Reservoir Expansion Seen Key Factor
California's water planners are weighing the effect of global warming on the Sierra runoff, the first time they've considered the impact of atmospheric warming in planning for California's water needs.
Scientists presented research papers to a state Department of Water Resources advisory council late last month suggesting that higher winter temperatures could melt much of the snow pack we depended on for drinking water, irrigation and power production.
The research will be incorporated in the new California Water Plan used to guide policy in the state in the future.
The findings of studies suggest that warming temperatures could decrease the Sierra snow pack by two thirds over the next 60 years if temperatures rise 2 to 4 degrees Celsius over that period as expected.
Studies by Scripps Institute scientists and Peter Gleick of the Oakland based Pacific Institute offered predictions that the timing and magnitude of the runoff could change. Gleick noted that the higher temps could increase water demand by crops compounding the problems for us in the central valley.
The state's chief hydrologist Maurice Roos said his estimate is that the level of snow pack could rise as much as 1500 feet figuring a three degree rise with the results tending to decrease snow pack more severely in the north Sierra more than the southern Sierra. In the Sacramento Valley mountains snow pack could decrease by 75% while in the southern Sierra that decrease may be only 23%.
Warmer temperatures may (or may not) affect the volume of precipitation but how the precipitation falls with more water coming down as rain instead of snow. The reports suggest even if overall precipitation doesn't rise on an annual basis the danger of larger floods is out there. The prediction has a number of implications for the central valley.
Valley reservoirs are designed and managed to both be flood control projects and holding basins for storing runoff used for spring and summer irrigation. If more water comes down in the winter instead of being held back as snow pack - some of that water might not be put to beneficial use since reservoir levels have to be lowered to accept a potential for flood water. It also would likely mean less hydroelectric production during the spring months when the lake is typically filled.
The filling problem would be compounded if spring runoff is reduced because of smaller snow packs.
The warmer temps could also affect the Delta region that depends on keeping sea water out to allow flows of fresh water. Sea levels would rise say scientists.
Two local agriculturists who sit on the advisory panel agree that planning for more storage is the net result.
Brent Graham of Tulare Lake Basin Water Storage District says that while he doesn't agree with notions that man is the main culprit in any global warming figuring mother nature and volcanos have more to say about it. Still, "the effect of predictions is to move us toward more water storage availability - where we are heading anyway." Tipton farmer Nancy Pitigliano says her concern is the need for "long term planning because of the lead time to build new facilities" to manage water.
The good news is that a major expansion of both the Terminus reservoir on the Kaweah and the Success reservoir on the Tule are moving forward. On June 25 a key House committee funded $5 million to expand Terminus by 43,000 acre feet by late 2003 and $770,000 to raise the spillway at Success by 10 ft. increasing its capacity as well.
Also on the San Joaquin River a Cal Fed funded study will soon begin to look at adding capacity at Millerton Lake and along the Friant Kern Canal that could benefit the central valley along with the Metropolitan Water District who may help contribute to some project. The focus of these studies is adding storage capacity along the Friant Kern Canal which is the water supply for about two thirds of Tulare County.
If global warming is going to mean bigger storms, more warm winter rains and potential increase in the size of the runoff, larger reservoirs will be the only thing standing in the way.
Kaweah Delta Water Conservation District assistant manager Roger Ray says it is already the "mission of the district" to capture and store flood waters all over the 350,000 acre district not just in an expanded Terminus Dam but in scores of new holding basins scattered around.
Ray says that because Terminus should be over a third larger when expanded they may be able to store more winter water in the lake allowing farmers to wait to take irrigation water later in the season. This year they had to release water from the lake in late May because it was about to spill over. He says farmers would rather pump groundwater early in the summer when costs are less and the water table is higher and take surface water later in the season.
Most scientists believe global warming is happening caused by man made release of greenhouse gases like CO2 from cars and other fossil fuels. The amount of CO2 in the world's atmosphere continues to rise.
