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BACKGROUND The Livermore-Amador Valley Waste Management Authority (LAVMWA) is a Joint Powers Authority (JPA) comprised of the cities of Livermore and Pleasanton, and the Dublin San Ramon Services District. LAVWMA was created in 1974 when the three entities agreed to cooperate in the construction, operation and maintenance of facilities for the disposal of treated wastewater from the Livermore-Amador Valley. The LAVWMA export pipelines span the distance from the LAVWMA Pump Station in Pleasanton to the San Francisco Bay. With a distance of nearly 16 miles, the pipelines pass through Pleasanton over the Dublin Grade, through Castro Valley, San Lorenzo, and San Leandro. The original pipeline was designed to transport up to 21 million gallons per day (MGD) of secondary effluent. In the early 2000's, a second export pipeline was constructed to increase the capacity to 41.2 MGD. The treated wastewater from the LAVMWA system discharges into a pipeline owned by the East Bay Discharge Authority (EBDA) and is dechlorinated before it is discharged through a deep-water outfall into the San Francisco Bay. DISCUSSION The EBDA agencies (Pleasanton, Livermore, DSRSD) are interested in renegotiating the terms of the JPA that is set to expire January 1, 2020. The key issue is capacity rights, which are directly linked to fixed costs. LAVWMA owns 19.72 MGD capacity of in the EBDA system, which has a design capacity of 189.1 MGD. This results in a fixed cost percentage of 10.435. However, the EBDA/LAVWMA master agreement April 26, 2007, provides for an increasing scale of the agencies fixed cost percentage. The current fixed cost percentage is 17.34 percent and will increase to 18.60 percent on January 1, 2020. It is in LAVWMA's best interest to reduce its fixed and variable (flow based) costs. LAVWMA would have some leverage if the debt is paid off and a new agreement can be negotiated. The water recycling efforts of the LAVWMA agencies will play a large role in reducing the costs for EBDA; however, discussions on this issue will take place once the debt is paid off to renegotiate on going costs of wastewater distribution. LAVWMA still owes $4,373,601 in principal on the EBDA debt. There are thirteen years remaining on the debt. If interest rates remain low, the annual payment would be $411,248, or a total of$5,346,224 would be paid to EBDA over the thirteen-year period. By paying off the debt LAVWMA would save over $840,000 in interest expenses. The debt payment is due July 1 of each year; if the debt is paid off by June 30, 2018 the anticipated payoff amount would be as follows: Agency Capacity Principal Interest Total '�I@!hi( - =a"ti �7� 'IdtlUfRmb . , • lull JINi. - Livermore �, �® Pleasanton 34.14% $1,493,147 $44,794 $1,537,941 DSRSD $4,373,601 $131,208 $4,504,809 Page 2 of 3