BBARWA board deadlocks on federal loan for Replenish Big Bear water project

The Big Bear Area Regional Wastewater Agency's governing board hit an impasse at its August 26, 2026 meeting, failing to advance a low-interest federal loan that could help finance the Greenspot Recharge Project — a cornerstone of the agency's Replenish Big Bear water recycling initiative. Chair Kendi Segovia's motion to bring the WIFIA loan back for formal reconsideration at a future meeting fell 3-2, with Directors John Russo and Larry Walsh voting no. A second attempt to revisit the vote later the same evening failed by the same margin^[1].

What is the WIFIA loan, and why does it require a supermajority?

WIFIA — the Water Infrastructure Finance and Innovation Act — is a federal lending program that offers large infrastructure projects below-market interest rates. For BBARWA, it would be one of the primary financing tools for the Greenspot Recharge Project, which is designed to recharge the Big Bear Valley groundwater basin using recycled wastewater.

The stakes of the board split are unusually high because of a procedural threshold: the agency's General Manager notified the board that approving the WIFIA loan requires a 4/5 supermajority vote — meaning all five board members except one must agree^[1]. With Russo and Walsh forming a consistent two-vote bloc in opposition, the agency cannot meet that bar under the current board alignment. Segovia's motions to keep the loan in consideration were more limited — simply directing staff to return with more information — but those, too, failed.

The rationale behind Russo's and Walsh's opposition was not recorded in the meeting minutes. Their perspective on why the WIFIA loan and additional consultant spending should not proceed is the key absent voice in this story.

Consultants get more funding despite the split

Even as the WIFIA loan itself remained stuck, the board's three-member majority approved two contract amendments that keep preparatory work alive — both on 3-2 votes with Russo and Walsh again in opposition.

The board approved a $15,000 Amendment No. 2 to its agreement with NHA Advisors LLC, the financial advisory firm whose Vice-President Christian Sprunger presented the updated Funding and Financing Plan at the meeting. That brings NHA Advisors' total contract for WIFIA loan application and financial plan development to $110,000^[1].

The board also approved a $43,000 Amendment No. 7 to the contract with environmental consultant Tom Dodson & Associates for environmental services related to Replenish Big Bear, bringing that firm's total contract to $478,413^[1]. Together, the two amendments add $58,000 in new spending to the project — work the minority may view as premature if the loan itself cannot be authorized.

What else happened at the meeting

The board took several unanimous actions. It adopted resolutions congratulating the Big Bear City Community Services District on 60 years of service, the City of Big Bear Lake on 46 years of service, and the County of San Bernardino Community Services Area 53B on 58 years of service^[1]. It also unanimously adopted Resolution No. R. 14-2026, declaring a portion of agency-owned property (APN 0315-253-51) as exempt surplus land for the agency's own use under California Government Code Section 54221^[1].

On a more serious note, board members expressed concern during the Comments and Announcements portion of the meeting over threats that had been made against one of their members^[1]. No further detail on the nature of the threats was recorded in the minutes.

What to watch

The WIFIA loan's path forward depends entirely on whether the board's alignment shifts. Because the supermajority requirement leaves no margin for even a single dissenting vote, Russo and Walsh's opposition is effectively a veto. The next regular BBARWA board meeting is not yet posted publicly as of this writing; residents and ratepayers can monitor the agency's meeting calendar at bbarwa.org or contact the agency at 121 Palomino Drive, Big Bear City, CA 92314.