WHEREAS:

1. The Implementation Policy for the Small Communities Grant Program was adopted by the State Water Resources Control Board on January 23, 1997, and amended on April 30 and May 14, 1997;

2. The State Water Resources Control Board, on May 14, 1997, adopted the Small Communities Grant Program Priority List which included the Pajaro County Sanitation District in Priority Class B;

3. The Division of Clean Water Programs approved the Facilities Plan, which includes the project report, environmental documents, and draft revenue program, on June 1, 1998; and

4. The Pajaro County Sanitation District has filed a Notice of Exemption which has been reviewed and considered and it has been determined that the project qualifies for a Class 2 Categorical Exemption from CEQA requirements and will not result in any significant environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board approves a Small Communities Grant of $1,110,615 to the Pajaro County Sanitation District for the Community of Pajaro's share of the City of Watsonville Secondary Treatment Plant Upgrade project.

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 July 23, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board