Sunnyvale Cleanwater Program:
SRF Agreement for Existing Plant Rehabilitation
City Council Meeting
June 3, 2025
2City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Cleanwater Program
3City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Existing Plant Rehabilitation Project Elements
4City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Project Status
5City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 • December 2020: Application submitted, with
Site Preparation Project
• December 2021: Application re-submitted,
without Site Preparation project
• June 2024: Notification from State Board
P2.1.1-Plant Rehab was selected for funding
• July 2024 – May 2025: Worked with State
Board during application review
• July 2025: Expected loan execution
Timeline of Loan Process
6City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 • Substantial Completion: January 2027
• Construction is on schedule
Project Schedule
7City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 • $50 million
• 30-year term
• 2.1% interest rate (as of April 3, 2025)
• Debt service savings vs. bond financing: ~$20 million • Allows construction expenses incurred before loan
execution
Loan Terms and Benefits
8City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 • Total Cost: $117.5 M
• Condition Assessment: $0.8 M
• Design: $5.9 M
• Construction & Contingency: $105.3 M
• Engineering Services During Construction &
Commissioning: $4.8 M
• Permitting: $0.7 M
Project Costs and Financing
43%57%
SRF3 WIFIA
9City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 • The City is very familiar with SRF
requirements:
American Iron and Steel (AIS)
Davis-Bacon Act
Disadvantaged Business Enterprise outreach
Project Information Signage
State Revolving Fund Requirements
10City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Inspections by State Board to review
• Labor compliance
• AIS compliance
“The borrower appears to have a sound
understanding and robust methods for
ensuring compliance”
- Kavita Mak (EPA), October 2024, Cleanwater Program
Project Monitoring Report
State Revolving Fund Requirements
11City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Alternative 1: Adopt resolution authorizing the City Manager to execute and deliver an Installment Sale Agreement, for up to $50,000,000 in Clean Water State Revolving Funds, between the City of Sunnyvale and the State Water Resources Control Board, and to execute all implementing documents for financial assistance in connection with the City’s Water Pollution Control Plant upgrade project.
Alternative 2: Do not adopt the Resolution and direct staff to use an alternative financing mechanism.
Alternatives
12City of Sunnyvale – SRF Agreement for Existing Plant Rehabilitation – June 2025 Alternative 1: Adopt resolution authorizing the City Manager to execute and deliver an Installment Sale Agreement, for up to $50,000,000 in Clean Water State Revolving Funds, between the City of Sunnyvale and the State Water Resources Control Board, and to execute all implementing documents for financial assistance in connection with the City’s Water Pollution Control Plant upgrade project
Staff Recommendation
Questions?
City Council Meeting
June 3, 2025