Federal shutdown stalls Garstin water facility, forcing Big Bear Lake DWP to tap reserves

The Big Bear Lake Department of Water and Power is caught in a financial bind of the federal government's making: construction on the long-planned Garstin Water Operations Facility cannot officially begin — and interim project financing cannot be secured — until Washington issues a Notice to Proceed that has been held up by the federal government shutdown.[1]

To keep the project from falling apart in the meantime, the DWP Board voted unanimously 5-0 on October 28, 2025 to approve Resolution No. DWP 2025-11, authorizing the agency to spend up to approximately $1.2 million from its own cash reserves during the first 60 days of construction and then seek reimbursement from loan proceeds once financing is in place.[1]

The urgency stems from the contractor's bid expiration. CFO Nathan Statham and General Manager Reggie Lamson told the board that the contractor's bids were only valid for 60 days — a window that closed around October 1, 2025.[1] The contractor is now pressing to order materials and lock in subcontracts as quickly as possible to avoid cost increases that could result from further delays.[1] Without the Notice to Proceed, DWP has no access to interim financing, leaving the agency's own reserves as the only bridge.[1]

Statham told the board the math works out: once the interim loan is funded, those proceeds will replenish whatever reserves DWP draws down.[1] When Board Chair Bob Tarras asked when construction would actually start, Statham's answer was blunt — the day after the government shutdown ends.[1]

In a related 5-0 vote, the board also awarded an on-call agreement to Verdantas, Inc. for geotechnical, special inspection, and materials testing services for the Garstin project.[1] Verdantas had been involved during the project's design phase, which factored into staff's recommendation.

What to watch: The timeline for the entire Garstin project remains hostage to a federal decision outside DWP's control. Board members asked staff to request that the contractor update the project schedule to account for the ongoing shutdown. Big Bear News will seek comment from DWP's General Manager and the contractor on the financial risk if the shutdown extends beyond what the current reserve authorization covers. The board's next regular meeting has not been publicly announced at this time.