January 13, 2003

7:30 p.m.

          The Board of Directors of the San Benito County Water District convened in Special Session. Directors Ken Perry, John Tobias, James DeLaCruz and Douglas Keck were present together with District Manager/Engineer John S. Gregg, District Counsel David Pipal and Administrative Services Officer Janet L. Miller.

a.       Pledge of Allegiance to the Flag

          President Perry called the meeting to order and led the Pledge of Allegiance to the Flag.

1.       Proof of Publication submitted on Notice of Public Hearing

          Administrative Services Officer Miller stated the Notice of Receipt of Engineering Report on Groundwater Conditions of Zone 6 and Public Hearing was published in the FreeLance on December 26th and 30th, 2002.

2.      Public Hearing regarding 2001-2002 Groundwater Report

          a.       Presentation of Report

          District Manager Gregg introduced Gus Yates who then presented the Groundwater Report. Gus Yates stated the groundwater elevations were the same as last year. He stated he concentrated on the salt balance throughout the groundwater basin as requested by the Board last year.

b.       Questions by Directors

                   The Board asked if the groundwater around the wastewater treatment plants were high in salt. Gus Yates stated not at an abnormal level.

          c.       Open Public Hearing

                   President Perry opened the Public Hearing portion of the meeting. District Manager Gregg stated he received one letter today from the City of Hollister.

          d.       Close Public Hearing or Continue to a Later Date

                   President Perry closed the Public Hearing hearing no further comment from the public.

3.      Acceptance of 2001-2002 Groundwater Report

          Upon a motion duly made, seconded and unanimously carried the 2001-2002 Groundwater Report was accepted. Upon a motion duly made, seconded and unanimously carried the Board adopted the Findings in Support of Motion to Accept 2001-2002 Groundwater Report, as follows:

1.       The report contains information considered by the Board in determining annual overdraft and accumulated overdraft as of 09/30/02.

2.       The report contains information as to the total production of water from the groundwater supplies of the District and the Zones thereof for Water Year ending 09/30/02.

3.       The report contains an estimate of the annual overdraft for the 2001-2002 Water Year and for the ensuing water year.

4.       The report contains information to determine the estimated amount of agricultural water and water other than agricultural water to be withdrawn from the groundwater supplies of the District and the Zones thereof for the 2002-2003 Water Year.

5.       The report contains information as to the amount of water the District is obligated to purchase during the 2002-2003 Water Year.

6.       The report recommends the quantity of water needed for surface delivery and for replenishment of groundwater supplies of the District and the Zones thereof for the 2002-2003 Water Year.

7.       The report recommends that a groundwater charge should be levied in the Zones of the District for 2002-2003 Water Year and proposes a rate per acre foot for agricultural water and a rate per acre foot for water other than agricultural water.

The vote of the Board was as follows, unless otherwise stated:

AYES:          DIRECTORS:        Perry, Keck, Tobias, DeLaCruz

NOES:         DIRECTORS:        None

ABSENT:     DIRECTORS:        Swanson

          The Board adjourned to a Regular Meeting to be held on January 29, 2003 at 7:30 p.m., 30 Mansfield Road, Hollister, California.

Minutes were approved at the January 29, 2003 Regular Board Meeting by the presiding Board Member:

____/s/Kenneth Perry_______________

Kenneth Perry

President of the Board

ATTEST:      ____/s/Janet L. Miller_________

                   Janet L. Miller

                   Administrative Services Officer