21 ATTACHMENT 3 - Laserfiche WebLink

23 Net Revenues (the “Parity Bonds”), to provide financing for the LAVWMA Enterprise, in such principal amount as will be determined by LAVWMA. Issuance of Parity Bonds is subject to satisfaction of certain conditions under the Indenture, including the following: (a) LAVWMA must be in compliance with all covenants set forth in the Indenture, except to the extent any breach of a covenant in the Indenture will be cured by reason of the issuance of the Parity Bonds. (b) The following coverage tests must be satisfied: (i) The Member Net Revenues of the “Regional Members” (which the Indenture defines as DSRSD and Pleasanton), calculated on sound accounting principles, as shown by the books of the Regional Members for the latest Fiscal Year or any more recent 12-month period selected by the Regional Members ending not more than 90 days prior to the adoption of the legal document pursuant to which such Parity Bonds are issued (the “Parity Bonds Instrument”), as shown by the books of the Regional Members, any or all of the items designated in the following clause (iii), must at least equal 110% of the sum of: (1) DSRSD’s (on behalf of itself and Pleasanton) pro rata share of Annual Debt Service for the immediately succeeding Fiscal Year, calculated in accordance with the Sewer Service Contract, with Annual Debt Service calculated on all Bonds to be Outstanding immediately subsequent to the issuance of such Parity Bonds which have a lien on LAVWMA Net Revenues; plus (2) annual debt service for the immediately succeeding Fiscal Year on all Obligations which have a lien on the aggregate Member Net Revenues of the Regional Members; and (ii) Livermore's Member Net Revenues, calculated on sound accounting principles, as shown by the books of Livermore for the latest Fiscal Year or any more recent 12-month period selected by Livermore ending not more than 90 days prior to the adoption of the Parity Bonds Instrument pursuant to which such Parity Bonds are issued, as shown by the books of Livermore, plus, at the option of Livermore, any or all of the items designated in the following clause (iii), shall at least equal 110% of the sum of: (1) Livermore's pro rata share of Annual Debt Service for the immediately succeeding Fiscal Year, calculated in accordance with the Sewer Service Contract, with Annual Debt Service calculated on all Bonds to be Outstanding immediately subsequent to the issuance of such Parity Bonds which have a lien on LAVWMA Net Revenues; plus (2) annual debt service for the immediately succeeding Fiscal Year on all Obligations which have a lien on Livermore's Member Net Revenues. (iii) The following items may be added to the Member Net Revenues for the purpose of issuing or incurring Parity Bonds: (A) an allowance for earnings arising from Member Net Revenues resulting from any increase in the Charges which has become effective prior to the incurring of such Parity Bonds but which, during all or any part of such Fiscal Year or such 12-month period, was not in effect, in an amount equal to the amount by which the Member Net Revenues of such Member would have been increased if such increase in Charges had been in effect during the whole of such Fiscal Year or such 12-month period, all as shown in the written report of an Independent Consultant engaged by the applicable Member;