HomeMy WebLinkAbout2017-03-28 - AGENDA REPORTS - STATE LEGISLATION SB 634 (2)Agenda Item: 19
CITY OF SANTA CLARITA
AGENDA REPORT
NEW BUSINESS
CITY MANAGER APPROVAL: fill
DATE: March 28, 2017
SUBJECT: STATE LEGISLATION: SENATE BILL 634
DEPARTMENT: City Manager's Office
PRESENTER: Michael Murphy
RECOMMENDED ACTION
City Council discuss Senate Bill 634 and provide direction to staff.
BACKGROUND
Authored by Senator Scott Wilk (R-21) and introduced in the Senate on February 17, 2017,
Senate Bill 634 proposes to reorganize the Newhall County Water District (NCWD) and the
Castaic Lake Water Agency (CLWA) into the Santa Clarita Valley Water District. This bill
describes the primary purposes of the Santa Clarita Valley Water District are to acquire, hold,
and utilize water and water rights, and to provide, sell, manage, and deliver surface water,
ground water, and recycled water at retail or wholesale within the district's territory. The new
district shall be the successor -in -interest to Castaic Lake Water Agency's water supply contract
with the California Department of Water Resources.
Specifically, this bill:
Prescribes the composition of the board of directors for the Santa Clarita Valley Water
District to initially include 15 members. The board may, after January 1, 2023, by
resolution reduce the number of elected directors to nine. The Santa Clarita Valley Water
District shall initially consist of the following 15 members:
a. Five members of the Newhall County Water District Board of Directors in office
as of December 31, 2017
b. Nine members of the Castaic Lake Water Agency Board of Directors in office as
of December 31, 2017
c. One member of the Los Angeles County Waterworks District No. 36
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2. Extends the terms of office for board members currently serving on the CLWA and
NCWD boards. Board members whose current term expires following the 2018 general
election will be extended to serve until the 2020 general election and board members
whose current term expires following the 2020 general election will be extended to serve
until the 2022 general election.
3. Prescribes the boundaries of the new district and divides the Santa Clarita Valley Water
District into three divisions, delineating the boundaries of each division.
a. Successors to the first board of directors for the Santa Clarita Valley Water
District shall be elected by the voters for each division as follows:
i. Two directors elected for each division at the 2020 general election.
ii. Two directors elected for each division at the 2022 general election.
b. Each elected director shall have their primary residence in and be an elector in the
division they represent. Each elected director shall serve a four year term from
the date of taking office and until the election and qualification of a successor. A
director shall take office on the first Monday of the January after an election.
4. Directs the Santa Clarita Valley Water District, on or before January 1, 2019, to develop
a rate -setting process that includes an independent ratepayer advocate to advise the board
of directors and provide information to the public before the adoption of new rates. The
ratepayer advocate shall be selected by the board of directors and shall serve in an
advisory capacity only. The board of directors is also directed to develop and adopt any
necessary rules and procedures to define the role of the ratepayer advocate.
The City of Santa Clarita is served by several separate retail water providers. Castaic Lake
Water Agency is a State Water Project contractor and provides wholesale water service to the
retailers operating within the City of Santa Clarita. Castaic Lake Water Agency (CLWA)
provides retail water service to a portion of the Santa Clarita Valley through its Santa Clarita
Water Division that has approximately 30,700 service connections. In addition, CLWA owns the
stock of the Valencia Water Company, which also provides retail water service in the Santa
Clarita Valley and has approximately 31,350 service connections.
Newhall County Water District (NCWD) is a county water district and provides retail water
service in the Santa Clarita Valley to approximately 9,750 service connections.
Beginning in February 2016, CLWA and NCWD began conducting an extensive evaluation and
public process to determine whether creating a new public entity is in the best interest of the
residents of the Santa Clarita Valley. This effort included a series of joint meetings and public
workshops to gather information and public input. On December 13, 2016, the Newhall County
Water District Board voted 4-1 in support of creating the Santa Clarita Valley Water District.
On that same day, in a separate vote, the Castaic Lake Water Agency Board voted unanimously
(10-0) to also support the creation of the Santa Clarita Valley Water District.
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Additionally, both agencies commissioned an independent third party to conduct a financial
evaluation of a proposed new entity. The independent financial evaluation determined that both
CLWA and NCWD are in sound financial condition and that formation of a new combined water
district would achieve operational cost efficiencies and economies of scale in project costs and
pave the way for savings. For example, it is estimated that the new agency will generate savings
of approximately $14 million over the first ten years of operation. The public opinion surveys
also showed support for creating a new combined public entity and the joint study determined
that in addition to foundational efficiencies and cost savings, a new combined district would be
much better positioned to provide improved regional water resource management.
Both water agencies concluded in the settlement agreement that they conducted an open and
transparent process and that ratepayer value and multi -stakeholder benefits have been the central
priority. Based on this process, both agencies anticipate there will be multiple benefits to the
ratepayers resulting from combining the two entities into one new water district, including, but
not limited to, economies of scale such that the new water district's expenses will be less than the
total expenses of the individual entities. Additionally, it is estimated that litigation costs between
the two separate entities will be eliminated, overall staffing will be reduced by approximately
seven percent over time as the result of attrition, and rate stabilization will occur during the
initial years of the new district's existence.
In its role as a customer, the City of Santa Clarita (City) is served by three retail water providers:
Valencia Water Company, Santa Clarita Water Company, and Newhall County Water District.
A significant amount of water usage paid by the City is through the City's maintenance of 55
Landscape Maintenance District (LMD) zones, which include parkways, medians and paseos.
Valencia Water Company accounted for just over half of City funds used to support water use of
LMD zones in 2016 at 53 percent. Santa Clarita Water Company accounted for 39 percent and
Newhall County Water District accounted for 8 percent of funding spent to support water use of
LMD zones in 2016. Although they account for a significant portion of the total water used in
the City, LMD zones do not include water services provided to other City's facilities, such as
City Hall, the Transit Maintenance Facility or George A. Caravalho Sports Complex. The City
of Santa Clarita paid the following amount towards water usage for LMD zones in 2016:
Valencia Water Company: $1,847,718.07
Santa Clarita Water Company: $1,359,331.41
Newhall County Water District: $266,284.15
Senate Bill 634 was referred to the Senate Committee on Natural Resources and Water and the
Senate Committee on Governance and Finance on March 2, 2017. As of the writing of this
report, Senate Bill 634 is scheduled for a hearing in the Senate Committee on Natural Resources
and Water on March 28, 2017. Staff will update the City Council regarding the committee
hearing during the staff presentation on Senate Bill 634 at the City Council meeting.
The City Council Legislative Committee met on March 10, 2017, and recommends that the City
Council discuss Senate Bill 634 and provide direction to staff.
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ALTERNATIVE ACTION
1. Adopt a "support" position on Senate Bill 634
2. Adopt a "neutral" position on Senate Bill 634
3. Adopt an "oppose" position on Senate Bill 634
4. Take no action on Senate Bill 634
5. Refer Senate Bill 634 back to the Legislative Committee
6. Other action, as determined by the City Council
FISCAL IMPACT
The resources required to implement the recommended action are contained within the City's
adopted 2016/17 budget.
ATTACHMENTS
SB 634 - Santa Clarita Valley Water District
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SENATE BILL
Introduced by Senator Wilk
February 17, 2017
No. 634
An act to repeal the Castaic Lake Water Agency Law (Chapter 28
of the First Extraordinary Session of the Statutes of 1962), and to create
the Santa Clarita Valley Water District, and prescribing its boundaries,
organization, operation, management, financing, and other powers and
duties, relating to water districts.
LEGISLATIVE COUNSEL'S DIGEST
SB 634, as introduced, Wilk. Santa Clarita Valley Water District.
Existing law, the Castaic Lake Water Agency Law, created the Castaic
Lake Water Agency and authorizes the agency to acquire water and
water rights, including water from the State Water Project, and to
provide, sell, and deliver water at wholesale for municipal, industrial,
domestic, and other purposes.
This bill would repeal the Castaic Lake Water Agency Law.
Existing law, the County Water District Law, authorizes the formation
of county water districts and authorizes those districts to appropriate,
acquire, and conserve water and water rights for any useful purpose
and to operate water rights, works, properties, rights, and privileges
useful or necessary to convey, supply, store, or make use of water for
any purpose authorized by that law.
