January 5, 1998

7:30 p.m.

The Board of Directors of the San Benito County Water District convened in special session. All members of the Board were present together with Manager/Engineer, John S. Gregg, Administrative Services Officer, Denise R. Thome, District Counsel, David E. Pipal and members of the general public.

1)         CONSIDERATION OF PAYMENT ON 1988 CERTIFICATES OF

PARTICIPATION:

Manager Gregg stated that the payment was due January 25, 1998 and if they waited until the next board meeting date they would be unable to wire the payment by the deadline.

Upon motion duly made, seconded and carried, authorized payment on 1988 certificates of participation to State Street Bank in the amount of $173,065.79.

2)         PROOF OF PUBLICATION SUBMITTED ON NOTICE OF PUBLIC

HEARING:

Administrative Services Officer Thome submitted proof of publication on the notice of public hearing.

3)         PUBLIC HEARING RE: 1996-1997 GROUND WATER REPORT:

Manager Gregg made introductory remarks and turned the presentation over to Gus Yates of Jones & Stokes.

            Mr. Yates proceeded to make his presentation on the 1996-1997 Ground Water Report.

            President Swanson opened the public hearing.

            Anthony Botelho expressed concern with water quality in the San Juan basin. He stated that he did not like the proposal of not percolating Hernandez water stating that he was solely on well water and that would not be fair if they did not dilute the San Juan Valley water which was high in nitrates, by percolation.

            Director Perry commented on the graph showing the amount of acre feet used by agriculture and suggested that some type of survey be sent out to the farmers so they could report how much well water and blue valve water was being put on the land.

            Director Rupert concurred that San Juan Valley did need dilution water from Hernandez and San Felipe to alleviate the waste water plant until something was done.

            Upon motion duly made, seconded and carried, continued the public hearing to January 15, 1998.

5)         DISCUSSIONS OF 1998/1999 RATES AND CHARGES:

President Swanson stated that there was no data to report on.

            Manager Gregg reported that they did not have final rates from the Bureau and should have them by Friday.

            The meeting adjourned at 9:15 p.m.

            The vote of the members of the board were as follows, unless otherwise stated:

                        AYES: DIRECTORS: Rupert, Gonzales, Buzzetta, Perry, Swanson

NOES: DIRECTORS: None

                        ABSENT:DIRECTORS: None

                                                                        ____________________________________

Robert Swanson, President

ATTEST: _________________________________________
             Denise R. Thome, Administrative Services Officer