Fountain Valley City Council
June 16, 2026

AGENDA

CITY COUNCIL/ SUCCESSOR

AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/

FOUNTAIN VALLEY HOUSING AUTHORITY

Closed Session 3:30 p.m.

Study Session 5:15 p.m.

Regular Meeting 6:00 p.m.

Tuesday, June 16, 2026

Council Chambers
10200 Slater Avenue
Fountain Valley, CA 92708
http://www.fountainvalley.org
MEETING ASSISTANCE: In compliance with the Americans with Disabilities Act, anyone needing special assistance to participate in a meeting of the government bodies listed herein should contact the City Clerk’s Office at (714) 593-4445. Notification 72 hours prior to the meeting allows the City to make reasonable arrangements to ensure accessibility to the meeting.

AGENDA COMMUNICATIONS: All revised or additional documents and writings related to an item on this agenda provided to all or a majority of the government body members after distribution of the agenda packet, are available for public inspection (1) in the City Clerk’s Office at 10200 Slater Avenue, Fountain Valley, CA 92708 during normal business hours; and (2) in the Council Chambers at the time of the meeting. Unless directed otherwise by a government body listed herein all actions shall be based on/memorialized by the latest document submitted as a late communication.

PUBLIC COMMENTS/PUBLIC HEARINGS: Persons wishing to address the Cit y Counci l or other government body listed complete a speaker card and give it to the City Clerk prior to the public comment period. Requests to speak will not be accepted after the public comment session begins without permission of the Mayor/Chair. Speakers must limit remarks to a total of (3) three minutes and address the City Council through the Mayor.

Comments to individuals or staff are not permitted. Scheduled Matters, including Public Hearings: Indicate on the card what item you want to address. Unscheduled Matters: Indicate on the card what subject matter you want to address. Comments must be related to issues that are within the jurisdiction of the governing body listed on the agenda. Pursuant to the Brown Act, the governing body may not enter into discussion regarding items not on the agenda.

CONSENT CALENDAR: All matters listed under the Consent Calendar are considered by the governing bodies listed herein to be routine and will be enacted on simultaneously with one motion without discussion unless separate action and/or discussion is requested by a governing body member, staff, or a member of the public.

PUBLIC HEARINGS: Persons wishing to speak in favor of or in opposition to a proposal are given an opportunity to do so during the public hearing. Those wishing to address a governing body during the hearing are requested to complete the speaker card and submit it to the City Clerk prior to the hearing. If a proposed action is challenged in court, there may be a limitation to
raising only those issues raised during the hearing or in written correspondence received by the governing body at or before the hearing.

Note: The Fountain Valley City Council serves as the Successor Agency to the Fountain Valley Agency for Community Development (Successor Agency), the Fountain Valley Housing Authority, and the Fountain Valley Finance Authority. The Actions of the Successor Agency are separate and apart from the actions of the City Council.

ZOOM LINK INFORMATION
• Participants that choose to watch the City Council meeting through zoom are automatically placed in the waiting room and will only be allowed into the Zoom meeting if they request to make a public comment. In order to make a public comment, you will indicate through the chat feature which item you would like to speak on, and click on the “raise hand” icon to let the administrator know you wish to speak. • All participants are muted unless you are requesting to speak, at which time you will be allowed to unmute and make you comment.
• All public comments are allowed up to 3 minutes to speak.

Topic: City Council
Time: Jun 16, 2026 06:00 PM Pacific Time (US and Canada) Join Zoom Meeting
https://fountainvalley.zoom.us/j/89217986129?pwd=sAxXKY0Js54pQi0IbLDj8gqplZF81z.1 Meeting chat link
https://fountainvalley.zoom.us/launch/jc/89217986129
Meeting ID: 892 1798 6129
Passcode: 368368

YOUTUBE INFORMATION
The City Council meeting is streamed live via Youtube, you can access the live City Council meeting by clicking on this link to access the broadcast on Youtube:
https://www.youtube.com/@CityofFV

CLOSED SESSION
CALL TO ORDER 3:30 p.m.

PUBLIC COMMENTS (Closed Session matters only)
Persons wishing to speak on a Closed Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: 16 acres at Mile Square Regional Park
Agency negotiator: City Manager, Deputy City Manager-Community Services Director, Deputy City Manager-Community Development Director, Finance Director, Attorney for the City Negotiating parties: City of Fountain Valley and County of Orange Under negotiation: Price and Terms of Payment

2. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: Code Enforcement

3. THREAT TO PUBLIC SERVICES OR FACILITIES
Consultation with: Fire Chief

4. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Section 54956.9
Name of case: Hill v. City of Fountain Valley (OCSC No. 30-2024-01386471)

STUDY SESSION
CALL TO ORDER 5:15 p.m.

PUBLIC COMMENTS (Study Session matters only)
Persons wishing to speak on a Study Session matter are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period.

1. Discussion Regarding Orange County Power Authority – Presentation by Scott Smith, Public Works Director

OPEN SESSION
CALL TO ORDER 6:00 p.m.

INVOCATION John Borack
SALUTE TO THE FLAG Council Member Kim Constantine

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members: Bui, Constantine, Grandis, Vice Mayor / Vice Chair Harper, Mayor/Chair Cunneen

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS

CITY MANAGER / MAYOR UPDATE

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION

PRESENTATIONS
• Recognition of the Fountain Valley High School Leo Club for their recognition as Club of the Year
• Recap of the Annual ICSC Conference – Presentation by Ron Vargas, Assistant Planner and Victor Viramontes, Management Analyst
• New Citywide Recruitment Video – Introduction by Tamaryn Roberts, Human Resources Manager

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
The Unscheduled Matters Public Comments portion will last 15 Minutes at the beginning of the meeting. Any requests to speak on unscheduled matters after the initial 15 minutes, will be heard at the end of the meeting, unless the Mayor approves an extension of this time. If an individual speaks during the First unscheduled matters time period, they do not get to speak at the end of the meeting as well. Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

PUBLIC COMMENTS (Scheduled Matters Only)
Persons wishing to speak on Agenda item(s) are requested to identify themselves by completing a blue speaker card indicating the item they want to address and to give the card to the City Clerk prior to the public comment period. Each person will be given up to 3 minutes to speak on the entire Consent Calendar, 3 minutes to speak on each item pulled from the consent calendar, and 3 minutes to speak on any agendized item(s) not appearing on the Consent Calendar.

CONSENT CALENDAR
Consent Calendar Items 1 – 8 will be approved simultaneously with one motion unless separate action/or discussion is requested.

1. Receive and File the Draft Minutes of the June 2, 2026 Regular City Council Meeting Page 7

2. Approve the City of Fountain Valley Register of Demands for the period of 5/21/2026 to 6/3/2026 Page 16
Staff recommends Alternative No. 1 to approve the attached Register of Demands representing payments made by the City of Fountain Valley between 5/21/2026 and 6/3/2026 for a total of $1,340,070.39.

3. Approve a Resolution to Accept the Office of Traffic Safety Selective Traffic Enforcement Program Grant Money, Amend the FY 2026-27 Budget COPS/SLES Fund in the Amount of $70,500 and Appropriate an Expenditure to Incorporate the Changes into the FY 2026-27

Staff is requesting City Council approve Alternative No. 1: Approve a resolution to accept the Office of Traffic Safety Selective Traffic Enforcement Program grant money, amend the FY 2026-27 budget COPS/SLES fund in the amount of $70,500 and appropriate an expenditure to incorporate the changes into the FY 2026-27 budget.

4. Approve the Water Loss Control Participation Agreement with the Municipal Water District of Orange County, and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,2246 Page 53 Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Participation Agreement with the Municipal Water District of Orange County, and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,246 and Addendum B – Water Loss Control Technical Assistance Tasks, January 1, 2026 – June 30, 2027, in the amount of $36,395.

5. Second Reading and Adoption of an Ordinance Repealing and Amending Municipal Code Provisions to Ensure Compliance with the California Fair Chance Act Page 85 Staff recommends that the City Council adopt the attached Ordinance.

6. Resolution Recognizing and Celebrating the United States of America 250th Anniversary

Staff is requesting City Council approval of Alternative No. 1: Adopt a Resolution Recognizing and Celebrating the United States of America’s 250th Anniversary.

7. Approve the agreement with Athens Administrators for continued workers’ compensation claims administration services. Page 97
Staff recommends that City Council approve Alternative No. 1, approve the agreement with Athens Administrators for continued workers’ compensation claims administration services.

8. Approve Amendment No. 1 with Inland Fleet Solutions, Inc. (Contract #1610) for a $10,000 increase to Fire Apparatus Service Page 113
Staff is requesting City Council approval of Contract Amendment No. 1 to increase the total contract by $10,000 and modify the payment terms from a per-year limit to a total contract sum limit.

PUBLIC HEARINGS
Each person will have up to 3 minutes to speak on each Public Hearing.

9. Code Amendment 26-03 Amending Fountain Valley Municipal Code Section 21.18.130 Establishing Objective Design Standards for Multifamily and Mixed-Use Residential Projects – Presentation by Omar Dadabhoy, Community Development Director / Deputy City Manager

Introduce the attached Ordinance approving Code Amendment 26-03 amending Fountain Valley Municipal Code Section 21.18.130 to establish citywide Objective Design Standards for multifamily residential and residential mixed-use development projects.

10. Public Hearing and Introduction of: Code Amendment 24-01 (CA 24-01), Precise Plan 581 (PP 581), and Mitigated Negative Declaration and Mitigation Monitoring Reporting Plan for the MemorialCare Orange Coast Medical Center Parking Structure – Presentation by Matt Jenkins, Senior Planner Page 203
Staff is requesting City Council approval of Alternative No. 1 to adopt a resolution approving a Mitigated Negative Declaration (MND) and Mitigation Monitoring and Reporting Program (MMRP) in accordance with the California Environmental Quality Act (CEQA) and introduce an Ordinance approving Code Amendment (CA) 24-01 to amend the Orange Coast Medical Center Specific Plan to allow for the construction and development of a freestanding parking structure in Planning Area 3 of the Orange Coast Medical Center Specific Plan.

ADMINISTRATIVE ITEMS

11. Award a contract to AAA Oil, Inc., dba California Fuels and Lubricants, Inc., for unleaded and renewable diesel bulk fuel services – Presentation by Cassandra Burkhart, Management Aide

Staff is requesting that the City Council approve Alternative No. 1, which is to award a contract to AAA Oil, Inc., dba California Fuels and Lubricants, Inc., for unleaded and renewable diesel bulk fuel services.

12. Rehabilitation and Resurfacing of Euclid Street (from Slater Avenue to Talbert Avenue) and Talbert Avenue (from Brookhurst Street to Bushard Street), Project No. 24011 – Presentation by Ryan Damon, Engineering Associate Page 629
Staff recommends that the City Council:

1. Accept the bids and award a construction contract to Calmex Engineering, Inc. for the Rehabilitation and Resurfacing of Euclid Street (from Slater Avenue to Talbert Avenue) and Talbert Avenue (from Brookhurst Street to Bushard Street), Project No. 24011 in the amount not-to-exceed $2,643,731.50;

2. Accept the proposal and authorize Staff to issue a Purchase Order to Willdan Engineering On-Call contract for Construction Management, Inspection and Materials Testing Services in the amount not-to-exceed $141,196.

13. Approve a Resolution of the City Council of the City of Fountain Valley Approving and Authorizing Permanent Implementation of the Police Officer and Dispatcher Hiring Incentive Program. – Presentation by Jarrod Frahm, Police Captain Page 682 Staff requests the City Council approve Alternative No. 1

14. Adopt a Resolution to effect certain changes to the City’s Master Salary Schedule in conformance with Title 2 of the California Code of Regulations section 570.5 and the California Public Employees’ Retirement System – Presentation by Tania Knauerhaze, Human Resources Director Page 691
Staff recommends that the City Council approve the proposed Alternative No. 1 by adopting the attached Resolution, which amends the City’s Salary Schedule to reflect these changes.

15. Amendment #4 to Extend Contract #22-11 from July 1, 2026, through July 1, 2027, with City Net for Homeless Outreach Services in the Amount of $366,874.00 – Presentation by Robert Cortes, Police Lieutenant Page 704
Staff is requesting City Council approve Alternative No. 1: Approve Amendment #4 to extend Contract #22-11 from July 1, 2026 through July 1, 2027, with City Net for homeless outreach services in the amount of $ 366,874.00.

16. Approval of Service Contracts for Police Towing Services for a Period of Five Years Beginning July 1, 2026, to June 30, 2031, with an Option of Two Additional One-Year Extensions. – Presentation by – Jennifer Pratt, Police Sergeant Page 741 Staff recommends Alternative No. 1: Approve the recommendation and award police towing service contracts to G&W Towing and Southside Towing for a period of five years beginning July 1, 2026, and expiring June 30, 2031, with an option of two additional one-year extensions.

17. Approve Amendment #2 to Contract No. 21-35 for the Tennis and Pickleball Concession Agreement at the Fountain Valley Sports Park – Presentation by Rob Frizzelle, Community Services Director / Deputy City Manager Page 806
Approve the second amendment to the concession agreement with Agape Tennis Academy, LLC for Tennis and Pickleball services at the Fountain Valley Sports Park.

18. Approve Resolutions Relating to the Calling of the November 3, 2026, General Municipal Election – Presentation by Rick Miller, City Clerk Page 819

19. Approval of the Agreement for Consultant Services between the City of Fountain Valley and Harper & Burns, LLP to Provide City Attorney Services to the City – Presentation by Rick Miller, City Clerk Page 829
It is recommended that the City Council approve the Alternative No. 1: Approval of the Agreement for Consultant Services between the City of Fountain Valley and Harper & Burns, LLP to Provide City Attorney Services to the City for an initial term of three (3) years with two (2) additional one (1) year extensions if agreed to by both parties.

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Persons wishing to speak on an unscheduled matter are requested to identify themselves by completing a blue speaker and to give the card to the City Clerk. Each person will have up to 3 minutes to speak. The City Clerk will call upon those that wish to speak.

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL

COMMENTS

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR

AGENCY/HOUSING AUTHORITY
The next Regular Meeting of the Fountain Valley City Council is July 14, 2026 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.

City of Fountain Valley
Memorandum
TO: Honorable Mayor and City Council
FROM: Scott Smith, Public Works Director
DATE: June 16, 2026
SUBJECT: Study Session: Update on Orange County Power Authority (OCPA) ______________________________________________________________________________ EXECUTIVE SUMMARY:

This study session is intended to provide an update on Orange County Power Authority (OCPA). The presentation will provide information on the measures being taken to ensure a smooth and seamless transition of the City of Fountain Valley’s electric generation services from Southern California Edison (SCE) to OCPA. The presentation will also provide insight into and address questions regarding the adjustment of the City’s customer enrollment launch date from October 2026 to April 2027 as part of its transition to OCPA service. The study session will present the City Council with an opportunity to ask questions regarding the launch date adjustment and OCPA implementation activities.

DISCUSSION:

On January 30, 2024, City staff and the OCPA team provided a presentation to City Council.

In an effort to better understand and potentially offer energy choice options to the Fountain Valley community, City Council directed staff to further explore membership with OCPA and sign a nondisclosure agreement with SCE to enable OCPA to obtain the City’s customer load data for a feasibility study.

On July 30, 2024, the results of an independent feasibility study by Pacific Energy Advisors (PEA) were presented to the OCPA Board of Directors by OCPA staff. The study evaluated the financial implications of the City of Fountain Valley joining OCPA. At that meeting, the OCPA Board directed OCPA staff to formally invite the City to join OCPA and to collaborate with the City on all aspects of its membership.

On September 3, 2024, OCPA shared the results of the feasibility study, and City Council directed staff to proceed with the next steps to become an OCPA member agency.

On October 1, 2024, the City Council introduced for first reading an ordinance implementing

the OCPA Community Choice Aggregation (CCA) program within its city boundaries. The City Council also adopted a resolution directing the City Manager to execute the OCPA Joint Powers Agreement and authorized the City Manager to take all other actions necessary to effectuate the City’s membership in OCPA. The ordinance was approved during the first reading without amendment.

On November 5, 2024, the City Council approved the second reading and adopted a resolution expressing its intent to join OCPA and approved an ordinance implementing the OCPA CCA program within its city boundaries.

On November 25, 2024, the OCPA Board of Directors adopted a resolution approving Amendment No. 2 to the OCPA Implementation Plan and Statement of Intent, allowing OCPA to provide electric generation services within the City of Fountain Valley.

On December 3, 2024, OCPA submitted the amended Implementation Plan to the California Public Utilities Commission (CPUC) for certification of Fountain Valley’s membership, with customer enrollment originally anticipated to begin in October 2026.

On January 9, 2025, the CPUC Energy Division issued its certification letter for the amended Implementation Plan.

On January 30, 2025, OCPA staff notified the OCPA Board of Directors that the CPUC had certified the amended Implementation Plan, officially expanding OCPA to include eligible residential, commercial, industrial, agricultural, and municipal accounts within the City of Fountain Valley.

Following certification of the amended Implementation Plan, OCPA and City staff continued implementation planning efforts and coordination activities necessary to support customer enrollment. In coordination with the City of Fountain Valley, SCE, and the CPUC, OCPA has adjusted the City’s customer enrollment launch date from October 2026 to April 2027. The revised implementation schedule is intended to support continued coordination among all parties and ensure a seamless transition of electric generation services from SCE to OCPA.

On March 5, 2026, OCPA submitted an update to the Implementation Plan and Statement of Intent - Amendment No. 2 to the CPUC and the service lists required by Resolution E-4907 and successor proceedings to reflect the revised program start date from October 1, 2026, to April 1, 2027.

On March 30, 2026, the CPUC Energy Division confirmed receipt of OCPA's notice and acknowledged that the program start date for service in Fountain Valley had been updated from October 1, 2026, to April 1, 2027. The CPUC response also noted that any future modification to the Implementation Plan, including the start date, anticipated load, or phase-in schedule, must be submitted to the Energy Division in the same manner as the original plan, and that OCPA remains subject to year-ahead and month-ahead Resource Adequacy requirements based on the 2025 load forecast submission.

On June 8, 2026, the OCPA Board of Directors considered a staff recommendation to conduct a public hearing and adopt a resolution approving the Updated Amendment No. 2

to the CCA Implementation Plan and Statement of Intent. The updated amendment reflects the revised Fountain Valley program start date of April 1, 2027, and would direct the OCPA Chief Executive Officer to file the amendment with the CPUC and take any actions required by the CPUC or SCE to effectuate the modified start date, including any additional Implementation Plan modifications.

For operational and fiscal context, the implementation plan staff report estimates that Fountain Valley enrollment will add approximately 18,600 customer accounts and approximately 225,000 MWh of annual electricity consumption, representing an approximate 10% increase to OCPA retail sales. The updated fiscal analysis projects approximately $6.0 million in incremental revenue and a positive operating margin of approximately $0.6 million in FY 2026/27, with projected positive operating margins averaging approximately $2.2 million annually for FY 2027/28 through FY 2029/30.

The purpose of this study session is to provide an update on OCPA, as well as information regarding the launch date adjustment and the City's transition to OCPA service. The presentation will outline the revised implementation schedule, key milestones leading to customer enrollment, customer notification requirements, and the actions being taken by OCPA and the City to ensure a smooth and seamless transition of electric generation services from SCE to OCPA.

The study session presentation includes:
• Overview of the adjustment of the customer enrollment launch date from October 2026 to April 2027 and the rationale for the revised schedule. • Updated implementation timeline and key milestones leading to customer enrollment.
• Coordination between OCPA and the City on implementation activities to ensure a smooth transition from SCE generation service to OCPA generation service. • Customer communication, outreach, and notification requirements before enrollment.
• OCPA Budget, financial planning, reserves, five-year outlook, and financial goals.

This study session is informational only, and no formal action is requested of the City Council.

ATTACHMENTS
Attachment A: FY26-27 Operating Budget Packet
Attachment B: FY26-27 Operating Budget Book
Orange County Power Authority | Staff Report | Page 1 of 10

ORANGE COUNTY POWER AUTHORITY
Staff Report – Item 8.2
To: Orange County Power Authority Board of Directors
From: Tiffany Law, Chief Financial Officer
Approved by: Joe Mosca, Chief Executive Officer
Subject: APPROVE OCPA’S FISCAL YEAR 2026/27 OPERATING BUDGET Date: June 8, 2026

STRATEGIC GOALS
☐ Enrich & Grow the OCPA Community
☒ Prioritize Fiscal Sustainability & Affordability: Approve a financially balanced operating budget that supports customer affordability, reserve rebuilding, disciplined cost management, and long-term financial sustainability. ☐ Design & Deploy Community-Aligned Customer Programs
☐ Energize Our Community with Renewable Energy
☐ Raise Awareness of Community Energy & Advocate for Our Customers ☐ Not Applicable

RECOMMENDED ACTION(S)

1. Approve the recommended FY2026/27 Operating Budget, which projects a positive net position of approximately $14.1 million, supports 2026 rate stability, rebuilds operating reserves, and funds essential power supply, operating, customer program, and non-operating expenses as presented in Attachment 1.

The recommended budget supports the Board’s reserve policy target and OCPA’s long-term financial sustainability goals.

2. Approve a 3.7% Cost-of-Living Adjustment (COLA) for full-time employees, effective January 1, 2027, based on the April 2026 Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, and authorize corresponding updates to OCPA salary ranges. COLA eligibility will be prorated based on hire date, consistent with OCPA’s compensation practices.

3. Approve the Group Health Plan Enhancement to adjust OCPA’s employer contribution for baseline employer-covered medical and vision plan options from Orange County Power Authority | Staff Report | Page 2 of 10 95% to 100%, effective July 2026, for employees and dependents enrolled in those plans, with employees continuing to pay any incremental cost for highercost plan elections.

BACKGROUND
The Orange County Power Authority (OCPA) develops its annual operating budget using a zero-based budgeting approach, requiring expenses to be reviewed and justified based on current operational needs, projected market conditions, compliance obligations, customer program priorities, and long-term financial sustainability. This approach supports disciplined cost management and helps ensure that budgeted expenditures are tied to defined operational, customer, compliance, and financial objectives.

On February 15, 2023, the OCPA Board approved a Budget Policy that requires the agency to approve a balanced budget and maintain disciplined financial oversight. The policy supports prudent resource allocation, transparency, and long-term financial health. The Board-approved Rate Development Policy, adopted on April 19, 2023, provides a framework for setting customer rates to support full cost recovery, customer competitiveness, reserve contributions, and long-term financial sustainability.

The Board also approved a Reserve Policy establishing an operating reserve target of 30% to 50% of total operating expenses. The reserve target is intended to help OCPA manage market volatility, customer payment risk, regulatory uncertainty, power procurement obligations, and liquidity needs. In addition, the Rate Stabilization Fund Policy supports the ability to manage future revenue shortfalls and avoid sudden rate changes during periods of unusual market or utility rate volatility.

The FY2026/27 Budget aligns with OCPA’s updated Strategic Plan and focuses on fiscal sustainability, affordability, customer programs, clean energy objectives, community benefit, regulatory advocacy, and long-term financial resilience. The budget also supports OCPA’s goal of positioning the agency to pursue an investment-grade credit rating in 2028 by rebuilding reserves, maintaining liquidity, and strengthening financial planning discipline.

Staff presented the budget framework to the Board on May 7, 2026, briefed the draft budget with Board members in May, incorporated Board feedback, and prepared the recommended FY2026/27 Operating Budget for Board consideration and approval on June 8, 2026.

Orange County Power Authority | Staff Report | Page 3 of 10

DISCUSSION / ANALYSIS
FY2025/26 Operating Budget Update
The FY2025/26 reforecast projects a positive net position of approximately $405,000, compared to the approved Mid-Year Budget projection of an approximately $4 million deficit. This represents an improvement of approximately $4.4 million compared to the Mid-Year Budget projection.

The improvement is primarily driven by lower projected power supply costs resulting from updated 2026 Renewable Portfolio Standard (RPS) Market Price Benchmark (MPB) assumptions, risk management actions, and initial renewable energy prepayment savings beginning in June 2026. These improvements reflect OCPA’s continued efforts to manage market volatility, optimize portfolio value, and improve financial performance while maintaining customer affordability.

FY2026/27 Operating Budget Overview
The FY2026/27 Recommended Operating Budget projects net electricity revenue of approximately $259.2 million, investment income of approximately $1.2 million, power supply costs of approximately $228.2 million, non-power supply operating expenses of approximately $18 million, debt service of approximately $150,000, and a positive net position of approximately $14.1 million.

Operating reserves are projected to increase to approximately $59.5 million, or 24% of total operating expenses, by June 30, 2027. OCPA is also projected to reach approximately $76 million in operating reserves, or 30% of total operating expenses, by December 31, 2027, meeting the Board’s minimum reserve target.

The table below summarizes the FY2026/27 Recommended Operating Budget compared to the FY2025/26 reforecast. As shown, the budget projects a positive net position, lower power supply costs, and continued reserve rebuilding.

Orange County Power Authority | Staff Report | Page 4 of 10 Overall, the FY2026/27 Recommended Operating Budget strengthens OCPA’s financial position, continues reserve rebuilding, supports customer affordability, and maintains the staffing, programs, and professional support needed to operate responsibly in a complex energy market.

FY2026/27 Operating Budget Analysis
This section highlights the key drivers of year-over-year (YOY) changes between the FY2025/26 reforecast and the FY2026/27 Recommended Operating Budget. The FY2026/27 Operating Budget Book (Attachment 2) provides the detailed budget schedules and underlying assumptions.

Net Electricity Revenue After Revenue Deferral (-$16.3 million) Net electricity revenue after revenue deferral is projected to decrease by approximately $16.3 million, from $275.5 million in the FY2025/26 reforecast to $259.2 million in the FY2026/27 Recommended Budget.

The decrease is primarily due to the non-recurring $30 million revenue deferral/rate stabilization adjustment included in the FY2025/26 reforecast. This is partially offset by a $13.7 million increase in retail electricity revenue, reflecting projected retail load, customer participation, product selections, and Fountain Valley service beginning in April 2027 consistent with its planned launch.

For July through December 2026, revenue assumptions are based on Board-approved rates held flat at October 2025 levels. For January 2027 and beyond, revenue Orange County Power Authority | Staff Report | Page 5 of 10 assumptions are developed consistent with the Board-approved Rate Development Policy and will be informed by the cost-of-service study. The 2027 rate analysis and recommendations will return to the Board after completion of the cost-of-service study, bill impact analysis, product pathway evaluation, procurement and portfolio review, and Board policy discussions.

Investment Income (-$392k)
Investment income is projected to decrease by approximately $392,000, from $1.6 million in the FY2025/26 reforecast to $1.2 million in the FY2026/27 Recommended Budget.

The decrease reflects updated interest earnings assumptions and expected investment balances. OCPA will continue to manage cash and investments consistent with its Investment Policy, balancing safety, liquidity, and yield.

Power Supply Costs (-$34.7 million)
Power supply costs are projected to decrease by approximately $34.7 million, from $262.8 million in the FY2025/26 reforecast to $228.2 million in the FY2026/27 Recommended Budget.

Power supply remains OCPA’s largest operating cost category and includes energy, renewable resources, carbon-free attributes, Resource Adequacy (RA), and California Independent System Operator (CAISO)-related costs required to serve customers reliably and meet state requirements.

The YOY decrease is primarily driven by updated 2026 and 2027 RPS MPB assumptions for renewable energy, as well as cost-management actions including portfolio planning, forward procurement, risk management, and renewable energy prepayment savings.

While market conditions have improved from recent peak levels, system energy, renewable energy, and RA markets remain subject to volatility. Accordingly, the budget reflects updated market assumptions while maintaining a risk-aware procurement approach to support budget predictability, state compliance, customer affordability, and long-term financial sustainability.

System energy, renewable energy, carbon-free attributes, and CAISO-related costs are estimated at approximately $181 million, or 79% of total power supply costs. RA, a statemandated reliability requirement, is estimated at approximately $47 million, or 21% of total power supply costs.

OCPA’s first renewable energy prepayment transaction, totaling approximately $929.4 million, is expected to reduce energy costs for the covered or designated renewable energy supply by approximately 12.45% and generate approximately $25.3 million in energy procurement cost savings over the initial five-year term, beginning June 2026.

Orange County Power Authority | Staff Report | Page 6 of 10 These savings support rate stability, customer affordability, and long-term financial sustainability.

Non-Power Supply Operating Expenses (+$4.4 million)
Non-power supply operating expenses are projected to increase by approximately $4.4 million, from $13.5 million in the FY2025/26 reforecast to $18 million in the FY2026/27 Recommended Budget. Despite the increase, non-power supply operating expenses remain limited at approximately 6.9% of revenue and support essential services required to operate OCPA as a public power provider.

The YOY increase primarily reflects the full-year impact of approved and existing staffing, budgeted COLA and merit assumptions, employee benefit changes, required customer communications and Fountain Valley launch preparation, customer programs and targeted bill relief, professional contract services, regulatory and legislative advocacy support, and core public agency administrative costs.

These expenditures support essential functions including finance, data, regulatory compliance, customer service, power resources, customer programs, risk management, information technology, and public agency oversight.

