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 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the South Bay Water Reclamation Plant 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"; and

5. The City of San Diego certified an EIR and Addendum (State Clearinghouse # 95121027) which have been reviewed and considered, and it has been determined that:

(a) Changes or alterations have been required in, or incorporated into the proposed project which avoid or reduce to less than significant levels potentially significant environmental effects identified in the EIR with respect to erosion impacts which will be mitigated by construction control measures such as avoiding construction during the rainy season or any heavy precipitation event; using temporary plant cover, mulching, or structures; and keeping emergency erosion control equipment available.

(b) With respect to other potentially significant environmental impacts identified in the environmental documents, appropriate changes or 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:

1. Approves a SRF loan of $67.636 million to the City of San Diego for the construction of the South Bay Water Reclamation Plant with an anticipated loan outlay of $13.201 million in FFY 1998, $43.525 million in FFY 1999, and $10.910 in FFY 2000. The repayment period shall be twenty (20) years, and the first repayment due one (1) year after completion of construction; and

2. Will withdraw this preliminary SRF loan commitment if biddable plans and specifications for construction packages #2 and #3 are not submitted as scheduled and approved by the Division of Clean Water Programs by January 12, 1998. The Division may approve up to a ninety (90) day extension for either contract for good cause.

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 November 18, 1997.

/s/

Maureen Marché

Administrative Assistant to the Board