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Description of Proposed JPA Powers and Governance

The proposed JPA will create a public entity separate from its member agencies, will terminate the
existing MOU, and the JPA will assume the role of the SCV-GSA. The SCV-GSA will have powers to
exercise any and all common powers of its members reasonably related to the purposes of the SCV-
GSA. The JPA Agreement lists powers in more detail; however powers include the ability to adopt
rules, regulations, develop a GSP, obtain permits, collect data, acquire property, distribute water,
recharge water, assess fees, enter into contracts, etc. A copy of the draft JPA Agreement is attached.

The JPA will form a seven member Board of Directors. Four Directors will be appointed by the Santa
Clarita Valley Water Agency, one by the City Council for the City of Santa Clarita, one by the County
of Los Angeles Board of Supervisors, and one by the Los Angeles County Waterworks District No.
36. The JPA Board will appoint a Chair, Vice Chair, Secretary, and Treasurer.

A quorum of any meeting of the Board of Directors shall consist of a majority of the seven Directors.
An affirmative vote of the JPA requires at least four Directors, unless otherwise specified. The Board
will strive to govern by consensus, however, there are provisions for supermajority and unanimous
voting in limited circumstances.

Supermajority voting requires at least five Directors and is specified for 1) adoption of the
Groundwater Sustainability Plan, 2) any amendments to bylaws, 3) approval of the annual budget, 4)
the adoption of any groundwater regulatory extraction fees, 5) the adoption of any taxes, fees or
assessments subject to Proposition 218, 6) a decision to initiate or settle litigation, and 7) the
approval of any agreement between the SCV-GSA and any member.

Unanimous voting is required for addition of new members to the JPA, rescission of the JPA
Agreement terminating the SCV-GSA, and creating a Special Project Agreement.

The SCV-GSA may issue bonds, notes, or other forms of indebtedness as authorized in the JPA
Agreement, providing such issuance is approved at a meeting of the Board of Directors.

The SCV-GSA Board of Directors may establish one or more standing or ad hoc committees
consisting of Directors, including but not limited to a Budget and Finance Committee, Planning
Committee, and an Executive Committee.

Members may unilaterally withdraw from the JPA Agreement without causing or requiring termination
of the agreement. The Board may vote to terminate a member in the event a member does not meet
its obligations under the agreement. Such a vote requires all but one of the current Directors. The
JPA Agreement also contains a dispute resolution section that describes an informal process,
mediation, and legal action.

In addition to the general activities undertaken by all members of the SCV-GSA, the SCV-GSA may
initiate Special Projects and form Special Project Committees that involve fewer than all members.
With unanimous approval of the Board of Directors, members may undertake Special Projects in the
name of the SCV-GSA. Prior to undertaking any such activity however, members must enter into a
Special Project Activity Agreement. This may prove useful in the future should one or more entities
wish to implement a project identified in the GSP.

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