Data Manager and SCE Service Fees (+$367k)
Data Management and SCE Service Fees total approximately $2.9 million, or 1.1% of revenue. These services support the customer data, billing, and service infrastructure required to operate a CCA serving approximately 188,000 customer accounts.

The category includes Calpine data management services such as billing data validation, bill coordination with SCE, call center operations, customer enrollment database management, move-in/move-out services, and data reporting. It also includes SCE meter reading, data processing, and customer billing-related services required under the utility billing and service framework.

Based on peer CCA budget comparisons, OCPA’s projected cost is within the peer range and equates to approximately $1.27 per customer per month.

Staffing Costs and Workforce Planning (+$1.9 million)
Staffing costs total approximately $7.2 million, or 2.8% of revenue. The FY2026/27 budget supports 29 full-time equivalent (FTE) positions and includes 2 intern positions, with no proposed increase in authorized full-time positions.

The YOY change reflects approved position recruitment, the full-year impact of existing staff, budgeted merit adjustments, a 3.7% COLA effective January 1, 2027, and employee Orange County Power Authority | Staff Report | Page 7 of 10 benefit changes. Staffing projections will be reviewed and refined during the FY2026/27 Mid-Year Budget Update based on actual hiring, vacancies, benefit elections, and expenditures.

OCPA will continue to manage headcount carefully. Staff will not automatically fill every approved vacancy and will effectively hold recruitment for positions that are not immediately essential, moving forward only with vacancies necessary to maintain operations and support Board-approved priorities.

The proposed Group Health Plan Enhancement would adjust OCPA’s employer contribution for baseline employer-covered medical and vision plan options from 95% to 100%, effective July 2026, for employees and dependents enrolled in those plans. The estimated incremental FY2026/27 budget impact is approximately $31,000, or about

0.01% of revenue and 0.4% of total staffing costs. The proposal is structured as a targeted market-alignment measure, does not create a new benefit program, and does not increase authorized FTEs. The proposal also maintains a cost-control structure by applying to baseline employer-covered plan options, with employees continuing to pay any incremental cost for higher-cost plan elections.

The proposed adjustment is also supported by OCPA’s Mercer CCA compensation survey. Mercer found OCPA’s overall group health benefits were below the CCA median, with OCPA’s dental benefit ranked 7th out of 7 CCAs before the Board-approved dental enhancement in July 2024. The proposed medical and vision contribution adjustment is intended to help close the remaining employer-contribution gap for OCPA’s baseline employer-covered plan options and move OCPA closer to prevailing peer CCA practices.

Because OCPA competes for specialized energy, regulatory, rates, finance, data, and compliance talent, staff evaluated the proposal in the context of CCA and energy-sector labor market practices as well as OCPA’s overall compensation structure.

Benefit comparisons should also be considered within the context of total compensation.

OCPA does not offer certain benefits commonly available in other public-sector settings, such as CalPERS pension participation, retiree medical benefits, bargaining agreements, or other employer-funded compensation features.

Professional Contract Services (+$344k)
Professional contract services total approximately $1.8 million, or 0.7% of revenue. These services provide specialized support for energy procurement and portfolio management, scheduling coordination, CAISO settlements, accounting, audit, banking, rate strategy, cost-of-service work, information technology, cybersecurity, human resources, and other technical or periodic functions.

Orange County Power Authority | Staff Report | Page 8 of 10 These services allow OCPA to access specialized and time-sensitive expertise without adding permanent staff for every technical or project-specific function.

Legal, Compliance, and Legislative Advocacy Support (+$127k) Legal, compliance, and legislative advocacy support totals approximately $791,000, or

0.3% of revenue. These services protect OCPA’s operations, support governance, ensure compliance, and represent customer interests in regulatory and legislative matters.

In FY2026/27, OCPA plans to add Sacramento-based legislative advocacy support to strengthen engagement with the California Legislature and state agencies on issues that directly affect customer affordability, rate competitiveness, local energy choice, the Power Charge Indifference Adjustment (PCIA), RA, procurement mandates, and clean energy policy. These issues can materially affect customer costs and often require coordinated regulatory and legislative advocacy beyond local budget actions.

Communications and Outreach (+$195k)
Communications and outreach costs total approximately $1.6 million, or 0.6% of revenue.

These costs support required customer notifications, rate transparency, multilingual access, program education, community engagement, and Fountain Valley launch preparation.

The YOY change reflects the need to maintain required customer communications and public education while supporting targeted outreach for customer programs and new member launch activities.

General & Administrative Expenses (+$256k)
General and Administrative expenses total approximately $1.5 million, or 0.6% of revenue. These costs support core public agency operations, financial controls, risk management, technology systems, office operations, staff training, industry engagement, and membership dues.

California Community Choice Association (CalCCA) and California Community Choice Financing Authority (CCCFA) membership dues support regulatory advocacy, legislative engagement, and financing structures that help OCPA manage long-term power supply costs, strengthen policy representation, and protect customer interests. CCCFA also provides access to prepayment financing structures designed to reduce long-term power supply costs for participating CCAs.

Orange County Power Authority | Staff Report | Page 9 of 10 Customer Programs and Externally Funded Programs (+$1.2 million) Customer programs total approximately $2.2 million, or 0.8% of revenue. The budget includes $1 million for the Green Discount Program, as well as energy efficiency programs for renters, residential customers, multifamily housing, and small businesses, along with the OC Bright Futures Grant, OCPA Marketplace, Incentive Finder, and Build Smart Trailer.

The Green Discount Program is supported by available net prepayment savings and is designed to provide an approximate 1% discount below SCE’s equivalent residential generation rates for eligible non-NEM residential customers who select the option, with California Alternate Rates for Energy (CARE), Family Electrical Rate Assistance (FERA), and other income-qualified households prioritized as administratively feasible.

OCPA also participates in several state-, federal-, and utility-funded programs that support under-resourced communities and provide customer energy benefits, including the Equitable Building Decarbonization Direct Install (EBD-DI) Program, OCPA Clean Energy Access (CEA) Program, and Southern California Regional Energy Network (SoCal REN) Program. The FY2026/27 budget includes approximately $485,000 in program income with offsetting eligible costs, resulting in no net budget impact to OCPA.

Debt Service (-$161k)
Debt service is projected to decrease by approximately $161,000, from $311,000 in the FY2025/26 reforecast to $150,000 in the FY2026/27 Recommended Budget.

Debt service includes interest costs on OCPA’s loan from the City of Irvine, which is scheduled to be fully paid off by January 2027, and imputed interest related to OCPA’s office lease under Governmental Accounting Standards Board (GASB) Statement No. 87.

At approximately 0.1% of revenue, OCPA’s projected debt service cost remains at the low end of the peer CCA range and reflects a modest and declining debt service obligation.

Net Position and Operating Reserves
The FY2026/27 Recommended Budget projects a positive net position of approximately $14.1 million, an improvement of approximately $13.7 million compared to the FY2025/26 reforecast.

OCPA maintains operating reserves to absorb key financial and operating risks, including utility generation rate and PCIA volatility, power market volatility, RA cost pressure, customer payment risk, regulatory and legislative uncertainty, and changes in customer load or member participation.

Orange County Power Authority | Staff Report | Page 10 of 10 OCPA is projected to reach approximately $76 million in reserves, or 30% of total operating expenses, by December 31, 2027, and approximately $125 million in reserves, or approximately 49% of total operating expenses, by December 31, 2029. This reserve rebuilding path supports long-term financial sustainability, customer affordability, credit rating readiness, and cost-effective power procurement.

This reserve rebuilding strategy is an important component of OCPA’s long-term financial plan because reserves help protect customers from sudden cost shocks, maintain liquidity for power procurement, and support future credit rating readiness.

FISCAL IMPACT
The recommended FY2026/27 Operating Budget projects total net electricity revenue after revenue deferral of approximately $259.2 million, investment income of approximately $1.2 million, total power supply costs of approximately $228.2 million, total non-power supply operating expenses of approximately $18 million, debt service of approximately $150,000, and a positive net position of approximately $14.1 million.

Operating reserves are projected to increase to approximately $59.5 million, or 24% of total operating expenses, by June 30, 2027, and to approximately $76 million, or 30% of total operating expenses, by December 31, 2027, meeting the Board’s minimum reserve target.

Approval of the recommended actions will authorize the FY2026/27 Operating Budget, the 3.7% COLA effective January 1, 2027, and the Group Health Plan Enhancement effective July 2026. The Group Health Plan Enhancement would adjust OCPA’s employer contribution for baseline employer-covered medical and vision plan options from 95% to 100%, with employees continuing to pay any incremental cost for highercost plan elections. The estimated incremental FY2026/27 budget impact is approximately $31,000, representing approximately 0.01% of revenue and 0.4% of total staffing costs, and is included in the recommended budget.

The recommended budget is financially balanced, projects a positive net position, supports reserve rebuilding, maintains 2026 rate stability, and funds the operational capacity needed to serve customers reliably, responsibly, and cost-effectively.

ATTACHMENT(S)

1. FY 2026/27 Recommended Operating Budget

2. FY 2026/27 Operating Budget Book

3. Glossary
Proposed FY 2026/27 Operating Budget
($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2025/26 % of Rev
Reforecast
FY2025/26 % of Rev
Proposed
Budget
FY2026/27 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 242,389 241,675 254,504
Revenue - Smart Choice Premium 7,525 7,306 6,233
Revenue - 100% Renewable Premium 262 259 2,412
Less: Uncollectible Accounts (3,753) (3,739) (3,947)
Revenue deferral 30,000 30,000 0 (30,000) (100.0%)
Net Revenue - Electricity 276,425 99.4% 275,500 99.4% 259,201 99.5% (16,299) (5.9%) Investment and Miscellaneous Income 1,535 0.6% 1,592 0.6% 1,200 0.5% (392) (24.6%) Total Net Revenue and Other Sources 277,960 100.0% 277,093 100.0% 260,401 100.0% (16,691) (6.0%)

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 267,287 96.2% 262,837 94.9% 228,169 87.6% (34,667) (13.2%) Data Manager 2,217 0.8% 2,220 0.8% 2,607 1.0% 386 17.4% Utilities Service Fees 399 0.1% 270 0.1% 250 0.1% (20) (7.3%) Staffing Costs 5,198 1.9% 5,295 1.9% 7,218 2.8% 1,923 36.3% Contract Services 1,808 0.7% 1,446 0.5% 1,791 0.7% 344 23.8% Legal Services 706 0.3% 663 0.2% 791 0.3% 127 19.2%
Communications and Outreach 1,546 0.6% 1,397 0.5% 1,592 0.6% 195 13.9% Other G&A 1,316 0.5% 1,272 0.5% 1,528 0.6% 256 20.1%
Energy Programs 1,199 0.4% 976 0.4% 2,204 0.8% 1,228 125.9% 281,675 101.3% 276,376 99.7% 246,149 94.5% (30,227) (10.9%)

NON-OPERATING EXPENDITURES
Interest costs - nonoperating 317 0.1% 311 0.1% 150 0.1% (161) (51.8%) Total Expenditures and Other Uses 281,992 101.5% 276,688 99.9% 246,299 94.6% (30,388) (11.0%) Net Income (Surplus/Deficit) (4,032) (1.5%) 405 0.1% 14,102 5.4% 13,697 3381.4% 13,701 5.6%
Fiscal Year
Operating
Budget
2026-2027
Table of Contents
Fiscal Year Operating Budget 2026-2027
Pg. 02 CEO Message
Pg. 05 Operating Budget Roadmap
Pg. 06 Operating Budget Background and Highlights
Pg. 08 FY2026/27 Recommended OCPA Operating Budget
Pg. 10 Revenue and Power Supply Cost Assumptions
Pg. 14 Operating and Non-Operating Expense Highlights
Pg. 26 5-Year OCPA Financial Proforma FY2026/27 – FY2031/32 Pg. 29 About OCPA
Pg. 30 2026 OCPA Board
CEO Message
2 As we enter Fiscal Year 2026/27, Orange County Power Authority (OCPA) remains grounded in the principles that inspired our creation: local control, community partnership, affordability, innovation, transparency, and long-term sustainability. This budget reflects our commitment to serving Orange County communities with accountability, responsible stewardship, and purpose.

California’s energy landscape continues to evolve rapidly. Increasing regulatory complexity, climate-related reliability needs, volatile power markets, and shifting state and federal policies continue to shape the future of energy procurement and delivery. These pressures affect community choice aggregators (CCAs) and other load-serving entities across California, making disciplined financial planning, active risk management, and customer-focused decisionmaking more important than ever.

As a locally governed, not-for-profit public agency, OCPA prioritizes customer value rather than shareholder profit. Our mission remains clear: to provide reliable, cleaner energy at competitive and stable rates while reinvesting in the communities we serve and advancing solutions that improve affordability, resilience, and sustainability.

The FY2026/27 Budget aligns with OCPA’s updated Strategic Plan and focuses on five core priorities:
o Strengthening community partnerships and engagement;
o Maintaining fiscal sustainability and affordability;
o Designing customer programs that reflect local needs; o Advancing renewable energy and clean-energy goals; and o Advocating for customers in state and regional energy policy discussions.

A major accomplishment this past year was the completion of the Community Needs Assessment for OCPA’s Community Power Plan (CPP), developed through extensive engagement with residents, businesses, community organizations, and local leaders. This work provides a roadmap for future customer programs and local investments centered on equity, resilience, affordability, and measurable community benefit. The FY2026/27 Budget begins the next phase of this work by moving from assessment to implementation, with a focus on practical benefits for customers and member communities. 3 OCPA also successfully executed its first green prepayment bond transaction, marking a major milestone in the agency’s strategy to manage power supply costs and support long-term customer affordability. Totaling approximately $929.4 million, this innovative financing strategy is expected to generate energy cost savings through a 12.45% discount, producing approximately $25.3 million in savings over the initial five-year period. This achievement advances OCPA’s innovative financing strategy and provides a meaningful tool to help offset power cost pressure and support customer value.

Despite ongoing market and regulatory challenges, OCPA maintained financial stability throughout the year with positive reserves, stable operations, and no immediate liquidity concerns. At the same time, the agency recognizes that financial flexibility remains tighter than our long-term target and that reserve rebuilding must continue in a disciplined and phased manner.

OCPA is also advancing a comprehensive cost-of-service study that will provide the analytical foundation for future rate design, product strategy, cost allocation, customer competitiveness, and long-term financial sustainability beginning in 2027. This effort reflects OCPA’s commitment to data-driven decision-making, transparency, and responsible financial planning. It will help ensure that future rate and product decisions are grounded in affordability, fairness, compliance, and the long-term cost realities of serving customers.

As OCPA continues to mature as a public power provider, we remain focused on strengthening long-term financial resilience through disciplined forecasting, reserve planning, liquidity management, and strategic innovation. These efforts support OCPA’s goal of positioning the agency to pursue an investment-grade credit rating in 2028. Achieving this milestone would strengthen OCPA’s market credibility, improve access to financing and procurement opportunities, and help position the agency as a stronger counterparty in an increasingly complex energy market.

At the same time, challenges remain. Rising long-term procurement costs, Resource Adequacy requirements, evolving clean-energy mandates, and volatility in the Power Charge Indifference Adjustment (PCIA) continue to impact customer affordability and community energy providers across California. Energy costs remain OCPA’s largest budget driver, influenced by market prices, long-term procurement obligations, renewable compliance costs, and state procurement mandates.

CEO Message (Continued)
4 PCIA remains one of the most significant external challenges affecting OCPA’s competitiveness and customer affordability. Because PCIA is embedded in SCE bundled rates but shown separately on OCPA customer bills, it can distort the apparent comparison between OCPA and SCE service. OCPA cannot control the PCIA, but we must account for its impact in our financial planning, customer communications, product strategy, and advocacy efforts.

In the near term, OCPA is particularly focused on PCIA Track 2, including the valuation of pre-2019 banked Renewable Energy Credits held by investorowned utilities. OCPA supports fair valuation of these legacy renewable resources, especially where they provide compliance value to bundled utility customers. Assigning little or no value to these resources can increase PCIA pressure on departed customers, including OCPA customers, and undermine the fairness and transparency of the PCIA framework. OCPA will continue working with CalCCA and other CCAs to advocate for outcomes that are fair, transparent, and aligned with customer affordability.

OCPA will also continue to strengthen its regulatory and legislative engagement on Resource Adequacy, Integrated Resource Planning, procurement mandates, PCIA transparency, and other issues that affect customer costs. These efforts are essential because not all financial pressure can be solved through local budgeting alone. Some challenges require coordinated advocacy and policy reform.

This budget reflects both realism and optimism: realism about the challenges facing California’s energy sector and optimism about what can be achieved through responsible leadership, innovation, and strong community partnership. FY2026/27 is a year of focused execution and strategic alignment, with an emphasis on maintaining stability, advancing affordability strategies, implementing customer programs, completing the cost-of-service study, rebuilding reserves, preparing for 2027 rate and product decisions, and continuing progress toward credit rating readiness.

Together, we are building a more affordable, resilient, sustainable, and community-centered energy future for Orange County.

CEO Message (Continued)
01 May 7
Present Budget Framework
to the OCPA Board
Brief the Draft Budget with
the OCPA Board
Incorporate changes based
on Board feedback
Present Recommended
Budget to OCPA Board for
consideration and approval
02 03
04 Mid-May
Late May
June 8
FY2026/27 Budget Roadmap
5 The Orange County Power Authority (OCPA) is pleased to present a financially balanced FY2026/27 Operating Budget that projects a positive net position while supporting affordability, reserve rebuilding, and long-term financial sustainability.

OCPA’s budget is updated annually and reviewed mid-year to balance immediate operational needs with long-term financial stability and rate affordability. It outlines estimated revenues and expenses for the fiscal year, spanning July 1, 2026, to June 30, 2027, and is developed using a zero-based budgeting approach, requiring all expenses to be justified from the ground up to ensure efficient and purpose-driven resource allocation.

The proposed budget is organized into two primary categories: revenues and expenses.

These categories are intentionally broad to provide flexibility, minimizing the need for frequent adjustments while ensuring adaptability to changing conditions.

OCPA FY2026/27
Operating Budget - Background
6 1. Financial Stability: Despite near-term budget pressure in FY2025/26 due to OCPA’s commitment to limiting customer rate impacts while navigating rising energy costs, OCPA remains financially stable.

OCPA is projecting a net surplus of approximately $14 million and operating reserves of approximately $60 million, equal to 24% of total operating expenses, by June 30, 2027. The budget also maintains disciplined non-power supply operating expenses while preserving the staffing capacity needed to manage power procurement, customer programs, regulatory compliance, data analytics, and financial oversight.

2. Reserve Rebuilding: OCPA is expected to reach approximately $76 million in reserves, or 30% of total operating expenses, by December 31, 2027, and approximately $125 million, or 49% of total operating expenses, by December 31, 2029, consistent with the Board’s reserve target. This reserve rebuilding path also supports OCPA’s goal of positioning the agency to pursue an investment-grade credit rating in 2028.

3. Affordable and Predictable Rates: OCPA is holding 2026 rates steady while preparing for datadriven 2027 rate and product decisions through the cost-of-service study. This approach allows OCPA to balance near-term affordability, customer competitiveness, financial sustainability, and transparency.

OCPA is also implementing targeted affordability measures, including the Green Discount Program for eligible non-NEM residential customers, and continues to preserve NEM 2.0 benefits for all customers.

4. Innovative Financing and Cost Management: OCPA executed its first green prepayment bond transaction totaling approximately $929.4 million, generating an estimated 12.45% discount and approximately $25.3 million in energy cost savings over the initial five-year period. Building on this achievement, OCPA will continue evaluating additional green prepayment bond opportunities and other innovative financing tools to reduce long-term power supply costs and support customer affordability.

5. Community Programs and Local Benefits: The FY2026/27 Budget advances implementation of priorities identified through OCPA’s Community Power Plan process by supporting programs that respond to local community needs, including energy efficiency, small business support, workforce development, customer education, targeted bill relief, and clean energy access. 7 OCPA FY2026/27 Operating Budget -
Highlights
8 Recommended OCPA Operating
Budget FY2026/27
($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2025/26 % of Rev
Reforecast
FY2025/26 % of Rev
Proposed
Budget
FY2026/27 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 242,389 241,675 254,504
Revenue - Smart Choice Premium 7,525 7,306 6,233
Revenue - 100% Renewable Premium 262 259 2,412
Less: Uncollectible Accounts (3,753) (3,739) (3,947)
Revenue deferral 30,000 30,000 0 (30,000) (100.0%)
Net Revenue - Electricity 276,425 99.4% 275,500 99.4% 259,201 99.5% (16,299) (5.9%) Investment and Miscellaneous Income 1,535 0.6% 1,592 0.6% 1,200 0.5% (392) (24.6%) Total Net Revenue and Other Sources 277,960 100.0% 277,093 100.0% 260,401 100.0% (16,691) (6.0%)

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 267,287 96.2% 262,837 94.9% 228,169 87.6% (34,667) (13.2%) Data Manager 2,217 0.8% 2,220 0.8% 2,607 1.0% 386 17.4% Utilities Service Fees 399 0.1% 270 0.1% 250 0.1% (20) (7.3%) Staffing Costs 5,198 1.9% 5,295 1.9% 7,218 2.8% 1,923 36.3% Contract Services 1,808 0.7% 1,446 0.5% 1,791 0.7% 344 23.8% Legal Services 706 0.3% 663 0.2% 791 0.3% 127 19.2%
Communications and Outreach 1,546 0.6% 1,397 0.5% 1,592 0.6% 195 13.9% Other G&A 1,316 0.5% 1,272 0.5% 1,528 0.6% 256 20.1%
Energy Programs 1,199 0.4% 976 0.4% 2,204 0.8% 1,228 125.9% 281,675 101.3% 276,376 99.7% 246,149 94.5% (30,227) (10.9%)

NON-OPERATING EXPENDITURES
Interest costs - nonoperating 317 0.1% 311 0.1% 150 0.1% (161) (51.8%) Total Expenditures and Other Uses 281,992 101.5% 276,688 99.9% 246,299 94.6% (30,388) (11.0%) Net Income (Surplus/Deficit) (4,032) (1.5%) 405 0.1% 14,102 5.4% 13,697 3381.4% 13,701 5.6%
$ in thousands
Period Ending June 30
FY2025/26
Reforecast
%
Revenue
FY2026/27
Recommended
Budget
%
Revenue
Budget
Impact/
Change
($)
Retail Electricity Revenue $245,500 $259,201 $13,701
Revenue Deferral / Rate Stabilization
Adjustment 30,000 0 (30,000)
Net Electricity Revenue After Revenue
Deferral 275,500 99.4% 259,201 99.5% (16,299)
Investment Income 1,592 0.6% 1,200 0.5% (392)
Less: Power Supply Costs (262,837) 94.9% (228,169) 87.6% 34,668 Less: Non-Power Supply Operating
Expenses (13,540) 4.9% (17,980) 6.9% (4,440)
Less: Debt Service (311) 0.1% (150) 0.1% 161
Net Position $405 0.1% 14,102 5.4% $13,697
Operating Reserve as of June 30 $45,420 $59,521 $14,101 Reserve % 16% 24%
Operating Reserve as of December 31 $61,695 $75,953 $14,258 Reserve % 25% 30%
Meet Board’s
minimum reserve
target
9 OCPA FY2025/26 Reforecast and
FY2026/27 Recommended Budget
Overview
Key Notes:

FY2025/26:
• FY2025/26 reforecast projects a positive net
position of approximately $405,000,
improving by approximately $4.4 million compared
to the approved Mid-Year Budget projection of an
approximately $4.0 million deficit.
• The FY2025/26 improvement is primarily driven by
lower projected power supply costs resulting from
updated market-based renewable energy cost
assumptions, risk management actions, and initial
renewable energy prepayment savings beginning in
June 2026.

FY2026/27:
• FY2026/27 recommended budget projects a
positive net position of approximately $14
million while rebuilding reserves.
• Operating reserves are projected to reach
approximately $60 million or 24% by June 30,
2027, and approximately $76 million or 30% by
December 31, 2027, meeting the Board’s minimum
reserve target.
• Non-power supply operating expenses remain
limited relative to revenue and total operating
costs, supporting a lean operating model and
essential customer, finance, data, regulatory, and
program functions.

Primary Revenue Source: OCPA’s operating revenue is primarily derived from retail electricity sales. Revenue assumptions are developed to support power procurement, operating and nonoperating costs, and reserve contributions consistent with Board-approved financial policies.

Retail Load Forecast: The forecast reflects projected retail load for Buena Park, Fullerton, Irvine, and Fountain Valley, with Fountain Valley included beginning April 2027 consistent with its planned service launch.

Data-Based Forecasting: Customer counts and load estimates are based on actual customer data from Southern California Edison (SCE) and Calpine Community Energy (Calpine) reports, supplemented by forecast assumptions for future service territory changes, customer usage patterns, and program participation.
2026 Revenue Assumptions, July through December 2026: Revenue is based on Boardapproved rates held flat at October 2025 levels, supporting customer affordability and rate predictability. The forecast also reflects current customer product selections and unchanged product adders of +1¢/kWh for Smart Choice and +1.5¢/kWh for 100% Renewable Choice, relative to Basic Choice.
2027 and Future Revenue Assumptions, January 2027 through June 2032: Projected revenue is developed consistent with the Board-approved OCPA Rate Development Policy and will be informed by the cost-of-service study. Revenue assumptions are intended to support power supply costs, operating expenses, debt service, and targeted reserve rebuilding while balancing affordability, competitiveness, and long-term financial sustainability.

Final 2027 rates will be brought to the Board separately after completion of the cost-of-service study, bill impact analysis, and Board policy discussions. 10 OCPA Revenue Assumptions – Key Highlights
OCPA’s power supply costs include energy, renewable resources, carbon-free attributes, Resource Adequacy, and CAISO-related costs required to serve customers reliably and meet state requirements. SCE continues to manage transmission, distribution, billing, and grid infrastructure, while OCPA procures electric generation and related power supply products for its customers.

Key cost drivers include market prices, weather, customer load, Resource Adequacy requirements, renewable compliance obligations, and state procurement mandates. OCPA manages these pressures through long-term contracts, forward purchases, portfolio diversification, disciplined procurement planning, and ongoing portfolio risk management, as further discussed on the following page.

Power Supply Cost Components:
● Energy and Renewable Resources: Includes system energy, renewable energy, carbon-free attributes, and CAISO-related costs. These costs are estimated at $181 million, or approximately 79% of total power supply costs.
● Resource Adequacy (RA): A state-mandated reliability requirement that ensures sufficient generating capacity is available to serve customer demand during peak and stressed grid conditions. RA costs are estimated at $47 million, or approximately 21% of total power supply costs.
11 Power Supply Cost Assumptions:

Cost Components
The FY2026/27 power supply forecast reflects updated market-based assumptions for system energy, renewable energy, and Resource Adequacy. While market conditions have improved from recent peak levels, OCPA continues to use disciplined procurement planning and portfolio risk management because system energy, renewable energy, and Resource Adequacy markets remain subject to volatility.

Key Market Assumptions:
● System Energy: CAISO forward energy prices have continued to decline and are approximately 23% lower than one year ago, reflecting stable natural gas prices and an improved supply outlook.
● Renewable Energy: PCC1 renewable energy prices have declined significantly from prior peak levels. The budget reflects updated market-based renewable energy assumptions while recognizing that renewable compliance costs and CPUC Market Price Benchmark outcomes remain subject to market and regulatory uncertainty.
● Resource Adequacy: RA pricing has generally stabilized as incremental procurement and new supply have helped ease near-term capacity constraints. However, RA remains a state-mandated reliability requirement and a major power supply cost component. ● Cost Management Strategy: OCPA’s FY2026/27 forecast reflects multiple cost-management actions, including portfolio planning, forward procurement, renewable energy prepayment savings, and ongoing risk management. These efforts support budget predictability, state compliance, customer affordability, and long-term financial sustainability. 12 Power Supply Cost Assumptions:

Market Drivers and Cost Management
13 Power Supply Cost Assumptions:

Renewable Energy Prepayment Savings
Major Power Supply Cost Savings Achievement: Renewable Energy Prepayment Transaction
• OCPA closed its first renewable energy prepayment transaction on March 19, 2026. • The transaction totaled approximately $929.4 million through CCCFA, was rated Aa2 by Moody’s, and received a Green Bonds designation.
• The transaction is expected to reduce energy costs for the covered renewable energy supply by approximately 12.45%, generating approximately $25.3 million in energy cost savings over the initial five-year term.
• These savings support rate stability, customer affordability, and OCPA’s long-term financial sustainability.

Budget and Customer Impact
• This transaction helps convert financial innovation into practical customer value by reducing power supply cost pressure.
• Available net prepayment savings will help support the Board-approved Green Discount Program, allowing OCPA to provide targeted bill relief without relying on unrestricted reserves or increasing net operating costs for the program.
• The Green Discount Program provides an approximate 1% discount below SCE’s equivalent residential generation rates for eligible non-NEM residential customers who select the Green Discount option.

CARE, FERA, and other income-qualified households will be prioritized as administratively feasible. • The program is designed to maintain overall revenue stability and long-term financial sustainability.

