The San Juan Bautista City Council has to raise $2.8 million in
less than a month to match funding offered by the San Benito County
Water District or it will lose a multi-million dollar federal grant
that would overhaul its dilapidated sewer and water system,
according to officials.
To do that, city council members are working with county water
district officials to outline a plan of attack to raise the funding
before the federal government’s timeline runs out on April 11 and
they’re left with nothing.
San Juan Bautista – The San Juan Bautista City Council has to raise $2.8 million in less than a month to match funding offered by the San Benito County Water District or it will lose a multi-million dollar federal grant that would overhaul its dilapidated sewer and water system, according to officials.
To do that, city council members are working with county water district officials to outline a plan of attack to raise the funding before the federal government’s timeline runs out on April 11 and they’re left with nothing.
Council members were briefed by San Benito County Water District Director John Gregg during the Tuesday night council meeting. Gregg discussed what pieces need to fall into place before the water district signs off on an agreement to supplement a $3.8 million grant from the federal government with an additional $3.1 million from the county water district, said Councilman Charles Geiger.
“We’re working on these pieces and one is the financial piece,” Geiger said. “We also have to understand the verbiage in the contract – what responsibility it brings to the city and the county.”
Water district board member Ken Perry said the county is doing everything it can to help the city procure approximately $2.8 million by April 11, which is the deadline to notify the federal government that it can finance the entire project. Without that confirmation, they will lose the federal grant, Geiger said.
“I’m hoping we can make this work. It’s a windfall for San Benito County,” Perry said. “We’ll do everything we can within the law to make this work. But we can only go so far.”
Geiger wasn’t aware the amount the city needs to raise was so high, but said council members and water district officials will begin meeting on a weekly basis to discuss a plan on how to raise the money.
“I’ve seen nothing on paper, but with inflation it’s very possible that it is $2.8 million,” Geiger said. “But I still believe we’re going to go forward.”
Geiger said council members and water district officials have been discussing the possibility of forming a “joint powers of authority agreement,” where the city and the water district would work together to solicit bonds to help raise the money.
However, nothing concrete has been decided and what those bonds could be, how much they would raise or when and if they could go into effect are still unknown, Geiger said. Gregg did not return phone calls Wednesday for further information on the negotiations.
The city first learned of the chance to secure the $3.8 million grant last month, but hasn’t received confirmation from the water district if it will match $3.1 million needed to finance the project’s total cost of about $7.9 million, according to city officials.
Before the water district signs an agreement, officials want to know exactly how San Juan plans to raise the money and several other details of the grant, Geiger said.
Another wrench thrown into the water talks was the firing of City Manager Larry Cain last week – which council members approved in a 3-2 vote because of a lack of communication from Cain and poor performance evaluations, Geiger said. But the timing has some community members concerned that the upheaval could affect the grant. If the city misses the opportunity some residents have threatened to begin recall efforts against Geiger, Mayor Arturo Medina and Councilman George Dias – the three members who voted to oust Cain.
Long-time San Juan resident and city council fixture Rebecca McGovern picked up a packet on how to begin a recall at the county Elections Office Wednesday afternoon, according to Registrar John Hodges.
McGovern was unavailable for comment Wednesday.
While about 30 people showed up to Tuesday’s meeting to glean additional information about the grant that city officials have called one of the most important opportunities in the city’s recent history, the atmosphere was unusually mellow, Geiger said.
The main focus of the meeting was directed toward the grant, he said.
“We’re there in talk, but talk and having a contract takes time. I’m hoping it will happen within the next two and a half weeks,” Geiger said. “Now the next piece will be talking about hard issues – raising the revenue. There’s no way we’re going to pass up this $3.8 million. You don’t walk away from money given to you by the federal government.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected]