Dr. Gleick's summation is that "the evidence is accumulating and convincing that the climate is already changing." Gleick's report says that "the world already has warmed by two thirds a degree C since 1900" and evidence that the "permafrost in the Alaskan arctic is beginning to thaw" and "mountain glaciers are melting at rates unprecedented in the instrumental record."
A January 2000 National Academy of Sciences study concluded that "the warming trend in global-surface temperature observations during the past 20 years is undoubtedly real and is substantially greater than the average rate of warming during the 20th century."
A separate report released in recent days by the group Environmental Defense focusing on the impact of global warming on Los Angeles paints a picture of more variable weather, hotter summer days, increased fires and potential water shortages for the area. The report "Hot Prospects" notes that the 1990s was the warmest decade in history and that spring is arriving sooner. The report says the impact on the Delta region near Sacramento is key since that area supplies most of the drinking water to L.A.
Metropolitan Water District of Los Angeles is getting just 35% of its allocation this year from the State Water Project that delivers water from northern California through the Delta.
The decrease in snow pack has some tough implications for farmers and power users as well. The heated temperatures will likely increase demand for water during irrigation season even as demand for power goes up during the same time as cities swelter. But a decrease in spring runoff will mean less water for irrigation and less water to turn the hydroelectric turbines.
Less snow pack can't be good news for winter recreationalists or ski resorts as well look at shorter seasons to make their money.
Asked if the loss of the snow pack would be a major blow to the Central Valley, water engineer Dennis Keller quipped "what snow pack?"
That's because in the spring of 2001 the state's snow pack has already melted relatively earlier and runoff in the southern Sierra was around 60% on the Kaweah and only 45% on the Tule. Other areas of the West have been even harder hit this season with the Pacific Northwest facing what is called the second worst drought in the last 60 years. The dry spell came just as summer temps in California heat up demand even as hydroelectric power from the Northwest is falling. The Bay Area, which demands increasing water for residential and high technology growth, is suffering under 50% water supply.
Lack of water this year has shrunk the Westlands Water District prompting plans to retire 200,000 acres of farmland. As much as 1 million acres of westside land is in jeopardy, says Dan Nelson, general manager for the San Luis & Delta-Mendota Water Authority, speaking to congressional panel on the water crisis this past weekend. In Westlands alone there is an estimated 800 fewer jobs on the farms hitting small communities like Mendota hard.
The way much of the state is watering their world this year is by carry over from last season which was relatively wet again proving the worth of water storage.
Last year on May 1 statewide runoff was 100% of normal - this year on May 1 it was only 45% of normal. Lack of May precipitation and hot temps resulted in lower runoff flows this spring on all central valley rivers.
Visalia - Visalia's big retail strip Mooney Boulevard "is looking a little shabby these days," admits assistant city manager Dianne Guzman who sees a lack of new investment and owners who aren't keeping up their properties as an ominous sign.
Indeed, along much of Visalia's famous 3 miles long street there has been no new remodeling or new construction on a major property with a few exceptions in the past couple of years. M and H Properties opened two new stores - Marshall's and Bed, Bath and Beyond over a year ago and in recent days after Home Base closed the company opened under its new format House 2 Home. Meanwhile over the past year the big furniture store, Heilig Meyers shut their doors and the place stands vacant. Save Mart closed and M and H Properties can't seem to fill the space.
Likewise, on north Mooney where successive fast food failures at the former Boston Market site has meant another empty building on what used to be "Money Blvd."
Right across from Visalia's biggest mall, old properties sit for sale with the vacant Winchell's donut storefront so weed filled it almost obscures the For Sale sign in front of it.
This block across Mooney from the mall is acreage Tustin developer Dave Paynter has been working on for the past few years, stuck on the cost of acquiring multiple properties, demolishing them and building a new shopping center perhaps as large as the Visalia Mall across the street. Paynter has had a tough time leasing the space to prospective tenants despite the fact they like the center of town location. Paynter is the guy that acquired the old Sin City apartments and knocked them down, but now for the past few years has been looking at only weeds to show for his efforts.