This bill would reorganize the Newhall County Water District and
the Castaic Lake Water Agency into the Santa Clarita Valley Water
District, which this bill would create, and prohibit the Castaic Lake
Water Agency and the Newhall County Water District from operating
as separate entities or exercising independent functions. The bill would
generally specify the powers and purposes, as well as the boundaries,
of the Santa Clarita Valley Water District and would provide that the
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primary purpose of the district includes, but is not limited to, to acquire,
hold, and utilize water and water rights, such as from the State Water
Project, and to provide, sell, manage, and deliver surface water,
groundwater, and recycled water at retail or wholesale within the
district's territory. The bill would prescribe the composition of the board
of directors of the district. By imposing duties on the district and a
county in connection with the operation of the district, the bill would
impose a state -mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the state.
Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to the statutory
provisions noted above.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State -mandated local program: yes.
The people of the State of California do enact as follows:
I SECTION 1. The Legislature finds and declares as follows:
2 (a) Residents and businesses of the Santa Clarita Valley are
3 served by several separate retail water providers. It is an inherently
4 fragmented structure with noncontiguous service areas that has
5 resulted in redundancies, interagency conflict, and barriers to
6 integrated regional water management. Despite these challenges,
7 the region's water providers continue to provide reliable and
8 cost-effective water service.
9 (b) Castaic Lake Water Agency was created pursuant to the
10 Castaic Lake Water District Law (Chapter 28 of the First
11 Extraordinary Session of the Statutes of 1962). The agency is a
12 State Water Project contractor and provides wholesale water service
13 to the Santa Clarita Valley region, which has a population of over
14 270,000.
15 (c) The agency provides retail water service to a portion of the
16 valley through its Santa Clarita Water Division that has
17 approximately 30,700 service connections. In addition, the agency
18 owns the stock of the Valencia Water Company, which provides
19 retail water service in the valley and has approximately 31,350
20 service connections.
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(d) Newhall County Water District is a county water district
formed pursuant to the County Water District Law (Division 12
(commencing with Section 30000) of the Water Code). The district
provides retail water service in the valley to approximately 9,750
service connections.
(e) Representatives from the agency and the district began
meeting in 2015 for the purpose of settling litigation between the
entities arising from the agency's purchase of the company's stock.
As the settlement discussions progressed, both sides began to see
merit in and discuss the possibility of combining the two entities
into a new public agency.
(f) Beginning in February 2016, the agency and the district
began conducting an extensive evaluation and public process to
determine whether creating a new combined public entity is in the
best interest of the residents of the Santa Clarita Valley. This effort
included a series of joint meetings and public workshops to gather
information and public input.
(g) The agency and the district also launched an Internet Web
site dedicated to the subject to inform the public and seek input,
conducted two public opinion surveys, commissioned an
independent third party to conduct a financial evaluation of a
proposed new entity, prepared a comprehensive joint new public
water district formation study, and presented to many groups and
at events across the valley throughout 2016.
(h) The independent financial evaluation determined that both
the agency and the district are in sound financial condition and
that the formation of a new combined district would achieve
operational cost efficiencies and economies of scale in project
costs and pave the way for savings. The public opinion surveys
also showed support for creating a new combined public entity
and the joint study determined that in addition to foundational
efficiencies and cost savings, a new combined district would be
much better positioned to provide improved regional water resource
management.
(i) On December 13, 2016, the agency and the district held a
joint public board meeting and voted to enter into an agreement
to settle litigation between the two agencies. The settlement
agreement includes a commitment to seek state legislation to
combine the agency and the district into a new public entity.
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0) The agency and the district concluded in the settlement
agreement that they conducted an open and transparent process
and that ratepayer value and multistakeholder benefits have been
the central priority. Based on this process, the agency and the
district anticipate there will be multiple benefits to the ratepayers
resulting from combining the two entities into one new water
district, including, but not limited to, economies of scale such that
the new water district's expenses will be less than the total
expenses of the individual entities.
(k) The two agencies further concluded that, given the
importance of watershed -based water resource management and
local regional planning, a single entity would build on and lead to
greater success in water conservation, groundwater management,
including conjunctive management of groundwater and surface
water supplies, and future recycled water expansion across the
Santa Clarita Valley.
SEC. 2. The Castaic Lake Water Agency Law (Chapter 28 of
the First Extraordinary Session of the Statutes of 1962, as amended
by Chapter 1715 of the Statutes of 1963, Chapter 443 of the
Statutes of 1970, Chapter 561 of the Statutes of 1971, Chapter
1252 of the Statutes of 1975, Chapter 1128 of the Statutes of 1984,
Chapter 832 of the Statutes of 1986, Chapter 1119 of the Statutes
of 1987, Chapter 1181 of the Statutes of 1988, Chapter 910 of the
Statutes of 1989, Chapter 562 of the Statutes of 1991, Chapter 841
of the Statutes of 1997, Chapter 170 of the Statutes of 1998,
Chapter 929 of the Statutes of 2001, Chapter 27 of the Statutes of
2007, and Chapter 328 of the Statutes of 2010) is repealed.
SEC. 3. This section shall be known and may be cited as the
Santa Clarita Valley Water District Act and reads as follows:
SANTA CLARITA VALLEY WATER DISTRICT ACT
Section 1. This act shall be known and may be cited as the
Santa Clarita Valley Water District Act.
Sec. 2. The Santa Clarita Valley Water District is hereby
created, organized, and incorporated. The district shall be managed
as expressly provided in this act and the district may exercise the
powers in this act that are expressly granted or necessarily implied.
The district may include contiguous or noncontiguous parcels of
both unincorporated and incorporated territory and territory
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included in any public district having similar powers. As used in
this act and unless otherwise indicated by its context, "district"
means the Santa Clarita Valley Water District.
