That the Utility Authority:
A.  Authorize the Executive Director to execute a Water Loss Control Participation Agreement with the Municipal Water District of Orange County (MWDOC); 

B.  Authorize the Executive Director to execute an agreement (Addendum A) with MWDOC for Water Loss Control Shared Services in the amount of $14,400; 

C.  Authorize the Executive Director to execute an agreement (Addendum B) with MWDOC for Water Loss Control Technical Assistance Tasks in the amount of $22,352.59; and,

D.  Authorize staff to issue a purchase order to MWDOC in an amount not to exceed $36,752.59 for water loss control services.

The Municipal Water District of Orange County (MWDOC) offers its member agencies the benefit of participating in select programs known as "Choice Services".  MWDOC assesses the regional need for services, then secures those services through a Request for Proposal process and enters into an agreement with the selected service providers. MWDOC then offers each member agency the option to participate in individual programs and selects those services that are most applicable to each member agency's unique requirements. Each member agency can then execute an agreement with MWDOC that sets forth the terms and conditions for those Choice Services that the member agency wants to participate in. These Choice Services provide cost-savings by obtaining economies of scale, as many of the member agencies have similar water supply characteristics.

The Water Loss Control Participation Agreement is a ten-year agreement with the purpose of creating a unified agreement between MWDOC and each participating agency that combines all the water loss control shared services and technical assistance programs into one agreement.  Addenda to this agreement are issued annually, providing the member agency the opportunity to evaluate and determine which, if any, services will be utilized.

For FY 2026–2027, MWDOC has entered into a professional services agreement with E Source Companies, LLC to provide Water Loss Control Technical Assistance for member agencies.  Staff has reviewed the available water loss control shared services within Addendum A and identified two services beneficial to the La Habra Utility Authority:

Staff has reviewed the available water loss control technical assistance tasks within Addendum B and identified four tasks beneficial to the Authority for the completion of the required Annual Water Loss Control Audit. The tasks include:

The total costs associated with Addendum B are $25,210 less $2,857.41 from rollover funds applied as a credit.

Staff recommends entering into a ten-year agreement with MWDOC for Water Loss Control Participation, and entering into agreements for Addendums A and B to support requirements for the fulfillment of the CY 2025 Water Loss Control Audit for submittal to the Department of Water Resources in December 2026.  The total cost for Addendums A and B is $36,752.59.

There is no impact to the General Fund.  The Utility Authority's adopted FY 2026-2027 budget has sufficient funds for the expense of $36,752.59 within the Operations and Maintenance Budget.