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 Red Bluff (City) in Priority Class C;

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

4. The City adopted a Negative Declaration (State Clearinghouse No. 96092040) prepared for the project which has 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 preliminary loan commitment of $2.95 million to the City for the 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

1. Will withdraw this SRF preliminary loan commitment if the City does not initiate project construction by June 3, 1998. The Division may approve up to a ninety (90) days 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 May 27, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board