Capital Budget
13 What This Plan Delivers
Strengthens flood resilience in the
Folsom and Lower Alemany areas.
Leads the region to significantly
reduce nutrient loadings to the Bay
to improve long-term water quality.
Enhances service reliability of
the Channel Force Main, which
carries 80% of wastewater flows on
the Bayside.
Upgrades the Southeast Bay
Outfall system to bolster reliability,
protect water quality, and prepare for
sea level rise.
Enhances conveyance and treatment
reliability for neighborhoods on the
City’s Westside.
Enhances citywide sewer
reliability through extensive
inspection and repair/rehab.
Focused on high-impact projects that strengthen essential infrastructure, protect neighborhoods, and enhance the health of the Bay.
Prioritization Strategy
14 This capital plan balances ratepayer
affordability, SFPUC's obligation to
maintain reliable service and meet
regulatory requirements.
Our risk-based prioritization framework
considers:
• Regulatory compliance
• Health, safety and environmental risk
• Operational reliability and risk of
failure
• Stormwater management and
climate resilience
• Seismic vulnerabilities
15 How Project Deferrals Were Made
Deferrals were informed by the prioritization framework and focused onmaintaining planning and information-gathering work so projects can move forward when financially feasible.
Examples:
1. Southeast Plant South Campus Facilities
Environmental planning will continue to preserve flexibility and support informed decisions.
2. Judah Street Twin Sewer Construction Project
Monitoring and coordination with SFMTA will continue.
3. Pump Station and Force Main Rehabilitations
A near-term condition assessment effort will better inform the need, scope and timing and help prioritize future investments.
Appropriation: FY27-36 Capital Plan
16 FY26-27 FY27-28 FY28-29 FY29-30 FY30-31 FY31-32 FY32-33 FY33-34 FY34-35 FY35-36 Campus Improvements
Program Management
Stormwater Management
Ocean Beach
Nutrient Reduction
Biosolids Digester Facilities
Major Force Main Reliability
Operational Reliability
R&R Treatment
R&R Collection
10-Year Total Request: $5.92B | Total Appropriation in Two-Year Budget: $1.20B Major Projects
18 SEP Nutrient Reduction
• San Francisco Bay experienced harmful algal
blooms and fish kills in 2022 and 2023.
• To meet permit requirements from the San
Francisco BayRegional WaterQuality
Control Board, the project adds treatment
infrastructure at the Southeast Plant to
significantly reduce nutrient discharges from
the plant to the San Francisco Bay.
• A Progressive Design-Build contract is on
track to be awardedin Spring 2026.
August 2022 Algal Bloom (NOAA/NCCOS)
Total Project Budget: $1.47B | Appropriations in FY27-36: $1.42B
19 Lower Alemany and Folsom
Stormwater Improvement Projects
• Projects help meet the San Francisco Bay
Regional WaterQuality Control Board Clean-
Up and Abatement Order and provide sewer
improvements for additional stormwater
storage and conveyance.
• The Lower Alemany project includes
construction of a new sewer tunnel and
other improvements.
• The Folsom project includes construction of
a new sewer tunnel, enlargement of a sewer
box, and other improvements.
Lower Alemany: Total Project Budget: $364M | Appropriations in FY 27-36: $251M Folsom: Total Project Budget: $442M | Appropriations in FY27- 36: $271M
20 Major Force Main Reliability Projects
Major Force Main (FM) projects include:
1. Channel FM Inspection
and Rehabilitation – Southern
Section
2. Channel FM Reliability
3. Westside FM Reliability – Design
and Construction
Channel Force Main and Westside Force
Main are critical to conveying flows to the
Southeast and Oceanside Plants,
respectively.
Total Budgets (three projects): $655M | Appropriations in FY27-36: $598M
21 Renewal & Replacement (R&R) Projects
• The R&R projects for the collection system and
treatment facilities perform many in-kind repair,
rehab or replacement projects each year.
• R&R projects enable WWE to quickly and
efficiently address more straightforward needs to
keep the system functioning and reliable.
• Proactive, ongoinginvestments inroutine repair
and rehabilitationhelp minimize the needfor more
costly capital projects.
Collection System R&R Appropriation for FY27-36: $1.29B Treatment Facilities R&R Appropriation for FY27-36: $286M
22 SE Bay Outfall & SEP Booster Station Replacement
• Southeast Bay Outfall is a critical
asset that conveys final effluent
from Southeast Treatment Plant
to the Bay.
• This project replaces the outfall
to ensure reliable operations,
protect water quality in San
Francisco Bay, and align with the
City’s long-term waterfront
adaptation plans for sea level
rise.
Total Project Budget: $1.98B | Appropriations in FY27-36: $154M
23 Ocean Beach Climate Adaptation
• This project develops comprehensive
shoreline protection to address erosion
threatening critical wastewater assets
including the Lake Merced Transport/
Storage facility, Westside Pump Station
and Force Main, and Oceanside
Treatment Plant.
• As part of compliance with
requirements set byCalifornia Coastal
Commission, the project includes
constructing 3,000 feet of buried sea
wall with coastal multi-use trail and
beach access.
Total Project Budget: $253M | Appropriations in FY27-36: $184M
24 Oceanside Plant Facility-Wide Capacity
Improvements
• This project rehabs and
replaces treatment infrastructure
throughout the Oceanside Plant.
• The project begins with FacilitiesIntegration
Planning to assess the needs, including
capacity upgrades, seismic requirements
and improvements needed to maintain a
state of good repair.
• The project enhances redundancy,
enables maintenance without service
interruption, improves wet-weather and
seismic performance, and
sustains regulatory compliance.
Total Project Budget: $300M | Appropriations in FY27-36: $230M
25 Biosolids Digester Facilities Project
• Construction of core Biosolids
Digester Facilities is over 70%
complete. Process equipment
and piping, mechanical,
electrical, plumbing and HVAC
systems are being installed.
• Construction of the Biogas
Utilization Facility has begun.
• Facilities start-up and
commissioning is anticipated to
begin in 2026.
Total Project Budget: $2.84B | Appropriations in FY27-36: $93M
26 Questions?
Reference Slides
28 Wastewater Rate Forecast
FY 26-27* FY 27-28* FY 28-29 FY 29-30 FY 30-31 FY 31-32 FY 32-33 FY 33-34 FY 34-35 FY 25-36 10-Year
Avg
Retail
Rate
Change
15% 14.5% 13% 13% 12% 8% 8% 8% 5% 5% 10%
*Two years of rates will be proposed in Spring 2026
FY 28-29 and after are estimates based on 10 Year Financial Plan