CITY OF SAN MATEO
City Council Special Meeting
March 2, 2026
6:00 PM
City Hall Council Chamber
Entrance is on O’Farrell Street
COUNCIL MEMBERS
Adam Loraine
Nicole Fernandez
Danielle Cwirko-Godycki
Lisa Diaz Nash
Robert Newsom Jr.
AGENDA
THIS MEETING CAN BE ATTENDED IN PERSON OR REMOTE BY JOINING ZOOM – SEE CODES BELOW.
PUBLIC COMMENTS WILL BE ACCEPTED BOTH IN PERSON AND REMOTELY .
SEE END OF AGENDA FOR OPTIONS AND INSTRUCTIONS ON HOW TO PARTICIPATE IN THE MEETING.
To join via Zoom – click here:
March 2, 2026
To join via telephone: (408) 638-0968
Webinar ID: 847 3834 4874 Passcode: 664961
CALL TO ORDER
Roll Call
AB 2449 Requests and Considerations for Meeting Participation by Teleconference due to Just Cause or Emergency Circumstances
CLOSED SESSION
The public will have an opportunity to comment before the consideration of this item. Following the meeting a report of action from Closed Session will be provided if required.
1. Conference with Legal Counsel — Existing Litigation, Workers' Compensation (Paragraph (1) of subdivision (d) of Government Code Section 54956.9 Name of the case: Victoria Varvel
STUDY SESSION
The public will have an opportunity to comment during the consideration of this item.
2. Clean Water Program and Wastewater Treatment Plant Upgrade and Expansion — Update Receive an informational update on the Clean Water Program and the Wastewater Treatment Plant Upgrade and Expansion project.
CEQA: The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.
ADJOURNMENT
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AGENDAS:
Agendas and material are posted on the City’s website on the Friday preceding each Council Meeting and can be viewed on the City's website at
www.cityofsanmateo.org
. Any supplemental material distributed to the Council after the posting of the agenda will be made part of the official record.
WATCHING A MEETING ON TV:
City Council meetings are broadcast live on Comcast/channel 27, Wave/channel 26, or AT&T/channel 99.
For transmission problems during the broadcast, please call (650) 522-7099. For all other broadcast comments, call (650) 522-7040, Monday-Friday, 8 a.m. - 5 p.m.
WATCHING A MEETING ON A COMPUTER:
There are three ways to stream.
1) Public Meeting Portal
www.cityofsanmateo.org/publicmeetings
2) City YouTube channel and stream it on YouTube:
http://youtube.com/CityofSanMateo
3) Watch TV live stream:
https://www.cityofsanmateo.org/193/Channel-San-Mateo-Live-Stream
PUBLIC COMMENTS/REQUEST TO SPEAK
Prior to the Meeting
Send comments to:
[email protected]
until 4 p.m. the day of the meeting.
During the meeting
By Zoom:
Click the link at the top of the agenda and you’ll be added to the meeting. All attendees are muted by default. When the item of interest is open for consideration, select the “Raise Your Hand” icon and you will be called on at the appropriate time.
By telephone:
Call (408) 638-0968 and enter the conference ID found at the top of the meeting agenda. When the item of interest is open for consideration, select *9 to raise your hand. When called upon, press *6 to unmute, state your name and provide your comments.
In Person:
At the meeting complete a “Request to Speak” form. Organized Group and Presentations: Up to five (5) minutes for a group presentation, with as many speakers as can be accommodated within that time allowance. To qualify for a group presentation, all individuals associated with the presentation must be clearly identified and confirmed as in attendance at the meeting. Presentation materials must be submitted to [email protected] one (1) business day in advance of the meeting.
ACCESSIBILITY:
In compliance with the Americans with Disabilities Act to ensure meaningful access for all participants, including those with limited English proficiency, individuals requiring special accommodations or language assistance to participate in this meeting may contact the City Clerk’s Office at (650) 522-7040 or [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
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CITY OF SAN MATEO
CITY OF SAN MATEO
Agenda Report
City Hall
330 W. 20th Avenue
San Mateo CA 94403
www.cityofsanmateo.org
Agenda Number: 2 Section Name: STUDY SESSION Account Number: 72-4674 File ID: 26-10900 TO: City Council
FROM: Alex Khojikian, City Manager
PREPARED BY: Public Works Department
MEETING DATE: March 02, 2026
SUBJECT:
Clean Water Program and Wastewater Treatment Plant Upgrade and Expansion — Update RECOMMENDATION:
Receive an informational update on the Clean Water Program and the Wastewater Treatment Plant Upgrade and Expansion project.