Sec. 3. For purposes of this act, the district includes all of the
territory lying within the following described boundaries:
All that real property situated in the County of Los Angeles,
State of California, more particularly described as follows:
Beginning at the intersection of the northerly line of the Rancho
San Francisco as per map recorded in Book 1, Pages 521 and 522
of Patents, Records of Los Angeles County, and the boundary line
of the County of Los Angeles and County of Ventura, as shown
on Record of Survey filed in Book 27, Pages 19 to 43, inclusive,
of Record of Surveys, Records of Los Angeles County;
Thence easterly along said northerly line of said Rancho San
Francisco to an angle point therein and being S.F. No. 11 as shown
on said Record of Survey;
Thence continuing along said northerly line of the Rancho San
Francisco northeasterly to the intersection with the south line of
Section 15, Township 4 North, Range 17 West, San Bernardino
Meridian;
Thence westerly along said south line to the southwest corner
of said Section 15;
Thence in a general northerly direction along the westerly
boundary of the land described in deed to the Newhall Land and
Farming Company recorded May 10, 1963, as Instrument No. 2721
in Book D2024, Page 391 of Official Records, Records of Los
Angeles County, to the most northerly northwest corner of the land
described in said deed and being in the westerly line of said Section
15;
Thence northerly along said westerly line to the west quarter
corner of said Section 15;
Thence westerly along the south line of the northeast quarter of
Section 16 of said Township and Range to the southwest corner
of said northeast quarter;
Thence northerly along the westerly line of said northeast quarter
to the north line of said Section 16;
Thence westerly along the north line of said Section 16 to the
southwest corner of Section 9 of said Township and Range;
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1 Thence northerly along the west line of said Section 9 to the
2 northwest corner of the southwest quarter of the southwest quarter
3 of said Section 9;
4 Thence westerly along the quarter -quarter section lines to the
5 northeast corner of the southwest quarter of the southeast quarter
6 of Section 7 of said Township and Range;
7 Thence northerly along the quarter -quarter section lines to the
8 northwest corner of the southeast quarter of the northeast quarter
9 of Section 6 of said Township and Range;
10 Thence easterly along the quarter -quarter section lines to the
11 southwest corner of Lot 3 in the northwest quarter of Section 5 of
12 said Township and Range;
13 Thence northerly along the west line of said Lot 3 to the
14 northwest corner of said Lot 3;
15 Thence easterly along the northerly line of said Section 5 to the
16 southwest corner of the southeast quarter of Section 32, Township
17 5 North, Range 17 West, San Bernardino Meridian;
18 Thence northerly along the quarter section lines of Sections 32
19 and 29 of last said Township and Range to the northwest corner
20 of the south half of the northeast quarter of said Section 29;
21 Thence easterly along the north line of said south half of the
22 northeast quarter of Section 29 to the northeast corner of said south
23 half;
24 Thence northerly along the east line of the northeast quarter of
25 said Section 29 to the northeast corner of said Section 29;
26 Thence easterly along the southerly line of Section 21 of said
27 Township and Range to the south quarter corner of said Section
28 21;
29 Thence northerly along the west line of the southeast quarter of
30 said Section 21 to the center of said Section 21;
31 Thence easterly along the along the south line of the northeast
32 quarter of said Section 21 to the southwest corner of the east half
33 of the northeast quarter of said Section 21;
34 Thence northerly along the westerly line of the east half of the
35 northeast quarter of said Section 21 to the northwest corner of said
36 east half;
37 Thence westerly along the northerly line of said Section 21 to
38 the most westerly corner of Government Lot 5 in Fractional Section
39 16 of said Township and Range;
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Thence northeasterly along the northwesterly lines of
Government Lots 5, 4, and 3 all of said Fractional Section 16 to
an angle point in the westerly line of said Government Lot 3;
Thence northwesterly along the southwesterly lines of
Government Lots 3, 2, and 1 of said Fractional Section 16 and
continuing northwesterly along the southwesterly lines of Lots 6,
5, 4, 3, 2 and 1 of Fractional Section 9 of said Township and Range
to the northerly line of said Fractional Section 9;
Thence easterly along said northerly line to the south quarter
corner of Section 4 of said Township and Range;
Thence northerly along the north -south center section line of
said Section 4 to the north quarter corner of said Section 4;
Thence easterly along said north line to the southeast corner of
Section 34, Township 6 North, Range 17 West, San Bernardino
Meridian;
Thence northerly along the east line of said Section 34 to the
northeast corner of said Section 34;
Thence westerly along the northerly line of said Section 34 to
the northwest corner of said Section 34;
Thence northerly along the west line of the southwest quarter
of Section 27 of said Township and Range to the northwest corner
of said southwest quarter;
Thence westerly along the southerly line of the northeast quarter
of Section 28 of said Township and Range, to the northeast corner
of the west half of the east half of the southeast quarter of said
Section 28;
Thence southerly and westerly along the easterly and southerly
lines of said west half of the east half of the southeast quarter of
said Section 28 to the southwest corner of said west half;
Thence southerly and westerly along the easterly and southerly
lines of the northwest quarter of the northeast quarter of Section
33 of said Township and Range, to the northeast corner of the
northwest quarter of the southwest quarter of the northeast quarter
of said Section 33;
Thence southerly, westerly, and northerly along the easterly,
southerly, and westerly lines of last said northwest quarter of the
southwest quarter of the northeast quarter to the northwest corner
thereof,
Thence northerly and easterly along the westerly and northerly
lines of the northwest quarter of the northeast quarter of said
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Section 33 to the southwest corner of the east half of the southwest
quarter of the southeast quarter of said Section 28;
Thence northerly and easterly along the westerly and northerly
lines of last said east half to the northeast corner thereof;
Thence northerly along the westerly line of the northeast quarter
of the southeast quarter of said Section 28 to the northwest corner
thereof,
Thence northerly and easterly along the westerly and northerly
lines of the south half of the southeast quarter of the northeast
quarter of said Section 28 to the southwest corner of the northeast
quarter of the southeast quarter of the northeast quarter of said
Section 28;
Thence northerly along the westerly line of the northeast quarter
of the southeast quarter of the northeast quarter to the northwest
corner thereof,
Thence northerly and easterly along the westerly and northerly
lines of the southeast quarter of the northeast quarter of the
northeast quarter of said Section 28 to the northeast corner of the
southeast quarter of the northeast quarter of the northeast quarter
of said Section 28;
Thence northerly along the easterly line of said Section 28 to
the northeast corner of said Section 28;
Thence northerly along the easterly lines of Sections 22 and 15
of said Township and Range, to the northwest corner of the
southwest quarter of said Section 15;
Thence easterly along the east -west centerline of said Section
15 to the east quarter corner of said Section 15;
Thence southerly along the easterly line of said Section 15 to
the southeast corner of said Section 15;
Thence southerly along the westerly line of Section 23 of said
Township and Range to the west quarter corner of said Section
23;
Thence easterly along the northerly line of the southwest quarter
of said Section 23 to the northeast corner of the west half of the
northwest quarter of the southwest quarter of said Section 23;
Thence southerly along the easterly line of said west half of the
northwest quarter of the southwest quarter to the southeast corner
of said west half,
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1 Thence easterly along the northerly line of the southwest quarter
2 of the southwest quarter of said Section 23 to the northeast corner
3 of said southwest quarter of the southwest quarter of Section 23;
4 Thence southerly along the easterly line of said southwest quarter
5 of the southwest quarter of Section 23 to the northwest corner of
6 the southwest quarter of the southeast quarter of the southwest
7 quarter of said Section 23;
8 Thence easterly and southerly along the northerly and easterly
9 lines of said southwest quarter of the southeast quarter of the
10 southwest quarter of Section 23 to the southeast corner of said
11 southwest quarter of the southeast quarter of the southwest quarter
12 of Section 23;
13 Thence easterly along the southerly line of said Section 23 to
14 the southeast corner of said Section 23;
15 Thence southerly along the westerly line of the northwest quarter
16 of Section 25 of said Township and Range, to the southwest corner
17 of said northwest quarter of Section 25;
18 Thence easterly along the northerly line of the southwest quarter
19 of said Section 25 to the northeast corner of said southwest quarter
20 of Section 25;
21 Thence southerly and easterly along the westerly and southerly
22 lines of the northwest quarter of the southeast quarter of said
23 Section 25 to the southeast corner of said northwest quarter of the
24 southeast quarter of Section 25;
25 Thence southerly along the easterly line of the southwest quarter
26 of the southeast quarter of said Section 25 to the southeast corner
27 of said southwest quarter of the southeast quarter of Section 25;
28 Thence along the southerly line of the southeast quarter of said
29 Section 25 to the southeast corner of said Section 25;
30 Thence easterly along the northerly line of Section 31 of said
31 Township and Range, to the northeast corner of said Section 31;
32 Thence southerly along the easterly line of said Section 31 to
33 the northwest corner of Section 6, Township 5 North, Range 16
34 West, San Bernardino Meridian;
35 Thence easterly along the northerly line of said Section 6 to the
36 northeast corner of said Section 6;
37 Thence northerly along the northerly prolongation of the east
38 line of said Section 6 to a point in the easterly prolongation of the
39 north line of said Section 31, Township 6 North, Range 17 West,
40 San Bernardino Meridian;
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Thence easterly along last said easterly prolongation of the north
line of Section 31 to a point in the northerly prolongation of the
east line of Section 4, Township 5 North, Range 16 West, San
Bernardino Meridian;
Thence southerly along last said northerly prolongation of the
east line of Section 4 to the northwest corner of said Section 4;
Thence westerly along the northerly line of said Section 4 to the
north quarter corner of said Section 4;
Thence southerly along the north -south centerline of said Section
4 to the south quarter corner of said Section 4;
Thence southerly along the east line of the northwest quarter of
Section 9 of said Township and Range, to the southeast corner of
said northwest quarter of Section 9;
Thence westerly along the southerly line of said northwest
quarter of Section 9 to the southwest corner of said northwest
quarter of Section 9;
Thence southerly along the east line of the southeast quarter of
Section 8 of said Township and Range, to the southeast corner of
said southeast quarter of Section 8;
Thence southerly along the easterly line of the northeast quarter
of Section 17 of said Township and Range, to the southeast corner
of said northeast quarter of Section 17;
