Residents and business leaders in the San Fernando Valley submitted an application to the Los Angeles Local Agency Formation Commission (LAFCO) to detach from the City of Los Angeles and incorporate as a new, smaller city. The proponents desired an increased level of local control over municipal services and planning issues; concerns existed that the City of Los Angeles was not responsive to the needs of Valley residents. EPS was part of a team of consultants engaged by the proponents to help structure the new city and the terms under which it would split from the City of Los Angeles and reorganize. EPS was instrumental in reviewing and responding to the Comprehensive Fiscal Analysis prepared by LAFCO, developing a proposed city budget, preparing Terms and Conditions for the reorganization, and a proposed agreement for mitigating impacts on the City of Los Angeles. Key issues addressed included the disposition of infrastructure, assets and liabilities, employee transfers to the new city, and payments for contract services and mitigation.