sr-032481--11c' MAR 2 ~ 991
STAFF REPORT
T0: Mayor and City Cduncil
FROM: City Attorney
SUBJECT: Settlement of Boundary Dispute and Related Litigation
Re Santa Monica Stake Beach Property Commonly Known
as 514 Palisades Beach Road, (People v. Mae West,
et al., LASC Case No: WEC 42548) and authority to
settle related litigation on substantially same
terms and conditions.
BACKGROUND
A quiet title action was commenced in 1976 in the above
case by the State of California, acting by and through the State
Lands Commission and the Department of Parks and Recreation, and
the City of Santa Monica as plaintiffs. The complaint contains
several causes of action and essentially seeks to quiet title to
sovereign tidelands located along the Santa Monica State Beach.
The City and State contend in this lawsuit that the
boundary separating sovereign tidelands frorn private upland
property consists of the 1921 Mean High Tide Line surveyed by the
City of Santa Monica in 1921 and established as the mean high
tide line by Ordinance No. 188 (Commissioners' Series), recorded
in Book 431, Page 90 of Official Records, in the Office of the
County Recorder of Los Angeles County. At that time the City of
Santa Monica was acting in its capacity as grantee of the State's
tide and submerged lands upon certain trust and conditions
pursuant to Statutes of 1917, Chapter 78, Page 90, approved
April 10, 1917. In 1949, the City quitclaimed most of its
ownership interests to the State and has since operated the Santa
Monica State Beach through an operating agreement with the
Department of Parks and Recreation. ~ ~_
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The_gurpose,of. surveying and establishing the mean high
tide line in 1921 was to make certain and definite the boundary
between uplands and tidelands prior to the construction of
shoreline structures which were expected to influence the
shoreline. Thereafter, the City and the Santa Monica Land
Company entered into a boundary agreement in the form of a joint
quitclaim deed establishing the 1921 Mean High Tide Line as the
boundary for that area extending north of an extension of Montana
Avenue to the northerly City limits. The validity of the
boundary agreement and the 1921 Mean High Tide Line was
challenged and subsequently upheld by the California Supreme
Court in Muchenberger v. City of Santa Monica, 206 Cal. 635,
decided March 8, 1929.
Since 1921, the tidelands waterward of the 1921 Mean
High Tide Line have become filled as the result of the
construction of man made structures. As this filling continued,
many upland parties for various reasons gradually extended their
fences beyond the 1921 Mean High Tide Line and placed
improvements within the extended areas at varying distances from
very slight encroachments to 135 feet in one instance.
The upland owners have contended that they are entitled
to ownership of all or a portion of the filled lands, and
otherwise dispute the claims of the State and City.
In 1978, the State Lands Commission began a resurvey of
the 1921 Mean High Tide Line, tying it to current monuments of
record so that its location is known with relation to existing
conditions. This resurvey was recorded in 1980 in Book 90, Page
39 of Records of Survey in the Office of the County Recorder of
Los Angeles County.
Negotiations have been conducted and a settlement has
been reached in People v, Mae West, et a1., which is acceptable
to the State. This settlement provides as follows:
1. The Upland Owner will recognize the 1921 Mean High
Tide Line, as resurveyed in 1978, as the permanent
boundary separating tidelands from uplands, and shall
relinquish any and all claims waterward of the agreed
boundary.
2. The Upland owner and the State and City will execute a
boundary agreement in the form of a joint quitcliam
deed so establishing the boundary.
3. The Upland owner will be permitted to maintain the
existing improvements waterward of the boundary line
for a period of ten (10) years at a nominal rental
rate as set forth in the State Lands Commission's
regulations, specifically the California
Administrative Code, Title II, Division 3, Article 2,
Section 2005. These improvements consist of a wood
fence and wood and stucco wall, which extend a maximum
of 14 feet waterward of the 1921 Mean High Tide Line.
4. Upon the expiration of the initial ten (10) year
period, the Upland owner shall have an option to lease
the premises for an additional ten (10) year period at
fair rental value.