Non-power supply operating expenses remain a small portion of OCPA’s overall budget. The FY2026/27 Budget emphasizes disciplined cost management, lean staffing, customer-facing services, regulatory compliance, and investments that support affordability, operational stability, and long-term financial resilience.

OCPA’s Data Management and SCE Service Fees support the customer data, billing, and service infrastructure required to operate a CCA serving approximately 188,000 customer accounts.

Data Management & SCE Service Fees
• Data Management Services: Provided by Calpine, these services include billing data validation, bill coordination with SCE, call center operations, customer enrollment database management, move-in/move-out services, and data reporting. • SCE Services: SCE provides meter reading, data processing, and customer billing-related services as required under the utility billing and service framework. These fees reflect services needed to support customer billing and data exchange. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Data Management Fee $2,607
SCE Service Fee $250
Total Data Management & SCE Service Fees $2,857 1.1%
14 3CE: Central Coast Community Energy; MCE: Marin Clean Energy; CPA: Clean Power Alliance; SDCP: San Diego Community Power; SVCE: Silicon Valley Clean Energy Operating Expenses Highlights:

Data Management & SCE Service Fees
CCA Comparison: Based on a comparison of 3CE, MCE, CPA, SDCP, and SVCE, total data management and SCE service fees range from approximately 0.9% to

1.6% of revenue. OCPA’s projected cost of 1.1% of revenue is within the peer CCA range and equates to approximately $1.27 per customer per month.

Staffing costs include salaries, payroll taxes, employee benefits, and Board member stipends. The FY2026/27 budget includes assumptions for cost-of-living adjustments, approved position recruitment, full-year impacts of existing staff, budgeted merit adjustments, and employee benefit changes.

Proposed Staffing: The FY2026/27 budget maintains the total number of full-time equivalent positions at 29 FTEs, with no proposed increase in total FTEs. The budget also includes 2 intern positions to support operational workload and professional development opportunities.

Key Staffing Assumptions:
• No net increase in authorized FTEs: Total full-time positions remain at 29 for FY2026/27. • Approved position recruitment: Budget assumptions include filling approved or vacant positions as needed to support core finance, data, power resources, communications and outreach, customer programs, regulatory and legislative, and administrative functions.
• Compensation planning: The budget includes cost-of-living adjustment (COLA) and merit assumptions consistent with OCPA’s compensation policies, labor market conditions, and actual performance evaluations. • Lean staffing model: OCPA serves approximately 188,000 customer accounts with 29 FTEs, equal to approximately 6,500 customer accounts per FTE.
• Budget refinement: Staffing projections will be reviewed and refined during the FY2026/27 Mid-Year Budget Update based on actual hiring, vacancies, benefit elections, and expenditures. 15 Operating Expenses Highlights: Staffing Costs and FTE Discipline
Key Notes:

OCPA is maintaining a lean staffing
model with no increase in
authorized full-time positions.

Staffing assumptions are designed
to preserve essential operational
capacity, support regulatory
compliance, manage power supply
and financial risk, and avoid higher
costs that could result from
turnover, vacancies, or overreliance
on outside support.
16 FY2026/27 Budget Assumption – Proposed Organizational Chart Staff proposes adjusting OCPA’s employer contribution for baseline employer-covered medical and vision plan options from 95% to 100%, effective July 2026, for employees and dependents enrolled in those plans. This is an incremental adjustment to OCPA’s existing benefits structure, not a new benefit program, and is intended to support retention, recruitment competitiveness, and organizational stability in a specialized energy-sector labor market.

Market Alignment, Retention, and Cost Control
• Incremental adjustment: OCPA currently provides 95% employer-paid medical and vision coverage. The proposal closes the remaining 5% employee cost-share for OCPA’s baseline employer-covered plan options and aligns more closely with peer CCA practices.
• Relevant labor market comparison: While 100% employer-paid coverage may be less common in the broader private sector, OCPA competes for specialized energy, regulatory, rates, finance, data, and compliance talent with CCAs, utilities, public agencies, and energy-sector organizations. For this reason, CCA and energy-sector benchmarks provide the most relevant comparison for recruitment and retention purposes. • Peer CCA alignment: Mercer’s CCA compensation survey found OCPA’s overall group health benefits were below the CCA median, with its dental ranked 7th out of 7 CCAs before the Board-approved dental enhancement in July 2024. • Not an outlier: Based on the benchmarking reviewed, the proposal is consistent with benefit practices used by comparable CCAs and moves OCPA closer to prevailing CCA market practices rather than above market. • Total compensation context: Benefit comparisons should be considered within total compensation. OCPA does not offer certain benefits commonly available in other public-sector settings, such as CalPERS pension participation, retiree medical benefits, bargaining agreements, or other employer-funded compensation features. The proposed enhancement helps support competitiveness within OCPA’s actual labor market without increasing authorized FTEs. • Retention and continuity: OCPA’s workforce is small and specialized; retaining experienced staff helps reduce recruiting costs, knowledge loss, and reliance on external consultants. 17 Operating Expenses Highlights: Group Health Plan
Enhancement
Key Notes:

The proposed group health plan
enhancement is a targeted marketalignment measure.

The proposal does not increase
authorized FTEs, does not create a
new benefit program, and represents
an estimated incremental FY2026/27
budget impact of approximately
$31,000, or about 0.01% of revenue
and 0.4% of total staffing costs.

Employees would continue to pay any
incremental cost for higher-cost plan
elections, preserving the cost-control
structure.

OCPA proposes to continue providing a Cost-of-Living Adjustment (COLA) for full-time employees, effective January 1, 2027, to help offset inflationary pressures and maintain competitive salary ranges. The adjustment will be based on the April 2026 Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, which is 3.7%. If approved, OCPA’s budgetary salary pay ranges will be updated to reflect the COLA.

COLA eligibility will be prorated based on hire date. Full-time employees hired before December 1, 2026, would receive the adjustment on a prorated basis. Employees hired on or after January 1, 2027, would not receive a COLA in this cycle. $ in thousands
Period Ending June 30 FY2026/27 Budget % of total % of rev Salaries $5,708 79.1%
Benefits $1,141 15.8%
COLA $174 2.4%
Board Stipends $119 1.6%
Payroll Taxes $76 1.1%
Total Staffing Costs $7,218 100% 2.8%
Total FTEs 29
Estimated Customer Accounts
per FTE
6,500
18 OCPA maintains 29 FTEs with no increase in authorized full-time positions. Total staffing costs represent 2.8% of revenue, within the peer CCA range of 1.8% to 5.3%, and support a lean staffing model serving approximately 188,000 customer accounts, or about 6,500 accounts per FTE.

Operating Expenses Highlights: Cost-of-Living Adjustments and Staffing Costs OCPA uses specialized external expertise to support essential functions that require technical, regulatory, financial, and energy market knowledge. This approach allows OCPA to maintain a lean staffing model while accessing expertise that may be specialized, time-sensitive, or periodic in nature. Professional contract services support the following areas:
• Energy Procurement and Portfolio Management: Supports power supply portfolio management, new member feasibility studies, scheduling coordination, Congestion Revenue Rights (CRR) purchases and sales, and California Independent System Operator (CAISO) settlements and reporting.
• Financial, Technology, and Other Professional Services: Includes accounting, annual financial audit, credit facility evaluation, rate strategy and cost-of-service study, SCE Energy Resource Recovery Account (ERRA) special assessment, information technology support, cybersecurity services, human resources, and banking services. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Power Supply Portfolio Management and Related $638
Accounting, Auditing, and Banking $375
Scheduling Coordination and Related $287
Rate Strategies and Assessments $287
IT, HR, Cybersecurity, and Other Support $204
Total Professional Contract Services $1,791 0.7%
19 Professional contract services total approximately $1.8 million, or 0.7% of revenue, supporting specialized energy, financial, technology, regulatory, and compliance functions while allowing OCPA to maintain a lean staffing model.

Based on peer CCA budget comparisons, professional contract services range from approximately 0.3% to 3.0% of revenue.

OCPA’s projected professional contract services cost of 0.7% of revenue is within this peer range.

Operating Expenses Highlights: Professional Contract Services Key Notes:

These services allow OCPA
to access specialized, timesensitive expertise without adding permanent staff for
functions that may be
technical, periodic, or
project-specific.

OCPA uses legal and specialized advocacy support to protect the agency’s operations, ensure compliance, support governance, and represent customer interests in regulatory and legislative matters. These services include general and special counsel, power procurement contract review and negotiation, regulatory proceedings, employment and labor matters, governance support, risk and liability management, clerk support, and legislative advocacy.

In FY2026/27, OCPA plans to add Sacramento-based legislative advocacy support to strengthen engagement with the California Legislature and state agencies. This support will help OCPA monitor legislation, provide timely policy insight, and advocate on issues that directly affect customer affordability, rate competitiveness, local energy choice, the Power Charge Indifference Adjustment (PCIA), Resource Adequacy, procurement mandates, and clean energy policy. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
General Counsel $309
Regulatory & Legislative $116
Clerk Support $109
Power Procurement Transactional & Negotiation $105
Labor Related $102
Sacramento Legislative Advocacy Support $50
Total Legal, Compliance & Legislative Advocacy Support Services $791 0.3% Additional In-House Legal FTEs None
20 Based on peer CCA budget comparisons, total legal and advocacy support costs range from approximately 0.1% to 0.4% of revenue. OCPA’s projected cost of 0.3% of revenue is within the peer range, with no additional in-house legal FTEs.

Operating Expenses Highlights: Legal, Compliance &
Legislative Advocacy Support Services
OCPA’s Communications and Outreach budget supports required customer notifications, public education, program awareness, community engagement, and transparent communication with customers and member communities. These activities help ensure residents and businesses understand OCPA’s rates, customer choices, clean energy programs, and role as a locally governed public agency.

For FY2026/27, the budget funds mandatory customer notices, including Joint Rate Comparisons, direct mailers, website and translation support, customer surveys, community outreach, and targeted communications for the Fountain Valley launch. The budget also supports outreach for customer programs, community events, sponsorships, and partnerships that help OCPA provide practical information about available services and benefits.
$ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Customer Communications, Education, Consulting, and Public Outreach $920 Required Notices, Direct Mailers, and Postage $315
Sponsorships and Community Memberships $165
Translation, Website Enhancement, and Annual Survey $143 Customer Materials, Design, and Miscellaneous Outreach Support $49 Total Communications & Outreach $1,592 0.6%
21 Based on peer CCA budget comparisons, communications and outreach costs range from approximately 0.2% to 0.6% of revenue. OCPA’s projected cost of

0.6% of revenue is within the peer range. Communications and Outreach supports required customer notices, rate transparency, multilingual access, program education, community engagement, and Fountain Valley launch preparation.

Operating Expenses Highlights: Communications & Outreach General and Administrative expenses support OCPA’s core public agency operations, financial controls, risk management, technology systems, office operations, and industry participation. These costs include office rent and lease amortization, utilities, insurance, bank and commitment fees, IT equipment and software, office maintenance, subscriptions, supplies, and ordinary business expenses.

G&A expenses also include targeted staff training, professional development, industry engagement, and membership dues for the California Community Choice Association (CalCCA) and the California Community Choice Financing Authority (CCCFA). These memberships support regulatory advocacy, legislative engagement, and financing structures that help OCPA manage long-term power supply costs, strengthen policy representation, and protect customer interests. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
CalCCA and CCCFA Membership Dues $453
Office Rental and Lease Amortization $227
Bank and Commitment Fees $180
IT Equipment and Software $152
Business Insurance $140
Office Maintenance, Improvements, Supplies, and Utilities $114 Staff Training, Industry Engagement, and Business Travel $175 Board, Public Meeting, and Business Meal Support $40
Other Ordinary Business Expenses $47
Total General & Administrative Expenses $1,528 0.6%
• CalCCA supports CCA advocacy before the California Legislature and regulatory agencies on issues affecting customer affordability, PCIA, Resource Adequacy, and procurement requirements.
• CCCFA supports prepayment financing structures designed to lower long-term power supply costs for participating CCAs. • G&A expenses total approximately $1.5 million, or 0.6% of revenue, supporting core operations, financial controls, risk management, IT systems, industry advocacy, and green prepayment bond administration. OCPA’s projected G&A cost remains within the peer CCA range of 0.4% to 1.6% of revenue. 22 Operating Expenses Highlights: General & Administrative Expenses
OCPA is committed to reinvesting in the community through customer programs that support affordability, energy efficiency, clean energy access, and measurable local benefits. These programs are designed to respond to the needs of households, renters, small businesses, multifamily communities, and cost-sensitive customers.

Building on priorities identified through OCPA’s Community Power Plan (CPP) process, FY2026/27 programs will focus on practical customer benefits, including targeted bill relief, energy efficiency improvements, customer education, workforce development, and community grants.

Green Discount Program: Provides targeted bill relief for eligible non-NEM residential customers who select the Green Discount option, with an approximate 1% discount below SCE’s equivalent residential generation rates. Program participation will be supported by available net prepayment savings, with CARE, FERA, and other income-qualified households prioritized as administratively feasible. 23 $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Green Discount Program, Targeted Bill Relief $1,000
Energy Efficiency Programs:

Renter $545
Residential $263
Multifamily Housing $235
Small Business $45
OC Bright Futures Grant $100
OCPA Marketplace, Incentive Finder, and Build Smart Trailer $16 Total Customer Programs $2,204 0.8%
Based on peer CCA budget comparisons, customer program costs range from approximately 1.1% to 3.6% of revenue. OCPA’s projected customer program budget of 0.8% of revenue remains below this peer range while funding targeted affordability, energy efficiency, and community benefit programs.

Operating Expenses Highlights: Customer Programs,
Targeted Bill Relief, and Incentives
OCPA participates in several state-, federal-, and utility-funded programs that support under-resourced communities and provide customer energy benefits. The FY2026/27 budgeted program income fully offsets eligible program costs, resulting in no net budget impact to OCPA.

Equitable Building Decarbonization Direct Install (EBD-DI): A California Energy Commission statewide initiative supporting allelectric appliances, energy efficiency measures, and weatherization upgrades for low-income households in under-resourced communities.

OCPA’s role includes outreach, participant handoffs, follow-up surveys, and program reporting.

OCPA Clean Energy Access (CEA) Program: OCPA’s locally branded Disadvantaged Community Green Tariff (DAC-GT) Program is a CPUC-approved program designed to provide eligible low-income residential customers in disadvantaged communities with clean energy benefits. Participants would receive 100% solar energy and an additional 20% bill discount. When combined with CARE or FERA discounts, qualified customers could save more than 50% on their monthly electric bill.

SoCal REN Program: The Southern California Regional Energy Network, a service of the County of Los Angeles, helps public agencies, households, multifamily properties, and small businesses access energy efficiency opportunities that reduce energy use and lower costs. 24 FY2026/27 Budget Income
($ in thousands)
Costs
($ in thousands)
Net Impact
($ in thousands)
EBD-DI Program $89 ($89) $0
CEA Program $291 ($291) $0
SoCal REN Program $105 ($105) $0
Total $485 ($485) $0
Operating Expenses Highlights: State, Federal, and UtilityFunded Programs All three programs are externally funded and fully reimbursable, allowing OCPA to deliver targeted benefits to under-resourced communities without increasing net operating costs.

Debt service includes interest costs on OCPA’s loan from the City of Irvine, which is scheduled to be fully paid off by January 2027, as well as imputed interest related to OCPA’s office lease. Lease-related interest is calculated in accordance with Governmental Accounting Standards Board (GASB) Statement No. 87, which requires lease obligations to be recognized over the lease term.
$ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Interest Costs, City of Irvine Loan, Scheduled Payoff January 2027 $107 Interest Costs, OCPA Office Lease $43
Total Debt Service $150 0.1%
25 CCA Comparison: Based on peer CCA budget comparisons, debt service costs range from approximately 0.1% to 0.4% of revenue. OCPA’s projected debt service cost of 0.1% of revenue is at the low end of the peer range, and the City of Irvine loan is scheduled to be fully paid off by January 2027.

Non-Operating Expenses Highlights: Debt Service
26 5-Year OCPA Financial Proforma
FY2026/27 to 2031/32
($ in thousands)
Period Ending Jun 30
Reforecast
FY2025/26 % of Rev
Budget
FY2026/27 % of Rev
Projection
FY2027/28 % of Rev
Projection
FY2028/29 % of Rev
Projection
FY2029/30 % of Rev
Projection
FY2030/31 % of Rev
Projection
FY2031/32 % of Rev

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 241,675 87.2% 254,504 97.7% 265,722 97.3% 264,161 97.3% 267,441 97.3% 263,251 97.1% 269,742 97.2% Revenue - Smart Choice Premium 7,306 2.6% 6,233 2.4% 4,881 1.8% 4,878 1.8% 4,960 1.8% 5,041 1.9% 5,129 1.8% Revenue - 100% Renewable Premium 259 0.1% 2,412 0.9% 5,360 2.0% 5,438 2.0% 5,525 2.0% 5,609 2.1% 5,701 2.1% Less: Uncollectible Accounts (3,739) (1.5%) (3,947) (1.5%) (4,139) (1.5%) (4,117) (1.5%) (4,169) (1.5%) (4,109) (1.5%) (4,209) (1.5%) Revenue deferral 30,000 0 0 0 0 0 0
Net Revenue - Electricity 275,500 99.4% 259,201 99.5% 271,824 99.6% 270,359 99.6% 273,757 99.6% 269,792 99.6% 276,363 99.6% Investment and Miscellaneous Income 1,592 0.6% 1,200 0.5% 1,200 0.4% 1,200 0.4% 1,200 0.4% 1,200 0.4% 1,200 0.4% Total Net Revenue and Other Sources 277,093 100.0% 260,401 100.0% 273,024 100.0% 271,559 100.0% 274,957 100.0% 270,992 100.0% 277,563 100.0%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 262,837 94.9% 228,169 87.6% 226,023 82.8% 229,737 84.6% 235,578 85.7% 244,074 90.1% 251,237 90.5% Data Manager 2,220 0.8% 2,607 1.0% 2,849 1.0% 2,949 1.1% 3,052 1.1% 3,159 1.2% 3,270 1.2% Utilities Service Fees 270 0.1% 250 0.1% 260 0.1% 267 0.1% 275 0.1% 284 0.1% 292 0.1% Staffing Costs 5,295 1.9% 7,218 2.8% 8,102 3.0% 8,516 3.1% 8,942 3.3% 9,389 3.5% 9,858 3.6% Contract Services 1,446 0.5% 1,791 0.7% 1,845 0.7% 1,724 0.6% 1,754 0.6% 1,784 0.7% 1,815 0.7% Legal Services 663 0.2% 791 0.3% 828 0.3% 866 0.3% 866 0.3% 866 0.3% 866 0.3% Communications and Outreach 1,397 0.5% 1,592 0.6% 1,688 0.6% 1,769 0.7% 1,855 0.7% 1,945 0.7% 2,039 0.7% Other G&A 1,272 0.5% 1,528 0.6% 1,477 0.5% 1,510 0.6% 1,538 0.6% 1,569 0.6% 1,601 0.6% Energy Programs 976 0.4% 2,204 0.8% 1,204 0.4% 1,204 0.4% 1,204 0.4% 1,204 0.4% 1,204 0.4% 276,376 99.7% 246,149 94.5% 244,277 89.5% 248,543 91.5% 255,064 92.8% 264,273 97.5% 272,183 98.1%

NON-OPERATING EXPENDITURES
Interest costs - nonoperating 311 0.1% 150 0.1% 35 0.0% 26 0.0% 16 0.0% 5 0.0% 5 0.0% Total Expenditures and Other Uses 276,688 99.9% 246,299 94.6% 244,311 89.5% 248,569 91.5% 255,079 92.8% 264,278 97.5% 272,188 98.1% Net Income Surplus/(Deficit) 405 0.1% 14,102 5.4% 28,712 10.5% 22,991 8.5% 19,877 7.2% 6,714 2.5% 5,375 1.9% Reserve Balance:

Carryover balance 45,014 16.2% 45,420 17.4% 59,521 21.8% 88,234 32.5% 111,224 40.5% 131,102 48.4% 137,816 49.7% Net Income Surplus/(Deficit) 405 0.1% 14,102 5.4% 28,712 10.5% 22,991 8.5% 19,877 7.2% 6,714 2.5% 5,375 1.9% Ending balance 45,420 59,521 88,234 111,224 131,102 137,816 143,191 % of operating expenses 16% 24% 36% 45% 51% 52% 53%
Below Target Below Target Below Target Below Target Above Target 27 SCE PCIA/Gen
rates uncertainty
Power prices are near
record high levels, volatile
market, scare RA supply
during summer months
Customer defaults,
collateral postings
Regulatory & legislative
uncertainty, central buyer,
direct access, PSPS
Rate increases will
ultimately impact
IOU
RATES
POWER
SUPPLY
JOLTS

CUSTOMER

PAYMENTS

REG & LEG
ISSUES
RATE

AFFORDABILITY
OCPA Operating Reserves
OCPA maintains operating reserves to absorb key financial and operating risks, including:

Utility generation
rate and PCIA
volatility
Power market volatility and
Resource Adequacy cost
pressure
Customer payment
risk during economic
downturns
Regulatory and
legislative uncertainty
Energy price
increases may
impact usage,
electrification, and
customer retention
Possibility of incurring
significant financial risks

CHANGES IN
MEMBER

PARTICIPATION
FY26/27 Projected Reserve
$60mil or 24% by 6/30/2027
Reserve Rebuilding Target
$76mil or 30% by 12/31/2027
$125mil or 49% by 12/31/2029
28 OCPA’s five-year financial outlook shows a disciplined reserve rebuilding path while maintaining stable operations and supporting customer affordability. The reserve strategy is designed to strengthen OCPA’s ability to manage external risks, maintain liquidity, support power procurement, and prepare for future credit rating evaluation.

OCPA is projected to reach approximately $76 million in reserves, or 30% of total operating expenses, by December 31, 2027, and approximately $125 million in reserves, or approximately 49% of total operating expenses, by December 31, 2029. This reserve rebuilding path supports long-term financial sustainability, customer affordability, credit rating readiness, and cost-effective power procurement.
5-Year Financial Outlook and Reserve Rebuilding Plan
Projected Revenue Stability and Reserve Growth
Key Notes:

OCPA is projected to meet the
Board’s minimum reserve target
by December 31, 2027, and
approach the upper end of the
reserve target range by
December 31, 2029. This
supports financial resilience,
customer affordability, credit
rating readiness, and costeffective power procurement.

Established in November 2020 as a Joint Powers Authority, OCPA is a locally governed, not-forprofit public agency that provides electric generation services to customers in Buena Park, Fullerton, and Irvine through California’s Community Choice Aggregation model. Fountain Valley is scheduled to begin receiving service through OCPA in April 2027.

OCPA procures electricity generation on behalf of customers, while SCE continues transmission, distribution, metering, and billing services. OCPA’s work focuses on cleaner energy, customer affordability, local control, rate stability, customer programs, and long-term financial sustainability.

About OCPA
Councilmember
City of Buena Park
2026 OCPA Board
Susan Sonne
Chair
James Mai
Vice Chair
Vice Mayor
City of Irvine
Fred Jung
Director
Mayor
City of Fullerton
Glenn Grandis
Director
Councilmember
City of Fountain
Valley
Kathleen Treseder
Director
Councilmember
City of Irvine
Alternates Board Members:

Lamiya Hoque
Vice Mayor
City of Buena Park
William Go
Councilmember
City of Irvine
Shanna Charles
Councilmember
City of Fullerton
Ted Bui
Councilmember
City of Fountain
Valley
Betty Martinez Franco
Councilmember
City of Irvine
Glossary
Cost-of-Living Adjustment (COLA)
A COLA is an increase in compensation intended to help employees maintain the value of their pay against inflation. COLAs are typically based on inflation rates measured by the Consumer Price Index (CPI) for a specific period.

Consumer Price Index (CPI)
The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers and is used to measure inflation and deflation. The Bureau of Labor Statistics calculates the CPI as a weighted average of prices for a basket of goods and services.

Renewable Portfolio Standards (RPS)
RPS are regulations that require energy providers to generate a minimum percentage of their energy from renewable sources.

California's RPS program was established in 2002 by Senate Bill (SB) 1078 (Sher, 2002), which initially mandated that 20% of electricity retail sales be served by renewable resources by 2017. The program was later expanded by SB 100 (de León, 2018), which increased the RPS requirement to 60% by 2030 and mandated that 100% of California’s electricity come from carbon-free resources by 2045.

The California Energy Commission (CEC) verifies the eligibility of renewable energy procured by LSEs, including retail sellers, publicly owned utilities (POUs), and other entities serving retail electricity sales in California that are obligated to participate and report to the RPS program.

Eligible renewable resources are defined in California Public Resources Code § 25741 and include facilities using the following technologies: Biomass, Solar Thermal, Photovoltaic, Wind, Geothermal, Fuel cells using renewable fuels, Hydroelectric under 30 MW, Digester gas, Municipal solid waste conversion, Landfill gas, Ocean wave, Ocean thermal, Tidal current.

Market Price Benchmark (MPB)
The MPB is an average of utility portfolio costs used in calculating the ERRA Forecast Updates. It is a key component in PCIA calculations. The MPB is determined using the volume-weighted average of most recent market transactions and is used to calculate the final portfolio values in the PCIA.

California Public Utilities Commission (CPUC)
CPUC is a state agency that regulates investor-owned utilities (IOU) in California. Its responsibilities include overseeing utility services, protecting consumers, safeguarding the environment, and ensuring Californians have access to safe and reliable utility infrastructure and services.

While the CPUC does not regulate the pricing of Community Choice Aggregators (CCAs), it enforces various operational requirements mandated by the legislature.

These include compliance with the Renewable Portfolio Standard (RPS), Energy Storage mandates, Resource Adequacy (RA) requirements, public goods charge energy efficiency funding, and rate comparison disclosures.

In addition, numerous CPUC proceedings can directly or indirectly affect CCAs. These include IOU procurement and rate-setting processes, as well as the establishment of exit fee calculations, which impact CCA operations and costs.

Resource Adequacy (RA)
The CPUC adopted an RA policy framework in 2004, as outlined in Public Utilities Code section 380, to ensure the reliability of electric service in California. This framework established RA obligations for all LSEs within the CPUC’s jurisdiction, including IOUs, energy service providers (ESPs), and CCAs.

The RA policy framework, implemented through the RA program, guides resource procurement and promotes infrastructure investment by requiring LSEs to procure capacity to ensure that resources are available to the California Independent System Operator (CAISO) when and where they are needed.

To ensure LSEs can meet peak demand, the CPUC requires CCAs to submit annual and monthly filings demonstrating compliance with specified capacity procurement percentages. The RA program includes separate requirements for system, local, and flexible RA.

California Independent System Operator (CAISO)
The CAISO manages the flow of electricity across high-voltage, long-distance power lines, administers a wholesale energy market, and oversees transmission planning to maximize efficiency and reliability.

Full-Time Equivalent (FTE)
An FTE measures the total number of hours employees work in relation to a full-time work schedule.

Power Charge Indifference Adjustment (PCIA)
The PCIA is a fee charged by IOUs to CCA customers to ensure that remaining utility (bundled) customers do not face cost increases due to customers migrating to a CCA.

The PCIA calculation methodology is established by the CPUC and is updated annually.

Vintages are assigned based on the year of customer departure from the utility.

CCA customers are responsible for paying this fee, which is set by utilities. However, CCAs, including OCPA, typically set their rates lower to help offset the impact of the PCIA on their customers.

California Community Choice Association (CalCCA)
The CalCCA represents the interests of California’s community choice electricity providers in the legislature and at state regulatory agencies, including the California Public Utilities Commission, California Energy Commission, and California Air Resources Board. CalCCA’s mission is to create a legislative and regulatory environment that supports the development and long-term sustainability of locally-run Community Choice Aggregators (CCAs) in California.

California Community Choice Financing Authority (CCCFA) The CCCFA was established in 2021 with the goal of reducing the cost of power purchases for member CCAs through pre-payment structures. The prepay structure effectively leverages the difference between tax-exempt and taxable debt rates to fund the reduction in the cost of power purchases.

Net Energy Metering (NEM)
NEM is a billing mechanism that allows customers with renewable energy systems, like solar panels, to receive credit for surplus electricity they send back to the grid.

California Alternate Rates for Energy (CARE)
CARE is a financial assistance program administered by SCE that helps qualifying families lower their monthly energy bills with a 32.5% bill discount. OCPA customers have access to the same rate assistance programs offered by SCE and CARE remains available to eligible OCPA customers.

Family Electrical Rate Assistance (FERA)
FERA is another financial assistance program administered by SCE that helps qualifying families lower their monthly energy bills with an 18% bill discount. OCPA customers have access to the same rate assistance programs offered by SCE and FERA remains available to eligible OCPA customers.

Equitable Building Decarbonization Direct Install (EBD-DI) Program The EBD-DI Program is a state-wide program that aims to reduce greenhouse gas emissions in homes and advance energy equity through incentivizing increased adoption of low-carbon technologies. The Direct Install program provides decarbonization retrofits to low- and moderate-income households.

