Existing law provides that the Department of Transportation has full possession and control of state highways and associated property. Existing law provides for the department to dispose of property that is no longer needed for highway purposes on terms, standards, and conditions established by the California Transportation Commission. Section 10 of Article XIX of the California Constitution authorizes the Legislature, by statute, with respect to surplus state property located in the coastal zone and acquired with revenues restricted by Article XIX to transportation purposes, to authorize the transfer of that property to the Department of Parks and Recreation, the Department of Fish and Wildlife, the Wildlife Conservation Board, or the State Coastal Conservancy for specified purposes for a consideration at least equal to the propertys purchase price.

This bill would require the department to sell and transfer certain surplus state property it owns in the City of Pacifica to the Department of Parks and Recreation for state park purposes. The bill would make various findings and declarations in that regard.

This bill would make legislative findings and declarations as to the necessity of a special statute for the surplus state property in the City of Pacifica.

Date of Hearing: May 10, 2023

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Chris Holden, Chair

ABPCA Bill Id:AB 612

Author:(Berman) – As Introduced Ver:February 9, 2023

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

SUMMARY:

This bill requires the Department of Transportation (Caltrans) to sell and transfer specified surplus state property it owns in the City of Pacifica to the Department of Parks and Recreation (State Parks).

Specifically, this bill, among other things:

1. Requires Caltrans to declare the Pedro Point excess property identified in “Director’s Deed DD–028801–01–01”, also known as the “Disney Lot,” is surplus state property acquired by the expenditure of tax revenues and located in the coastal zone, as defined by the state constitution.
2. Requires Caltrans to sell and transfer the specified surplus state property to State Parks for state park purposes.
3. States legislative intent that after Caltrans sells the surplus state property to State Parks, State Parks must include this area in the management of Pacifica State Beach for park purposes consistent with the City of Pacifica Certified Local Coastal Program, until the property changes ownership to a local agency for purposes consistent with trailhead parking adjacent to the California Coastal Trail.

FISCAL EFFECT:

1) Revenue loss of an unknown amount to the General Fund, to the extent the Pedro Point surplus state property is transferred to State Parks at a price that reflects less than the property’s current fair market value. The exact loss is unknown at this time because the fair market value of this property may change over time, and the actual sale price to State Parks is also unknown at this time. As noted below, the property was acquired in 1963 for $56,680 and was most recently appraised in 2020 for $756,060.

2) Staff costs of an unknown but relatively minor amount, likely between $5,000 and $10,000, for the Department of General Services (DGS) to manage the transaction. These costs would be covered by Caltrans and State Parks.

COMMENTS:

1) Purpose. According to the author:

California has longstanding goals of helping more people access and enjoy the coastal outdoors and sustaining local economies along the length of California’s coast and around San Francisco Bay. This bill supports those goals by expanding public access to Pacifica State Beach in the near-term, and in the longer term increasing public access to the Coastal Trail. AB 612 facilitates the transfer of an excess Caltrans property to the California Department of Parks and Recreation, and eventually to the City of Pacifica to redevelop it for public use.

2) Background. The California Coastal Trail (CCT) is an integrated network of trails that, when completed, will provide a multimodal opportunity to walk and bike the length of California’s 1,230-mile-long coast. ACR 20 (Pavley), Resolution Chapter 99, Statutes of 2001, declared the CCT an official state trail and found that completion of the CCT is an integral part of the state’s responsibility to provide public coastal access for all in perpetuity. Today, roughly 70% of the CCT is complete, and the State Coastal Conservancy (SCC) has been tasked by the Legislature to complete it in collaboration with Caltrans, State Parks, and the Coastal Commission. SCC pursues this mandate in part by awarding grants to public agencies and nonprofit organizations to acquire land rights, and to develop, operate, or manage lands for public access to and along the coast.

In the City of Pacifica, the CCT provides a scenic corridor with views of the coast and State Route 1, and is popular for a variety of recreational pursuits, including hiking and biking. The city would like to acquire an excess Caltrans parcel in the Pedro Point area to create, in the near-term, additional public beach parking associated with Pacifica State Beach located approximately 800 feet to the northeast. The author maintains that parking demands of beach-goers to Pacifica State Beach and the CCT exceed available parking and as a result, visitors park on nearby residential streets, straining local communities and causing beachgoers to make the dangerous Highway 1 crossing. In the longer-term, the city would like to also use the property as CCT trailhead parking once the CCT is constructed into and through the Pedro Point Headlands. The future use of this property as CCT trailhead parking would support prior state expenditures of $304,535 awarded to the City of Pacifica through a Habitat Conservation Fund (HCF) grant to partially fund the acquisition of five acres in the Pedro Point Headlands for future CCT alignment. The parcel acquired with HCF funds is located approximately 300 feet south of the Caltrans parcel in question.

