HomeMy WebLinkAbout2023-09-12 - AGENDA REPORTS - SCV GROUNDWATER MEMBERSHIP FUNDINGO
Agenda Item: 4
1. CITY OF SANTA CLARITA
AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL: TAA,/�
DATE: September 12, 2023
SUBJECT: SANTA CLARITA VALLEY GROUNDWATER SUSTAINABILITY
AGENCY MEMBERSHIP FUNDING
DEPARTMENT: Neighborhood Services
PRESENTER: Darin Seegmiller
RECOMMENDED ACTION
City Council appropriate $20,000 annually from the Stormwater Utility fund balance to
expenditure account 3567200-510102 for Fiscal Year 2023-24 through Fiscal Year 2026-27 to
pay for Santa Clarita Valley Groundwater Sustainability Agency membership dues.
Appropriations commencing in Fiscal Year 2024-25 are contingent upon appropriation of funds
by the City Council during the annual budget process.
BACKGROUND
The Santa Clarita Valley Groundwater Sustainability Agency (SCV-GSA) was formed pursuant
to the Sustainable Groundwater Management Act (SGMA) of 2014 to be a Groundwater
Sustainability Agency (GSA) for the Santa Clara River Valley East Subbasin (Basin). The
SGMA is a comprehensive bill signed into law by the state with the following goals:
1. Set minimum standards for sustainable groundwater management.
2. Provide local agencies tools necessary to manage groundwater sustainability.
3. Increase groundwater storage.
4. Provide the opportunity for local control.
5. Prevent deterioration of water quality.
6. Preserve existing water rights.
Local agencies were required to establish a GSA in groundwater basins as defined by the
Department of Water Resources. At the May 9, 2017, City Council meeting, the City Council
unanimously voted to adopt a resolution to approve a memorandum of understanding (MOU) to
form the SCV-GSA. Members include the Santa Clarita Valley Water Agency (SCV Water), the
City of Santa Clarita, Los Angeles County Waterworks District Number 36, and the County of
Los Angeles. Members are all local public agencies with water supply, water management,
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and/or land use responsibilities in at least some portion of the Basin.
The members of the SCV-GSA determined that the sustainable management of the Basin may be
best achieved through a Joint Exercise of Powers Agreement (JPA). At the August 28, 2018, City
Council meeting, the City Council unanimously voted to adopt a resolution to approve the JPA,
which effectively superseded and terminated the previously executed MOU. The agreement
provides the power to each member to study, plan, develop, finance, acquire, construct, maintain,
repair, manage, operate, control, and govern water supply projects and exercise groundwater
management authority within the Basin to enforce implementation and compliance with the
Groundwater Sustainability Plan (GSP), adopted by the SCV-GSA on January 3, 2022.
The SCV-GSA is governed by a board of directors under the JPA. The board consists of seven
directors: four directors from SCV Water and one director each from the City of Santa Clarita,
County of Los Angeles, and Los Angeles County Waterworks District Number 36. Mayor Jason
Gibbs is the currently appointed City of Santa Clarita representative to the SCV-GSA. Directors
are appointed to serve for a term of two years and may be reappointed for multiple terms.
In order to fund the SCV-GSA and develop the GSP, members were required to contribute a
non -reimbursable amount of $20,000 each fiscal year for the first five years. After the fifth year,
the board would consider the appropriate level of annual payments to operate the SCV-GSA and
implement and enforce the GSP. At the October 3, 2022, SCV-GSA regular Board meeting, the
member agency's yearly contribution was reevaluated, and the board reached a consensus to
remain at $20,000 for the next five fiscal years. This item requests funding from the Stormwater
Utility Fund for the remaining four years, as many stormwater treatment projects have the dual
benefit of recharging groundwater within the Basin.
ALTERNATIVE ACTION
Other action as determined by the City Council.
FISCAL IMPACT
If approved, this item would appropriate an additional $20,000 each fiscal year from the
Stormwater Utility fund balance to expenditure account 3567200-510102 for FY 2023-24
through FY 2026-27 for a total amount not to exceed $80,000.
ATTACHMENTS
SCV-GSA Member Agency Annual Contributions Letter October 2022
SCV-GSA Budget FY 2023-24
SCV-GSA Joint Exercise of Powers Agreement (available in the City Clerk's Reading File)
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Santa Clarita Valley 4.a
Groundwater Sustainability Agency
SCV
GSA
October 18, 2022
Gina Natoli
Supervising Planner, Executive Office
Los Angeles County Department of Regional Planning
Transmittal: gnatoli(c)_pianning.lacounty.gov
REGARDING: SCV-GSA Member Agency Annual Contributions
During the SCV-GSA's October 3, 2022, Board Meeting, it considered Item 4.1 (attached) which
described the context of the earlier -set $20,000 member agency annual contributions. These
contributions were initially set to provide a modest amount of recurring funding to the SCV-GSA to
support the newly created agency and preparation of the Groundwater Sustainability Plan. It was
programmed for five fiscal years, starting in fiscal year 17118 and through fiscal year 21/22. Since
the SCV-GSA is in its sixth fiscal year, the member agency annual contribution needed to be
reevaluated and reapproved.
During the recent regular Board meeting held on October 3, 2022, the Board reevaluated the
member agency annual contribution and reached consensus that the member agency contribution
should remain set at $20,000 for the next five fiscal years (starting this fiscal year 22/23). It now
requests each member agency approach its respective leadership for reapproval of the $20,000
annual member agency contribution starting now in fiscal year 22/23.
Please advise SCV Water when your member agency obtains approval to remit the contribution, and
SCV Water will then forward an invoice for processing.
Sincerely,
Rick Viergutz
Principal Water Resources Planner
SCV Water Agency
attachment
(661) 297-1600 127234 Bouquet Canyon Road, Santa Clarita, CA 91350 1 SCVGSA.O Packet Pg. 29
4.a
SCV
Santa Clarita Valley
GSA Groundwater SuStainability Agency
Board Memorandum
DATE: September 27, 2022
TO: SCV-GSA Board of Directors
FROM: SCV-GSA Staff
SUBJECT: The Joint Exercise of Powers Agreement (JPA) Member Agency Annual
Contributions
OVERVIEW
During the Board meeting held on June 30, 2022, the Board considered the Agency's Fiscal
Year 22/23 budget and approved the budget expenditures but did not approve the $20,000
"Annual Member Agency" contributions (member contributions) toward the budget. It was
clarified during the meeting that the Joint Exercise of Powers Agreement (JPA) called for
revisiting member contributions for FY 22/23.
The JPA forming the SCV-GSA was executed in September 2018. It included a provision that
each member agency provides a member contribution to the GSA budget at a level of $20,000
per year for the first five fiscal years, after which the Board would revisit the appropriate level of
annual payments.
The first annual payment for FY 17118 was due in October 2018 one month after execution of
the JPA; however, the GSA was already 3 months into FY 18/19 by that point. As a result, two
payments were due, and each member contributed the FY 17/18 and 18/19 payments together
Future $20,000 payments were collected from each member agency in FYs 19/20, 20/21, and
21/22 for a total of five payments.
