Without the much-needed extra time to make the infrastructure improvements necessary for the economic viability of the Martinez Marina and greater waterfront, the City will remain in a position of having to subsidize the Marina’s costs with General Fund dollars while also diverting its already limited Marina Fund revenues away from these pressing infrastructure needs.

“It is crucial that we to provide the City of Martinez that much-needed extra time for necessary improvements to the Marina to make it profitable. This will benefit the State, the City of Martinez, as well as the residents of Martinez and the surrounding communities that use Waterfront Park for recreation and the enjoyment of the Carquinez Strait.”

ASSEMBLY FLOOR: 75-0, 5/4/23

AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Villapudua, Waldron, Ward, Weber, Wilson, Wood, Zbur, Rendon

NO VOTE RECORDED: Flora, McKinnor, Muratsuchi, Wallis, Wicks

Prepared by: Catherine Baxter / N.R. & W. / (916) 651-4116

7/12/23 14:03:29

**** END ****

SENATE COMMITTEE ON NATURAL RESOURCES AND WATER

Senator Dave Min, Chair

2023 - 2024 Regular

Bill No: AB Hearing Date: June 22, 2023

Subject: Ports and harbors: Martinez Marina

BACKGROUND AND EXISTING LAW

Existing law:

1. Defines the “public trust doctrine” to mean the common law doctrine, as enunciated by the court in National Audubon Soc. v. Superior Court (1983) 33 Cal.3d 419, and other relevant judicial decisions, specifying the state’s authority as sovereign to exercise continuous supervision and control over the navigable waters of the state, the lands underlying those waters, and nonnavigable tributaries to navigable waters, including the protection of maritime or water-dependent commerce, navigation, and fisheries, and the preservation of the lands in their natural state for scientific study, open space, wildlife habitat, and water-oriented recreation. Chapter 628, Statutes of 2014, §2.
2. Establishes the State Lands Commission (SLC) in the California Natural Resources Agency (CNRA) and grants SLC exclusive jurisdiction over all ungranted tidelands and submerged lands owned by the state, including public trust lands. Provides SLC with oversight authority over public trust lands granted by the Legislature to local public agencies. Public Resources Code (PRC) §§6009, 6101 and 6301.
3. Grants to the City of Martinez (city or the trustee), subject to specified conditions, certain parcels situated in Contra Costa County, known as the City of Martinez Waterfront Area, including the Martinez Marina. The lands are held in trust by the trustee for the benefit of the people of the state for purposes consistent with the public trust doctrine. Chapter 628, Statutes of 2014, §§2 and 3.
4. Requires the trustee to annually transmit 20 percent of all gross revenue generated from specified trust lands to SLC for allocation by the Treasurer to the General Fund and Land Bank Fund. Chapter 628, Statutes of 2014, §7.
5. Authorizes SLC, in recognition of deteriorated conditions at the Martinez Marina, until June 30, 2021, to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina. Chapter 628, Statutes of 2014, §7.
6. Requires the trustee to provide an annual statement and standardized reporting to SLC that includes a summary explaining how the trustee is using trust revenues to revitalize the marina and prevent its closure. Chapter 628, Statutes of 2014, §7.

Background

The Public Trust Doctrine. In general, the public trust doctrine provides that filled and unfilled tide and submerged lands and the beds of lakes, streams, and other navigable waterways (i.e. public trust lands) are to be held in trust by the state for the benefit of the people of California. The public trust doctrine began as an ancient common law doctrine and exists today as a robust and vital common law doctrine that protects the public’s right to use California’s waterways and waterfronts.

The California Legislature is the ultimate trustee of public trust lands in the state and provides direction on permissible uses of trust property in legislative grants. SLC is the steward and manager of the state’s public trust lands. SLC has direct administrative control over the state’s public trust lands and oversight authority over public trust lands granted by the Legislature to over 70 local public trust agencies.

Martinez Marina. In 1851, the City of Martinez was granted certain sovereign lands. In 2014, the previous grant and statutory amendments were repealed and a new statute was enacted granting the city four land parcels in trust, including the Martinez Marina (marina). The marina is just north of San Francisco, near the city of Martinez, along the Carquinez Strait. The marina has been in operation for more than 40 years.

