Sunnyvale Cleanwater Program Update
Informational Presentation
August 25, 2026
2City of Sunnyvale – Program Update – August 25, 2026
Introduction
Recent Highlights
Sunnyvale Cleanwater Program
Challenges and Lessons Learned
Funding and Financing
3City of Sunnyvale – Program Update – August 25, 2026
Water Pollution Control Plant
4City of Sunnyvale – Program Update – August 25, 2026
Water Pollution Control Plant: 2016
5City of Sunnyvale – Program Update – August 25, 2026
Water Pollution Control Plant: Today
2026
2016
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Water Pollution Control Plant: Active Construction
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Water Pollution Control Plant: Coming Soon
• CLEANWATER
CENTER
STAGE 2 TRAILER
STAGE 2 SHOWER
8City of Sunnyvale – Program Update – August 25, 2026
Introduction
Recent Highlights
Sunnyvale Cleanwater Program
Challenges and Lessons Learned
Funding and Financing
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Recent Highlights: Won five industry awards
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Recent Highlights: Secondary Site Prep Project complete New Temporary Maintenance Shop and Office Trailer Complex 11City of Sunnyvale – Program Update – August 25, 2026
Recent Highlights: Secondary treatment construction
New Secondary Treatment Facilities
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Recent Highlights: Solids handling construction
• June 15, 2026
90-ft deep Auger Cast Piles for Thickening & Dewatering Building Foundation pad for Cake Loading Area
13City of Sunnyvale – Program Update – August 25, 2026
Recent Highlights: Existing Plant Rehabilitation nearly finished • June 15, 2026
Replaced Media in Fixed Growth Reactors New Baffle Walls in Chlorine Contact Tanks 14City of Sunnyvale – Program Update – August 25, 2026
Recent Highlights: Condition Assessment finished under budget Visual Inspection of Existing Facilities Remote-controlled Cameras to inspect Underground Utilities 15City of Sunnyvale – Program Update – August 25, 2026
Challenges and Lessons Learned
Recent Highlights
Sunnyvale Cleanwater Program
Introduction
Funding and Financing
16City of Sunnyvale – Program Update – August 25, 2026
Ongoing Challenges: Space Constraints and Unmapped Utilities Field Adjustments to Installed Pipelines Narrow Corridors for New Utilities 17City of Sunnyvale – Program Update – August 25, 2026
Primary Sedimentation Tanks Primary Control Building
Ongoing Challenges: Demolition and Hazardous Materials
Demolition of Existing Primary Sedimentation Tanks Demolition of Existing Primary Control Building 18City of Sunnyvale – Program Update – August 25, 2026
• Prequalified electrical subcontractors reduces
our risk of problems during construction.
• Partnering improves cooperation with
contractors on issues.
• Added a forensic accountant and replaced
outside counsel.
We Apply Past Lessons to Ongoing Challenges
19City of Sunnyvale – Program Update – August 25, 2026
We Apply Past Lessons to Ongoing Challenges
• Bundling contracts to reduce
simultaneous contractors onsite.
• Bay Area Air District EPM program to
facilitate our cogen engine permitting.
20City of Sunnyvale – Program Update – August 25, 2026
Funding and Financing
Challenges and Lessons Learned
Recent Highlights
Sunnyvale Cleanwater Program
Introduction
21City of Sunnyvale – Program Update – August 25, 2026
$-
$200M
$400M
$600M
$800M
$1000M
$1200M
$1400M
2015 2020 2025 2030 2035 2040
Actual and Planned Expenditures (per Adopted Budget)
Phase 5 Programmatic
Phase 4
Phase 1
Phase 2
Phase 3
Today
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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 – August 25, 2026
Financing Phases 1 & 2: Low-Interest Loans
Clean Water State Revolving Fund Loan Round 1
$118M 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 Loan
$221M at 1.56% interest, featuring an interest-only debt service structure until 2053, for Phase 1 and 2 financing of Secondary, Site Prep, Cleanwater Center, the Perimeter Wall, Pipeline Replacement, and part of Plant Rehab.
Clean Water State Revolving Fund Loan Round 2
$313M at 1.6% interest, for Phase 2 financing covering Secondary Treatment.
Clean Water State Revolving Fund Loan Round 3
$50M at 2.1% interest, for Phase 2 financing covering Plant Rehab. 24City of Sunnyvale – Program Update – August 25, 2026
Program Financing: Summary
Project
(Phase 1-2)
Loan
Source
Loan
Amount
Interest
Rate
Primary SRF 1 $118M 1.7%
Secondary, Site Prep,
Plant Rehab, Cleanwater Center WIFIA 1 $221M 1.56%
Secondary SRF 2 $313M 1.6%
Plant Rehab SRF 3 $50M 2.1%
• Total Completed &
Budgeted Active Project
Costs: $929M
• Total Low-Interest Loan
Amount: $702M
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Funding Source Amount
Wastewater Fund Revenues (Service Fees) $430M
Low Interest Loans (Phases 1 & 2) $702M
Other Planned Debt $256M
Total $1,388M
Total Funding (per Current Adopted Budget)
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$4M cost share
New Funding Secured (In addition to Low-Interest Loans) $1M federal grant
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Next Actions for Council
October 2026 December 2026 Spring 2027
Execute easement to
PG&E for Secondary
Treatment service
Award Cleanwater
Center and Perimeter
Wall Construction
Contract
Receive and Adopt
Master Plan Update
28City of Sunnyvale – Program Update – August 25, 2026
Thank you!