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G. Castaic Lake Water Agency, Newhall County Water District, Los Angeles County
Waterworks District No. 36, Val Verde, the Santa Clarita Water Division, the City of Santa Clarita,
and the County of Los Angeles formed the SCV-GSA by Memorandum of Understanding (MOU)
dated May 24, 2017. The parties to the MOU set forth their intention and reserved the right to prepare
a joint powers agreement to assume the role of the SCV-GSA.

H. Santa Clarita Valley Water Agency (SCV Water) is the successor to Castaic Lake
Water Agency, the Santa Clarita Water Division, and Newhall County Water District, which were
dissolved, pursuant to Senate Bill 634, Chapter 833 (SB 634). In addition, SB 634 required SCV
Water to dissolve Valencia Water Company, a large private retail water provider in the area whose
stock was owned by SCV Water, and transfer its assets into SCV Water. This transfer was
accomplished in January 2018 and as a result, the Valencia Water Division is operated as a retail
service division and is part of the public agency, SCV Water.

I. Under SGMA and pursuant to Government Code Section 6500, et seq., a combination of
local agencies may form a GSA through a joint exercise of powers agreement.

J. The Members have determined that the sustainable management of the Basin pursuant to
SGMA may best be achieved through the cooperation of the Members operating through a joint powers
agreement.

K. The Joint Exercise of Powers Act of 2000 (“Act”) authorizes the Members to create a
joint powers authority and to jointly exercise any power common to the Members and to exercise
additional powers granted under the Act.

L. The Act, including the Marks-Roos Local Bond Pooling Act of 1985 (Government Code
sections 6584, et seq.), authorizes an entity created pursuant to the Act to issue bonds, and under certain
circumstances, to purchase bonds issued by, or to make loans to, the Members for financing public
capital improvements, working capital, liability and other insurance needs or projects whenever doing so
would result in significant public benefits, as determined by the Members. The Act further authorizes
and empowers a joint powers authority to sell bonds so issued or purchased to public or private
purchasers at public or negotiated sales.

M. Based on the foregoing legal authority, as well as the authority granted in SGMA, the
Members desire to create a joint powers authority for the purpose of taking all actions deemed necessary
by the joint powers authority to ensure sustainable management of the Basin as required by SGMA.

N. The governing board of each Member has determined it to be in the Member’s best
interest and in the public interest that this Agreement be executed.

O. This Agreement supersedes and terminates the previously executed MOU and the joint
powers authority created herein herby assumes the role of the SCV-GSA.

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