5. All improvements waterward of the 1921 Mean High Tide
Line shall be removed at the termination of the lease
term.
ALTERNATIVES
Council may either approve or disapprove this
settlement. Disapproval will mean continuation of the
litigation which will be costly to both the City and the
State and will further delay implementation of the Beach
Plan.
RECOMMENDATION
In People v. Mae West, et al., the 10 year term
and 10 year option is designed to gradually phase out the
encroachments within a time frame which can accomodate the
concerns not only of this party, but the other litigants as
well; enable the City to proceed with the planning process
for the beachy and provide an additional source of revenue
for beach improvements if the option term is exercised.
It is further recommended that the City Council
authorize the negotiation of settlements and the execution
of Boundary Line Agreements in similar related cases upon
the same terms and conditions and in substantially the same
form as the Boundary Line Agreement and Permit for
Improvements and Lease Option Agreement before the City
Council for approval in People v. Mae West, et al. These
related cases are listed separately and attached hereto.
Prepared by:
Stephen Shane Stark, Acting City Attorney
Susanne C. Wylie, Deputy Attorney General
People v. Gaston, et a1.
LASC Case No. WEC 42546 - 270 Palisades Beach Rd., Santa Monica
People v. Nugent, et al.
LASC Case No. WEC 42547 - 443 Palisades Beach Rd., Santa Monica
People v. Palisades Beach Club, et a1.
LASC Case No. WEC 42545 - 267 Palisades Beach Rd., Santa Monica
People v. Waller, et al.
LASC Case No. GVEC 42551 - 602 & 605 Palisades Beach Rd., Santa Monica
People v. Zanuck, et a1.
LASC Case No. [4EC 42550 - 546 Palisades Beach Rd., Santa Monica
People v. Diener, et al.
LASC Case No. WEC 46985 - 964 Palisades Beach Rd., Santa Monica
People v. Lefcoe, et a1.
LASC Case No. WEC .46987 - 972 Palisades Beach Rd., Santa Monica
People v. California Canadian Bank, et al.
LASC Case No. WEC 42547 - 522 Palisades Beach Rd., Santa Monica
People v. P•4iller, et al.
LASC Case No. GVEC 46986 - 966 Palisades Beach Rd., Santa Monica
People v. Dlullin, et a1.
LASC Case No. WEC 46989 - 1022 Palisades Beach Rd., Santa Monica
People v. Carline, et al.
LASC Case No. WEC 43432 - 918. Palisades Beach Rd., Santa P4onica
People v. Harris, et a1.
LASC Case No. WEC 43434 - 940 Palisades Beach Rd., Santa Monica
People v. Julred, Inc., et al.
LASC Case No. [4EC 43435 - 978 & 1018 Palisades Beach, Rd.,
Santa Monica
People v. Perry, et al.
LASC Case No. GVEC 43431 - 916 Palisades Beach Rd., Santa Monica
People v. Rosenthal, et a1.
LASC Case No. 40EC 43433 - 924 Palisades Beach Rd., Santa Monica
People v. Camargue, Inc., et al.
LASC Case No. G4EC 46237 - 549 Palisades Beach Rd., Santa Monica
People v. Jones, et al.
LASC Case No. WEC 46236 - 547 Palisades Beach Rd., Santa Monica
1.
People v. Friedman, et al.
LASC Case No. WEC 46238 - 607 Palisades Beach Rd., Santa Monica
People v. Herson, et al.
LASC Case No. WEC 46239 - 625 Palisades Beach Rd., Santa Monica
People v. Grossman, et al.
LASC Case No. WEC 462.41 - 702 Palisades Beach Rd., Santa Monica
People v. Kanin, et al.
LASC Case No. WEC 46240 - 653 Palisades Beach Rd., Santa Monica
People v. Compania Exportadora de Productos Agricola, S.A., et al.
LASC Case No. WEC 46242 - 703 Palisades Beach Rd., Santa Monica
2.