OCPA’s Clean Energy Access (CEA) Program
In June 2018, the CPUC approved the Disadvantaged Communities Green Tariff (DACGT) program, which provides low-income residential customers in disadvantaged areas with 100% solar energy and a 20% bill discount. OCPA was recently approved to administer this program, securing 0.53 MW capacity from SCE and is naming the program Clean Energy Access (CEA) Program.

Southern California Regional Energy Network (SoCalREN) Program The SoCalREN is a ratepayer-funded program authorized by the CPUC and administered by the County of Los Angeles. It is designed to help residents, businesses, and local government agencies across Southern California to reduce energy use, lower utility costs, and transition to a more sustainable energy future.

Governmental Accounting Standards Board (GASB)
The GASB is an independent, private-sector organization that establishes accounting and financial reporting standards for U.S. state and local governments that follow generally accepted accounting principles (GAAP).

Fiscal Year
Operating
Budget
2026-2027
Table of Contents
Fiscal Year Operating Budget 2026-2027
Pg. 02 CEO Message
Pg. 05 Operating Budget Roadmap
Pg. 06 Operating Budget Background and Highlights
Pg. 08 FY2026/27 Recommended OCPA Operating Budget
Pg. 10 Revenue and Power Supply Cost Assumptions
Pg. 14 Operating and Non-Operating Expense Highlights
Pg. 26 5-Year OCPA Financial Proforma FY2026/27 – FY2031/32 Pg. 29 About OCPA
Pg. 30 2026 OCPA Board
CEO Message
2 As we enter Fiscal Year 2026/27, Orange County Power Authority (OCPA) remains grounded in the principles that inspired our creation: local control, community partnership, affordability, innovation, transparency, and long-term sustainability. This budget reflects our commitment to serving Orange County communities with accountability, responsible stewardship, and purpose.

California’s energy landscape continues to evolve rapidly. Increasing regulatory complexity, climate-related reliability needs, volatile power markets, and shifting state and federal policies continue to shape the future of energy procurement and delivery. These pressures affect community choice aggregators (CCAs) and other load-serving entities across California, making disciplined financial planning, active risk management, and customer-focused decisionmaking more important than ever.

As a locally governed, not-for-profit public agency, OCPA prioritizes customer value rather than shareholder profit. Our mission remains clear: to provide reliable, cleaner energy at competitive and stable rates while reinvesting in the communities we serve and advancing solutions that improve affordability, resilience, and sustainability.

The FY2026/27 Budget aligns with OCPA’s updated Strategic Plan and focuses on five core priorities:
o Strengthening community partnerships and engagement;
o Maintaining fiscal sustainability and affordability;
o Designing customer programs that reflect local needs; o Advancing renewable energy and clean-energy goals; and o Advocating for customers in state and regional energy policy discussions.

A major accomplishment this past year was the completion of the Community Needs Assessment for OCPA’s Community Power Plan (CPP), developed through extensive engagement with residents, businesses, community organizations, and local leaders. This work provides a roadmap for future customer programs and local investments centered on equity, resilience, affordability, and measurable community benefit. The FY2026/27 Budget begins the next phase of this work by moving from assessment to implementation, with a focus on practical benefits for customers and member communities. 3 OCPA also successfully executed its first green prepayment bond transaction, marking a major milestone in the agency’s strategy to manage power supply costs and support long-term customer affordability. Totaling approximately $929.4 million, this innovative financing strategy is expected to generate energy cost savings through a 12.45% discount, producing approximately $25.3 million in savings over the initial five-year period. This achievement advances OCPA’s innovative financing strategy and provides a meaningful tool to help offset power cost pressure and support customer value.

Despite ongoing market and regulatory challenges, OCPA maintained financial stability throughout the year with positive reserves, stable operations, and no immediate liquidity concerns. At the same time, the agency recognizes that financial flexibility remains tighter than our long-term target and that reserve rebuilding must continue in a disciplined and phased manner.

OCPA is also advancing a comprehensive cost-of-service study that will provide the analytical foundation for future rate design, product strategy, cost allocation, customer competitiveness, and long-term financial sustainability beginning in 2027. This effort reflects OCPA’s commitment to data-driven decision-making, transparency, and responsible financial planning. It will help ensure that future rate and product decisions are grounded in affordability, fairness, compliance, and the long-term cost realities of serving customers.

As OCPA continues to mature as a public power provider, we remain focused on strengthening long-term financial resilience through disciplined forecasting, reserve planning, liquidity management, and strategic innovation. These efforts support OCPA’s goal of positioning the agency to pursue an investment-grade credit rating in 2028. Achieving this milestone would strengthen OCPA’s market credibility, improve access to financing and procurement opportunities, and help position the agency as a stronger counterparty in an increasingly complex energy market.

At the same time, challenges remain. Rising long-term procurement costs, Resource Adequacy requirements, evolving clean-energy mandates, and volatility in the Power Charge Indifference Adjustment (PCIA) continue to impact customer affordability and community energy providers across California. Energy costs remain OCPA’s largest budget driver, influenced by market prices, long-term procurement obligations, renewable compliance costs, and state procurement mandates.

CEO Message (Continued)
4 PCIA remains one of the most significant external challenges affecting OCPA’s competitiveness and customer affordability. Because PCIA is embedded in SCE bundled rates but shown separately on OCPA customer bills, it can distort the apparent comparison between OCPA and SCE service. OCPA cannot control the PCIA, but we must account for its impact in our financial planning, customer communications, product strategy, and advocacy efforts.

In the near term, OCPA is particularly focused on PCIA Track 2, including the valuation of pre-2019 banked Renewable Energy Credits held by investorowned utilities. OCPA supports fair valuation of these legacy renewable resources, especially where they provide compliance value to bundled utility customers. Assigning little or no value to these resources can increase PCIA pressure on departed customers, including OCPA customers, and undermine the fairness and transparency of the PCIA framework. OCPA will continue working with CalCCA and other CCAs to advocate for outcomes that are fair, transparent, and aligned with customer affordability.

OCPA will also continue to strengthen its regulatory and legislative engagement on Resource Adequacy, Integrated Resource Planning, procurement mandates, PCIA transparency, and other issues that affect customer costs. These efforts are essential because not all financial pressure can be solved through local budgeting alone. Some challenges require coordinated advocacy and policy reform.

This budget reflects both realism and optimism: realism about the challenges facing California’s energy sector and optimism about what can be achieved through responsible leadership, innovation, and strong community partnership. FY2026/27 is a year of focused execution and strategic alignment, with an emphasis on maintaining stability, advancing affordability strategies, implementing customer programs, completing the cost-of-service study, rebuilding reserves, preparing for 2027 rate and product decisions, and continuing progress toward credit rating readiness.

Together, we are building a more affordable, resilient, sustainable, and community-centered energy future for Orange County.

CEO Message (Continued)
01 May 7
Present Budget Framework
to the OCPA Board
Brief the Draft Budget with
the OCPA Board
Incorporate changes based
on Board feedback
Present Recommended
Budget to OCPA Board for
consideration and approval
02 03
04 Mid-May
Late May
June 8
FY2026/27 Budget Roadmap
5 The Orange County Power Authority (OCPA) is pleased to present a financially balanced FY2026/27 Operating Budget that projects a positive net position while supporting affordability, reserve rebuilding, and long-term financial sustainability.

OCPA’s budget is updated annually and reviewed mid-year to balance immediate operational needs with long-term financial stability and rate affordability. It outlines estimated revenues and expenses for the fiscal year, spanning July 1, 2026, to June 30, 2027, and is developed using a zero-based budgeting approach, requiring all expenses to be justified from the ground up to ensure efficient and purpose-driven resource allocation.

The proposed budget is organized into two primary categories: revenues and expenses.

These categories are intentionally broad to provide flexibility, minimizing the need for frequent adjustments while ensuring adaptability to changing conditions.

OCPA FY2026/27
Operating Budget - Background
6 1. Financial Stability: Despite near-term budget pressure in FY2025/26 due to OCPA’s commitment to limiting customer rate impacts while navigating rising energy costs, OCPA remains financially stable.

OCPA is projecting a net surplus of approximately $14 million and operating reserves of approximately $60 million, equal to 24% of total operating expenses, by June 30, 2027. The budget also maintains disciplined non-power supply operating expenses while preserving the staffing capacity needed to manage power procurement, customer programs, regulatory compliance, data analytics, and financial oversight.

2. Reserve Rebuilding: OCPA is expected to reach approximately $76 million in reserves, or 30% of total operating expenses, by December 31, 2027, and approximately $125 million, or 49% of total operating expenses, by December 31, 2029, consistent with the Board’s reserve target. This reserve rebuilding path also supports OCPA’s goal of positioning the agency to pursue an investment-grade credit rating in 2028.

3. Affordable and Predictable Rates: OCPA is holding 2026 rates steady while preparing for datadriven 2027 rate and product decisions through the cost-of-service study. This approach allows OCPA to balance near-term affordability, customer competitiveness, financial sustainability, and transparency.

OCPA is also implementing targeted affordability measures, including the Green Discount Program for eligible non-NEM residential customers, and continues to preserve NEM 2.0 benefits for all customers.

4. Innovative Financing and Cost Management: OCPA executed its first green prepayment bond transaction totaling approximately $929.4 million, generating an estimated 12.45% discount and approximately $25.3 million in energy cost savings over the initial five-year period. Building on this achievement, OCPA will continue evaluating additional green prepayment bond opportunities and other innovative financing tools to reduce long-term power supply costs and support customer affordability.

5. Community Programs and Local Benefits: The FY2026/27 Budget advances implementation of priorities identified through OCPA’s Community Power Plan process by supporting programs that respond to local community needs, including energy efficiency, small business support, workforce development, customer education, targeted bill relief, and clean energy access. 7 OCPA FY2026/27 Operating Budget -
Highlights
8 Recommended OCPA Operating
Budget FY2026/27
($ in thousands)
Period Ending Jun 30
Approved
Mid-Year
Budget
FY 2025/26 % of Rev
Reforecast
FY2025/26 % of Rev
Proposed
Budget
FY2026/27 % of Rev Change $ Change %

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 242,389 241,675 254,504
Revenue - Smart Choice Premium 7,525 7,306 6,233
Revenue - 100% Renewable Premium 262 259 2,412
Less: Uncollectible Accounts (3,753) (3,739) (3,947)
Revenue deferral 30,000 30,000 0 (30,000) (100.0%)
Net Revenue - Electricity 276,425 99.4% 275,500 99.4% 259,201 99.5% (16,299) (5.9%) Investment and Miscellaneous Income 1,535 0.6% 1,592 0.6% 1,200 0.5% (392) (24.6%) Total Net Revenue and Other Sources 277,960 100.0% 277,093 100.0% 260,401 100.0% (16,691) (6.0%)

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 267,287 96.2% 262,837 94.9% 228,169 87.6% (34,667) (13.2%) Data Manager 2,217 0.8% 2,220 0.8% 2,607 1.0% 386 17.4% Utilities Service Fees 399 0.1% 270 0.1% 250 0.1% (20) (7.3%) Staffing Costs 5,198 1.9% 5,295 1.9% 7,218 2.8% 1,923 36.3% Contract Services 1,808 0.7% 1,446 0.5% 1,791 0.7% 344 23.8% Legal Services 706 0.3% 663 0.2% 791 0.3% 127 19.2%
Communications and Outreach 1,546 0.6% 1,397 0.5% 1,592 0.6% 195 13.9% Other G&A 1,316 0.5% 1,272 0.5% 1,528 0.6% 256 20.1%
Energy Programs 1,199 0.4% 976 0.4% 2,204 0.8% 1,228 125.9% 281,675 101.3% 276,376 99.7% 246,149 94.5% (30,227) (10.9%)

NON-OPERATING EXPENDITURES
Interest costs - nonoperating 317 0.1% 311 0.1% 150 0.1% (161) (51.8%) Total Expenditures and Other Uses 281,992 101.5% 276,688 99.9% 246,299 94.6% (30,388) (11.0%) Net Income (Surplus/Deficit) (4,032) (1.5%) 405 0.1% 14,102 5.4% 13,697 3381.4% 13,701 5.6%
$ in thousands
Period Ending June 30
FY2025/26
Reforecast
%
Revenue
FY2026/27
Recommended
Budget
%
Revenue
Budget
Impact/
Change
($)
Retail Electricity Revenue $245,500 $259,201 $13,701
Revenue Deferral / Rate Stabilization
Adjustment 30,000 0 (30,000)
Net Electricity Revenue After Revenue
Deferral 275,500 99.4% 259,201 99.5% (16,299)
Investment Income 1,592 0.6% 1,200 0.5% (392)
Less: Power Supply Costs (262,837) 94.9% (228,169) 87.6% 34,668 Less: Non-Power Supply Operating
Expenses (13,540) 4.9% (17,980) 6.9% (4,440)
Less: Debt Service (311) 0.1% (150) 0.1% 161
Net Position $405 0.1% 14,102 5.4% $13,697
Operating Reserve as of June 30 $45,420 $59,521 $14,101 Reserve % 16% 24%
Operating Reserve as of December 31 $61,695 $75,953 $14,258 Reserve % 25% 30%
Meet Board’s
minimum reserve
target
9 OCPA FY2025/26 Reforecast and
FY2026/27 Recommended Budget
Overview
Key Notes:

FY2025/26:
• FY2025/26 reforecast projects a positive net
position of approximately $405,000,
improving by approximately $4.4 million compared
to the approved Mid-Year Budget projection of an
approximately $4.0 million deficit.
• The FY2025/26 improvement is primarily driven by
lower projected power supply costs resulting from
updated market-based renewable energy cost
assumptions, risk management actions, and initial
renewable energy prepayment savings beginning in
June 2026.

FY2026/27:
• FY2026/27 recommended budget projects a
positive net position of approximately $14
million while rebuilding reserves.
• Operating reserves are projected to reach
approximately $60 million or 24% by June 30,
2027, and approximately $76 million or 30% by
December 31, 2027, meeting the Board’s minimum
reserve target.
• Non-power supply operating expenses remain
limited relative to revenue and total operating
costs, supporting a lean operating model and
essential customer, finance, data, regulatory, and
program functions.

Primary Revenue Source: OCPA’s operating revenue is primarily derived from retail electricity sales. Revenue assumptions are developed to support power procurement, operating and nonoperating costs, and reserve contributions consistent with Board-approved financial policies.

Retail Load Forecast: The forecast reflects projected retail load for Buena Park, Fullerton, Irvine, and Fountain Valley, with Fountain Valley included beginning April 2027 consistent with its planned service launch.

Data-Based Forecasting: Customer counts and load estimates are based on actual customer data from Southern California Edison (SCE) and Calpine Community Energy (Calpine) reports, supplemented by forecast assumptions for future service territory changes, customer usage patterns, and program participation.
2026 Revenue Assumptions, July through December 2026: Revenue is based on Boardapproved rates held flat at October 2025 levels, supporting customer affordability and rate predictability. The forecast also reflects current customer product selections and unchanged product adders of +1¢/kWh for Smart Choice and +1.5¢/kWh for 100% Renewable Choice, relative to Basic Choice.
2027 and Future Revenue Assumptions, January 2027 through June 2032: Projected revenue is developed consistent with the Board-approved OCPA Rate Development Policy and will be informed by the cost-of-service study. Revenue assumptions are intended to support power supply costs, operating expenses, debt service, and targeted reserve rebuilding while balancing affordability, competitiveness, and long-term financial sustainability.

Final 2027 rates will be brought to the Board separately after completion of the cost-of-service study, bill impact analysis, and Board policy discussions. 10 OCPA Revenue Assumptions – Key Highlights
OCPA’s power supply costs include energy, renewable resources, carbon-free attributes, Resource Adequacy, and CAISO-related costs required to serve customers reliably and meet state requirements. SCE continues to manage transmission, distribution, billing, and grid infrastructure, while OCPA procures electric generation and related power supply products for its customers.

Key cost drivers include market prices, weather, customer load, Resource Adequacy requirements, renewable compliance obligations, and state procurement mandates. OCPA manages these pressures through long-term contracts, forward purchases, portfolio diversification, disciplined procurement planning, and ongoing portfolio risk management, as further discussed on the following page.

Power Supply Cost Components:
● Energy and Renewable Resources: Includes system energy, renewable energy, carbon-free attributes, and CAISO-related costs. These costs are estimated at $181 million, or approximately 79% of total power supply costs.
● Resource Adequacy (RA): A state-mandated reliability requirement that ensures sufficient generating capacity is available to serve customer demand during peak and stressed grid conditions. RA costs are estimated at $47 million, or approximately 21% of total power supply costs.
11 Power Supply Cost Assumptions:

Cost Components
The FY2026/27 power supply forecast reflects updated market-based assumptions for system energy, renewable energy, and Resource Adequacy. While market conditions have improved from recent peak levels, OCPA continues to use disciplined procurement planning and portfolio risk management because system energy, renewable energy, and Resource Adequacy markets remain subject to volatility.

Key Market Assumptions:
● System Energy: CAISO forward energy prices have continued to decline and are approximately 23% lower than one year ago, reflecting stable natural gas prices and an improved supply outlook.
● Renewable Energy: PCC1 renewable energy prices have declined significantly from prior peak levels. The budget reflects updated market-based renewable energy assumptions while recognizing that renewable compliance costs and CPUC Market Price Benchmark outcomes remain subject to market and regulatory uncertainty.
● Resource Adequacy: RA pricing has generally stabilized as incremental procurement and new supply have helped ease near-term capacity constraints. However, RA remains a state-mandated reliability requirement and a major power supply cost component. ● Cost Management Strategy: OCPA’s FY2026/27 forecast reflects multiple cost-management actions, including portfolio planning, forward procurement, renewable energy prepayment savings, and ongoing risk management. These efforts support budget predictability, state compliance, customer affordability, and long-term financial sustainability. 12 Power Supply Cost Assumptions:

Market Drivers and Cost Management
13 Power Supply Cost Assumptions:

Renewable Energy Prepayment Savings
Major Power Supply Cost Savings Achievement: Renewable Energy Prepayment Transaction
• OCPA closed its first renewable energy prepayment transaction on March 19, 2026. • The transaction totaled approximately $929.4 million through CCCFA, was rated Aa2 by Moody’s, and received a Green Bonds designation.
• The transaction is expected to reduce energy costs for the covered renewable energy supply by approximately 12.45%, generating approximately $25.3 million in energy cost savings over the initial five-year term.
• These savings support rate stability, customer affordability, and OCPA’s long-term financial sustainability.

Budget and Customer Impact
• This transaction helps convert financial innovation into practical customer value by reducing power supply cost pressure.
• Available net prepayment savings will help support the Board-approved Green Discount Program, allowing OCPA to provide targeted bill relief without relying on unrestricted reserves or increasing net operating costs for the program.
• The Green Discount Program provides an approximate 1% discount below SCE’s equivalent residential generation rates for eligible non-NEM residential customers who select the Green Discount option.

CARE, FERA, and other income-qualified households will be prioritized as administratively feasible. • The program is designed to maintain overall revenue stability and long-term financial sustainability.

Non-power supply operating expenses remain a small portion of OCPA’s overall budget. The FY2026/27 Budget emphasizes disciplined cost management, lean staffing, customer-facing services, regulatory compliance, and investments that support affordability, operational stability, and long-term financial resilience.

OCPA’s Data Management and SCE Service Fees support the customer data, billing, and service infrastructure required to operate a CCA serving approximately 188,000 customer accounts.

Data Management & SCE Service Fees
• Data Management Services: Provided by Calpine, these services include billing data validation, bill coordination with SCE, call center operations, customer enrollment database management, move-in/move-out services, and data reporting. • SCE Services: SCE provides meter reading, data processing, and customer billing-related services as required under the utility billing and service framework. These fees reflect services needed to support customer billing and data exchange. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Data Management Fee $2,607
SCE Service Fee $250
Total Data Management & SCE Service Fees $2,857 1.1%
14 3CE: Central Coast Community Energy; MCE: Marin Clean Energy; CPA: Clean Power Alliance; SDCP: San Diego Community Power; SVCE: Silicon Valley Clean Energy Operating Expenses Highlights:

Data Management & SCE Service Fees
CCA Comparison: Based on a comparison of 3CE, MCE, CPA, SDCP, and SVCE, total data management and SCE service fees range from approximately 0.9% to

1.6% of revenue. OCPA’s projected cost of 1.1% of revenue is within the peer CCA range and equates to approximately $1.27 per customer per month.

Staffing costs include salaries, payroll taxes, employee benefits, and Board member stipends. The FY2026/27 budget includes assumptions for cost-of-living adjustments, approved position recruitment, full-year impacts of existing staff, budgeted merit adjustments, and employee benefit changes.

Proposed Staffing: The FY2026/27 budget maintains the total number of full-time equivalent positions at 29 FTEs, with no proposed increase in total FTEs. The budget also includes 2 intern positions to support operational workload and professional development opportunities.

Key Staffing Assumptions:
• No net increase in authorized FTEs: Total full-time positions remain at 29 for FY2026/27. • Approved position recruitment: Budget assumptions include filling approved or vacant positions as needed to support core finance, data, power resources, communications and outreach, customer programs, regulatory and legislative, and administrative functions.
• Compensation planning: The budget includes cost-of-living adjustment (COLA) and merit assumptions consistent with OCPA’s compensation policies, labor market conditions, and actual performance evaluations. • Lean staffing model: OCPA serves approximately 188,000 customer accounts with 29 FTEs, equal to approximately 6,500 customer accounts per FTE.
• Budget refinement: Staffing projections will be reviewed and refined during the FY2026/27 Mid-Year Budget Update based on actual hiring, vacancies, benefit elections, and expenditures. 15 Operating Expenses Highlights: Staffing Costs and FTE Discipline
Key Notes:

OCPA is maintaining a lean staffing
model with no increase in
authorized full-time positions.

Staffing assumptions are designed
to preserve essential operational
capacity, support regulatory
compliance, manage power supply
and financial risk, and avoid higher
costs that could result from
turnover, vacancies, or overreliance
on outside support.
16 FY2026/27 Budget Assumption – Proposed Organizational Chart Staff proposes adjusting OCPA’s employer contribution for baseline employer-covered medical and vision plan options from 95% to 100%, effective July 2026, for employees and dependents enrolled in those plans. This is an incremental adjustment to OCPA’s existing benefits structure, not a new benefit program, and is intended to support retention, recruitment competitiveness, and organizational stability in a specialized energy-sector labor market.

Market Alignment, Retention, and Cost Control
• Incremental adjustment: OCPA currently provides 95% employer-paid medical and vision coverage. The proposal closes the remaining 5% employee cost-share for OCPA’s baseline employer-covered plan options and aligns more closely with peer CCA practices.
• Relevant labor market comparison: While 100% employer-paid coverage may be less common in the broader private sector, OCPA competes for specialized energy, regulatory, rates, finance, data, and compliance talent with CCAs, utilities, public agencies, and energy-sector organizations. For this reason, CCA and energy-sector benchmarks provide the most relevant comparison for recruitment and retention purposes. • Peer CCA alignment: Mercer’s CCA compensation survey found OCPA’s overall group health benefits were below the CCA median, with its dental ranked 7th out of 7 CCAs before the Board-approved dental enhancement in July 2024. • Not an outlier: Based on the benchmarking reviewed, the proposal is consistent with benefit practices used by comparable CCAs and moves OCPA closer to prevailing CCA market practices rather than above market. • Total compensation context: Benefit comparisons should be considered within total compensation. OCPA does not offer certain benefits commonly available in other public-sector settings, such as CalPERS pension participation, retiree medical benefits, bargaining agreements, or other employer-funded compensation features. The proposed enhancement helps support competitiveness within OCPA’s actual labor market without increasing authorized FTEs. • Retention and continuity: OCPA’s workforce is small and specialized; retaining experienced staff helps reduce recruiting costs, knowledge loss, and reliance on external consultants. 17 Operating Expenses Highlights: Group Health Plan
Enhancement
Key Notes:

The proposed group health plan
enhancement is a targeted marketalignment measure.

The proposal does not increase
authorized FTEs, does not create a
new benefit program, and represents
an estimated incremental FY2026/27
budget impact of approximately
$31,000, or about 0.01% of revenue
and 0.4% of total staffing costs.

Employees would continue to pay any
incremental cost for higher-cost plan
elections, preserving the cost-control
structure.

OCPA proposes to continue providing a Cost-of-Living Adjustment (COLA) for full-time employees, effective January 1, 2027, to help offset inflationary pressures and maintain competitive salary ranges. The adjustment will be based on the April 2026 Consumer Price Index (CPI) for the Los Angeles-Long Beach-Anaheim area, which is 3.7%. If approved, OCPA’s budgetary salary pay ranges will be updated to reflect the COLA.

COLA eligibility will be prorated based on hire date. Full-time employees hired before December 1, 2026, would receive the adjustment on a prorated basis. Employees hired on or after January 1, 2027, would not receive a COLA in this cycle. $ in thousands
Period Ending June 30 FY2026/27 Budget % of total % of rev Salaries $5,708 79.1%
Benefits $1,141 15.8%
COLA $174 2.4%
Board Stipends $119 1.6%
Payroll Taxes $76 1.1%
Total Staffing Costs $7,218 100% 2.8%
Total FTEs 29
Estimated Customer Accounts
per FTE
6,500
18 OCPA maintains 29 FTEs with no increase in authorized full-time positions. Total staffing costs represent 2.8% of revenue, within the peer CCA range of 1.8% to 5.3%, and support a lean staffing model serving approximately 188,000 customer accounts, or about 6,500 accounts per FTE.

Operating Expenses Highlights: Cost-of-Living Adjustments and Staffing Costs OCPA uses specialized external expertise to support essential functions that require technical, regulatory, financial, and energy market knowledge. This approach allows OCPA to maintain a lean staffing model while accessing expertise that may be specialized, time-sensitive, or periodic in nature. Professional contract services support the following areas:
• Energy Procurement and Portfolio Management: Supports power supply portfolio management, new member feasibility studies, scheduling coordination, Congestion Revenue Rights (CRR) purchases and sales, and California Independent System Operator (CAISO) settlements and reporting.
• Financial, Technology, and Other Professional Services: Includes accounting, annual financial audit, credit facility evaluation, rate strategy and cost-of-service study, SCE Energy Resource Recovery Account (ERRA) special assessment, information technology support, cybersecurity services, human resources, and banking services. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Power Supply Portfolio Management and Related $638
Accounting, Auditing, and Banking $375
Scheduling Coordination and Related $287
Rate Strategies and Assessments $287
IT, HR, Cybersecurity, and Other Support $204
Total Professional Contract Services $1,791 0.7%
19 Professional contract services total approximately $1.8 million, or 0.7% of revenue, supporting specialized energy, financial, technology, regulatory, and compliance functions while allowing OCPA to maintain a lean staffing model.

Based on peer CCA budget comparisons, professional contract services range from approximately 0.3% to 3.0% of revenue.

OCPA’s projected professional contract services cost of 0.7% of revenue is within this peer range.

Operating Expenses Highlights: Professional Contract Services Key Notes:

These services allow OCPA
to access specialized, timesensitive expertise without adding permanent staff for
functions that may be
technical, periodic, or
project-specific.

OCPA uses legal and specialized advocacy support to protect the agency’s operations, ensure compliance, support governance, and represent customer interests in regulatory and legislative matters. These services include general and special counsel, power procurement contract review and negotiation, regulatory proceedings, employment and labor matters, governance support, risk and liability management, clerk support, and legislative advocacy.

In FY2026/27, OCPA plans to add Sacramento-based legislative advocacy support to strengthen engagement with the California Legislature and state agencies. This support will help OCPA monitor legislation, provide timely policy insight, and advocate on issues that directly affect customer affordability, rate competitiveness, local energy choice, the Power Charge Indifference Adjustment (PCIA), Resource Adequacy, procurement mandates, and clean energy policy. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
General Counsel $309
Regulatory & Legislative $116
Clerk Support $109
Power Procurement Transactional & Negotiation $105
Labor Related $102
Sacramento Legislative Advocacy Support $50
Total Legal, Compliance & Legislative Advocacy Support Services $791 0.3% Additional In-House Legal FTEs None
20 Based on peer CCA budget comparisons, total legal and advocacy support costs range from approximately 0.1% to 0.4% of revenue. OCPA’s projected cost of 0.3% of revenue is within the peer range, with no additional in-house legal FTEs.

Operating Expenses Highlights: Legal, Compliance &
Legislative Advocacy Support Services
OCPA’s Communications and Outreach budget supports required customer notifications, public education, program awareness, community engagement, and transparent communication with customers and member communities. These activities help ensure residents and businesses understand OCPA’s rates, customer choices, clean energy programs, and role as a locally governed public agency.

