Months after cost overruns in the renovation of two farmworker camps caused a political stir all over Napa Valley, local government agencies have unveiled a plan to share the burden of what is now estimated to be $2.2 million in unexpected expenses.

St. Helena is set to be the first city to formalize an agreement between Napa County governments to cover overruns at camps in Calistoga and Rutherford. The St. Helena City Council meeting tonight represents the first public airing of the details of the settlement agreement, worked out largely behind closed doors in recent months.

According to the agreement, local governments including the five cities and the county agreed in principle to pay up to $557,711 toward a $2.2 million deficit caused by overruns on renovations of the Mondavi and Calistoga centers.

The agreement estimates the remaining $1.67 million will be taken care of by three grants, two of which are not certain to be awarded yet.

One grant, for $775,000, was agreed to by the state in 2005 and is expected to be awarded in September.

The two uncertain grants account for $896,000 — $691,000 from a state farmworker housing grant that could be awarded by the state before June 30, and a $205,000 grant from the Napa Valley Vintners that could be awarded from Auction Napa Valley proceeds in the fall.

If either or both of those grants fail to materialize, the agreement puts the onus on the city of Napa, its housing authority and the county to come up with a way to pay the difference.

Either way, all three Upvalley cities and American Canyon will each pay $46,475 out of housing trust funds and call it a day.

“The $46,000 closes this chapter for us,” said Bert Johansson, St. Helena city manager.

Johansson said the various governments decided to enter into a settlement agreement to avoid costly lawsuits and an even more protracted process.

“You can point fingers and have attorneys go at it all day long, (but) we’re going to spend more than $46,000 if we go down that road and it’s not the right thing to do,” he said.

The city of Napa and its housing authority will contribute $185,903, the same amount the Napa County Housing Authority will pay. The county is expected to ratify the settlement once all five cities have done so.

The agreement is part of a reorganization of the way farmworker housing is administered in Napa Valley. The county established its housing authority in April to take over administration and operation of the three farmworker centers from the Napa Valley Housing Authority.

The shakeup comes after revelations in November showing former Napa Valley Housing Authority Executive Director Peter Dreier used $1.4 million in the city of Napa’s housing reserves — without authorization — to cover construction cost overruns at the Mondavi and Calistoga farmworker centers.

The overruns stemmed from upgrades fire department inspectors required before work had been completed at the camps, but after the construction contracts for the projects had been approved.

Dreier retired under pressure in December.

An analysis of the system of checks and balances of the former housing authority system revealed Napa city and county housing monies were stored in the same checking account and Dreier oversaw both agencies.

Bonnie Schoch, a St. Helena city council member who was a member of the Napa Valley Housing Authority, said the farmworker centers are better off now.

“I do believe its better off being overseen by the county and I think they’ve done a fantastic job, (Napa County Auditor-Controller) Pam Kindig especially,” she said.

The $2.2 million is the highest government-reported figure for the cost overruns to date. Kindig is due to release a draft audit of the Napa Valley Housing Authority to the county on May 15. The county housing authority is due to discuss demand for farmworker camps this morning.