Page 42 - Yucaipa Valley Water District

Workshop Memorandum No. 17-072 Page 2 of 2

school district would reimburse the water district from the differential between drinking water rates
and recycled water rates over time.

If the Board of Directors decided to implement this program, the on-bill financing program would
only be available to local governments such as the Yucaipa-Calimesa Unified School District, City
of Yucaipa and the City of Calimesa at a fixed interest rate with a provision to discontinue irrigation
water service for non-payment. By limiting the availability of this program to local government
agencies, the District significantly reduces the risk of non-payment and the risks associated with
the transfer of property ownership.

Additionally, the District staff would propose participating in this project with a maximum
contribution of $25,000 towards contract administration, construction management, and
inspection services.

Yucaipa Valley Water District - May 30, 2017 - Page 42 of 138