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You can use AutomateIt to turn on your WiFi when your phone is in a certain location by GPS, but what you're asking for isn't possible. WiFi has to be on for the phone to check for open WiFi networks.
I just started using Y5 - it works great so far. It doesn't use gps like other ones but uses the cell towers within range so it knows when to turn on or off your wifi radio.
I use Green battery power. Love it way more than JD as it does exactly as you stated. It will look for a wifi signal and if there is none it will go 3G. If there is any wifi available in the area it will let you know and you can connect that way./ Also noticed i get about and extra 10 hrs on this app.