21 - Laserfiche WebLink

FINANCIAL STATEMENT The proposed bond refunding will result in annual debt service savings of$399,895 to Pleasanton, which is funded through DSRSD's regional fees that are included in the City's sewer rates charged to residential and commercial customers. Future DSRSD regional fees will reflect the debt service savings from the proposed LAVWMA bond refunding. BACKGROUND LAVWMA. The Livermore-Amador Valley Water Management Agency ("LAVWMA") is a joint exercise of powers agency operating under an Amended and Restated Joint Exercise of Powers Agreement, entered into on September 10, 1997, by and among the Dublin San Ramon Services District ("DSRSD"), the City of Pleasanton ("Pleasanton") and the City of Livermore ("Livermore"). DSRSD, Pleasanton and Livermore are sometimes collectively referred to as the "Members". LAVWMA operates facilities for the receipt, transport and disposal of treated wastewater from the Livermore-Amador Valley. To finance acquisition and construction of those facilities, LAVWMA issued revenue bonds in the principal amount of $142,385,000 on March 21, 2001 (the "2001 Bonds"). To provide for the payment of debt service on the 2001 Bonds, LAVWMA required the Members to agree to pay certain minimum payments for wastewater service to be provided by LAVWMA, as provided in a Sewer Service Contract, dated as of March 1, 2001, among LAVWMA and the Members (the "2001 Sewer Service Contract"). Subsequently, in order to achieve interest savings, LAVWMA issued its $105,345,000 Livermore-Amador Valley Water Management Agency 2011 Sewer Revenue Refunding Bonds (the "2011 Bonds") for the purpose of refunding the 2001 Bonds. In connection with the issuance of the 2011 Bonds, LAVWMA and the Members entered into an Amended and Restated Sewer Service Contract, dated as of October 1, 2011 (the "2011 Sewer Service Contract"). Pleasanton/DSRSD Regional System. Pleasanton owns and operates facilities for the collection and transmission of wastewater. In addition, Pleasanton and DSRSD entered into an Agreement for Wastewater Disposal Services dated November 3, 1992, as amended (the "Regional Agreement"), which provides for (i) Pleasanton's ownership and operation of its collection and transmission system, (ii) DSRSD's ownership and operation of its collection system, (iii) DSRSD's ownership and operation of regional sewerage facilities for the benefit of Pleasanton and DSRSD, including a treatment plant and related storage and disposal facilities ("Regional Facilities") and (iv) the collection and application of a regional connection fee and a regional service charge. DISCUSSION Refunding Opportunity. The 2011 Bonds maturing on or after August 1, 2022, are subject to early redemption, and LAVWMA has determined that interest savings can be achieved if the 2011 Bonds are refunded with proceeds of refunding bonds (the "2021 Bonds"). Page 2 of 6