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 January 18, 1996;

2. The State Water Resources Control Board, on September 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the Wastewater Facility Expansion Project, City of Gustine in Priority Class B;

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

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

5. The City of Gustine has approved and adopted a Negative Declaration (State Clearinghouse No. 95092006) which has been reviewed and considered and it has been determined that the project will not result in any significant impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board

1. Approves a SRF loan of $2.0 million from the FFY 98 account to the City of Gustine for construction of the Wastewater Treatment Facility Expansion, with a repayment period of twenty (20) years, and the first repayment due one (1) year after completion of construction;

1. Will withdraw this preliminary SRF loan commitment if construction has not begun by July 1, 1998. The Division may approve up to a ninety (90) day extension for good cause; andCurrent_Position
2. Directs the Division to withhold its plans and specifications approval until such time as the Division determines that the City is in compliance with the operator certification requirements.

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 January 22, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board