In 1993, the city adopted a Marina Master Plan that called for upgrading and replacing the marina. Plans included a new boat launch ramp, deeper water channels for the boats in the marina, new bait shop, boat storage, waterfront restaurant, and more. Despite the adoption of the Master Plan, the marina remained in a deteriorated state. By 2014, only five of the six docks were usable, and of the 400 slips in the marina (parking spots for boats), only approximately 140 were in use. The condition of the docks are deteriorated due to the high levels of siltation that flowed downstream and through its breakwater since its construction in 1960. Due to the location of the marina, the dredge cycle is every three years.

Over the last 17 years, the city has incurred expenses totaling $2,389,803 for dredging construction, design, and mitigation. In fiscal year (FY) 2017-18 alone, the city incurred $772,736 in costs to dredge this small area. The siltation issue needed a long term solution and a plan to guide redevelopment of the Martinez Waterfront for the benefit of the greater Contra Costa and Solano County region.

As of November 2020, the city had completed an above water assessment of the fishing pier at a cost of $33,800. The initial assessment indicated approximately $800,000 of pier repairs were necessary to maintain the facility in a safe manner for public access. This assessment did not include any additional costs associated with repair of deteriorated pilings, which a subsequent underwater assessment notes will incur an additional cost of $28,250.

On the marina’s website, it states that progress to date includes removal of the old ferry pier, construction of the Ferry Point Plaza, new boat launch, and initial dredging of the marina entrance. The next phase will include more dredging, breakwater wall repair, and entrance reconfiguration. This is a multi-phase project that will take place over the next several years and is contingent upon the availability of public and private funding.

PROPOSED LAW

This bill would authorize, commencing January 1, 2024, and until June 30, 2033, SLC, at its discretion, to relieve the City of Martinez of its obligation to transmit 20 percent of all gross revenues generated from the trust lands to SLC so that the trustee can take action to address the deteriorated conditions at the marina, as specified.

ARGUMENTS IN SUPPORT

According to the author, “The Martinez Marina was envisioned as the economic driver that would generate revenue for both the State and City. Unfortunately, the City has never been able to generate sufficient revenues to pay for the ongoing infrastructure challenges at the Marina and it continues to be in a deteriorated condition. These infrastructure challenges now total in the tens of millions of dollars for the necessary improvements and repairs/replacements to the Marina’s breakwater and docks.

Additionally, the City will need to address ongoing issues related to sea level rise, which are being evaluated now and expected to also cost in the millions of dollars to address. Remitting this 20 [percent] of gross revenues obligation to the SLC is counterproductive, as all revenues generated through the Trust Lands at this time should continue to be dedicated to improving the Marina and Trust Lands.

Without the much-needed extra time to make the infrastructure improvements necessary for the economic viability of the Martinez Marina and greater waterfront, the City will remain in a position of having to subsidize the Marina’s costs with General Fund dollars while also diverting its already limited Marina Fund revenues away from these pressing infrastructure needs.

It is crucial that we to provide the City of Martinez that much-needed extra time for necessary improvements to the Marina to make it profitable. This will benefit the State, the City of Martinez, as well as the residents of Martinez and the surrounding communities that use Waterfront Park for recreation and the enjoyment of the Carquinez Strait.”

According to the sponsor, the City of Martinez, “By providing the City the opportunity to defer its obligation to pay [SLC] 20 percent of gross revenues generated from the Martinez trust lands from January 1, 2024[,] until June 30, 2033, the City will be able to devote all of its limited resources to the betterment of the marina and waterfront. These resources will also contribute to necessary design and planning studies, which will position Martinez to apply for State and Federal funding opportunities. For instance, the City recently spent approximately $160,000 for professional marine engineering assistance for an evaluation of required repairs and design of the City’s municipal fishing pier and was able to parlay that assessment into a $2.547 million federal appropriation awarded in President Biden’s omnibus spending bill.

The City’s marina remains an area of high priority. The most significant need has been identified as the eastern seawall, the deterioration of which has led to increased siltation of our marina and contributed to degradation of the docks. Estimates prepared by consulting firm AnchorQEA show the necessary investments will cost upwards of $18 million, comprised of approximately $6 million for various repairs to the breakwater/seawall areas (a small portion of which is affixed to the municipal fishing pier and will be addressed through the federal appropriation award), and $10 to $12 million for replacement of the marina docks. The City intends to utilize its resources to prioritize and address the areas identified as highest need and therefore plans to fund and commence a design study on the eastern seawall to our marina in our Fiscal Year 2023-24 Capital Improvement Plan budget to position us for potential funding opportunities. Our contract marina operator has expressed an interest in replacing the docks if the City is able to repair or replace the eastern seawall.”

