Sunnyvale Cleanwater
Program:
Program Update
Council Study Session
November 1, 2022
2City of Sunnyvale – Program Update – November 2022
Water Pollution Control Plant
Caribbean Drive
16.5± Acre Site
440± Acre Ponds
LandfillLandfill
Approx. Scale: 1” = 7000’
Pond Facilities
3City of Sunnyvale – Program Update – November 2022
2006 2008 2010 2012 2014 2016
2008-10
2010-112006 2013-16
Condition Assessment
Strategic
Infrastructure Plan
Peer Review
Strategic
Planning Workshop
Master Plan
2012
Sunnyvale Cleanwater Program: Planning
4City of Sunnyvale – Program Update – November 2022
Sunnyvale Cleanwater Program: Drivers
5City of Sunnyvale – Program Update – November 2022
Sunnyvale Cleanwater Program: Projects
CAS-1
Plant Rehab
Cogen
CAS-2
Future Tertiary
Future Solids
6City of Sunnyvale – Program Update – November 2022
Primary
Tertiary
Sunnyvale Cleanwater Program: Phase 2
Secondary
7City of Sunnyvale – Program Update – November 2022
Challenges
Road ahead
Accomplishments
Sunnyvale Cleanwater Program Update
8City of Sunnyvale – Program Update – November 2022
Caribbean Drive Parking and Trail Access
Enhancements
9City of Sunnyvale – Program Update – November 2022
Site Preparation Package
10City of Sunnyvale – Program Update – November 2022
Secondary Treatment/Dewatering
11City of Sunnyvale – Program Update – November 2022
Plant Rehab
12City of Sunnyvale – Program Update – November 2022
Perimeter Wall
• JOINT WALL
• CITY WALL
• STAGE 1 WALL
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Accomplishments
Road ahead
Challenges
Sunnyvale Cleanwater Program Update
14City of Sunnyvale – Program Update – November 2022
Headworks/Primary Treatment
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Pipeline Rehab and Replacement
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Cleanwater Center
CAS-1
Plant Rehab
Cleanwater Center
CAS-2
Primary
17City of Sunnyvale – Program Update – November 2022
Project Adopted Budget Estimated Cost Variance
Primary/Headworks $123M $123M --
CWC Stage 1 (site work) $5M $5M --
Plant Rehab $73M $77M $4M
Secondary & Dewatering $274M $358M $84M
Total $475M $563M $88M
Cleanwater Program Cost— Active Projects
18City of Sunnyvale – Program Update – November 2022
Agency Project Engineer’s
Estimate
Low Bid
Central San Solids handling
improvements
$140M $180M
Union Sanitary
District
Aeration basin
modifications
$63M $121M
EBMUD Orinda WTP
Disinfection
$221M $268M
Palo Alto Secondary
treatment
upgrades
$118M $162M
Bay Area Construction Market (2021-present)
19City of Sunnyvale – Program Update – November 2022
2021
13%
2022
8%
2023
7%
2024
4.5%
2025+
4%
Cleanwater Program Cost— Escalation
Information from Leland-Saylor Associates
20City of Sunnyvale – Program Update – November 2022
Projects Adopted Budget Estimated Cost Variance
Programmatic $130M $166M $36M
Active Design and Construction $475M $563M $88M
Future Phase 2 $5M $7M $2M
Phase 3 $51M $68M $17M
Phase 4 $219M $359M $140M
Phase 5 $27M $44M $17M
Subtotal $907M $1,207M $300M
CWC Stage 2 (office/lab building) -- $56M
Other Unfunded -- TBD
Cleanwater Program Cost— All Projects
(with higher inflation factors applied)
21City of Sunnyvale – Program Update – November 2022
Financing the Largest Project in City History
Foundation: Council Policy
• 7.1.1 Long Range Goal XI: To prudently utilize the issuance of debt to minimize costs, maximize cash flow, and/or ensure that future users are responsible for costs as appropriate.