Traditionally there are three annual revenue sources for the SCV-GSA:
a) Required $20,000 per year member contributions
b) Voluntary member contributions by SCV Water
c) Grant Revenue
REQUIRED $20,000 PER YEAR MEMBER CONTRIBUTIONS
The State's Sustainable Groundwater Management Act called for GSAs to strive for
membership containing local land use agencies and other entities involved in water resources
As a result, the GSA was formed with the City of Santa Clarita, Los Angeles County Regional
Planning, County Waterworks District No. 36, and SCV Water. These members reached
consensus that a $20,000 annual contribution would be reasonable to begin with, recognizing
actual costs would be substantially higher.
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4.a
It is difficult to monetize the benefit each member agency receives from its contribution, but
each member agency finds benefit in supporting sustainable groundwater management in this
basin.
VOLUNTARY MEMBER CONTRIBUTIONS AND GRANT REVENUE
During drafting the JPA, realizing significant funding would be needed to operate the GSA and
develop the GSP, and that it was the largest groundwater pumper on the forming -Board, SCV
Water included the option to provide voluntary member contributions above and beyond
member contributions. SCV Water has continued to provide these voluntary member
contributions.
The County Waterworks District 36 is also a groundwater pumper and member of the JPA but
its service area is smaller than the other service areas covered exclusively by SCV Water and
relatively speaking is not a large groundwater pumper (extracting approximately 5% as much as
SCV Water). Additionally, the remaining two members of the JPA, the City and County of Los
Angeles Department of Regional Planning are not groundwater pumpers in the basin.
Between FY 18/19 and FY 21/22 SCV Water's Voluntary Member Contributions have been
offset by approximately $1.3M in grant revenue and $320,000 in member contributions. SCV
Water has contributed voluntary contributions above the grants and member contributions.
Over the same time frame SCV Water contributed net additional funds ranging from $12,500 to
$580,000 each FY between FY 18/19 to FY 21/22, with an average FY contribution of $235,000.
In FY 22/23 and 23/24 SCV Water's expected net additional contribution, given anticipated
offsets from member agency contributions at $20,000, and grants (which are $0 at this stage)
are estimated to be $595,000 and $422,500 respectively. These SCV Water costs could be
reduced to some degree if new grant revenues can be secured.
FISCAL CONSIDERATIONS
The $20,000 member agency contribution is a modest amount of funding from each member
agency, and each member agency serves on the Board of Directors and does not get a stipend.
Carrying forward the $20,000 member agency contribution means that the GSA budget remains
as proposed in June of this year.
If member agencies reached consensus on modifying the $20,000 member agency
contributions either through an increase or decrease, then SCV Water's additional contributions
would be reduced, or increased respectively.
PROCEDURAL STEPS
If the GSA Board carries forward the $20,000 member agency contribution, member agencies
will determine what their next administrative steps are for their agency's authorization.
CONCLUSIONS
The modest member agency contributions are considered reasonable for the next five FY's. The
JPA allows for adjustment to the member agency contribution at any time if warranted via a
super majority vote.
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4.a
RECOMMENDATION
1) Open the item for discussion and reach consensus on setting the member agency
contribution at $20,000, or another value, for the next five fiscal years starting in FY
22/23.
2) That each member agency approaches its leadership for approval of the member
agency contribution effective for five years starting in FY 22/23
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4.b
TABLE 1 Estimated Administrative
Costs (June 5, 2023)
FY 22/23
FY 23/24
FY 24/25
estimate
SCV Water Administrative Support
$
10,000
$
10,000
$
10,000
SCV Water Consultant Management and Technical
Services
$
50,000
$
50,000
$
50,000
SCV Water Support with Public Outreach
$
3,000
$
3,000
$
3,000
Ad Buys for Outreach
$
2,000
$
2,000
$
2,000
Proposed FY 23/24 Total SCV Water Staff Cost
$
65,000
$
65,000
$
65,000
Adopted FY 22/23 Budget
$
65,000
$
65,000
Difference 23/24 minus 22/23
$
-
1 $
-
TABLE 2 Consultant Cost Estimate for GSP Development (June 5, 2023)
FY 24/25
FY 22/23
FY 23/24
estimate
Consultant Cost Estimate for GSP Development
Groundwater Model Readiness- Additional Calibration
$
$
$
of Modflow USG
RFP Development- Status of Groundwater Model
$
$
$
Memo
RFP Development - Consultant Assistance in Drafting
$
-
$
-
$ -
RFPs and Reviewing Proposals
GSP Technical Consultant
$
-
$
-
$ -
R3 Grant Application Tech Support for Meetings
$
-
$
-
$ -
R3 Grant Application GSP Tech Consultant Install of
$
$
$
Data Loggers
GSP Stakeholder Engagement Consultant
$
-
$
-
$ -
GSP Grant Administration Consultant
$
5,000
$
-
$ -
Peer Review Group to evaluate Modflow USG for
$
$
$
suitability.
R3 Grant Application Incremental Cost for GW
$
$
$
Flowmodel Peer Review
R3 Grant Application Infiltration Testing and Pilot
$
35,000
$
30,000
$ -
Studies
(New) Bio Study and delineation required for R3 Grant
$
30,000
at Pine Tree Site
Proposed FY 23/24 Consultant Cost GSP
$
70,000
$
30,000
$
Development
Adopted FY 22/23 Budget
$
64,000
$
-
Difference 23/24 minus 22/23
$
6,000
1 $
30,000
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4.b
Table 2 Consultant Cost Estimate for Administration (June 5, 2023)
FY 22/23
FY 23/24
FY 24/25
estimate
Grant Application Cost
$
40,000
$
-
$
-
Consultant Support for SGM Grant
$
30,000
$
20,000.00
Rate Study for Post GSP Adoption Fee Collection
$
-
$
-
$
-
Agency Insurance through JPIA
$
2,500
$
2,500
$
2,500.00
Legal
$
15,000
$
15,000
$
15,000.00
Annual Audit Costs
$
10,000
$
10,000
$
10,000.00
Proposed FY 23/24 Consultant Cost Estimate for
Administration
$
67,500
$
57,500
$
47,500.00
Adopted FY 22/23 Budget
$
47,500
$
47,500
Difference 23/24 minus 22/23
$
20,000
1 $
10,000
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4.b
Table 2 Consultant Cost Estimates for GSP Implementation (June 5, 2023)
FY 24/25
FY 22/23
FY 23/24
estimate
Technical Consultant Support For GSP
Implementation. GSI Water Solutions GSP
Implementation Support. Includes efforts to fill data
gaps, to collect data, to monitor and track basin
$ 100,000
$ 125,000
$ 75,000
metrics (sustainable management criteria), preparation
of annual report, coordination with ESA on GDEs, and
CV Strategies on outreach, preparation of 22/23
Annual Report.
Outreach Consultant for GSP Implementation CV
Strategies Implementation Support. Includes outreach
$ 5,000
$ 40,000
$ 25,000
for helping fill data gaps and best management
practices for non -municipal wells.