Thence westerly along the southerly line of said northeast quarter
of Section 17 to the southwest corner of said northeast quarter of
said Section 17;
Thence westerly along the southerly line of the northwest quarter
of said Section 17 to the southwest corner of said northwest quarter
of Section 17;
Thence southerly along the easterly line of the southeast quarter
of Section 18 of said Township and Range, to the southeast corner
of said southeast quarter of Section 18;
Thence southerly along the easterly line of the northeast quarter
of Section 19 of said Township and Range, to the southeast corner
of said northeast quarter of Section 19;
Thence westerly along the southerly line of said northeast quarter
of Section 19 to the southwest corner of said northeast quarter of
Section 19;
Thence southerly along the easterly line of the southwest quarter
of said Section 19 to the southeast corner of said southwest quarter
of Section 19;
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1 Thence southerly along the easterly line of the northwest quarter
2 of Section 30 of said Township and Range, to the southeast corner
3 of said northwest quarter of Section 30;
4 Thence westerly along the southerly line of said northwest
5 quarter of Section 30 to the northwest corner of the northeast
6 quarter of the southwest quarter of said Section 30;
7 Thence southerly along the westerly line of said northeast quarter
8 of the southwest quarter to the southwest corner of said northeast
9 quarter of the southwest quarter of Section 30;
10 Thence southerly along the westerly line of the southeast quarter
11 of the southwest quarter of said Section 30 to the southwest corner
12 of said southeast quarter of the southwest quarter of Section 30;
13 Thence easterly along the northerly lines of Sections 31, 32, 33,
14 34, 35, and 36 of Township 5 North, Range 16 West, San
15 Bernardino Meridian and Sections 31 and 32 of Township 5 North,
16 Range 15 West, San Bernardino Meridian, to the northeast corner
17 of the northwest quarter of said Section 32, Township 5 North,
18 Range 15 West, San Bernardino Meridian;
19 Thence northerly to the northwest corner of the southeast quarter
20 of Section 29, Township 5 North, Range 15 West, San Bernardino
21 Meridian;
22 Thence easterly to the northeast corner of said southeast quarter
23 of Section 29;
24 Thence northerly to the northeast corner of said Section 29;
25 Thence easterly along the northerly lines of Sections 28 and 27,
26 said Township and Range, to the northwest corner of the northeast
27 quarter of said Section 27;
28 Thence southerly to the southwest corner of the southeast quarter
29 of said Section 27;
30 Thence easterly along the southerly lines of Sections 27, 26, and
31 25 of said Township and Range, and easterly along the northerly
32 line of Section 31, Township 5 North, Range 14 West, San
33 Bernardino Meridian, to the northeast corner of the northwest
34 quarter of the northeast quarter of said Section 31;
35 Thence southerly to the southeast corner of the southwest quarter
36 of the southeast quarter of said Section 31;
37 Thence easterly to the north quarter corner of Section 5,
38 Township 4 North, Range 14 West, San Bernardino Meridian;
39 Thence southerly to the south quarter corner of said Section 5;
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1 Thence easterly along the northerly lines of Sections 8 and 9 of
2 said Township and Range, to the north quarter corner of said
3 Section 9;
4 Thence southerly along the north -south quarter section lines of
5 said Section 9 and Section 16 of said Township and Range, to the
6 center of said Section 16;
7 Thence westerly along the east -west quarter section lines of said
8 Section 16 and Section 17 of said Township and Range, to the
9 west quarter corner of said Section 17;
10 Thence southerly to the southeast corner of Section 18 of said
11 Township and Range;
12 Thence westerly to the north quarter corner of Section 19 of said
13 Township and Range;
14 Thence southerly along the north -south quarter section lines to
15 the south quarter corner of said Section 19;
16 Thence westerly to the northeast corner of Section 25, Township
17 4 North, Range 15 West, San Bernardino Meridian;
18 Thence southerly along the easterly lines of said Section 25 and
19 along the easterly lines of Section 36 of said Township and Range,
20 and along the easterly lines of Section 1, Township 3 North, Range
21 15 West, San Bernardino Meridian, to the southeast corner of said
22 Section 1;
23 Thence westerly along the southerly lines of said Section 1 and
24 along the southerly lines of Sections 2, 3, 4, and 5 of said Township
25 and Range, to the southeast corner of Section 6 of said Township
26 and Range;
27 Thence southerly along the easterly lines of Sections 7 and 18
28 of said Township and Range, to the southeast corner of said Section
29 18;
30 Thence westerly along the southerly lines of said Section 18 to
31 the southwest corner of said Section 18;
32 Thence southwesterly to the most northerly corner of the
33 boundary of the City of Los Angeles;
34 Thence southwesterly along said City boundary to its westerly
35 intersection of the southerly line of the north half of the north half
36 of said Section 24;
37 Thence westerly to the southwest corner of the northwest quarter
38 of the northwest quarter of said Section 24;
39 Thence northerly to the northwest corner of said Section 24;
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Thence westerly to the south quarter corner of Section 14,
Township 3 North, Range 16 West, San Bernardino Meridian;
Thence northerly to the northeast corner of the southeast quarter
of the southwest quarter of said Section 14;
Thence westerly to the northwest corner of the southwest quarter
of the southwest quarter of said Section 14;
Thence northerly to the west quarter corner of said Section 14;
Thence westerly to the northwest corner of the northeast quarter
of the southeast quarter of Section 15 of said Township and Range;
Thence southerly to the southeast corner of the northwest quarter
of the southeast quarter of said Section 15;
Thence westerly to the northwest corner of the southwest quarter
of the southeast quarter of said Section 15;
Thence southerly to the south quarter corner of said Section 15;
Thence westerly to the southwest corner of the southeast quarter
of the southwest quarter of said Section 15;
Thence northerly to the northwest corner of the northeast quarter
of the northwest quarter of said Section 15;
Thence westerly along the northerly line of said Section 15 and
along the northerly lines of Section 16 of said Township and Range,
to the northwest corner of said Section 16;
Thence northerly to the northeast corner of Section 8 of said
Township and Range;
Thence westerly along the southerly lines of Sections 5 and 6
of said Township and Range, to the southwest corner of the
southeast quarter of the southeast quarter of said Section 6;
Thence northerly to the northwest corner of the northeast quarter
of the southeast quarter of said Section 6;
Thence westerly to the southeast corner of the southwest quarter
of the northwest quarter of said Section 6;
Thence northerly along projected section lines through said
Rancho San Francisco to the southeast corner of the northwest
quarter of the northwest quarter of Section 31, Township 4 North,
Range 15 West, San Bernardino Meridian;
Thence easterly to the southwest corner of the northeast quarter
of the northeast quarter of said Section 31;
Thence northerly to the northwest corner of the northeast quarter
of the northeast quarter of said Section 31;
Thence easterly to the northeast corner of said Section 31;
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Thence northerly along the easterly line of Section 30 of said
Township and Range, to the southerly corner of Lot 14 as shown
on the map filed in Book 25, Page 9 of Record of Surveys, Records
of Los Angeles County;
Thence northwesterly, southwesterly and southerly along the
northeasterly, northwesterly, and westerly boundary lines of that
certain parcel of land known as the Pico Project No. 1 as shown
in the map filed in Book 27, Pages 19, 20, and 39 of Record of
Surveys, Records of Los Angeles County, to the southeast corner
of Parcel 11 as shown on the map filed in Book 27, Page 20 of
said Record of Surveys;
Thence westerly along the south line of said last mentioned
Parcel 11 to the northeast corner of Parcel 12 as shown on the map
filed in Book 27, Page 21 of said Record of Surveys;
Thence southerly along the easterly line of last mentioned Parcel
12 and along the most easterly line of Parcel 13 as shown on last
mentioned Record of Survey to the southeasterly corner of said
Parcel 13;
Thence westerly along the southerly line of said Parcel 13 to the
westerly corner thereof;
Thence northwesterly along the southwesterly line of Parcel 15,
as shown on last mentioned Record of Survey, 603.95 feet to said
boundary line of the County of Los Angeles;
Thence northwesterly along said boundary line to the east -west
centerline of projected Section 9, Township 3 North, Range 17
West, San Bernardino Meridian, said centerline being North 21'
57' West 2764 (plus or minus) feet along said county line from the
southwesterly line of the land described in the deed to the Newhall
Land and Farming Company recorded June 21, 1910 in Book 127,
Page 104 of Deeds, Records of Ventura County;
Thence westerly, leaving said county line along said centerline
of projected Section 9 and projected Section 8, Township 3 North,
Range 17 West, San Bernardino Meridian, to said southwesterly
line of Newhall;
Thence northwesterly along said southwesterly line North 54'
28' West to the southeasterly line of Tract N in Rancho Simi, per
map recorded in Book 3, Page 7 of Maps, Records of Ventura
County;
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Thence southwesterly along the southeasterly line of said Tract
N South 700 26' West to the east -west centerline of said Section
8;
Thence westerly along said centerline to the west line of said
Section 8;
Thence southerly along the west line to the southerly line of said
Tract N;
Thence South 70' 26' West and west along the southerly line of
said Tract N to the southwest corner of projected Section 12,
Township 3 North, Range 18 West, San Bernardino Meridian;
Thence north and leaving the southerly line of said Tract N to
the northwest corner of said Section 12, being the southeast corner
of projected Section 2, Township 3 North, Range 18 West, San
Bernardino Meridian;
Thence west along the south line of said Section 2 to the
southwest corner of said Section 2;
Thence north along the west line of said Section 2 to the
southerly line of said Rancho San Francisco;
Thence westerly along the said Rancho San Francisco to a three
inch pipe marked "N", set at the southerly terminus of the westerly
line of the parcel marked the Newhall Land and Farming Company
on Licensed Surveyor's Map filed in Book 3, Page 74 of Record
of Surveys, Records of Ventura County;
Thence northerly along said westerly line North 0° 13' 33" East
11,446.56 feet to the southerly line of the Southern Pacific Railroad
Company (Saugus branch) Right of Way, 100 feet wide;
Thence in a general easterly and northeasterly direction along
the southerly and southeasterly line of said Southern Pacific
Railroad Company Right of Way, to the intersection with the third
course, recited as "South 28' 08' East 1,089.96 feet" in deed to
J.S. Sharp recorded March 26, 1921, in Book 180, Page 101 of
Deeds, Records of Ventura County;
Thence along the boundary of said deed the following three
courses, South 28' 08' East 989.96 feet to the southerly terminus
of said third course;
Thence North 43' 58' East 247.20 feet to an angle point;
Thence North 26' 04' East 1638.3 feet to the northerly line of
said Southern Pacific Railroad Company Right of Way;
Thence in a general easterly and southeasterly direction along
the northerly and northeasterly line of said Southern Pacific
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Railroad Company Right of Way to a one inch iron pipe set at the
most southerly corner of the land described in deed to George B.
