The president of the county water board praised the city of San
Juan Bautista for
”
good management
”
as the Mission City begins to lay the groundwork to overhaul the
city’s dilapidated water system – a marked contrast to the recent
acrimony between the two agencies.
San Juan Bautista – The president of the county water board praised the city of San Juan Bautista for “good management” as the Mission City begins to lay the groundwork to overhaul the city’s dilapidated water system – a marked contrast to the recent acrimony between the two agencies.
City Council members voted Tuesday to seek a $500,000 line of credit from San Benito Bank – nearly half the amount of the city’s entire yearly budget – to fund preliminary projects associated with the total revamping of the city’s water and sewer system. That has San Benito County Water Board President John Tobias pleased with city officials’ foresight and management practices.
“It’s good management on their side of the program,” said Tobias, who has voiced concerns about the city’s shaky financial and political history. “I think that they’re getting some things in place to go forward.”
The two agencies have been feuding over control of the project to update San Juan’s water system since the summer, and their inability to reach an agreement has led the federal government to suspend the grant until the matter is resolved. The grant is intended to repair San Juan’s leaky and dilapidated water and sewer system, which hasn’t been updated in decades.
The $500,000 in credit would enable San Juan to pay for costs associated with any type of pre-construction expenses the city might incur before actual construction begins on the infrastructure project, according to City Manager Jennifer Coile. For example it could pay for some street work, engineering designs and any environmental consultants needed to begin construction but that are not included under the grant’s financial provisions, according to officials.
Although San Juan and the water district jointly received the $3.8 million grant from the Economic Development Agency in February, Tobias notified the federal government in July that San Juan was failing to abide by the terms of the agreement to administer the grant. Specifically, he said San Juan was attempting to modify the government’s terms of the agreement by itself.
His letter caused the EDA to suspend the grant and prompted San Juan to threaten to proceed with the project without the water district’s help or money if a satisfactory agreement couldn’t be reached. The entire project will cost more than $7 million by the time it’s complete, and the water district agreed to match the federal grant, which is still officially suspended, with about $3.1 million in grants and loans.
The government’s suspension caused a communication stalemate between the two agencies, which was breached last week when representatives from both sides met for the first time in months to discuss the possibility of creating a new more agreeable contract. San Juan complained the original agreement gave the water district too much control over certain city services such as water and sewer rate increases.
Although San Juan officials have said they’re looking at other funding sources to proceed without the water district’s $3.1 million match, Tobias doesn’t believe this is San Juan’s first step toward a solitary run at the federal money. He also said the water district has absolutely no intention of backing out of the grant.
He does believe the credit approval shows prudent thinking on city official’s parts and a positive outlook that has been lacking over the past few months.
“We all hope the grant goes forward,” he said. “It’s a good idea for them to get other projects lined up so when things get moving they’ll be ready.”
While Tobias sees a light at the end of the tunnel, Supervisor Anthony Botelho, who has been critical of both parties since the grant was suspended, wasn’t as optimistic.
“I would feel more comfortable if the suspension of the grant was rescinded and there was a working agreement in place,” Botelho said. “As of today neither is the case. There’s definite needs for improvement to the infrastructure, but hopefully we’re going about it in the most prudent manner.”
Erin Musgrave covers public safety for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected].