Placing 12-15 Surveyor Bench Marks in 23/24,
semiannual monitoring 23/24 and 24/25 licensed land
$ 30,000
$ 15,000
surveyor
GSA 2023 Water Year Annual Report
$ 30,000
$ 30,000
Annual Model Maintenance and Update and Limited
$ _
$ 50,000
$ 50,000
Model Runs
Installation of 2 Piezometers 50 feet deep and data
evaluation. SCV Water would download data logger
$ 70,000
$ 5,000
info and upload to DMS.
Installation of 15 Temperature Probes and data
evaluation. SCV Water would download data logger
$ 35,000
$ 5,000
info and upload to DMS
ESA Woodlands Condition Monitoring
$ 10,000
$ 30,000
$ 20,000
ESA GDE Evaluation Support
$ 40,000
$ 35,000
$ 35,000
On Call Senior Biologist Support Services
$ 5,000
$ 25,000
$ 25,000
Data Management System Includes inputting data into
the DMS, preparation of reports and charts to display
$ 35,000
$ 35,000
$ 35,000
basin metrics, provision of charts and data for Annual
Report.
SCV Water Capital Planning and Studies "Feasibility
$ 150,000
$ 150,000
$ 150,000
Study and Environmental Docs (GSP)"
Budget Placeholder for SGMA Implementation Round
$ _
$ 60,000
$ 180,000
2 Grant
Subtotal FY 23/24 Consultant Cost Estimate for
GSP Implementation
$ 345,000
$ 715,000
$ 650,000
(New) 10% Contingency for Consultant Costs
$ -
$ 71,500.00
$ 65,000.00
FY 23/24 Consultant Cost Estimate for GSP
Implementation
$ 345,000
$ 786,500
$ 715,000
Adopted FY 22/23 Budget
$ 498,500
$ 390,000
Difference 23/24 minus 22/23
$ (153,500)
$ 396,500
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4.b
Table 2 Proposed FY 23/24 Consultant Costs All Categories (June 5, 2023)
FY 22/23
FY 23/24
FY 24/25
estimate
Proposed FY 23/24 Consultant Cost All Categories
$ 482,500
$ 874,000
$ 762,500
Adopted FY 22/23 Budget
I $ 610,000
$ 437,500
Difference 23/24 minus 22/23
1 $ (127,500)1
$ 436,500
Table 3. Proposed 23/24 Budget Summary Including Anticipated Revenue (June 5, 2023)
FY 22/23
FY 23/24
FY 24/25
estimate
Table 1. Total Estimated SCV Water Staff
$
65,000
$
65,000
$
65,000
Table 2. Total Estimated Consultant Services*
$
482,500
$
874,000
$
762,500
Estimated Staff and Consultant Cost
$
547,500
$
939,000
$
827,500
Anticipated Revenue
Estimated R2 Grant Reimbursement
$
-
Estimated R3 Grant Reimbursement
$
100,000
$
130,000
Place holder Estimated SGMA R2 Implementation
$
100,000
Member Agency Contributions
$
80,000
$
80,000
$
80,000
Subtotal Anticipated Revenue
$
180,000
$
210,000
$
180,000
Additional Revenue Required*
$
367,500
$
729,000
$
647,500
Total Revenue for GSP Development and
Implementation
$
547,500
$
939,000
$
827,500
Balance
$
-
$
-
$
-
*SCV Water may, in its discretion, advance these
funds, or provide a voluntary non reimbursable
Member contribution.
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JOINT EXERCISE OF POWERS AGREEMENT
by and among
SANTA CLARITA VALLEY WATER AGENCY,
THE CITY OF SANTA CLARITA,
LOS ANGELES COUNTY WATERWORKS DISTRICT NO.36, VAL VERDE,
and
THE COUNTY OF LOS ANGELES
modifying and assuming the role of
THE SANTA CLARITA VALLEY
GROUNDWATER SUSTAINABILITY AGENCY
2018
55396,00001 \31339993.4
TABLE OF CONTENTS
Page
ARTICLE1. DEFINITIONS..................................................................................................... 3
ARTICLE 2. CREATION OF THE AUTHORITY.................................................................... 4
ARTICLE3. TERM.................................................................................................................. 4
ARTICLE 4. POWERS............................................................................................................. 4
ARTICLE 5. MEMBERSHIP.............:...................................................................................... 6
ARTICLE 6. BOARD OF DIRECTORS................................................................................... 7
ARTICLE7. OFFICERS........................................................................................................... 8
ARTICLE 8. DIRECTOR MEETINGS..................................................................................... 8
ARTICLE9. VOTING.............................................................................................................. 9
ARTICLE 10. STAFF AND SERVICES................................................................................... 9
ARTICLE 11. BYLAWS........................................................................................................
10
ARTICLE12. COMMITTEES................................................................................................
10
ARTICLE 13. ACCOUNTING PRACTICES..........................................................................
10
ARTICLE 14. BUDGET AND EXPENSES............................................................................
10
ARTICLE 15. LIABILITIES...................................................................................................
11
ARTICLE 16. WITHDRAWAL AND TERMINATION.........................................................
12
ARTICLE 17. SPECIAL PROJECTS......................................................................................
13
ARTICLE 18. MISCELLANEOUS PROVISIONS.................................................................
14
i
55396.00001 \31339993. 4
JOINT EXERCISE OF POWERS AGREEMENT
THE SANTA CLARITA VALLEY GROUNDWATER SUSTAINABILITY AGENCY
This Joint Exercise of Powers Agreement ("JPA" or "Agreement") is made and effective on the
last date executed ("Effective Date"), by and among the Santa Clarita Valley Water Agency ("SCV-
Water"), the City of Santa Clarita, Los Angeles County Waterworks District No. 36,Val Verde, and the
County of Los Angeles, sometimes referred to herein individually as a "Member" and collectively as the
"Members" for purposes of modifying and assuming the role of the Santa Clarita Valley Groundwater
Sustainability Agency ("SCV-GSA") and setting forth the terms pursuant to which the SCV-GSA shall
operate. Capitalized defined terms used herein shall have the meanings given to them in Article 1 of this
Agreement.
The SCV-GSA was formed pursuant to the Sustainable Groundwater Management Act to be the
Groundwater Sustainability Agency (GSA) for the Santa Clara River Valley East Subbasin, groundwater
basin number 4-4.07 ("Basin"), per the State of California, Department of Water Resources (DWR)
Groundwater Bulletin 118.
RECITALS
A. On September 16, 2014, Governor Jerry Brown signed into law Senate Bills 1168 and
1319, and Assembly Bill 1739, collectively known as the Sustainable Groundwater Management Act
(SGMA), codified in Part 2.74 of Division 6 of the California Water Code, commencing with
Section 10720.
B. SGMA became effective on January 1, 2015, and various clarifying amendments to
SGMA, including Senate Bills 13 and 226 and Assembly Bills 617 and 939, were signed in 2015 and
became effective on January 1, 2016.
C. The legislative intent of SGMA is to provide sustainable management of California's
groundwater basins, to enhance local management of groundwater, to establish minimum standards
for sustainable groundwater management, and to provide local agencies with the authority and the
technical and financial assistance necessary to sustainably manage groundwater.
D. The Members are all local public agencies with water supply, water management, and/or
land use responsibilities in at least some portion of the Basin and as a result, each has the statutory
authority to participate in GSAs for the Basin. A map of the basin and the service area boundary of
each Member is included in Exhibit A.
