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Based on the market conditions for municipal bonds on June 10, 2021, the estimated result of refinancing the 2011 Bonds is nominal dollar savings of $12.7 million over the ten-year term of the 2021 Bonds and fully discounted net present value savings of$12.1 million, which is equal to approximately 18.8% of the outstanding principal amount of the 2011 Bonds. Estimated annual savings are approximately $1.2 million. The 2021 Bonds will mature in 2031, which is the final maturity of the 2011 Bonds. The Members' share of the projected savings are summarized below: NPV Gross Avg. Annual Savings Savings Savings DSRSD $4,724,933 $4,955,003 $476,453 Pleasanton 4,042,072 4,238,892 399,895 Livermore 3,380,571 3,545,180 334,451 Total $12,147,576 $12,739,074 $1,201,799 The estimated savings reflect the following assumptions: • Consistent with the existing ratings of the 2011 Bonds, staff assumes the 2021 Bonds will be rated at least AA" (S&P), although LAVWMA has not yet received the final rating for the 2021 Bonds. LAVWMA will evaluate whether it is economically beneficial to purchase a municipal bond insurance policy. • Amounts currently held by the trustee will be used to reduce the amount of 2021 Bonds issued. • The 2021 Bonds will not be subject to optional redemption prior to their stated maturity dates. • Net present value and annual savings calculations take into account the estimated costs of issuing the 2021 Bonds. Fixed costs of issuance for legal, disclosure, municipal advisory, rating, and trustee services are estimated to be approximately $400,000. The underwriter's discount is projected to be 0.30% of the principal amount of the 2021 Bonds. Financing Documents. The following is a brief discussion of the documents that the City Council is approving by Resolution. Copies of the draft documents are attached. 1. Second Amended and Restated Sewer Service Contract. LAVWMA and the Members have determined it is necessary to amend and restate the 2011 Sewer Service Contract in connection with the sale and delivery of the 2021 Bonds. Under the Second Amended and Restated Sewer Service Contract, the member agencies agree to pay the costs of operating and maintaining the LAVWMA wastewater facilities and agree to pay their respective share of debt service on the 2021 Bonds. Pleasanton is a participant in the proposed refinancing only in its capacity as the largest customer of DSRSD's regional sewer system. In that capacity, Pleasanton is only obligated under the Second Amended and Restated Sewer Service Contract to levy Page 3 of 6