Seal Beach staff is proposing an additional $21 million in improvement projects in 2026-27. That brings the total to about $45 million, according to Public Works Director Iris Lee. The city has a $104 million five-year improvement plan. According to staff, Seal Beach has $250 million in unfunded improvement projects.
On Monday, April 13 the City Council looked at the capital improvement program. It was the first of three scheduled budget workshops on the 2026-27 Seal Beach city budget. (The third has been tentatively scheduled “if needed.”) The council did not vote on anything during the special session, which was before the regular meeting and a closed session.
The following is not a transcript, but an overview of the discussion.
A capital improvement plan is basically a plan to maintain and upgrade a city’s infrastructure, buildings, and software. Financial planning is part of that.
Public Works Director Lee led the staff presentation. The various projects involve the city’s fleet (cars, boats, and heavy equipment), the beach, buildings, streets, storm drains, water, sewer, and parks.
The money comes from the General Fund, the gas tax and other funds from the state or county, grants, special project funds, and enterprise funds—those are projects that are self-supporting based on fees for service.
Lee said some of the funds were restricted.
Lee described “funding reality” for the improvement program:
(These are paraphrases, not direct quotes.)
• Deferred maintenance is catching up with the city.
• Increasing costs
• Limited discretionary funds (in the General Fund)
• The city relies heavily on restricted funds—money that can only be spent on specific things.
• External funding is competitive.
• Enterprise funds have to remain self-sustaining.
“We cannot do everything at once,” Lee said.
“We also can’t afford to not do anything,” Lee said.
“If we fail to invest appropriately, we risk property damage, regulatory fines, infrastructure failures, and eventually higher long-term costs,” Lee said. She said city staff has prioritized highest-risk infrastructure, critical services, and quality-of-life.
She said staff was using alternative funding where it was possible and made sense. She said the city was phasing larger projects over time. She also said staff was evaluating financial and staffing capacity.
Lee said the improvement plan was not a spending program but a risk-management strategy.
General fund projects
According to Lee, some of the projects were carried over from prior years. These projects included:
• The North Seal Beach Community Center, the Americans with Disabilities Act program, and replacing the City Hall Staircase (the one in the courtyard).
• Storm drains at Galleon Way, Fifth Street, and the College Park East Stormwater Infrastructure Project.
• The San Gabriel River Trash project.
• ADA ramps for the Eighth Street and 10th Street parking lots.
• Security systems upgrades.
• Lifeguard Tower replacement.
• The pier abutment rehab.
• Improving city parks.
Lifeguard headquarters
According to Lee, the building is aging and deficient. She said the replacement was needed to comply with regulations. She argued that replacing the Lifeguard Headquarters provided long-term cost efficiency.
Risks, according to Lee, include the cost of the project, funding limits, the complexity of the project and the timing of the project.
The city has been looking at the condition of the Lifeguard Headquarters/Police substation building for years. (See “Lifeguard HQ: A look,” “A working group for Lifeguard HQ replacement?” and “Strategic Planning: Next steps” at sunnews.org.)
Marine Safety Chief Joe Bailey said the building was past its useful life. According to Bailey, there is no heat in the winter time and no air conditioning in the summertime. There are two bathrooms for lifeguard staff.
Lee provided the “conceptual” cost for the project: $15 million. The actual numbers will depend on the actual project.
Lee said the city currently has $4 million already allocated for the project.
Later, Finance Director Barbara Arenado told the council that Seal Beach had $1.7 million in insurance money.
Payment options
According to Lee, options include pay-as-you-go. According to Lee, it would take two years to have a shovel-ready project.
According to Lee, one option would be for Seal Beach to defer work on storm drain CCTV and leaning, the Lifeguard tower improvements (not Lifeguard HQ), police plumbing and roof assessment, police parking lot repaving and building renovations, the police substation HVAC, City Hall HVAC cleaning and carpet replacement, Zoeter Field and lighting, and Edison Park play equipment.
