After weeks of stalled negotiations between San Juan Bautista
and the San Benito County Water District over a multimillion dollar
grant intended to repair the Mission’s City water and sewer
systems, the door for talks may have opened Wednesday.
San Juan Bautista – After weeks of stalled negotiations between San Juan Bautista and the San Benito County Water District over a multimillion dollar grant intended to repair the Mission’s City water and sewer systems, the door for talks may have opened Wednesday.
San Juan City Manager Jennifer Coile stated during a Wednesday water district board meeting that the water district deliberately caused the federal government to suspend the $3.8 million grant awarded to the city several months ago by sending the government a letter filled with false statements. In response, water board President John Tobias invited her to arrange a meeting between the two entities in the hopes of putting their differences aside and hammering out an agreement that would allow the project to go forward.
“At this point it’s a new starting point,” Tobias said in an interview after the meeting. “This is the first communication we’ve had with (Coile) and hopefully we’ll go forward from here. We want this grant to go forward and we want to serve the people.”
The federal Economic Development Administration suspended the grant which is intended to repair San Juan’s leaky and dilapidated water and sewer system last month after receiving a letter from Tobias stating that San Juan was failing to abide by the terms of the grant agreement.
The water district had agreed to match the federal grant with about $3.1 million in grants and loans, but San Juan refused to sign off on the water district’s contract, claiming it gave the district too much control.
For example, the city claims the water district’s contract would give the district control of the city’s wells indefinitely, and require the district to approve San Juan’s utility budget on a yearly basis while instituting additional water and sewer rate increases as district representatives see fit, according to Mark Davis, San Juan’s water project manager.
Because the district hasn’t budged on its demands, city council members passed a resolution last month stating they’re prepared to forge ahead without the district’s help, and fund the rest of the nearly $8 million project with outside grants and loans.
But the district is concerned that, given San Juan’s shaky financial history, it will be stuck with the bill if the city is unable to come up with more than $1 million in matching funds.
While Tobias believes the two parties will be able to meet and begin working on a solution to the problems, there remains a sticking point that could derail the meeting.
Water board members do not want San Juan’s water project manager, Davis, to attend, and Coile stated she hasn’t decided whether she’ll attend the meeting without Davis. Tobias said Davis is not invited because he is not a stake holder in the grant, but Coile is leery of making a move without his direct input because he’s been heading the project for six years.
“Until I review this with Mayor (Arturo) Medina, I can’t say whether the city will or will not attend a meeting without Mark Davis, who has been acting as an extension of city staff on the project since 1999 and has experience in successfully constructing $250 million of EDA-funded projects,” Coile stated in an e-mail. “It is my understanding that the water district has limited experience in federally-funded construction projects.”
While Tobias believes the door is now open for discussion, he said some of Coile’s statements made water board members wonder if she understands the terms of the district’s agreement.
Coile stated at the meeting that part of the water district’s $3.1 million match is a $2 million loan to the city, but Tobias said the $2 million is a contribution that is not required to be repaid. The rest is a long-term loan, he said.
“I don’t know that she’s clear on the concept on the table,” Tobias said. “But we agreed to set up a meeting and hopefully we can clear all this up and not derail the agreement any longer.”
Getting the two groups together to talk about their differences is something Supervisor Anthony Botelho said he’s been trying to make happen for months. However, some of Coile’s statements Wednesday caused him to question her abilities in leading the city’s charge in their fight to keep the grant, he said.
“Some in the community wonder if the city of San Juan Bautista can be treated fairly by the water district since one board member is a cousin of Supervisor Botelho and another is his business partner,” Coile said during the meeting.
Botelho, who represents San Juan Bautista, was puzzled as to why the fact that his second cousin, Frank Bettencourt or his business partner, Ken Perry’s place on the water board would influence the course of negotiations between San Juan and the water district. He said the only involvement he’s had is an attempt to facilitate cooperation between the two parties over the last few weeks.
“If she could offer evidence that I have not been working in the interest of San Juan I would like to see it. I’m very disappointed in how she’s handling this issue,” Botelho said. “The communication between San Juan and the water district has been broke down since day one that she’s been there. I tend to agree with John Tobias that Jennifer Coile has not read the agreement and doesn’t understand it.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or em*******@***********ws.com
