WHEREAS, on November 8, 1977, the voters of San Benito County passed Proposition B, which authorized the levy of charges sufficient to repay the United States for the District’s share of the cost of construction and cost of operation and maintenance of the Federal Facilities portion of the San Felipe Division of the Central Valley Project; and

WHEREAS, Proposition B also authorized a levy of charges sufficient to repay the costs of construction and cost of operation and maintenance of the District’s Distribution Facilities; and

WHEREAS, the Board of Directors has determined charges which together with other revenue sources, are sufficient to repay the United States for the construction and operation and maintenance of the Federal Facilities or for the cost of operation and maintenance and repayment of the District’s Distribution Facilities; and

BE IT ORDAINED by the Board of Directors of the San Benito County Water District as follows:

1. Water Rates: In order to meet said costs, the rates for water delivered through the pressurized San Felipe Distribution System shall be established at:

USE RATE

Agricultural - Non-Full Cost $ 75.00 per acre foot

Full-Cost (RRA Section 205(a)(3)) $ 245.00 per acre foot

Full-Cost (RRA Section 202(3)) $ 240.00 per acre foot

Non-Agricultural (Municipal & Industrial) $ 155.00 per acre foot

2. The water rates set forth in this Ordinance should be imposed on the basis of the amount of water consumed by the customer and is not imposed upon real property or upon a person as an incident of property ownership.

3. Effective Date: The above water rates shall be effective March 1, 1999, and shall remain in full force and effect until changed by Ordinance of the San Benito County Water District.

4. All Ordinance and parts of Ordinances inconsistent herewith are hereby repealed.

5. In the event that any portion or provision of this Ordinance shall be determined by a court of law or other tribunal to be invalid or unconstitutional, such a findings of invalidity or unconstitutionality shall not affect the validity of the remaining provisions of this Ordinance which shall remain in full force and effect.

6. This Ordinance shall be in full force and effect as 12:01 a.m. on the 30^th day after its passage and shall be published once in a newspaper of general circulation published and printed in the County of San Benito, State of California, together with the names of the members of the Board of Directors voting for and against same, prior to 15 days from its passage.

Passed and adopted this 14th day of January, 1999, by the following vote:

AYES: DIRECTORS: Perry, Gonzales, Rupert, Tobias

NOES: DIRECTORS: None

ABSENT: DIRECTORS: Swanson

BOARD OF DIRECTORS

SAN BENITO COUNTY WATER DISTRICT

Ken Perry, President

ATTEST: /s/ Janet L. Torres__________________

Janet L. Torres

Administrative Services Officer