Visalia mayor Don Landers says there is only one reason Paynter and other Visalia developers are having trouble finalizing plans for developments and that is the pending application for a large shopping center just south of Packwood Creek being proposed by Monterey developer Don Orosco. "We're looking at a possible million square foot shopping center down there and other projects and tenants are on hold until a decision on that development is made," says the mayor.
The project could include a Lowes, Best Buy, a new Costco and new larger Target store along with multiple other smaller tenants and restaurants.
This week Orosco says the finalizing of his planned EIR on the project has been delayed a few more weeks. He says they are now planning to develop both sides of Mooney at the same time. Orosco says the south Mooney project "has got good momentum" and that tenants appear excited. Orosco, who fought hard against the 198/Plaza retail/entertainment project offered by Fresno developer Ed Kashain a couple of years ago champions his own project now on south Mooney as "following Visalia's long term growth plan."
But critics say taking mostly existing tenants off Mooney and relocating them to a new location to the south "creates big holes on Mooney that may be hard to infill." This according to developer Andy Mangano who is considering a run for Visalia city council.
Mangano's brother Craig is a rival commercial developer looking to develop a 30 acre shopping center at Akers/198. Andy himself has worked to try to lure Costco to a site he had under contract at Caldwell east of Mooney. Costco has been cagey however, and is waiting to see what happens with the Orosco deal before it tips its hand on an eventual expansion or relocation.
Critics of the Orosco project also include property owners on Caldwell and Demaree who once had Costco interested in their site but now haven't moved forward on their project either for the same reason "everyone is waiting to see what council decides about the Orosco project," says real estate agent Laura Walheim.
Will the project be an election hot potato? If you remember the last election, mayor Wally Gregory got caught up in controversy over whether he was too cozy with developer Ed Kashian. Landers says this time "the new city council ought to make that decision," since three seats are up in this coming November election.
Orosco's time line will be to release the draft EIR for the shopping center project likely in August allowing a 45 day comment period. Then the planning commission and city council will get their chance to pass judgement - perhaps right before the election - a fact that with opposition from other developers is very much likely to make the issue front page.
Landers says Orosco's "biggest hurdle" is not the developers but the cost of infrastructure that has to be put in to accommodate the development.
Orosco has said that if the community is worried about the vacant storefronts, he would back fill them with tenants or even buy a building like Target to lease back out.
Critics like Walheim and Mangano and others say allowing such a large development on south Mooney will duplicate what has happened in Fresno with River Park development that has hurt investment along the rest of Blackstone.
Orosco says he isn't surprised that opposition is surfacing to his project from competitors and that Visalia will enjoy its first major shopping center in decades with plenty of new tenants coming here because of the synergy a new center brings. Many retailers want to be located adjacent other big box users since they help draw the same crowd. That's the argument for all new power centers.
The council has said they would allow development south of Packwood Creek after "holding the line" for many decades. The property just beyond the Costco center is zoned "retail reserve." Perhaps the question of how fast and how big the development will be remains.
Visalia needs the retail sales dollar and the Orosco project may well deliver buckets of money. But just how the rest of Mooney might upgrade without major redevelopment monies remains very much in doubt. The city has said it doesn't have much left in the redevelopment district to fund another big Mooney project like they did at the Visalia Mall a few years ago.
In the meantime, it's not just developers around Visalia who are waiting for the decision on the big project, but in Tulare where retailers ponder a possible location but worry about the clout of a mega power center only a few miles away and how it will affect them.
While there is a very healthy Visalia Mall shopping center on mid Mooney, the place is out of room and faces a dilemma. To keep this, the town's number one shopping area, it needs to expand and is land-locked on all sides. Discussions between mall owner JP Realty and Mr. Paynter across Mooney died last year on a possible joint development.
USDA Official "Sank The Company" Console Charges
Lindsay - The former Lindsay Olive plant in Lindsay closed in 1992 ending a long history as the town's major employer. That's why in 1996 when local officials heard of interest by a Salinas area investor who wanted to develop a vegetable processing plant at the site promising 1000 year-round jobs or more - they were excited to say the least.
