WHEREAS:

1. The San Luis Water District (District) was previously approved for a $5.9 million SRF loan for an Irrigation System Improvement Project (Project) under State Water Resources Control Board (SWRCB) Resolution No. 96-12.

2. Due to a $5 million cap on SRF loans for Federal Fiscal Year 1996, the contract was executed for $5 million.

3. The District has exhausted the $5 million loan for the project and has requested an additional $2.5 million.

4. The Project will promote irrigation efficiency, improved management, and water reclamation and conservation practices for the entire San Luis Water District.

5. The Project will reduce the volume of drainage water high in selenium and salinity concentrations in the Charleston Drainage District, a member of the San Luis and Delta-Mendota Water Authority (Authority). This drainage water reduction will provide the Authority greater flexibility in managing drainage flows. This flexibility may help the Authority meet the monthly standards for selenium and salinity loading to the San Joaquin River stipulated by the Use Agreement with the U.S. Bureau of Reclamation for interim use of the San Luis Drain.

6. The SWRCB finds that the Project is exempt from the provisions of the California Environmental Quality Act Guidelines under Section 15302(c) of Title 14 of the California Code of Regulations.

THEREFORE BE IT RESOLVED THAT:

The SWRCB approves an SRF loan for $2.5 million to the District for the Project to increase the total loan amount to $7.5 million for the Project.

The undersigned, Administrative Assistant to the SWRCB, 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 21, 1999.

/s/

Maureen Marché

Administrative Assistant to the Board