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CONTENTS

               EXECUTIVE SUMMARY ................................................................................................. 1

               1.0  INTRODUCTION....................................................................................................... 4
                     1.1  Background...................................................................................................... 4

                     1.2  Senate Bill 634 ................................................................................................. 4
                     1.3  Public Engagement .......................................................................................... 6

               2.0  SANTA CLARITA VALLEY WATER SERVICE ........................................................ 13
                     2.1  Description of Existing Water Service – Provided by SCV Water as
                          the Successor Entity ..................................................................................... 13
                     2.2  Planned Water Service .................................................................................. 15

               3.0  GOVERNANCE ...................................................................................................... 18
                     3.1  Historical Governance Structure .................................................................... 18

                     3.2  SCV Water Modernized Governance ............................................................. 19
               4.0  ORGANIZATIONAL PLAN ...................................................................................... 21

                     4.1  Board of Directors and Staffing ...................................................................... 21
                     4.2  Outside Services ............................................................................................ 27

               5.0  FINANCES .............................................................................................................. 29
                     5.1  SB 634 Key Financial Considerations ............................................................ 29

                     5.2  Accounting Principles .................................................................................... 29
                     5.3  Financial Practices and Transparency ........................................................... 32
                     5.4  Financing of Services .................................................................................... 34

                     5.5  Administration Practices ................................................................................ 36

               6.0  OPERATIONS AND INFRASTRUCTURE ............................................................... 38
                     6.1  Sources of Supply .......................................................................................... 38
                         6.1.1  Groundwater Wells ................................................................................ 38
                         6.1.2  Turnouts ................................................................................................ 38
                         6.1.3  Water Quality ........................................................................................ 39

                     6.2  Distribution Facilities ...................................................................................... 39
                         6.2.1  Storage Facilities ................................................................................... 40
                         6.2.2  Booster Facilities ................................................................................... 40
                     6.3  Pipeline, Treatment Plants, Recycled Water, Sewage Collection and
                          Appurtenances .............................................................................................. 40
                         6.3.1  Pipeline ................................................................................................. 40
                         6.3.2  Surface Water Treatment Plants ............................................................ 41
                         6.3.3  Recycled Water System ........................................................................ 42
                         6.3.4  Sewer Facilities ..................................................................................... 42
                         6.3.5  Appurtenances ...................................................................................... 42

               SCV Water Plan for Services                                                             Page i
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