Larinan recorded February 8, 1957, in Book 141, Page 238 of
Official Records, Records of Ventura County;
Thence along the boundary of last mentioned deed the following
six courses, North 27' 44' East 239.74 feet to a one and one-half
inch iron pipe set at an angle point;
Thence North 3° 40' West 686.99 feet to a one and one-half inch
iron pipe set at an angle point;
Thence North 9° 07' 40" West 812.92 feet to a one and one-half
inch iron pipe set at an angle point;
Thence North 57' 03' 20" East 752.49 feet to a one inch iron
pipe set at an angle point;
Thence North 60' 28' 45" East 2567.91 feet to a one inch iron
pipe set at an angle point;
Thence North 18' 45' 20" East 1554.65 feet to a two inch iron
pipe set on the northerly line of said Rancho San Francisco at the
most easterly corner of said land of George B. Larinan;
Thence easterly along said northerly line North 87' 13' 50" East
3097.6 feet, more or less, to the point of beginning.
Except therefrom the west half of the west half of the northeast
quarter of Fractional Section 15, Township 4 North, Range 17
West, San Bernardino Meridian.
Also except therefrom the southeast quarter of the southeast
quarter of Section 10, Township 4 North, Range 17 West, San
Bernardino Meridian.
Sec. 4. (a) The Castaic Lake Water Agency created pursuant
to the Castaic Lake Water District Law (Chapter 28 of the First
Extraordinary Session of the Statutes of 1962) and the Newhall
County Water District created pursuant to the County Water
District Law (Division 12 (commencing with Section 30000) of
the Water Code), shall be reorganized into the Santa Clarita Valley
Water District and shall no longer operate as separate entities or
exercise independent functions.
(b) The district shall be the successor to the Castaic Lake Water
Agency and the Newhall County Water District for the purpose
of succeeding to all of the rights, duties, obligations, contracts,
responsibilities, assets, entitlements, and liabilities of the Castaic
Lake Water Agency and the Newhall County Water District,
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including, but not limited to, the performance or payment of any
outstanding bonds and notes.
(c) All property, whether real or personal, and including all
moneys such as cash on hand and moneys due uncollected, and
assets and liabilities of the Castaic Lake Water Agency and the
Newhall County Water District shall be transferred to and vested
in the district.
(d) All employees of the Castaic Lake Water Agency and the
Newhall County Water District shall become employees of the
district.
(e) The district shall continue to levy, impose, or fix and collect
any previously authorized charge, fee, assessment, or tax approved,
imposed, and levied by the Castaic Lake Water Agency or the
Newhall County Water District, or both, including, but not limited
to, any rates, fees, and charges for the provision of water. Any
charge, fee, assessment, or tax authorized and in effect for the
Castaic Lake Water Agency or the Newhall County Water District
shall remain in effect until otherwise modified, increased, or
terminated by the board of directors of the district.
(f) The district shall be the successor in interest to Castaic Lake
Water Agency's water supply contract with the Department of
Water Resources dated August 3, 1962, as thereafter amended, for
a water supply from the State Water Resources Development
System, including all of the rights, responsibilities, and obligations
contained in the contract, and the district shall succeed to the legal
authority held by Castaic Lake Water Agency for the performance
and enforcement of that contract.
(g) The indebtedness of the Newhall County Water District and
the Santa Clarita Water Division, a retail division of the Castaic
Lake WaterAgency, that exists as of December 31, 2017, including
acquisition costs, tax obligations, and debt financing of capital
improvement projects, shall be borne by retail divisions of the
district that correspond with the Newhall County Water District
and Santa Clarita Water Division areas, respectively, and paid for
from the revenues of the corresponding retail divisions. Any
indebtedness incurred by the district shall not be limited by this
subdivision.
(h) If any other retail water supplier is incorporated into the
district, the indebtedness of the retail water supplier that exists
immediately before the incorporation shall be borne by the
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customers in the area that corresponds with the boundaries of the
retail water supplier and paid for from the revenues of that area.
Sec. 5. The district is divided into three divisions as follows:
(a) The first division shall include the real property described
as follows:
Beginning at the intersection of Newhall Ranch Road and
Interstate 5; thence proceeding easterly along Newhall Ranch Road
to Golden Valley Road; thence proceeding northerly along Golden
Valley Road to Ermine Street; thence proceeding easterly along
Ermine Street and Ermine Place and the extension of Ermine Place
to Whites Canyon Road; thence proceeding along Whites Canyon
Road to Nadal Street; thence proceeding easterly along Nadal
Street to Bermina Avenue; thence proceeding southerly along
Bermina Avenue to Delight Street; thence proceeding westerly
along Delight Street to Bakerton Avenue; thence proceeding
southerly along Bakerton Avenue to the Bekerton Avenue right
of way just south of the power lines approximately 135 feet south
of Kimbrough Street; thence proceeding westerly and southerly
along the right of way behind the parcels on the east side of
Crossglade Avenue until Allenwick Avenue; thence proceeding
southerly along Allenwick Avenue to Vicci Street; thence
proceeding westerly along Vicci Street to Crossglade Avenue;
thence proceeding southerly along Crossglade Avenue to its dead
end and continuing due south into the parking lot until its
conclusion; thence proceeding westerly and southerly and easterly
along the northern, western and southern borders of Census Block
060379200351017, going around the two apartment buildings;
thence proceeding easterly along the riverbed to Highway 14;
thence proceeding northeasterly along Highway 14 to the district's
eastern border; thence proceeding clockwise along the district's
border to the intersection of Highway 14 and the district's southern
border; thence proceeding northerly along Highway 14 to Newhall
Avenue; thence proceeding northwesterly along Newhall Avenue
to Main Street; thence proceeding northerly along Main Street to
Lyons Avenue; thence proceeding westerly along Lyons Avenue
to Orchard Village Road; thence proceeding northerly along
Orchard Village Road to McBean Parkway; thence proceeding
westerly along McBean Parkway to Interstate 5; thence proceeding
northerly along Interstate 5 to the point of origin.
