On February 17, 2017, California Senator Scott Wilk introduced SB 634, which Governor Brown signed into law on October 15, 2017. The bill established the Santa Clarita Valley Water Agency (SCV Water), effective on January 1, 2018, and directs SCV Water to take the appropriate steps together with the Board of Directors of Valencia Water Company (VWC) to authorize the dissolution of VWC no later than January 31, 2018, and the transfer of the company's assets, property, liabilities, and indebtedness to SCV Water. SB 634 requires that the dissolution and transfer shall be finalized no later than May 1, 2018. Staff have developed a plan of action to effect this transaction by January 31, 2018, and recommends the Board:

1. Adopt the Plan of Dissolution approved by the Board of Directors of VWC and authorize the General Manager to take the necessary steps on behalf of SCV Water to implement the plan and carry out the Dissolution in accordance with SB 634.

2. Find that the proposed Board action is not a CEQA "project" or, alternatively, is exempt.