For FY2026/27, the budget funds mandatory customer notices, including Joint Rate Comparisons, direct mailers, website and translation support, customer surveys, community outreach, and targeted communications for the Fountain Valley launch. The budget also supports outreach for customer programs, community events, sponsorships, and partnerships that help OCPA provide practical information about available services and benefits.
$ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Customer Communications, Education, Consulting, and Public Outreach $920 Required Notices, Direct Mailers, and Postage $315
Sponsorships and Community Memberships $165
Translation, Website Enhancement, and Annual Survey $143 Customer Materials, Design, and Miscellaneous Outreach Support $49 Total Communications & Outreach $1,592 0.6%
21 Based on peer CCA budget comparisons, communications and outreach costs range from approximately 0.2% to 0.6% of revenue. OCPA’s projected cost of

0.6% of revenue is within the peer range. Communications and Outreach supports required customer notices, rate transparency, multilingual access, program education, community engagement, and Fountain Valley launch preparation.

Operating Expenses Highlights: Communications & Outreach General and Administrative expenses support OCPA’s core public agency operations, financial controls, risk management, technology systems, office operations, and industry participation. These costs include office rent and lease amortization, utilities, insurance, bank and commitment fees, IT equipment and software, office maintenance, subscriptions, supplies, and ordinary business expenses.

G&A expenses also include targeted staff training, professional development, industry engagement, and membership dues for the California Community Choice Association (CalCCA) and the California Community Choice Financing Authority (CCCFA). These memberships support regulatory advocacy, legislative engagement, and financing structures that help OCPA manage long-term power supply costs, strengthen policy representation, and protect customer interests. $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
CalCCA and CCCFA Membership Dues $453
Office Rental and Lease Amortization $227
Bank and Commitment Fees $180
IT Equipment and Software $152
Business Insurance $140
Office Maintenance, Improvements, Supplies, and Utilities $114 Staff Training, Industry Engagement, and Business Travel $175 Board, Public Meeting, and Business Meal Support $40
Other Ordinary Business Expenses $47
Total General & Administrative Expenses $1,528 0.6%
• CalCCA supports CCA advocacy before the California Legislature and regulatory agencies on issues affecting customer affordability, PCIA, Resource Adequacy, and procurement requirements.
• CCCFA supports prepayment financing structures designed to lower long-term power supply costs for participating CCAs. • G&A expenses total approximately $1.5 million, or 0.6% of revenue, supporting core operations, financial controls, risk management, IT systems, industry advocacy, and green prepayment bond administration. OCPA’s projected G&A cost remains within the peer CCA range of 0.4% to 1.6% of revenue. 22 Operating Expenses Highlights: General & Administrative Expenses
OCPA is committed to reinvesting in the community through customer programs that support affordability, energy efficiency, clean energy access, and measurable local benefits. These programs are designed to respond to the needs of households, renters, small businesses, multifamily communities, and cost-sensitive customers.

Building on priorities identified through OCPA’s Community Power Plan (CPP) process, FY2026/27 programs will focus on practical customer benefits, including targeted bill relief, energy efficiency improvements, customer education, workforce development, and community grants.

Green Discount Program: Provides targeted bill relief for eligible non-NEM residential customers who select the Green Discount option, with an approximate 1% discount below SCE’s equivalent residential generation rates. Program participation will be supported by available net prepayment savings, with CARE, FERA, and other income-qualified households prioritized as administratively feasible. 23 $ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Green Discount Program, Targeted Bill Relief $1,000
Energy Efficiency Programs:

Renter $545
Residential $263
Multifamily Housing $235
Small Business $45
OC Bright Futures Grant $100
OCPA Marketplace, Incentive Finder, and Build Smart Trailer $16 Total Customer Programs $2,204 0.8%
Based on peer CCA budget comparisons, customer program costs range from approximately 1.1% to 3.6% of revenue. OCPA’s projected customer program budget of 0.8% of revenue remains below this peer range while funding targeted affordability, energy efficiency, and community benefit programs.

Operating Expenses Highlights: Customer Programs,
Targeted Bill Relief, and Incentives
OCPA participates in several state-, federal-, and utility-funded programs that support under-resourced communities and provide customer energy benefits. The FY2026/27 budgeted program income fully offsets eligible program costs, resulting in no net budget impact to OCPA.

Equitable Building Decarbonization Direct Install (EBD-DI): A California Energy Commission statewide initiative supporting allelectric appliances, energy efficiency measures, and weatherization upgrades for low-income households in under-resourced communities.

OCPA’s role includes outreach, participant handoffs, follow-up surveys, and program reporting.

OCPA Clean Energy Access (CEA) Program: OCPA’s locally branded Disadvantaged Community Green Tariff (DAC-GT) Program is a CPUC-approved program designed to provide eligible low-income residential customers in disadvantaged communities with clean energy benefits. Participants would receive 100% solar energy and an additional 20% bill discount. When combined with CARE or FERA discounts, qualified customers could save more than 50% on their monthly electric bill.

SoCal REN Program: The Southern California Regional Energy Network, a service of the County of Los Angeles, helps public agencies, households, multifamily properties, and small businesses access energy efficiency opportunities that reduce energy use and lower costs. 24 FY2026/27 Budget Income
($ in thousands)
Costs
($ in thousands)
Net Impact
($ in thousands)
EBD-DI Program $89 ($89) $0
CEA Program $291 ($291) $0
SoCal REN Program $105 ($105) $0
Total $485 ($485) $0
Operating Expenses Highlights: State, Federal, and UtilityFunded Programs All three programs are externally funded and fully reimbursable, allowing OCPA to deliver targeted benefits to under-resourced communities without increasing net operating costs.

Debt service includes interest costs on OCPA’s loan from the City of Irvine, which is scheduled to be fully paid off by January 2027, as well as imputed interest related to OCPA’s office lease. Lease-related interest is calculated in accordance with Governmental Accounting Standards Board (GASB) Statement No. 87, which requires lease obligations to be recognized over the lease term.
$ in thousands
Period Ending June 30 FY2026/27 Budget % of rev
Interest Costs, City of Irvine Loan, Scheduled Payoff January 2027 $107 Interest Costs, OCPA Office Lease $43
Total Debt Service $150 0.1%
25 CCA Comparison: Based on peer CCA budget comparisons, debt service costs range from approximately 0.1% to 0.4% of revenue. OCPA’s projected debt service cost of 0.1% of revenue is at the low end of the peer range, and the City of Irvine loan is scheduled to be fully paid off by January 2027.

Non-Operating Expenses Highlights: Debt Service
26 5-Year OCPA Financial Proforma
FY2026/27 to 2031/32
($ in thousands)
Period Ending Jun 30
Reforecast
FY2025/26 % of Rev
Budget
FY2026/27 % of Rev
Projection
FY2027/28 % of Rev
Projection
FY2028/29 % of Rev
Projection
FY2029/30 % of Rev
Projection
FY2030/31 % of Rev
Projection
FY2031/32 % of Rev

REVENUE AND OTHER SOURCES
Revenue - Electricity Base 241,675 87.2% 254,504 97.7% 265,722 97.3% 264,161 97.3% 267,441 97.3% 263,251 97.1% 269,742 97.2% Revenue - Smart Choice Premium 7,306 2.6% 6,233 2.4% 4,881 1.8% 4,878 1.8% 4,960 1.8% 5,041 1.9% 5,129 1.8% Revenue - 100% Renewable Premium 259 0.1% 2,412 0.9% 5,360 2.0% 5,438 2.0% 5,525 2.0% 5,609 2.1% 5,701 2.1% Less: Uncollectible Accounts (3,739) (1.5%) (3,947) (1.5%) (4,139) (1.5%) (4,117) (1.5%) (4,169) (1.5%) (4,109) (1.5%) (4,209) (1.5%) Revenue deferral 30,000 0 0 0 0 0 0
Net Revenue - Electricity 275,500 99.4% 259,201 99.5% 271,824 99.6% 270,359 99.6% 273,757 99.6% 269,792 99.6% 276,363 99.6% Investment and Miscellaneous Income 1,592 0.6% 1,200 0.5% 1,200 0.4% 1,200 0.4% 1,200 0.4% 1,200 0.4% 1,200 0.4% Total Net Revenue and Other Sources 277,093 100.0% 260,401 100.0% 273,024 100.0% 271,559 100.0% 274,957 100.0% 270,992 100.0% 277,563 100.0%

EXPENDITURES AND OTHER USES

CURRENT EXPENDITURES
Cost of Energy 262,837 94.9% 228,169 87.6% 226,023 82.8% 229,737 84.6% 235,578 85.7% 244,074 90.1% 251,237 90.5% Data Manager 2,220 0.8% 2,607 1.0% 2,849 1.0% 2,949 1.1% 3,052 1.1% 3,159 1.2% 3,270 1.2% Utilities Service Fees 270 0.1% 250 0.1% 260 0.1% 267 0.1% 275 0.1% 284 0.1% 292 0.1% Staffing Costs 5,295 1.9% 7,218 2.8% 8,102 3.0% 8,516 3.1% 8,942 3.3% 9,389 3.5% 9,858 3.6% Contract Services 1,446 0.5% 1,791 0.7% 1,845 0.7% 1,724 0.6% 1,754 0.6% 1,784 0.7% 1,815 0.7% Legal Services 663 0.2% 791 0.3% 828 0.3% 866 0.3% 866 0.3% 866 0.3% 866 0.3% Communications and Outreach 1,397 0.5% 1,592 0.6% 1,688 0.6% 1,769 0.7% 1,855 0.7% 1,945 0.7% 2,039 0.7% Other G&A 1,272 0.5% 1,528 0.6% 1,477 0.5% 1,510 0.6% 1,538 0.6% 1,569 0.6% 1,601 0.6% Energy Programs 976 0.4% 2,204 0.8% 1,204 0.4% 1,204 0.4% 1,204 0.4% 1,204 0.4% 1,204 0.4% 276,376 99.7% 246,149 94.5% 244,277 89.5% 248,543 91.5% 255,064 92.8% 264,273 97.5% 272,183 98.1%

NON-OPERATING EXPENDITURES
Interest costs - nonoperating 311 0.1% 150 0.1% 35 0.0% 26 0.0% 16 0.0% 5 0.0% 5 0.0% Total Expenditures and Other Uses 276,688 99.9% 246,299 94.6% 244,311 89.5% 248,569 91.5% 255,079 92.8% 264,278 97.5% 272,188 98.1% Net Income Surplus/(Deficit) 405 0.1% 14,102 5.4% 28,712 10.5% 22,991 8.5% 19,877 7.2% 6,714 2.5% 5,375 1.9% Reserve Balance:

Carryover balance 45,014 16.2% 45,420 17.4% 59,521 21.8% 88,234 32.5% 111,224 40.5% 131,102 48.4% 137,816 49.7% Net Income Surplus/(Deficit) 405 0.1% 14,102 5.4% 28,712 10.5% 22,991 8.5% 19,877 7.2% 6,714 2.5% 5,375 1.9% Ending balance 45,420 59,521 88,234 111,224 131,102 137,816 143,191 % of operating expenses 16% 24% 36% 45% 51% 52% 53%
Below Target Below Target Below Target Below Target Above Target 27 SCE PCIA/Gen
rates uncertainty
Power prices are near
record high levels, volatile
market, scare RA supply
during summer months
Customer defaults,
collateral postings
Regulatory & legislative
uncertainty, central buyer,
direct access, PSPS
Rate increases will
ultimately impact
IOU
RATES
POWER
SUPPLY
JOLTS

CUSTOMER

PAYMENTS

REG & LEG
ISSUES
RATE

AFFORDABILITY
OCPA Operating Reserves
OCPA maintains operating reserves to absorb key financial and operating risks, including:

Utility generation
rate and PCIA
volatility
Power market volatility and
Resource Adequacy cost
pressure
Customer payment
risk during economic
downturns
Regulatory and
legislative uncertainty
Energy price
increases may
impact usage,
electrification, and
customer retention
Possibility of incurring
significant financial risks

CHANGES IN
MEMBER

PARTICIPATION
FY26/27 Projected Reserve
$60mil or 24% by 6/30/2027
Reserve Rebuilding Target
$76mil or 30% by 12/31/2027
$125mil or 49% by 12/31/2029
28 OCPA’s five-year financial outlook shows a disciplined reserve rebuilding path while maintaining stable operations and supporting customer affordability. The reserve strategy is designed to strengthen OCPA’s ability to manage external risks, maintain liquidity, support power procurement, and prepare for future credit rating evaluation.

OCPA is projected to reach approximately $76 million in reserves, or 30% of total operating expenses, by December 31, 2027, and approximately $125 million in reserves, or approximately 49% of total operating expenses, by December 31, 2029. This reserve rebuilding path supports long-term financial sustainability, customer affordability, credit rating readiness, and cost-effective power procurement.
5-Year Financial Outlook and Reserve Rebuilding Plan
Projected Revenue Stability and Reserve Growth
Key Notes:

OCPA is projected to meet the
Board’s minimum reserve target
by December 31, 2027, and
approach the upper end of the
reserve target range by
December 31, 2029. This
supports financial resilience,
customer affordability, credit
rating readiness, and costeffective power procurement.

Established in November 2020 as a Joint Powers Authority, OCPA is a locally governed, not-forprofit public agency that provides electric generation services to customers in Buena Park, Fullerton, and Irvine through California’s Community Choice Aggregation model. Fountain Valley is scheduled to begin receiving service through OCPA in April 2027.

OCPA procures electricity generation on behalf of customers, while SCE continues transmission, distribution, metering, and billing services. OCPA’s work focuses on cleaner energy, customer affordability, local control, rate stability, customer programs, and long-term financial sustainability.

About OCPA
Councilmember
City of Buena Park
2026 OCPA Board
Susan Sonne
Chair
James Mai
Vice Chair
Vice Mayor
City of Irvine
Fred Jung
Director
Mayor
City of Fullerton
Glenn Grandis
Director
Councilmember
City of Fountain
Valley
Kathleen Treseder
Director
Councilmember
City of Irvine
Alternates Board Members:

Lamiya Hoque
Vice Mayor
City of Buena Park
William Go
Councilmember
City of Irvine
Shanna Charles
Councilmember
City of Fullerton
Ted Bui
Councilmember
City of Fountain
Valley
Betty Martinez Franco
Councilmember
City of Irvine

MINUTES OF THE

CITY COUNCIL/ SUCCESSOR AGENCY TO THE FOUNTAIN

VALLEY AGENCY

FOR COMMUNITY DEVELOPMENT/ FOUNTAIN VALLEY

HOUSING AUTHORITY
Closed Session 4:00 p.m.

Regular Meeting 6:00 p.m.

Tuesday, June 2, 2026
Council Chambers

CLOSED SESSION
CALL TO ORDER 4:01 p.m.

PUBLIC COMMENTS (Closed Session matters only)

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Miller v. City of Fountain Valley (Claim No. CJP-3055716) No reportable action

2. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Fountain Valley v. Omni Metal Furnishing, Inc.

No reportable action

3. CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: (1 potential case)
No reportable action

4. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Fountain Valley v. Oshkosh Corp., et al USDC Case No. 8:26-cv-01246 No reportable action

OPEN SESSION
CALL TO ORDER 6:21 p.m.

INVOCATION Pastor Chuck McIlhenny

SALUTE TO THE FLAG Council Member Glenn Grandis

CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY/ ROLL CALL Council Members Present: Bui, Constantine, Grandis, Vice Mayor/Vice Chair Harper, Mayor/Chair Cunneen

Absent: None

ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS
None

CITY MANAGER / MAYOR UPDATE
City Manager and Mayor Cunneen provided their update.

PRESENTATIONS
 Advisory Committee for Persons with Disabilities - Fountain Valley School District Special Recognition Awards
Kayla Gulino presented awards to the recipients from the Fountain Valley School District.  Masuda Middle School Student Presentation
The students from Masuda Middle School gave their presentation.

FIRST CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
Vicki Johnson, Mike Rough, Bob Kuisel, David Martinez (Zoom)

CONSENT CALENDAR

1. Receive and File the Draft Minutes of the May 19, 2026 Regular City Council Meeting ACTION: Move to Receive and File the Draft Minutes of the May 19, 2026 Regular City Council Meeting
MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None

ABSTAIN: None

2. Approve the City of Fountain Valley Register of Demands for the period of 5/7/2026 to 5/20/2026
ACTION: Move to Approve the City of Fountain Valley Register of Demands for the period of 5/7/2026 to 5/20/2026
MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

3. Receive and File the Strategic Plan Update for March, 2026 through October, 2026 ACTION: Move to Receive and File the Strategic Plan Update for March, 2026 through October, 2026
MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

4. Item Pulled by Council Member Grandis
Approval of a professional services contract with AP Triton, LLC for a Fire Department Community Risk Assessment, Standards of Cover, and Strategic Plan in a not-to-exceed amount of $94,721, and an appropriation of $90,000 in the Fire Department Fire Supp ACTION: Move to Approve a professional services contract with AP Triton, LLC for a Fire Department Community Risk Assessment, Standards of Cover, and Strategic Plan in a not-to-exceed amount of $94,721, and an appropriation of $90,000 in the Fire Department Fire Suppression
MOTION: Grandis SECOND: Constantine
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

5. Item pulled by Vice Mayor Harper
Annual Military Equipment Report Per California Assembly Bill 481 Public Comment: Dan Stewart
ACTION: Move to approve the Annual Military Equipment Report Per California Assembly Bill 481
MOTION: Harper SECOND: Constantine
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

6. A Resolution Adopting the FY 2026/27 GANN Appropriations Limit ACTION: Move to approve A Resolution Adopting the FY 2026/27 GANN Appropriations Limit
MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

7. Item Pulled by Mayor Cunneen
1) Approve a Resolution to accept a donation from the Fountain Valley Woman's Club in the amount of $8,884.89 for the purchase of one Public Safety Unmanned Aircraft System (UAS) from Advexure; (2) Amend the Capital Replacement Schedule to include the UAS Public Comment: Dan Stewart
ACTION: Move to approve a Resolution to accept a donation from the Fountain Valley Woman's Club in the amount of $8,884.89 for the purchase of one Public Safety Unmanned Aircraft System (UAS) from Advexure; (2) Amend the Capital Replacement Schedule to include the UAS
MOTION: Constantine SECOND: Cunneen
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

PUBLIC HEARINGS

8. Appeal of the Planning Commission’s Denial of Precise Plan No. 577 and Conditional Use Permit No. 1929 and the Planning Commission’s Recommendation that the City Council Deny General Plan Amendment No. 23-01 and Zoning Map Amendment No. 436 Public Hearing Opened: 7:53 p.m.

Karl, Richard Stewman, Minoo Salimi, Tim Oboyle, Anna Katsuki, Mark Mitchell, Dan Stewart, Larry Hadley, Cheryl Brothers, Robert Franklin, Linda Congleton, Serafin Maranan, Perry Clitheroe, Katy Wright, Pilar Mizell, Jason Caruso, Rick Caruso, Laura Hadley, Public hearing Closed: 9:05 p.m.

ACTION: Move to Approve the Denial of Precise Plan No. 577 and Conditional Use Permit No. 1929 and the Planning Commission’s Recommendation that the City Council Deny General Plan Amendment No. 23-01 and Zoning Map Amendment No. 436
MOTION: Grandis SECOND: Cunneen
AYES: Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: Bui

9. Conduct a Public Protest Hearing Regarding a Five-Year Residential Solid Waste Rate Adjustment Schedule, Based on Increased County Disposal Fees Under the WISE Agreement
Public Hearing Opened: 10:18 p.m.

Katy Wright
The City received a total of 7 protest letters
Public hearing Closed: 10: 22 p.m.

ACTION: Move to Adopt an Ordinance of The City Council of the City of Fountain Valley Revising Fountain Valley Municipal Code Section 2.04.200 Regarding the Selection of Mayor and Mayor Pro Tempore
MOTION: Harper SECOND: Bui
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None

ABSTAIN: None

ADMINISTRATIVE ITEMS

10. Amendment and Repeal of Municipal Code Provisions to Ensure Compliance with the California Fair Chance Act
ACTION: Move to Approve an Amendment and Repeal of Municipal Code Provisions to Ensure Compliance with the California Fair Chance Act MOTION: Constantine SECOND: Cunneen
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

11. Accept the bids and award a construction contract to ONYX Paving Company Inc. for the Residential Roadway Rehabilitation Project (City Quadrant B4), Project No. 26002, in the amount not-to-exceed $2,317,000.

ACTION: Move to Accept the bids and award a construction contract to ONYX Paving Company Inc. for the Residential Roadway Rehabilitation Project (City Quadrant B4), Project No. 26002, in the amount not-to-exceed $2,317,000.

MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

12. Approval of the FY 2026/27 Statement of Investment Policy ACTION: Move to Approve the FY 2026/27 Statement of Investment Policy MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

13. Authorization to Issue a Purchase Order to Stryker Sales, LLC for Five (5) LIFEPAK 35 Monitors-Defibrillators with a contingency, Five (5) Years of Warranty/Service Coverage, and

Required Accessory Equipment in the Amount of $318,500
ACTION: Move to Authorize a Purchase Order to Stryker Sales, LLC for Five (5) LIFEPAK 35 Monitors-Defibrillators with a contingency, Five (5) Years of Warranty/Service Coverage, and Required Accessory Equipment in the Amount of $318,500
MOTION: Constantine SECOND: Grandis
AYES: Bui, Constantine, Grandis, Harper, Cunneen
NOES: None
ABSENT: None
ABSTAIN: None

APPOINTMENTS
Appointments to the Civic Center Ad-Hoc Committee
Appointments were made by each Council Member, excluding Mayor Cunneen. The following appointments were as follows:

Council Member Constantine – Prem Balani
Vice Mayor Harper – Kristin Azcona
Council Member Glenn Grandis – Ben Nielsen
Council Member Bui – Angela Hui

COUNCIL MEMBER ITEMS FOR FUTURE CONSIDERATION
Council Member Constantine requested that the City Council consider a festival on the 4th of July with fireworks. There was no second.

Council Member Constantine requested that Items for Future Consideration be placed towards the beginning of the agenda. Second by Council Member Bui
Council Member Grandis requested a walking trail on the Edison Easement near Warner Ave. There was no second as it may be addressed in the Parks Master Plan.

CITY COUNCIL/ SUCCESSOR AGENCY/ HOUSING AUTHORITY/ PUBLIC COMMENTS (Unscheduled Matters Only)
None
CITY COUNCIL/SUCCESSOR AGENCY/HOUSING AUTHORITY AB 1234/GENERAL COMMENTS Mayor Cunneen
May 20 Attended the Mayors Breakfast

May 21 Attended the Zoom meeting with the Japanese Consulate, Vice Consul Anzu Maekawa and City Staff regarding the Sister City Initiative and then a tour of the Orange County Sanitation District
May 25 Attended the Annual Memorial Day Flag Raising Ceremony May 28 Attended the SARFPA Executive Committee meeting
May Attended the
May Attended the
May Attended the
Vice Mayor Harper
May 20 Attended the PCTA Meeting
May 21 Attended the Mobile Source Air Pollution Reduction Committee meeting May 26 Attended the OCTA Board meeting
May 27 Attended the OCCOG Annual Conference
June 1 Attended the OCTA regional Transportation Planning Committee meeting Council Member Grandis
May 20 Attended the FVSD Golf Tournament
May 21 Attended the Community Foundation board meeting
May 25 Attended the Memorial Day Ceremony
May 26 Attended the Civic Center Ad-Hoc Committee interviews May 27 Attended the Boys and Girls Club Gift Giving Party May 28 Attended the OCPA Budget meeting
June 1 Attended the OCPA Marketing and Communications Committee meeting Council Member Constantine
May 20 Flew from Las Vegas, Nevada back to Orange Count, California as my few days representing Fountain Valley at this year’s ICSC (Innovating Cities Serving Communities) Conference had ended. Later, I watched the Mayor’s Breakfast via the City’s Facebook page. The guest speakers were Viet Nguyen, Founder, CEO, and Executive Chef of KEI Concepts and Crystal Vila, Clinical Dietician Supervisor with MemorialCare.

May 21 As the Fountain Valley City Trustee to the Orange County Mosquito and Vector Control Board, participated in the monthly Board Meeting at the Orange County Mosquito and Vector Control District in Garden Grove. Later, as the City of Fountain Valley representative on the Fountain Valley Community Foundation Board, I participated in the monthly Grants, Board, and Volunteer Meeting at Founders Village Senior and Community Center.

May 23 Near mid-day, visited the emergency shelters in Fountain Valley for the GKN Aerospace hazmat emergency happening in Garden Grove over this Memorial Day weekend. The shelters are hosted by the Red Cross and are at Freedom Hall in Mile Square Park and Los Amigos High School.

May 24 Both in the morning and late afternoon, visited the Freedom Hall, Mile Square Park and Los Amigos emergency shelters in Fountain Valley due to the ongoing hazmat emergency caused by GKN Aerospace in Garden Grove. The Red Cross continues to host them.

May 25 First thing in the morning, stopped in at the emergency shelter for hazmat displaced from their homes at Freedom Hall in Mile Square Park, then participated in the annual City of Fountain Valley and West Orange County Veterans of Foreign Wars (VFW) Post and Auxiliary 9557 Memorial Day Flag Raising Ceremony at Veterans Park. Afterwards, I stopped in at the emergency shelter for those displaced from their homes due to the hazmat emergency situation in Garden Grove by visiting the shelter at Los Amigos High School hosted by the Red Cross. In the evening, I again stopped in at the emergency shelter at Freedom Hall in Mile Square Park.

May 26 Visited the 2 emergency sheets in Fountain Valley at Los Amigos High School and Freedom Hall in Mile Square Park. The Red Cross continues to host them due to the ongoing emergency hazmat situation at GKN Aerospace in Garden Grove. In the afternoon, stopped in to the sober living. Group home hearing for a home on Winthrop Circle. That and the prior that I wasn’t in attendance for, was presided on and permitted by Lisa Mott’s-Patrick. In the evening, I joined my fellow City Council Members at City Hall in interviewing a total of 8 fellow residents. Five were inperson and 3 on Zoom for an Ad Hoc Committee for our Civic Center. Three members of the public sat in on the interviews.

May 28 Mayor Cunneen needed to be in another meeting, so I, as our City’s alternate on the Orange County Public Library LAB Board (Library Advisory Board) at the Orange County Public Library Headquarters in Santa Ana.

May 30 Stopped in the at the Friends of the Fountain Valley Library 25 Cent Book Sale at the Fountain Valley Library. Always lots of happy customers.

May 31 Stopped in at the Pizza Dz Grand Opening event at that restaurant. It has been sold. Later, attended the Fountain Valley Historical Society Annual General Meeting / Election at Heritage Park in which I voted on their slate of Board officers. Big congratulations to Dann Gibb, the new President!
Council Member Bui
No Report

ADJOURN THE MEETING OF THE CITY COUNCIL/SUCCESSOR AGENCY/HOUSING

AUTHORITY
Mayor Cunneen adjourned the meeting at 11:39 p.m.pm to the next Meeting of the Fountain Valley City Council on June 16, 2026 at 6:00 p.m., in the Fountain Valley Council Chambers, 10200 Slater Avenue, Fountain Valley.
__________________________
Jim Cunneen, Mayor

Attest:
___________________________
Rick Miller, City Clerk

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 16, 2026
Members of the City Council
SUBJECT: City of Fountain Valley Register of Demands for the period of 5/21/2026 to 6/3/2026 Three-Year Strategic Goals
☐ Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
☒ Ensure long-term fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities.
☐ Attract and retain quality staff through best practices and trends ☐ Maintain, build, plan for, and modernize infrastructure to support the growth and future needs of the City.
☐ Not applicable

EXECUTIVE SUMMARY
Attached is the Register of Demands for the City of Fountain Valley to be ratified by the City Council.

DISCUSSION
Pursuant to the State of California’s Government Code 37201 through 37210, the Director of Finance or their designated representative hereby certifies to the accuracy of the following demands and to the availability of funds for payment thereof. Demands paid by the city shall be inspected and ratified by the legislative body on the next available Council agenda. The Finance Department has prepared the attached Register of Demands summarizing the City's payments released since the previous City Council meeting.

FINANCIAL ANALYSIS
The attached Register of Demands represents payments made by the City of Fountain Valley between 5/21/2026 and 6/3/2026 for a total of $1,340,070.39.

ATTORNEY REVIEW
The Attorney for the City reviewed this staff report and concurs with the recommended action.

PUBLIC NOTIFICATION
Not applicable.

Register of Demands
June 16, 2026

ALTERNATIVES
Alternative No. 1: Approve the attached Register of Demands.

Alternative No. 2: Do not approve as presented and provide direction to staff.

RECOMMENDATION
Staff recommends Alternative No. 1 to approve the attached Register of Demands representing payments made by the City of Fountain Valley between 5/21/2026 and 6/3/2026 for a total of $1,340,070.39.

Prepared by: Ryan Smith, Finance Director
Reviewed by: Colin Burns, City Attorney
Approved by: Maggie Le, City Manager
Attachment 1: Register of Demands 5/21/2026 to 6/3/2026.

