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BOARD MEMORANDUM

DATE: July 12, 2018
TO: Board of Directors

FROM: Dirk Marks
Director of Water Resources
SUBJECT: Approve a Resolution Authorizing the General Manager to Execute an
Agreement Forming the Joint Powers Authority for the Santa Clarita Valley
Groundwater Sustainability Agency (SCV-GSA) and to Execute a Contract for
SCV Water to Provide Management and Technical Services to SCV-GSA

SUMMARY

The Santa Clarita Valley Water Agency (SCV Water) is a member of the Santa Clarita Valley
Groundwater Sustainability Agency (SCV-GSA). The SCV-GSA was formed via a Memorandum of
Understanding (MOU) on May 24, 2017. The MOU contemplates its members creating a Joint
Powers Authority (JPA) governance structure. SCV-GSA member agency staff have negotiated a
Joint Powers Agreement (JPA Agreement) and an Administrative Services Agreement whereby SCV
Water would provide administrative, management, and technical services necessary to assure
compliance with the Sustainable Groundwater Management Act including preparation of a
Groundwater Sustainability Plan.

DISCUSSION

On May 24, 2017, the SCV-GSA was formed via execution of an MOU between six local entities.
The members listed in the MOU are Castaic Lake Water Agency, City of Santa Clarita, County of Los
Angeles, Los Angeles County Waterworks District No. 36, Newhall County Water District and the
Santa Clarita Water Division. Three of these member agencies are now part of SCV Water, the
successor agency as defined by Senate Bill 634. The MOU describes: coordination, responsibilities,
funding, consideration of interests of all beneficial uses and users of groundwater, and other items.
With limited time to create the SCV-GSA among six member agencies, an MOU was the logical
approach to form the SCV-GSA. Members understood operating the SCV-GSA under an MOU
would be inefficient, and articulated a desire to form a JPA at a later time.

Under the MOU, any contracting required by the SCV-GSA would require each member go to its
Board or Council to approve funding and contracts. With so many member agencies, each with
different funding and contracting approaches, initiating and then administering contracts is inefficient
for the SCV-GSA. With many contracts likely needed in the future, such inefficiency could result in
delays in meeting required SGMA deadlines and potential compliance issues. Governance by a JPA,
however, allows member agencies to specify a member agency as responsible for contracting with
consultants. Administration of the SCV-GSA is also an important consideration, and is now
streamlined via the approach in the JPA which allows for SCV Water to the take the lead on
administration.

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