www.svcw.org
Treatment System
Capital Investment
Needs
Presentation to
Belmont City Council
September 23, 2025
Matthew Zucca, PE
Authority Manager
[email protected]
Matt Anderson
Chief Financial Officer
[email protected]
Introduction
SVCW Background
SVCW History
• Originally known as South Bayside System Authority
• Formed as a Joint Powers Authority in 1975
• 50-Year anniversary in November 2025
• Renamed as Silicon Valley Clean Water in 2012
• Member Agencies consist of Belmont, San Carlos,
Redwood City, and West Bay Sanitary District
SVCW Service
Area
• Service Area population of
approx. 220,000 people
• Wastewater from Member
Agencies plus Woodside and
unincorporated areas of San
Mateo County
• Collection systems owned
and operated by Member
Agencies
• SVCW operates conveyance
system and plant
Capital
Improvements
Summary of Capital Improvements
• The facility was commissioned in 1981, making
much of the treatment plant systems over 40 years
old
• Focus of SVCW CIP work has been the RESCU
program, which conveys waste to the plant
• Ongoing improvements remain at the plant
• Improvements are driven by aging infrastructure or
more stringent regulations
• Very few projects (e.g., cogeneration) are based on
return on investment or sustainability goals
2. Front of plant
New 80 MGD deep lift station, new headworks & 63-in. influent pipe
3. Pump station improvements
1 new PS, replace 1 PS, decommission 2 PS
WWTP
Map Data: Google, © 2024
1. Gravity pipeline
New 17,500 LF
13-ft dia. Tunnel with
11-ft dia. FRP Pipe
Complete the Conveyance System
4. Remaining Force Main
Conveyance Project
Plant Upgrades:
Fixed Film Reactors
• Remove BOD from
wastewater
• Original to the plant
(44 years old)
• Replaced superstructure,
fixed-film media, pumps,
and electrical
• Added fire water and
process water pumping
capacity
Plant Upgrades:
Final Effluent Pumps
• Pump treated wastewater
to SF Bay for discharge
• Original effluent pumps
(44 years old)
• Have been rebuilt several
times, but at the end of
useful life
Plant Upgrades:
Pipe Repair
• Some pipes are single
points of failure that
would result in immediate
non-compliance
• Plant-wide condition
assessment with
prioritized pipe
replacements
Plant Upgrades:
Digester and Biogas
Pipe Replacement
• Three digesters for
processing solids
• Rehabilitating spare
digester
• Replacing corroded
biogas piping
San Francisco Bay Algal Bloom
(August 2022)
• Evidence of the San Francisco bloom first appeared
near Alameda, CA in late July 2022.
• The bloom later spread to open-bay regions of
South San Francisco Bay and continued to expand
into San Pablo Bay, making this bloom the largest in
recorded history.
• Algal die-off decomposed resulting in depleted
oxygen levels in the SF Bay and the death of many
fish
• Algal bloom was attributed largely to the nutrients
in discharges from municipal wastewater treatment
plants
Plant Upgrades:
Nutrient Removal
• Regional Water Board
established nutrient
effluent limitations
• Will require treatment
plant upgrades to reduce
nutrient loads to San
Francisco Bay
• Effluent limitations affect
all 37 wastewater
treatment plants in the
Bay Area
Biogas Augmentation with Organics
• Plant will be fully operated using energy
sources generated at the plant
• $8.4 million grants from California
Energy Commission, CalRecycle, and
PG&E
• Eligible for Inflation Reduction Act
Investment Tax Credit
• Simple Payback:
• 6.4 years w/no tax credit
• 4.2 years w/tax credit
Financial Needs
Capital Expenditure Timeline
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035 SVCW Capital Expenditures
($ Millions, *adjusted to 2024 dollars)
Conveyance*
Treatment*
Pre-2008, Member Funded*
Pre-2008, Grant Funded*
Theoretical Contributions necessary to avoid borrowing
Projected
Capital Expenditure Timeline
Current
Funding
Future
Funding
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020202120222023202420252026202720282029203020312032203320342035 SVCW Capital Expenditures
($ Millions, *adjusted to 2024 dollars)
Conveyance*
Treatment*
