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agency shall succeed to the legal authority held by the Castaic Lake Water
Agency for the performance and enforcement of that contract.
(h) The indebtedness of the Newhall County Water District and the Santa
Clarita Water Division, a retail division of the Castaic Lake Water Agency,
that exists as of December 31, 2017, including acquisition costs, tax
obligations, and debt financing of capital improvement projects, shall be
borne by retail divisions of the agency that correspond with the Newhall
County Water District and Santa Clarita Water Division areas, respectively,
and paid for from the revenues of the corresponding retail divisions. Any
indebtedness incurred by the agency shall not be limited by this subdivision.
(i) The agency shall continue to supply water at wholesale to Los Angeles
County Waterworks District No. 36, Val Verde, but shall not serve water
at retail within the boundaries of that waterworks district without that
waterworks district’s consent or annexation or consolidation into the agency.
Los Angeles County Waterworks District No. 36, Val Verde, upon mutual
agreement between it and the agency, may be annexed or consolidated into
the agency following appropriate procedures under the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
(Division 3 (commencing with Section 56000) of Title 5 of the Government
Code). Any proposed future change of organization or reorganization
involving the agency and the Los Angeles County Waterworks District No.
36,ValVerde, or any other public agency under the Local Agency Formation
Commission for the County of Los Angeles on or after January 1, 2018,
shall be subject to the filing with the Local Agency Formation Commission
for the County of Los Angeles and shall be subject to review, consideration,
and determination by the Local Agency Formation Commission for the
County of Los Angeles consistent with the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000 (Division 3 (commencing with
Section 56000) of Title 5 of the Government Code).
(j) The agency shall continue to supply water at wholesale to Valencia
Water Company. No later than January 31, 2018, the agency, as the successor
in interest to Castaic Lake Water Agency, shall take the appropriate steps
together with the board of directors of Valencia Water Company to authorize
the dissolution of Valencia Water Company and the transfer of the
company’s assets, property, liabilities, and indebtedness to the agency,
consistent with the requirements of subdivision (k) and any other obligations
of the parties. The dissolution and transfer shall be finalized no later than
May 1, 2018, but the board of the agency may postpone this deadline until
no later than July 1, 2018, if, by resolution, the board of the agency finds
that specific circumstances require additional time. A transfer pursuant to
this subdivision is not subject to the Cortese-Knox-Hertzberg Local
Government Reorganization Act of 2000 (Division 3 (commencing with
Section 56000) of Title 5 of the Government Code).
(k) If Valencia Water Company or any other retail water supplier is
integrated into the agency, the indebtedness of the retail water supplier that
exists immediately before the integration shall be borne by the customers

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