CITY OF SANTA MONICA

CITY COUNCIL MINUTES

NOVEMBER 21, 2003

A special meeting of the Santa Monica City Council was called to order by Mayor Bloom at 10:07 a.m., on Friday, November 21, 2003, at City Council Chambers, 1685 Main Street.

Roll Call: Present: Mayor Richard Bloom

Mayor Pro Tem Kevin McKeown

Councilmember Ken Genser

Councilmember Herb Katz

Councilmember Pam O=Connor

Absent: Councilmember Michael Feinstein

Councilmember Robert T. Holbrook

Also Present: City Manager Susan McCarthy

City Attorney Marsha Jones Moutrie

Deputy City Clerk Denise Anderson-Warren

CONVENE/PLEDGE

On order of the Mayor, the City Council convened at 10:07 a.m., with Councilmembers Feinstein and Holbrook absent. Mayor Bloom led the assemblage in the Pledge of Allegiance.

PUBLIC INPUT

Motion by Councilmember Katz, seconded by Mayor Pro Tem McKeown, to hear public input before recessing to closed session. The motion was approved by voice vote with Councilmembers Feinstein and Holbrook absent.

There were no requests to speak for public input.

CLOSED SESSIONS

On order of the Mayor, the City Council recessed at 10:10 a.m. to hear closed sessions, and reconvened at 10:31 a.m., with Councilmembers Feinstein and Holbrook absent, to report the following.

2-A: Conference with Legal Counsel - Existing Litigation: City of Santa Monica v. Shell Oil Co., Case No. 01CC4331.

Motion by Councilmember Genser, seconded by Councilmember Katz, to approve settlement and direct the City Manager to negotiate and execute Contract No. 8294 (CCS), with Conoco/Phillips in the amount of $6 million, for clean up and restoration of the city=s drinking water due to Methyl Tertiary-Butyl Ether (MTBE) contamination. The motion was approved by the following vote:

AYES: Councilmembers Katz, Genser, O=Connor, Mayor Pro Tem McKeown, Mayor Bloom

NOES: None

ABSENT: Councilmembers Feinstein, Holbrook

Assistant City Attorney Joseph Lawrence presented the second settlement with Shell Oil Corporation, ChevronTexaco and ExxonMobil Corporations, and advised settlement will pay for construction operation and maintenance of a comprehensive MTBE treatment plant and clean up of the City=s Charnock Well Field. The settlement is to be broken down into two parts: $ 62.5 million cash settlement, and $30 million put in an escrow account.

Motion by Mayor Pro Tem McKeown, seconded by Councilmember Katz,

to approve a second settlement and direct the City Manager to negotiate and execute Contract No. 8293 (CCS), with Shell Oil Corporation, ChevronTexaco, and ExxonMobil in the amount of $92.5 million, for construction operation and maintenance of a comprehensive MTBE treatment plant, clean up cost and restoration of the city=s drinking water due to MTBE contamination. The motion was approved by the following vote:

AYES: Councilmembers Katz, Genser, O=Connor, Mayor Pro Tem McKeown, Mayor Bloom

NOES: None

ABSENT: Councilmembers Feinstein, Holbrook

ADJOURNMENT:

On order of the Mayor, the City Council meeting was adjourned at 10:37 a.m. to November 25, 2003.

ATTEST: APPROVED:

Denise Anderson-Warren Richard Bloom

Deputy City Clerk Mayor