WHEREAS, on October 29, 2002, the Board of Directors of the San Benito County Water District ("District") adopted Resolution No. 2002-17 a resolution establishing Zone 103 and undertaking a project therein; and

WHEREAS, Resolution 2002-17 provides that "If a majority of electors protest the adoption of rates and charges, or the parties fail to enter into a Transfer Agreement within sixty (60) days from the adoption of this resolution, all proceedings to create a zone of benefit and a project therein shall terminate"; and

WHEREAS, Resolution 2002-19 and 2003-06 amended Resolution 2002-17 to extend the time to meet certain preconditions; and

WHEREAS, generally satisfactory progress is being made to fulfill the preconditions of Resolution 2002-17; and

WHEREAS, certain obstacles and delays have been encountered which were unanticipated and beyond the control of the parties.

NOW, THEREFORE BE IT RESOLVED THAT, Resolution 2002-17 is further amended to read as follows:

3. Rates and charges to be assessed within said zone of the purpose of operating, maintaining, extending, repairing, or otherwise improving the system by ordinance of this District subsequent to the adoption of the resolution. Further, the District, Owner, and Harmony Hills Landowners shall enter into an Agreement transferring a fee interest and other interests sufficient to accomplish the purposes of the PROJECT in land, all springs and well sites, tank sites, pipeline and facility rights-of-way, water rights and water production, storage and until the publish hearing pursuant to the California Construction, Articles XIII C and D, has been conducted without a majority protest, and ordinance establishing rates and charges has been adopted and a Transfer Agreement has been signed. If a majority of electors protest the adoption of rates and charges, or the parties fail to enter into a Transfer Agreement by July 31, 2003, all proceedings to create a zone of benefit and a project there under shall terminate.

The foregoing Resolution was passed and adopted at a Regular Meeting of the Board of Directors of the San Benito County Water District held on the 30th day of April, 2003 by the following vote:

AYES: DIRECTORS Tobias, De La Cruz, Perry, Keck

NOES: DIRECTORS None

ABSENT: DIRECTORS Swanson

________________________________

Kenneth Perry, President

ATTEST: _________________________________

Janet L. Miller, Administrative Services Officer