The City Council on Monday, May 11, voted 4-1 to approve an agreement with Pacific Hydrotech Construction to work on the Lampson Well improvement project. The council also authorized borrowing $8.1 million from Orange County Water District Producer Well Construction Loan. The council also authorized a $3.65 million budget amendment as part of the agreement.
The project goal is to eliminate the odor that comes from the Lampson Avenue well.
District Four Councilwoman Patty Senecal cast dissenting vote. After the three-hour meeting, she argued that the council lacked information.
This item took up roughly the last half of the meeting.
The council discussed delaying the item for further consideration, but ultimately decided to deal with the item this week.
Some members of the public raised concerns about the cost of the project being greater than originally expected.
“Funding for this project is contingent on OCWD approval of the City’s updated loan request of $3,650,000, increasing the total loan to $8,100,000,” according to the staff report prepared by Kathryne Cho, deputy director of Public Works/city engineer.
“The Water and Sewer Rate Adjustment approved on August 11, 2025, was based on an assumed construction-related cost of $5,072,863. Due to ongoing industry volatility, it is recommended that the City Council authorize the additional OCWD loan amount and utilize reserves to cover the associated debt service increase,” Cho wrote.
Background
“In December 2024, the City submitted an application to OCWD for a loan through the OCWD Producer Well Construction Loan Program, in the amount of $4,450,000 over a 20-year term,” Cho wrote.
“On February 19, 2025, OCWD’s Board of Directors approved a Producers Well Construction Loan Agreement for the City of Seal Beach based on the City’s request for $4,450,000. On March 10, 2025, the City Council adopted Resolution 7623, approving the OCWD Producer Well Construction Loan Agreement in the amount of $4,450,000 for the Project,” Cho wrote.
According to the report, because of increasing construction costs, Seal Beach will need to negotiate a loan of up to $8.1 million.
“Funding for this project is contingent on OCWD approval of the City’s updated loan request of $3,650,000, increasing the total loan to $8,100,000,” Cho wrote.