E. The Basin, identified and designated by Department of Water Resources Bulletin 118
as Subbasin No. 4-4.07, is a high priority basin and therefore, is subject to the requirements of
SGMA.
F. SGMA Section 10735.2 required the formation of one or more GSAs to manage the
Basin by June 30, 2017. SGMA Section 10723.6 authorizes multiple local agencies in a basin to form a
GSA by way of memorandum of agreement or other legal agreement.
55396.00001 \31339993. 4
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.
55396.00W I131339993. 4
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TERMS OF AGREEMENT
In consideration of the mutual promises and covenants herein contained, the Members agree as
follows:
ARTICLE 1.
DEFINITIONS
The following terms have the following meanings for purposes of this Agreement:
1.1 "Act" means The Joint Exercise of Powers Act, set forth in Chapter 5 of division 7 of
Title 1 of the Government Code, sections 6500, et seq., including all laws supplemental thereto.
1.2 "Agreement" has the meaning assigned thereto in the Preamble.
1.3 "Auditor" means the auditor of the financial affairs of the SCV-GSA appointed by the
Board of Directors pursuant to Section 13.3 of this Agreement.
1.4 "Basin" means the Santa Clara River Valley East Groundwater Subbasin, groundwater
basin number 4-4.07 per Bulletin 118, as further depicted in Exhibit A to this MOU.
1.5 "Board of Directors" or `Board" means the governing body of the SCV-GSA as
established by Article 6 of this Agreement.
1.6 "Director" and "Alternate Director" shall mean a director and alternate director
appointed pursuant to Article 6 of this Agreement.
1.7 "DWR" means the California Department of Water Resources.
1.8 "Effective Date" has the meaning assigned thereto in the Preamble.
1.9 "GSA" means Groundwater Sustainability Agency, as defined by SGMA, that
implements the provisions of SGMA.
1.10 "GSP" means Groundwater Sustainability Plan, as defined by SGMA, proposed or
adopted by a GSA pursuant to SGMA.
1.11 "Member" has the meaning in the Preamble and further means each party to this
Agreement that satisfies the requirements of Section 5.1 of this Agreement, including any new members
as may be approved by the Members pursuant to Section 5.2 of this Agreement.
1.12 "Officer(s)" means the Chair, Vice Chair, and Secretary to be appointed by the Board of
Directors pursuant to Section 7.1 of this Agreement.
1.13 "SCV-GSA" means the Santa Clarita Groundwater Sustainability Agency and consists of
the following members: Santa Clarita Valley Water Agency, the City of Santa Clarita, Los Angeles
County Waterworks District No. 36 Val Verde, and the County of Los Angeles.
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3
1.14 "SGMA" refers to the Sustainable Groundwater Management Act as defined in .the
Recitals.
1.15 "State" means the State of California.
1.16 "Supermajority Vote" means five (5) affirmative votes.
ARTICLE 2.
CREATION OF THE AUTHORITY
2.1 Creation of Authority. There is hereby created pursuant to the Act a joint powers
authority, which shall be a public entity separate from the Members to this Agreement. This Agreement
terminates the MOU and the joint powers authority hereby assumes the role of the SCV-GSA and shall
be known as the SCV-GSA. Within ten (10) days after the Effective Date of this Agreement, the SCV-
GSA shall cause a statement of the information concerning the SCV-GSA, required by Government
Code section 53051, to be fled with the office of the California Secretary of State and with the County
Clerk for the County of Los Angeles, setting forth the facts required to be stated pursuant to Government
Code section 53051(a). Within thirty (30) days after the Effective Date of this Agreement and after any
amendment, the SCV-GSA shall cause a notice of this Agreement or amendment to be prepared and
filed with the office of the California Secretary of State containing the information required by
Government Code section 6503.5. Within thirty (30) days after the Effective Date, the SCV-GSA shall
send a copy of this Agreement to DWR.
2.2 Purpose of the Joint Powers Authority. Each Member to this Agreement has in common
the power to study, plan, develop, finance, acquire, construct, maintain, repair, manage, operate, control,
and govern water supply projects and exercise groundwater management authority within the Basin
either alone or in cooperation with other public or private non-member entities, and each is a local
agency eligible to serve as the GSA, either alone or jointly through a joint powers agreement as provided
for by SGMA. This Agreement is being entered into in order to jointly exercise some or all of the
foregoing common powers, as appropriate, and for the exercise of such additional powers as may be
authorized by law in the manner herein set forth, in order to effectuate the purposes of this Agreement.
The purpose of the SCV-GSA is to serve as the GSA for the Basin and to develop, adopt, and implement
the GSP for the Basin pursuant to SGMA and other applicable provisions of law.
ARTICLE 3.
TERM
This Agreement shall become effective upon its execution by each of the Members and shall
remain in effect until terminated pursuant to the provisions of Article 16 (Withdrawal of Members) of
this Agreement.
ARTICLE 4.
POWERS
The SCV-GSA shall possess the power in its own name to exercise any and all common powers
of its Members reasonably related to the purposes of the SCV-GSA, including but not limited to the
following powers, together with such other powers as are expressly set forth in SGMA and as it may be
amended in the future. For purposes of Government Code section 6509, the powers of the SCV-GSA
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shall be exercised subject to the restrictions upon the manner of exercising such powers as are imposed
on SCV Water, and in the event of the withdrawal of SCV Water as a Member under this Agreement,
then the manner of exercising the SCV-GSA's powers shall be those restrictions imposed on the County
of Los Angeles.
4.1 To exercise all powers afforded to the SCV-GSA under SGMA, including without
limitation:
4.1.1 To adopt rules, regulations, policies, bylaws, and procedures governing the
operation of the SCV-GSA.
4.1.2 To develop, adopt, and implement a GSP for the Basin, and to exercise jointly the
common powers of the Members in doing so.
4.1.3 To obtain rights, pen -nits, and other authorizations for, or pertaining to,
implementation of a GSP for the Basin.
4.1.4 To collect and monitor data on the extraction of groundwater from, and the
quality of groundwater in, the Basin.
4.1.5 To acquire property and other assets by grant, lease, purchase, bequest, devise,
gift, or eminent domain, and to hold, enjoy, lease or sell, or otherwise dispose of, property, including
real property, water rights, and personal property, necessary for the full exercise of the SCV-GSA's
powers.
4.1.6 To establish and administer a conjunctive use program for the purposes of
maintaining sustainable yield in the Basin consistent with the requirements of SGMA.
4.1.7 To exchange and distribute water.
4.1.8 To regulate groundwater extractions as permitted by SGMA.
4.1.9 To spread, sink, and inject water into the basin to recharge the groundwater Basin.
4.1.10 To store, transport, recapture, recycle, purify, treat, or otherwise manage and
control water for beneficial use.
4.1.11 To develop and facilitate market -based solutions for the use, sale, or lease, and
management of water rights.
4.1.12 To impose assessments, groundwater extraction fees, or other charges, and to
undertake other means of financing the SCV-GSA as authorized by Chapter 8 of SGMA, commencing at
section 10730 of the Water Code.
