WHEREAS:

1. The State Water Resources Control Board (SWRCB), on February 16, 1995, adopted the "Policy for Implementing the State Revolving Fund for Construction of Wastewater Treatment Facilities," and revised it on January 18, 1996;

2. The SWRCB, on September 18, 1997, adopted the FFY 1998 SRF Loan Program Priority List which included the Wastewater Treatment Plant Improvement Project, City of South San Francisco (City) in Priority Class A;

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

4. The water purveyors for the service area are signatories to the "Memorandum of Understanding Regarding Urban Water Conservation in California"; and

5. The City adopted a Mitigated Negative Declaration for the proposed project (State Clearinghouse No. 97092100) which has been reviewed and considered and it has been determined that the proposed project will not result in significant negative environmental impacts.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves a SRF loan of $39 million to the City for construction of the Wastewater Treatment Plant Improvement Project, 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 preliminary SRF loan commitment if biddable plans and specifications are not submitted to the Division of Clean Water Programs by September 1, 1998. The Division may approve up to a ninety (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 June 18, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board