City wants to float $4.5 million bond to launch water
infrastructure project
Never mind. While San Juan leaders are optimistic about moving
ahead with a badly needed water infrastructure project, their
partners in the endeavor are remaining silent and appear to be
waiting for federal grant givers to pull the plug.
City wants to float $4.5 million bond to launch water infrastructure project
Never mind.
While San Juan leaders are optimistic about moving ahead with a badly needed water infrastructure project, their partners in the endeavor are remaining silent and appear to be waiting for federal grant givers to pull the plug.
Now San Juan officials plan to float a $4.5 million private bond to move the project forward – with or without their partner.
Last week, hope ran high among residents of the Mission Town when negotiations in the soured $8.9 million water deal were set to resume between the two agencies in the matter – that is, the City of San Juan Bautista and the San Benito County Water District.
But something seems to have gone awry in a recent closed meeting between the two: on Tuesday San Juan officials announced at a Town Hall Meeting they were moving ahead as the lead agency in the ambitious project, and said they expected the water district to contribute $2 million in taxpayer funds to the city to make the improvements to their aging water system possible. The water district was to have contributed the $2 million, added to $3.8 million from the federal Economic Development Administration, but the district insists that the $2 million be a loan. By the time the city pays it off in 20 years, city officials say, the water system would be outdated and in need of replacement again.
The district’s reticence, say San Juan officials, are forcing them to float a $4.5 million private bond to make up the difference. But they are confidant they can pull it off.
San Juan’s Project Manager, Mark Davis, fueled hope for the city’s plans at the meeting when he gave an overview of the many facets of the project.
“We would hope we could contract all work simultaneously, so we could finish the construction in a year and a half,” Davis told the audience.
City Manager Jan McClintock and Mayor Dan Reed attended a San Benito Water District meeting Wednesday evening, in which the two gave the board a proposal the city created in order to fund the project. McClintock gave the main points of the proposal, which included floating the private bond, asked that the city’s proposal be agendized at the next water board meeting, then asked if there were any questions.
“There was no comment, no questions,” McClintock said the next day. She added that immediately after her presentation, the board went on to their next item.
Officials of the water district refused to return numerous calls from The Pinnacle seeking comment.
City officials contend that the water district desires to own the city’s entire water system, a notion San Juan leaders are not willing to concede. They also object to the water district’s insistence on setting the new rate schedule, especially since city leaders have not been told what the new rates would be.
McClintock and other San Juan officials invited lead officials from the water district to the open Town Hall Meeting, combined with a specially held City Council meeting Tuesday night at San Juan City Hall. The water district sent their attorney and their lead engineer to the meeting, but declined to attend.
“We had expected (water district Director) John Gregg or one of the board members would come,” McClintock said.
Members of the San Benito County Grand Jury, which recently demanded an end to the stand-off, were also expected to attend. It appeared no grand jury members attended.
The water infrastructure project, as detailed again at the meeting for attending citizens, will consist of a new water treatment plant, a new expanded city reservoir and new water lines that will provide a blend of “blue valve” water from the San Felipe Reservoir and the city’s well water. The result will bring nitrate and salt levels down, which is crucial if the city expects to beat cease-and-desist orders issued by the Central Coast Regional Water Quality Control Board, as well as the Department of Health Services.
The regional water boar dissued an order for the city to cut back on high salt and mineral concentrations being discharged as a result of residential water softeners. The state Health Department also issued an order to the city to upgrade its water held in storage.
“If the city were not to move on this project, we will be fined $3,000 to $10,000 a day,” Davis said.
Davis said 90 percent of the water project has been mapped out and designed.
Resident Tony Boch, one of the few who attended the Town Hall Meeting, voiced his concern for the stalled project and appreciation for city officials in their efforts to move the project forward.
“I want to compliment you and the council for getting this back on track,” Boch said to Davis. “I don’t know if the average citizen in this town realizes what would happen if this project fell to hell. Property values would go down. It’s too bad it took a Grand Jury to do it.”
Still, Councilman Chuck Geiger expressed misgivings that the city is moving on the project without the water district.
“The problem I have is, once again, we want to run the whole show – and we say to them, ‘By the way, we want you to give us $2 million,'” Geiger said after the meeting. “I still believe we should be a full partner with the water district.”
Nonetheless, Geiger voted along with his fellow council members to approve the city proposal, which was presented to the district the following night.