DRAFT
March 17, 1981
PROPOSED BOUNDARY LINE AGREEMENT
SANTA MOLdICA STATE BEACH BOUNDARY LINE AGREEMENT--B.L.A.
THIS BOUNDARY LINE AGREEMENT is made and entered into
by and between the STATE OF CALIFORNIA, acting by and through the
STATE LANDS COMMISSION; and the STATE OF CALIFORNIA, acting by
and through the DEPARTMENT OF PARKS AND RECREATION; and the CITY
OF SANTA MONICA, a municipal corporation; and
hereinafter "Upland Parties."
W I T N E S S E T H
WHEREAS, the State of California (hereinafter referred
to as "the State") acquired title to tidelands and submerged
lands, by virtue of its sovereignty, upon its admission to the
Union;
WHEREAS, the California Legislature, pursuant to
Statutes of 1917, Chapter 78, Page 90, approved April 10, 1917,
granted the City of Santa Monica {hereinafter referred to as "the
City") all of the State's right, title and interest in or to all
of the State's tide and submerged lands within the then existing
boundaries of the City, upon certain trusts and conditions;
WHEREAS, the State Lands Commission is vested with all
jurisdiction and authority remaining in the State as to tidelands
and submerged lands granted to local agencies in trust, by the
Legislature;
1.
WHEREAS, the City Council of the City on July 25, 1921,
adopted Ordinance No. 188 (Commissioners' Series), fixing and
determining the line of mean high-tide of the Pacific Ocean
within the City (hereinafter referred to as "the 1921 mean high-
tide line"), and said ordinance was recorded in Book 431, Page
90, of Official Records, in the Office of the County Recorder of
Los Angeles County;
WHEREAS, said 1921 mean high-tide line is depicted on a
plat entitled "Map Showing Line of Mean High Tide of Pacific
Ocean in the City of Santa Monica, California," Drawing No. 0-
777, filed in File No. 412 in the Office of the County Recorder,
County of Los Angeles, and recorded in Book 431, Page 90, of
Official Records, in said County Recorder's Office;
WHEREAS, the City and the Santa Monica Land Company,
the then owner of that certain upland real property adjacent to
and abutting the tidelands involved in this boundary line
agreement, entered into an agreement in the form of a joint
quitclaim deed utilizing said 1921 mean high-tide line as the
common boundary line between said tidelands and said adjacent
upland real property, and said quitclaim dated August 2, 1921,
was recorded August 4, 1921, in Book 437, Page 118, of Official
Records, in said County Recorder's Office;
WHEREAS, the California Supreme Court in Muchenberger
v. City of Santa Monica, 206 Cal. 635, decided March 8, 1929,
affirmed the constitutionality of said boundary line agreement in
the form of a joint quitclaim deed, thereby validating said 1921
2.
mean high-tide line as fixed and determined by said Ordinance No.
188 (Commissioners' Series);
WHEREAS, the State Lands Commission has completed a
resurvey of said 1921 mean high-tide line tying it to current
monuments of record so that its location is known with relation
to existing conditions, said resurvey being recorded in Book 90,
Page 39 et seq., of Records of Survey in the Office of the County
Recorder of Los Angeles County;
WHEREAS, the City, pursuant to Resolution No. 297 (City
Council Series) adopted June 21, 1944, by the City Council,
quitclaimed to the State all of the City's right, title and
interest in and to certain tidelands previously granted in trust
to the City, and said quitclaim deed dated June 21, 1949, was
recorded January 19, 1950, in Book 31924, Page 250, of Official
Records, in said County Recorder's Office;
WHEREAS, the State Park Commission and the City entered
into an operating agreement dated December 21, 1956, whereby the
City agreed to develop, operate, maintain and control certain
real properties, including said tidelands deeded from the City to
the State by said deed dated June 21, 1949, for the purposes of
the State Park System for a period of 25 years from December 21,
1956;
WHEREAS, the Department of Natural Resources succeeded
the State Park Commission by virtue of Statutes of 1959, Chapter
2164, Page 5257, Section 1;
3.
