A hope for millions in profits turned into a dud of a deal, as a
grant-writing firm hired by Hollister for $100,000 will no longer
provide services after delivering only $26,000 to the cash-strapped
city.
The company backed out through a clause in the contract signed
more than two years ago, according to Fire Chief Bill Garringer,
who oversaw the grant writing relationship.
A hope for millions in profits turned into a dud of a deal, as a grant-writing firm hired by Hollister for $100,000 will no longer provide services after delivering only $26,000 to the cash-strapped city.
The company backed out through a clause in the contract signed more than two years ago, according to Fire Chief Bill Garringer, who oversaw the grant writing relationship.
According to the deal, Randall Funding and Development, Inc. would write grant applications for Hollister beyond the November 2003 expiration until it brings in $500,000.
The condition, however, was relevant only if city officials had authorized that Randall Funding write at least $1.75 million in applications.
That didn’t happen, as department heads requested only $1.3 million in them during the two-year span.
When Garringer announced the firm’s intentions Tuesday, Council members expressed frustration at both Randall Funding and city department heads. Garringer was the exception because his Fire Department requested six of the city’s eight applications.
Garringer also aired his thoughts Tuesday about the raw deal. He said he was not surprised by Randall Funding’s decision.
“It amounts to this: The department heads in the city didn’t apply for enough grants,” Garringer said. “That’s the bottom line.”
Councilman Robert Scattini, who wasn’t elected yet when it was approved, blamed the contract on “poor management.”
“It was a bad business deal on the backs of taxpayers,” Scattini said.
Officials found out Jan. 6 when company chief executive officer Dan Randall faxed a letter to Garringer and Finance Director Barbara Mulholland. In it, Randall responds to the city’s latest “letter of authorization” for an animal shelter grant.
But instead of directly addressing the firm’s altered stance, his tone is upbeat as he proposes a “special offer” to Hollister.
The firm would continue writing grants for a flat fee of $3,000 each, the letter states. It would also provide several research services at no cost.
From his Mill Valley office, Randall on Wednesday acknowledged the verbal commitment he made to Mulholland six months ago – “to work with them on a case by case basis.”
But he went on: “If they’re not writing grants, what’s the point?”
Mayor Tony Bruscia, who had defended Randall Funding in the past, said he was both surprised and infuriated at the firm.
“The fact that they’ve found a loophole that says they may have a way out – it’s just wrong,” Bruscia said.
Bruscia suggested at Tuesday’s meeting the city may pursue litigation in the matter, which was placed on the closed session agenda for Feb. 2.
The six grant applications Garringer authorized totaled $760,000 – including a $315,000 grant from the federal government for a new fire engine.
“Frankly, everybody around us got one of these FEMA grants,” Garringer said at the meeting, then naming San Juan Bautista, Aromas and the county fire departments as jurisdictions awarded the funds this year.
The Code Enforcement Division – for $191,000 – and the Public Works Department – for $386,000 – were the only other Hollister departments to authorize an application. One application for $100,000 from the fire department is still pending
Garringer said that “multiple people” in each department received a list of available grants every Monday since November 2001.
“There’s a whole lot of other departments,” Councilwoman Pauline Valdivia said Tuesday. “What happened?”
Whether department heads deserved blame, Public Works Director Clint Quilter responded, “They probably do. But I can tell you right now…”
Quilter stopped himself.
“I can’t comment. I don’t necessarily agree with that,” he said.
City Manager Dale Shaddox defended department heads Wednesday. Randall Funding did not present many grant opportunities, he said. And of those made available, most were not applicable to cities.
Many of the same views had been floating in late 2002, when Randall Funding agreed to suspend the $4,000 monthly payments from Hollister for four months.
In the summer of 2003, Scattini requested Hollister decline paying the final four installments to Randall Funding. At the time, other Council members and City Attorney Elaine Cass opposed that notion. And payments continued.
“I’m so pissed about that,” Scattini said. “I told those guys back then not to pay that sixteen thousand. They shut me down.”
In the future, Scattini suggested Hollister go back to its old method of city employees writing applications. Overall, with a $20,000 down payment, the total bill came to $100,000.
That money, he pointed out, could have funded an employee position for one year, while the city considers laying off 36 workers.
