Municipal Advisory Services

Livermore Valley Water Financing Authority The Livermore Valley Water Financing Authority (the "Authority") was formed on November 1, 2017 to assist in the financing of the Agency's public capital improvements. The Authority is a joint exercise agency organized under the laws of the State of California and is composed of the Zone 7 and the California Statewide Communities Development Authority. The Agency's Board of Directors serves as the governing Board of the Authority. On March 28, 2018, the Agency issued the Livermore Valley Water Financing Authority Water Revenue Bonds, 2018 Series A to finance the 2018 Water Project which included $57,000,000 for Del Valle Water Treatment Plant (DVWTP) and Patterson Pass Water Treatment Plant (PPWTP) ozone projects and refunding of $14,100,000 capital payments in connection with the Cawelo Water District Certificates of Participation, Series 2006 for the Groundwater Banking Program. On October 24, 2023, the Agency issued the Livermore Valley Water Financing Authority Water Revenue Bonds, 2023 Series A to finance the 2023 Water Project which included $28,795,000 for improvements to the Chain of Lakes Wells 1, 2, and 5 to provide centralized per- and polyfluoroalkyl substances (PFAS) treatment at the existing Chain of Lakes Well 1 site and miscellaneous capital improvements for the Water System. The 2018 Series A and 2023 Series A Water Revenue Bonds are rated 'AAA' by S&P Global and Fitch Ratings. Project Background Mocho PFAS Treatment Plant The Agency plans to construct the Mocho per- and polyfluoroalkyl substance (PFAS) Treatment Plant to address PFAS found in the local groundwater at its Mocho wellfield. The Mocho PFAS Treatment Plant will enable the Agency to remove PFAS from the wellfield, restore the Mocho wellfield production capacity and operational reliability to meet current and future water supply needs, and increase the Mocho Groundwater Demineralization Plant's ability to remove salt in the groundwater basin. This PFAS Treatment Plant will be the Agency's third infrastructure project focused specifically on removing PFAS from its groundwater supplies, joining the Stoneridge PFAS Treatment Plant that became operational in September 2023 and the Chain of Lakes PFAS Treatment Plant that became operational in April 2025. A $25 million grant application was submitted to the State Water Resources Control for the project . The Agency may issue up to $65M in water revenue bonds to fund the project, depending on the outcome of the grant application. Refunding of Water Revenue Bonds, 2018 Series A The Agency's Water Revenue Bonds, 2018 Series A are callable in whole or in part on any date on or after July 1, 2027. The Agency is interested in pursuing a refunding of the outstanding bonds, if at least 3% net present value savings are achieved, to provide interest savings to the rate payers. The current outstanding par amount of the 2018 Series A bonds is $51.47 million.