Attachment A
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MARIA, CALIFORNIA
APPROVING THE SETTLEMENT AGREEMENT AND RELATED
SUPPORTING DOCUMENTS IN THE MATTER OF CITY OF SANTA MARIA VS. CALIFORNIA STATE WATER RESOURCES CONTROL BOARD ET AL.
CASE NO. 25CV-0136 AND ALL RELATED LITIGATION, AND
APPROPRIATION, AND AUTHORIZING PAYMENT OF SETTLEMENT FUNDS
WHEREAS, between 1949 to 1987 SEMCO Twist Drill and Tool Company (“SEMCO”) operated its precision tool manufacturing business at 2936 Industrial Parkway, Santa Maria, California which used a petroleum hydrocarbon -based lubricant and volatile organic compounds, such as trichloroethane in its operations; and
WHEREAS, in 1985, these compounds were detected in a nearby water well during testing by the City of Santa Maria. Following detection of these compounds and a subsequent report by the city to the Santa Barbara County Public Health Department, the well was closed; and
WHEREAS, in 1987, following closure of the well , the California Regional Water Quality Control Board, Central Coast Region (“Regional Board”) issued a Cleanup and Abatement Order (“CAO”) to SEMCO and its successors in interest for ongoing monitoring and remediation of the site. Despite the issuance of this CAO, the CAO was not completed to existing environmental standards or to the satisfaction of the Regional Board; and
WHEREAS, on April 27, 2023, the Regional Board issued its intent to issue a second CAO to the Santa Maria Public Airport District, County of Santa Barbara and City of Santa Maria based upon the fact that all three (3) entities owned the land between 1949 and 1968 while SEMCO rented the location for its business operations; and
WHEREAS, on September 23, 2023 the Regional Board issued a new CAO (No.
R3-2023-0070) to the successors in interest of the SEMCO property along with the City, County and Airport District as the previous owners of the land for the cleanup and monitoring of the site; and
WHEREAS, following issuance of the September 26, 2023, CAO all public entities appealed issuance of the CAO to the State Water Resources Control Board (“State Board”) based upon a lack of evidence connecting the public entities to the environmental practices of SEMCO. The State Board denied the appeal and the City along with the other public entities challenged the Regional Water Boards issuance of the CAO by filing a Petition for Writ of Mandate in this lawsuit requesting the California Superior Court to independently review and invalidate the Regional Boards issuance of the CAO against them based upon a lack of evidence connecting the entities to the practices of SEMCO which led to the condition of the site; and
Attachment A
WHEREAS, on April 17, 2025, the Regional Board, City and other public entities reached a tentative agreement on settlement terms for the resolution of this lawsuit.
Following the tentative agreement, the parties have worked through legal counsel, along with professional environmental engineers and consultants to create a detailed formal settlement agreement which sets forth agreeable site work plan s for monitoring and remediation while limiting the cost to the public entities; and
WHEREAS, under the terms of the proposed settlement agreement the City of Santa Maria will contribute $437,500.00 which will be used to pay for its share of the settlement work as set forth by the environmental consultant retained by the city, county and airport district and tentatively approved by the Regional Board. If completion of the work plans does not fully meet the agreed upon remediation and monitoring standards, additional costs will be shared equally between the City of Santa Maria and the County of Santa Barbara. Any additional charges require joint pre -approval by the city and county; and
WHEREAS, upon settlement the parties agree to dismiss all litigation, suspend the Cleanup and Abatement Order as to the public entities , implement the terms of the settlement agreement including completion of the environmental work plan s, and upon achieving the remediation and monitoring standards, the City along with the other public entities will be removed as dischargers under the CAO and no further action will be required; and
WHEREAS, the terms of this settlement have been tentatively approved by the County of Santa Barbara and Public Airport Distri ct and based upon the facts and information known to the City of Santa Maria , legal counsel recommends accepting the terms of this settleme nt as the most favorable legal outcome and cost control for this matter and requests appropriation and authorization for the payment of the City of Santa Maria’s payment obligations under the agreement; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santa Maria, California, as follows:
SECTION 1. The above recitals are true and correct and incorporated herein by reference.
SECTION 2. The mayor, or designee, is authorized to enter into the settlement agreement for this case by fully executing the Settlement Agreement and all supporting documents necessary to effectuate settlement in the matt er of City of Santa Maria vs.
California State Water Resources Control Board et al. (Case No. 25CV-0136) and all related litigation. The settlement funds are herby appropriated and payment of the city’s portion of the settlement contribution is authorized.
SECTION 3. The Chief Deputy City Clerk is directed to place this Resolution and any extension or renewal for reconsideration on the City Council agenda prior to the expiration of this Resolution or any extension or renewal.
Attachment A
SECTION 4 . The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance with the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and Cit y Attorney concerning any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 21st day of October 2025.
Mayor
ATTEST:
Chief Deputy City Clerk
APPROVED AS TO FORM:
By:
City Attorney
APPROVED AS TO CONTENT:
By:
Department Director
By:
City Manager