City officials hired a grant writing firm in late 2001 hoping
Hollister would reap hundreds of thousands of dollars, maybe
millions, through the deal.
So far, with the $116,000 contract expiring in two months, the
city has been awarded one grant worth $26,000.
City officials hired a grant writing firm in late 2001 hoping Hollister would reap hundreds of thousands of dollars, maybe millions, through the deal.
So far, with the $116,000 contract expiring in two months, the city has been awarded one grant worth $26,000.
In November 2001, the City Council hired Sausalito-based Randall Funding and Development. And each week since, the consultant has sent a list of potential giveaways to the city. They include funding for issues such as public safety, transportation and economic development.
Regardless of Randall Funding’s lack of success thus far, most officials said they are not panicking; the firm is contractually obligated to work beyond the term until it yields at least $500,000 in grants for Hollister.
A firm representative recently told City Manager Dale Shaddox that Randall Funding would continue writing grants after November if the $500,000 mark was not reached, according to Shaddox. Don Duncan, the firm’s CEO and its spokesman on the issue, could not be reached for comment.
“They reiterated they would remain with us after the contract expires,” Shaddox said.
Meanwhile, Councilman Robert Scattini and other officials are displeased. At this week’s Council meeting, Scattini requested the city halt payments to the firm.
“What I’d like to do is not pay them one red penny for the next three months,” he said. “I’d rather take the ($12,000) and spend it on other equipment.”
Other leaders, such as have defended Randall Funding, saying the firm has abided by the contract and has done what city officials have asked. But that could be the crux of the problem, according to the most recent status report the firm sent to Hollister.
For the firm to apply for a grant, a Hollister department must request it. And according to the contract, the city must provide Randall Funding a “reasonable opportunity” to obtain grants to substantiate the “work-for-free” clause. Reasonable opportunity is defined as at least $1.75 million in grant applications throughout the two-year term.
So far, the city department heads have requested just more than $1.2 million on 14 grants, according to the status report. The Hollister Fire Department is responsible for nine of the 14 applications.
Other departments that have requested at least one grant include Community Development, Management Services, police and the public works department.
If city officials do not apply for another $512,000 by Nov. 6, Randall Funding and Development may void the agreement.
Shaddox and Hollister Fire Chief Bill Garringer remain confident that will not happen. And both assured Council members of their beliefs that the firm will continue writing grants until at least a half-million dollars is obtained.
“I do believe when we first initiated this contract, unfortunately, I don’t think (the city) staff was used to having the extra work of pursuing this,” Bruscia said. “They were not as aggressive as they should have been, and I don’t think Randall Funding was as aggressive as it should have been. Now, both sides have stepped up to the plate.”
Since the Free Lance first reported the deficiency in March, however, the city has authorized the firm to send out only four applications. Three of those are still pending.
One of the applications is for a $386,000 “Safe Routes to Schools” grant through the California Department of Transportation. It is meant to aid improvement of roadways near schools.
In late 2002, the firm, acknowledging a lack of success, agreed to waived the monthly $4,000 bill to the city for a period of four months. That reduced the bill to $100,000.
“We took a risk in entering into that agreement,” said Bruscia, who believes refusing payments to Randall Funding would be a “bad-faith action.”
“We would be foolish for trying to get out of paying $12,000 we’re contractually obligated to pay,” he said.
