A bill authored by Senator Scott Wilk, which would bring a new water agency to the Santa Clarita Valley, passed Wednesday in the Senate Governance and Finance Committee,

SB 634 seeks to establish a regional water agency for the Santa Clarita Valley. The Senate Committee on Governance and Finance approved Senate Bill 634 with a 6-0 vote

“I am very pleased the Committee sees the value in a creating a new state water agency that will reflect the values of transparency and accountability in the Santa Clarita Valley’s water delivery,” said Wilk. “I want to ensure that residents of the Santa Clarita Valley have a first class water provider.”

The move has been touted by supporters as a way to deliver water more efficiently and less expensively, by  virtue of gaining more purchasing power, to name one example. Those opposed to the effort have noted that by making this move legislatively, lawmakers are by passing the procedure set in place to form  new agency.

Late last year, the boards of the Castaic Lake Water Agency (CLWA) and Newhall County Water District (NCWD) voted to support legislation that would dissolve the two agencies and create a new valley-wide water agency. Senate Bill 634 is the fruit of those negotiations.

“The legislative process is a collaborative one which allows for the full vetting of the issues,” said Wilk.  “Over the last 18 months, my staff and I have invested countless hours meeting with all stakeholders including ratepayers, local elected officials, environmentalists and water professionals seeking input into questions such as ‘Should we create a new agency?’  ‘And, if so, what would that look like?'”

Senate Bill 634 repeals the CLWA principal act and creates the Santa Clarita Valley Water District (SCVWD) by reorganizing CLWA and NCWD into the new district and provides that SCVWD is the successor to the two reorganized districts for the purposes of debts, assets, contracts, employees, property, and outstanding bonds. The purpose of the district is to provide, sell, manage, and deliver surface water, groundwater, and recycled water for municipal, industrial, domestic, and other purposes at retail and wholesale, and provide a means to unify and modernize water resource management within the Santa Clarita Valley.

The initial boundaries of the new district are the same as those of CLWA as existing on December 31, 2017 and as confirmed by the Los Angeles LAFCO. Fees and charges imposed by CLWA and NCWD continue to be levied until the new district’s board modifies them, and the new district is the successor in interest to CLWA’s State Water Project contract and all associated rights and responsibilities.

SB 634 creates retail divisions for the territory previously covered by NCWD and the Santa Clarita Water Division and keeps indebtedness separate for the retail divisions. The new district must continue to supply water at wholesale to District 36 and Valencia Water Company. However, by July 1, 2018, the board of Valencia Water Company and the new district must take the appropriate steps to dissolve the company and transfer its assets and liabilities to the new district. Any future proceedings to incorporate District 36 must go through LAFCO. SB 634 also creates three electoral divisions for the new district and specifies the initial boundaries of those divisions. Those boundaries must be adjusted after each census according to existing law.

The bill now moves to the Committee on Senate Appropriations.