ARGUMENTS IN OPPOSITION

None received.

COMMENTS

Martinez Marina revenues. At the end of each fiscal year, the City of Martinez must transmit 20 percent of all gross revenues generated from its trust lands to SLC. Of the amount transmitted, 80 percent is deposited into the General Fund and 20 percent is deposited into the Land Bank Fund for management of SLC’s granted lands program.

Due to the marina’s infrastructure needs, the revenue generated by the land has barely been enough for the city to keep pace with basic maintenance and operational costs. Significant silting has and continues to require costly dredging to maintain adequate channel depth to the boat launch and channel facing slips. In recognition of the deteriorated conditions at the marina and the capital improvements needed, SB 1424 (Wolk, Chapter 628, Statutes of 2014) granted SLC the discretion to relieve the city of its obligation to transmit 20 percent of the revenues from June 30, 2015, until June 30, 2021.

As a result, the city has requested the relief authorized by SB 1424 for each year it has been authorized to do so. SLC has consistently granted the relief and the city has retained the additional revenues in the Marina Service Enterprise Fund for use toward infrastructure needs and redevelopment on the marina. The city estimates needing $18 million to fully improve the marina to a condition in which only regular maintenance is required.

In 2021, the city reported $244,077 as the gross revenue received, which includes rents ($193,483), “other” ($35,796), taxes ($2,181), and interest income ($2,617). With the law allowing the city to retain the funds for improvements, in 2021, the city spent $266,707 on maintenance and repair, administration, and interest expenses. The city is conducting a dredge study and expects to spend approximately $1 million in FY 2023.

SLC’s authority to relieve the city of its obligation to remit revenues to the state expired on June 30, 2021. In 2022, the city remitted $13,510, to SLC.

The sunset date. This bill reauthorizes SLC, from January 1, 2024, until June 30, 2033, to relieve the city of its obligation to remit 20 percent of the revenues from the Martinez Marina to the state to allow the city to invest this funding to improve conditions at the marina, including dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

Committee amendment. 9.5 years is longer than the typical timeframe the Legislature grants for authorities with a sunset. Five years is often standard to allow all the parties, including the Legislature, to review the arrangement and assess the need for any updates or changes after a reasonable amount of time of implementation. The Committee may wish to consider amending the bill to shorten the sunset to five years. See Amendments.

Previous legislation. 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. 1929; Ch. 442, Stats. 1929; Ch. 1263, Stats.1953; Ch. 815, Stats. 1976; Ch. 387, Stats. 2002; and Ch. 628, Stats. 2014. The last bill established the revenue-sharing agreement with the state and the authority for SLC to relieve the trustee of its obligation to transmit revenues to the state until June 30, 2021.

AMENDMENTS

Amend section 7(d)(2) as follows:

(d)(2) In recognition of the deteriorated conditions at the marina, commencing June 30, 2015, and until June 30, 2021, and commencing January 1, 2024, and until June 30, 2033, commencing January 1, 2024, and until June 30, 2029, the commission may, at its discretion, relieve the trustee of its obligation to transmit the gross revenues as specified in paragraph (1) so that the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

SUPPORT

City of Martinez (sponsor)

OPPOSITION

None received.

-- END --

Date of Hearing: April 26, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 1686

Author:(Grayson) – As Amended Ver:March 16, 2023

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill extends, until June 30, 2033, the sunset date for the authorization for the State Lands Commission (SLC) to relieve the City of Martinez (city) of its obligation to transmit gross revenues to the state so the city can instead invest in revitalizing the Martinez Marina (marina).

FISCAL EFFECT:

1) Relatively minor revenue loss, likely less than $15,000 annually, from the General Fund and the Land Bank Fund for forgone revenue-sharing and lease revenue until 2033.

2) Revenues of an unknown amount to the General Fund and Land Bank Fund after 2033 as a result of a restored revenue-sharing agreement. The amount of these revenues will likely be significant; however, because the state would not realize the revenues for many years, this bill is not a candidate for the committee’s suspense file, consistent with committee rules and practice.

3) Annual General Fund costs, likely minor, to SLC for administrative and oversight duties. The city is required to reimburse these costs.

COMMENTS:

1) Purpose. According to the author:

The Martinez Marina was envisioned as the economic driver that would generate revenue for both the State and City. Unfortunately, the City has never been able to generate sufficient revenues to pay for the ongoing infrastructure challenges at the Marina and it continues to be in a deteriorated condition…Remitting this 20% of gross revenues obligation to the SLC is counterproductive, as all revenues generated through the Trust Lands at this time should continue to be dedicated to improving the Marina and Trust Lands.