BACKGROUND:
The City is currently under a Regional Water Quality Control Board Cease and Desist Order requiring improvements to its sewer collection system and Wastewater Treatment Plant (WWTP) to eliminate sanitary sewer overflows and unauthorized discharges of untreated or partially treated wastewater to San Francisco Bay. The Clean Water Program (CWP) is a $1 billion program that started in 2015 to comply with the Cease and Desist Order. The CWP includes numerous capital improvement projects that have either been completed, are currently under construction, or are soon starting construction. The projects include improvements to sewers, manholes, and pump stations, the new Underground Flow Equalization System (located at the San Mateo County Event Center), and improvements at the WWTP. The WWTP Upgrade and Expansion Project (WWTP Project) is the largest of these CWP projects, which will result in new liquid treatment facilities for processing wastewater required to meet regulations.
Since the CWP projects were chartered, CWP’s project budgets, including the WWTP Project, considered the costs associated with administrative services, program/project controls, project management, preliminary evaluations, engineering services, procurement, construction contracts, construction management, permits, outreach, risk contingencies, and escalation. A strategic funding and financing plan to deliver the CWP was executed and included raising sewer rates over several years, issuing bonds, and pursuing loans. The CWP successfully received three low-interest rate loans from State and/or Federal programs. These loans were able to reduce the fiscal impact of the City’s investment in the sewer infrastructure on the San Mateo rate payers. In June 2023, Council approved annual 3 percent inflationary sewer rate increase for five years, starting in Fiscal Year 2023-24; without the low-interest rate loans, sewer rate increases would have been higher.
Currently, staff anticipates completing the overall Clean Water Program at the end of this calendar year. In 2017, the CWP’s project budgets were baselined and the CWP’s estimate at completion was $991 million. In February 2025, Council received an updated $1.028 billion CWP estimate at completion, based on the best available information at the time.
Between February 2025 and June 2025 when Council adopted the 2025/26 capital budget, the estimate at completion went down to $1.025 billion. Due to risks, changes, delays, and unknowns identified over the past year, the CWP’s current estimate at completion has increased to approximately $1.035 billion. The new budget represents an overall increase of
4.4% from the original program budget in 2017 and can partially be attributed to the Covid 19 pandemic, a period of historic inflation, and significant material shortages due to supply chain interruptions, but overall is still a reasonable increase for a program of this size. This increased estimate does not require an adjustment to the currently approved 5-
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CITY OF SAN MATEO
year sewer rate increase schedule.
In February 2025, staff also provided Council with details of the WWTP Project, which included construction progress updates, causes for delays and budget increases, and updated schedules. At that time, the WWTP Project budget and estimate at completion was $597 million. Due to risks, changes, delays, and unknowns identified over the past year, the WWTP Project’s current estimate at completion has increased by approximately $5.9 million and is now $603 million, which is still subject to change. Construction has been challenging while still progressing forward. Since February 2025, the Project has required several significant changes, including changes related to SCADA monitoring system programming, force main configuration at the headworks, flow equalization conversion, chlorine contact basin lighting, tower crane overrun, stormwater pollution prevention, power backup for critical controls as well as the associated soft costs for inspection, construction management, insurance, and engineering services. As a result of the realized and potential change orders, as well as schedule challenges, construction expenditures are expected to exceed the previously anticipated estimate at completion for the Project.
To ensure there is sufficient funding to complete the WWTP Project, staff will be proposing a $5.9 million budget increase in the coming Fiscal Year 2026-27 Capital Improvement Program to fund the completion of the WWTP Project; this increase will align the budget committed to the project account with the WWTP Project’s estimate at completion of $603 million. This $5.9 million increase includes costs associated with the construction contract ($3.85 million) and extended soft costs ($2.05 million). The $3.85 million budget request associated with the construction contract is inclusive of known changes and risks, potential delay costs, potential future risks and changes, and contingencies. The $2.05 million budget increases associated with the extended soft costs include project management, construction management, specialty inspections, owner-controlled insurance program, and engineering services during construction. The $5.9 million budget increase is based on information known today and is subject to change as the project progresses closer to completion and as the project team further evaluates potential costs such as those related to project delay. Staff anticipates the WWTP project will be complete by June 2026.
