By Theresa Miller
This article is a follow-up to “Here’s How the Lampson Well Project Grew to $8.1 Million.”
The Lampson Well Treatment project’s proposed FY 2025-26 budget was $4.45 million but has now grown to $8.6 million in the proposed FY 2026-27 budget. That naturally raises a broader question: how reliable are the cost estimates for the City’s remaining Water and Sewer Capital Improvement Projects (CIP)?
A comparison of selected CIP projects appearing in both the City’s FY 2025-26 and FY 2026-27 budgets shows most project estimates have changed very little, even though pricing, engineering, construction management, contingency, and other support costs can materially affect project costs over time.
The Lampson project showed how significantly costs can change once a project moves closer to construction and goes out to bid.
The following comparisons show most project estimates used in the City’s budgets and water/sewer rate planning changed very little from 2025 to 2026:
• Bolsa Chica Water Well Rehabilitation: $4.0 million, no change
• Sunset Aquatic Park Pump Station & Force Main Upgrade: $2.7 million, no change
• Boeing Pump Station Improvements: $1.7 million, no change
• Beverly Manor Pump Station Rehabilitation: $8.0 million, no change
• LCWA Water Main Lining: $2.5 million, no change
• Navy Reservoir Rehabilitation: $1.8 million to $2.0 million (roughly 11%)
• Adolfo Lopez Pump Station & Force Main Upgrade: $2.0 million to $2.7 million (35%)
Many of these projects are also expected to be financed through future loans. As the Lampson project showed, estimates that are not regularly updated can lead to substantially higher project costs, larger loans, and higher interest payments for ratepayers. That makes it even more important to keep project estimates used in budgets, financial planning, and rate studies as current and accurate as possible.
For example, the original $4.45 million Lampson loan was projected to cost roughly $1.7 million in interest over 20 years. If the loan amount increases to $8.1 million at a similar interest rate, total interest payments would increase to roughly $3.1 million.
That does not necessarily mean the selected CIP project estimates listed above are inaccurate. However, it does raise reasonable questions about how current the estimates are, whether future cost increases have been fully factored in, and how much confidence ratepayers should place in project budgets used for financial planning and future rate studies. These are issues the City Council should ask staff to address.
Theresa Miller is a Seal Beach resident.