Pre-2008, Member Funded*
Pre-2008, Grant Funded*
Theoretical Contributions necessary to avoid borrowing
Projected
$98 Million in CIP Expenditures Projected
Through FYE 2028
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
2025-26 2026-27 2027-28
Other
Nutrient Removal
Treatment Facilities
Final Effluent Pumps
Pipe Repair
Efficiency / Regulatory
Fixed Film Reactors
Majority of Funding in Place Through FYE 2028
• Requires $32.4 million cash-in-lieu of debt or use of Reserves 2021B Notes, $30.8
Accrued Working
Capital, $17.7
Stage 2 Balance, $8.3
Grants / Tax Credit,
$4.0
Cash contribs/CIP
Reserve, $32.4
New 2028 Bonds,
$5.5
Members’ Share and Funding Preferences
• Hybrid cash contribution / use SVCW CIP Reserves also available Member Share (%) Funding Preference 2025-26 2026-27 2027-28 TOTAL Redwood City 48.57% Cash $3,594,180 $8,469,679 $3,676,713 $15,740,572 West Bay Sanitary District 26.84% Cash $1,986,160 $4,680,383 $2,031,768 $8,698,311 San Carlos 15.14% Cash/SVCW Reserves $1,120,360 $2,640,126 $1,146,087 $4,906,573 Belmont 9.45% TBD $699,300 $1,647,899 $715,358 $3,062,557 TOTAL 100% $7,400,000 $17,438,087 $7,569,925 $32,408,013 Mechanism to Borrow from SVCW
Reserves
• Suggested framework for financing of Member
contribution
• Principal drawn down as needed for project funding
• Interest to accrue at % rate agreed upon by all members • Interest payments to be made monthly
• May prepay principal at any time; not later than next round of SVCW financing (FY 2028)
• Will roll remaining principal into anticipated financing Timeline and Next Steps
• SVCW will bring a policy document to Commission
in September approving the terms for inter-agency
loans from SVCW CIP reserves
• City staff will bring a report to Council at an
upcoming meeting for approval of funding plan
• Funding needed from Member Agencies Q2 FY 26
Presentation from PFM Financial Advisors
City of Belmont
Sewer Treatment Facility Charge Fund
September 23, 2025 Jaime Trejo
© PFM 26
Current Situation
SVCW communicated plans to cash fund $32.4 million in wastewater treatment plant improvements between FY2025/26 through FY2027/28
• Belmont’s 9.45% share: $3.06 million
SVCW communicated plans to debt finance approximately $60 million in wastewater treatment plant improvements in FY2028/29
Additionally, the Sewer Treatment Facility Charge Fund will make the following payments to SVCW for Pay-Go and CIP Reserve contributions
• FY 2026: $0.54m
• FY 2027: $0.57m
• FY 2028: $0.61m
• FY 2029: $0.66m
• FY 2030: $0.71m
© PFM 27
Sewer Treatment Facility Charge Fund – Cash Position
Given projected debt service requirements and cash contributions to SVCW, the Sewer Treatment Fund will fall below its nominal cash target of $3 million and is forecasted to run out of cash by FY2031/32
-$10
-$5
$0
$5
$10
$15
$20
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 Millions
Sewer Treatment Fund Net Ending Cash
Net Cash Balance Target
© PFM 28
Sewer Treatment Facility Charge Fund – Coverage
The Sewer Treatment Facility Charge Fund’s debt service coverage ratio is forecasted to drop below 100% in FY2028/29
• WIFIA debt services commences in FY2027/28
• Assumes participation in SVCW FY2028/29 debt issuance
1.07x 1.04x 1.04x
0.96x 0.96x 0.96x
0.89x
0.81x 0.81x 0.80x
0.00x
0.20x
0.40x
0.60x
0.80x
1.00x
1.20x
2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 Fiscal Years
All Debt Service Coverage
Debt Service Coverage Ratio
© PFM 29
Summary and Recommendation
Current flat fee in Sewer Treatment Facility Charge is no longer sustainable to keep up with Belmont’s ongoing capital contribution obligations to SVCW, particularly as SVCW’s CIP plan continues to develop and evolve into the future
PFM recommends that the Sewer Treatment Facility Charge be increased to a level where cash targets and debt service requirements are met
Current efforts in gathering/refining SVCW’s long-term CIP plan and analyzing appropriate level of the Sewer Treatment Facility Charge are underway; more updates to Council are anticipated in the coming fiscal year