4.1.13 To exercise the common powers of its Members to develop, collect, provide, and
disseminate information that furthers the purposes of the SCV-GSA, including but not limited to the
operation of the SCV-GSA and adoption and implementation of a GSP for the Basin to the Members'
legislative, administrative, and judicial bodies, as well as the public generally.
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4.1.14 To perform other ancillary tasks relating to the operation of the SCV-GSA
pursuant to SGMA, including without I limitation, environmental review, engineering, and design.
4.2 To apply for, accept, and receive licenses, permits, water rights, approvals, agreements,
grants, loans, contributions, donations, or other aid from any agency of the United States, the State of
California, or other public agencies or private persons or entities necessary for the SCV-GSA's
purposes.
4.3 To make and enter contracts necessary to the full exercise of the SCV-GSA's power.
4.4 To employ, designate, or otherwise contract for the services of agents, officers,
employees, attorneys, engineers, planners, financial consultants, technical specialists, advisors, and
independent contractors.
4.5 To incur debts, liabilities, or obligations, to issue bonds, notes, certificates of
participation, guarantees, equipment leases, reimbursement obligations, and other indebtedness, as
authorized by the Act.
4.6 To cooperate, act in conjunction, and contract with the United States, the State of
California, or any agency thereof, counties, municipalities, public and private corporations of any kind
(including without limitation, investor -owned utilities), and individuals, or any of them, for any and all
purposes necessary or convenient for the full exercise of the powers of the SCV-GSA.
4.7 To sue and be sued in the SCV-GSA's own name. Third parties must comply with the
requirements of the Government Claims Act prior to filing any action for money or damages against the
SCV-GSA.
4.8 To provide for the prosecution of, defense of, or other participation in, actions or
proceedings at law or in public hearings in which the Members, pursuant to this Agreement, have an
interest and employ counsel and other expert assistance for these purposes.
4.9 To accumulate operating and reserve funds for the purposes herein stated.
4.10 To invest money that is not required for the immediate necessities of the SCV-GSA, as
the SCV-GSA determines is advisable, in the same manner and upon the same conditions as Members,
pursuant to Government Code section 53601, as that section now exists or may hereafter be amended.
4.11 To undertake any investigations, studies, and matters of general administration.
4.12 To perform all other acts necessary or proper to carry out fully the purposes of this
Agreement.
ARTICLE 5.
MEMBERSHIP
5.1 Members. The Members of the SCV-GSA shall be the Santa Clarita Valley Water
Agency, the City of Santa Clarita, Los Angeles County Waterworks District No. 36 Val Verde, and the
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County of Los Angeles, as long as they have not, pursuant to the provisions hereof, withdrawn or been
terminated from this Agreement.
5.2 New Members. It is recognized that a public agency that is not a Member on the
Effective Date of this Agreement may wish to participate in the SCV-GSA. Additional public agencies
or mutual water companies may become members of the SCV-GSA upon such terms and conditions as
established by the Board of Directors and upon the unanimous consent of the existing Members,
evidenced by the execution of a written amendment to this Agreement signed by all of the Members,
including the additional public agency or mutual water company. The addition of new Members shall
not affect any rights of existing Members without the consent of all affected Members.
ARTICLE 6.
BOARD OF DIRECTORS
6.1 Formation of the Board of Directors. The SCV-GSA shall be governed by a Board of
Directors ("Board of Directors" or "Board"). The Board shall consist of seven (7) Directors who shall be
appointed in the manner set forth as follows:
6.1.1 Four (4) Directors appointed by the Board of Directors for the Santa Clarita
Valley Water Agency, which is the successor entity to the Castaic Lake Water Agency, the Newhall
County Water District, the Santa Clarita Water Division, and the Valencia Water Company.
6.1.2 One (1) Director appointed by the City Council for the City of Santa Clarita.
6.1.3 One (1) Director appointed by the County of Los Angeles Board of Supervisors.
6.1.4 One (1) Director appointed by Los Angeles County Waterworks District No. 36,
Val Verde.
6.2 Initial Directors. The six (6) individuals who were appointed to the predecessor SCV-
GSA pursuant to the MOU by a Member or a predecessor in interest to a Member are hereby deemed by
the Members to be appointed to the Board of Directors. Consistent with Section 6.1.1 above, the Santa
Clarita Valley Water Agency shall appoint one additional director so it has a total of four appointed
Directors.
6.3 Alternate Directors. Each Member may also appoint Alternate Directors for its members
of the Board of Directors. Unless appearing as a substitute for a Director due to absence or conflict of
interest, Alternate Directors shall have no vote, and shall not participate in any discussions or
deliberations of the Board. In such instances, Alternate Directors are not prohibited from attending
meetings and may participate in public comment. If a Director is not present, or if a Director has a
conflict of interest which precludes participation by the Director in any decision -making process of the
Board, the Alternate Director appointed to act in his/her place shall assume all rights of the Director, and
shall have the authority to act in his/her absence, including casting votes on matters before the Board.
6.4 Duties of the Board of Directors. The business and affairs of the SCV-GSA, and all of
the powers of the SCV-GSA, including without limitation all powers set forth in Article 4 (Powers), are
reserved to and shall be exercised by and through the Board of Directors, except as may be expressly
delegated pursuant to this Agreement, bylaws, or by specific action of the Board of Directors.
55396.00001 \31339993. 4
6.5 Director Terms and Removal. Each Director shall be appointed to serve for a term of two
years. A Member's Director may be removed during his or her term or reappointed for multiple terms at
the pleasure of the Member that appointed him or her. No individual Director may be removed in any
other manner, including by the affirmative vote of the other Directors. The term of an Initial Director
shall begin on the date this Agreement becomes effective.
6.6 Vacancies. A vacancy on the Board of Directors shall occur when a Director resigns, is
removed, or at the end of the Director's term as set forth in Section 6.5. Upon the vacancy of a Director,
the seat shall remain vacant until a replacement Director is appointed as set forth in Section 6.1.
Replacement Directors who are appointed to fill vacant seats before the term of such seats have
concluded shall inherit the term of the Director they are replacing. Members shall submit any changes
in Director positions to the Board Secretary by written notice signed by an authorized representative of
the Member.
ARTICLE 7.
OFFICERS
7.1 Officers. Officers of the SCV-GSA shall be a chair, vice chair, and secretary. A treasurer
shall be appointed consistent with the provisions of Section 13.3. The vice chair shall exercise all
powers of the chair in the chair's absence or inability to act.
7.2 Appointment of Officers. Officers shall be appointed annually by, and serve at the
pleasure of, the Board of Directors. The initial Officers shall be those that were selected as officers by
the members of the predecessor SCV-GSA pursuant to the MOU. Officers shall be appointed thereafter
at the first Board meeting following January 1 st of each year. Any Officer may resign at any time upon
written notice to the Board.
7.3 Principal Office. The principal office of the SCV-GSA shall be established by the Board
of Directors, and may thereafter be changed by a simple majority vote of the full Board. The principal
office of the SCV-GSA shall be located within the jurisdictional boundaries of one or more of the
Members.
ARTICLE 8.
DIRECTOR MEETINGS
8.1 Initial Meeting. The initial meeting of the Board of Directors shall be held in the County
of Los Angeles, California within sixty (60) days of the Effective Date of this Agreement.
