San Juan Bautista
– The City of San Juan Bautista and the San Benito County Water
District announced yesterday that the two agencies have reached a
tentative agreement for the role each will play in the city’s $9
million water system upgrade.
San Juan Bautista – The City of San Juan Bautista and the San Benito County Water District announced yesterday that the two agencies have reached a tentative agreement for the role each will play in the city’s $9 million water system upgrade.
San Juan residents have endured an antiquated and leaky water system for decades. Last spring, the city learned it had received funding to replace the system, including a $3.8 million grant from the Economic Development Agency. An impasse between the city and water district over the project resulted in the suspension of the EDA grant, bruised egos on the city council and water board, and derailed the water project. The latest agreement could put the upgrade back on track.
“We were tired of the stalemate,” said Ken Perry, water board trustee. “Obviously they don’t want to be partners with us and if they think they can do this better, then we have to concede. I don’t believe this is in the best interest of the city’s tax payers, but I hope it is.”
The water district informed San Juan in a letter Tuesday morning that the agreement was acceptable if the city adds a hold harmless clause freeing the district of liability in the project. The San Juan City Council will decide on the latest proposal during a special meeting next Wednesday.
“We’re just waiting for our lawyers to dot all the I’s and cross the T’s before we go forward,” said San Juan Bautista City Manager Jan McClintock.
The city also received word of a $500,000 loan commitment from San Benito Bank, enough to restart preliminary engineering work on the project, said McClintock. With any luck, the project will go out to bid in early summer.
The terms of the new agreement state that the water district only will pay for a portion of the project’s construction with a $2 million grant after the project is completed and certified by the Department of Health Services, a move designed to minimize any financial risk to the district.
Under the terms of the original grant agreement, the water district would spend $3.1 million in funds to supplement the EDA’s grant and the city would chip $1 million. The new proposal asks that the water district fund $2 million of the project, leaving San Juan to raise just over $3 million on their own, which they believe they can do with loans provided at better terms than the water district offered.
San Juan’s proposal specifically names the mission city as the lead agency in the project, and identifies the district as a supplemental water supplier and grant funding agency, which has been a point of contention in the past.
The San Benito County Civil Grand Jury conducted an investigation of the grant’s suspension and released its report on the matter at the end of February. Both parties were required to respond in writing within 90 days, and will do so formally after the agreement is voted on.
Danielle Smith covers education for the Free Lance. Reach her at 637-5566, ext. 336 or [email protected]
