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 June 18, 1998;

1. The SWRCB, on June 18, 1998, adopted the FFY 1999 SRF Loan Program Priority List which included the Wastewater Treatment Facility Expansion for the City in Priority Class C;

1. The Division of Clean Water Programs (Division) has approved the facilities plan for the City's project; and

1. The City has certified an EIR (State Clearinghouse No. 93042024) which has been reviewed and considered, and its has been determined that:

(a) The project could result in the following indirect growth inducement impacts related to the construction of residential and commercial developments throughout the district service accommodated by the proposed plant expansion:

i) Biological impacts involving the cumulative loss of wildlife habitat;

ii) Traffic impacts involving cumulative increases in congestion on some roadways;

iii) Air quality impacts involving ozone and suspended particles emissions;

iv) Increases in traffic-related noise; and

v) Aesthetic impacts involving alteration of views and visual character of the City.

The project will result in the following benefits:

i) Avoiding public health problems and a possible Cease and Desist Order and connection ban resulting from the discharge of inadequately treated sewage;

ii) Providing adequate wastewater treatment facilities for future anticipated growth described in the City's 1982 General Plan thereby avoiding serious economic consequences; and

iii) Protecting the Wolf Creek environment and maintaining beneficial uses downstream.

Having balanced the benefits of the project against its unavoidable environmental impacts it has been determined that the benefits of the project outweigh the unavoidable adverse environmental effects and the project is therefore acceptable.

(b) Changes or alterations have been required in, or incorporated into the proposed project which avoid or reduce to less than significant levels the other potentially significant environmental effects identified in the EIR with respect to: (i) water quality impacts which will be mitigated by limiting construction to the dry months; mulching, seeding, or other soil stabilization measures; properly depositing excavated materials to avoid runoff; establishing staging areas to avoid discharge of petroleum spills into the stream; maintaining machinery to prevent spills and leaks; reporting and cleaning up any spills; obtaining and complying with a General Industrial Storm Water Permit; designing and implementing appropriate treatment technologies as necessary to ensure compliance with Waste Discharge Requirements; and requiring future project developers to conduct detailed drainage studies for implementation of drainage facility designs, and to comply with SWRCB General Industrial Storm Water Permit requirements or implement a comprehensive erosion control and storm water management plan; and (ii) cultural resources impacts which will be mitigated by using qualified archeologists and Native American representatives to identify and treat any cultural resources that are encountered, stopping work and notifying the County Coroner if human bones or bones of unknown origin are encountered, and notifying the Native American Heritage Commission if remains are encountered.

(c) With respect to other potentially significant environmental impacts identified in the environmental document, appropriate changes or alterations are not within the responsibility and jurisdiction of the SWRCB. Such other changes or alterations have been adopted or should be adopted by other agencies.

THEREFORE BE IT RESOLVED THAT:

The State Water Resources Control Board:

1. Approves a SRF loan commitment of $9 million to the City of Grass Valley for the construction of the Wastewater Treatment Facility Expansion, with a repayment period of 20 years, and the first repayment due one year after completion of construction; and

1. Will withdraw this preliminary SRF loan commitment if the City of Grass Valley does not initiate project construction by August 20, 1999. The Division 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 November 19, 1998.

/s/

Maureen Marché

Administrative Assistant to the Board