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Sunnyvale leaders get update on decade‑long Clean Water capital program and timeline for next projects
Summary
City staff told council the Sunnyvale Clean Water Program — the city’s largest-ever capital program — is underway across multiple contracts, with major projects (secondary treatment, perimeter wall, pipeline replacement and digestion upgrades) scheduled through the end of the decade and financing mostly in place via SRF and WIFIA loans.
Public Works Director Chip Taylor told the City Council and public that the Sunnyvale Clean Water Program — what staff described as the city’s largest-ever capital program — remains in active construction across several major projects and will continue through at least 2030.
The update at the study session on March 18 covered completed primary treatment upgrades, an ongoing plant rehabilitation contract, a large secondary treatment project under construction, yard piping condition assessments, and plans for a new Clean Water Center. Staff emphasized major schedule milestones, financing details, and program-level risks.
Taylor and program manager Marlon Kim Bao said the new headworks and primary treatment facility began treating wastewater in January 2024, with a ribbon cutting last June. Taylor described the facility as “far superior to the old primaries,” noting added odor control, seismic design improvements, and onsite sludge-to-electricity generation. He added the plant is being modernized while remaining in operation: “we’re kind of trying to rebuild the plane while we’re flying it.”
Ramana Chenakotla, Environmental Services Director, and Dennis Joss, Assistant Director of Finance, reviewed upcoming work and money. Chenakotla described design-phase pipeline replacements and cogeneration engine replacement plans; she told council Valley Water will contribute $4 million toward a joint perimeter wall design to protect the plant from a 100‑year storm and expected sea‑level impacts. Joss reviewed financing the program with low‑interest loans, including multiple Clean Water State Revolving Fund (SRF) loans and a WIFIA loan; staff said about $90 million of large loans had been drawn as of last month while the total program budget shown in the adopted plan is roughly $1.3 billion.
On schedule and risk: staff said the primary project finished late and that hazardous‑materials discoveries and overlapping site work caused subsequent delays for site preparation and parts of the secondary project, notably the thickening/dewatering building where demolition and vacating existing buildings is required before construction can begin. Marlon Kim Bao said most of the secondary treatment work is progressing despite that delay and pointed to tower cranes and poured foundations visible on site.
Staff identified the program’s next milestones: SRF authorization and reimbursement items in June; easement work with PG&E in September; a cost‑share and maintenance agreement for the joint wall with Valley Water in November; award of a digester upgrade design contract in December; and target construction completions for plant rehabilitation (summer 2026), perimeter wall (spring 2028), effluent pipeline replacement (summer 2028), secondary and dewatering (fall 2028), and the Clean Water Center (spring 2029). Joss said the WIFIA loan structure defers principal payments until later in the repayment schedule and showed modeled debt‑service curves that rise when principal payments begin.
Council members asked about SRF timelines, PG&E easement issues, the makeup of planned rate increases, PFAS regulatory uncertainty and how the master‑plan update will address it, and recycled‑water pilots. Staff said the master‑plan update (phase 3 of 5) will return to council with an updated plan in 2026 and will incorporate automation, power, and disposal/retirement of ponds and that the city is “PFAS‑ready” — i.e., the master plan will identify technologies and site requirements if PFAS treatment becomes mandatory. On recycled water, staff said a pilot cloth‑filter package plant tested successfully and that the city is evaluating a packaged plant option in the project budget.
Ending: Council members thanked staff for the update and asked for interim briefings before the next major master plan milestones. Staff said they will continue to monitor financing draws and the shoreline study (the US Army Corps/Valley Water effort) and will return to council with notifications and program actions tied to loans, easements and contract awards.
