APPROVAL OF A STATE REVOLVING FUND LOAN FOR THE POINT LOMA DIGESTERS 7 AND 8 AND GAS SYSTEM UPGRADE PROJECT, CITY OF SAN DIEGO, STATE REVOLVING FUND LOAN PROJECT NO. C-06-4383-110

WHEREAS:

1. The State Water Resources Control Board, on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund (SRF) for Construction of Wastewater Treatment Facilities," and revised it on January 18, 1996;

2 The State Water Resources Control Board, on September 19, 1996, adopted the FFY 1996 SRF Loan Program Priority List which included the Digester Facility Upgrade and Expansion for the City of San Diego in Priority Class B;

3. The Division of Clean Water Programs (Division) has approved the project report, environmental documents, and draft revenue program for the City's project;

4. The water purveyors for the service area are signatories to the "Memorandum of Understanding Regarding Urban Water Conservation in California";

5. The City could not meet the Federal Cross Cutting requirement for cultural resources because the project was already under construction when the SWRCB review process began. There is, however, $450 million in potential non-equivalency funds that the SWRCB can commit for non-equivalency SRF loans; and

6. The City of San Diego certified an EIR and Addendum (State Clearinghouse # 95011057) which have been reviewed and considered, and it has been determined that:

(a) As stated in the EIR, even with the implementation of mitigation measures (landscaping and planting with earth tone colors), the project may result in significant and unavoidable impacts with respect to visual inpacts from the construction of a retaining wall and a berm.

The SWRCB hereby adopts the following statement of overriding considerations to address the unmitigatable impacts that may potentially occur from approval of the project:

Implementation of the project will result in the following benefits: (1) it will enable the Point Loma Wastewater Treatment Plant to meet new Federal treatment standards related to biosolids; (2) it will provide a key element in meeting the California Coastal Commission's mandate to relocate the existing sludge drying operations at Fiesta Island; (3) it will allow for proper maintenance, repair, and upgrade of the plant, alleviate several existing problems and constraints in the operations of the plant; and (4) with respect to the long term effects of the berm, it will maintain, protect, and ultimately enhance public views from within the Cabrillo National Monument, and reduce air quality and traffic impacts associated with hauling the overburden offsite.

In balancing the project benefits against the potential significant impacts regarding visual impacts, the SWRCB finds that the public benefits of the project outweigh the unavoidable impacts and therefore determines that the impacts are acceptable.

(b)With respect to other potentially significant environmental impacts identified in the environmental documents, appropriate changes and alterations are not within the responsibility and jurisdiction of the SWRCB. Such other changes or alterations have been adopted or should be adopted by other agencies.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a SRF loan of $10.9 million to the City of San Diego for the construction of the Point Loma Digesters 7 and 8 and Gas System Upgrade Project, with a repayment period of twenty (20) years, and the first repayment due one (1) year after completion of construction;

The undersigned, Administrative Assistant to the Board, does hereby certify that the foregoing is a full, true, and correct copy of a resolution duly and regularly adopted at a meeting of the State Water Resources Control Board held on September 18, 1997.

/s/

Maureen Marché

Administrative Assistant to the Board