8.2 Time and Place. The Board of Directors shall meet at least quarterly, at a date, time and
place set by the Board within the jurisdictional boundaries of one or more of the Members, and at such
times as may be determined by the Board.
8.3 Meetings. All meetings of the Board of Directors, including special meetings, shall be
noticed, held, and conducted in accordance with the Ralph M. Brown Act (Government Code sections
54950, et seq.). The Board may use teleconferencing in connection with any meeting in conformance
with and to the extent authorized by applicable law.
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8.4 Local Conflict of Interest Code. The Board of Directors shall adopt a local conflict of
interest code pursuant to the provisions of the Political Reform Act of 1974 (Government Code sections
81000, et seq.) at the first meeting following the appointment of the Directors.
ARTICLE 9.
VOTING
9.1 Quorum. A quorum of any meeting of the Board of Directors shall consist of a majority
of the Directors. In the absence of a quorum, any meeting of the Directors may be adjourned by a vote
of a simple majority of Directors present, but no other business may be transacted. For purposes of this
Article, a Director shall be deemed present if the Director appears at the meeting in person or
participates telephonically or by other electronic means, provided the telephone or electronic appearance
is consistent with the requirements of the Ralph M. Brown Act.
9.2 Director Votes. Voting by the Board of Directors shall be made on the basis of one vote
for each Director.
9.3 Affirmative Decisions of the Board of Directors - Simple Majority Vote. Except as
otherwise specified in this Agreement, all decisions of the Board of Directors shall require the
affirmative vote of at least four (4) Directors.
9.4 Matters RequiringSupermalority Vote. Decisions concerning the following matters shall
require a supermajority vote of the Directors in order to pass: (1) the adoption of the GSP and any
amendments thereto; (2) any amendments to the bylaws; (3) approval of the annual budget; (4) the
adoption of any groundwater regulatory or extraction fees; (5) the adoption of any taxes, fees or
assessments subject to Proposition 218; (6) a decision to initiate or settle litigation; (7) a decision to
commence eminent domain proceedings; and (8) the approval of any agreement between the SCV-GSA
and any Member.
ARTICLE 10.
STAFF AND SERVICES
10.1 Staff and Services. The SCV-GSA may employ full-time and/or part-time employees,
assistants, and independent contractors who may be necessary from time to time to accomplish the
purposes of the SCV-GSA, subject to the approval of the Board of Directors. The SCV-GSA may
contract with a Member or other public agency or private entity for various services, including without
limitation, those related to the SCV-GSA's finances, purchasing, risk management, information
technology, and human resources. A written agreement shall be entered between the SCV-GSA and the
Member or other public agency or private entity contracting to provide such service, and that agreement
shall specify the terms on which such services shall be provided, including without limitation, the
compensation, if any, that shall be made for the provision of such services.
10.2 Initial Administration and Staffing. Unless otherwise determined by the Board, SCV
Water will manage the administrative operations of the SCV-GSA and the development of the GSP. In
connection with this role and pursuant to a separate agreement between SCV Water and the SCV-GSA,
SCV Water will provide staff resources to administer the operations of the SCV-GSA and will be
authorized to contract directly with consultants and other parties, including the State of California, as
required to carry out the direction of the SCV-GSA Board. Unless otherwise provided by the Board,
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any procurement, purchasing, and contracting shall be done in accordance with SCV Water's adopted
policies. The separate agreement between SCV Water and the SCV-GSA contemplated in this Section
shall address the reimbursement of costs and expenses incurred by SCV Water in fulfilling its role and
may be reviewed by the Board at any time. A draft of this separate agreement is attached.
ARTICLE 11.
BYLAWS
11.1 The Board of Directors may adopt bylaws of the SCV-GSA to govern the day-to-day
operations of the SCV-GSA.
ARTICLE 12.
COMMITTEES
12.1 Board Committees, The Board of Directors may from time to time establish one or more
standing or ad hoc committees consisting of Directors to assist in carrying out the purposes and
objectives of the SCV-GSA, including but not limited to a Budget and Finance Committee, Planning
Committee, and an Executive Committee. The Board of Directors shall determine the purpose and need
for such committees. Meetings of standing committees shall be subject to the requirements of the
Brown Act.
12.2 Other Committees. The Board may from time to time and in its discretion establish any
other committees to assist in carrying out the purposes and objectives of the SCV-GSA.
ARTICLE 13.
ACCOUNTING PRACTICES
13.1 General. The Board of Directors shall establish and maintain such funds and accounts as
may be required by generally accepted public agency accounting practices. The SCV-GSA shall
maintain strict accountability of all funds and report all receipts and disbursements of the SCV-GSA.
13.2 Fiscal Year. Unless the Board of Directors decides otherwise, the fiscal year for the SCV-
GSA shall run concurrent with the fiscal year of SCV Water.
13.3 Appointment of Treasurer and Auditor; Duties. The Treasurer shall be the Chief Finance
Officer of SCV Water and the Auditor shall be appointed by the Board in the manner, and shall perform
such duties and responsibilities, specified in sections 6505, 6505.5 and 6505.6 of the Act. The Treasurer
shall be bonded in accordance with the provisions of section 6505.1 of the Act.
ARTICLE 14.
BUDGET AND EXPENSES
14.1 Budget._ Within one hundred twenty (120) days after the first meeting of the Board of
Directors, and thereafter prior to the commencement of each fiscal year, the Board shall adopt a budget
for the SCV-GSA for the ensuing fiscal year. In the event that a budget is not so approved, the prior
year's budget shall be deemed approved for the ensuing fiscal year, and any groundwater extraction fee
or assessment(s) of contributions of Members, or both, approved by the Board during the prior fiscal
year shall again be assessed in the same amount and terms for the ensuing fiscal year.
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14.2 SCV-GSA Funding and Initial Contributions.
14.2.1 Funding Account. For the purpose of funding the expenses and ongoing
operations of the SCV-GSA, the Board of Directors shall maintain a funding account in connection with
the annual budget process. The Board of Directors may fund the SCV-GSA as provided in Chapter 8 of
SGMA, commencing with section 10730 of the Water Code.
14.2.2 Annual Member Contributions. In order to fund the SCV-GSA and continue to
develop the GSP, prior to the adoption and approval of a GSP, the Members must and hereby agree to
contribute a non -reimbursable twenty thousand dollars ($20,000) each fiscal year to the SCV-GSA for
the first five fiscal years. After the fifth fiscal year, the Board shall consider the appropriate level of
annual payments. The first payment of twenty thousand dollars ($20,000) shall be paid to the SCV-GSA
within thirty (30) days of the execution of this Agreement for fiscal year 2017-18. Payments for
subsequent fiscal years shall be paid to the SCV-GSA within thirty (30) days after the start of each fiscal
year thereafter. These contributions shall be used for any purpose authorized for payment from fees
imposed pursuant to California Water Code Section 10730, including administrative and consulting
costs.
14.3 Issuance of Indebtedness. The SCV-GSA may issue bonds, notes, or other forms of
indebtedness, as permitted under Section 4.5, provided such issuance be approved at a meeting of the
Board.
