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, and June 18, 1998;

2. The State Water Resources Control Board, on June 18, 1998, adopted the State Fiscal Year 1998/99 SRF Loan Program Priority List which includes the MNWD Phase 4 Expansion of Reclaimed Water Distribution System in Priority Class C;

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

4. The MNWD is a signatory to the "Memorandum of Understanding Regarding Urban Water Conservation in California"; and

5. The MNWD adopted a Negative Declaration (State Clearinghouse No. 97011056) 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 loan of $6,984,795 from the FFY 2000 account and $10,135,205 from the FFY 2001 account to the MNWD for the construction of the Phase 4 Expansion of Reclaimed Water Distribution System, including retroactive funding, with a repayment period of 20 years, and the first repayment due one year after completion of construction; and

2. Will withdraw this preliminary SRF loan commitment if the Plans and Specifications Approval has not been issued by November 1, 1999, for Group A facilities and May 1, 2000, for Group B facilities of this project. The Division of Clean Water Programs may approve up to a 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 September 17, 1998.

/s/
Maureen Marché

Administrative Assistant to the Board