San Juan Bautista leaders aren’t the only ones concerned about
the termination of a $3.8 million federal grant.
The San Benito County Water District and the Board of
Supervisors each have appointed two members to a committee that
will discuss the grant and the water infrastructure project it was
intended to fund.
Hollister – San Juan Bautista leaders aren’t the only ones concerned about the termination of a $3.8 million federal grant.

The San Benito County Water District and the Board of Supervisors each have appointed two members to a committee that will discuss the grant and the water infrastructure project it was intended to fund. The U.S. Economic Development Administration recently terminated the funding to San Juan Bautista, but the EDA also stated that the water district – a co-recipient on the initial grant – can still use the money.

At their meeting Tuesday, the supervisors said they’re alarmed by the potential loss of millions of federal dollars.

“It is criminal to lose this kind of money,” Supervisor Reb Monaco said.

Water District Manager Lance Johnson said the committee will discuss “if and to what extent the district and/or the county would want to re-engage with this, and if we even need to.”

Johnson noted that City Manager Jan McClintock plans to continue the project by looking for alternative funding. If that’s the case, the water district may not have to get involved at all, Johnson said. But he also said it’s too early to confirm any plans since water board members and supervisors haven’t met yet.

“There’s also a question of whether the district could legally go into (San Juan Bautista’s) jurisdiction,” he said. “We don’t have a clear answer on that.”

McClintock said the city has to keep moving forward with the project. If it doesn’t, she said it will face substantial fines from the Central Coast Regional Water Quality Control Board.

“We are open to anybody that wants to talk, but nobody has come to us,” McClintock said.

The EDA first awarded the grant in February 2005 to the city and the water district. After negotiations between the two agencies broke down, the grant was suspended that August. In 2006, then-Water District Manager John Gregg wrote to the EDA to withdraw from the grant and to pledge $2 million of district funds to the infrastructure project.

Supervisor Anthony Botelho, who will serve on the grant committee, said the county should try to “create a dialogue” between the city and the water district. Botelho said the water district needs take over the project – otherwise the grant money will disappear.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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