City Of Fountain Valley
Register of Demands
5/21/2026 - 6/3/2026
Department
Check
Date Vendor Description Doc #
Check/ACH
# Amount
10000000 NON-DEPARTMENTAL
05/21/26 U.S. BANK CORPORATE CITY P-CARDS APR 2026 - 4246 0445 5574 3131 50138 6067 47,350.22 05/21/26 MUNICIPAL DENTAL HMO MAY 2026 DELTA DENTAL 50074 6057 1,594.22 05/21/26 AFLAC MAY'26 AFLAC ACCT HH049 50113 2318925 4,559.18 05/21/26 MUNICIPAL DENTAL POO JUN 2026 DELTA DENTAL PPO 50214 2318958 13,030.83 05/21/26 MUNICIPAL DENTAL HMO JUN 2026 DELTA DENTAL HMO 50215 6058 1,594.22 05/28/26 STANDARD INSURANCE C MAY 2026 - VISION ACTIVE 50229 2319011 3,263.56 05/28/26 STANDARD INSURANCE C MAY 2026 - VISION COBRA 50231 2319012 110.24 05/27/26 FOUNTAIN VALLEY POLI PR PPE260522 - DED 8002 50284 6076 2,530.00 05/27/26 FOUNTAIN VALLEY CRED PR PPE260522 - DED 9500 50285 6074 31,924.60 05/27/26 FOUNTAIN VALLEY FIRE PR PPE260522 - DED 8000 50286 6075 3,028.19 05/28/26 EMPOWER/BENEFITS COR PR PPE260522 - DED 7031,7032,7033,7036, 8500- 50287 6073 79,892.25 05/28/26 CALIFORNIA STATE DIS PR PPE260522 - DED 6004, 6005, 6007, 6015 50288 6070 1,346.65 05/28/26 FRANCHISE TAX BOARD ACCT# 20084Y320241 - 5/28/26 50289 2318995 185.45 05/27/26 MISSION SQUARE RET P PLAN #803216 - PR PPE260522 - DED 2013, 2015 50290 6081 3,121.20 05/27/26 MISSION SQUARE RET P PLAN #800389 - PR PPE260522 - DED 2011, 2012 50291 6082 1,789.84 05/27/26 MISSION SQUARE RET P PLAN #800414 - PR PPE260522 - DED 2014 50292 6083 226.75 05/27/26 MISSION SQUARE RET P PLAN #108536 - PR PPE260522 - DED 2018 50293 6084 576.90 05/27/26 U.S. BANK N.A. PR PPE260522 - DED 7029, 7030 50294 6086 2,504.97 05/27/26 FVPOA PAC PR PPE260522 - DED 8005 50295 6077 465.00 05/28/26 INTERNAL REVENUE SER PR PPE260522 - DED 1100, 3000 50296 6071 185,911.79 05/28/26 EMPLOYMENT DEVELOPME PR PPE260522 - DED 4000 50297 6072 62,417.68 05/27/26 PORAC RETIREE MEDIC PR PPE260522 - DED 2017 50298 6085 3,184.58 05/27/26 INTERNATIONAL BRO PR PPE260522 - DED 8003 50299 6078 475.00 05/27/26 INTERNATIONAL BRO PR PPE260522 - DED 8004 50300 6079 500.00 05/27/26 INTERNATIONAL BRO PR PPE260522 - DED 8001 50301 6080 775.00 TOTAL NON-DEPARTMENTAL 452,358.32
10000010 NON-DEPARTMENTAL
05/21/26 MUNICIPAL DENTAL HMO MAY 2026 DELTA DENTAL 50074 6057 394.28 05/21/26 MUNICIPAL DENTAL POO JUN 2026 DELTA DENTAL PPO 50214 2318958 11,785.52 05/21/26 MUNICIPAL DENTAL HMO JUN 2026 DELTA DENTAL HMO 50215 6058 394.28 TOTAL NON-DEPARTMENTAL 12,574.08
10010100 CITY COUNCIL
05/28/26 CUNNEEN, JAMES 2026 SCAG CONFERENCE LODGING, MILEAGE 50261 6092 918.47 05/28/26 HARPER, PATRICK 2026 SCAG CONFERENCE LODGING, MILEAGE 50262 6097 520.16 TOTAL CITY COUNCIL 1,438.63
10010102 LEGAL SERVICES
05/28/26 HARPER AND BURNS, LL APR 2026 - CITY LEGAL SERVICES 50146 6096 42,735.70

TOTAL LEGAL SERVICES 42,735.70
10010103 OFFICE OF CITY MANAGER
05/28/26 SISTER CITIES INTERN SISTER CITY ANNUAL MEMBERSHIP 49505 6102 810.00 05/28/26 ORANGE COUNTY BUSIN OC BUSINESS COUNCIL ANNUAL DUES 50263 6100 5,000.00 05/28/26 LE-NGUYEN, MAGGIE SCAG ANNUAL CONFERENCE LODGING, MEALS 50260 6099 537.50 TOTAL OFFICE OF CITY MANAGER 6,347.50
10020200 HUMAN RESOURCES
05/21/26 CONCENTRA MEDICAL CE 05/04/2026 HR OCCUPATIONAL MEDICAL 50094 2318941 471.10 05/21/26 CONCENTRA MEDICAL CE 05/06 - 05/07/26 HR OCCUPATIONAL MEDICAL 50096 2318942 63.75 05/21/26 STERLING HEALTH SERV APR 2026 FSA ADMIN FEES 50120 6063 105.00 05/21/26 BREELER, DAMON TUITION REIMBURSEMENT (ORG 430) 50121 6039 900.00 TOTAL HUMAN RESOURCES 1,539.85
10030300 PLANNING
05/21/26 STRADLING YOCCA CARL LEGAL SERVICES-PLANNING-AFFORDABLE 50150 2318975 1,265.00 05/21/26 AT&T MOBILITY 4/27-5/26/26 CELL PHONES/IPADS 49832 2318928 45.72 05/28/26 KLING CONSULTING GRO APRIL 2026 SOILS RVW CONSULTING SVCS 23- 50264 2318997 900.00 05/28/26 KLING CONSULTING GRO APRIL 2026 SOILS RVW CONSULTING SVCS 24- 50265 2318997 1,200.00 05/28/26 KLING CONSULTING GRO APRIL 2026 SOILS RVW CONSULTING SVCS 26- 50266 2318997 850.00 05/28/26 KLING CONSULTING GRO APRIL 2026 SOILS RVW CONSULTING SVCS 26- 50267 2318997 850.00 05/21/26 STRADLING YOCCA CARL LEGAL SERVICES-PLANNING-AFFORDABLE 50154 2318975 5,830.00 05/21/26 MICHAEL BAKER INTERN 4/7-5/3/26 PROFESSIONAL CONTRACT PLANNER 50075 6055 6,272.00 05/21/26 RINCON CONSULTANTS ENVIRONMENTAL SVCS FOR 8550 WARNER AVE 50198 6059 964.00 TOTAL PLANNING 18,176.72
10030301 BUILDING & SAFETY
05/28/26 VCA CODE MARCH 2026 BUILDING PLAN RVW AND 48898 6106 6,952.50 05/28/26 TRUE NORTH COMPLIANC MARCH 2026 BUILDING PLAN RVW AND 48918 6105 10,067.50 05/28/26 TRUE NORTH COMPLIANC MAR 2026 BUILDING PLAN RVW AND STAFFING 48919 6105 2,890.00 05/28/26 VCA CODE APRIL 2026 BUILDING PLAN RVW AND STAFFING 49951 6106 9,213.75 05/28/26 TRUE NORTH COMPLIANC MAY 2026 BUILDING PLAN RVW AND STAFFING 50092 6105 17,377.50 05/28/26 TRUE NORTH COMPLIANC APRIL 2026 BUILDING PLAN RVW AND STAFFING 50093 6105 2,244.00 05/28/26 AMAZON CLIPBOARD-DOGGETT 50105 6087 21.74
TOTAL BUILDING & SAFETY 48,766.99
10030305 ECONOMIC DEVELOPMENT
05/21/26 COSTAR REALTY INFORM 5/1-5/31/26 REAL ESTATE SEARCH SERVICES 49831 2318943 432.91 05/28/26 DADABHOY, OMAR ICS CONFERENCE 5/17-5/20/26 50307 6093 158.13 TOTAL ECONOMIC DEVELOPMENT 591.04
10040400 FINANCE
05/21/26 SECTRAN SECURITY INC APR 2026 ARMORED SERVICES 50149 6061 366.99 05/21/26 RAMS, LLP FY 2025/26 AUDIT SERVICES THRU APR 2026 50095 2318961 11,100.00 05/21/26 SECTRAN SECURITY INC MAY 2026 ARMORED SERVICES 50153 6061 372.49 TOTAL FINANCE 11,839.48
10040401 PURCHASING
05/21/26 AMAZON 202601 OFFICE SUPPLIES: LOCK BAGS, NAME 50007 6038 172.56 TOTAL PURCHASING 172.56
10050500 ENGINEERING

05/28/26 HOSSEIN PREP RFP TS MAINTENANCE SERVICES 75% 50305 6098 2,625.00 TOTAL ENGINEERING 2,625.00
10050501 TRAFFIC ENGINEERING
05/21/26 AMAZON MAY 2026 - PW ENG OFFICE SUPPLIES 50028 6038 83.94 TOTAL TRAFFIC ENGINEERING 83.94
10050502 CONTSRUCTION INSP
06/03/26 TRAN YEN REFUND 21002 - PUBLIC IMPROVEMENT 37413 2319020 1,509.00 06/03/26 DONG, ANDREW REFUND INV #22899 PUBLIC IMPROVEMENT 39710 2319018 1,433.55 06/03/26 AN NGUYEN REFUND INV #23404 - PUBLIC IMPROVEMENT 39719 2319017 1,433.55 05/21/26 AMAZON MAY 2026 - PW ENG OFFICE SUPPLIES 50199 6038 30.44 TOTAL CONTSRUCTION INSP 4,406.54
10050503 STREET LIGHTING
05/21/26 YUNEX, LLC APR 2026 - T.S. MAINTENANCE 50223 6069 3,235.24 05/21/26 YUNEX, LLC APR 2026 - T.S. CALL OUTS 50224 6069 2,068.59 06/03/26 SO CALIF EDISON CO 3/26-4/26/26 - TS ELECTRICITY 50226 2319019 6,217.00 TOTAL STREET LIGHTING 11,520.83
10050550 RIGHTS-OF-WAY
05/21/26 SAKIOKA WHOLESALE NU PLANT REPLACEMENT-WARD ST. 49658 2318968 327.75 TOTAL RIGHTS-OF-WAY 327.75
10050551 TREE MAINTENANCE
05/21/26 GREAT SCOTT TREE SER 2026 E-5 TREE MAINTENANCE SERVICES 50181 6046 1,519.60 05/21/26 GREAT SCOTT TREE SER 2026 FICUS TREE MAINTENANCE SERVICES 50062 6046 6,129.60 05/21/26 GREAT SCOTT TREE SER 2026 SENIOR CENTER TREE MAINTENANCE 50182 6046 4,584.12 05/21/26 GREAT SCOTT TREE SER 2026 CROWN REDUCTION EXTRA WORK 50055 6046 2,073.72 05/21/26 GREAT SCOTT TREE SER 2026 HARPER PARK TREE MAINTENANCE 50059 6046 9,770.08 05/21/26 GREAT SCOTT TREE SER 2026 NATURE TRAIL TREE MAINTENANCE 50061 6046 3,419.10 05/21/26 GREAT SCOTT TREE SER 2026 MEXICAN PALM TREE MAINTENANCE 50058 6046 1,730.01 05/21/26 GREAT SCOTT TREE SER 2026 FIRE STATION #2 EXTRA WORK 50056 6046 2,063.41 05/21/26 GREAT SCOTT TREE SER 2026 COURREGES PARK TREE MAINTENANCE 50057 6046 2,707.54 05/21/26 GREAT SCOTT TREE SER 2026 COURREGES PARK TREE MAINTENANCE 50060 6046 3,408.24 05/21/26 GREAT SCOTT TREE SER 2026 REMOVALS AT SENIOR CENTER TREE 50183 6046 1,276.31 TOTAL TREE MAINTENANCE 38,681.73
10050552 PARK MAINTENANCE
05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 25.11 05/21/26 BEE BUSTERS, INC. BEES AT COLONY PARK'S IRRIGATION BOX 50143 2318932 195.00 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 25.11 05/21/26 HERITAGE LANDSCAPE SPRINKLERS, PVC FITTINGS FOR PARKS 50069 2318954 1,912.01 05/21/26 ALAN'S LAWNMOWER & G SPARK PLUGS REPLACEMENT FOR TRIMMER 50070 2318926 293.62 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 25.11 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 25.11 05/28/26 SO CALIF EDISON CO 04/22/26 to 05/20/26 MCDOWELL PARK (OAK ST) 50272 2319007 15.00 TOTAL PARK MAINTENANCE 2,516.07
10050553 CONCRETE MAINTENANCE
05/21/26 S C SIGNS SUPPLIES OVERHEAD STREET NAME SIGN 50141 2318967 1,939.50 05/28/26 AMAZON PREMASK TRANSFER TAPE 50247 6087 66.33

TOTAL CONCRETE MAINTENANCE 2,005.83
10050554 PAVEMENT MAINTENANCE
05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 40.44 05/21/26 S C SIGNS SUPPLIES K-MARKER EPOXY 49827 2318967 1,118.45 05/21/26 HANSON AGGREGATES, L CLASS ii BASE-WATER/STREETS 50072 2318953 830.47 05/21/26 VULCAN MATERIAL COMP HOT MIX-WATER REPAIR 49834 2318982 511.70 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 40.44 05/28/26 RED WING BUSINESS AD SAFETY BOOTS-E.S. 50242 2319004 265.00 05/21/26 HANSON AGGREGATES, L BASE-STREETS/WATER 50142 2318953 863.70 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 170.04 05/21/26 S C SIGNS SUPPLIES STREET SIGN BLANKS 50144 2318967 310.32 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 134.48 TOTAL PAVEMENT MAINTENANCE 4,285.04
10050555 STORM DRAIN MAINT
05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 13.81 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 13.81 05/21/26 SO CALIF GAS CO 4/3/26-5/4/526 WALNUT PUMP STATION 50118 2318972 37.06 05/21/26 SO CALIF GAS CO 4/6/26-5/5/26 SANDALWOOD PUMP STATION 50108 2318972 18.25 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 13.81 05/21/26 FUSCOE ENGINEERING APR 2026 - MS4 AUDIT PREPARATION 50197 6044 44.81 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 13.81 05/21/26 WILLDAN ENGINEERING THRU 5/01/26 - WQMP HYDRO REVIEWS 16300 50117 2318983 774.00 05/28/26 SO CALIF EDISON CO 4/20/26 to 05/18/26 SANDLEWOOD PUMP 50274 2319009 541.70 TOTAL STORM DRAIN MAINT 1,471.06
10050558 RECREATION CENTER
05/21/26 MERCHANTS LANDSCAPE 3/2026 SPORTS PARK LANDSCAPE MAINT 49853 6054 42,618.77 05/21/26 MERCHANTS LANDSCAPE 2/2026 FERTIGATION SPORTS PARK 49854 6054 1,162.33 05/21/26 HERITAGE LANDSCAPE TOOLS FOR PLANTING-SPORTS PARK 50068 2318954 1,984.12 05/21/26 DEVIL MOUNTAIN WHOLE SPORTS PARK PLANTING 50145 6041 1,087.50 TOTAL RECREATION CENTER 46,852.72
10060600 FIRE SUPPRESSION
05/28/26 PURETEC INDUSTRIAL W DEIONIZED WATER SYSTEM STATION 1 50205 2319003 137.75 05/28/26 PURETEC INDUSTRIAL W DEIONIZED WATER SYSTEM STATION 2 50206 2319003 137.75 05/28/26 AMAZON IPHONE SCREEN PROTECTOR 50208 6087 10.32 05/28/26 METRO CITIES FIRE AU ELECTRONIC DAILY STATUS REPORT (e-DSR) 50209 2319000 3,000.00 05/28/26 AMAZON VINYL PAPER FOR VINYL PRINTER 50211 6087 17.38 05/28/26 AT&T MOBILITY 4.9.26-5.8.26 BACK UP CELLS/IPAD 50213 2318988 919.36 05/28/26 AMAZON SAW BLADES 50228 6087 93.23
05/28/26 AT&T MOBILITY 4.9.26-5.8.26 50257 2318990 96.01 TOTAL FIRE SUPPRESSION 4,411.80
10060602 AMBULANCE SERVICES
05/28/26 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 50202 6089 616.38 05/28/26 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 50203 6089 290.69 05/28/26 BOUND TREE MEDICAL FIRST AID/MEDICAL SUPPLIES 50204 6089 131.36 05/28/26 AT&T MOBILITY 4.9.26-5.8.26 AMBULANCE CELL PHONE 50254 2318989 45.48

TOTAL AMBULANCE SERVICES 1,083.91
10060603 FIRE PREVENTION
05/28/26 VCA CODE 4.1.26-4.30.26 FIRE PLAN CHECKS 50210 6106 2,546.50 05/28/26 GRM INFORMATION MANA 4.1.26-4.30.26 FIRE FILE STORAGE 50212 6095 9.31 05/28/26 AT&T MOBILITY 4.9.26-5.8.26 50257 2318990 96.01 TOTAL FIRE PREVENTION 2,651.82
10060605 DISASTER PREPAREDNESS
05/28/26 AT&T MOBILITY 4.9.26-5.8.26 50257 2318990 45.48 TOTAL DISASTER PREPAREDNESS 45.48
10070700 PATROL
05/21/26 AT&T MOBILITY 3/27/26-4/26/26 DEPARTMENT CELL PHONES 50086 2318929 3,574.88 TOTAL PATROL 3,574.88
10070701 INVESTIGATION
05/21/26 THOMSON REUTERS WEST APRIL 2026 - PUBLIC RECORD SEARCHES 50133 2318977 655.00 05/21/26 DEPARTMENT OF JUSTIC APRIL 2026 - LIVE SCANS 50124 2318947 130.00 TOTAL INVESTIGATION 785.00
10070702 TRAFFIC
05/21/26 ALL CITY MANAGEMENT 4/26/26-5/9/26 CROSSING GUARDS 50135 6037 11,333.36 TOTAL TRAFFIC 11,333.36
10070703 CANINE
05/21/26 COMMUNITY VETERINARY BOARDING 5/9/26-5/10/26 50085 2318940 159.00 TOTAL CANINE 159.00
10070705 L.E. COMMUNICATIONS
05/21/26 COUNTY OF ORANGE ARC ADAPTERS FOR MOTOR HELMETS (2) 50134 2318944 475.20 05/21/26 RUSS BASSETT CORP DISPATCH DESK MOTOR 50081 2318966 657.38 TOTAL L.E. COMMUNICATIONS 1,132.58
10070707 CRIME PREVENTION
05/21/26 AMAZON CRIME PREVENTION SUPPLIES 50083 6038 54.36 TOTAL CRIME PREVENTION 54.36
10070708 RANGE
05/21/26 AMAZON CREDIT MEMO - BATTERY RETURN 50079 6038 (21.74) 05/21/26 AMAZON CREDIT MEMO - BATTERY RETURN 50080 6038 (21.74) 05/21/26 CITY OF WESTMINSTER RANGE USE - 3/5, 3/13, 3/17/26 50129 2318939 1,845.00 TOTAL RANGE 1,801.52
10070800 ANIMAL CARE SVCS
05/21/26 COUNTY OF ORANGE 1/1/26 - 3/31/26 ANIMAL CARE SERVICES 50131 2318944 150,017.68 TOTAL ANIMAL CARE SVCS 150,017.68
10080801 ATHLETICS
05/28/26 D&B UMPIRES UMPIRE FEES FOR GAMES SCHEDULED 5/6/26- 50251 2318992 1,194.00 TOTAL ATHLETICS 1,194.00
10080802 FIELD OPERATIONS
05/28/26 SPORTS FACILITIES GR BASE ANCHORS, CHALKERS,BAT BOX

50245 2319010 2,365.65
TOTAL FIELD OPERATIONS 2,365.65
10080810 SENIOR & COMM CENTER
05/21/26 AMAZON OFFICE SUPPLIES 49506 6038 98.18

05/21/26 AMAZON OFFICE SUPPLIES 49508 6038 18.77
05/21/26 AMAZON SPECIAL EVENT SUPPLIES FOR VOLUNTEER 49509 6038 65.21 05/21/26 AMAZON HDMI CABLE CHORD 49511 6038 13.04
05/21/26 VERIZON WIRELESS April 2 - May 1, 2026 SC CELL 50196 2318981 85.03 05/21/26 ULINE SLIP RESISTANT MATS 50166 2318978 313.27 05/21/26 AMAZON SANITIZER 50167 6038 187.25
05/21/26 TIMELESS MELODIES TIMELESS MELODIES SENIOR CENTER MAY 50190 6065 150.00 05/21/26 AMAZON AMAZON OFFICE SUPPLIES SENIOR CENTER 50191 6038 76.72 05/21/26 AMAZON AMAZON OFFICE SUPPLIES FOR SENIOR

50192 6038 27.18
05/21/26 AMAZON REFUND FOR AMAZON WALL FILE 50193 6038 (16.27) 05/21/26 AMAZON AMAZON OFFICE SUPPLIES SENIOR CENTER 50194 6038 70.56 05/21/26 LEI JES CATERING VIVA LAS LUNCHEON SENIOR CENTER MAY 50189 6052 1,146.46 TOTAL SENIOR & COMM CENTER 2,235.40
10080811 SENIOR TRANSPORTATION
05/28/26 4IMPRINT, INC HOP ON SENIOR EXPO MERCHANDISE MAY 50195 2318985 2,269.48 TOTAL SENIOR TRANSPORTATION 2,269.48
10080820 CONTRACT CLASSES
05/21/26 REC SVCS REFUND FULL REFUND 423023-A2 50076 2318962 81.00 05/21/26 REC SVCS REFUND FULL REFUND 432031-A2 50087 2318963 52.00 05/21/26 WARDECKI, CARRIE L. INSTRUCTOR PAYMENT 101682 50090 6068 887.25 05/21/26 SOUTHWEST OFFSET PRI FOUNTAIN PEN VENDOR FISCAL YEAR 2025- 50116 2318974 9,142.78 05/28/26 COM SVCS REFUND REFUND ON INTEGRAL TAI CHI 50271 2318991 24.00 05/28/26 REFUND ONE-TIME REFUND FOR TABLE TENNIS TOURNAMENT 50270 2319005 7.00 TOTAL CONTRACT CLASSES 10,194.03
10093001 P&B PROJECTS (NON-RECURRING)
05/28/26 THE PLANNING CENTER APR 2026 GENERAL PLAN UPDATE OBJ DESIGN 50174 2319014 2,292.63

TOTAL P&B PROJECTS (NON-

2,292.63
10098001 GENERAL FUND
05/28/26 RHA LANDSCAPE PARKS & COMMUNITY SERVICES MASTER PLAN 50268 2319006 35,700.00 TOTAL GENERAL FUND 35,700.00
11000000 ISF INFORMATION PROCESSING
06/03/26 DONG, ANDREW REFUND INV #22899 PUBLIC IMPROVEMENT 39710 2319018 75.45 06/03/26 AN NGUYEN REFUND INV #23404 - PUBLIC IMPROVEMENT 39719 2319017 75.45 05/21/26 IMPEX TECHNOLOGIES, NUTANIX RENEWAL 5/26-5/27 49860 6049 45,439.66 TOTAL ISF INFORMATION PROCESSING 45,590.56
11010050 ISF IS ADMIN CAPITAL
05/28/26 LEXIPOL LLC SINGLE SIGN ON 8/1/25 - 7/31/26 50276 2318998 1,040.00 05/28/26 LEXIPOL LLC FIRE FOCUS IMPLEMENTATION 1/1/26-12/31/26 50275 2318998 4,487.85 05/21/26 CITYTECH SOLUTIONS, CITYTECH TYLER MUNIS INTEGRATION 50% 50008 6040 4,650.00 05/21/26 ADVANCED OFFICE / IN RICOH LEASED 24 - US BANK 4/15 - 5/15/26 49663 2318924 4,235.12 05/21/26 KNOWBE4, INC KNOWBE4 RENEWAL 4/11/26-4/10/27 50188 6051 11,826.00 05/21/26 NMK CORPORATION PALO ALTO PRISMA AND LOGGING 49837 2318959 34,963.87 05/21/26 IMPEX TECHNOLOGIES, NUTANIX RENEWAL 5/26-5/27 49860 6049 4,130.88 05/21/26 CHARTER COMMUNICATIO 5/1 - 5/30/26 CH FIBER 50123 2318934 2,147.81 05/21/26 CHARTER COMMUNICATIO 5/1 - 5/31/26 PD CABLE TV 50125 2318935 111.97

05/21/26 CHARTER COMMUNICATIO 5/1 - 5/31/26 PD CABLE TV 50201 2318937 175.35 05/28/26 AT&T MOBILITY 4.9.26-5.8.26 BACK UP CELLS/IPAD 50213 2318988 2,322.09 TOTAL ISF IS ADMIN CAPITAL 70,090.94
11110000 ISF GB CITY HALL
05/21/26 SIGN DESIGN ADA SIGNS-CITY HALL AND ADMIN 50064 2318970 169.65 05/21/26 SOUTH COAST AIR QUAL 7/2025-6/2026 AQMD-CITY HALL 50063 2318973 172.49 05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 13.83 05/21/26 VERIZON SELECT SERVI 3/31 - 4/29/26 LD SELECT 50132 2318980 12.55 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 13.83 05/21/26 FRONTIER COMMUNICATI 5/1 - 5/30/26 METRONET 50128 2318950 536.48 05/21/26 SO CALIF GAS CO 4/3/26-5/4/26 CITY HALL 50110 2318972 628.69 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 13.83 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 13.83 05/28/26 SMARDAN SUPPLY CO. BACKFLOW REPAIR 50236 6103 231.40 05/28/26 GRAINGER, INC. CLOGGED SINK REPAIR 50238 6094 87.43 05/21/26 COUNTY OF ORANGE 5/2026 CUPA COUNTY FEES 50185 2318945 41.75 TOTAL ISF GB CITY HALL 1,935.76
11150000 ISF GB CITY YARD
05/21/26 SOUTH COAST AIR QUAL 7/2025-6/2026 AQMD FEE-CITY YARD 50066 2318973 172.49 05/21/26 MARCOM COMMUNICATION 3/25/26-4/25/26 MONTHLY ELEVATOR CELL 50169 2318957 48.00 05/28/26 AMAZON BULK SPOONS AND FORKS 50253 6087 49.19
05/21/26 SO CALIF GAS CO 4/6/26-5/5/26 CITY YARD 50107 2318972 29.68 05/28/26 AMTECH ELEVATOR SERV 5/2026 MONTHLY ELEVATOR SERVICES-CITY 50241 6088 175.00 TOTAL ISF GB CITY YARD 474.36
11160001 ISF GB FS1
05/21/26 SO CALIF GAS CO 4/3/26-5/4/26 FS#1 50111 2318972 290.37 05/28/26 AMAZON ROLLER SHADE CLUTCH FOR ROLL EASE 50248 6087 15.21 TOTAL ISF GB FS1 305.58
11160002 ISF GB FS2
05/21/26 SO CALIF GAS CO 4/6/26-5/5/26 - FS#1 50106 2318972 97.41 05/28/26 SO CALIF EDISON CO 04/23/26 to 05/21/26 FIRE STATION NO. 2 50273 2319008 1,050.45 TOTAL ISF GB FS2 1,147.86
11170000 ISF GB POLICE DEPARTMENT
05/21/26 AT&T MOBILITY 3/27 - 4/26/26 PD MDC 50200 2318930 1,078.20 05/21/26 AR INDUSTRIES SALLY DOOR REPAIR 50067 2318927 1,202.25 05/21/26 FRONTIER COMMUNICATI 4/28 - 5/27/26 CENTRA NET TO 911 50130 2318951 451.45 05/21/26 SO CALIF GAS CO 4/3/26-5/4/26 PD 50109 2318972 845.20 05/21/26 COUNTY OF ORANGE APRIL 2026 - OCATS 50126 2318944 1,374.20 05/28/26 AMTECH ELEVATOR SERV 5/2026 MONTHLY ELEVATOR SERVICES-PD 50239 6088 175.00 05/28/26 PACIFIC COAST REFRIG POLICE DEPARTMENT HVAC REPAIRS 50277 2319001 1,301.00 TOTAL ISF GB POLICE DEPARTMENT 6,427.30
11180000 ISF GB REC CENTER
05/21/26 SMARDAN SUPPLY CO. TOILET SEAT REPAIR 50065 6062 29.95 05/21/26 SO CALIF GAS CO 4/6/26-5/5/26 REC CENTER 50119 2318972 621.46 05/28/26 SMARDAN SUPPLY CO. 3 COMPARTMENT SINK REPAIR - PONY SNACK 50233 6103 18.06

