Results reported herein include trace element concentrations in sediment and in the clam Macoma petalum (formerly reported as Macoma balthica (Cohen and Carlton 1995)), clam reproductive activity, and benthic macroinvertebrate community structure for a mudflat one kilometer south of the discharge of the Palo Alto Regional Water Quality Control Plant in South San Francisco Bay. This report includes data collected for the period January 2006 to December 2006, and extends a critical long-term biogeochemical record dating back to 1974. These data serve as the basis for the City of Palo Alto's Near-Field Receiving Water Monitoring Program, initiated in 1994. Metal concentrations in both sediments and clam tissue during 2006 were consistent with results observed since 1990. Most notably, copper and silver concentrations in sediment and clam tissue increased in the last year but the values remain well within range of past data. Other metals such as chromium, nickel, vanadium, and zinc remained relatively constant throughout the year except for maximum values generally occurring in winter months (January-March). Mercury levels in sediment and clam tissue were some of the lowest seen on record. Conversely, selenium concentrations reached a maximum level but soon returned to baseline levels. In all, metal concentrations in sediments and tissue remain within past findings. There are no obvious directional trends (increasing or decreasing). Analyses of the benthic-community structure of a mudflat in South San Francisco Bay over a 31-year period show that changes in the community have occurred concurrent with reduced concentrations of metals in the sediment and in the tissues of the biosentinel clam M. petalum from the same area. Analysis of the reproductive activity of M. petalum shows increases in reproductive activity concurrent with the decline in metal concentrations in the tissues of this organism. Reproductive activity is presently stable, with almost all animals initiating reproduction in the fall and spawning the following spring of most years. The community has shifted from being dominated by several opportunistic species to a community where the species are more similar in abundance, a pattern that suggests a more stable community that is subjected to less stress. In addition, two of the opportunistic species (Ampelisca abdita and Streblospio benedicti) that brood their young and live on the surface of the sediment in tubes, have shown a continual decline in dominance coincident with the decline in metals. Heteromastus filiformis, a subsurface polychaete worm that lives in the sediment, consumes sediment and organic particles residing in the sediment, and reproduces by laying their eggs on or in the sediment, has shown a concurrent increase in dominance. These changes in species dominance reflect a change in the community from one dominated by surface dwelling, brooding species to one with species with varying life history characteristics. For the first time since its invasion in 1986, the non-indigenous filter-feeding clam Corbula (Potamocorbula) amurensis has shown up in small, but persistent, numbers in the benthic community.