WHEREAS:

1. On July 17, 1997, the SWRCB approved Resolution No. 97-65 for an SRF loan of $20 million to the County of Riverside Flood Control and Water Conservation District (District) for the Drainage Water Quality Management Plan (DWQMP) for the Lake Mathews Watershed Project (Project).
   
2. The District is responsible for construction and operation of Phase II of the Project, and Metropolitan Water District (MWD) is responsible for Phase I which is scheduled for completion prior to the District's involvement.
   
3. Construction of the Project will be expedited by authorizing an SRF loan to MWD for Phase I of the Project rather than an SRF loan to the District for both Phase I and Phase II of the Project.
   
4. The County of Riverside completed an Environmental Impact Report to comply with the California Environmental Quality Act.
   
5. 5. The MWD has applied for:

• Department of Fish and Game (DFG) Section 1601 Streambed Alteration Agreement.
• U.S. Army Corps of Engineers (Corps) Federal Clean Water Act (CWA) Section 404 permit.
• CWA Section 401 water quality certification from the Executive Director of the SWRCB or a Waiver of Waste Discharge Requirements from the Santa Ana Regional Water Quality Control Board (SARWQCB).

THEREFORE BE IT RESOLVED THAT:

The SWRCB:

1. Rescinds Resolution No. 97-65 authorizing an SRF loan for $20 million to the District for the Project.
   
2. Authorizes an SRF loan to MWD for $20 million for Phase I of the Project.

This approval is contingent upon MWD entering into (whichever comes later) a contract agreement and beginning construction by June 1999, or until MWD receives (1) a CWA Section 404 permit from the Corps, (2) a CWA Section 401 water quality certification from the Executive Director of the SWRCB or a Waiver of Waste Discharge Requirements from the SARWQCB, and (3) a Section 1601 Streambed Alteration Agreement from the DFG.

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