The program also anticipates a potential net budget increase for the collection system projects of $2.51 million that is attributed mostly to the increased cost of mechanical vault repairs at the Underground Flow Equalization System and resolution of standby generator issues at the Dale Avenue Pump Station, as well as projected cost increases for the remaining sewer collection system rehabilitation projects. A net increase in the cost estimated at $1.24 million is attributed to the Immediate Action Projects (IAP) Package III project due to unforeseen subsurface conditions and some closeout costs for the IAP Package II project, which are outside the main WWTP Project.
Based on the project cash flow estimates for the remainder of the current Fiscal Year 2025-26, there is sufficient budget and existing authorized construction contract contingencies to keep the projects progressing. Staff anticipates returning to Council after the Fiscal Year 2026-27 budget is adopted with requests to increase the construction contract contingencies as needed to complete the various projects in the CWP. The planned $9.65 million budget request is inclusive of the anticipated construction contract contingency amounts; however, waiting to make this request in the new fiscal year will allow the construction management team to further review all the potential construction contract changes with the intent to mitigate as much of the risk as possible and hopefully reduce the overall request.
As the Clean Water Program draws closer to completion, staff is looking to the post-CWP program of capital needs, including anticipated improvements to the solids processing facilities (portion of the old WWTP that will remain in service) as well as developing an updated Sewer Master Plan that will evaluate future condition or capacity needs within the collection system, including the many sewer pump stations, after completion of all of the CWP projects.
BUDGET IMPACT:
The budget information included in the update will be incorporated into the City's overall future Fiscal Year 2026-31 Capital Improvement Program, which will be presented to Council for approval in June.
ENVIRONMENTAL DETERMINATION:
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CITY OF SAN MATEO
The City prepared a Final Programmatic Environmental Impact Report (Final PEIR) in accordance with the California Environmental Quality Act (CEQA) (SCH No. 2015032006). Council on June 6, 2016, certified the PEIR. In accordance with CEQA, the Final PEIR serves as the primary environmental compliance document for the implementation of the Clean Water Program. The City prepared Addenda to the Final PEIR that was approved on July 16, 2018 (Addendum 1) and April 15, 2019 (Addendum 2). This work is within the scope of the Project evaluated in the PEIR and Addendum.
NOTICE PROVIDED
All meeting noticing requirements were met.
ATTACHMENTS
None
STAFF CONTACT
Thomas W. Williams, Engineering Manager
[email protected]
(650) 522-7307
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Update to
San Mateo City Council
By Public Works
March 2, 2026
1 Clean Water Program and Wastewater
Treatment Plant Upgrade & Expansion
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• Clean Water Program Overview and Update
• Wastewater Treatment Plant Upgrade & Expansion Update 2 Agenda
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Clean Water Program - Driver & Goals
Replace aging
infrastructure and
facilities
Build wet weather
sewer system capacity
assurance to prevent
overflows
Meet current and
future regulatory
requirements
Align with the City of
San Mateo and Foster
City’s sustainability goals
Driver: Regional Water Quality Control Board issued 2009 Cease & Desist Order to the City of San Mateo, Town of Hillsborough, and the Crystal Springs County Sanitation District requiring the elimination of sanitary sewer overflows (SSOs)
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Post
CWP
Clean Water Program Schedule Highlights
4 Recurring WWTP and Collection System Rehabilitations and Repairs WWTP & Collection System Capacity Improvements
Start WWTP
Upgrade & Expansion
Construction
2019
WWTP Upgrade & Expansion
New Facilities in Service &
Project Closeout
2026
Start UFES
Construction
2020
UFES Project
Closeout
2026
Program
Closeout
2026
2019 2020 2021 2022 2023 2024 2025 2026 2027
Finish WWTP Upgrade &
Expansion Construction
2026
Clean Water
Program
Initiated
2015
Budget
Baselined
2017
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Clean Water
Program
5 • ~$1 billion, 10-year effort
• Wet Weather Management
• Collection System
Rehabilitation and Capacity
Improvements
• WWTP Upgrades
• Nutrient Removal
Note: Image shown displays the estimated
scope during April 2018.
