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San Carlos faces roughly $4.9 million share of regional wastewater upgrades, authority says
Summary
Silicon Valley Clean Water Authority told San Carlos council Aug. 11 that aging plant infrastructure and new nutrient limits create major capital needs; the agency said San Carlos’ share of near‑term funding is about $4.9 million and next steps include an interagency loan policy and a Sept. commission vote.
Matt Zuka, general manager of the Silicon Valley Clean Water Authority, told the San Carlos City Council on Aug. 11 that the regional wastewater treatment plant faces significant capital work driven by aging equipment and new regulatory limits. "I'm here tonight to talk about the treatment system capital investment needs for the foreseeable future at our treatment plant," Zuka said.
Zuka described a list of projects that he said are driven largely by aging infrastructure: 44‑year‑old fixed film reactors that will be rebuilt, final effluent pumps nearing the end of their useful life, pipe replacements to eliminate single points of failure and rehabilitation of digesters used to make biosolids. He said one remaining conveyance project is a force main to move wastewater from West Bay Sanitary District to the Redwood City pump station, which he estimated at about $75 million.
Zuka also framed the projects against new regional requirements. He said the regional board adopted nutrient effluent limitations in 2024 and agencies have about 10 years to comply; he described an industry estimate of roughly $11 billion to $14 billion for the entire bay area to meet those standards. "We have about 10 years to get into compliance with these new standards," Zuka said.
For the immediate three‑year window, Zuka said the authority had roughly $90 million in needs and that $32.4 million remained unfunded. He said members contribute according to percentages set in the joint powers agreement; San Carlos's share is 15.14 percent. "Over the next 3 years, the total for San Carlos would be $4.9 million roughly," he said.
Zuka described options for filling the gap, including an interagency transfer of money from authority reserves to member agencies under terms to be approved by the authority's commission. He said staff will present a proposed policy to the commission in September and that San Carlos staff would then bring a report to the council seeking concurrence. "Next steps, we have to bring this document to commission in September, to approve the terms for the interagency loan," he said.
Council members asked how prior assessments and rate changes affected current bills, and raised concerns about protecting ratepayers, particularly seniors. Zuka said member agencies decide how to collect revenue (rates, assessments or debt financing) and that the authority's reserves are intended to protect plant operations rather than act as rate stabilization for member agencies.
Zuka noted the authority is also pursuing sustainability projects, including taking diverted food waste into digestion to produce methane for cogeneration; he said those projects could yield a payback in roughly 4.2 to 6.4 years with available grants and tax credits.
The presentation concluded with the commission and member agencies planning to decide financing mechanics; Zuka said he had not yet completed an analysis of reserve policy and that he and his CFO (absent from the meeting) would follow up on detailed financial questions.
What happens next: the authority will take terms for an interagency loan to its commission in September; San Carlos staff will return to council with a recommendation afterward.
