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Home My WebLink AboutApprove the West Orange County Water Board (WOCWB) Joint Pow NTING 2000 Main Street, ?s // Huntington Beach,CA yr % 92648 -:_ City of Huntington Beach e=r APPROVED 7-0 it File#: 26-172 MEETING DATE: 3/17/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Chau Vu, Director of Public Works PREPARED BY: Chris Davis, Senior Management Analyst Subject: Approve the West Orange County Water Board (WOCWB) Joint Powers Authority Fiscal Year 2026/27 proposed budget in the amount of$1,518,500 Statement of Issue: The City is a member of the West Orange County Water Board (WOCWB) Joint Powers Authority. Each member agency must approve the proposed WOCWB Fiscal Year 2026/27 prior to its adoption by the Board as a whole. Financial Impact: The City's share of the West Orange County Water Board (WOCWB) Fiscal Year 2026/27 total proposed budget of$1,518,500 is $459,894. The amount consists of$74,894 for the annual operating budget and $385,000 for the City's share of the loan repayment for the OC-35 Pipeline Relocation Project. The $1,000,000 expenditure for the OC-9 and OC-35 transmission main lifespan extension program will not require additional contributions from member agencies, as these funds have been collected by WOCWB over the past seven years. The Fiscal Year 2026/27 proposed operating budget is included in Water Fund (Business Unit 50685801), and the debt service is included in Water Master Plan (Business Unit 50791006). Recommended Action: Approve the West Orange County Water Board (WOCWB) Proposed Fiscal Year 2026/27 budget, including the City of Huntington Beach's share in the amount of$459,894. Alternative Action(s): Do not approve the proposed West Orange County Water Board (WOCWB) Fiscal Year 2026/27 budget and direct staff accordingly. City of Huntington Beach Page 1 of 3 Printed on 3/11/2026 powered by LegistarTM" 236 File#: 26-172 MEETING DATE: 3/17/2026 Analysis: The West Orange County Water Board (WOCWB) is a Joint Powers Authority comprised of the cities of Garden Grove, Seal Beach, Westminster, and Huntington Beach, for the purpose of purchasing water from the Municipal Water District of Orange County and transporting it through the OC-9 and OC-35 transmission mains owned by the member agencies. Huntington Beach owns 56.1 percent of the transmission system. WOCWB is governed by a five-member board consisting of one elected official each from Garden Grove, Seal Beach, and Westminster and two elected officials from Huntington Beach. Council Members Pat Burns and Gracey Van Der Mark represent the City of Huntington Beach. The General Manager of the WOCWB (the City of Huntington Beach Deputy Director of Public Works) submits a proposed budget to the Board for review at midyear. Each member agency will approve their portion of the budget, with ratification by the WOCWB at the April meeting. The total proposed budget for FY 2026/27 is $1,518,500. This includes $133,500 for the operating budget, which covers maintenance, electricity, and administrative costs (insurance, legal costs, audit fees); $385,000 in debt service for the OC-35 realignment project reimbursement agreement with OCTA; and $1,000,000 for the OC-9/OC-35 transmission main lifespan extension program (formerly the Cathodic Protection Program). Expenditures for the transmission main lifespan extension program will not require contributions from the member agencies this fiscal year, as funds have been accumulated over the previous seven years. These funds are being carried over from the previous year, but budget authority is required in order to expend the funds. Context for the debt service- The City of Huntington Beach is the final agency in WOCWB that has not paid off their obligation of the 10-year loan early. This budget request includes funding to make the final payments, thereby eliminating future interest payments as well as administrative tasks. As a reminder, in 2017, OCTA notified WOCWB that they would only offer the low-interest loan to the Board as a whole and not enter into loans with individual member agencies. Therefore, debt payments were made by WOCWB to OCTA. Conversely, WOCWB entered into a Financial Participation Agreement with each member agency to ensure that they paid their portion of the loan, and each member agency paid their share of the loan payment to WOCWB. The loan balance is currently $579,758, with one more quarterly payment due this fiscal year. The Board reviewed the proposed budget at the January 21, 2026 regular meeting. Upon approval by each member agency, the Board will ratify the budget at its next regular meeting, scheduled for April 15, 2026. