WHEREAS:

1. The State Water Resources Control Board adopted Resolution NO. 96-4 on January 18, 1996, approving a State Revolving Fund (SRF) loan commitment of $47 million to San Luis Obispo County Service Area No. 9 for the Los Osos/Baywood Park Wastewater project (Project);

2. Resolution No. 96-4 gave the project first priority for a SRF loan from the available FFY 1998 repayment SRF money;

3. The project is currently almost eight years behind the schedule included in the original facilities plan approval letter of January 31, 1990;

4. The County's current schedule indicates that final design will not be complete until September of 1998 and construction will begin by April 1, 1999; and

5. This exchange of funding, will make $47 million of FFY 1998 SRF funding available immediately to fund other eligible projects ready to proceed.

THEREFORE BE IT RESOLVED THAT

The State Water Resources Control Board:

1. Amends Resolution No. 96-4 by exchanging the commitment for a SRF loan of $47 million to San Luis Obispo County Service Area No. 9 from FFY 1998 SRF repayment funds to $22 million from FFY 1999 and $25 million from FFY 2000 SRF repayment funds, with a repayment period of twenty (20) years and the first repayment due one (1) year after completion of construction; and

2. Will withdraw this $47 million preliminary loan commitment if construction of the project does not commence by April 1, 1999. The Division may approve up to a ninety (90) day extension of this date 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 November 18, 1997.

/s/

Maureen Marché, Administrative Assistant to the Board