Item 132/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 4/28/2026
Subject: Approval of an Agreement with the Municipal Water District of Orange County for participation in Water Loss Control Shared Services and Technical Assistance Programs. (Cost: Not to exceed $80,379)(Action Item)
OBJECTIVE
To receive City Council approval for a renewed ten -year agreement (Agreement) with the Municipal Water District of Orange County (MWDOC) for the City’s continued participation in Water Loss Control Shared Services and Technical Assistance Programs.
BACKGROUND
State law, including requirements administered by the State Water Resources Control Board (SWRCB), increasingly mandates that water agencies demonstrate active water loss control efforts. Senate Bill (SB) 1420 and SB 555 require water a gencies to prepare a nd submit a validated water loss audit annually to the California Department of Water Resources (DWR).
SB 555 also require s water agencies to comp ly with supplier -specific water loss targets beginning in 2028. The City lacks the technical expertise needed to prepare for and comply with these requiremen ts. The City previously entered into a cost-sharing agreement with MWDOC, a public agency that provides wholesale water supply and related services to member age ncies throughout Orange County. This Agreement is a continuation of the previous contract, which supports the City's compliance with state water loss regulations and reporting obligations.
As part of its service offerings, MWDOC administers Water Loss Control (WLC) Choice Services, which allow participating member agencies to achieve economies of scale through cost-sharing and coordinated program management. The City is a MWDOC member agency and has historically participated in several of MWDOC's WLC programs s ince 20 15. This Agreement consolidates and continues th e City’s participation under a unified umbrella framework covering both Shared Services (Addendum A) and Technical Assistance provided by E Source Companies, LLC (Addendum B).
Item 132/2026
DISCUSSION
The Agreement is an umbrella agreement with a ten-year term (July 1, 2026 – June 30, 2036). It does not obligate the City to a fixed scope of services for the entire term. Instead, the City selects specific services annually through Election Forms (Addenda A and B), which are updated each fiscal year. The City may adjust, add, or remove services at the start of each new fiscal year and may terminate the Agreement with 30 days' written notice.
MWDOC manages all contractor and consultant relationships, administers payments, and provides annual financial accounting. The City pays only for services it requests and receives.
FINANCIAL IMPACT
The total cost of elected WLC Choice Services for Fiscal Year 2026 –2027 is summarized in the table below. Shared Services detailed in Addendum A will total $45,659, after application of $5,325 in rollover credits from the prior fiscal year. Technical assistance tasks listed in Addendum B will total $34,720.
Service Category Amount
Addendum A – Shared Services $45,659
Addendum B – Technical Assistance $34,720
TOTAL $80,379
This program will be funded from the Water Enterprise Fund. There is no impact on the General Fund. Future-year costs are subject to annual election and will be presented to the City Manager or City Council for approval, depending on purchasing thresholds.
RECOMMENDATION
It is recommended that the City Council:
Approve a ten-year Water Loss Control Participation Agreement with MWDOC for the City’s participation in Water Loss Control Shared Services and Technical Assistance Programs;
Authorize the City Manager , or designee, to execute the agreement and amendments on behalf of the City , and to make minor modifications as appropriate thereto; and
Authorize the Finance Director, or designee, to approve payments to MWDOC to participate in the WLC Shared Services and Technical Assistance Programs for Fiscal Year 2026-27, in the amount not to exceed of $80,379.
By: Samuel Kim, P.E., Public Works Director
Item 132/2026
ATTACHMENT(S)
1. MWDOC Water Loss Control Participation Agreement
2. Addendum A - Water Loss Control Shared Services Election Form (Fiscal Year 2026- 2027)
3. Addendum B - Water Loss Control Technical Assistance Tasks Form (January 1, 2026 through June 30, 2027)