2) Background. According to SLC, for more than 100 years, the Legislature has enacted more than 300 statutes granting sovereign public trust lands to over 80 local municipalities (referred to as grantees or trustees) so the lands can be managed locally for the benefit of the people of California. While these trust lands are managed locally, SLC has oversight authority to ensure local trustees are complying with the Public Trust Doctrine and the applicable granting statutes.

The city was granted certain sovereign lands in trust in 1851. In 2014, the previous grant and statutory amendments were repealed and a new statute was enacted granting the city four trust land parcels, which included the marina. For years, the marina has been in a deteriorated state and has struggled to be fiscally stable, primarily due to high levels of silt that flows downstream and through its breakwater. Over the last 18 years, the city has incurred expenses totaling approximately $2.4 million for dredging construction, design, and mitigation. According to the city, it continues to make investments to maintain the marina’s infrastructure and develop solutions.

Under current law, at the end of each fiscal year, the city is required to transmit 20% of all gross revenues generated from its granted lands to SLC, of which 80% is deposited in the state’s General Fund and 20% is deposited in the Land Bank Fund for management of SLC’s granted lands program. Due to the marina’s infrastructure needs, the revenue generated by the land had barely been enough for the city to keep pace with basic maintenance and operational costs. In response, SB 1424 (Wolk), Chapter 628, Statutes of 2014, granted SLC the discretion to relieve the city of its revenue-sharing obligation from June 30, 2015, until June 30, 2021.

As a result, the city requested relief authorized by SB 1424 each year they were authorized to do so. SLC granted the city relief, and the city maintains the additional revenues in the Marina Service Enterprise Fund and uses them toward infrastructure needs and redevelopment on the Marina. As noted earlier, the permission for SLC to relieve the city of its obligation to remit revenues expired on June 30, 2021. In 2022, the city remitted the full gross revenues, in total $13,510, to SLC.

This bill extends the expired sunset date until June 30, 2033, so the city can further invest in improving conditions at the marina. The city estimates fully improving the marina to a condition in which only regular maintenance is required will cost approximately $18 million, at which point the General Fund may see higher revenues.

Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081

Date of Hearing: April 10, 2023

ASSEMBLY COMMITTEE ON NATURAL RESOURCES

Luz Rivas, Chair

ABPCA Bill Id:AB 1686 (

Author:Grayson) – As Amended Ver:March 16, 2023

SUBJECT: Ports and harbors: Martinez Marina

SUMMARY: Extends the sunset date, until June 30, 2033, of the authorization for the State Lands Commission (SLC) to relieve the City of Martinez (City) of its obligation to transmit gross revenues to the state so the City can instead can invest in improving conditions at the Martinez Marina.

EXISTING LAW:

1. Requires that the City, as trustee, annually transmit 20% of all gross revenue generated from specified trust lands to SLC for allocation by the Treasurer to the General Fund and Land Bank Fund.
2. Authorizes SLC, in recognition of deteriorated conditions at the Martinez Marina, until June 30, 2021, to relieve the trustee of its obligation to transmit those gross revenues so the trustee can take action to address those conditions, including the dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.
3. Requires the City, as the trustee, to provide an annual statement and standardized reporting form that includes a summary explaining how it is using trust revenues to revitalize the marina and prevent its closure.

FISCAL EFFECT: Unknown

COMMENTS:

1. Author’s statement:

The Martinez Marina was envisioned as the economic driver that would generate revenue for both the State and City. Unfortunately, the City has never been able to generate sufficient revenues to pay for the ongoing infrastructure challenges at the Marina and it continues to be in a deteriorated condition. These infrastructure challenges now total in the tens of millions of dollars for the necessary improvements and repairs/replacements to the Marina’s breakwater and docks.

Additionally, the City will need to address ongoing issues related to sea level rise which are being evaluated now and expected to also cost in the millions of dollars to address. Remitting this 20% of gross revenues obligation to the SLC is counterproductive, as all revenues generated through the Trust Lands at this time should continue to be dedicated to improving the Marina and Trust Lands.

Without the much-needed extra time to make the infrastructure improvements necessary for the economic viability of the Martinez Marina and greater waterfront, the City will remain in a position of having to subsidize the Marina’s costs with General Fund dollars while also diverting its already limited Marina Fund revenues away from these pressing infrastructure needs.