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Status of CWP
Capacity
Improvements
COLOR LEGEND
Projects Completed
Projects in Construction
Projects in Design
Notes:
Some project segments were eliminated
due to design optimizations.
Status of projects shown as of February
2026.
6 Rev. 03/03/2022
92 UFES
101
ECR
DAPS WWTP
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Expansion -
Treatment
Process Facility
Existing WWTP
East 3rd Ave.East 3rd Ave.
Detroit Dr.Detroit Dr.
SF BaySF Bay
Objectives
• Replace the existing liquids treatment process
with a new facility:
• Headworks, primary sedimentation, secondary
treatment (biological nutrient removal), tertiary
(membrane bioreactors), equalization basins
• Achieve early actor status on nutrient removal
• Increase wet weather management to 78
million gallons per day
• Title 22 ready / future recycled water
WWTP Upgrade & Expansion
Largest Capital Improvement Project in the History of the City
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9 Excavation May 2020
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10 New Headworks
Fine Screens
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11 Primary Clarifiers
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12 Biological Nutrient Removal (BNR)
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Membrane Bioreactor (MBR)
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14 BioActiflo
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15 WWTP SCADA Control Room
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16 Ribbon Cutting September 24, 2025
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17 New Administration Building
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18 WWTP Upgrade & Expansion
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19 Wastewater in BNR process
Water Sample from the
Membrane Bioreactor (MBR)
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20 WWTP Effluent Comparison
Existing Effluent BioActiflo Effluent MBR Permeate
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CWP 2017 BASELINE vs ESTIMATE AT COMPLETION (EAC)
UPDATEClean Water Program Projects Original 2017
Budget Current EAC Variance %
Variance
Program Management Clean Water Program $ 85,092,559 $ 70,292,204 $ (14,800,355) (17.4%) Basin 2 & 3 Collection System Improvements $ 150,269,411 $ 167,561,559 $17,292,148 11.5% East SM Sewer Lift Station Improvements $ 23,635,177 $ 26,097,536 $2,462,359 10.4% Annual Sewer Rehabilitations $ 53,105,656 $ 58,042,920 $4,937,264 9.3% Sewer CCTV Inspection $ 4,904,937 $ 5,873,987 $969,050 19.8% Other Collection System Projects $ 26,885,605 $ 25,868,407 ($1,017,198) (3.8%) WWTP Immediate Action Proj (IAP) Package 1 $ 21,678,855 $ 18,621,628 ($3,057,227) (14.1%) WWTP IAP Package 2 $ 13,021,372 $ 14,838,328 $1,816,956 14.0% WWTP IAP Package 3 $ 2,469,442 $ 21,758,410 $19,288,968 781.1% WWTP Annual Major Components $ 8,919,114 $ 19,998,036 $11,078,922 124.2% WWTP Upgrade & Expansion $ 532,708,966 $ 603,372,165 $70,663,199 13.3% Other WWTP Projects $ 2,119,969 $ 2,858,296 $738,327 34.8% Program Contingency $ 66,299,227 $ - ($66,299,227) (100.0%) TOTALS $ 991,110,290 $1,035,183,476 $ 44,073,186 4.4%
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WWTP Upgrade & Expansion
Reviewing and Negotiating Known & Potential Changes/Risks Construction Costs/Risks (~$18.5M less $14.65M
Available Owners Contingency = $3.85M):
• Force mains configuration at headworks
• Flow equalization (FEQ) conversion and valve pit
differing site conditions
• HVAC material and labor escalation
• Stormwater pollution prevention (SWPP)
• Stormwater storage tank level controls
• Lighting at chlorine contact basins
• SCADA monitoring system programming
• UPS power for critical controls
• Tower Crane overrun
• Time impacts
• Additional risk contingency
Soft Costs due to Extended Schedule (~$2.05M):
• Project management
• Construction management
• Consultant support for analyzing time impact
requests
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WWTP Upgrade & Expansion
Estimated Construction Contract Cost at Completion
Values based on available cost data as of February 9, 2026 Package/Phase Award Date
Awarded
Contract
Amount
Council
Authorized
Contingency
Potential
Contingency
Needed in
Future
Potential
Cumulative
Contingency
Potential
Construction
Contract Amount
1 - Site Preparation May 2019 $ 33,098,178 $ 1,725,000 $ 0 $ 1,725,000 2 - Foundation May 2020 $ 17,716,049 $ 1,645,000 $ 0 $ 1,645,000 3 - Process Facilities Sep 2020 $ 379,880,747 $57,823,702 $ 3,850,000 $ 61,673,702 TOTALS $430,694,974 $61,193,702 $3,850,000 $65,043,702 $495,738,676
14.2% 15.1%**
* The Potential Contingency amount is included in the ~$5.9 million FY 26-27 budget request for the WWTP Upgrade & Expansion project.