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(b) The second division shall include the real property described
as follows:
Beginning at the intersection of the district's northern border
and the Los Angeles Aqueduct easement on the western border of
Census Block 060379200152002, between Harmony Way and
Evening Star Court; thence proceeding southerly along the
Aqueduct easement to Copper Hill Drive; thence proceeding
westerly along Copper Hill Drive to McBean Parkway; thence
proceeding southerly along McBean Parkway to Newhall Ranch
Road; thence proceeding easterly along Newhall Ranch Road to
Golden Valley Road; thence proceeding northerly along Golden
Valley Road to Ermine Street; thence proceeding easterly along
Ermine Street and Ermine Place and the extension of Ermine Place
to Whites Canyon Road; thence proceeding along Whites Canyon
Road to Nadal Street; thence proceeding easterly along Nadal
Street to Bermina Avenue; thence proceeding southerly along
Bermina Avenue to Delight Street; thence proceeding westerly
along Delight Street to Bakerton Avenue; thence proceeding
southerly along Bakerton Avenue to the Bekerton Avenue right
of way just south of the power lines approximately 135 feet south
of Kimbrough Street; thence proceeding westerly and southerly
along the right of way behind the parcels on the east side of
Crossglade Avenue until Allenwick Avenue; thence proceeding
southerly along Allenwick Avenue to Vicci Street; thence
proceeding westerly along Vicci Street to Crossglade Avenue;
thence proceeding southerly along Crossglade Avenue to its dead
end and continuing due south into the parking lot until its
conclusion; thence proceeding westerly and southerly and easterly
along the northern, western and southern borders of Census Block
060379200351017, going around the two apartment buildings;
thence proceeding easterly along the riverbed to Highway 14;
thence proceeding northeasterly along Highway 14 to the district's
eastern border; thence proceeding counter -clockwise along the
district's border to the point of origin.
(c) The third division shall include the real property described
as follows:
Beginning at the intersection of the district's northern border
and the Los Angeles Aqueduct easement on the western border of
Census Block 060379200152002, between Harmony Way and
Evening Star Court; thence proceeding southerly along the
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Aqueduct easement to Copper Hill Drive; thence proceeding
westerly along Copper Hill Drive to McBean Parkway; thence
proceeding southerly along McBean Parkway to Newhall Ranch
Road; thence proceeding westerly along Newhall Ranch Road to
Interstate 5; thence proceeding southerly along Interstate 5 to
McBean Parkway; thence proceeding easterly along McBean
Parkway to Orchard Village Road; thence proceeding southerly
along Orchard Village Road to Lyons Avenue; thence proceeding
easterly along Lyons Avenue to Main Street; thence proceeding
southerly along Main Street to Newhall Avenue; thence proceeding
southeasterly along Newhall Avenue to Highway 14; thence
proceeding southerly along Highway 14 to the district's southern
border; thence proceeding clockwise along the district's border to
the point of origin.
Sec. 6. The board of directors shall adjust the division
boundaries described in Section 5 by resolution pursuant to Chapter
8 (commencing with Section 22000) of Division 21 of the Elections
Code.
Sec. 7. As used in this act:
(a) "Private corporation" means and includes any private
corporation organized under federal law or the laws of any state.
(b) "Public agency" means and includes the federal government,
the State of California, a county, a city, a public corporation, the
Metropolitan Water District of Southern California, or other public
district of this state.
(c) "Purveyor" means the Los Angeles County Waterworks
District No. 36, which is a retail water supplier that has facilities
connected to the district's water transmission system and is under
contract with the district for water.
Sec. 8. (a) The district shall be governed by a board of directors
that shall initially consist of 15 members as follows:
(1) The five members of the Newhall County Water District
board of directors in office as of December 31, 2017.
(2) The appointed member representing the purveyor described
in subdivision (a) of Section 10 and the nine elected members of
the Castaic Lake Water Agency board of directors in office as of
December 31, 2017.
(b) Each elected member of the board of directors shall be a
resident or owner of real property within the district's service
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territory and shall hold office until his or her successor is elected
pursuant to Section 9.
(c) Each of the initial members of the board of directors of the
district, except for the initial appointed member, are deemed to be
designated as a director from the division, as described in Section
5, in which his or her residence is located.
(d) Each of the initial members of the board of directors of the
district, except for the initial appointed member, shall hold office
as follows:
(1) The directors whose respective terms as a member of the
Castaic Lake Water Agency or Newhall County Water District
board of directors would have expired following the 2018 general
election shall expire following the 2020 general election.
(2) The directors whose respective terms as a member of the
Castaic Lake Water Agency or Newhall County Water District
board of directors would have expired following the 2020 general
election shall expire following the 2022 general election.
(3) If any elected initial member of the board of the district
resigns, vacates, or is removed from office before the expiration
of his or her initial term, the board may, in its discretion, decide
not to appoint a successor. The board shall appoint a successor if
the division in which the vacancy occurs will have less than four
members representing the division on the board of directors.
Sec. 9. (a) All elected successors of the first board of directors
shall be elected at the time and in the manner provided in the
Uniform District Election Law (Part 4 (commencing with Section
10500) of Division 10 of the Elections Code).
(b) Successors to the first board of directors shall be elected by
the voters for each division as follows:
(1) Two directors elected for each division at the 2020 general
election.
(2) Two directors elected for each division at the 2022 general
election.
(c) Each elected director shall have his or her primary residence
in and be an elector in the division he or she represents. Each
elected director shall serve a four year term from the date of taking
office and until the election and qualification of a successor. A
director shall take office on the first Monday of the January after
an election.
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(d) The board may, after January 1, 2023, by resolution reduce
the number of elected directors from 12 to nine, comprised of three
members for each division in accordance with Section 14.
(e) Any vacancy in the board of directors shall be filled by a
majority vote of the remaining directors in accordance with
subdivision (d) of Section 1780 of the Government Code.
(f) If a director's place of residence, as defined in Section 244
of the Government Code, is moved outside of that director's
division where elected from a division, and if within 180 days of
the move the director fails to reestablish a place of residence within
the director's division, it shall be presumed that a permanent
change of residence has occurred and that a vacancy exists on the
board of directors pursuant to Section 1770 of the Government
Code.
Sec. 10. (a) The initial board of directors of the district shall
include the Castaic Lake Water Agency director who was
nominated by the purveyor and in office as a Castaic Lake Water
Agency director as of December 31, 2017. This initial appointed
director shall serve an initial term of one year that expires on
January 1, 2019. The subsequent terms for the director nominated
by the purveyor shall be four years.
(b) After the initial appointed director's term expires on January
1, 2019, the office of the appointed director shall be filled as
follows:
(1) Not more than 90 or less than 30 days before the expiration
of the term of office of the appointed director, the purveyor shall
submit a nominee for a successor appointed director to the board
of directors. A nominee of the purveyor may be a director, officer,
agent, or employee of the purveyor and shall be a registered voter
within the County of Los Angeles or the County of Ventura. Any
appointed director whose term is expiring may be nominated by
the purveyor for reappointment by the board of directors as the
successor appointed director. If a vacancy occurs in the office of
appointed director, the purveyor shall nominate a person for
appointment to the vacant office not more than 60 days after the
occurrence of the vacancy.
(2) The board of directors shall appoint the nominee within 30
days after the nomination is submitted, or may within the same
time period by resolution reject the nominee for cause, which shall
be documented in the resolution by a detailed statement of reasons.
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If the board of directors rejects the nominee, the purveyor shall
promptly submit a second and different nominee to the board of
directors. The board of directors shall appoint the second nominee
within 30 days after the second nomination is submitted, or may
within the same time period by resolution likewise reject that
second nominee for cause, which shall be documented in the
resolution by a detailed statement of reasons. If the board of
directors rejects the nominee, the purveyor shall select a third and
still different nominee, which nominee shall be entitled without
further board action to take an oath of office as required by law
and to thereafter serve as an appointed director of the district. A
successor appointed director shall take office on the first Monday
in January in odd -numbered years, or as soon thereafter as
qualifying by taking the required oath of office. A successor
appointed director appointed to or otherwise entitled to fill a
vacancy shall take office immediately upon taking the required
oath of office. A nominee of a purveyor who is the general manager
of the purveyor shall be rejected for appointment only on the
ground that the nominee is legally disqualified from holding the
office of director by a provision of applicable law.