WHEREAS, the Department of Parks and Recreation
succeeded the Department of Natural Resources by virtue of
Statutes of 1961, Chapter 2037, Pages 4248 and 4249, Section 16;
WHEREAS, the tidelands involved in this boundary line
agreement are included within that portion of the State Park
System designated as Santa Monica State Beach, and are now owned
by the State, and are now under the management and control of the
City pursuant to said operating agreement dated December 21,
1956;
WHEREAS, Upland Parties are the owners of that certain
upland real property situated in the City of Santa Monica, County
of Los Angeles, State of California, described in that deed dated
and recorded in Book Page
of Official Records in said County Recorder's Office;
WHEREAS, said upland real property is adjacent to and
abuts the tidelands involved in this boundary line agreement;
WHEREAS, it is deemed necessary to reaffirm and to
redescribe with greater specificity the physical location of said
1921 mean high-tide line of the Pacific Ocean as fixed and
determined by said Ordinance No. 188 (Commissioners' Series);
WHEREAS, by virtue of Public Resources Code section
6357, the State, acting by and through the State Lands
Commission, may permanently establish the ordinary high-water
mark of any tidelands of this State by agreement between the
upland owners and the State;
4.
i
NOW, THEREFORE, it is agreed as follows:
1. In order to locate, describe and permanently
establish the true and correct boundary line between the
tidelands originally owned by the State by virtue of its
sovereignty and presently vested in the State and City as set
forth above, and said adjacent upland real property owned by
it is agreed that ,said boundary
line is described as follows:
2. It is the intent of the parties hereto that the
aforedescribed boundary line shall be permanent and fixed, and
that it shall not be subject to any change by reason of either
erosion or accretion, or both, whether resulting from natural or
artificial conditions.
3.
hereby quitclaims, releases
and remises all right, title and interest in and to those lands
oceanward of the common boundary line set forth in Paragraph 1
hereinabove to the State and City as their respective interests
are described above, such lands being more particularly described
in Exhibit A attached hereto and by reference made a part hereof.
4. The State acting by and through the Department of
Parks and Recreation and the State Lands Commission, and the City
of Santa Monica, hereby quitclaim, release and remise all right,
title and interest by virtue of sovereign ownership of tidelands
and submerged lands in and to those lands landward of said common
Boundary line to
such land being more
particularly described in Exhibit B attached hereto and by
reference made a part hereof.
5.
5. Upland Parties shall be permitted to maintain
certain encroachments now existing oceanward of the 1921 mean
high tide line according to the terms and conditions set forth in
the Agreement between the State and Upland Parties, which
Agreement shall be executed and recorded upon the execution and
recordation of this Boundary Line Agreement. A copy of said
lease is attached hereto as Exhibit C.
6. This agreement shall become effective upon the
occurrence of the following acts:
A. The execution of this agreement by all of the
parties listed below, and in the event any of such parties
so listed voluntarily disposes of any interest affected by
this agreement prior to the recordation of this agreement,
the execution of this agreement by the successor in interest
of such party in lieu of such party; and
B. The recordation of this agreement, executed by all
of the parties listed below, in said County Recorder's
Office.
7. The effective date of this agreement shall be the
date of the recordation as provided in paragraph 6 hereinabove.
8. Upon becoming effective, this agreement shall be
binding upon and inure to the benefit of the parties hereto and
their successors in interest, heirs and assigns.
9. It is expressly understood by all parties hereto
that the provisions set forth in this agreement have been
determined for purposes of compromise and settlement. The
6.
matters agreed upon herein shall not constitute any admissions
nor are they to be construed as an expression on the part of any
party executing this agreement, except as between the parties
hereto. Nor shall this agreement affect in any manner the right,
title or interest of any party hereto, or any third party, in or
to lands other than those described herein.