** For CIP Construction Contracts, a contingency amount equal to 10% of the construction contract is typically authorized.
For contracts with higher risks, contingencies of 20% have been authorized.
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Upcoming WWTP Construction Key Milestones
Dates Subject to Change
Plant Performance Testing Ongoing to March 2026
New Processes Operational March 2026
Conversion of Existing Aeration Basins March 2026 to May 2026 Finish Remaining Site Work May 2026
Project Close Out May to June 2026
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Project Name Current Committed
Budget
26-27
Proposed Total Project Budget
Program Management Clean Water Program $ 70,614,000 $(321,796) $ 70,292,204 Collection System SCADA $ 2,042,065 $(336) $2,041,729 East SM Lift Station Improvements $ 26,088,421 $9,115 $26,097,536 Basin 2&3 Collection System Improvements $165,597,185 $1,964,374 $167,561,559 Basin 4 Collection System Improvements $ 2,888,000 $(100,570) $2,787,430 Sewer Flow Monitoring & Hydraulic Modeling $ 490,000 $(28,236) $461,764 Annual Sewer Rehabilitations $ 57,020,000 $1,022,920 $58,042,920 Sewer CCTV Inspections $ 5,910,000 $(36,013) $5,873,987 WWTP Upgrade & Expansion $ 597,457,000 $5,915,165 $ 603,372,165 WWTP IAP Package II $14,695,372 $142,956 $14,838,328
WWTP IAP Package III $18,826,825 $2,931,585 $21,758,410 WWTP Annual Major Components $ 21,846,000 $(1,847,964) $19,998,036 TOTAL $9,651,200 $1,035,183,476
Note: Only project accounts associated with the Clean Water Program that have anticipated budget requests are shown.
UPCOMING BUDGET REQUESTS FOR CWP PROJECTS
Subject to Revisions
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History of Economic and Financial Strategy
FY 16/17: 12% Sewer Rate Increase (100% Usage Based Rate Structure) Agreement with Estero Municipal Improvement District/Foster City FY 17/18: 36% Rate Increase (100% Usage Based Rate Structure) FY 18/19 to 22/23: 5-Year Rate Increases (12% to 14%) & Restructured with 50% Fixed Rate $270M Wastewater Revenue Bonds (SM/FC)
$277M WWTP EPA WIFIA Loan (SM/FC)
$85M Collection System WIFIA Loan (SM Only)
$137M WWTP State Revolving Fund Loan (SM/FC)
Agreement with Hillsborough for Payment of Capital Costs FY 23/24 to 27/28: 5-year inflationary rate increases (3% per year) Agreement with County and CSCSD for Payment of Capital Costs
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CWP Wrap-up and Future Projects
Dates Subject to Change
CWP Wrap-up
WWTP Completion June 2026
Reopening Rec Path June 2026
Other minor Projects End of year 2026
New Solids Handling Projects
Rotary Drum Thickeners Project In Design, Const. FY 26/27 Digestor 1 Improvements FY 26/27
Potential New Digestor 3 TBD
Potential New Projects TBD
Sewer Master Plan Update Starting July 2026
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Thomas Williams, PE
Engineering Manager, Public Works Department
[email protected]
28 Thank you
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