(c) An incumbent in the office of appointed director shall be
subject to recall by the voters of the entire district in accordance
with Division 11 (commencing with Section 11000) of the
Elections Code, except that any vacancy created by a successful
recall shall be filled in accordance with subdivision (b).
(d) Notwithstanding any other law, the provisions ofArticle 4.7
(commencing with Section 1125) of Chapter 1 of Division 4 of
Title 1 of the Government Code shall not be applicable to the
appointed director. The fact the appointed director is
simultaneously a director, officer, agent, or employee of the
purveyor shall not in any way constitute the holding of
incompatible offices under or for purpose of any common law
doctrine prohibiting the simultaneous holding of these offices, and
shall not disqualify the director from serving as a director of the
district or from discharging fully the responsibilities of the office
of appointed director with respect to any matter coming before the
board of directors of the district for consideration, decision,
determination, or other form of action.
Sec. 11. (a) A person who may vote at any district election
held under the provisions of this act shall be a voter within the
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meaning of the Elections Code, residing in the division of the
district in which he or she casts his or her vote. For the purpose of
registering voters who shall be entitled to vote at district elections,
the county elections official is authorized, in any county in which
there is a district, to indicate upon the affidavit of registration
whether the voter is a voter of a district.
(b) In case the boundary line of a district crosses the boundary
line of a county election precinct, only those voters within the
district and within the precinct who are registered as being voters
within the district shall be permitted to vote, and for that purpose
the county elections official may provide two sets of ballots within
those precincts, one containing the names of candidates for office
in the district, and the other not containing those names, and it
shall be the duty of the election officers in those precincts to furnish
only those persons registered as voters within the district with the
ballots upon which are printed the names of the candidates for
office in the district.
(c) In a county in which the district is located, the county
elections official is hereby given authority to have printed upon
the official ballots provided for voters at elections for directors a
heading in the same form as that provided by the Elections Code
for nonpartisan officers, which heading shall be marked "Santa
Clarita Valley Water District," with a subheading "For a Member
of the Board of Directors, Division (here inserting the number
of the division ) — Vote for One," and beneath which shall appear
the names of the candidates for the office of member of the board
for the division of the district, with the appropriate blank space
for the writing in of the name of a candidate if desired by the
voters, and with a voting square placed opposite the space. The
ballots thus provided shall be furnished by the precinct officers
only to those voters within their respective precincts who shall
appear on the register as duly registered voters within that division
of the district, and in precincts that lie partly within that district
and partly without the precinct board shall be supplied with two
kinds of ballots by the county elections official, one of which shall
contain the matters hereinabove set forth for the use of voters of
the district, and the other of which shall be without the heading
containing the names of candidates for the office of member of
the board, and which shall be furnished to those voters who are
not voters of the district and who are voters of the precinct.
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Sec. 12. The board of directors shall hold its first meeting as
soon as possible at which it shall choose one of its members to be
president. The board of directors may appoint from its members
additional officers and may define the duties of those officers. The
board of directors shall provide for the time and place of holding
its meetings and the manner in which its special meetings may be
called. All legislative sessions of the board of directors shall be
held in accordance with the Ralph M. Brown Act (Chapter 9
(commencing with Section 54950) of Part 1 of Division 2 of Title
5 of the Government Code). A majority of the board of directors
shall constitute a quorum for the transaction of business.
Sec. 13. (a) The board of directors may act by ordinance,
resolution, or motion. On all ordinances the roll shall be called
and the ayes and noes recorded in the journal of the proceedings
of the board of directors. Resolutions and motions may be adopted
by voice vote, but on demand of any member the roll shall be
called. Except as provided in Section 14, an ordinance, motion, or
resolution shall not be passed or become effective without the
affirmative vote of a majority of the membership of the board.
(b) The enacting clause of all ordinances passed by the board
shall be, `Be it ordained by the Board of Directors of the Santa
Clarita Valley Water District as follows:"
(c) Each member of the board of directors shall receive
compensation equal to the amount of compensation authorized for
a Castaic Lake Water Agency director as of December 31, 2017,
for each meeting of the board attended and for each day's service
rendered as a director at the request of the board. This initial
compensation may be adjusted in accordance with Chapter 2
(commencing with Section 20200) of Division 10 of the Water
Code.
Sec. 14. (a) The board of directors may take action on the
following items with an affirmative vote of four -fifths of the
membership of the board:
(1) Authorizing the district to support or take action to further
any amendments or efforts to amend this section.
(2) Issuing new debt in excess of ten million dollars
($10,000,000) at any one time that relates to retail functions of the
district, excluding the refinancing of existing debt. The threshold
of ten million dollars ($10,000,000) shall be adjusted annually in
proportion to the assessed value of real property within the district.
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(3) For the retail division of the district that corresponds with
the Newhall County Water District area, changes to the volumetric
retail rate structure that existed for the Newhall County Water
District area as of December 31, 2017. This paragraph does not
include changes to the tiered retail rate structure.
(4) Reducing the number of elected directors of the district from
12 to nine members in accordance with Section 9.
(b) On or before January 1, 2019, the district shall develop a
rate -setting process that includes an independent ratepayer advocate
to advise the board of directors and provide information to the
public before the adoption of new rates. The ratepayer advocate
shall be selected by the board of directors and shall serve in an
advisory capacity only. The board of directors shall develop and
adopt any necessary rules and procedures to define the role of the
ratepayer advocate. The board of directors shall not eliminate the
rate -setting process or ratepayer advocate developed pursuant to
this subdivision without an affirmative vote of four -fifths of the
membership of the board of directors.
(c) Until December 31, 2024, the board of directors may
dispense with the four -fifths vote requirement for the actions
described in subdivisions (a) and (b) at any time upon an
affirmative vote of four -fifths of the membership of the board of
directors.
(d) On and after January 1, 2025, the board of directors may at
any time dispense with the four -fifths vote required for any action
described in subdivision (a) by a majority vote of the membership
of the board.
Sec. 15. (a) No informality in any proceeding or informality
in the conduct of any election, not substantially affecting adversely
the legal rights of any citizen, shall be held to invalidate the
incorporation of the district and the legal existence of the district
and all proceedings in respect to the incorporation and the legal
existence of the district shall be held to be valid and in every
respect legal and incontestable.
(b) An action to determine the validity of any bonds, warrants,
promissory notes, contracts, or other evidences of indebtedness of
the kinds authorized by this act may be brought pursuant to Chapter
9 (commencing with Section 860) of Title 10 of Part 2 of the Code
of Civil Procedure.
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Sec. 16. At its first meeting, or as soon as practicable, the board
of directors shall, by a majority vote of the membership of the
board, appoint a general manager, secretary, and treasurer or
auditor. The board shall define the duties of these appointees and
fix their compensation in accordance with Division 12
(commencing with Section 30000) of the Water Code. The board
may employ additional assistants, employees, engineers, attorneys,
professionals, and other consultants as the board deems necessary
to efficiently maintain and operate the district.
Sec. 17. Except as otherwise provided in this act, the district
has and may exercise the powers expressly granted or necessarily
implied in, and may operate in accordance with, Part 5
(commencing with Section 31000), Part 6 (commencing with
Section 31300), Part 7 (commencing with Section 31650), and
Part 8 (commencing with Section 32200) of the County Water
District Law (Division 12 (commencing with Section 30000)) of
the Water Code.
Sec. 18. (a) The primary purpose of the district includes, but
is not limited to, to acquire, hold, and utilize water and water rights,
including, but not limited to, water available from the state under
the State Water Resources Development System, and to provide,
sell, manage, and deliver surface water, groundwater, and recycled
water for municipal, industrial, domestic, and other purposes at
retail and wholesale within the territory of the district.
(b) The district shall have the power to do all of the following:
(1) To construct, operate, and maintain works to develop energy,
including, but not limited to, hydroelectric, solar, wind, and other
renewable sources, inside or outside the district for use by the
district in the operation of its works or as a means of assisting in
financing the construction, operation, and maintenance of its
projects for the control, conservation, diversion, and transmission
of water and to enter into contracts for the sale of the energy. The
energy may be marketed only at wholesale to any public agency
or private entity, or both.