10. As used herein, whenever the context so requires,
the neuter gender includes the masculine and the feminine, and
the singular includes the plural, and vice versa. Defined terms
are to have their defined meaning regardless of their grammatical
form, number or tense of such terms.
11. All provisions of Paragraph 5 of this agreement
shall be severable, separate and distinct from the other
provisions of this agreement. Should any party, or his successor
in interest, heir or assign fail to comply with any or all of
those provisions in said Paragraph 5 after the effective date of
this agreement, such failure shall in no way affect the
consideration of this agreement or the validity or binding nature
thereof. Nothing herein, however, shall affect or diminish the
rights of any party hereto to enforce the provisions of said
Paragraph 5 against any other party hereto, or his successor in
interest, heir or assign.
12. This agreement may be executed in any number of
counterparts and each executed counterpart shall have the same
force and effect as an original and as if all of the parties to
the aggregate counterparts had signed the same instrument. Any
7.
signature page of this agreement may be detached from any
counterpart of this agreement without impairing any signatures
thereon, and may be attached to another counterpart of this
agreement identical in form hereto but having attached to it one
or more additional signature pages. In the execution of this
agreement each party hereto shall furnish such acknowledgments
and certifications as may be necessary to duly record, in the
Office of the County Recorder, its execution hereof.
IN WITNESS WHEREOF, each Party hereto has caused this
agreement to be executed.
8.
EXHIBIT C March 20, 1981
PERMIT FOR IMPROVEMENTS
AND LEASE OPTION AGREEMENT
A. THIS AGREEMENT is entered into this day
of 1981, by and between the State of California
acting by and through the State Lands Commission, hereinafter
referred to as "State," and hereinafter
referred to as "Upland Party."
B. Upland Party
improvements consisting of
which extend approximately
that certain line entitled
1978" as shown in Book 90
Recorder°s Office.
has maintained certain existing
a wood fence and wood-stucco wall
14 feet waterward, southwesterly of
"1921 Mean High Tide Line Retraced
if Surveys, Page 39, Los Angeles County
C. The area waterward of said "1921 Mean High Tide
Line" currently occupied by Upland Party and. within which said
improvements are located, hereinafter "Premises," consists of
approximately 602 square feet. Said Premises are more
particulary described in Exhibit 1 attached hereto and
incorporated herein by reference.
D. Upland Party shall be permitted to maintain said
existing improvements described in paragraph B above for a period
of ten (10) years from the effective date of this agreement at a
nominal rental rate, said rate being as set forth in the
California Administrative Code, Title II, Division 3, Article 2,
Section 2005 the amount being $30.00 per year.
E. Upland Party shall pay to City of Santa Monica, or
if City is no longer operator of the Santa Monica State Beach,
then to such other public agency designated by the State Lands
Commission, the amount of rent set forth in paragraph D above,
which amount is due, owing and payable on the effective date of
this agreement and on that same date yearly thereafter for a
period of ten (10) years.
F. Upland Party may paint and make routine repairs of
such existing improvements, but shall not reconstruct or
otherwise improve the same in any manner whatsoever.
G. Upland Party shall not construct or maintain,
either permanently or temporarily, any additional improvements
waterward of the "1921 Mean High Tide Line Retraced 1978."
H. Upland Party expressly agrees that the continued
existence of said existing improvement[s] shall not give rise to
any claim of prescriptive rights or any other right, title or
1.
interest vis-a-vis the State, acting by and through the State
Lands Commission, or the State, acting by and through the
Department of Parks and Recreation, or the City, or any other
public entity that may operate Santa Monica State Beach, or any
combination thereof.
I. Upon the expiration of the initial ten (10) year
period, Upland Party shall have an exclusive option to lease said
premises for an additional ten (10) year term at fair rental
value, the amount of which shall be fixed and determined by the
State Lands Commission.
