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 amended 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 treatment plant improvement project, City of Benicia (City) in Priority Class C;

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

4. The City adopted a Mitigated Negative Declaration and a Subsequent Mitigated Negative Declaration (State Clearinghouse No. 95113002) prepared for the project, which have been reviewed and considered and it has been determined that the project will not result in any significant environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Approves a SRF loan of $26 million to the City for construction of the Wastewater Treatment Plant Improvements, 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 biddable plans and specifications are not approved by the Division of Clean Water Programs by April 1, 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 February 19,1998.

/s/

Maureen Marché

Administrative Assistant to the Board