The parcel identified in Caltrans’ “Director’s Deed DD-028801-01-01” is approximately 15,121 square feet and is identified by Caltrans as surplus state property. Current law requires if Caltrans were to sell the land to the City of Pacifica, it be sold at or above the fair market price of $756,060. Pacifica is unable to afford the land at this price. However, the California Constitution allows the Legislature to authorize the transfer of surplus state property located in the coastal zone at a price no less than the price the state paid when it acquired the property. Transfer recipients are limited to State Parks for state park purposes, the Department of Fish and Wildlife for the protection and preservation of fish and wildlife habitat, the Wildlife Conservation Board to further its goals, and SCC for the preservation of agricultural lands.

This bill proposes a process for State Parks to acquire the land for state park purposes at Caltrans’ original acquisition cost in 1963, which was $56,680. This type of acquisition mechanism has been utilized previously in limited circumstances. For example, SB 792 (Sher), Chapter 390, Statutes of 2004, allowed Caltrans to sell and transfer property in the Martini Creek Bypass Alignment to State Parks. It is not clear if Caltrans or State Parks is allowed to sell the property to the City of Pacifica at below fair market value without explicit legislative authorization.

Finally, State Parks notes the property transfer authorized in this bill would not involve a true "sale" of land or transfer of funds between agencies. According to State Parks, Caltrans and State Parks regularly exchange or transfer jurisdiction of lands, as needed, to adjust boundaries between state parks and the state highway system. Since the value of land has been relatively equal between the two agencies over the long-term, State Parks and Caltrans have been keeping track of individual transfers by using a debt or credit system, sometimes referred to as a "land bank", in lieu of transferring funds for each transaction. Assuming this process is used, the value of the Pedro Point property would likely result in a credit to Caltrans.

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

Date of Hearing: April 18, 2023

ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE

Rebecca Bauer-Kahan, Chair

ABPCA Bill Id:AB 612 (

Author:Berman) – As Introduced Ver:February 9, 2023

SUBJECT: State parks: Pedro Point

SUMMARY: Requires the Department of Transportation (Caltrans) to sell and transfer specified surplus state property it owns in the City of Pacifica to the Department of Parks and Recreation (State Parks). Specifically, this bill:

1. Requires Caltrans to declare that the Pedro Point excess property identified in Director’s Deed DD–028801–01–01, also known as the “Disney Lot,” is surplus state property acquired by the expenditure of tax revenues and located in the coastal zone, as defined by the state constitution.
2. Requires Caltrans to sell and transfer the specified surplus state property to State Parks for state park purposes.
3. States Legislative intent that after Caltrans sells the surplus state property to State Parks, State Parks shall include this area in the management of Pacifica State Beach for park purposes that are consistent with the City of Pacifica Certified Local Coastal Program, until such time as the property may change ownership to a local agency for purposes consistent with trailhead parking adjacent to the California Coastal Trail.
4. States the sale and transfer of the Disney lot serves a public purpose.
5. Makes various findings and declarations relating to the surplus property, the California Coastal Trail, and the importance of coastal access.
6. Makes legislative findings and declarations as to the necessity of a special statute for the surplus state property in the City of Pacifica.

EXISTING LAW:

1. Authorizes the Legislature, by statute, with respect to surplus state property located in the coastal zone and acquired with revenues restricted by California Constitution Article XIX to transportation purposes, to authorize the transfer of that property to State Parks for state park purposes, or to the Department of Fish and Wildlife for the protection and preservation of fish and wildlife habitat, or to the Wildlife Conservation Board for purposes of the Wildlife Conservation Law of 1947, or to the State Coastal Conservancy (SCC) for the preservation of agricultural lands, for a consideration at least equal to the property’s purchase price (California Constitution Article XIX § 10).
2. Defines “coastal zone” as the land and water area of the State of California from the Oregon border to the border of the Republic of Mexico, specified on the maps identified and set forth in Section 17 of Chapter 1330 of the Statutes of 1976, extending seaward to the state’s outer limit of jurisdiction, including all offshore islands, and extending inland generally 1,000 yards from the mean high tide line of the sea. Extends inland to the first major ridgeline paralleling the sea or five miles from the mean high tide line of the sea, whichever is less, in significant coastal estuarine, habitat, and recreational areas. Generally extends inland less than 1,000 yards in developed urban areas. Excludes from the coastal zone the area of jurisdiction of the San Francisco Bay Conservation and Development Commission, established pursuant to Title 7.2 (commencing with Section 66600) of the Government Code, nor any area contiguous thereto, including any river, stream, tributary, creek, or flood control or drainage channel flowing into such area [Public Resources Code (PRC) § 30103].
3. Establishes the California state park system and vests State Parks with control of the state park system and responsibility for administering, protecting, developing, and interpreting state parks for the use and enjoyment of the public (PRC § 5001 et seq.).
4. Grants Caltrans full possession and control of all state highways and all property and rights in property acquired for state highway purposes. Authorizes and directs Caltrans to lay out and construct all state highways between the termini designated by law and on the locations as determined by the California Transportation Commission (CTC) [Streets and Highways Code (SHC) § 90].
5. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary, to sell, contract to sell, sell by the trust deed, or exchange the real property in the manner and upon terms, standards, and conditions established by the CTC (SHC § 118).
6. Requires Caltrans, to the greatest extent possible, to offer to sell or exchange excess real property, meaning all land and improvements situated outside of the calculated highway right-of-way lines not needed or used for highway or other public purposes, within one year from the date that it is determined to be excess (SHC § 118.6).
7. Requires the State Coastal Conservancy, in consultation with State Parks, the California Coastal Commission, and Caltrans, to coordinate the development of the California Coastal Trail (CCT), and requires certain state and regional transportation planning agencies to coordinate with the State Coastal Conservancy, the California Coastal Commission, and Caltrans regarding development of the CCT (PRC § 31408; Government Code § 65080.1).

FISCAL EFFECT: Unknown. This bill is keyed fiscal.

COMMENTS:

1. Purpose of this bill. This bill directs Caltrans to sell the surplus property identified in Director’s Deed DD-028801-01-01 to State Parks for state park purposes at the price initially paid by Caltrans for the acquisition. According to the author, “[This bill] facilitates the transfer of an excess Caltrans property to [State Parks], and eventually to the City of Pacifica to redevelop it for public use.”
2. Background. Pacifica State Beach is a popular tourist destination located off Highway 1 in San Mateo County. The City of Pacifica would like to acquire an excess Caltrans parcel in the Pedro Point area to create, in the near-term, additional public beach parking associated with Pacifica State Beach located approximately 800 feet to the northeast. The author maintains that the new parking area will help alleviate some of the dangers faced by beachgoers that currently cross Highway 1 on foot to reach Pacifica State Beach. In the longer-term, Pacifica would like to also use the property as CCT trailhead parking once the CCT is constructed into and through the Pedro Point Headlands. The future use as CCT trailhead parking would support prior state expenditures of $304,535 awarded to the City of Pacifica through a Habitat Conservation Fund (HCF) grant to partially fund the acquisition of five acres in the Pedro Point Headlands for the future Coastal Trail alignment. The parcel acquired with HCF funds is located approximately 300 feet south of the Caltrans parcel in question.
   
   Figure 1. Caltrans Director’s Deed DD-028801-01-01.
   
   The parcel identified in Director’s Deed DD-028801-01-01 is approximately 15,121 square feet (0.35 acres). Current law requires that if Caltrans were to sell the land to the City of Pacifica it be sold at or above the fair market price of $756,050. Pacifica is unable to afford the land at this price. This bill proposes a process that would allow State Parks to acquire the land for state park purposes at Caltrans’ original acquisition cost, which the author states was $56,680. This type of acquisition mechanism has been utilized previously in limited circumstances (see Related Legislation section). Pacifica expects it should be able to identify local funds to acquire the property. Pacifica also plans to seek SCC funds as well, if available.
   