J. The State, shall give to Upland Party written
notice no later than one hundred and eighty {180) days prior to
the expiration of the initial ten (10) year term that said option
must be exercised or be deemed terminated. Said notice shall
include the rental rate for the option period. Failure of the
State to give such notice shall extend the time during which
Upland Party shall exercise said option by the equivalent number
of days, provided that:
1. Notwithstanding that said option shall be exercised
beyond the period specified in paragraph K of this
agreement, said option term shall commence on the day
following the expiration of the initial ten (10) year
term and all payments by Upland Party shall be due and
owing from that date.
2. Upland Party shall notify the City and the State, as
specified in paragraph K of this agreement, as to
Upland Party's current address for the purpose of
receiving notice and any subsequent changes thereto.
In the event the upland parcel is sold or otherwise
transferred it shall be the responsibility of Upland
Party to notify City and State of the change in
ownership and failure to do so may be deemed a waiver
of the right to exercise the option to lease.
3. Notice by the State to Upland Party shall be deemed
given by depositing in the U.S. mail a notice correctly
addressed to the last address provided by Upland Party,
and a duplicate notice addressed to "Owner" at 514
Palisades Beach Road, Santa Monica, California.
K. Upland Party shall exercise said option described
in paragraph I above no later than one hundred and twenty (120)
days prior to the expiration of the initial ten (10) year period
which commences upon the effective date of this agreement.
Notice of Upland Party's intent to exercise said option shall be
deemed given by depositing said notice in the U.S. mail addressed
to:
2.
Director, Department of Recreation and Parks
City of Santa Monica
1685 Main Street
Santa Monica, California 90401
Executive Officer
State Lands Commission
1807 13th Street
Sacramento, California 95814
Director, Department of Parks and Recreation
State of California
1416 Ninth Street,
Sacramento, California 95814
L. Failure to provide said notice of intent to
exercise option in the manner set forth in paragraph K above
shall be considered a waiver of the right to exercise the option,
and said option shall no longer be of any force or effect.
M. Unless otherwise agreed by the parties, Upland
Party shall pay the rental for the additional ten (10) year
period on a yearly basis, with the first payment being due and
payable on the date of commencement of the additional ten (10)
year period, and yearly thereafter.
N. In the event of failure of Upland Party to pay the
consideration as provided herein within the time specified or in
the event of breach of any of the terms or conditions contained
herein, the State shall have the right to terminate this
Agreement on giving to Upland Party a 30-day written notice to
correct such default or breach and in the event Upland Party
fails to do so, City or State shall have the right to reenter and
occupy the premises and remove all property therefrom, provided
however, that any reentry or repossession of the premises shall
not operate to release Upland Party from any obligation under
this Agreement.
O. City and/or the State at all reasonable times shall
have a right to enter said premises for the purpose of making any
reasonable inspection to determine whether the terms and
conditions of this Agreement are being fulfilled by Upland Party.
P. Upland Party hereby assumes all risk of damage or
injury or death of persons in or about said premises from any
cause. Upland Party shall indemnify and hold harmless the City,
the State of California, and their officers, agents and employees
while acting as such, from any claim for such damage, injury or
death.
3.
4. This Agreement shall be subject to approval of the
State of California Department of Parks and Recreation.
R. In the event City or the State is required to bring
any action at law or equity to collect the payment of any
consideration due hereunder or to enforce any of the terms or
conditions of this Agreement, Upland Party shall reimburse the
City and/or the State for such costs as may be incurred in the
bringing of such action, including reasonable attorneys' fees.
S. This Agreement may be terminated at any time by
Upland Party by the removal of all improvements waterward of the
'°1921 Mean High Tide Line Retraced 1978," by giving written
notice to City and the State as provided in paragraph K above,
and by payment of any consideration due and owing at the time of
termination.
T. Upon the termination of this Agreement, City and/or
the State shall have the right to reenter the premises and remove
and dispose of all property therefrom. Cost of removal and
disposal of said property from the premises shall be borne by
Upland Party upon tender of a bill by City and/or the State.
U. This Agreement is binding upon and inures to the
benefit of the heirs, successors in interest and assigns of the
parties hereto.
4.