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9.A. - Page 3 <br /> they find that the grantee continues to be in violation they will seek legislative or legal <br /> remedy. The SLC views that being out of compliance with the Public Trust Doctrine is a <br /> gift of a public asset and will move to revoke the grant or file a lawsuit. The SLC has <br /> encouraged the City to move forward on a plan to remedy the residential uses at <br /> Docktown and notes that "The City's stewardship of its legislatively granted public trust <br /> lands is a matter of statewide importance" (see Attachment 2 — California State Lands <br /> Commission Letter to City, dated August 7, 2014). <br /> Another important issue related to the ongoing management of Docktown is the land <br /> access. The Docktown Marina berths are accessed through private property. When the <br /> City assumed management of the Marina, a license agreement was negotiated with the <br /> "land side" owner to grant access for Docktown tenants. The owner has communicated <br /> the intention to sell the property for development; subsequently the City has not been <br /> able to negotiate a long-term lease and is currently in a month-to-month arrangement. <br /> This has created considerable uncertainty for the City's ability to provide long-term <br /> access to the Marina. <br /> In addition to these issues, the City must maintain insurance against the liability <br /> associated with operating a marina. Even with the many efforts described above to <br /> improve and maintain the Marina's condition, marina operations are considered to <br /> expose insurance carriers to potentially significant risk. Therefore, such insurance can <br /> be difficult to secure. Since the City began insuring the Marina operations, there has <br /> been one "trip and fall" claim loss and a vessel fire that, while it did not result in a claim, <br /> raised concern about the City's coverage. The City's current insurance policy for the <br /> Docktown Marina will expire on June 30, 2015 and staff has been informed of a <br /> potential challenge to secure continued coverage and the likelihood of a significant <br /> increase in the City's deductible. <br /> ANALYSIS <br /> Staff has met with the City Council in closed session to discuss the SLC position on the <br /> liveaboard uses at the Marina and assess the risk of litigation. As time goes on and with <br /> no plan in place to remedy the situation, the City's exposure increases. As such, staff <br /> would like to propose a process to determine the best way to remedy the incompatible <br /> uses in the granted lands known as Docktown. <br /> As of now, staff has determined that the Council must first decide if it is in a position to <br /> direct staff to develop a timeline and process to close the Docktown Marina. If that is the <br /> direction from Council, the first order of business would be to allocate funding to hire a <br /> project manager who could then develop a closure plan, oversee the process and work <br /> with both staff and the residents throughout the process. The closure plan would include <br /> relocation of those at Docktown, removing vessels, as well as providing security and <br /> clean-up of the area once vacated and any needed environmental review. <br /> Additionally, if the Council decides at this time to move towards closing the Docktown <br /> Marina, the Council could direct staff to research relocation benefits and a relocation <br /> process for those who are using Docktown for residential purposes. A project manager <br />