During the May 7 budget workshop, the council directed staff to put $9.3 million more money toward the Lifeguard HQ replacement project. (The council a couple of years ago set aside $4 million for the project, using funds originally earmarked for the McGaugh swimming pool replacement.) No formal vote was taken.
The Lifeguard Headquarters/Police Substation project is currently estimated to cost $15 million. (For more information, see Lifeguard HQ project update)
The workshop was the third Seal Breach budget workshop. The budget is expected to be formally approved by the City Council in June.
The Lifeguard HQ building was part of the discussion of the budget and the city’s capital improvement (construction, infrastructure, and maintenance) program. District One Councilman Joe Kalmick and District Four Councilwoman Patty Senecal both participated remotely. Few members of the public actually attended the meeting.
Lifeguard HQ
Senecal brought up the funds that had been identified by staff as available for the Lifeguard HQ project.
“We are so close to getting a huge jump on that lifeguard tower,” Senecal said.
“When you look at a capital project the size of the lifeguard tower, every year we delay, it goes up exponentially,” Senecal said.
She expressed concern that delaying the project would make it become too expensive.
“I’d like to make a recommendation that we find the additional money and we fund $10 million. Okay? And you’ve got $9.3 already identified,” Senecal said.
She also proposed putting the money in a financial instrument that bears interest.
“This is our emergency response on the beach and we’ve got to fund this project,” Senecal said.
Finance Director Arenado said the money actually was in its own fund.
“Right now, the General Fund earns the interest, but we can move the interest,” she said. Arenado said if the council deems fit, staff will move the money.
Senecal asked if there was enough consensus to give staff direction.
Senecal later said she was suggesting moving the $9.3 million staff had identified so they are locked down for Lifeguard Headquarters. She called for the money for Lifeguard HQ be in some type of interest-bearing instrument.
Arenado said she would move $1.5 million from the city’s contingency reserve to the improvement program under Lifeguard Headquarters. She said if another request is not approved, it could also be moved to improvement projects.
“The next thing we would do is speak with our auditors about how we break up our interest earnings because right now we don’t do that,” Arenado said.
Landau supported moving $9.3 million into the Lifeguard HQ project.
Kalmick said he leaned toward moving the $9.3 million and then looking for another $700,000 to reach $10 million.
According to Arenado, the money (apparently the $9.3 million) would be moved in the proposed budget.
Other discussions
• Water and sewer finances
Staff projects $22 million in the water fund at the start of the fiscal year and about $26 million in the sewer fund at the same time.
• Sewer projects
Lee said the sewer mainline program was focusing on lining the existing lines throughout Seal Beach. The next phase will focus on Hill and Old Town area sewer lines.
• Financing
Senecal expressed concern about taking on debt for small projects.
Lee said the water and sewer rate study projected $25 million in debt for 2026-27 projects.
The debt will come back to the council for approval at a future date.