05/28/26 SMARDAN SUPPLY CO. PONY SNACK BAR PUMBING REPAIR 50234 6103 104.84 05/28/26 SMARDAN SUPPLY CO. PONY SNACK BAR PLUMBING REPAIR 50235 6103 33.96 TOTAL ISF GB REC CENTER 808.27
11180001 ISF GB SR CENTER
05/21/26 SO CALIF GAS CO 4/3/26-5/4/26 SENIOR CENTER 50112 2318972 262.67 05/28/26 AMTECH ELEVATOR SERV 5/2026-MONTHLY ELEVATOR SERVICES-SENIOR 50240 6088 175.00 TOTAL ISF GB SR CENTER 437.67
11250001 PW - FLEET MGMT
05/21/26 SC COMMERCIAL LLC BULK DIESEL FOR FIRE STATION 1 50221 6060 9,791.50 05/21/26 SC COMMERCIAL LLC BULK GAS FOR FIRE STATION 1 50222 6060 1,229.32 05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 76.64 05/28/26 AMAZON TONER CARTRIDGES 50252 6087 401.74
05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 76.64 05/21/26 RINCON TRUCK CENTER, STOCK PARTS 50159 2318965 74.12 05/21/26 RINCON TRUCK CENTER, PART RETURN CREDITS 49975 2318965 (74.12) 05/21/26 SC COMMERCIAL LLC BULD GAS FOR FIRE STATION 1 50163 6060 1,929.27 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 76.64 05/21/26 RINCON TRUCK CENTER, STOCK PART 50165 2318965 14.50 05/21/26 CRASH CHAMPIONS UNIT 344 DAMAGE REPAIRS 50155 2318946 2,353.88 05/21/26 FACTORY MOTOR PARTS PART FOR UNIT 421 50164 2318948 37.64 05/21/26 HUNTINGTON BEACH HYU PART FOR UNIT 344 DAMAGES 50158 2318955 1,218.63 05/21/26 RINCON TRUCK CENTER, STOCK PARTS 50219 2318965 197.51 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 76.64 05/21/26 AAA INSPECTIONS LLC DIESEL SMOG CHECK 50161 6036 328.25 05/21/26 THEODORE ROBINS FORD PART FOR UNIT 420 50162 2318976 251.16 05/21/26 FACTORY MOTOR PARTS PART FOR UNIT 176 50218 2318948 254.78 05/21/26 RINCON TRUCK CENTER, STOCK PARTS 50220 2318965 711.15 TOTAL PW - FLEET MGMT 19,025.89
11250052 ISF FL PW CAPITAL
05/21/26 ENTERPRISE FM TRUST 202605 MONTHLY LEASE VEHICLES 50091 6042 827.09 TOTAL ISF FL PW CAPITAL 827.09
11260052 ISF FL FD CAPITAL
05/21/26 ENTERPRISE FM TRUST 202605 MONTHLY LEASE VEHICLES 50091 6042 114.71 TOTAL ISF FL FD CAPITAL 114.71
11270052 ISF FL PD CAPITAL
05/21/26 RHINO LININGS OF ORA UNIT 450 SPRAY HOOD 50078 2318964 317.86 05/21/26 ENTERPRISE FM TRUST 202605 MONTHLY LEASE VEHICLES 50091 6042 70.31 TOTAL ISF FL PD CAPITAL 388.17
11350053 ISF EQ PW R&C CAPITAL
05/28/26 FERGUSON ENTERPRISES MAGNETIC LOCATOR 50102 2318993 1,277.81 05/28/26 GRAINGER, INC. PAVEMENT BREAKER 50100 6094 1,932.04 TOTAL ISF EQ PW R&C CAPITAL 3,209.85
11370053 ISF EQ PD R&C CAPITAL
05/21/26 GALLS, LLC VEST - K. MARTINEZ 50082 2318952 917.06 05/21/26 GALLS, LLC VEST - J. HUGHES 50084 2318952 917.06

TOTAL ISF EQ PD R&C CAPITAL 1,834.12
11400000 ISF CITY SELF INSURANCE
05/28/26 CALIF JOINT POWERS I PREFUND REQUEST CJP-3054187 50282 6090 0.00 05/28/26 CALIF JOINT POWERS I CJPIA CASH CALL FOR CHECKS ISSUED IN MAY 50283 6091 0.00 TOTAL ISF CITY SELF INSURANCE 0.00
11400411 SELF INSURANCE
05/28/26 CALIF JOINT POWERS I PREFUND REQUEST CJP-3054187 50282 6090 60,000.00 05/21/26 TEMPORARY STAFFING PART TIME TEMP EMPLOYEE WE 4/19/2026 49172 6064 1,647.68 05/28/26 TEMPORARY STAFFING PART TIME TEMP EMPLOYEE WE 4/26/26 49590 6104 1,647.68 05/21/26 LIEBERT, CASSIDY & W LCW LEGAL FEES 50207 6053 32,319.12 05/21/26 HARPER AND BURNS, LL APR 2026 - CLAIMS LITIGATION 49996 6047 2,871.40 05/28/26 CALIF JOINT POWERS I CJPIA CASH CALL FOR CHECKS ISSUED IN MAY 50283 6091 15,000.00 TOTAL SELF INSURANCE 113,485.88
11400430 SELF INSURANCE
05/21/26 FOUNTAIN VALLEY FIRE MAY 2026 - FVFA LTD 50115 6043 682.50 05/21/26 TRUST OF PORAC JUNE 2026 - PORAC LTD (ACCT 54541) 50173 6066 1,564.00 TOTAL SELF INSURANCE 2,246.50
23030313 CDBG NEIGHBOORHOOD REVITA
05/21/26 BARR & CLARK, INC. LEAD BASED PAINT TESTING 50054 2318931 350.00 05/21/26 J&A HOME IMPROVEMENT HIP GRANT PARTIAL PAYMENT 50122 6050 12,000.00 TOTAL CDBG NEIGHBOORHOOD REVITA 12,350.00
23130324 FVHA AFFORDABLE
05/21/26 STRADLING YOCCA CARL PROFESSIONAL LEGAL SERVICES 50156 2318975 1,815.00 TOTAL FVHA AFFORDABLE 1,815.00
30000000 CIP NON-DEPARTMENTAL
05/21/26 HORIZONS CONSTRUCTIO CON 1437 RETENTION RELEASE PRJ 24044 49954 6048 13,081.52 TOTAL CIP NON-DEPARTMENTAL 13,081.52
50040403 WF UTILITY BILLING
05/21/26 AMAZON FINANCE OFFICE SUPPLIES - 4/1 - 4/30/26 49955 6038 164.02 TOTAL WF UTILITY BILLING 164.02
50050570 WF WTR PROD. OPNS
05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 29.14 05/28/26 VERIZON WIRELESS 3/26/26-4/25/26 WATER CELLS, USBS, MDM 50177 2319016 717.57 05/21/26 ULINE ORGANIZING MATERIALS FOR WELL 10 50171 2318978 1,303.88 05/21/26 ULINE ORGANIZING BINS FOR WELL 10 50114 2318978 249.01 05/28/26 AMAZON 1000 PLASTIC FORKS 50250 6087 41.31
05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 29.14 05/21/26 CHARTER COMMUNICATIO 5/1 - 5/30/26 SCADA INTERNET 50127 2318936 592.67 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 29.14 05/21/26 GRAINGER, INC. EPOXY COATING FOR WELL 12 50088 6045 219.25 05/28/26 HARRINGTON INDUSTRIA GAUGES 50303 2318996 593.11 05/28/26 HARRINGTON INDUSTRIA CHEMICAL PUMP PARTS 50304 2318996 2,002.83 05/21/26 GRAINGER, INC. EPOXY COATING FOR WELL 12 50178 6045 404.03 05/28/26 AMAZON LABEL TAPE FOR BROTHER MACHINE 50246 6087 32.60 05/28/26 AMAZON 2"X4" BLANK MAILING LABELS 50249 6087 71.30

05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 20.87 05/28/26 LIFECOM AIR MONITOR 50306 2318999 405.50
05/21/26 FOUNTAIN VALLEY PAIN PAINT BRUSHES FOR WELL 12 50216 2318949 7.61 05/28/26 TESS ELECTRIC, INC WELL 12'S CHLORINE ROOM 50309 2319013 3,471.88 05/28/26 REGENCY ENTERPRISES, LIGHTS FOR WELL 12 50302 6101 22.23 TOTAL WF WTR PROD. OPNS 10,243.07
50050571 WF DISTRIBUTION SYSTEM
05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 57.31 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 80.18 05/28/26 UNDERGROUND SERVICE UNDERGROUND SAFETY BOARD 49898 2319015 89.08 05/28/26 UNDERGROUND SERVICE UNDERGROUND SERVICE ALERT 49899 2319015 268.00 05/28/26 GRAINGER, INC. HYDRANT MAINTENANCE 50101 6094 443.57 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 125.91 05/28/26 GRAINGER, INC. VALVE AND HYDRANT MAINTENANCE 50099 6094 472.94 05/28/26 FERGUSON ENTERPRISES 1" COPPER 50256 2318994 1,854.41 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 57.31 05/21/26 JILL PROMOTIONS BLUE BEND RULERS FOR SCHOOL PROMOTION 50186 2318956 3,159.37 05/28/26 FERGUSON ENTERPRISES SERVICE COPPER 50258 2318994 2,472.54 TOTAL WF DISTRIBUTION SYSTEM 9,080.62
50050572 WF WTR QUAL & TREATMENT
05/21/26 USA BLUE BOOK FLUORIDE STANDARDS 50089 2318979 557.28 TOTAL WF WTR QUAL & TREATMENT 557.28
50050574 WF METER M & R
05/28/26 AQUA-METRIC SALES 1" METERS 50103 2318987 3,475.50 05/28/26 AQUA-METRIC SALES 2" METER REGISTERS 50104 2318987 3,197.65 TOTAL WF METER M & R 6,673.15
50095001 WATER FUND CAPITAL PROJECTS
05/21/26 WOOD RODGERS INC THRU 3/31/26 - DES CONS MGMT WELL NO. 6 50170 2318984 9,306.25 05/21/26 WOOD RODGERS INC THRU 4/30/26 DES CONS MGMT WELL NO. 6 50172 2318984 16,218.75 05/21/26 MKN THRU APR 2026 FY25 WATER MASTER PLAN & 50097 6056 38,160.25 TOTAL WATER FUND CAPITAL PROJECTS 63,685.25
50150580 SF SEWER MAINTENANCE
05/21/26 SHAPEDPENS.COM PLUSH POOPS FOR PROMOTION 50147 2318969 1,647.72 05/21/26 CINTAS CORPORATION 6 4-23-26 UNIFORMS 50136 2318938 8.78 05/21/26 CERTIFIED SEWER INSP CERT CLASS 6/16-26- 6/18/26 FOR P.V. & B.P. 50148 2318933 1,550.00 05/21/26 CINTAS CORPORATION 6 4-30-26 UNIFORMS 50137 2318938 8.78 05/28/26 SMARDAN SUPPLY CO. PVC GASKETS AND WYES 50533 6103 520.12 05/21/26 CINTAS CORPORATION 6 5-7-2026 UNIFORMS 50139 2318938 8.78 05/21/26 AMAZON IPHONE CASES 50187 6038 63.04
05/28/26 ALAN'S LAWNMOWER & G BRUSH CUTTER 50232 2318986 1,358.01 05/21/26 CINTAS CORPORATION 6 5-14-26 UNIFORMS 50140 2318938 8.78 05/21/26 SO CALIF EDISON CO 04/16/26 to 05/14/26 SEWER LIFT STATION 50179 2318971 478.26 05/21/26 OC SANITATION DISTRI Q3 2025/2026 FOG INSPECTIONS 50225 2318960 771.48 05/28/26 PLUMBERS DEPOT INC. SEWER / CCTV CUES EQUIPMENT UPGRADES 50530 2319002 590.61 05/28/26 PLUMBERS DEPOT INC. SEWER / CCTV CUES EQUIPMENT UPGRADES 50531 2319002 891.11

05/28/26 PLUMBERS DEPOT INC. SEWER / CCTV CUES EQUIPMENT UPGRADES 50532 2319002 1,544.54 TOTAL SF SEWER MAINTENANCE 9,450.01
TOTAL $1,340,070.39

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 16, 2026
Members of the City Council
SUBJECT: Approve a Resolution to Accept the Office of Traffic Safety Selective Traffic Enforcement Program Grant Money, Amend the FY 2026-27 Budget COPS/SLES Fund in the Amount of $70,500 and Appropriate an Expenditure to Incorporate the Changes into the FY 2026-27 budget Three-Year Strategic Goals
☒ Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
☐ Ensure long-term fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities.
☐ Attract and retain quality staff through best practices and trends. ☐ Maintain, build, plan for, and modernize infrastructure to support the growth and future needs of the City.
☐ Not applicable

EXECUTIVE SUMMARY
The State Office of Traffic Safety offers local law enforcement agencies grants to staff selective traffic enforcement programs on an overtime basis. The time period for this grant is based on the Federal Fiscal Year beginning October 1, 2026, and ending September 30, 2027. This grant consists of a comprehensive program, which includes overtime funding for selective enforcement details, bicycle safety programs, Officer training, and specialized equipment. Due to strict timelines, Staff submitted a grant application in keeping with the Office of Traffic Safety guidelines, which are explained in detail below.

This was a competitive process, and the City was granted money in part because of its collision rates. Council’s authorization is required to accept these funds and begin this program. The City will be reimbursed for overtime, training, and equipment costs totaling $70,500.

DISCUSSION
The Police Department is committed to traffic safety in the City. The Police Department continually analyzes traffic trends to combat DUI/DUID and hazardous vehicle operation

OTS Step Grant
June 16, 2026

violations, and to reduce traffic crashes. The grant requires traffic enforcement components, such as DUI checkpoints, DUI saturation patrols, primary crash factor violations, distracted driver, motorcycle, pedestrian and bicycle/E-bike enforcement, be conducted in an effort to reduce injury crashes. These components are designed to complement existing Police Department programs and are to be conducted on an overtime basis.

DUI checkpoints, DUI saturation patrols, enforcement of primary crash factor violations, distracted driver, motorcycle, pedestrian, and bicycle/E-bike violation enforcement activities are effective ways to maximize the deterrent effect and increase the perception of apprehension of motorists who would operate a vehicle in a dangerous manner.

The Police Department was awarded a $70,500 grant. Of the amount awarded, $59,250 is to cover overtime expenses for staffing various enforcement and education components. The enforcement programs will be placed at different locations and time frames as determined by traffic cash analysis. The grant provides reimbursement for two DUI checkpoints to be conducted during the summer and winter holiday. Additionally, the grant provides the funding to operate bicycle and E-bike safety and education programs.

The grant also provides $5,250 in travel expenses for traffic-related training, approved by the California Office of Traffic Safety. Finally, the grant will provide for the purchase of $6,000 in equipment (DUI checkpoint supplies).

Projected goals for the program are as follows:

1. To reduce the number of crashes and the number of victims killed or injured in alcoholinvolved crashes.

2. To reduce the number of crashes and the number of victims killed or injured as a result of violations of the California Vehicle Code, to include primary crash factors, and distracted driver-related violations.

3. To reduce the number of bicyclists, E-bike riders, and pedestrians killed or injured as a result of a crash.

The total program costs are $70,500. The City will receive 100 percent reimbursement for these costs through the grant.

FISCAL REVIEW
The OTS grant allocation for the City of Fountain Valley is $70,500, which is the projected expense to staff a variety of enforcement components. The following is a breakdown of enforcement components and reimbursable costs:

OTS Step Grant
June 16, 2026

Enforcement Component
Reimbursable
Overtime Costs
DUI/DL Checkpoints $22,000
DUI Saturation Patrols $11,000
Collaborative DUI Enforcement $5,000
Traffic Enforcement $4,000
Bicycle and Pedestrian Safety Enforcement $2,000
Collaborative Traffic Enforcement $2,000
Traffic Safety Education Presentations $1,250
Distractive Driving $7,000
Community Collaboration Engagement $5,000
SUBTOTAL $59,250
GRAND TOTAL $70,500
Without the grant money, the Police Department would have to spend budgeted money for overtime to staff each component, and these expenses would not be reimbursed. The Police Department would then have to choose between incurring these costs or neglecting valuable enforcement and education tools.

The budget amendment appropriates $70,500 in additional revenue from the State of California Office of Traffic Safety and $70,500 in increased expenditure appropriations.

The revenue will be posted to the Federal OTS Step Grant account in the Police Department Criminal Diversion grants program (270.70.97002.44003), and the purchase will be expensed to the following accounts below:

Fund Dept Program Object Description Amount
270 70 97002 50150 Overtime/Callback Sworn $53,250
270 70 97002 53052 Educational Meetings Emp $ 5,250
270 70 97002 55505 Misc. Equipment $ 6,000
TOTAL: $70,500
Training Reimbursable Costs
Travel Expenses for California Office of Traffic
Safety Approved Training
$5,250
SUBTOTAL $5,250
Other Direct Costs Reimbursable Costs
DUI Checkpoint Supplies $6,000
SUBTOTAL $6,000

OTS Step Grant
June 16, 2026

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney(s) for the City have reviewed and concurred with the recommended action.

ALTERNATIVES
Alternative No. 1: Approve a resolution to accept the Office of Traffic Safety Selective Traffic Enforcement Program grant money, amend the FY 2026-27 budget COPS/SLES fund in the amount of $70,500 and appropriate an expenditure to incorporate the changes into the FY 2026-27 budget.

Alternative No. 2: Do not approve a resolution to accept the Office of Traffic Safety Selective Traffic Enforcement Program grant money, amend the FY 2026-27 budget COPS/SLES fund in the amount of $70,500 and appropriate an expenditure to incorporate the changes into the FY 2026-27 budget and provide direction to Staff.

RECOMMENDATION
Staff is requesting City Council approve Alternative No. 1: Approve a resolution to accept the Office of Traffic Safety Selective Traffic Enforcement Program grant money, amend the FY 2026-27 budget COPS/SLES fund in the amount of $70,500 and appropriate an expenditure to incorporate the changes into the FY 2026-27 budget.

Prepared by: Jennifer Pratt, Sergeant
Reviewed by: Craig Heredia, Chief of Police
Fiscal Review: Ryan Smith, Finance Director
Attorney Review: Colin Burns, Attorney for the City
Approved by: Maggie Le, City Manager
Attachments:

1. OTS S.T.E.P. grant documents

6/1/2026 4:10:32 PM Page 1 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT

GRANT NUMBER
PT27060

1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)

2. NAME OF AGENCY 3. Grant Period
Fountain Valley From:

To:
10/01/2026
09/30/2027 4. AGENCY UNIT TO ADMINISTER GRANT
Fountain Valley Police Department

5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect.

6. Federal Funds Allocated Under This Agreement Shall Not Exceed:

Allocation is contingent upon availability of federal funds. $70,500.00

7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
• Schedule A – Problem Statement, Goals and Objectives and Method of Procedure • Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable) • Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable) • Exhibit A – Certifications and Assurances
• Exhibit B* – OTS Grant Program Manual
• Exhibit C – Grant Electronic Management System (GEMS) Access *The item shown with an asterisk (*), is hereby incorporated by reference and made a part of this agreement as if attached hereto. This document can be viewed at the OTS home web page under Grants: www.ots.ca.gov.

Use of OTS Grant Agreement template in lieu of the California Model Agreement (CMA) The California Office of Traffic Safety (OTS) utilizes its standardized OTS Grant Agreement template for awards. The format, structure, and uniformity of the OTS Grant Agreement template allows for processing through Grant Electronic Management System (GEMS). OTS’s approach to using the OTS Grant Agreement template is consistent with the California Model Agreement (CMA) developed by University of California Office of the President (UCOP) and directed by the Department of General Service (DGS). For more information, please review the OTS Grant Program Manual.

Pre-Agreement Work
No work shall commence and no costs shall be incurred prior to the grant start date or the grant agreement being fully signed and executed. Any such costs are incurred at the grantee’s own risk and may not be reimbursed.

6/1/2026 4:10:32 PM Page 2 of 19

8. Approval Signatures
We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the grant terms and conditions described herein.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Jennifer Pratt
Traffic Sergeant
[email protected]
(714) 593-4481
10200 Slater Avenue
Fountain Valley, CA 92708
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Maggie Le
City Manager
[email protected]
(714) 593-4410
10200 Slater Avenue
Fountain Valley, CA 92708
(Signature) (Date) (Signature) (Date)
C. FISCAL OFFICIAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Ryan Smith
Finance Director
[email protected]
(714) 593-4501
10200 Slater Avenue
Fountain Valley, CA 92708
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Stephanie Dougherty
Director
[email protected]
(916) 509-3030
2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
(Signature) (Date) (Signature) (Date)
E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9. SAM INFORMATION NAME: Jessica Chan SAM #:

REGISTERED
ADDRESS:

CITY:

ZIP+4:

E6HUBPTD4AZ1
10200 Slater Ave
Fountain Valley
92708-4736
ADDRESS: 2208 Kausen Dr. Suite 300
Elk Grove, CA 95758

6/1/2026 4:10:32 PM Page 3 of 19

10. PROJECTED EXPENDITURES
FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED

EXPENDITURES

AGREEMENT
TOTAL $70,500.00

AMOUNT ENCUMBERED BY THIS DOCUMENT
I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above, notwithstanding allocations contingent on availability of federal funds.
$70,500.00

PRIOR AMOUNT ENCUMBERED FOR THIS

AGREEMENT
$ 0.00
OTS ACCOUNTING OFFICER’S SIGNATURE DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE $70,500.00

6/1/2026 4:10:32 PM Page 4 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule A

GRANT NUMBER
PT27060

1. PROBLEM STATEMENT
Describe the city, county, or jurisdiction this grant will impact.

The City of Fountain Valley is in Orange County, California, bordered by Huntington Beach to the south and west, Costa Mesa to the southwest, and Santa Ana to the north. Fountain Valley has a population of approximately 56,000 residents, with a population density of around 6,213 people per square mile. Fountain Valley encompasses approximately 10 square miles and is characterized by a dense network of major arterial roadways, multiple ingress and egress ramps to the Interstate 405 freeway, and high daily traffic volumes from both local and regional motorists.

These roadways characteristics create complex traffic patterns and increased exposure to high-speed travel, pedestrian and bicyclist interactions, and impaired driving risks. The Fountain Valley Police Department (FVPD) is the primary agency responsible for traffic enforcement and roadway safety within the city limits and serves a diverse population of residents, commuters, and visitors who travel through Fountain Valley each day.

Describe the problem(s) to be addressed, supported by current and relevant crash data. (most recent calendar year data/stats).

Traffic-related fatalities and injury crashes remain a significant public safety concern within the City of Fountain Valley. According to Office of Traffic Safety (OTS) 2023 data, Fountain Valley was categorized as a Group C city based on population size. Among 103 comparable cities statewide, Fountain Valley ranked 48th for total crashes involving fatalities and injuries—placing it higher than 55 cities of similar size, indicating an elevated crash risk relative to peer jurisdictions.

Additionally, Fountain Valley ranked notably high in several critical crash categories, including:
• Speed-related crashes
• Bicycle-involved crashes
• Pedestrian crashes
• DUI-related crashesOf particular concern, Fountain Valley ranked:
• 11th out of 104 cities for bicyclists injured or killed, and • 35th out of 104 cities for pedestrian crashes involving individuals age 65 and older, identifying vulnerable and at-risk roadway users as disproportionately impacted.From 2023 through the present, Fountain Valley experienced:
• 1,175 injury crashes
• 13 traffic fatalities
• At least 2 pedestrian fatalities
• 3 bicyclist fatalities
• 3 fatal crashes involving alcohol, drugs, or a combination of impairing substancesAn analysis of the primary crash factors for these fatal crashes identified:
• Right-of-Way violations as the most common factor (5 crashes), including violations of CVC sections 21801(a), 21460(a), 21950(a), and 22107(a)
• Speed as a primary factor in 3 crashes and a contributing factor in at least 3 additional crashes • Red light violations (CVC 21453(a)) as a primary factor in at least 2 crashesGiven Fountain Valley’s relatively small geographic size and its concentration of major arterials and freeway access points, the frequency and severity of injury and fatal crashes is alarming. The City currently lacks funding to conduct overtime traffic enforcement operations, and without continued support from the Office of Traffic Safety, targeted enforcement and education efforts aimed at reducing serious and fatal crashes would not be possible. While OTS has supported similar efforts in prior years (up to $111,000 annually), Fountain Valley continues to rank high within its population group for injury and alcohol-involved injury crashes, underscoring the ongoing need for this program.

6/1/2026 4:10:32 PM Page 5 of 19
Define the target population the grant intends to serve and how they are affected by the problem(s).

The primary target population for this grant includes motorists, pedestrians, and bicyclists traveling on Fountain Valley roadways, including both residents and commuters who utilize the city’s arterial highways and freeway connections. The grant will also specifically serve at-risk and vulnerable roadway users, including:
• Bicyclists, who experience a disproportionately high rate of injury and fatal crashes in Fountain Valley
• Pedestrians, particularly older adults age 65 and over, who are at increased risk for severe injury or death when involved in traffic crashes
• Motorists exposed to impaired, speeding, and right-of-way-violating driversThese populations are directly affected by unsafe driving behaviors such as speeding, impaired driving, red-light violations, and failure to yield the right-of-way—factors consistently identified in Fountain Valley’s fatal and injury crash data. Targeted enforcement through this grant will focus on modifying these high-risk behaviors, improving driver compliance with traffic laws, and enhancing overall roadway safety. By addressing the specific behaviors contributing to serious and fatal crashes, this traffic safety grant will help reduce injuries and deaths while improving safety outcomes for all roadway users, particularly those most vulnerable to severe harm.

2. PERFORMANCE MEASURES
A. Goals:

1. Reduce the number of persons killed in traffic crashes.

2. Reduce the number of persons injured in traffic crashes.

3. Reduce the number of pedestrians killed in traffic crashes.

4. Reduce the number of pedestrians injured in traffic crashes.

5. Reduce the number of bicyclists killed in traffic crashes.

6. Reduce the number of bicyclists injured in traffic crashes.

7. Reduce the number of persons killed in alcohol-involved crashes.

8. Reduce the number of persons injured in alcohol-involved crashes.

9. Reduce the number of persons killed in drug-involved crashes.

10. Reduce the number of persons injured in drug-involved crashes.

11. Reduce the number of persons killed in alcohol/drug combo-involved crashes.

12. Reduce the number of persons injured in alcohol/drug combo-involved crashes.

13. Reduce the number of motorcyclists killed in traffic crashes.

14. Reduce the number of motorcyclists injured in traffic crashes.

15. Reduce hit & run fatal crashes.

16. Reduce hit & run injury crashes.

17. Reduce nighttime (2100 - 0259 hours) fatal crashes.

18. Reduce nighttime (2100 - 0259 hours) injury crashes.

B. Objectives: Target Number

1. Issue a news release announcing the kick-off of the grant by December 31st. The kick-off news releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 7 days prior to the issuance date of the release.
1 2. Participate and report data (as required) in the following campaigns; Quarter 1:

National Pedestrian Safety Month, National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: National Speed Prevention Campaigns, NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month.
12 3. Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly. Report on the outcomes of the “DUI BOLO” program.
12

6/1/2026 4:10:32 PM Page 6 of 19

4. Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training. 2 5. Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training. 2 6. Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for each checkpoint. For combination DUI/DL checkpoints, departments should issue press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.
2 7. Conduct DUI Saturation Patrol operation(s). 14

8. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
4 9. Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
5 10. Conduct highly publicized pedestrian and/or bicycle enforcement operation(s) in areas or during events with a high number of pedestrian and/or bicycle crashes resulting from violations made by pedestrians, bicyclists, and drivers. 2 11. Conduct Traffic Safety educational presentation(s) with an effort to reach community members. Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
2 12. Participate in highly visible collaborative DUI Enforcement operations. 2

13. Participate in highly visible collaborative Traffic Enforcement operations. 2

14. Participate in community collaboration and engagement activities to engage in conversations regarding traffic safety to both share information and receive input from the community members.
4 3. METHOD OF PROCEDURE
A. Phase 1 – Program Preparation (1st Quarter of Grant Year) • The department will develop operational plans to implement the “best practice” strategies outlined in the objectives section.
• Conduct all training needed to implement the program, in the first quarter. • Purchase all grant related supplies and materials to implement the program, in the first quarter. • Items with a unit cost of $5,000 more (including tax and shipping) must comply with the Buy America Act.
• In order to develop/maintain the “DUI BOLOs,” research will be conducted to identify repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. The DUI BOLO may include the driver’s name, last known address, DOB, description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly. • Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.

Media Requirements
Issue a news release approved by the OTS PIO announcing the kick-off of the grant by December 31 and after the grant is signed and executed, but no sooner than October 1, the start of the grant year. The kick-off release must be approved by the OTS PIO. If you are unable to meet the December 31 deadline to issue a kick-off press release, communicate the reasons to your OTS grant coordinator and OTS PIO.

The department will develop operational plans to implement strategies founded on best practices outlined in the objective section. Necessary training to achieve these objectives should be completed in the first and second quarters. All grant related purchases needed to implement the program should be made in the first quarter, and any item with a unit cost over $5,000 will comply with the Buy America Act.

To develop/maintain the DUI BOLOs, research will be conducted to identify repeat DUI offenders with

6/1/2026 4:10:32 PM Page 7 of 19
suspended or revoked licenses as a result of DUI convictions. The DUI BOLO may include the driver's name, last known address, DOB, description, current license status and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly. Implementation of STEP grant activities will be accomplished by deploying personnel at high crash locations through directed patrol assignments.

