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Castaic Lake Water Agency

                                                         Memorandum


                                                                                               October 16, 2017
                           To:        CLWA Board of Directors
                           From:      Valerie L. Pryor
                                      Assistant General Manager
                           Subject:   Approve a Resolution Approving the Dissolution of the Santa Clarita Water
                                      Company



              SUMMARY
              When the Agency purchased the Santa Clarita Water Company (SCWC), the Agency acquired all of the
              assets and converted SCWC to a non-profit corporation which exists today.  Staff recommends dissolving
              SCWC as it serves no purpose and requires staff time to maintain.

              DISCUSSION
              The process to dissolve SCWC is as follows:


                  1. The CLWA Board of Directors as the sole member approves a resolution approving the dissolution
                     of SCWC (Attachment A).
                  2. The SCWC Board of Directors signs and dates a Joint Unanimous Written Consent form
                     (Attachment B).
                  3. The SCWC Board of Directors sign a Certificate of Dissolution and that form is forwarded to the
                     State Attorney General (Attachment C) along with an explanatory communication from General
                     Counsel (Attachment D).
                  4. The Agency will receive a confirmation letter from the State Attorney General which will be
                     submitted to the California Secretary of State along with the signed Certificate of Dissolution.

              SCWC has been inactive since August 31, 1998.  Staff and legal counsel find that SCWC serves no
              purpose but does require administrative work.  The Agency annually files with the State Franchise Tax
              Board that SCWC has had no financial activities and biannually files a Statement of Information with the
              California Secretary of State.  This work will no longer be necessary after the dissolution of the SCWC.

              On October 12, 2017, the Financial and Operations Committee considered approving a resolution
              approving the dissolution of the Santa Clarita Water Company.

              FINANCIAL CONSIDERATIONS
              None at this time.

              RECOMMENDATION
              The Financial and Operations Committee recommends that the Board of Directors approve a resolution
              approving the dissolution of the Santa Clarita Water Company.

              VLP

              Attachments





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