   California Coastal Trail. The CCT is an integrated network of trails that, when completed, will provide a multimodal opportunity to walk and bike the length of California’s 1,230-mile-long coast. ACR 20 (Pavley, Resolution Chapter 99, Statutes of 2001) declared the CCT to be an official state trail and found that completion of the CCT is an integral part of the State’s responsibility to provide public coastal access for all in perpetuity. Today, roughly 70% of the CCT is complete, and SCC has been tasked by the Legislature to help complete it in collaboration with Caltrans, State Parks, and the Coastal Commission. SCC pursues this mandate in part by awarding grants to public agencies and nonprofit organizations to acquire land rights, and to develop, operate, or manage lands for public access to and along the coast.
   
3. Arguments in support. The City of Pacifica writes in support, stating that this bill “would expand coastal access around Pacifica State Beach and support a future CCT extension in Pacifica.”
4. Double referral. This bill was also referred to the Assembly Transportation Committee and passed that committee 15-0 on consent on March 20, 2023.
5. Related legislation. SB 231 (McGuire) Chapter 289, Statutes of 2021, authorized Caltrans to transfer the Blues Beach property located in the unincorporated community of Westport in the County of Mendocino to a qualified nonprofit corporation organized by one or more specified California Native American tribes for the purpose of environmental protection.
   
   SB 792 (Sher) Chapter 390, Statutes of 2004, directed Caltrans to sell land associated with the Martini Creek Devil’s Slide bypass to State Parks.
   

REGISTERED SUPPORT / OPPOSITION:

Support

City of Pacifica (Sponsor)

Opposition

None on file

Analysis Prepared by: Keith Cialino / W., P., & W. / (916) 319-2096

Date of Hearing: March 20, 2023

ASSEMBLY COMMITTEE ON TRANSPORTATION

Laura Friedman, Chair

ABPCA Bill Id:AB 612 (

Author:Berman) – As Introduced Ver:February 9, 2023

SUBJECT: State parks: Pedro Point

SUMMARY: Requires the California Department of Transportation (Caltrans) to sell and transfer property, as specified, to the Department of Parks and Recreation (DPR) for conversion to state park purposes. Specifically, this bill:

1. Lists findings and declarations regarding the States duty to provide access to coastal lands for all Californians under Article X of the California Constitution and the Coastal Act of 1976.
2. States Legislative intent that after Caltrans sells the “Disney lot” to DPR for state park purposes, DPR shall include this area in the management of Pacific State Beach for park purposes that are consistent with the City of Pacifica Certified Local Coastal Program, until such time as the property may change ownership to a local agency for purposes consistent with trailhead parking adjacent to the California Coastal Trail.
3. Requires Caltrans to declare that the Pedro Point excess property identified in Director’s Deed DD–028801–01–01, also known as the “Disney Lot,” is surplus state property acquired by the expenditure of tax revenues and located in the coastal zone, as defined by the state constitution.
4. Requires Caltrans to sell or transfer the Disney lot to DPR for state park purposes as defined by the state constitution.
5. States the sale and transfer of the Disney lot serves a public purpose.
6. Provides that a special statute is necessary because of the unique circumstances of the city of Pacifica.

EXISTING LAW:

1. Permits the sale or transfer of surplus state property located in a coastal zone and is acquired with the use of motor vehicle-related tax revenue at or above the acquisition cost paid by the State to acquire the property, to DPR for state park purposes, or to the Department of Fish and Game for the protection and preservation of fish and wildlife habitat, or to the Wildlife Conservation Board for purposes of the Wildlife Conservation Law of 1947, or to the State Coastal Conservancy for the preservation of agricultural lands. (California Constitution (CONS) Article XIX 10)
2. Defines “Coastal zone” as the land and water area of the State of California from the Oregon border to the border of the Republic of Mexico, specified on the maps identified and set forth in Section 17 of Chapter 1330 of the Statutes of 1976, extending seaward to the state’s outer limit of jurisdiction, including all offshore islands, and extending inland generally 1,000 yards from the mean high tide line of the sea. In significant coastal estuarine, habitat, and recreational areas it extends inland to the first major ridgeline paralleling the sea or five miles from the mean high tide line of the sea, whichever is less, and in developed urban areas the zone generally extends inland less than 1,000 yards. The coastal zone does not include the area of jurisdiction of the San Francisco Bay Conservation and Development Commission, established pursuant to Title 7.2 (commencing with Section 66600) of the Government Code, nor any area contiguous thereto, including any river, stream, tributary, creek, or flood control or drainage channel flowing into such area. (Public Resources Code (PRC) 30103)
3. Grants Caltrans full possession and control of all state highways and all property and rights in property acquired for state highway purposes. The department is authorized and directed to lay out and construct all state highways between the termini designated by law and on the locations as determined by the commission. (Streets and Highways Code (SHC) 90)
4. Allows Caltrans, whenever it determines that any real property acquired by the state for highway purposes is no longer necessary, may sell, contract to sell, sell by the trust deed, or exchange the real property in the manner and upon terms, standards, and conditions established by the California Transportation Commission (CTC).
5. Requires Caltrans to offer to sell or exchange excess real property, meaning all land and improvements situated outside of the calculated highway right-of-way lines not needed or used for highway or other public purposes, within one year from the date that it is determined to be excess. (SHC 118)

