Attachment A
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MARIA, CALIFORNIA
RESCINDING RESOLUTION NOS. 2003-150 AND 2004-137
MODIFYING AND APPROVING THE CITY’S SURPLUS WATER SALE POLICY
WHEREAS, the City of Santa Maria (“City”) holds contracts to receive water from the State Water Project and historical rights to pump groundwater in accordance with the final judgment entered in Santa Maria Valley Water Conservation District v. City of Santa Maria, et al., Superior Court, County of Santa Clara, Lead Case NO. CV 770214; and
WHEREAS, the County of Santa Barbara (“County”) regulates the land use activities within the Orcutt area; and
WHEREAS, in 1997, the County adopted the Orcutt Community Plan, which establishes a requirement that water demands from new development projects within the Orcutt Community Plan area must be offset by supplemental water supplies that do not result in further overdraft of the groundwater basin; and
WHEREAS, the City has in the past made water supplies that were surplus to its needs (“Surplus Water”) available to developers in the Orcutt Community Plan to meet the supplemental water supply requirements of the Orcutt Community Plan; and
WHEREAS, in Resolution 2003-150, the City made up to 400 acre -feet of water from the City’s surplus supplies available annually for use by new development projects in Orcutt pursuant to the Orcutt Community Plan; and
WHEREAS, in Resolution No. 2004 -137, the City made an additional 500 acre- feet of water from the City’s surplus supplies available annually for use by new development projects in Orcutt pursuant to the Orcutt Community Plan; and
WHEREAS, the City has reviewed its surplus water supplies and has determined a change in the City’s Surplus Water Sale Policy is necessary as to surplus water sales outside of City limits.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
SECTION 1. Resolution Nos. 2003-150 and 2004-137 are hereby rescinded and replaced with the Surplus Water sales requirements outlined below; and
SECTION 2. All annual Surplus Water sales contracts entered into pursuant to Resolutions Nos. 2003-150 and 2004-137 remain valid provided the terms continue to be met.
Attachment A
SECTION 3. From the effective date of this Resolution, no Surplus Water shall be available for any new residential project outside of City limits without the approval of the City Council; and
SECTION 4. From the effective date of this Resolution, no Surplus Water shall be available for any new commercial project outside of City limits unless an exchange of property tax revenues agreement has been reached and entered into between the City and the County pursuant to California Revenue and Tax Code section 99; and
SECTION 5. From the effective date of this Resolution, Surplus Water shall not be available for any non-residential or non-commercial use; and
SECTION 6. The total limit of annual Surplus Water sales is capped at 900-acre feet, inclusive of all Surplus Water sales agreements entered into pursuant to rescinded Resolutions Nos. 2003-150 and 2004-137; and
SECTION 7. Effective upon adoption of this Resolution, the City Council is authorized to charge market value for the sale of Surplus Water; and
SECTION 8. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
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Attachment A
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, California, held this 4th day of August 2026.
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
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City Attorney
APPROVED AS TO CONTENT:
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Department Director
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City Manager