Now, five years later a fully equipped processing plant that operated only for six months after securing a USDA guaranteed loan, sits idle as the investor, Mort Console, struggles to reopen it. "We could be in operation by early this fall if the USDA just gave us the OK," says Console.
This month the project has gained local allies as a community group has joined the effort to get a "fair and impartial hearing" at the USDA to consider a new loan guarantee to the company by a new lender - Mission American Life Insurance. The group led by trucking company owner Jim Shropshire has had a number of local community meetings and hope to secure up to 10,000 signatures to weigh in with USDA Secretary Anne Veneman and politicians including Congressman Bill Thomas.
Thomas is the local congressman and a very powerful Republican in Washington and has the clout - supporters say privately - to influence USDA to take a new look at what happened in the past few years that kept the doors closed at Console Foods.
Console says what happened was that when the original loan guarantee was approved by the USDA National Office of Rural Development it approved $9.9 million for the project to be lent by Hibernia Bank to Console. But the State of California Office of Rural Development headed by program director Chuck Clendenin modified that approval down to $7.9 million because Clendenin says he was concerned about the "collateral value."
"We never had the working capital we need to get going," says Console. Pleading with the California USDA office to allow Hibernia to use some of the $7.9 million to use for capital expenses to get the new plant operational, Hibernia VP Norm Winter wrote Clendenin back in September 1998 that the bank was frustrated because Clendenin's office "is not applying generally acceptable and reasonable business standards, in order to bring this project to completion. This is especially discomforting when the project is within 30 days of being up and running."
Clendenin after cutting the original loan by $2 million would not allow any of the approved loan to be used for working capital despite the fact the company cut expenses saving on its purchase of machinery to equip the plant resulting in a surplus of $400,000 that could be used for that purpose. Hibernia Bank asked Clendenin to release the surplus amount for other uses including paying the loan payments owed to the bank. But the bank says that the California USDA office precluded any of the surplus for loan payments and even before the plant opened Console was in monetary default.
Winters letter to Clendenin goes on to say that "When I spoke with your staff this week and suggested that representatives from Hibernia, Console Foods and your office meet to bring some common sense to this process I was led to believe that this is an area not open to discussion."
Instead, USDA insisted the project be completed before the remaining funds are released.
Clendenin's reluctance to release more money was based on the USDA's original estimate that the value of the project was only $7.9 million. An appraisal after the equipment was installed came in at a much higher value - $17.5 million. Given the higher value of the project pointed out by Hibernia's Mr. Winters to the USDA, "It is totally unnecessary and counter productive for Rural Development and Hibernia Bank not to come to a common agreement in how to resolve this current situation," lamented the Hibernia VP.
Mort Console didn't let Mr. Clendenin's decision to keep a very short leash on the project without comment.
In two letters to Mr. Clendenin, (Console now says he could have held back some paragraphs.) Console scolded the USDA official because he had forced Hibernia to "close us down because you have spooked the bank" refusing to release monies for expenditures like plumbing supplies and electrical pipe, forklift rentals and interest payment on the company's freezer.
In simple terms Console wrote Clendenin "no freezer no company."
In a letter to Clendenin a day later Console vented that not allowing the bank to release funds to open the plant amounted to torpedoing the project. "You are shutting down this project and if the project collapses, you will be the one to have to explain why you allowed this to happen. You will also be the one to have to answer to those living in Tulare County and waiting for the jobs we will have to offer why in God's name you made these decisions which torpedoed their jobs at the same time that you sank this company."
Console says from the beginning he believes Mr. Clendenin scuttled the project denying the working capital it needed to start up. Later he even suggested that since the company was not paying some suppliers it was "the same as working capital." Console says he did not know then but knows now that USDA regulations "require the source of working capital be identified before a USDA loan is guaranteed and that Clendenin never did that.
