21 ATTACHMENT 3 - Laserfiche WebLink

78 and charges sufficient to provide the required debt service coverage as well as pay for Member and LAVWMA Maintenance and Operation Costs. Among other matters, drought, general and local economic conditions and changes in law and government regulations (including initiatives and moratoriums on growth) could adversely affect the amount of Member Net Revenues realized by the Members and ultimately the ability of the Members to pay the Payments. Demand and Usage There can be no assurance that the local demand for services provided by the Members and LAVWMA will continue according to historical levels. Reduction in the level of demand could require an increase in rates or charges in order to produce Member Net Revenues sufficient to comply with the Members’ obligations under the Sewer Service Contract. Such rate increases could increase the likelihood of nonpayment, and could also further decrease demand. In addition, drought conditions and voluntary or mandatory conservation measures could decrease usage of the services of the Members. Reduction in usage could require an increase in rates or charges in order to produce Member Net Revenues sufficient to comply with the Members’ obligations under the Sewer Service Contract. Expenses There can be no assurance that maintenance and operation expenses and capital expenses, including those payment obligations arising as a result of the Members’ participation in joint powers authorities or its shared ownership or capacity rights in facilities owned by other local agencies, will be consistent with the levels described in this Official Statement. Changes in technology, increases in the cost of energy or other expenses and increased regulatory requirements would reduce LAVWMA Net Revenues or Member Net Revenues, and could require substantial increases in rates or charges in order for Members to comply with their obligations under the Sewer Service Contract. Such rate increases could increase the likelihood of nonpayment, and could also decrease demand. Earthquakes, Floods and Other Natural Disasters Earthquakes, floods or other natural disasters could interrupt operation of the Members’ Sewer Systems and the LAVWMA Enterprise and cause increased costs and thereby interrupt the ability of the Members to realize Member Net Revenues sufficient to pay the Payments or affect the LAVWMA Net Revenues. The Members are located in active seismic areas. The Members are not obligated under the Sewer Service Contract to have earthquake or flood insurance. Set forth below is information about seismic, wildfire and flood-related conditions in the jurisdictions of the Members. Seismic. The area in which LAVWMA, DSRSD, Livermore and Pleasanton provide service, like most regions in California, is an area of significant seismic activity, and therefore, is subject to potentially destructive earthquakes. The following information about seismic risk in that area is derived from the general plan documents for DSRSD, Livermore, Pleasanton and, where indicated, the cities of Dublin and San Ramon.