21 ATTACHMENT 3 - Laserfiche WebLink

22 Capacity Reserve Fees which have been deposited therein or which have been advanced by DSRSD (on behalf of itself or Pleasanton) from Regional Service Charges to pay Expansion Project Debt Service; and (d) any other purpose agreed to between DSRSD and Pleasanton. (3) DSRSD will attempt to maintain the Rate Stabilization Fund at the Target Level (i.e., two times Maximum Annual Expansion Project Debt Service; see “- Sewer Service Contract” above); provided, that DSRSD is not required to fund the Rate Stabilization Fund from revenues derived from Regional Service Charges assessed on wastewater customers. (4) Amounts in the Rate Stabilization Fund will be available to pay the items listed in paragraph (2) above; provided that draws on the Rate Stabilization Fund which cause the funds therein to fall below the Target Level are not permitted, except as described below. In the event draws on the Rate Stabilization Fund would cause the Rate Stabilization Fund balance to fall below the Target Level, such draw is limited to pay Expansion Project Debt Service, in an amount equal to the sum of: (i) one-third of the lesser of (a) the Target Level; or (b) the amount then on hand in the Rate Stabilization Fund, plus (ii) the amount then on hand in the Rate Stabilization Fund in excess of the Target Level. (5) The Rate Stabilization Fund may be depleted and closed if: (i) Expansion Project Debt Service is in fact being paid entirely from Regional Service Charges; or (ii) if all scheduled Expansion Project Debt Service has been paid or provided for. (6) [The parties to the Sewer Service Contract acknowledge and agree that DSRSD can provide no assurances that amounts will be in the Rate Stabilization Fund to pay DSRSD’s share of Expansion Project Debt Service.] Neither LAVWMA nor the Members can provide any assurance that Regional Capacity Reserve Fees will be sufficient in the future to maintain the Rate Stabilization Fund at the Target Level or to provide sufficient moneys to pay Expansion Project Debt Service. Other Obligations of the Members’ Sewer Systems The Members may incur in the future Obligations that are payable from Member Net Revenues. The Sewer Service Contract and the Indenture do not limit the amount of such Obligations that the Members may incur. The Members’ covenants in the Sewer Service Contract (see “- Rate Covenants”) are intended to ensure that the Members will have sufficient Member Net Revenues to satisfy their obligations under the Sewer Service Contract as well as their other Obligations. See the subsections entitled “- Outstanding Long-Term Obligations” in the sections entitled “DUBLIN SAN RAMON SERVICES DISTRICT,” “CITY OF PLEASANTON” and “CITY OF LIVERMORE.” Parity Bonds In addition to the 2021 Bonds, LAVWMA may, under a Parity Bonds Instrument (defined in the Indenture), issue or incur other loans, advances or indebtedness payable from LAVWMA