CITY OF SANTA MONICA

CITY COUNCIL MINUTES

JULY 17, 2002

A special meeting of the Santa Monica City Council was called to order by Mayor Feinstein at 8:07 p.m., on Tuesday, July 17, 2002, in Room 208, City Hall, 1685 Main Street.

Roll Call: Present: Mayor Michael Feinstein

Councilmember Richard Bloom

Councilmember Ken Genser

Councilmember Herb Katz

Councilmember Pam O'Connor

Absent: Councilmember Robert T. Holbrook

Mayor Pro Tem Kevin McKeown

Also Present: City Manager Susan McCarthy

City Attorney Marsha Jones Moutrie

On order of the Mayor, the City Council convened the special meeting at 8:07 p.m., with Councilmember Holbrook and Mayor Pro Tem McKeown absent. There being no one present for public comment, the City Council recessed to the following closed session:

2-A: Conference with Legal Counsel - Existing Litigation: City of Santa Monica v. Shell Oil Company, Case No. 010CC04331.

On order of the Mayor, the City Council reconvened at 8:40 p.m., with Councilmember Holbrook and Mayor Pro Tem McKeown absent.

Motion by Councilmember Bloom, seconded by Councilmember Katz, to settle with defendants Exxon/Mobil and Chevron/Texaco, and authorize the City Manager to execute all necessary documents, on the following terms:

Defendants to:

• pay $30 million in cash to the City.
• to provide annual advances for building and operating water treatment facility.
• provide a "guarantee" in the form of forgiveness of repayment of the advances if the City does not recover from other defendants amounts sufficient to repay the advances.

City to:

• release settling defendants from claims covered by suit, including release from defective product claim and claims as to existing leaks.
• build and operate treatment facility.
• repay settling defendants' advances from recover against remaining defendants.

And, both parties to work together through an Engineering Committee on treatment issues and to arbitrate disputes relating to those issues. The motion was approved by the following vote:

AYES: Councilmembers O'Connor, Bloom, Genser, Katz, Mayor Feinstein

NOES: None

ABSENT: Councilmember Holbrook, Mayor Pro Tem McKeown

On order of the Mayor, the special City Council meeting was adjourned at 8:50 p.m.

ATTEST: Maria M. Stewart, City Clerk APPROVED: Michael Feinstein, Mayor