14.4 Future Member Contributions. In the event the cost of the ongoing administration of the
SCV-GSA and/or the development, adoption, and ongoing administration of the GSP exceeds the
Members' initial contributions, the Board may, by a super -majority vote, adopt a resolution requiring
each of the Members to provide additional non -reimbursable funding, above the annual contributions, to
the SCV-GSA and demonstrating in detail (1) the need for funding and (2) the purposes for which
additional funding will be utilized. Upon receipt of the resolution requiring additional funding, the
Members may meet and confer regarding the resolution. However, each Member shall consider and act
upon the resolution no later than ninety (90) days following the adoption of the resolution by the Board
unless otherwise extended by the Board. Failure by a Member to affirm the resolution may be grounds
for termination pursuant to Section 16.2.
14.5 Voluntary Member Contributions. Nothing in this Agreement shall prohibit a member
from making voluntary monetary or in -kind contributions to the SCV-GSA at any time. To the extent
the SCV-GSA is able to secure other funding sources, and to the extent permitted by law, the SCV-GSA
shall reimburse voluntary Member contributions provided pursuant to this Section 14.5. The SCV-
GSA's authority to reimburse such contributions shall be considered a cost of the SCV-GSA's
groundwater sustainability program. Notwithstanding the SCV-GSA's obligation to reimburse voluntary
Member contributions pursuant to this Section 14.5, a Member who makes a voluntary contribution
may, in its discretion, elect to make any such voluntary contribution non -reimbursable.
ARTICLE 15.
LIABILITIES
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15.1 Liabilitv. In accordance with Government Code section 6507, and as authorized by
Government Code Section 6508.1, the debt, liabilities, and obligations of the SCV-GSA shall be the
debts, liabilities, and obligations of the SCV-GSA alone, and not the Members.
15.2 Indemnity. To the fullest extent permitted by law, funds of the SCV-GSA may be used to
defend, indemnify, and hold harmless the SCV-GSA, each Member, each Director, and any officers,
agents, and employees of the SCV-GSA for their actions taken within the course and scope of their
duties while acting on behalf of the SCV-GSA. To the fullest extent permitted by law, the SCV-GSA
agrees to save, indemnify, defend, and hold harmless each Member from any liability, claims, suits,
actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or
costs of any kind, whether actual, alleged or threatened, including attorney's fees and costs, court costs,
interest, defense costs, and expert witness fees, where the same arise out of, or are in any way
attributable in whole or in part, to acts or omissions of the SCV-GSA or its employees, officers or agents
or negligent acts or omissions (not including gross negligence or wrongful conduct) of the employees,
officers or agents of any Member, while acting within the course and scope of a Member relationship
with the SCV-GSA. In addition, to the fullest extent permitted by law, the SCV-GSA shall indemnify,
defend and hold harmless, each Member from any liabilities incurred as a result of handling, receipt,
use, or disposal of hazardous materials, hazardous substances, and hazardous wastes however defined
under Federal, State, or local laws, ordinances, or regulations.
15.3 Privileges and Immunities. All of the privileges and immunities from liability, exemption
from laws, ordinances and rules, all pension, relief, disability, workers compensation, and other benefits
which apply to the activity of officers, agents, or employees of any of the Members when performing
their respective functions shall apply to them to the same degree and extent while engaged in the
performance of any of the functions and other duties under this Agreement. None of the officers, agents,
or employees appointed by the Board of Directors shall be deemed, by reason of their employment by
the Board of Directors, to be employed by any of the Members or, by reason of their employment by the
Board of Directors to be subject to any of the requirements of such Members.
15.4 Liability Insurance. The Board of Directors shall obtain, and maintain in effect,
appropriate liability insurance to cover the activities of the SCV-GSA's Directors and staff in the
ordinary course of their duties.
15.5 Bond — Property of the Agency. Whomever is designated to be responsible for the
handling of SCV-GSA property shall be required to file an official bond in an amount to be determined
by the Board consistent with Government Code section 6505.1. SCV-GSA shall pay for the required
bond.
ARTICLE 16.
WITHDRAWAL AND TERMINATION
16.1 Unilateral Withdrawal. Any Member may unilaterally withdraw from this Agreement
without causing or requiring termination of this Agreement, effective upon one hundred eighty (180)
days written notice. Such notice shall be provided to the Board Secretary, the Board of Directors, and
each of the Members. If a Member withdraws, this Agreement will continue in full force and effect
among the remaining Members.
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16.2 Termination of Members. As an alternative to pursuing litigation against a Member for
failure to meet its obligations as set forth in this Agreement or as may be adopted by the Board from
time to time, the Board may vote to terminate such Member. Termination may be effected by the vote
of all but one of the current Directors. In the event of a termination, this Agreement shall continue in
full force and effect among the remaining members.
16.3 Rescission or Termination of SCV-GSA. This Agreement may be rescinded and the
SCV-GSA terminated by unanimous written consent of all Members, except during the outstanding term
of any SCV-GSA indebtedness.
16.4 Effect of Withdrawal or Termination. Upon termination of this Agreement, unilateral
withdrawal, or termination of a Member, a Member shall remain obligated to pay its share of all debts,
liabilities, and obligations required of the Member pursuant to terms of this Agreement, and that were
incurred or accrued prior to the effective date of such termination or withdrawal, including, without
limitation, those debts, liabilities, and obligations pursuant to Sections 4 and 14. For purposes of this
Agreement, annual contributions are incurred or accrued as of the effective date of this Agreement and
the first day of every fiscal year thereafter. Any Member who withdraws or is terminated from the
SCV-GSA shall have no right to participate in the business and affairs of the SCV-GSA or to exercise
any rights of a Member under this Agreement or the Act, but shall continue to share in reimbursements,
if any, from the SCV-GSA on the same basis as if such Member had not withdrawn, provided that a
Member that has withdrawn from the SCV-GSA shall not receive reimbursements, if any, in excess of
the reimbursable contributions made to the SCV-GSA while a Member.
16.5 Return of Contribution. Upon termination of this Agreement, any surplus money on -
hand shall be returned to the Members in proportion to their contributions made. To the extent
permitted by law, the Board of Directors shall first offer any property, works, rights, and interests of the
SCV-GSA for sale to the Members on terms and conditions determined by the Board of Directors. If no
such sale to Members is consummated, the Board of Directors shall offer the property, works, rights, and
interest of the SCV-GSA for sale to any non-member for good and adequate consideration. The net
proceeds from any sale shall be distributed among the Members in proportion to their contributions
made.
ARTICLE 17.
SPECIAL PROJECTS
17.1 Special Projects and Committees. In addition to the general activities undertaken by all
Members of the SCV-GSA, the SCV-GSA may initiate Special Projects and form Special Project
Committees that involve fewer than all Members. No Member shall be required to be involved in a
Special Project that involves fewer than all Members.
