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BOARD MEMORANDUM

DATE: December 20, 2017
TO: Santa Clarita Valley Water Agency Board of Directors

FROM: Matthew G. Stone
General Manager
SUBJECT: Approve Appointment of Co-General Counsel and Authorization to Enter into a Legal
Services Agreement with Lagerlof, Senecal, Gosney & Kruse LLP

SUMMARY AND DISCUSSION

At the joint Board meeting of the Castaic Lake Water Agency (CLWA) and Newhall County
Water District (NCWD) held on December 4, 2017 regarding the transition of CLWA and NCWD
into the Santa Clarita Valley Water Agency (SCV Water), the Boards of Directors indicated a
desire to appoint Joseph Byrne of Best Best & Krieger LLP (BBK) and Thomas Bunn of
Lagerlof, Senecal, Gosney & Kruse LP (Lagerlof), as co-general counsel to the Santa Clarita
Valley Water Agency (SCV Water).

Mr. Byrne and Mr. Bunn have worked together for over two years to bring CLWA and NCWD
together to create SCV Water, including writing significant portions of SB 634. They both have
a significant amount of institutional knowledge about CLWA and NCWD respectively and have
been intimately involved in the transition to SCV Water. This knowledge and their overall
expertise is of significant value to SCV Water going forward and it is in the best interests of SCV
Water to continue to retain both as co-general counsel. As co-general counsel, they will work
together to coordinate the provision of legal services and divide responsibilities as necessary to
provide high quality legal services and reduce the overall legal costs to SCV Water.

The engagement with BB&K and Lagerlof would continue under the same terms and conditions
as what existed between each firm and CLWA and NCWD respectively. Because Lagerlof did
not have a written contract with NCWD, it is also necessary at this time to authorize the General
Manager to enter into a legal services agreement with Lagerlof on the same terms as existed
between Lagerlof and NCWD. The legal services agreement that existed between BB&K and
CLWA would remain in effect.

FINANCIAL CONSIDERATIONS

The fiscal study conducted in 2016 projected potential legal cost savings through both the
cessation of litigation and reduction in duplicate legal work to support two separate and
independent operating agencies. The estimated savings of ending litigation is $350,000. It was
estimated that an approximate 28% savings ($140,000) in legal expenses could also be
achieved.

The actual savings will depend on the number and complexity of legal issues encountered going
forward.

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