July 7, 2006 - Bonanza - Kranz Toting Plan

Kranz toting plan district

Kara Fox
bonanza news service
July 7, 2006

Placer County is set to receive between $20 million and $95 million in 2013 from expired revenue bonds, money that Supervisor Bruce Kranz would like to see go toward water and energy infrastructure projects.

In 1963, the Placer County Water Agency and Pacific Gas and Electric formed a partnership to finance the construction of the Middle Fork American River Project, a project that was completed in 1967 and includes two major reservoirs, seven dams, five hydro-electric plants and 21-miles of tunnels that produces 244 mega watts of electricity a year.

PG&E agreed to pay all of the operating costs for the project and pay off debt in return for all of the power produced until the bonds are retired in 2013. The agency agreed to issue $100 million in tax-free revenue bonds for the construction of the project and received the rights to all of the water developed by the project.

The water agency and the Placer County Board of Supervisors signed a joint powers authority agreement in January and in 2013 both groups will split the revenues in half and use the money for how they see fit.

However, Kranz, the District 5 supervisor, would like to see that money used for projects that the bonds had intended to construct.

"PCWA can't spend a nickel until the board of supervisors approves it. They have to share the money with us. ... everybody in the world is going to come after us asking us for this money," Kranz told members of the Squaw Valley Municipal Advisory Council Thursday.

Kranz said he believes the project should be paid back to the residents of Placer County who agreed to the revenue bonds.

He said he would like to see $1 million to $4 million a year go toward grants and low-interest loans for individuals and private companies that are struggling, while $10 million a year would go to grants and loans to special districts and cities with water and energy projects. Seven million dollars a year would go towards county-wide projects for infrastructure support and watershed remediation caused by wildfire.

Kranz is currently toting his plan throughout his district seeking endorsements and letters of support. He also formed an adhoc committee that will meet later this month to discuss the idea. He will then move to other parts of the county to seek support. He currently has support from the City of Colfax, Foresthill Public Utility District, California Assemblyman Tim Leslie (R) and the Midway Heights County Water District.

"My plan is to build momentum before I go to the board of supervisors," Kranz said. "Right now they know my plan, I told them. But they are basically hoping that I go away. I'm not going away. I'm going to keep on pushing this issue."

Home > Board of Supervisors > District 5 > Bruce In The News > > July 7, 2006 - Bonanza
	July 7, 2006 - Bonanza - Kranz Toting Plan Kranz toting plan district Kara Fox bonanza news service July 7, 2006 Placer County is set to receive between $20 million and $95 million in 2013 from expired revenue bonds, money that Supervisor Bruce Kranz would like to see go toward water and energy infrastructure projects. In 1963, the Placer County Water Agency and Pacific Gas and Electric formed a partnership to finance the construction of the Middle Fork American River Project, a project that was completed in 1967 and includes two major reservoirs, seven dams, five hydro-electric plants and 21-miles of tunnels that produces 244 mega watts of electricity a year. PG&E agreed to pay all of the operating costs for the project and pay off debt in return for all of the power produced until the bonds are retired in 2013. The agency agreed to issue $100 million in tax-free revenue bonds for the construction of the project and received the rights to all of the water developed by the project. The water agency and the Placer County Board of Supervisors signed a joint powers authority agreement in January and in 2013 both groups will split the revenues in half and use the money for how they see fit. However, Kranz, the District 5 supervisor, would like to see that money used for projects that the bonds had intended to construct. "PCWA can't spend a nickel until the board of supervisors approves it. They have to share the money with us. ... everybody in the world is going to come after us asking us for this money," Kranz told members of the Squaw Valley Municipal Advisory Council Thursday. Kranz said he believes the project should be paid back to the residents of Placer County who agreed to the revenue bonds. He said he would like to see $1 million to $4 million a year go toward grants and low-interest loans for individuals and private companies that are struggling, while $10 million a year would go to grants and loans to special districts and cities with water and energy projects. Seven million dollars a year would go towards county-wide projects for infrastructure support and watershed remediation caused by wildfire. Kranz is currently toting his plan throughout his district seeking endorsements and letters of support. He also formed an adhoc committee that will meet later this month to discuss the idea. He will then move to other parts of the county to seek support. He currently has support from the City of Colfax, Foresthill Public Utility District, California Assemblyman Tim Leslie (R) and the Midway Heights County Water District. "My plan is to build momentum before I go to the board of supervisors," Kranz said. "Right now they know my plan, I told them. But they are basically hoping that I go away. I'm not going away. I'm going to keep on pushing this issue."