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Goal 6 - Infrastructure Investment, Strategy C - Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial priority. City of Huntington Beach Page 2 of 3 Printed on 3/11/2026 powered by LegistarT" 237 File #: 26-172 MEETING DATE: 3/17/2026 Attachment(s): 1. WOCWB Proposed Fiscal Year 2026/27 Budget 2. PowerPoint Presentation City of Huntington Beach Page 3 of 3 Printed on 3/11/2026 powered by LegistarTe 238 WEST ORANGE COUNTY WATER BOARD PROPOSED FISCAL YEAR 2026/27 BUDGET FY 25/26 FY 26/27 Approved Proposed ACCOUNT NUMBER ACCOUNT DESCRIPTION OPERATING EXPENSES 50885101.61200 Electricity $4,500 $4,500 50885101.64620 General Repairs and Maintenance $30,000 $35,000 50885101.64620 Interconnect Rehabilitation $25,000 $70,000 50885101.69345 Auditing $5,500 $6,000 50885101.69375 Attorney Fees $2,500 $2,500 50885101.73010 General/Liability Insurance $9,500 $10,500 50885101.75400 Board Stipend Expense $2,500 $2,500 50885101.79100 Contingency $2,500 $2,500 OPERATING EXPENSES $82,000 $133,500 NON OPERATING EXPENDITURES 50885102.88010 Debt Service $475,000 $385,000 SUBTOTAL $557,000 $518,500 CAPITAL EXPENSES 50885104.82100 Condition Assessment2 $1,000,000 $1,000,000 TOTAL $1,557,000 $1,518,500 1City of Huntington Beach for OC-35 realignment project loan; pass thru 2 Condition Assessment Project Funds will come from funds already collected for the project beginning in FY 2020-21, and will not increase the contributions from member agencies. January 15,2026 239 FISCAL YEAR 2026/27 PROPOSED BUDGET AGENCY CONTRIBUTIONS Operating Budget ACCOUNT NUMBER AGENCY OWNERSHIP FY 26/27 COST PERENTAGE 50800508.46610 Huntington Beach 56.1 $74,894 50800508.46620 Garden Grove 4.2 $5,607 50800508.46630 Seal Beach 14.3 $19,091 50800508.46640 Westminster 25.4 $33,909 Totals 100.0 $133,500 Seventh Year OC-35 Relocation Project Loan Payment 50800508.46610 Huntington Beach 56.1 $385,000 50800508.46620 Garden Grove* 4.2 $0 50800508.46630 Seal Beach * 14.3 $0 50800508.46640 Westminster* 25.4 $0 Totals 100.0 $385,000 *Garden Grove and Westminster have paid off their portions of the loan; Seal Beach is in the process of paying off their portion of the loan. Total Adopted Budget 50800508.46610 Huntington Beach 56.1 $459,894 50800508.46620 Garden Grove* 4.2 $5,607 50800508.46630 Seal Beach * 14.3 $19,091 50800508.46640 Westminster* 25.4 $33,909 Total Budget $518,500 January 15, 2026 240 /00.40 'rr,,.r..• Isw, 1 ti\ -11 I N 111111. `� . .. 6 TO Approve West Orange . ip c .•40 milk cj0�PORATF `` County Water Board o . `• • -- - =- •• -37 Fiscal Year 2026/27 ' •. cam +, �- , .. ., Ili Budget_____,,_, _ ka ---- iii "c:C i- 10 - - ,/i >>,%,,: March 17, 2026 • v . . -'. -- - - ' - .. ) • •• 44:;k** 00 ., 17, 19 n ,c en Islissevolo <C 00 low LI 0°OONTNlow C.) "Ar,# 241 WOCWB • Joint Powers Authority that owns and operates OC-9 and OC-35 Water Transmission mains • Five (5) member board — Councilmembers Pat Burns and Gracey Van Der Mark representing Huntington Beach • Proportional share: • Huntington Beach (56. 1 %) • Garden Grove (4.2%) • Seal Beach (14.3%) �,�NTiNcroA • Westminster (25.4%) � �.� �fORP0Rgtfp'•414s<55�� • • Each Member Agency must approve the budget before the o WOCWB as a whole can approve the budget in April ist: coi31. .gy p,•\�o 242 1 WOCWB FY 2026/27 Budget FISCAL YEAR 2026/27 PROPOSED BUDGET AGENCY CONTRIBUTIONS Operating Budget ACCOUNT NUMBER AGENCY OWNERSHIP FY 26/27 COST PERENTAGE 50800508.46610 Huntington Beach 56.1 $74,894 50800508.46620 Garden Grove 4.2 $5.607 50800508.46630 Seal Beach 14.3 $19,091 50800508.46640 Westminster 25.4 $33,909 Totals 100.0 $133.500 Seventh Year 0C-35 Relocation Project Loan Payment 50800508.46610 Huntington Beach 56.1 $385,000 50800508.46620 Garden Grove' 4.2 $0 50800508.46630 Seal Beach' 14.3 $0 50800508.46640 Westminster' 25.4 $0 Totals 100.0 $385,000 /irotoarrp��' `Garden Grove and Westminster have paid off their portions of the loan,Seal Beach is in the process of paying +► oft their pottier of the loan di",��%t NO ro Total Adopted Budget �0, O`!.'\ „,70Rq)Fp•h*��` 50800508.46610 Huntington Beach 56,1 $458.894 ll _ -i 'z� ' 50800508.46620 Garden Grove' 4.2 $5,607 � "-; „.ram-. T ira. x ilk 50800508.46630 Seal Beach' 14.3 $19.091 % U;- -__-.=7;.M 50800508.46640 Westminster' 25.4 533.909 _ k may: • ._ " w.,,- .'ma � •r1, i Total Budget 5518,500 1\�17 'y., ,F T o .••' CDUNTV c ' 243 WOCWB FY 2026/27 Budget • Budget presented at January 21 , 2026 meeting • Requested each agency to approve before adoption by the Board at the April 16 , 2026 meeting • 0 "kit.A ...... iff N.\ 0. ORPORAT 644 .• _N e A-t Ilk • - - • , % 244 � ar Y Questions ? ,.....,., c,/,4, ,,,., i ,..„...,...„, ,,:. , .. 0 ./. ...., . , • ......., t� ,, , ..„._,.....,...,....,.... ...,__. .,.., , ... ,..-=',Fi,=3; r:'7,- t} Y_ 4 'i . rNV" E,, _ . -,v s .. ' • i - f�,may+'"'' ra�.yi�C la r� r