FISCAL EFFECT: Unknown

COMMENTS:

Pacifica State Beach is a popular tourist destination, a wide crescent-shaped beach located off Highway 1. The northern gateway to part of the California Coastal Trail runs discontinuously between the state’s northern and southern border. Parking demands of beach-goers to Pacific State Beach and the California Coastal Trail exceed available parking and as a result, visitors park on nearby residential streets, straining local communities and causing beachgoers to make the dangerous Highway 1 crossing.

To address these problems and increase public access to the Coastal Trail, the City of Pacifica would like to acquire an excess Caltrans parcel [Director’s Deed (DD-028801), also known as the “Disney lot”] in the Pedro Point area to create, in the near-term, additional public beach parking associated with Pacifica State Beach located approximately 800 feet to the northeast and, in the longer-term, to use as Coastal Trail trailhead parking once the Coastal Trail is constructed into and through the Pedro Point Headlands. The property will serve as parking for Pacifica State Beach and will eventually serve as Coastal Trail trailhead parking once the Coastal Trail is constructed into and through the Pedro Point Headlands.

Current law requires that if Caltrans were to sell the land to the City of Pacifica it be sold at or above the fair market price of $756,050. Pacifica was unable to afford the land at this price.

This bill proposes a process that would allow DPR to acquire the land at Caltrans’ original acquisition cost, for state park purposes. The mechanism proposed in this bill for the transfer of this property is based on SB 792 (Sher) Chapter 390, Statutes of 2004 which allowed for Caltrans to sell and transfer property in the Martini Creek Bypass Alignment to DPR.

In addition to increasing the safety of beachgoers in the area and reducing parking on local streets, the acquisition and future use as Coastal Trail trailhead parking would support prior state expenditures of $304,535 awarded to the City of Pacifica through the Habitat Conservation Fund (HCF) grant to partially fund the acquisition of five acres in the Pedro Point Headlands for the future Coastal Trail alignment. The parcel acquired with HCF funds is located approximately 300 feet south of the Caltrans parcel in question.

According to the author, “California has longstanding goals of helping more people access and enjoy the coastal outdoors and sustaining local economies along the length of California’s coast and around San Francisco Bay. This bill supports those goals by expanding public access to Pacifica State Beach in the near-term, and in the longer term increasing public access to the Coastal Trail. AB 612 facilitates the transfer of an excess Caltrans property to the California Department of Parks and Recreation, and eventually to the City of Pacifica to redevelop it for public use. The property will serve as parking for Pacifica State Beach and will eventually serve as Coastal Trail trailhead parking once the Coastal Trail is constructed into and through the Pedro Point Headlands. The lot will reduce the need for beachgoers to make the dangerous Highway 1 crossing and will ensure that more people can access California’s beautiful state beaches.”

The City of Pacifica writing in support states, “the availability of the parcel for transfer from Caltrans presents an opportunity to support the development of additional Pacifica State Beach parking in the near term and a California Coastal Trail (CCT) trailhead parking lot over a longer term once improvements are made to eliminate the CCT trail gap.”

Previous legislation:

SB 792 (Sher) Chapter 390, Statutes of 2004directed Caltrans to sell land associated with the Devil’s Slide bypass to the Department of Parks and Recreation.

SB 231 (McGuire) Chapter 289, Statutes of 2021 authorized Caltrans to transfer the Blues Beach property located in the unincorporated community of Westport in the County of Mendocino.

REGISTERED SUPPORT / OPPOSITION:

Support

City of Pacifica (sponsor)

Opposition

None on file.

Analysis Prepared by: Dirk Spencer / TRANS. / (916) 319-2093