Sunnyvale Cleanwater Program:
Program Update
Council Study Session
March 18, 2025
2City of Sunnyvale – Program Update – March 2025
Water Pollution Control Plant
3City of Sunnyvale – Program Update – March 2025
Sunnyvale Cleanwater Program: Drivers
4City of Sunnyvale – Program Update – March 2025
Sunnyvale Cleanwater Program: Active Projects
5City of Sunnyvale – Program Update – March 2025
Challenges
Road ahead
Accomplishments
Sunnyvale Cleanwater Program Update
6City of Sunnyvale – Program Update – March 2025
Featured in Civil Engineering Magazine
7City of Sunnyvale – Program Update – March 2025
Headworks and Primary Treatment Project
8City of Sunnyvale – Program Update – March 2025
Existing Plant Rehabilitation
Pedestals for the FRP baffle wall Duct bank installation 9City of Sunnyvale – Program Update – March 2025
Yard Pipe Condition Assessment
10City of Sunnyvale – Program Update – March 2025
Master Plan Update
PFAS and Other
CECs
Climate Change
Resiliency
Recycled Water
Flow Management
Odor Management
Plant
Capacity
Future
Growth
Nutrient
Regulations
Biosolids
Management
Collaboration
Outside the
Cleanwater
Program
11City of Sunnyvale – Program Update – March 2025
Accomplishments
Road ahead
Challenges
Sunnyvale Cleanwater Program Update
12City of Sunnyvale – Program Update – March 2025
Site Preparation Package
Primary Sedimentation Tank (PST) Demolition
13City of Sunnyvale – Program Update – March 2025
Thickening and Dewatering Building
Thickening and Dewatering Building
14City of Sunnyvale – Program Update – March 2025
Secondary Treatment Facilities
Bioreactor Basin
15City of Sunnyvale – Program Update – March 2025
Before and After Aerials
2016
2025
16City of Sunnyvale – Program Update – March 2025
Challenges
Road ahead
Accomplishments
Sunnyvale Cleanwater Program Update
17City of Sunnyvale – Program Update – March 2025
Pipeline Rehabilitation and Replacement
18City of Sunnyvale – Program Update – March 2025
Cogeneration Upgrade
19City of Sunnyvale – Program Update – March 2025
Perimeter Wall
JOINT WALL
CITY WALL EXISTING STAGE 1 WALL
20City of Sunnyvale – Program Update – March 2025
Cleanwater Center Building
21City of Sunnyvale – Program Update – March 2025
Cleanwater Program Cost: All Projects
Projects Adopted Budget
Completed $131.9M
Active Design and Construction $563.1M
Future Phases 2 and 3 $42.1M
Phase 4 $358.6M
Phase 5 $44.3M
Programmatic $175.9M
Total $1,315.0M
22City of Sunnyvale – Program Update – March 2025
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
23City of Sunnyvale – Program Update – March 2025
Low Interest Loans
Clean Water State Revolving Fund (SRF) Loan Round 1
$127.1M at 1.7% interest, with $4M in loan principal forgiven for Phase 1 financing of Primary Treatment and Headworks.
Water Infrastructure Financing and Innovation Act (WIFIA) Loan $220.6M at 1.56% interest, featuring an interest-only debt service structure until 2053, financing Site Preparation, the Perimeter Wall, Pipeline Replacement, Cleanwater Center, and a portion of the Plant Rehabilitation project.
Clean Water State Revolving Fund (SRF) Loan Round 2
$287.8M at 1.6% interest, covering Secondary Treatment. 24City of Sunnyvale – Program Update – March 2025
Funding Source Amount
Wastewater Fund Revenues
(Service Fees)
$423.3M
Low Interest Loans 635.6M
Other Planned Debt 256.1M
Total $1,315.0M
Total Funding (per FY 2024/25 Adopted Budget)
25City of Sunnyvale – Program Update – March 2025
Debt Service Payments
$0.0M
$10.0M
$20.0M
$30.0M
$40.0M
$50.0M
$60.0M
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
26City of Sunnyvale – Program Update – March 2025
Estimated Future Sewer Rate Increases
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
2024 2026 2028 2030 2032 2034 2036 2038 2040
FY 2024/25 Adopted Budget Rates
27City of Sunnyvale – Program Update – March 2025
Debt Service Coverage (min 1.2x)
0.0 1.0
2.0 3.0
4.0 5.0
6.0 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Debt Service Coverage Ratio Minimum Coverage
28City of Sunnyvale – Program Update – March 2025
• May — Amendment for Program Management; Prop 218 Notices • June — Authorization and Reimbursement Resolutions for SRF Round 3 • July — Award of Cleanwater Center Construction Management Contract • September — Easement to PG&E for Relocated Assets
• November — Cost Share and Maintenance Agreements for Joint Wall with Valley Water
• December — Award of Digestion Upgrade Design Contract Next Steps in 2025
29City of Sunnyvale – Program Update – March 2025
• Summer 2026— Finish Plant Rehabilitation construction • Fall 2026— Adopt Master Plan Update
• Spring 2028— Finish Perimeter Wall construction
• Summer 2028— Finish Primary Effluent Pipeline replacement • Fall 2028— Finish Secondary/Dewatering construction
• Spring 2029— Finish Cleanwater Center construction
• Fall 2030— Finish Cogeneration Upgrade
Upcoming Milestones
30City of Sunnyvale – Program Update – March 2025
Questions?
Thank you!