17.2 Special Project Agreement. With the unanimous approval of the Directors, Members
may undertake Special Projects in the name of the SCV-GSA. Prior to undertaking a Special Project,
the Members electing to participate in the Special Project shall enter into an activity agreement. Such
activity agreement shall provide that (i) no Special Project undertaken pursuant to such agreement shall
conflict with the terms of this Agreement; and (ii) the Members to the activity agreement shall
indemnify, defend, and hold the SCV-GSA, and the SCV-GSA's other Members, harmless from and
against any liabilities, costs, or expenses of any kind resulting from the Special Project described in the
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activity agreement. All assets, rights, benefits, debts, liabilities, and obligations attributable to a Special
Project shall be assets, rights, benefits, debts, liabilities, and obligations solely of the Members that have
entered into the activity agreement for that Special Project, in accordance with the terms of the activity
agreement, and shall not be the assets, rights, benefits, debts, liabilities, and obligations of those
Members that have not executed the activity agreement. Members not electing to participate in the
Special Project shall have no rights, benefits, debts, liabilities, or obligations attributable to such Special
Project.
ARTICLE 18.
MISCELLANEOUS PROVISIONS
18.1 No Predetermination or Irretrievable Commitment of Resources. Nothing herein shall
constitute a determination by the SCV-GSA or any of its Members that any action shall be undertaken or
that any unconditional or irretrievable commitment of resources shall be made, until such time as the
required compliance with all local, state, or federal laws, including without limitation the California
Environmental Quality Act, National Environmental Policy Act, or permit requirements, as applicable,
has been completed.
18.2 Public Involvement. The SCV-GSA shall comply with all of the requirements in
SGMA regarding public outreach and involvement, including but not limited to Water Code sections
10723.2 and 10723.4.
18.3 Notices. Notices to a Director or Member hereunder shall be sufficient if delivered to the
Board Clerk, City Clerk, or Board Secretary of the respective Director or Member and addressed to the
Director or Member. Delivery may be accomplished by U.S. Postal Service, private mail service, or
electronic mail.
18.4 Amendments to Agreement. This Agreement may be amended or modified at any time
only by subsequent written agreement approved and executed by all of the Members.
18.5 Agreement Complete. The foregoing constitutes the full and complete Agreement of the
Members. This Agreement supersedes all prior agreements and understandings, whether in writing or
oral, related to the subject matter of this Agreement that are not set forth in writing herein.
18.6 Severabilitv. Should any part, term or provision of this Agreement be decided by a court
of competent jurisdiction to be illegal or in conflict with any applicable federal law or any law of the
State of California, or otherwise be rendered unenforceable or ineffectual, the validity of the remaining
parts, terms, or provisions of this Agreement shall not be affected thereby, provided, however, that if the
remaining parts, terms, or provisions do not comply with the Act, this Agreement shall terminate.
18.7 Withdrawal by Operation of Law. Should the participation of any Member to this
Agreement be decided by the courts to be illegal or in excess of that Member's authority or in conflict
with any law, the validity of this Agreement as to the remaining Members shall not be affected thereby.
18.8 Assi nment. The rights and duties of the Members may not be assigned or delegated
without the written consent of all Members. Any attempt to assign or delegate such rights or duties in
contravention of this Agreement shall be null and void.
55396.00001\31339993. 4
14
18.9 Binding on Successors. This Agreement shall inure to the benefit of, and be binding
upon, the successors, and assigns of the Members, whose assignments have complied with Section 18.7
herein.
18.10 Dispute Resolution. In the event that any dispute arises among the Members relating to
(i) this Agreement, (ii) the rights and obligations arising from this Agreement, (iii) a Member proposing
to withdraw from membership in the SCV-GSA, or (iv) a Member proposing to initiate litigation in
relation to legal rights to groundwater within, or the management of, the Basin, the aggrieved Member
or Members proposing to withdraw from membership shall provide written notice to the other Members
of the controversy or proposal to withdraw from membership. Within thirty (30) days after such written
notice, the Members shall attempt in good faith to resolve the controversy through informal means. If
the Members cannot agree upon a resolution of the controversy within thirty (30) days from the
providing of written notice specified above, the dispute shall be submitted to mediation prior to
commencement of any legal action or prior to withdrawal of a Member proposing to withdraw from
membership. The mediation shall be no less than a full day (unless agreed otherwise among the
Members) and the cost of mediation shall be paid in equal proportion among the Members. The
mediator shall be either voluntarily agreed to, or, if the parties cannot agree upon a mediator, appointed
by the Superior Court upon a suit and motion for appointment of a neutral mediator. Upon completion
of mediation, if the controversy has not been resolved, any Member may exercise all rights to bring a
legal action relating to the controversy or withdraw from membership as otherwise authorized pursuant
to this Agreement. The SCV-GSA shall also participate in mediation upon request by a Director
concerning a dispute alleged by the Director concerning the management of the Basin or rights to extract
groundwater from the Basin, with the terms of such mediation to be conducted in the same manner
provided for in this Section 18.9 for disputes between or among Members.
18.11 Counterparts. This Agreement may be executed in counterparts. No counterpart shall be
deemed to be an original or presumed delivered unless and until the counterpart executed by the other
Members to this Agreement is in the physical possession of the Member seeking enforcement thereof.
18.12 Singular Includes Plural. Whenever used in this Agreement, the singular form of any
term includes the plural form and the plural form includes the singular form.
18.13 Member Authorization. The governing bodies of the Members have each authorized
execution of this Agreement, as evidenced by the respective signatures below.
IN WITNESS WHEREOF, the Members hereto have executed this Agreement by authorized
officials thereof on the dates indicated below, which Agreement may be executed in counterparts.
[Signatures on Following Pages]
55396,00001 \31339993. 4
15
SANTA CLARITA VALLEY WATER AGENCY
DATED: -a `,�U
Title: 6C-1yZ4,!L NfVgGc-p"
APPROVED AS TO FORM:
By:
Title: Cn�,ru cVt
55396.00001 \31339993. 4
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CITY OF SANTA CLARITA
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APPROVED AS TO FORM:
By:
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55396.00001 \31339993. 4
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DATED: f - )- 1 � � z
COUNTY OF LOS ANGELES
OFFICE OF THE COUNTY COUNSEL
} • Nl la 648 KENNETH HAHN HALL OF ADMINISTRATION
500 WEST TEMPLE STREET
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C�Urm-0 Nth LOS ANGELES, CALIFORNIA 90012-2713 TELEPHONE
(213)893-0924
MARY C. WICKHAM FACSIMILE
County Counsel September 18, 2018 (213) 687-7337
TDD
(213)633-0901
VIA EXPRESS MAIL
Rick Viergutz
26521 Summit Circle
Santa Clarita, California 91350-3049
Re: Santa Clarita Valley Water Agency Joint Exercise of Power
Agreement
Dear Mr. Viergutz,:
Pursuant to Michael Moore's instructions enclosed herein are the
signatures pages for the Santa Clarita Valley Water Agency Joint Exercise of
Power Agreement. If you have any questions or comments, please contact me.
Very truly yours,
MARY C. WICKHAM
County Counsel
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Enclosure
ROCIO MURILLO
Legal Office Support Assistant I
Public Works Division
LOS ANGELES COUNTY WATERWORKS DISTRICT NO.36, VAL VERDE
DATED: cl' IV b
APPROVED AS TO FORM,
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THE COUNTY OF LOS ANGELES
DATED: 9 / o < < S
By:
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APPROVED AS TO FORM:
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