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THE CITY OF 1 L pL€ASANTON. CITY COUNCIL AGENDA REPORT September 6, 2011 Finance TITLE: ADOPT RESOLUTION APPROVING THE SEWER REVENUE BOND REFINANCING BY THE LIVERMORE AMADOR VALLEY WATER MANAGEMENT AGENCY, AUTHORIZING EXECUTION OF THE AMENDED AND RESTATED SEWER SERVICE CONTRACT, AND RELATED MATTERS SUMMARY The Livermore Amador Valley Water Management Agency (LAVWMA) is proposing to refinance its outstanding 2001 Sewer Revenue Bonds, Series A (the "2001 Bonds") by issuing the 2011 Sewer Revenue Bonds (the "2011 Bonds"). The purpose of the refinancing is to save money as a result of lower interest rates. Annual savings are estimated to be $1.6 million and total savings are estimated to be $31.1 million over the twenty-year term of the 2011 Bonds. The 2011 Bonds will mature in 2031, which is the final maturity of the 2001 l3onds. The 2001 Bonds, which were originally issued in March 2001 in the principal amount of $142,385,000, are currently outstanding in the principal amount of $124,740,000. The 2001 Bonds are callable in whole on any date without a premium beginning August 1, 2011. RECOMMENDATION Staff recommends the Council adopt the Resolution authorizing the following actions: 1. Approval of the Amended and Restated Sewer Service Contract and for the City Manager to execute the document on behalf of the City. 2. Approval of those portions of the Preliminary Official Statement describing the City, including the section entitled "City of Pleasanton" (the "City Information"). 3. Approval of the Continuing Disclosure Certificate and for the City Manager to execute the document on behalf of the City. FINANCIAL STATEMENT By refinancing the 2001 Bonds it is estimated that the LAVWMA members (cities of Livermore and Pleasanton and Dublin San Ramon Services District) will annually save approximately $1.6 million in debt service payments. Pleasanton's portion of the estimated savings is $525,000.