2022 Revenue BondsBoard of Directors/ Finance Committee

November 12, 2021

Evaluate Scenarios

Emergency Intertie Project (EIP)

EIP + Additional Funding Needs

Funding Needs exclusive of EIP

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Schedule

Nov 12 Finance Comm discussionJan 4 Board/Auth public hearingJan 12 Rating Agency callsJan 19 Receive RatingsJan 26 Bond SaleFeb 9 Closing

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Scenario 1: EIP Only

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Proceeds $100 million

Annual Debt Service $5.2 million

First Payment 2023

Rate Effects 5%

DS Coverage 1.56

*Note: Rate effect in addition to baseline of 4%

*

Scenario 2: EIP + Additional Funding Needs

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Proceeds $150 million

Annual Debt Service $7.8 million

First Payment 2023

Rate Effects 7.3%

DS Coverage 1.32

*

*Note: Rate effect in addition to baseline of 4%

Scenario 3: Funding needs exclusive of EIP

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Proceeds $60 million

Annual Debt Service $3.2 million

First Payment 2023

Rate Effects 3.0%

DS Coverage 1.98

*Note: Rate effect in addition to baseline of 4%

*

Priority Project Funding Needs

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Project Description Cost (mil)

Pine Mtn Tunnel $10

Emerg Transmission System Upgrades

Remove flow restriction between MMWD, North Marin Aqueduct and SCWA pipleline for winter water

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AMI District-wide upgrade and conversion to industry 20standard technology

Smith Saddle Tanks Rehabilitation of two core transmission storage 22tanks that provide water to customers

Ross Reservoir Replacement of 1 MG concrete storage tank built 8in 1927 that is severely undersized

Replacement of critical transmission storage tank that is over 100 years old

Priority Project Funding Needs (continued)

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Project Description Cost (mil)

SGTP Clarifier Seismic upgrade of critical treatment plant $17.5

North Marin Line Transmission pipeline replacement feeding water 6supply to primary treatment plant

Pump Station Repl Replacement of 5 of the 95 pump stations operated 7.5by MMWD of various ages and conditions

Peacock Gap RW Expansion of recycled water distribution system 11from Terra Linda to Peacock Gap to provide droughtproof supply to numerous customers

TOTAL $122.0

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Priority Program Funding NeedsProgram Description Cost (mil)

Conservation Cash for Grass turf replacement $3 - 5

Next Steps

Dec 9 Continued Discussion of Use of Proceeds

Jan 4 Board/Auth public hearing

Feb 9 Closing

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