B. Phase 2 – Program Operations (Throughout Grant Year) Media Requirements
The following requirements are for all grant-related activities:
• Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Optimum lead time would be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
• Send all PowerPoint presentations, online presentations and trainings for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Certified training courses are EXEMPT from the approval process.
• The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the OTS grant coordinator. • Pre-approval is not required when using any OTS-supplied template for media advisories, news releases, social media graphics, videos or posts, or any other OTS-supplied educational material.

However, copy the OTS PIO at [email protected] and your OTS grant coordinator when any material is distributed to the media and public, such as a news release, educational material, or link to social media post.
• If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator.
• News releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are EXEMPT from the OTS PIO approval process.

The OTS PIO and your OTS grant coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
• Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are EXEMPT from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your OTS grant coordinator with the embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email. • Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval.
• Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
• Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS grant coordinator for approval prior to the production or duplication. • Use the following standard language in all press, media, and printed materials, space permitting:

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration. • Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult the OTS PIO and copy your OTS grant coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.

6/1/2026 4:10:32 PM Page 8 of 19
• Email the OTS PIO at [email protected] and copy your OTS grant coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so the OTS has sufficient notice to arrange for attendance and/or participation in the event. If unable to attend, email the OTS PIO at [email protected] and your OTS grant coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of the event within 7 days following significant grant-related event or program. The OTS PIO and your OTS grant coordinator should still be notified in advance when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
• Any news releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received OTS PIO approval in a prior grant year must be resubmitted for approval in the current grant year.
• For additional guidance, refer to the OTS Grants Materials Approval Process Guidelines and FAQs .
• Email the OTS PIO at [email protected] or your OTS grant coordinator for consultation when changes from any of the above requirements might be warranted.

C. Phase 3 – Data Collection & Reporting (Throughout Grant Year)

1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)

2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
• Collect and report quarterly, appropriate data that supports the progress of goals and objectives. • Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
• Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
• Collect, analyze and report statistical data relating to the grant goals and objectives.

4. METHOD OF EVALUATION
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

6/1/2026 4:10:32 PM Page 9 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B

GRANT NUMBER
PT27060

FUND NUMBER CATALOG

NUMBER (CFDA)

FUND DESCRIPTION TOTAL AMOUNT
164ID-27 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$44,000.00
402PT-27 20.600 State and Community Highway
Safety
$14,500.00
405e DDA-27 20.616 Distracted Driving Awareness $7,000.00 1906-27 20.611 Racial Profiling Prohibition Grants $5,000.00

COST CATEGORY FUND
NUMBER

UNIT COST OR
RATE

UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164ID-27 $11,000.00 2 $22,000.00
DUI Saturation Patrols 164ID-27 $1,000.00 14 $14,000.00 Collaborative DUI Enforcement 164ID-27 $1,000.00 2 $2,000.00 Traffic Enforcement 402PT-27 $1,000.00 4 $4,000.00
Pedestrian and Bicycle Enforcement 402PT-27 $1,000.00 2 $2,000.00 Collaborative Traffic Enforcement 402PT-27 $1,000.00 2 $2,000.00 Traffic Safety Educational Presentations 402PT-27 $625.00 2 $1,250.00 Distracted Driving Enforcement 405e DDA27$1,400.00 5 $7,000.00 Community Collaboration Engagement 1906-27 $1,250.00 4 $5,000.00 Category Sub-Total $59,250.00
B. TRAVEL EXPENSES
In State Travel 402PT-27 $5,250.00 1 $5,250.00
$0.00
Category Sub-Total $5,250.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT
$0.00
Category Sub-Total $0.00
E. OTHER DIRECT COSTS
DUI Checkpoint Supplies 164ID-27 $6,000.00 1 $6,000.00
Category Sub-Total $6,000.00
F. INDIRECT COSTS
$0.00
Category Sub-Total $0.00
GRANT TOTAL $70,500.00

6/1/2026 4:10:32 PM Page 10 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B-1

GRANT NUMBER
PT27060

BUDGET NARRATIVE

PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative DUI Enforcement - Overtime for grant funded Collaborative DUI Enforcement operations conducted by appropriate department personnel
Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Pedestrian and Bicycle Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative Traffic Enforcement - Overtime for grant funded Collaborative Traffic Enforcement operations conducted by appropriate department personnel
Traffic Safety Educational Presentations - Overtime for grant funded traffic safety educational presentations conducted by appropriate department personnel.

Distracted Driving Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Community Collaboration Engagement - Overtime for grant funded community collaborative engagement conducted by appropriate department personnel.

TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Local mileage for grant activities and meetings is included. Anticipated travel may include the OTS Traffic Safety Law Enforcement Forum, OTS Traffic Safety Summit, GHSA Annual Meeting in Anaheim. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.

CONTRACTUAL SERVICES
-

EQUIPMENT
-

OTHER DIRECT COSTS
DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device Supplies, PAS Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies. Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed.

INDIRECT COSTS
-

STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant.

Salaries may include wages, salaries, special compensations, or authorized absences such as annual leave and sick leave provided the cost for the individual employee is (a) reasonable for the services rendered, and (b) follows an appointment made in accordance with state or local laws and rules and meets federal requirements.

6/1/2026 4:10:32 PM Page 11 of 19
Any non-grant funded vacancies created by reassignment to a grant-funded position must be filled at the expense of the grantee agency.

Nothing in this agreement shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.

The OTS grant funded activities must be separate from other grant funded program activities and maintained under separate accounting tracking codes (example: the same DUI checkpoint may not be funded by both the CHP Cannabis Tax Fund and the OTS).

Benefits for personnel costs can only be applied to straight time or overtime hours charged to the grant.

6/1/2026 4:10:32 PM Page 12 of 19
Appendix A to Part 1300—Certifications and Assurances for Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117- 58)
The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding.

Applicable provisions include, but are not limited to, the following:

GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
• 23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended; • Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58; • 23 CFR part 1300—Uniform Procedures for State Highway Safety Grant Programs; • 2 CFR part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
• 2 CFR part 1201—Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

NONDISCRIMINATION
(applies to subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). These include but are not limited to:
• Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); • 28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
• Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex);
• Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
• The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the
Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not); • Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38
State of California – Office of Traffic Safety

GRANT AGREEMENT
Exhibit A

GRANT NUMBER
PT27060

6/1/2026 4:10:32 PM Page 13 of 19
The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.

GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from DOT, including NHTSA.”
The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.

SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:

1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in 49 CFR part 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.

2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
“The [name of Recipient], in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”

3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred to as DOT order 1050.2A) [1]in every contract or agreement subject to the Acts and the Regulations.

4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.

5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.

6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.

7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the

6/1/2026 4:10:32 PM Page 14 of 19
form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or
b. the period during which the Recipient retains ownership or possession of the property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.

By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any subrecipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.

THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:

1. The dangers of drug abuse in the workplace;

2. The grantee's policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation, and employee assistance programs;

4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;

5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a); c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will—

1. Abide by the terms of the statement;

2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction; e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted—

1. Taking appropriate personnel action against such an employee, up to and including termination;

2. Requiring such employee to participate satisfactorily in a drug abuse assistance or

6/1/2026 4:10:32 PM Page 15 of 19
rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.

POLITICAL ACTIVITY (HATCH ACT)
(applies to subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to subrecipients as well as States)

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;

3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to subrecipients as well as States)

INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)

6/1/2026 4:10:32 PM Page 16 of 19

1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.

4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.

6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.

7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS—PRIMARY TIER

COVERED TRANSACTIONS

1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and

6/1/2026 4:10:32 PM Page 17 of 19
its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency;
b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.

2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.

INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

8. Nothing contained in the foregoing shall be construed to require establishment of a system of

6/1/2026 4:10:32 PM Page 18 of 19
records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION—LOWER TIER

COVERED TRANSACTIONS

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.

CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)

GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:

1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.

2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.

DISCLOSURE REQUIREMENTS

6/1/2026 4:10:32 PM Page 19 of 19
No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:

1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.

2. NHTSA will review the disclosure and may require additional relevant information from the recipient.

If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.

3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.

PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.

POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website ( www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.

POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving company-owned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or reevaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving.

RESOLUTION NO. ________

A RESOLUTION OF THE CITY OF FOUNTAIN VALLEY

AUTHORIZING AND ACCEPTING THE STATE OF CALIFORNIA

OFFICE OF TRAFFIC SAFETY (OTS) SELECTIVE TRAFFIC

ENFORCEMENT PROGRAM (STEP) GRANT AND AMENDING
THE FY 2026-2027 BUDGET TO INCREASE APPROPRIATIONS
IN THE AMOUNT OF $70,500
WHEREAS, the City Council recognizes the enforcement of traffic laws and the education of the public in traffic safety are important components in maintaining safe streets and fulfilling the Police Department’s Traffic Plan; and WHEREAS, the City Council recognizes the acceptance of the Office of Traffic Safety grant money will allow the purchase of enforcement and equipment, which will assist the Police Department in the enforcement of traffic laws and in the education of the public in traffic safety; and
WHEREAS, the City Council recognizes the acceptance of this Office of Traffic Safety grant money will allow additional traffic enforcement programs that will complement the Police Department’s existing Traffic Plan.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Fountain Valley that the City Manager is authorized to accept the “Selective Traffic Enforcement Program” grant and enter into the resultant grant agreement, and any amendments, the Office of Traffic Safety (OTS) to fund equipment purchased, training and overtime costs to staff selective traffic enforcement, DUI checkpoints and DUI saturation patrols between October 1, 2026 and September 30, 2027, in the amount of $70,500. The Director of Finance, or his/her designee, shall amend the FY 2026-2027 budget and appropriate an expenditure to incorporate the changes into the FY 2026-2027 budget in the amount of $70,500.

PASSED AND ADOPTED by the City Council of the City of Fountain Valley at the regular adjourned meeting this 16th day of June 2026.
___________________
Jim Cunneen, Mayor
ATTEST:
_____________________
Rick Miller, City Clerk
APPROVED AS TO FORM:

HARPER & BURNS LLP
_______________________
Attorneys for the City

CITY OF FOUNTAIN VALLEY

CITY COUNCIL

COUNCIL ACTION REQUEST
To: Honorable Mayor and Agenda Date: June 16, 2026
Members of the City Council
SUBJECT: Approve the Water Loss Control Participation Agreement with the Municipal Water District of Orange County, and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,246 and Addendum B – Water Loss Control Technical Assistance Tasks, January 1, 2026 – June 30, 2027, in the amount of $36,395 Three-Year Strategic Goals
☐ Cultivate a welcoming culture and safe environment that makes our community “A Nice Place to Live.”
☐ Ensure long-term fiscal stability by evaluating processes, and attract and retain revenue producing businesses/opportunities.
☐ Attract and retain quality staff through best practices and trends. ☒ Maintain, build, plan for, and modernize infrastructure to support the growth and future needs of the City.
☐ Not applicable.

EXECUTIVE SUMMARY
To comply with State water conservation legislation, reduce cost, and realize efficiencies, staff requests that the City Council approve the Water Loss Control Participation Agreement (WLC Agreement) with the Municipal Water District of Orange County (MWDOC), and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,246 and Addendum B – Water Loss Control Technical Assistance Tasks, January 1, 2026 – June 30, 2027, in the amount of $36,395.

The City of Fountain Valley has participated in MWDOC’s water loss control shared services and technical assistance programs for over 10 years. The new “umbrella” WLC Agreement unifies the shared services and technical assistance programs under one (1) agreement between MWDOC and the Participating Agency, while continuing to minimize time-consuming administration, provide economy-of-scale cost savings, and allow the City to opt into or out of services annually based on identified needs.

The cost of Addenda A and B will be fully funded by the Water Utility Fund and expensed to the Water Conservation and Meter M&R accounts for the Public Works – Water Distribution division.

Water Loss Control Participation Agreement with Addenda A and B June 16, 2026

DISCUSSION
MWDOC has offered water loss control services since 2016 to assist member agencies, including the City of Fountain Valley, in complying with current and future legislation. In the past, shared services and technical assistance programs were offered through two separate agreements. This year MWDOC has drafted a new “umbrella” WLC Agreement to replace the previous agreements. The purpose of the new WLC Agreement is to create a unified agreement between MWDOC and the Participating Agency that combines all the water loss shared services and technical assistance programs offered into one (1) agreement with a clearly defined term.

The new WLC Agreement has a term of 10 years and will be effective July 1, 2026, through June 30, 2036. Addenda to the WLC Agreement will be issued annually, allowing the City to identify and participate in the shared services and technical assistance tasks needed by the City on an annual basis.

Participating in the WLC Agreement benefits the City by allowing the City to opt into or out of water loss control services annually based on identified needs while minimizing timeconsuming administration and reducing costs through economies of scale.

Addendum A – Water Loss Control Shared Services Election Form Fiscal Year 2026-2027
Water Loss Control Shared Services focuses on the field assessment of distribution system condition and performance to identify water loss. The shared services tasks recommended by staff for FY 2026-2027, based on the City’s needs, are described below.

Task 1 – Water Audit Validation: Water audit validation is required by all agencies and will be provided by MWDOC as a core service at no cost to member agencies.

Task 2 – Meter Accuracy Testing: Water meter accuracy testing is an important tool in water loss control. It determines and monitors meter accuracy over time, identifies inaccuracies that may result in volumetric and financial loss, and provides insights into the City’s apparent water loss. With this in mind, staff worked with Water Systems Optimization, Inc. (which is now E Source), to develop both a small and large meter testing program. Since the City’s AMI water meters are relatively new, the City will be testing 30 random small meters a year to characterize the typical performance of small meters throughout the City. In contrast, the large meter testing program will focus on the individual performance of high-volume meters ranging in size from 2 inches to 10 inches. The City will test over 90 large meters a year based on a 6-year schedule that will test approximately 550 meters at least once. High volume/high revenue meters will be tested more frequently based on their calculated optimum test and repair frequency. The meter testing results will be utilized to identify and repair/replace failing meters and ensure meter accuracy to limit revenue loss.

Water Loss Control Participation Agreement with Addenda A and B June 16, 2026

Addendum B – Water Loss Control Technical Assistance Tasks January 1, 2026, through June 30, 2027
(The Technical Assistance program was formerly on a Calendar Year schedule and is being moved to a Fiscal Year schedule. To facilitate this change, Addendum B covers an 18-month term from January 1, 2026, through June 30, 2027.)
Water Loss Control Technical Assistance services are provided by E Source, a utility research, data science, and consulting firm, selected by MWDOC through a competitive Request for Proposal (RFP) process. Technical Assistance focuses on analytical/data services to help agencies better understand the water loss in their systems, comply with state requirements, and make more informed decisions about what field interventions to undertake. The technical assistance tasks recommended by staff for January 1, 2026, through June 30, 2027, based on the City’s needs, are described below.

Task 1 – Project Administration: Project administration is required by all participating agencies.

It helps cover the costs associated with partnering with E Source, the consultant who provides the technical assistance, and the larger MWDOC group.

Task 2 – Water Audit Compilation: Since Addendum B has an extended term while it transitions from a Calendar Year (CY) schedule to a Fiscal Year schedule, E Source will assist the City with compiling, documenting, and completing the CY 2025 and CY 2026 Water Audits so they can be validated and submitted to the Department of Water Resources (DWR) by their required deadlines. Each water audit compilation will include estimating apparent and real water loss, assessing data availability and quality, and pro-rating the City’s raw billing data to reduce lagtime effects of the City’s eight bi-monthly billing cycles.

Task 4 – Billing Data Chain Assessment: E Source will assess the City’s billing data for potential errors and/or inconsistencies, including mapping of the meter read collection and billing processes, comparing raw data across billing data management platforms (read collection system, billing data system, and reporting system), and identifying data transmission errors. Unlike the other recommended tasks, this assessment will not be repeated regularly.

This assessment is recommended at this time to confirm the accuracy of the City’s new water billing system to ensure that it is receiving and processing the AMI meter data correctly and that the raw billing data being reported for compliance purposes is complete.

FISCAL REVIEW
The cost of the selected tasks will be fully funded by the Water Utility Fund and expensed to the Water Conservation (500.50.50571.53550) and Meter M&R (500.50.50574.53010) accounts for the Public Works – Water Distribution division.

There is sufficient funding remaining in the FY 2025-26 Water Conservation account for the Addendum B Project Administration and CY 2025 Water Audit Compilation costs.

The FY 2026-27 budget allocates $30,000 for meter testing and repair, and $100,000 for water conservation efforts. Therefore, there are sufficient funds for the water loss control services selected by the City for FY 2026-27.

Water Loss Control Participation Agreement with Addenda A and B June 16, 2026

Water Loss Control Participation Agreement – Addenda A & B Account Task FY 25-26 FY 26-27
Addendum A – Shared Services – $22,246
n/a Task 1 – Water Audit Validation no charge
500.50.50574.53010 Task 2 – Meter Accuracy Testing* $22,246 Addendum B – Technical Assistance Tasks – $36,395
500.50.50571.53550 Task 1 – Project Administration $ 2,200 500.50.50571.53550 Task 2 – Water Audit Compilation
CY 2025 Audit $11,240
CY 2026 Audit $11,240
500.50.50571.53550 Task 4 – Billing Data Chain Assessment** $11,730 Less Remaining Funds -$ 15
Total $13,425 $45,216
*All remaining funds provided to MWDOC for meter accuracy testing for FY 25-26 will be applied to the FY 2026-27 cost of meter accuracy testing. The final rollover amount will be determined at the end of FY 2025-26 after all scheduled work is completed. **The cost of the billing data chain assessment is $23,460. MWDOC will be requesting funding from the Metropolitan Water District of Southern California (MET) for 50% of the cost of the billing data chain assessment on behalf of the City. The $11,730 listed is the City’s projected share of the cost.

PUBLIC NOTIFICATION
Not applicable.

ENVIRONMENTAL IMPACT REVIEW
Not applicable.

ATTORNEY REVIEW
The Attorney for the City has reviewed and approved the Water Loss Control Participation Agreement, Addendum A, and Addendum B.

ALTERNATIVES
Alternative No. 1: Approve the Water Loss Control Participation Agreement with the Municipal Water District of Orange County, and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,246 and Addendum B – Water Loss Control Technical
Assistance Tasks, January 1, 2026 – June 30, 2027, in the amount of $36,395. This is the recommended action as it allows the City to benefit from MWDOC’s water loss control program, comply with the annual validated water loss control audit requirements, and ensure the accuracy of water meters and billing data.

Alternative No. 2: Do not approve the Water Loss Control Participation Agreement.

This is not recommended as it will prevent the City from participating in MWDOC’s water loss control program, which

Water Loss Control Participation Agreement with Addenda A and B June 16, 2026

assists the City with State compliance while minimizing timeconsuming administration and providing economy-of-scale cost savings.

Alternative No. 3: Approve the Water Loss Control Participation Agreement, but do not approve Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 and/or Addendum B – Water Loss Control Technical Assistance Tasks, January 1, 2026 – June 30, 2027. This is not recommended as it will prevent the City from utilizing the water loss control services needed to comply with State requirements and ensure the accuracy of the City’s water meters and billing data.

RECOMMENDATION
Staff recommends that the City Council approve Alternative No. 1, which is to approve the Water Loss Control Participation Agreement with the Municipal Water District of Orange County, and the task elections identified in Addendum A – Water Loss Control Shared Services Election Form for FY 2026-2027 in an amount not to exceed $22,246 and Addendum B – Water Loss Control Technical Assistance Tasks, January 1, 2026 – June 30, 2027, in the amount of $36,395.

Prepared by: Christine Smith, Senior Management Analyst Reviewed by: Mark Sprague, Field Services Manager
Approved by: Scott Smith, Director of Public Works
Fiscal review by: Ryan Smith, Finance Director
Attorney review by: Colin Burns, Attorney for the City
Approved by: Maggie Le, City Manager
Attachments:

1. WLC Agreement with Addenda A and B

2. Advanced Billing Data Chain Assessment Proposal

1 WATER LOSS CONTROL PARTICIPATION AGREEMENT
This Water Loss Control Participation Agreement (“Agreement”) is made and effective as of the 1st day of July 2026, by and between the Municipal Water District of Orange County (“MWDOC”) and City of Fountain Valley (“Participating Agency”). MWDOC and Participating Agency may be collectively referred to as “Parties” and individually as a “Party.”

RECITALS
A. MWDOC offers its member agencies (“Member Agencies”) the benefits of certain programs known as choice services, that they may elect to participate in (“Choice Services”). These Choice Services provide cost-sharing and shared services components that allow a Participating Agency to obtain economies of scale and save money. If a Member Agency elects to receive certain Choice Services, the Participating Agency executes an agreement with MWDOC that sets forth the terms and conditions for those Choice Services.

B. With input from its Member Agencies, MWDOC previously prepared a Water Loss Control Shared Services Business Plan, which proposed five water loss control shared services (“Shared Services”) to be provided to Member Agencies by MWDOC staff and, as necessary and as determined by MWDOC, by third-party vendors/contractors (“Contractor or Contractors”).

C. MWDOC also entered into a professional services agreement with E Source Companies, LLC (“Consultant” or “E Source”) for E Source to provide Water Loss Control Technical Assistance (“Technical Assistance”) to Member Agencies (“Consultant Agreement”).

D. The purpose of this Water Loss Control Participation Agreement is to create a unified agreement between MWDOC and Participating Agency that combines all of the water loss control Shared Services and Technical Assistance programs (“Programs”) into one agreement. Addenda to this Agreement will be issued annually.

E. Participating Agency may elect which of the Shared Services and/or Technical Assistance (jointly referred to as WLC Services), if any, it wishes to receive from MWDOC by completing annual election forms (“Election Forms”). The Election Forms include the selected tasks, total required payments and costs, and any additional information and/or requirements specific to each Participating Agency. The annual Election Forms may also be used to tailor the types and amounts of WLC Services that each Participating Agency will receive, as well as the costs. The Election Forms are attached as Addenda A and B to this Agreement.

F. At the end of each year, the Participating Agency may change the WLC Services that it elects to receive for the following year by completing the annual Election Forms under this Agreement.

Attachment No. 1

2 G. The Parties desire to enter into this Agreement, whereby the Participating Agency elects to receive, on the terms and conditions described herein, the water loss control shared services provided by MWDOC.

NOW THEREFORE, in consideration of the promises and covenants hereinafter set forth, the Parties do agree as follows:

TERMS

1. Scope of Services. MWDOC will provide the Participating Agency with the water loss control Shared Services and Technical Assistance identified in the Election Forms attached hereto as Addenda A and B. The actual scheduling of Shared Services and/or Technical Assistance shall be done only upon request of the Participating Agency. The Parties agree that MWDOC may provide the WLC Services by utilizing MWDOC staff or Contractors as determined by MWDOC.

2. Term of Agreement. This Agreement will be effective on July 1, 2026, and shall terminate on June 30, 2036 (“Term”)

3. Administration of Consultant and Contractors. MWDOC will provide project management assistance regarding all Contractors and the Consultant, which includes working closely with and managing Contractors and Consultant to ensure compliance with any agreements, facilitating interactions between the Participating Agency and Consultant and/or Contractors, and communicating regularly with the Participating Agency regarding the Shared Services and/or Technical Assistance, as needed.

3.1.MWDOC shall make payments to any Contractor and/or Consultant on a time and materials basis.

3.2.Participating Agency shall provide all documents, information, and assistance requested by any Contractor and/or Consultant during the performance of the WLC Services.

3.3.Addenda A and B are incorporated into this Agreement by reference and include separate attachments for Participating Agencies that include the selected tasks, total required payments and costs, and any additional information and requirements that are specific to each Participating Agency.

3.4.Addenda A and B may be updated as Member Agencies execute this Agreement and become Participating Agencies or pursuant to mutual agreement between a respective Participating Agency and MWDOC.

4. Annual Election Addenda. Prior to July 1 of each year of the Agreement and consistent with the requirements of this Section, Participating Agency may change the Shared Services and/or Technical Assistance that it elects to receive for the following fiscal year (July 1 – June 30) by completing the annual Election Forms, which will replace and become new Addenda A and/or B to this Agreement (“Election Addenda” or “Election Addendum”). The Election Addenda may contain terms that differ from those in the initial

3 Election Forms, including adjustments to service types and the addition of new WLC Services as they become available.

5. Cost Sharing by Participating Agencies.

5.1.MWDOC shall:

5.1.1. Collect from Participating Agency upon execution of this Agreement the amount indicated in Addenda A and B that is specific to said Participating Agency, which is the total cost of the selected WLC Services for the Participating Agency.

5.1.2. Inform the Participating Agency of any proposed extra work that would result in an increase in the payments under this Agreement. MWDOC and the Participating Agency must both approve such extra work before MWDOC will notify any Contractor or Consultant to proceed with the work.

5.1.3. On or about February of each year, prepare a final annual accounting for the Participating Agency and either distribute any remaining funds collected back to the Participating Agency, consistent with the amounts in Addenda A and B, roll over any remaining funds for use by the Participating Agency in the following year or, when there are funds due, issue a final bill to the Participating Agency.

5.2.Participating Agency shall:

5.2.1. Pay to MWDOC upon execution of this Agreement, the full amount indicated in Addenda A and B that is specific to the Participating Agency.

5.2.2. Pay to MWDOC, upon approval of any extra work, the full amount owed for any approved extra work. The Participating Agency shall bear all costs associated with extra work it approves.

6. Pricing and Payment. Participating Agency shall pay MWDOC for the WLC Services provided pursuant to this Agreement in the unit cost amounts for each type of elected WLC Service as set forth in Addenda A and B. The unit costs in Addenda A and B may be adjusted each year by MWDOC in MWDOC’s discretion. MWDOC will provide each Participating Agency with notice of any changes to unit costs for the next fiscal year by March 1 of the previous fiscal year, and such adjusted costs shall be reflected in the Election Addenda. With respect to WLC Services that are provided by Contractors/Consultants who are under contract with MWDOC, MWDOC reserves the right to change the unit cost for such WLC Services if there is a change in unit cost by the Contractor, provided, however, that MWDOC gives the Participating Agency no less than sixty (60) days' notice of such change, during which period the Participating Agency may elect to terminate such WLC Services from the Election Addenda. In addition, Participating Agency is not obligated to request any WLC Services and is only required to pay for WLC Services performed by MWDOC at the request of Participating Agency.

7. Billing Procedure and Payment. Within thirty (30) days of receiving Addenda A and/or B, MWDOC shall invoice the Participating Agency for the full unit cost of the WLC Services that have been chosen by the Participating Agency for the upcoming fiscal year.

4 Participating Agency shall pay MWDOC within thirty (30) days of receipt of the invoice. In the event that there is a subsequent change in the scope of the WLC Services that were elected in Addenda A and/or B, MWDOC will provide a revised invoice for such change, and in the event that the change results in a credit to the Participating Agency, then the Participating Agency will have the option to apply the credit to the annual invoice for the next fiscal year or to be issued a refund.

8. Termination. Either Party may terminate this Agreement upon thirty (30) days' written notice to the other. In such an event, the Parties shall be responsible to each other for any obligations incurred prior to the termination date.

9. Standard of Care. MWDOC will require that all Contractor and/or Consultant services be performed in accordance with generally accepted professional practices and principles, and in a manner consistent with the level of care and skill ordinarily exercised in performing the WLC Services.

10.Accounting. MWDOC shall, for a reasonable time, keep accurate and detailed records of the WLC Services performed and the financial details in connection with such WLC Services, including all accounting books and records related to any payments to Contractors/Consultants (collectively, the “Records”). All Records must be maintained in accordance with generally accepted accounting principles applicable to local government agencies in the State of California and must be sufficiently complete and detailed to permit an accurate evaluation of the Services provided by MWDOC under this Agreement.

Upon request from the Participating Agency, MWDOC will provide copies of the Contractor/Consultant invoices and MWDOC’s payment records, and shall give the Participating Agency reasonable access, during normal business hours, to such Records.

11.Independent Contractor. The Consultant/Contractor is not a party to this Agreement and is not an employee or agent of MWDOC or any of the Participating Agencies, either as a result of this Agreement or because of the Consultant Agreement between MWDOC and the Consultant/Contractor. The Consultant/Contractor is an independent contractor to MWDOC.

12.Indemnification. MWDOC agrees to indemnify and hold the Participating Agency harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury of any kind, in law or equity, to property or persons, including wrongful death (collectively, “Claims”), in any manner arising out of any sole and active negligent acts or willful misconduct of MWDOC in connection with the provision of WLC Services.

MWDOC will require any Contractors/Consultants to indemnify and hold harmless Participating Agency from any and all Claims arising out of the negligent acts or willful misconduct of the Contractor/Consultant, its agents and employees, and Participating Agency agrees that it will look solely to the Contractor/Consultant for such Claims, provided, however, that MWDOC will act as the agent of the Participating Agency to enforce the terms of the indemnity with Contractor/Consultant and make any related insurance claims with respect to the insurance coverage provided by Contractor/Consultant. .

MWDOC shall use its best efforts in administering the Consultant Agreement, but makes no representations, guarantees, or warranties to the Participating Agency as to the quality