Console says he and partner Leo McCarthy "put in over $3 million" into the project before they even applied for the Hibernia loan. "There was no other source of working capital except the loan from Hibernia," said Console who ended up in a lawsuit against his former bank lender that remains today. While Hibernia tried to accommodate their client, Console says, and Hibernia appears to agree that the USDA California office disallowed use of what were surplus funds at the start up time in September 1998 starting a death spiral downward of the processing company that ended up closing the place after only six months of operation in June 1999.
By then they owed farmers for product that was stored ready to be sold and was forced to sell that inventory "cents on the dollar" says financial consultant David Lensing to pay a judgement brought by the farmers.
Now Console seeks to reopen the plant with a new lender and a new loan guarantee request to USDA. Console says they had obtained national office approval for the new loan guarantees back in January - when the Clinton administration was still in power - but that Clendenin himself scuttled the new loan request in March of this year.
With the new administration coming in, the Department of Agriculture was in a transition period in March 2001 when the national office turned down a new request for a loan guarantee.
Now newly appointed California USDA Rural Development head Devon Nunes - Clendenin's boss - has recused himself from any decisions because he is from the area.
Mr. Clendenin referred calls to Washington for his story who says there is not much they can say because the matter is on appeal.
Console says "we're in a catch 22 situation" where the USDA office won't say why they turned us down and won't allow an appeal. We'd gladly waive any confidentiality if they tell everybody why they turned us down."
The new loan request for $10 million would pay off the amount paid by USDA to make good the original loan to Hibernia and provide working capital to reopen the plant, says Console. Console says the new loan would also help pay back monies he still owes to other parties. In a May 11 letter to the lender Clendenin wrote back denying any rehearing saying that there is still at least $5.3 million judgement against Console and that:
• Console does not have the required 20% equity.
• We continue to maintain the project is not financially feasible.
• In the end Clendenin says while the project may save 500 jobs, the USDA fund would be used for "at best, a marginal or substandard loan appraisal."
• However because the loan request did not meet certain standards it can't be appealed except to a third party agency - the National Appeals Division (NAD).
"It's always been our view," says Console's attorney Harvey Gould that "USDA made errors from the outset of the loan by not identifying a source of working capital." Console himself says if the new loan is approved by the USDA "all the problems get solved" including the lawsuit with Hibernia Bank where there would be a settlement of the payment issues.
Gould described what happened here as "a personal crusade to make sure the place never opened again" and Clendenin's refusal to allow loan proceeds to be used in ways both Console and the lender Hibernia thought best as "a formula for failure." Not allowing Console to tap his credit line to pay bills forced the company to put off paying current payables dooming the project, he says. "We were always playing catch up." Despite the fact the company had built up nearly $7 million in inventory - the processed vegetables - that was the basis for the line of credit Console had that inventory was sold off for only $2.5 million to pay the farmers as ordered by the court.
Contacted this week the NAD said they had just received Console's request and would make a decision in the next 30 days or so if the decision is even appealable. The NAD decision on an appeal is final.
If they do get a new hearing Console is asking for a new loan officer to take a fresh look at what happened in Lindsay in hopes they can still make frozen spinach and cauliflower in this town where 50% unemployment has been a way of life.
If the project fails to get a new hearing the dispute between Console and Hibernia goes on and the lights remain out at Console Foods. "Every day that place just sits there, it depreciates," says Gould. Even if this appeal fails "no one's going to open this plant for years if ever."
Others say that if Console finally gives up somebody new could come along with a strong financial grounding to bring jobs to this small farm town. For now Mr. Console's group is the only game in town and the community is going to bat with the guy that brought them to the dance. Expect some word on this in a month.
Visalia - Kaweah Delta Health Care District is now proposing up to five new projects on their Cypress campus along Akers with administrator Lindsay Mann saying this week that they've come up with a plan to accommodate the projects on the relatively tight acreage available to them by going multi story on the projects originally slated as single story.
