21 ATTACHMENT 3 - Laserfiche WebLink

3 See “DUBLIN SAN RAMON SERVICES DISTRICT,” “CITY OF PLEASANTON” and “CITY OF LIVERMORE” for information about the respective Sewer Systems of the Members. Security for the 2021 Bonds LAVWMA Net Revenue. The 2021 Bonds are payable solely from “LAVWMA Net Revenues,” consisting principally of payments (the “Payments”) from DSRSD, on behalf of itself and Pleasanton (see “DUBLIN SAN RAMON SERVICES DISTRICT - Rates and Charges”), and Livermore under the Sewer Service Contract, less “LAVWMA Maintenance and Operation Costs.” The Members make the Payments in consideration of the provision by LAVWMA of capacity for the disposal or reuse of wastewater (the “Sewer Service”). Under the Sewer Service Contract, the Payments consist of the following: (i) “Fixed Cost Allocation for Debt Service,” which equals a fixed percentage of the debt service on the 2021 Bonds, any bonds issued on a parity with the 2021 Bonds under the Indenture (“Parity Bonds”) and any bonds issued to refund the 2021 Bonds or the Parity Bonds (collectively, the “Bonds”). The Fixed Cost Allocation for Debt Service on Rehabilitation Bonds, i.e., Bonds issued to finance the Rehabilitation Project, is as follows: Livermore (39.95%) and DSRSD/Pleasanton (60.05%, of which 23.34% is allocable to DSRSD and 36.71% is allocable to Pleasanton). The Fixed Cost Allocation for Debt Service on Expansion Project Bonds, i.e., Bonds issued to finance the LAVWMA Expansion Project to increase capacity to 41.2 mgd peak wet weather flow, is as follows: Livermore (22.52%) and DSRSD/Pleasanton (77.48%, of which 45.71% is allocable to DSRSD and 31.77% is allocable to Pleasanton). See Table 2 for historical debt service coverage and Table 3 for a projected debt service coverage table. (ii) LAVWMA Maintenance and Operation Costs, which consist of “Fixed LAVWMA Maintenance and Operation Costs” and “Variable LAVWMA Maintenance and Operation Costs” (each of which term is defined in Appendix D). The Fixed Cost Allocation for Fixed LAVWMA Maintenance and Operation Costs of the Members is as follows: Livermore (30.10%) and DSRSD/Pleasanton (69.90%). Limited Obligation. The 2021 Bonds are special, limited obligations of LAVWMA, and are only secured by a pledge of the portion of the LAVWMA Net Revenues that is required to make payments of principal of or Redemption Price and interest on the 2021 Bonds. LAVWMA’s obligation to pay debt service on the 2021 Bonds is limited to the extent that it receives the Fixed Cost Allocation for Debt Service component of the Payments from the Members and that other Payments from the Members are sufficient to pay LAVWMA Maintenance and Operation Costs; the Fixed Cost Allocation for Debt Service component of the Payments is sized to be equal to the scheduled debt service on the 2021 Bonds (without any coverage). See, however, “SECURITY FOR THE 2021 BONDS – Rate Stabilization Fund” for a discussion of other moneys that may be available to pay debt service on the 2021 Bonds. THE PAYMENT OF THE INTEREST ON OR PRINCIPAL OF THE 2021 BONDS DOES NOT CONSTITUTE A DEBT, LIABILITY OR OBLIGATION OF LAVWMA OR ANY MEMBER OF LAVWMA FOR WHICH ANY SUCH ENTITY IS OBLIGATED TO LEVY OR PLEDGE ANY FORM