DATE: February 17, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Title
Informational Report: Water Resource Recovery Facility (WRRF) Improvements Phase II Project Update
End
RECOMMENDATION
Recommendation
That the City Council reviews this informational Water Resource Recovery Facility (WRRF) Improvements Phase II Project Update
End
SUMMARY
The City of Hayward’s Department of Public Works & Utilities is pursuing a major capital improvement project to improve the Water Resources Recovery Facility, formerly known as the Water Pollution Control Facility, (WRRF Phase II Improvement Project, the “Project”) to meet the nutrient reduction mandate for treated effluent identified in the 3rd Nutrients Watershed Permit adopted by the California Regional Water Quality Control Board in July 2024. The total cost of the project is estimated at $498 million, including capital costs, contingencies, and financing costs.
As part of the funding strategy, the City intends to finance up to 49% (~$244 million) of project costs from United States Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) loan and $50 million of the project costs through the SWRCB Division of Financial Assistance’s SRF loan program (the “SRF Loan”). The remaining cost will be funded by publicly-sold revenue bonds and sewer fund reserves. Since April 2025, WIFIA loan signoff has been on hold by the EPA. Staff recently applied for SRF funding in December 2025. This report is to provide a status update as to overall project progress and status on the funding options.
ATTACHMENTS
Attachment Staff Report