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Can future power sale revenue solve Colfax’s problem?
Counterpoint
Otis Wollan
Courtesy
Otis Wollan

It would be wonderful if we could conjure up a solution that promised Colfax relief at no cost. But it doesn’t serve the community to confuse or challenge with vague campaign promises of future potential monies.

We need to be clear about what we can and can’t do today. Construction at the sewer plant will be completed soon, and Colfax has to pay for that project now.

Yes, in 2013 there will be a new source of revenue for all Placer County citizens from PCWA power sales. On Jan. 10, 2006, the Board of Supervisors and PCWA Board unanimously created the Joint Power Authority (JPA) governing use of those funds (10-0, Otis Wollan and Bruce Kranz voting “yes” for District 5).

Here’s how it works:

l All funds borrowed from the County Treasury can only be applied toward the 2013 relicensing of the PCWA power project.

l Beginning in 2013, fund priorities shall be in this priority: operations and maintenance, debt repayment, and system improvement. Beyond that:

l “Equal distribution to the County and the Agency of all remaining power revenues.”

This is not just a proposal; it’s the law.

PCWA Board unanimously passed this May 2008 policy to guide how it will spend its share of post-2013 power revenues.

Those priorities include water projects, energy infrastructure, water quality improvement and watershed protection. Wastewater investments were considered, and we found that PCWA’s charter does not allow investment directly in wastewater (or flood control or fire control).

So if Colfax is to receive funds post-2013 for its sewer plant, it will have to come from the county side. As yet, the Board of Supervisors has not passed a policy guiding their post-2013 expenditures.

Neither county nor the PCWA Board can “dedicate” future potential revenue. Today’s decision-makers can’t bind a future board’s appropriations of future funds except through borrowing, which is expressly prohibited by the JPA for anything but re-licensing costs.

The Colfax City Council may want a joint presentation by County and PCWA staff to clarify these facts.

This is really about the law and not about campaign promises during an election season.

What will matter is who is elected in 2012 and beyond, for they will make the appropriation of “remaining funds” from power sales. Can Colfax wait until 2014 or beyond?

Candidates for PCWA Director and County Supervisor should debate the power revenue issue in this campaign as well as fire threat, aging infrastructure, water supply reliability, and other pressing concerns.

Perhaps someone will sponsor a local live candidate debate, or the Record could host specific issue debates on its pages.

But the City of Colfax would be ill advised to count on the distant potential of PCWA power system revenues as the solution for its sewer plant.

-- Otis Wollan is currently PCWA Director representing District 5. He is a candidate for re-election.

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1 comment on this item

Debate? Anytime, anywhere!

I want an answer to why Middle Fork Project revenues should not be prevented from entering the general funds of PCWA and the County. The boards who wrote the law claim to be contrained by it, how much sillier does it get?

I am advocating for the proposal to not let MFP revenues leave the Joint Powers Authority, or a proposal that would have the same effect of keeping MFP revenues out of the general funds. Those of us from California know that if the revenues make it to the general fund, they will be used for bloated administrative salaries, Taj Mahal administrative buildings, and perhaps a few bucks going back to the taxpayers.

Every property in Placer County has paying taxes into PCWA for 40 years (regardless where they get their water), and when we finally have a chance to benefit from the investment, we're told to Buzz Off.

www.benmavy.com

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