(2) To enter into contracts with any public agency or private
entity engaged in the generation or distribution of electric energy
for the right to use falling water, facilities, or real property of the
district, either inside or outside the district, for energy generation
or distribution purposes.
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(3) To develop, treat, distribute, manage, and reclaim water,
and to store and recover water from groundwater basins located
wholly or partially inside or outside the boundaries of the district
and, in exercising that power, to make and enter into contracts
allowing that storage and recovery.
(4) To join with one or more public agencies, private
corporations, or other persons for the purpose of carrying out any
of the powers of the district, and for that purpose to contract with
other public agencies or private corporations or persons for the
purpose of financing those acquisitions, constructions, and
operations. The contracts may provide for contributions to be made
by each party to the contract and for the division and apportionment
of the expenses of the acquisitions and operations, and the division
and apportionment of the benefits, the services and products from
the contract, and may provide for any agency to effect the
acquisitions and to carry on the operations, and shall provide in
the powers and methods of procedure for the agency the method
by which the agency may contract. The contracts with other public
agencies or private corporations or persons may contain other and
further covenants and agreements as may be necessary or
convenient to accomplish the purposes of the contract. In addition
to and without limiting all of the other powers of the district, the
district may contract with the State of California for delivery of
water under the State Water Resources Development System.
Contracts under this subdivision include those made with the
federal government under the Federal Reclamation Act of June
17, 1902, as amended, or any other act of the United States
Congress enacted permitting cooperation.
(5) To require reporting to the district of all production,
distribution, and reclamation of water within the district in excess
of 10 acre-feet per annum.
(6) To develop groundwater management plans within the
district that may include, but are not limited to, limitation,
conservation, overdraft protection plans, and groundwater
extraction charge plans, and implement any or all of those plans
subject to the rights of property owners and with the approval of
the purveyor and other major extractors of over 100 acre-feet of
water per year.
(7) To contract with the purveyor or successor in interest to the
purveyor.
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(8) To construct works along and across any stream of water,
watercourse, channel, flood control channel, storm channel, canal,
ditch or flume, street, avenue, highway, or across any railway that
the route of the works may intersect or cross, if the works are
constructed in a manner as to afford security for life and property
and the district restores the crossings and intersections to their
former state as near as may be or in a manner not to have impaired
unnecessarily their usefulness. This paragraph grants the district
a statutory franchise right and therefore the district may not be
charged any use fees or be made subject to any conditions that
unreasonably interfere with the franchise rights.
Sec. 19. The financial or other interest of any appointed director
in any contract between the purveyor or successor in interest to
the purveyor and the district, or the fact that an appointed director
may hold the position of a director, officer, agent, or employee of
the purveyor or successor in interest to the purveyor, shall not
constitute a violation of Section 1090 of the Government Code,
and that interest or fact shall not render the contract void or make
it avoidable under Section 1092 of the Government Code, at the
instance of any party, if either the fact of the interest or the fact of
the relationship as director, officer, agent, or employee, or both,
are disclosed to the board of directors of the district and noted in
its official records and the board authorizes, approves, or ratifies
the contract by a vote of its membership sufficient for the purpose
without counting the vote of the interested appointed director.
Sec. 20. The statutory franchise right and right-of-way granted
in paragraph (8) of subdivision (b) of Section 18 is hereby given,
dedicated, and set apart to locate, construct, and maintain the works
along and across any street or public highway and over and through
any of the lands that are now or may be the property of this state,
and to have the same rights and privileges as have been or may be
granted to cities within the state. Any use under this section of a
public highway shall be subject to the provisions of Chapter 3
(commencing with Section 660) of Division 1 of the Streets and
Highways Code.
Sec. 21. Notwithstanding any other law, the district may fix,
levy, or collect any standby or availability charge or assessment
in connection with the provision of water service pursuant to the
procedures set forth in the Uniform Standby Charge Procedures
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Act (Chapter 12.4 (commencing with Section 54984) of Part 1 of
Division 2 of Title 5 of the Government Code).
Sec. 22. The district may impose and collect capacity charges
and connection fees pursuant to Section 66013 of the Government
Code.
Sec. 23. The district may prescribe, by resolution or ordinance,
that when any capacity charges or connection fees adopted pursuant
to this act become due and are unpaid under and in accordance
with the rules and regulations concerning those charges and fees,
the charges and fees may be secured and collected in accordance
with the procedures specified in Sections 24 and 25.
Sec. 24. The amount of any delinquent and unpaid capacity
charges or connection fees shall be collected with the annual taxes
next levied upon the property that is subject to the imposition of
a capacity charge or connection fee, and that amount constitutes
a lien on that property as of the same time and in the same manner
as the tax lien securing annual property taxes. If during the year
preceding the date on which the first installment of real property
taxes that evidence the charges appears on the roll, any real
property to which the lien would attach has been transferred or
conveyed to a bona fide purchaser for value, or if a lien of a bona
fide encumbrancer for value has been created and attaches to the
real property, the lien that would otherwise be imposed by this
section shall not be added to and become part of the annual
assessment and it shall not attach to the real property. A county in
which the district is located shall deduct from the capacity charges
and connection fees collected by it an amount sufficient to
compensate the county for costs incurred in collecting the
delinquent and unpaid capacity charges and connection fees. The
amount of that compensation shall be fixed by agreement between
the board of supervisors of the county and the board of directors
of the district.
Sec. 25. (a) If delinquent and unpaid capacity charges or
connection fees are determined to exist by the district, the amount
of those charges or fees may, in the discretion of the district, be
secured at any time by filing for record in the office of the county
recorder of the county in which the real property is located, a
certificate specifying the amount of those charges and fees and the
name and address of the person liable for the delinquent and unpaid
charges or fees.
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(b) From the time of recordation of the certificate, the amount
required to be paid, together with interest and penalties, constitutes
a lien upon all real property in the county owned by the person or
later acquired before the lien expires. The lien shall have the force,
priority, and effect of a judgment lien and shall continue for 10
years from the date of the filing of the certificate, unless sooner
released or otherwise discharged. The lien may, within 10 years
from the filing of the certificate or within 10 years from the date
of the last extension of the lien in the manner provided in this
subdivision, be extended by filing for record a new certificate.
From the time of that filing, the lien shall be extended with respect
to the real property in that county for 10 additional years unless
sooner released or otherwise discharged.
Sec. 26. Any bonds issued by the district are hereby given the
same force, value, and use as bonds issued by any city and shall
be exempt from all taxation within the state.
Sec. 27. (a) Except as otherwise provided in this act, the
County Water District Law (Division 12 (commencing with Section
30000) of the Water Code) shall govern the formation, operation,
and dissolution of all improvement districts, so far as they may be
applicable.
(b) The board of directors may advance general funds of the
district to accomplish the purposes of an improvement district
formed to incur bonded indebtedness or for any other purpose for
which an improvement district may be created and, if the
improvement district is formed to incur bonded indebtedness, may
repay the district from the proceeds of the sale of the bonds, or if
the improvement district is formed for any other purpose for which
an improvement district may be created, in the formation of the
improvement district, provide that the district shall be repaid with
interest at a rate not to exceed the maximum rate per annum
authorized by Section 31304 of the Water Code from the special
taxes levied exclusively upon the taxable property in the
improvement district.
(c) Interest on any bonds issued by the district coming due
before the proceeds of a tax levied at the next general tax levy after
the sale of the bonds are available may be paid from the proceeds
of the sale of the bonds. The percentage of the proceeds of any
sale of the bonds shall not exceed the maximum interest rate
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authorized, for other purposes, by Section 31304 of the Water
Code.
Sec. 28. The district may contain lands situated in more than
one county and the district may annex lands situated in another
county. The lands of the district do not need to be contiguous.
Sec. 29. The provisions of this act are severable. If any
provision of this act or its application is held invalid, that invalidity
shall not affect other provisions or applications that can be given
effect without the invalid provision or application.
Sec. 30. No public corporation or public agency having the
same identity of purpose or substantially the same identity of
purpose as the district shall be formed partly or entirely within this
district, whether by incorporation or annexation, without the
consent of the board of directors of this district.
SEC. 4. If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.
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