May 29, 2002

7:30 p.m.

The Board of Directors of the San Benito County Water District convened in Regular Session. Directors Bob Swanson, Ken Perry, John Tobias, Douglas Keck and James DeLaCruz were present together with District Manager/Engineer John S. Gregg, District Counsel John O’Brien, Deputy District Engineer Jeff Cattaneo, Water Office Supervisor Barbara Mirrione and Administrative Services Officer Janet L. Miller.

a. Pledge of Allegiance to the Flag

President Keck called the meeting to order and let the Pledge of Allegiance to the Flag.

b. Approval of Agenda

Upon motion duly made, seconded and unanimously carried the Agenda was approved as submitted.

c. Public Input: Members of the Public are Invited to Speak on any Matter not on the Agenda.

President Keck opened the Public Input portion of the meeting. Don Kergen, Tres Pinos, asked if the District would be taking over the San Benito County Service Areas and gave his support if so. District Manager/Engineer Gregg stated the District is currently in discussion on that subject. President Keck closed the Public Input portion hearing no further comment.

CONSENT AGENDA:

1. Approval of Minutes for: April 24, 2002 – Regular Meeting

2. Allowance of Claims

3. Consider Approval of Sixth Amendment to Employment Contract for District Manager

4. Consider Quitclaim Deed between the District and Edward C. Lydon and Direct Manager to Sign

Upon motion duly made, seconded and unanimously carried the Consent Agenda was approved.

REGULAR AGENDA:

5. Review Report on City of Hollister Wastewater Treatment Plants and Direct Staff

District Manager/Engineer Gregg reported the City of Hollister withdrew their request to use the temporary ponds for permanent use and used the suggestion of the District to develop a Wastewater Management Plan and update the Groundwater Management Plan. He reported currently both plans are underway. He suggested the Board send a letter to the Regional Water Quality Board addressing the District’s concerns. Upon a motion duly made, seconded and unanimously carried the proposed letter was approved with the President to sign. The Board also requested the signed letter be sent to the Mayor of the Hollister City Council, City Manager and the Chairperson of the San Benito County Board of Supervisors.

6. Review City of Hollister Redevelopment Agency Responses to District Comments on Draft EIR, Second Amendment to Hollister Community Development Plan

District Manager/Engineer Gregg stated he was satisfied that the Redevelopment Agency addressed the District’s concerns. He stated the County of San Benito and this District worked cooperatively on this matter.

7. Confirm 1,000 acre foot Transfer from Exchange Contractors and Conditions for Sale of Additional Water

District Manager/Engineer Gregg stated this water would be available on a first come, first served basis. He proposed a 500 acre foot limit to the customers in the San Juan Valley and in the North County, due to high groundwater levels. Upon a motion duly made, seconded and unanimously passed confirmation was given on the transfer from exchange contractors removing the restrictions of limiting the sale to 500 acre foot in the San Juan Valley and in the North County, due to the low rainfall year.

8. Review District Comments on Environmental Assessment, Highway 25, Hollister Bypass Project

District Manager/Engineer Gregg reported that in the Environmental Assessment there was no reference to the Storm Water Management Plan.

9. Report on Hollister Area Water Treatment Plants

District Manager/Engineer Gregg reported that progress is being made on the Lessalt Plant with the installation of a 60” pipeline to distribute disinfectant throughout the system after the membrane filtration. He stated the target date for startup is still Fall or Late Summer.

10. Committee Reports:

a) Personnel Committee (DeLaCruz/Perry) – There have been two meetings between the District and SEIU for labor negotiations. Next meeting set for June 10^th.

b) Audit and Budget Committee (Swanson/DeLaCruz) – A recommended budget will be presented to the Board on June 26^th for approval.

11. District Manager/Engineer’s Report:

a) San Benito River System Operation – the analysis is complete for the minor alteration at Hernandez Reservoir. Releases will be started next week. Bid will be awarded at the August Board Meeting.

b) Water Resources Association Matters

1) Water Conservation Program – received a grant for $10,000 to replace toilets throughout San Benito County. Currently the demand is greater than the supply.

2) Groundwater Management Plan – a presentation of the preferred alternative of blending will be presented to the WRA Board on June 6^th and to the District Board next week.

c) San Juan Bautista Infrastructure – designs are complete, issues with acquisition of the site location, Department of Health Services (DHS) has approved the relining of Well #1.

d) Harmony Hills – to date letters have been mailed to homeowners with no response. DHS will meet next week to discuss.

e) Livestock Grazing at San Justo Reservoir – USBR has indicated their intent to allow livestock grazing at San Justo Reservoir; the County and District will discuss with them, by allowing this to occur, they will increase the possibilities of e-coli contamination.

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

AYES: DIRECTORS: Perry, Tobias, DeLaCruz, Keck, Swanson

NOES: DIRECTORS: None

ABSENT: DIRECTORS: None

The Board adjourned to a Regular Meeting to be held on June 26, 2002 at 7:30 p.m., 30 Mansfield Road, Hollister, California.

Minutes were approved at the June 26, 2002 Regular Board Meeting by the presiding Board Member:

_____/s/Kenneth Perry___________

Kenneth Perry

Vice-President of the Board

ATTEST: ___/s/Janet L. Miller__________

Janet L. Miller

Administrative Services Officer