2. Description of Proposed Transaction

Cañada Woods is a Delaware limited liability company authorized to do business in California. The company currently has two members, each of which owns a 50% interest: Clinton Eastwood,¹ trustee of the 1988 Clinton Eastwood Trust, and Margaret Eastwood, trustee of the Margaret Eastwood Trust. The company is managed by Howard M. Bernstein and Roy D. Kaufman.

Pursuant to Pub. Util. Code § 1001, Cañada Woods in this application seeks approval of the following:

· Merger of Cañada Woods and Cañada Woods Treatment Company, LLC, with Cañada Woods as the surviving entity.

· Acquisition of the facilities of Cañada Woods Treatment Company and assumption of its reclaimed water and sewer service obligations.

· Merger of Cañada Woods and the Monterra Ranch Mutual Water Company, a California corporation, with Cañada Woods as the surviving entity.

· Acquisition of the facilities of the mutual water company and assumption of its water service obligations.

· Certification from the Commission to provide water service, sewer service and reclaimed water service to 3,653 acres of subdivided lands in the unincorporated area of Monterey County located between State Highway 68 to the north and Carmel River to the south.