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 June 18, 1998. The Policy would result in the project being ineligible for loan assistance because construction commenced before approval of the final plans and specifications;

2. The State Water Resources Control Board, on September 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the 9.5 MGD Treatment Plant Upgrade, Victor Valley Wastewater Reclamation Authority in Priority Class B;

3. The Division of Clean Water Programs has approved the project report, environmental documents, draft revenue program, and water conservation plan for the Victor Valley Wastewater Reclamation Authority;

4. The City filed a Notice of Exemption for the project, which has been reviewed and considered and it has been determined that the project is exempt from CEQA.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Approves SRF loan funding for all otherwise eligible construction work completed subsequent to the Plans and Specifications approval date of August 26, 1998; and

2. Approves a SRF loan of $7.2 million from the FFY 1998 account to the Victor Valley Wastewater Reclamation Authority for construction of the 9.5 MGD Treatment Plant upgrade, with a repayment period of 20 years, and the first repayment due one year after completion of construction.

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 October 22, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board