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RESOLUTION NO.

RESOLUTION OF THE BOARD OF DIRECTORS
OF THE SANTA CLARITA VALLEY WATER AGENCY
ADOPTING THE PLAN OF DISSOLUTION OF THE VALENCIA WATER COMPANY,
AND FINDING THAT THE DISSOLUTION IS NOT SUBJECT TO CEQA
OR, ALTERNATIVELY, IS EXEMPT

WHEREAS, on October 15, 2017, Senate Bill 634 was signed into law by Governor Brown,
thereby creating the Santa Clarita Valley Water Agency (“SCV Water”); and
WHEREAS, SB 634 requires SCV Water, as the sole shareholder of Valencia Water Company
(“VWC”), to take all steps necessary to dissolve VWC as a corporation no later than January 31,
2018, and transition the operations, assets, and liabilities of VWC to SCV Water (“Dissolution”);
and

WHEREAS, the Dissolution required by SB 634 is not subject to the California Environmental
Quality Act (Pub. Res. Code §§ 21000 et seq.) (“CEQA”) because it is not a “project,” because
the state legislature did not intend for CEQA review to occur, because the Dissolution involves
little or no discretion and thus is ministerial in nature, and/or because the Dissolution is
otherwise exempt from CEQA; and

WHEREAS, in anticipation of the requirements of SB 634, the Board of Directors of VWC has
taken action to prepare for the Dissolution and has adopted a plan of dissolution that it has
recommended to SCV Water for approval as the sole shareholder of VWC;

WHEREAS, the Board of Directors of SCV Water has reviewed the plan of dissolution
recommended by the Board of Directors of VWC and now desire to approve the Dissolution and
the adoption of the plan;

WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW THEREFORE, THE BOARD OF DIRECTORS OF THE SANTA CLARITA VALLEY
WATER AGENCY DOES RESOLVE AS FOLLOWS:

SECTION 1. RECITALS

The recitals above are true and correct and are incorporated into this Resolution by
reference as findings of fact.

SECTION 2. COMPLIANCE WITH THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

Based upon its review of the entire record, including the Staff Report, any public comments
or testimony presented to the Board, the enactment of Senate Bill 634, and the facts
outlined below, the Board hereby finds and determines that the actions required by SB 634
are not subject to CEQA for the following reasons:

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