San Juan Bautista leaders shouldn’t be holding a collective
breath and hoping the federal Economic Development Administration
is going to fund the $3.8 million grant the Mission City needs to
make improvements to its water infrastructure.
San Juan Bautista leaders shouldn’t be holding a collective breath and hoping the federal Economic Development Administration is going to fund the $3.8 million grant the Mission City needs to make improvements to its water infrastructure.
The U.S. Department of Commerce’s Office of the Inspector General recently completed an audit recommending that the EDA consider “terminating the award … and putting the funds to better use.”
The audit report states that city officials just didn’t provide the information needed to evaluate San Juan Bautista’s ability to manage the grant. The audit goes on to note that the EDA gives financial assistance only to “those recipients who are competently managed, responsible and committed to achieving the objectives of the awards they receive.”
This is not a positive sign. In fact, it’s a very discouraging sign. The Mission City’s $10.4 million water project includes the construction of a new water treatment plant as well as new pipes and other infrastructure. Without this grant, San Juan Bautista is stuck between a rock and a hard place. The Central Coast Regional Water Quality Control Board ordered San Juan to improve its water quality. The loss (or potential loss) of $3.8 million in funding for this $10.4 million project is troublesome.
Instead of waiting for the EDA to buck the auditor’s report and go ahead and award San Juan the grant, city officials have two choices as far as we can see: Either start looking for other funding sources or go back to the table with the San Benito County Water District.
Going back to work with the San Benito County Water Board might be enough to convince the EDA that the grant will be “competently managed.” It could also be a show of good faith on the part of the city.
The EDA grant was originally awarded in February 2005 to both San Juan Bautista and the San Benito County Water District. However, negotiations between the city and the water district broke down, leading to the grant’s suspension in August of 2005. Since then, the water district has written to the EDA saying it is withdrawing from the grant, but will still contribute $2.2 million to the project.
It’s high time for smart action on this project. San Juan leaders need to go back to the drawing board with the San Benito County Water District or start searching for another $3.8 million to fund a long overdue project.
