San Jose City Council
March 24, 2026

Capital Improvement Program Update
San José City Council
March 24, 2026
Mariana Chavez - Vazquez, RWF General Manager,
Environmental Services Department
Kapil Verma, Deputy Director,
Environmental Services Department
2 CIP Overview
January 2025 Council Study Session Highlights
 Reviewed CIP from Plant Master Plan to Date
– $1.2 billion in projects delivered to date
– Celebrated project successes
– Experienced and grew through challenges
 Discussed Key Challenges Ahead
– Scope evolution and construction escalation
– New nutrient regulations
– Aging asset conditions
 Next Steps
– Complete Technical Update
– Update financing strategy to align with
technical and programmatic requirements

CIP Accomplishments
-

$1.2 Billion Delivered
Key Projects Completed Over the Past Decade
3Headworks 3 Facility (2024)
Cogeneration Facility (2020)
Digested Sludge Dewatering Facility (Sep 2026)
Digester and Thickener Facilities Upgrades (2022)

4 CIP Overview
Major Process Treatment Areas
Preliminary
Treatment
Primary Treatment
Secondary Treatment
Tertiary Treatment
Power and Energy
Systems (Plantwide)
Facilities (Plantwide)
Solids Handling
and Treatment

5 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Preliminary Treatment
–

Reliability Achieved
5  Completed Projects
– Headworks Critical Improvements ($2.4m)
– Headworks ($167.8m)
 Benefits
– Downstream treatment processes protected
– Aging infrastructure concerns addressed
– Improved reliability and capacity
– No additional reinvestment needed this decade
2024 DBIA National Award of Merit and Excellence
Headworks 3 Facility

6 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Primary Treatment
–

New Area of Focus
6  Completed Projects
– Iron Salt Feed Station ($8.3M)
 10-Year Capital Priorities
– Primary Clarifier Rehabilitation Phase 1 ($118.8m)
– Primary Effluent Pump Station Rehabilitation ($61.7m) – Primary Effluent Equalization Basin ($39.0m)
 Benefits
– Maintain structural integrity
– Improve process reliability
– Reduce odor impacts
West Primary Clarifiers Influent Gate
East Primary Clarifiers Effluent Weir
7 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Secondary Treatment
–

New Nutrient Limits
7  Completed Projects
– Blower Improvements ($48.6m)
– Nitrification Clarifiers Rehabilitation Phase 1 ($51.1m)  10-Year Capital Priorities
– Aeration Basin Modifications Phase 1 ($332.3m)
– Secondary Clarifier Rehabilitation ($135.8m)
 Benefits
– Meet more stringent nutrient limits
– Improve process efficiency and reliability
– Rehabilitate assets and address safety issues
BNR1
Clarifiers
Aeration Basin and Diffusers
Aeration Basin Decks and Walkways
8 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Tertiary Treatment
–

Strategic Rehabilitation
8  Completed Projects
– Filter Rehabilitation ($59.7m)
 10-Year Capital Priorities
– Additional Filter Improvements ($34.3m)
 Benefits
– Extend filter life and defers major replacement
– Maintain discharge compliance
Tertiary Filtration Complex
New Filter Media Installation

9 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Solids Treatment
–

Biosolids Management Transition
9  Completed Projects
– Digester and Thickener Facilities Upgrade ($217.8m)
– Digested Sludge Dewatering Facility ($177.1m)
 10-Year Capital Priorities
– Additional Digester Facility Upgrades ($223.4m)
– Access to Lagoons and Drying Beds ($6.4m)
 Benefits
– Improved reliability and energy recovery
– Transition away from drying beds
– Reduced odor impacts
Digested Sludge Dewatering Facility
Digesters Rehabilitation

10 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Power & Energy
–

Ongoing Resiliency Planning
10  Completed Projects
– Cogeneration Facility ($113.1m)
– Advanced Facility Control and Meter Replacement ($25.2m) – Plant Electrical Reliability Projects ($25.2m)
– Emergency Diesel Generators ($18.0m)
– Digester Gas System Projects ($18.0m)
 10-Year Capital Priorities
– Pending results of ongoing Emergency Power Study
 Benefits
– Improved outage resilience
– Reduced grid dependence
Cogeneration Facility
Emergency Diesel Generators

11 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Facilities & Infrastructure
–

Managing Safety and Compliance Risks
11  Completed Projects
– Yard Piping Improvements ($33.5m)
– Miscellaneous Infrastructure Improvements ($13.0m)
– Storm Drain System Improvements ($11.6m)
– Outfall Channel and Instrument Improvements ($10.3m)
– Fire Life Safety Upgrades ($8.3m)
 10-Year Capital Priorities
– Pump Station Improvements ($145.0m)
– Facility Wide Water Systems Improvements ($92.3m)
– Building Improvements ($92.6m)
– Infrastructure Improvements ($74.2m)
 Benefits
– Extend life of critical infrastructure
– Reduce risk of major system failures
– Improve site safety and compliance reliability
New Outfall Weir
Yard Piping Failure

12 Ten Year Capital Plan (
FY
20 26
-
20 36
)
Funding Outlook and Management
–

Actual and Forecasted Cashflow
12 Path Forward
 Focused on rehabilitating aging assets, meeting regulatory requirements, and maintaining operational reliability
 Manage funding and financing strategies to balance program and ratepayer impacts
 Identify projects for federal and state funding opportunities  Return to TPAC/City Council for project awards and annual budget approvals
13