FOR THE 2000-2001 CONTRACT WATER YEAR

WHEREAS, the Water Users’ Handbook, Rules and Regulations for delivering and receiving San Felipe Distribution System Water requires the annual review of terms and conditions governing inter-subsystem transfers; and

WHEREAS, the Annual Groundwater Report for the 1998-1999 Water Year presented facts and the basis for findings that certain groundwater sub-basins are experiencing high groundwater levels; and

WHEREAS, inter-subsystem transfers from subsystems experiencing elevated groundwater levels to subsystems which are currently under supplied and/or have available groundwater storage could serve to mitigate the potential impact of elevated groundwater levels.

NOW, THEREFORE the Board of Directors of the San Benito County Water District hereby resolves that:

Authorization for inter-subsystem transfers shall be subject to the following conditions which were designed to mitigate potential impacts on well users in the groundwater basin from which water is being transferred and to mitigate the potential impacts on lands within high groundwater areas.

1. Any such inter-subsystem transfer shall not cause any unreasonable impact on the water supply, operation, or financial condition of the District.
2. Any administrative costs incurred by the District in order to facilitate the transfer shall be paid by the transferee.
3. All project water transferred between subsystems shall be considered "Class 2 Water", which is defined to mean all water over and above that originally allocated the land by the District, and which is otherwise eligible for transfer.
4. All water originally allocated to the land (Class 1 Water for purposes of this resolution) shall be beneficially used before Class 2 Water may be transferred between the subsystems.
5. No Class 2 Water shall be considered for repurchase by the District.
6. No inter-subsystem transfer shall be permitted into Subsystems 1, 1A, 2, 3, 4, 5, 10 and 11.
7. Inter-Subsystem transfers from Subsystems 6, 7 and 9 shall be subject to the following additional conditions.

1. A transferor shall not transfer more than 30% of the project water available to any one parcel of land.
2. Out of the total amount of project water authorized for transfer between a subsystem, 25% of such water shall be paid for, deducted from the total allocation, and percolated into the groundwater basin from which the water is being transferred.

THE FOREGOING RESOLUTION was adopted at a special meeting of the Board of Directors of the San Benito County Water District held on February 1, 2000.

AYES: DIRECTORS Swanson, Perry, Tobias, Rupert

NOES: DIRECTORS None

ABSENT: DIRECTORS Gonzales

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John Tobias

President

ATTEST:

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Janet L. Torres

Administrative Services Officer