WHEREAS, Section 70-7.7 of the San Benito County Water District Act provides for the determination and establishment of groundwater charges and rates for water years and Section 70-7.2 defines "water year" as "…March 1^st of one calendar year to the last day of February of the following calendar year"; and

WHEREAS, Section 70-7.2 of the San Benito County Water District Act was amended by the State legislature without additional changes proposed by the District as described in SBCWD Resolution No. 97-8 (which Resolution is attached hereto and incorporated herein by this reference as Exhibit I); and

WHEREAS, Section 70-7.7 of the San Benito County Water District Act sets forth certain requirements for a hearing on the investigation and report on groundwater conditions; and

WHEREAS, pursuant to Section 70-7.7 of the San Benito County Water District Act, the Board of Directors held a public hearing on January 5, 1998 to review and receive public comment on the Annual Groundwater Report for the 1996-1997 Water Year; and

WHEREAS, the public hearing on the Annual Groundwater Report of the 1996-1997 water year was continued to respond to issues raised by the City of Hollister, Sunnyslope County Water District, and others; and

WHEREAS, on January 28, 1998 the Board of Directors accepted the Groundwater Report with certain additions and corrections; and

WHEREAS, the Final Annual Groundwater Report for the 1996-1997 water year recommends that a groundwater charge be levied, and presents water supply, water usage, and water replenishment information and presents proposed rates (revenue levels); and

WHEREAS, the Board conducted a public hearing on January 28, 1998 to determine whether or not a groundwater charge should be levied in Zone 6,a nd to consider the amount of any such charge; and

WHEREAS, that public hearing was continued to February 2, 1998

NOW, THEREFORE, BE IT RESOLVED AND ORDERED pursuant to Section 70-7.8 of the San Benito County Water District Act that the groundwater charges for the ensuing water year (March 1, 1998 through February 28, 1999) are hereby levied, assessed and fixed against all persons operating groundwater producing facilities within Zone 6 as follows:

$33.00 per acre foot

Water Primarily for Agricultural Purposes

$ 1.50 per acre foot

BE IT FURTHER RESOLVED AND ORDERED pursuant to Section 70-7.10 of the San Benito County Water District Act that each operator of a water producing facility not measured with a water measuring device and/or not producing water from said facility shall file statement verified by written declaration made under penalty of perjury on or before the 31^st day of January in each year until such time as said facility has been permanently abandoned, setting forth a total production in acre feet of water for the preceding calendar year (excluding the month in which the statement is due), a general description or number locating each water-producing facility, and the method or basis of the computation of such water production or that no water has been produced from said water-producing facility.

BE IT FURTHER RESOLVED AND ORDERED that should the operation of a water-producing facility fail to file the aforementioned statement, said operator shall be assessed in addition to an interest charge calculated at the rate of 1% for each month on the delinquent amount of the groundwater charge, a penalty representing 10% of the amount found by the District to be due.

BE IT FURTHER RESOLVED that continued replenishment of the groundwater supplies of Zone 6 are necessary;

BE IT FURTHER RESOLVED that the above groundwater charge does not exceed the costs reasonably borne by the District in the period of the charge in providing the water supply service authorized by the District Act in Zone 6, a portion of which costs are set forth in Exhibit II, attached hereto and incorporated by reference.

BE IT FURTHER RESOLVED AND ORDERED that the term "primary" or "primarily" is defined in Exhibit III, attached hereto and incorporated herein by this reference.

BE IT FURTHER RESOLVED that the following criteria shall be used in computing the amount of water produced from a water producing facility which is not measured by a measuring device:

Inside water shall be determined on the basis of 0.05 acre feet per person per

residence or dwelling unit, plus a base water use of 0.10 acre feet per residence

or dwelling unit.

Outside water use for irrigation shall be determined on the basis of 0.09 acre

feet per 1000 square feet of watered land up to 2.0 acres. For water areas

greater than 2.0 acres generally accepted unit water duties based on crop type

and irrigation method as determined by the District shall be used.

Outside water use for livestock watering shall be determined on the basis of

1. acre feet per animal unit up to 10 and 0.01 acre feet per animal unit for

each unit above 10.

Outside water use for fowl shall be determined on the basis of 0.005 acre feet

per 100 fowl.

THE FOREGOING RESOLUTION was adopted at a special meeting of the Board of Directors of the San Benito County Water District held on February 2, 1998, by the following vote:

AYES: DIRECTORS: Rupert, Gonzales, Buzzetta, Perry, Swanson

NOES: DIRECTORS: None

ABSENT: DIRECTORS: None

____________________________________

Robert M. Swanson, President

ATTEST:

____________________________________________

Denise R. Thome, Administrative Services Officer

The primary use must be established on all wells that are used for both agricultural and municipal and industrial purposes.

Agricultural water shall mean water used primarily in the commercial production of agricultural crops or livestock, including domestic use incidental thereto, on tracts of land operated in units of more than 2 acres.

Municipal, Industrial and domestic water (hereinafter referred to as M & I water) shall mean water used for other than agricultural purposes.

Examples of various ratios applied in the classification of wells:

2 Acres of Agricultural Land & 1 Dwelling = Agricultural or M & I

(as determined by the District)

4 Acres of Agricultural Land & 2 Dwellings = Agricultural or M & I

(as determined by the District)

2 Acres of Agricultural Land & 2 Dwellings = M & I

4 Acres of Agricultural Land & 3 Dwellings = M & I

4 Acres of Agricultural Land & 1 Dwelling = Agricultural

6 Acres of Agricultural Land & 2 Dwellings = Agricultural