APPROVAL OF A STATE REVOLVING FUND LOAN FOR CITY OF RIALTO WASTEWATER TREATMENT FACILITY EXPANSION STATE REVOLVING FUND LOAN PROJECT NO. C-06-4648-110

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 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the Wastewater Treatment Facility Expansion for City of Rialto in Priority Class D;

3. The Division of Clean Water Programs has approved the project report, environmental documents, draft revenue program, and water conservation plan, for the City of Rialto's Project; and

4. The City of Rialto certified an EIR and Addendum (State Clearinghouse No. 96091013) which have been reviewed and considered, and its has been determined that:

(a) As stated in the EIR, construction and operation of the project may result in significant and unavoidable effects with respect to air quality impacts which will cause established air quality standards for pm10 to be exceeded. The City also concluded that, based on the ultimate plant expansion to 18 mgd capacity, the project may result in significant and unavoidable water quality impacts with regards to Total Dissolved Solids (TDS) as related to the state and federal anti-degradation policies and the Santa Ana River Basin Plan objectives. This conclusion was derived from the assumption that imported water supplies with a higher TDS than in current water supplies would be in use by the time sewage flows approached 18 mgd.

However, the funded project will only expand the plant capacity to 12.7 mgd which will not result in a significant change in the TDS concentration of discharge since existing low TDS water supplies (groundwater) will still meet demands. With regards to TDS, the current discharge is in compliance with the City's NPDES permit for the plant. The NPDES permit allows for an offset in TDS requirements, as allowed by the Santa Ana River Basin Plan, based on the City's participation in a TDS/Total Inorganic Nitrogen (TIN) study in cooperation with the Regional Water Quality Control Board.

The increased discharge will not result in an adverse change in the TDS levels of the receiving waters (Santa Ana River and groundwater basin) since the discharge will have a significantly lower TDS concentration than that of the receiving waters. Therefore, the funded project will not result in the lowering of receiving waters quality and does not violate the state and federal anti-degradation policies.

The State Water Resources Control Board hereby adopts the following statement of overriding considerations to address the unavoidable significant impacts that may potentially occur from approval of the project:

(i) Implementation of the wastewater treatment facilities improvement project would result in the following benefits: (1) the project will improve the nitrogen removal process to bring the plant into compliance with current and future nitrogen discharge requirements, (2) the project will allow the plant to meet other NPDES permit requirements and avoid other adverse health and water quality impacts, (3) there is a clear economic benefit to the City associated with the preferred project, and (4) implementation of the orderly and phased expansion of the wastewater treatment plant is necessary to meet future demands for service consistent with the City of Rialto's official policies and goals as stated in the General Plan.

(ii) In balancing the project benefits against the potential significant impacts regarding water quality and air quality impacts, the State Water Resources Control Board finds that the public benefits of the project outweigh any unavoidable impact, that the EIR attributes to the funded project and therefore, determines that the impact is acceptable.

(b) Changes or alterations have been required in, or incorporated into the proposed project which avoid or reduce to less than significant levels the other potentially significant environmental effects identified in the EIR with respect to erosion impacts which will be mitigated by suspending excavation during rain, minimizing land exposure in area and time, covering erodible areas with vegetation, retaining existing vegetation where possible, and prohibiting clearing or grading until a firm construction schedule is known.

(c) With respect to other potentially significant environmental impacts identified in the environmental document, appropriate changes or alterations are not within the responsibility and jurisdiction of the State Water Resources Control Board. 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 $24 million from the FFY 1998 account, to the City of Rialto for construction of the Wastewater Treatment Facility Expansion, with a repayment period of 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 the City of Rialto does not initiate project construction by February 25, 1998. The Division may approve up to a ninety (90) day extension 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 January 22, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board