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Operations&Maintenance Costs > In April 2017, the Agency purchased the North Canyons Administrative Building with a saving of approximately $7.1 million through February 2020, or average savings of$1.8 million per year. > In 2010,the Agency implemented energy savings from the PG&E peak-day pricing program and in 2011, implemented solar panels at Del Valle Water Treatment Plant (DVWTP) and now the Agency is implementing solar panels at its North Canyons Administrative Building for additional energy savings. > The Agency purchases most of its water treatment chemicals through the Bay Area Chemical Consortium at an average savings of 20%. > During the drought the Agency was granted $3 million of grant funding for drought emergency projects. Debt Financing In March 2018,the Agency received its first credit rating. The Standard&Poor's Global Ratings assigned its `AA+' long-term rating to the Livermore Valley Water Financing Authority's series 2018 water revenue bonds. Fitch Ratings assigned a 'AA' rating to the same 2018 water revenue bonds. In announcing the credit rating, S&P cited the Agency's very strong cash position, stable financial metrics and extremely strong credit quality of the Agency's municipal customers. This translated to an estimated net present value savings of$1.8 million in the refunding of the Cawelo capital payment and bonds sold at the lowest possible interest cost. CAPITAL IMPROVEMENT PLAN The Agency prepares a Capital Improvement Plan ("CIP")that outlines the plans for capital projects and programs needed to carry out the goals and policy objectives of the Agency. Formerly, the CIP incorporated the projects, costs, schedules, and priorities for both the Water System and the Flood Protection System. The Board adopted the FY 2018-19 Ten-Year Water System CIP in October 2017. The Agency's Asset Management Plan ("AMP") documents how the Agency will fund and implement renewal and replacement projects for existing or planned assets. As part of the CIP update process, the Agency engaged HDR, Inc., to complete the 2017 Asset Management Plan Long-Term Funding Forecast Update. The 2017 AMP Update incorporated CIP projects that have been completed, assets that have been renewed since the last AMP update in 2011, future projects, and the long term renewal of assets. It also identified additional renewal and replacement projects. The 2017 AMP Update was adopted by the Board in October 2017 as part of FY 2018-19 Ten-Year Water System CIP. The Board-approved AMP funding level of $12.3M (in 2017 dollars) annually was calculated based on debt financing the construction phases of the DVWTP and PPWTP Ozonation Projects. The AMP Board resolution is attached as Attachment B. The adopted CIP can be found here: http://www.zone7water.com/component/content/artic le/36-publ is/content/82-capital-improvement-program 3