Total reduction in costs: $2.06 million, according to Lee’s slide presentation.
Lee said the list could include Lifeguard safety radios, Council Chamber improvements, additional alley work, and restroom renovations.
A hybrid option would include either debt or grants to fund $4 million of the Lifeguard headquarters project.
Lee said staff recommended solidifying a funding strategy, form a project team, initiate designing and permitting the project. Lee said Seal Beach does not have the staff to do this project and provide current service levels.
The project would have to be approved by the California Coastal Commission.
Lee said the city will need someone to guide staff through the funding strategies for the project.
Lee said the project will shape the city’s finances for years to come.
Discussion
District Four Councilwoman Patty Senecal asked Lee about the funding process for the College Park East storm drain project.
Lee said that while the money had been earmarked by Congress, Seal Beach still had to go through the Environmental Protection Agency to apply for the funds. “We are waiting for EPA to issue those guidelines so we can officially apply for those funds,” Lee said.
In response to a question from the council about Lifeguard headquarters, Lee said staff is looking at possibly building a larger building to lease out one area. She said staff estimated that the Lifeguard headquarters would be roughly 8,500 square feet. She raised the question of whether there could be another 1,000 to 1,500 square feet of commercial space that could be leased out.
Senecal asked about naming rights.
Lee said that was something the city could consider.
Turning to Lifeguard headquarters, Senecal asked if the city had prior designs for the building.
Lee said the city had an assessment of what would be considered functional for the Lifeguard headquarters. (As previously reported, Griffin Structures assessed the building in 2011 and in 2017 the company said none of the issues had been addressed.)
Senecal also asked about Sunset Aquatic Park.
Lee said that was an area near Huntington Harbour that is in Seal Beach’s jurisdiction. Lee said Seal Beach provides water and sewer for the location.
According to Lee, the small pipeline had seen a lot of blockages.
Lee said the park was mostly used by boaters.
Senecal asked why Seal Beach does not look at having Huntington Harbour or Orange County sharing the costs of the aquatic park.
According to Lee, users in that area are charged above and beyond the Seal Beach water and sewer rates.
According to Lee, Seal Beach is in conversations with Orange County to see if they are interested in taking over the park.
Senecal asked about water and sewer finances.
The information will be available at a future date.
District Three Councilwoman/Mayor Lisa Landau asked if the Lifeguard headquarters’ estimated $15 million cost included commercial space.
Lee said the commercial space would require a cost-benefit analysis to determine if that made sense.
Landau asked if that included space for the Junior Lifeguard program.
Chief Bailey said he would envision doing what the program is doing now, doing the program out of the headquarters.
Bailey said there was no additional funds specifically for the Junior Lifeguard program.
Senecal requested a more detailed spreadsheet on the five-year improvement program.
She also wanted the information available to the public on the city website.
Public comments
James Jensen asked why the city was hiring outside experts. He also raised concerns about the work at the Seal Beach Tennis and Pickleball Center. (See “Letters to the Editor,” April 9, 2026.)
He said the city wasn’t spending smart.
Teresa Miller said it was her understanding that the money for the San Gabriel River Project from Representative Dave Min’s office was not guaranteed and another representative was coming in the fall. Miller wanted to know more about the city’s risk management strategy.
Miller asked what the debt service would be under the hybrid funding options for the Lifeguard HQ.
Miller called for a three-year audit. Miller also expressed concern about funding
“We’re losing money every year we don’t spend it, unless it’s being invested,” Miller said.
According to Arenado, city funds were securely invested.
Arenado said the only way Seal Beach could apply to borrow money is if there was a revenue source that the city wasn’t tapping into.
Arenado said Seal Beach is audited every year. She said if money is not moved by council, it is not spent.
Arenado said Seal Beach received the insurance money for the pier. She said the money was set aside in the budget and could be rolled over. Lee said the scope of work for the Tennis Center was exactly what the contractor was doing. She said it was never part of the project to tear it down and build it back up.