• Utility Fund Policies 7.1.1 I1b.5: Bonded debt financing should be used for capital improvements as appropriate to:
Make cost recovery of an asset more consistent with its useful life Equitably assign cost over multiple generations of customers who use the assets
Smooth near-term rate impacts of the project
22City of Sunnyvale – Program Update – November 2022
$650 Million in Low Interest Loans
Clean Water State Revolving Fund Loan Round 1
$127.1 M at 1.7% Interest, $4 M in loan principal forgiven Financed Primary Treatment and Headworks (Phase 1)
Water Infrastructure Financing and Innovation Act Loan
$220.6 M at 1.56% Interest
Favorable debt service structure with interest only through 2053 Financing a portion of Secondary Treatment (Phase 2)
Clean Water State Revolving Fund Loan Round 2
$302.1 M at 1.6% Interest
Financing the remainder of the Secondary Treatment
23City of Sunnyvale – Program Update – November 2022
Debt Service Payments
$0.0M
$10.0M
$20.0M
$30.0M
$40.0M
$50.0M
$60.0M
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2053
2054
2055
2056
2057
2058
2059
2060
SRF Round 1 WIFIA SRF Round 2
24City of Sunnyvale – Program Update – November 2022
Estimated Future Sewer Rate Increases
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
2021 2026 2031 2036 2041
Current Rates Revised Rates
25City of Sunnyvale – Program Update – November 2022
Debt Service Coverage (min 1.2x)
0.0 0.5
1.0 1.5
2.0 2.5
3.0 3.5
4.0 4.5
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Debt Service Coverage Ratio Minimum Coverage
26City of Sunnyvale – Program Update – November 2022
Challenges
Road ahead
Accomplishments
Sunnyvale Cleanwater Program Update
27City of Sunnyvale – Program Update – November 2022
Cleanwater Program Drivers
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Capacity
Cleanwater Program Drivers
• Timing of projects
• Size of projects
• Selection of projects
29City of Sunnyvale – Program Update – November 2022
Regulations
Cleanwater Program Drivers
• Nutrient Hard Cap Limits
• PFAS
Removal from potable
water supply
Pretreatment of industrial
discharge
Treatment at WPCP
Biosolids disposal
limitations
30City of Sunnyvale – Program Update – November 2022
Condition
Cleanwater Program Drivers
• Remaining life before
failure
• Reliability
• Safety
31City of Sunnyvale – Program Update – November 2022
Cleanwater Program Approach
Cogen Design New cogen
facility
Master Plan
Update
Set of projects
• Technical concepts
• Cost
• Schedule
32City of Sunnyvale – Program Update – November 2022
• November 2022 – Award Secondary Treatment,
Thickening and Dewatering construction contract
• January 2023— Award Plant Rehabilitation
construction contract
• February 2023— Award Master Plan Update/Cogen
design contract
• June 2023— Capital projects budget
Next Steps
33City of Sunnyvale – Program Update – November 2022
2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 PHASE 1
Headworks & Primary
Treatment
Existing Plant Rehabilitation
Perimeter Wall
Pipeline Rehabilitation
PHASE 2
Site Prep
Secondary Treatment Stage 1
Remaining Phase 2
PHASE 3
Master Plan Update
Cogeneration Upgrade
Remaining Phase 3
Phase 4
Phase 5
Sunnyvale Cleanwater Program: Schedule
Commission
Design Construction
Design
Design
Construction
Construction
Construction
Design Construction
Commissioning
Planning
Design Construction
Design / Construction / Commissioning
Design / Construction / Commissioning
Design / Construction / Commissioning
34City of Sunnyvale – Program Update – November 2022
Questions?
Thank you!
35City of Sunnyvale – Program Update – November 2022
Original assumptions:
• Budgets are based on 2% annual escalation.
• Engineering services during construction were
benchmarked at 3% of the contractor’s bid.
• Construction management costs have not been
updated.
Cleanwater Program Cost— All Projects