It is crucial that we to provide the City of Martinez that much-needed extra time for necessary improvements to the Marina to make it profitable. This will benefit the State, the City of Martinez, as well as the residents of Martinez and the surrounding communities that use Waterfront Park for recreation and the enjoyment of the Carquinez Strait.

1. Martinez Marina. The City was granted certain sovereign lands in trust in 1851. In 2014, the previous grant and statutory amendments were repealed and a new statute was enacted granting the City four trust land parcels, included the marina.

The marina is just north of San Francisco, near the city of Martinez, along the Carquinez Strait. The marina has been in operation for more than 40 years.

In 1993, a Marina Master Plan was adopted by the City that called for upgrading and replacing the marina. Plans included a new boat launch ramp, deeper water channels for the boats in the marina, new bait shop, boat storage, waterfront restaurant, and more.

Despite the adoption of the Master Plan, the marina remained in a deteriorated state. By 2014, only five of the six docs were usable, and of the 400 slips in the marina (parking spots for boats), only approximately 140 were in use. The condition of the docks are deteriorated due to the high levels of siltation that flowed downstream and through its breakwater since its construction in 1960. Due to the location of the marina, the dredge cycle is every three years.

Over the last 17 years, the City has incurred expenses totaling $2,389,803 for dredging construction, design, and mitigation. In fiscal year (FY) 2017-18 alone, the City incurred costs of $772,736 to dredge this small area. Ultimately, in order for the marina to be economically viable, the siltation issue needed a long term solution and a plan to be adopted to guide redevelopment of the Martinez Waterfront for the benefit of the greater Contra Costa and Solano County region.

As of November 2020, the City had completed an above water assessment of the fishing pier at a cost of $33,800. The initial assessment indicated approximately $800,000 of pier repairs were necessary to maintain the facility in a safe manner for public access. This assessment did not include any additional costs associated with repair of deteriorated pilings, which a subsequent underwater assessment notes will be an additional cost of $28,250.

On the marina’s website, it states that progress to date includes removal of the old ferry pier, construction of the Ferry Point Plaza, new boat launch, and initial dredging of the marina entrance. The next phase will include more dredging, break water wall repair, and entrance reconfiguration. This is a multi-phase project that will take place over the next several years and is contingent upon the availability of public and private funding.

1. Current law. At the end of each fiscal year, 20% of all gross revenues generated from the trust lands are required to be transmitted to SLC. Of the amount transmitted, SLC is required to allocate 80% to the Treasurer for deposit in the General Fund, and 20% to the Treasurer for deposit in the Land Bank Fund for management of SLC’s granted lands program.

Due to the marina’s infrastructure needs, the revenue generated by the land had barely been enough for the City to keep pace with basic maintenance and operational costs. In recognition of those deteriorated conditions at the marina and the capital improvements needed, SB 1424 (Wolk, Chapter 628, Statutes of 2014) granted SLC the discretion to relieve the City of this obligation from June 30, 2015, until June 30, 2021.

As a result, the City has requested relief authorized by SB 1424 each year they have been authorized to do so. The permission was granted, the City maintains the additional revenues in the Marina Service Enterprise Fund and uses them toward infrastructure needs and redevelopment on the Marina.

The most recent request, posted November 12, 2020, explains that significant silting continues to require costly dredging to maintain adequate channel depth to the boat launch and channel facing slips.

In 2021, Martinez reported $244,077 as the gross revenue received, which includes rents ($193,483), “other” ($35,796), taxes ($2,181), and interest income ($2,617). With the law allowing the City to retain the funds for improvements, in 2021, the City spent $266,707 on maintenance and repair, administration, and interest expenses. The City is conducting a dredge study and expects to spend approximately $1 million in FY 2023.

The permission for SLC to relieve the City for remitting revenues to the state expired on June 30, 2021, so Martinez has been required to transmit 20% of the gross revenues to SLC since then. In 2022, the City remitted the full gross revenues, in total $13,510, to SLC.

1. Giving Martinez more time. AB 1686 extends the sunset date until June 30, 2033, to allow SLC to let the City to keep the full revenues so the city can further invest in improving conditions at the Martinez Marina, including dredging of sediment to restore adequate depth for launching, berthing, and safe navigation at the marina.

The City estimates that $18 million is what is needed to fully improve the marina to a condition in which only regular maintenance is required.

REGISTERED SUPPORT / OPPOSITION:

Support

City of Martinez

Opposition

None on file

Analysis Prepared by: Paige Brokaw / NAT. RES. /