WHEREAS:

1. The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities"(Policy), 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 County Sanitation Districts of Los Angeles County (CSDLAC - Districts) Valencia Water Reclamation Plant - Stage V Expansion in Priority Class D;

3. The Division of Clean Water Programs (Division) has approved the project report, environ-mental documents, and draft revenue program for the District's projects;

4. In accordance with the Policy, the Districts certify that seventy five (75) percent of the service area is covered by water conservation plans;

5. Sanitation Districts 26 and 32 of Los Angeles County certified an EIR (State Clearinghouse No. 96041084) which has been reviewed and considered, and its has been determined that:

(a) As stated in the EIR, the project may result in an unavoidable and significant impact with respect to a potential short-term increase in emissions of inhalable particulates resulting from construction activities at the Valencia Water Reclamation Plant. Adopted mitigation measures will reduce PM10 emissions; however, reduction of the impact to a non-significant level is not practically achievable.

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

Implementation of the wastewater treatment facilities improvement project would result in the following benefits: (1) providing adequate wastewater management facilities and protecting public health and the environment,

(2) complying with water quality regulations, (3) increasing the availability of reclaimed water, and (4) increasing employment.

In balancing the project benefits against the potential significant impact regarding air quality, the SWRCB finds that the public benefits of the project outweigh the unavoidable impact 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 runoff and erosion impacts which will be mitigated by preparing and implementing a Stormwater Pollution Control Plan including an Erosion Control and Rehabilitation Plan with measures such as limiting construction areas, using silt fences or straw bales, revegetating, locating covered material storage areas away from drainage channels, avoiding construction during wet periods, and water quality monitoring as necessary.

(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 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 $35.16 million to the County Sanitation Districts of Los Angeles County for the construction of the Valencia Water Reclamation Plant Stage V Expansion project, and the Upgrades at the Valencia and Saugus Water Reclamation Plants for Nitrification-Denitrification. 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 are not submitted to the Division of Clean Water Programs (Division) by November 1, 1999, for the Valencia Stage V Expansion, and April 1, 2001, for both the VWRP and SWRP Upgrades for Nitrification-Denitrification. 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 June 18, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board