$3.8 million EDA grant still up in the air
Two years after the Economic Development Administration offered
a grant to San Juan Bautista, the water situation is still murky in
the Mission city.
$3.8 million EDA grant still up in the air
Two years after the Economic Development Administration offered a grant to San Juan Bautista, the water situation is still murky in the Mission city.
Though the city seems determined to move forward with plans to have construction on a new treatment facility in place starting in the fall, it is unclear how they plan to finance the $10 million project, especially with the fate of an almost $4 million grant now in question.
For more than a decade, San Juan officials worked hard to obtain a federal EDA grant worth $3.8 million in order to upgrade the archaic and inadequate water system that services the town of 1,700 people. When the city finally landed the grant in early 2005, the EDA made the San Benito Water District a co-recipient of the funds along with the city.
The new treatment facility would take an estimated 18-20 months to complete once construction is started. Currently water, goes into San Juan from a well and is treated through a chlorination process before it gets to residents. Once it gets to the home, most people have to use a water softening system in order to make the water more usable because the local water contains salt. Once the water is removed from the home, it enters a treatment facility where as many solids as can be are removed and then the water is discharged to the surface.
With the new system, the water entering homes would be much softer from the start, because it would be mixed with water from the San Justo Reservoir. This would eliminate the need for additional water softening systems necessary in homes.
In August of that same year negotiations between the city and the water district broke down, leading to the grant’s suspension, according to John Gregg, district manager and engineer with the San Benito County Water District. By 2006, the two agencies had parted ways and San Juan continued to pursue the water improvement project on its own.
Gregg, said that relations between San Juan and the water district were great at first, but over time dissolved.
“The city and the water district were unable to come to terms on insurances for action and performance,” Gregg said. “In the end, we were unable to come to an agreement so we agreed to withdraw from the partnership. However, since we were co-applicants on the grant it was up to the EDA to decide how they proceeded.”
Now the U.S. Department of Commerce’s office of the Inspector General has completed an audit recommending that the EDA consider terminating the award that would have funded a good chunk of the project and suggested putting the funds to better use. The EDA did not return requests for comments by press time.
The city of San Juan staff is refuting the claims levied in the audit findings though.
“They came out here and we’re not sure what they did while they were here,” said San Juan City Manager Jan McClintock. “It certainly wasn’t an audit.”
In the audit report, the EDA cited that the city did not provide access to the documentation and key personnel necessary to accomplish the intended objectives. Consequently they said they were unable to determine whether the city had the requisite institutional, managerial, and financial capabilities to ensure proper planning, management and completion of the EDA grant project.
City officials said they were unclear as to why the auditor made allegations in their report as to difficulties interviewing city personnel and refusals to notify key personnel regarding availability.
San Juan City Officials have been working with both their U.S. Senators to understand why the Department of Commerce made the recommendations. But nobody seems to have the answers. McClintock said the word city officials received from the senators’ office is that they could not get a reason either.
“The EDA has been very good about working with us,” McClintock said. “They’ve been giving us verbal confirmations for quite a while, but we’ve yet to see anything in writing. The only reason an audit was done was because the EDA sat on the grant for so long. We’d love to know why that is, but nobody’s saying.”
Regardless of what happens with the grant, McClintock said that the city will start construction on the treatment system. The city has no choice.
“The longer the project is delayed by anyone, the more it will end up costing ratepayers and that’s just not right,” McClintock said. “There are no alternatives to doing this project. It has to be done. We’ve studied the components and analyzed the alternatives. We have every confidence that we’re going to be successful.”
If for some reason the city does not receive the grant the water rate structure will have to be re-evaluated, McClintock said. The deficit of $3.8 million would need to be made up for by ratepayers within the city limits – about 400 homes.
“The bottom line is that we have every expectation that the suspension will be lifted,” McClintock said.
Whether or not it is viable for San Juan to carry on with a project that could cost the city upwards of $10 million should grant funding not come through is something that some residents have a problem with.
Former city councilman Chuck Geiger said it is irresponsible for the city to suggest moving forward on a water treatment project without the cooperation of the San Benito County Water District.
“Where is this money for the project going to come from?” Geiger asked. “The rate increases will be uncontested since nobody ever comes to the council meetings. Suddenly people are going to be faced with water rates that they can’t handle because the city went charging ahead.”
