San Juan Bautista
– The City of San Juan Bautista and the San Benito County Water
District have finally signed an agreement spelling out exactly how
both parties will contribute to the city’s $9 million water
project, essentially ending months of stalled negotiations and bad
feelings over the project’s fate.
San Juan Bautista – The City of San Juan Bautista and the San Benito County Water District have finally signed an agreement spelling out exactly how both parties will contribute to the city’s $9 million water project, essentially ending months of stalled negotiations and bad feelings over the project’s fate.
“I’m really glad that both sides were able to get past their difference and work together,” said County Supervisor Anthony Botelho, whose district encompasses San Juan. “I think we’re all happy to get this behind us.”
The County Water Board voted Wednesday night to approve a proposal submitted by San Juan, and the two agencies signed a formal agreement Thursday.
The terms of the new agreement state that the water district will pay for a portion of the project’s construction with a $2 million grant only after the project is completed and certified by the Department of Health Services, a move designed to minimize any financial risk to the district.
“We’re all breathing a huge sigh of relief,” said San Juan City Manager Jan McClintock. “And now that this is over we can continue moving forward and have a beneficial relationship with the water district.”
Under the terms of the original grant agreement, the water district was to provide $3.1 million in funds to supplement a $3.8 million grant from the Economic Development Agency, leaving the city to come up with just more than $1 million on its own. However, instead of asking the water district for the full $3 million in grants and loans, the city has found other outside loans with more favorable rates and is asking only for one grant from the district.
The City of San Juan also agreed to a “hold harmless” clause stating that the water district is not liable should anything go wrong with the project.
Water district Trustee Ken Perry glad to have the debacle done and over with, but was skeptical as to the future of the project.
“The people of San Juan deserve this project, but I don’t think it’s going to be cheap,” he said. “I hope so. We all want to see that everybody’s getting the most bang for their buck.”
The signing of this agreement will allow San Juan to begin taking advantage of outside funding sources and begin engineering work as early as this fall or winter.
The agreement also resolves the status of the $3.8 million EDA grant that had been in limbo for the past several months. The funds were awarded to both agencies as co-grantees on the condition that the district would provide the $3 million in grants and loans. However, disagreements arose between the two over which agency would control the bulk of the project and in July the water district wrote a letter to the EDA stating that San Juan refused to abide by the terms of the original grant agreement, without informing the city beforehand.
The EDA suspended the grant until both parties could come to an agreement, and despite several efforts to negotiate little progress was made until after the grand jury released a report laying blame on both agency’s “arrogance” and “unprofessionalism.”
Already, says McClintock, the two parties are working together on other projects in a positive matter, such as the flooding problem at the intersection of The Alameda and Hwy. 156.
“I think it’s a whole new beginning for everyone,” she said.
Danielle Smith covers education for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected]