A few weeks ago the board of the hospital was lobbying the city council for the city owned 30 acre parcel across Akers south of 198 as their first choice design, but the council turned the idea down. That forced the health care district back on the land they already own and the possibility of more land nearby as a future option.
Visalia mayor Don Landers hailed the hospital's decision. "We've been talking about saving ag land and building up and not out," he says. "Look at other hospitals, like in the Fresno area, who are all building multi story." Landers says while the health care district had sought the city owned land across Akers "that land was under contract to Westland Development for a shopping center and I think they heard the message the city did not want to sell it."
To accommodate the new Sequoia Regional Cancer Center and a new imaging center to be built side by side, the district chose the hospital's soccer field to the east of the Lifestyle Center for the adjacent projects. (See chart)
To accommodate a proposed new multi story office complex for physicians, the district offered their choice piece - some 4.5 acres at Cypress St. and Akers in front of the Lifestyle Center. An alternative site for physicians offices or a possible second physician office could be located behing the mental health facility.
Mann said that the district might use the depressed water basin in back of the surgical center in the future for multi story parking "although we don't need that right now."
Mann said there has been discussion of use of Constitutional Park and some residential land nearby in the long range for expansion of the campus some time in the future.
The tandem cancer center and imaging center project could start construction as soon as early next year.
Tulare - "This place has the potential to attract lots of people all year long," says former Tulare County EDC president Soapy Tompkins speaking of the World Ag Expo grounds.
Soapy was interim director of the development agency for 10 months until the agency selected a permanent director that allowed Soapy to go back to the private sector. Since then she has been working with Farm Show president Gary Shultz, land owner Manuel Faria's representative Lynn Dredge and Tulare Chamber official Bob Reynolds to introduce "the vision of" Pasadena developer Lary Mielke of MHI Corporation.
For almost a year Lary with Soapy's help has made some six trips to the area, most recently last week to lay out his ideas for collaboration "at this relatively virgin site" that could mean a major real estate development surrounding the ag based agencies and companies that already cluster on the former alfalfa field.
Former city manager Lynn Dredge has for the past two years has been working to master plan what could be the hottest ticket to Tulare's future that covers 500 acres along highway 99.
"I think we see potential to add to ag based uses already in place" major projects like the Heritage Center, the ag based venues like the UC Extension office and Ag Commissioners office that just opened and AgTac owned by SCE, says Mielke.
Pending this summer is a decision by the National Reigned Cow Horse Association whether to invest in a permanent home of their regular horse show events that would include an 7000 seat enclosed arena. Their biggest event is the 10 day Snaffle-Bit Futurity that attracts as many as 30,000 attendees from around the world. The events planned at the arena would mean the Farm Show area would get regular visitation on weekends at least, instead of a few times a year with the farm show. A three way partnership between the Reigned Cow Horse Association, the Tulare County Fair and the AgriCenter board design being discussed based on a feasibility study that consultant Lynn Dredge says is nearly complete.
Because of the potential for regular visitation MHI has seen that they "could tie in other ag based developments "including a restaurant, a hotel, perhaps a farmers market, an office and retail uses," says Mielke.
Mielke made a presentation to decision makers last week and according to Tompkins the Tulare area representatives were non committal.
Still the potential is there, says Tompkins "for something really big to happen in Tulare." Tompkins says Mielke has suggested she would make her project manager of the development.
Mielke told the Voice that "we don't want to rush the project" but that if "the members of our team - four partners - are going to work at this. "We need protection of some sort" of development agreement.
Mielke says his partner and he have developed "over a million sq. ft. of offices" in Salt Lake City, a number of hotels, shopping centers in the Bay Area and are in the process of working with the city of Redmond, Oregon on a large parcel adjacent their own Ag Expo site.
The NRCHA has a foundation board meeting at the Tulare Heritage Complex where they recently moved their offices July 16 and the matter of the Tulare project is likely to be discussed. The Association recently lost their executive director that has delayed a decision whether to move forward. Also the Tulare Fair recently lost its executive director setting back their plans a bit.
The above stories are the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher.
July 4, 2001
