M-7/17/2002 (2)
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 Tern Kevin McKeown
Also Present: City Manager Susan McCarthy
City Attorney Marsha Jones Moutrie
CONVENE
On order of the Mayor, the City Council convened the special meeting at
8:07 p.m., with Councilmember Holbrook and Mayor Pro Tern McKeown
absent. There being no one present for public comment, the City Council
recessed to the following closed session:
CLOSED SESSIONS
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 Tern 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.
July 17, 2002
ADJOURNMENT:
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
None
Councilmember Holbrook, Mayor Pro Tern McKeown
NOES:
ABSENT:
On order ofthe Mayor, the special City Council meeting was adjourned at
8:50 p.m.
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Maria M. Stewart
City Clerk
APPROVEZD: \
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Mi~hael F~htst;~
Mayor
2
July 17, 2002