Item 350/2026
Final
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
To:
Lisa L. Kim From: Samuel Kim
Dept:
City Manager Dept: Public Works
Date: 8/25/2026
Subject: Approval of the Fiscal Year 2026-27 budget amendment with the West Orange County Water Board to receive a one-time City reimbursement for unexpended Cathodic Protection Program Funds. (Reimbursement: $193,200)(Action Item)
OBJECTIVE
To receive City Council approval of the Fiscal Year 2026 -27 budget amendment with West Orange County Water Board (WOCWB) for the City to receive a one-time reimbursement of $193,200 for unexpended funds from the Cathodic Protection Program.
BACKGROUND
WOCWB is a joint powers authority formed in 1967 by the cities of Garden Grove, Huntington Beach, Seal Beach, and Westminster to maintain shared imported -water transmission lines.
In 2020, member agencies contributed toward an estimated $8 million Cathodic Protection (CP) Program for the aging OC-9 and OC-35 mains. In Fiscal Year 2023 -24, an engineering study found Cathodic Protection was not feasible for either main due to certain segments of the transmission mains being too narrow and recommended condition assessments be performed every 5 years to identify areas of concern before they become major problems.
This study identified $620,000 in targeted high priority repairs needed, however, no immediate danger of failure in either transmission main. WOCWB has already budgeted $1 million to address these repairs (plus contingency), along with correcting any ancillary issues discovered during repairs and ongoing maintenance. As a result, the $7.5 million collected for the now discontinued CP program is available to return to member agencies.
DISCUSSION
Staff proposes returning $4.6 million of WOCWB's $7.5 million fund balance to member agencies, prorated by ownership percentage, while WOCWB retains $3 million – the $1 million already budgeted for repairs plus a $2 million reserve. The $2 million reserv e provides a buffer for emergency repairs and will help fund the next recommended condition assessment in Fiscal Year 2029-30. Below is a summary of reimbursements for each member agency.
Item 350/2026
Agency Ownership % CP Fund Return
Huntington Beach 56.1% $2,580,600
Westminster 25.4% $1,168,400
Seal Beach 14.3% $657,800
Garden Grove 4.2% $193,200
Total 100.0% $4,600,000
The WOCWB is requesting each member agency's council’s approval of the amendment before WOCWB ratifies it at its October 21, 2026 meeting.
FINANCIAL IMPACT
There is no impact to the General Fund. The City would receive a one-time reimbursement of $193,200 (4.2% ownership share) allocated back towards the Water Enterprise Fund.
RECOMMENDATION
It is recommended that the City Council:
Approve the Fiscal Year 2026-27 budget amendment with West Orange County Water Board (WOCWB) for the City to receive a one-time reimbursement of $193,200, allocated to the Water Enterprise Fund, for unexpended funds from the discontinued Cathodic Protection Program.
By: Samuel Kim, P.E
Director of Public Works