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Council approves OCWD loan for Lampson Well odor treatment system
Summary
The Seal Beach City Council approved a loan agreement with the Orange County Water District to fund a treatment system at the Lampson Well to reduce hydrogen sulfide odors; staff said the loan is roughly $4.45 million with a 20-year term and preliminary interest rates of about 3–4 percent. Council voted 5-0.
Seal Beach City Council on March 10 approved a loan agreement with the Orange County Water District to fund construction of a treatment system at the Lampson Well intended to mitigate nuisance hydrogen sulfide odors.
Director Iris Lee said the loan would spread a one-time capital cost over a 20-year amortization and described the project as “shovel ready.” Lee said, “the loan amount is at an estimated, roughly about 4 and a half million dollars.” She added that repayments would begin one year after the project’s substantial completion date and that OCWD manages the groundwater basin from which the city produces water.
The treatment system is intended to allow Lampson Well to operate nearer its rated capacity. Lee told the council the well is currently producing roughly 500 gallons per minute while the site is rated for about 4,000 GPM, and that the proposed tanks and treatment would be placed on the existing well site with limited trenching.
In response to council questions, Lee said the technology is proven and has been used in Huntington Beach. When asked about the loan rate, she said the rate “will be determined by the, at the time that it's amortized, but, we're told roughly 3 to 4%,” and cautioned that figure was preliminary.
Councilors moved and seconded the item and voted to approve the agreement; the meeting record shows the motion carried 5-0.
The council and staff did not identify a final construction contract or firm bid amount at the time of the vote; staff said bid results will confirm the exact project cost and the city will finalize the loan amount with OCWD after soliciting construction bids.
Because the loan spreads the cost, staff told the council the city would not have to delay the project pending a separate rate increase if the council directs immediate construction. Lee said annual repayments start one year after substantial completion.
The approval directs staff to proceed with the OCWD loan agreement and to move toward construction procurement.
