Farmers Respond To Lower Prices By Planting More
San Joaquin Valley - Central Valley farmers - hard hit by depressed commodity prices and falling incomes - responded in 2002 by increasing their harvested acreage by some 428,000 acres over 2001 numbers.
Using the new 2002 crop reports for Kings, Tulare and Fresno counties released in recent days the pattern of increased acreage in field crops, fruit and nut crops and vegetables is clearly toward increased plantings even as producers face lower prices for staples like milk, cattle and grapes.
Boosting acreage in field crops are larger feed-related crops that go to the huge Central Valley dairy industry - higher acreage of corn, Sudan grass and alfalfa to match the increasing dairy herds. Kings county dairies added 10,000 animals last year and in Tulare County an additional 24,000 cattle were added.
In a valley where cotton was king - cotton acreage fell in all three counties - a trend that may be reversed in 2003 with the federal subsidy in place.
More Permanent Crops
But increasingly farmers have turned to other more permanent crops to take the place of field crops like cotton. Kings County’s fruit and nut acreage increased to near 43,000 acres up from 35,000 acres in 2001. Kings vegetable crop acreage increased by 4500 acres bolstered by new tomato acreage - up 6000 acres in Kings and 6500 acres in Fresno County.
The long term trend in Tulare County orchard and grape acreage is stronger even though this most recent report shows a drop of 1500 harvested acres in this category. In 1990 the county had only 241,863 bearing acres of grapes and orchards. In 2002 it has risen to 310,454 acres.
Even after the devastating freezes of 1990 and 1998 - there were 15,000 more acres of citrus harvested in 2002 compared to 1990 - now nearly 105,000 acres in the county with around 4000 additional non bearing acres - little trees not yet producing.
Grapes are up about 15% as well over the same 1990-2002 period.
“It’s still the best place in the world to grow an orange,” says Gary Kunkel - Tulare’s Ag Commissioner.
Likewise in Kings County where the acreage of permanent planted fruit grew by nearly a third in 2002 in a county where field crops dominate.
Awash In Milk
Dairymen followed a similar pattern - faced with sharply lower prices - 22% lower in Tulare County’s case - they produced 7% more milk in Kings and 6% in Tulare compared to 2001. Unfortunately, the increased volume is blamed for lower prices further exemplifying the trend in ag to overproduce. A new incentive by dairy co-ops to reign in production is seen by some as the way to increase milk prices.
“What does it say when production is up and prices are off 20%?” says Kings dairyman and member of the Board of Supervisors Tony Oliveira. “It’s clear we are in a time of rapid change,” says Oliveira. “I don’t know any other industry that can keep going with the expenses we face in 2003 and get the prices we used to get back in 1960 for our products.”
Oliveira says many dairymen continue to produce more milk betting on the future like they were at the gambling tables of Las Vegas hoping against hope to hang on until their luck changes.
Between all three counties, there were 4.62 million acres harvested compared to 4.19 million acres in 2001 - a trend that contrasts with the popular belief that fewer acres are being farmed in the heartland of the state.
Poster Child
In the hard hit wine grape fields of Tulare County could be the poster child for this trend - in 2002 harvested acreage actually increased by about 100 acres despite per ton prices falling from $248 in 2001 to $167 a ton for the grapes resulting in gross income falling by about one third farmers say their income is well below the cost of production, a familiar refrain these days.
Kern County - the carrot capital - reports later in May.
Taxpayers Purchase Total 30 Million Lbs. of Butter/Cheese
San Joaquin Valley - Valley milk producers including members of both the Land O'Lakes and California Diaries cooperatives will vote on a nationwide proposal May 9th to assess themselves to cut the glut of milk that has built up in both private and government cupboards. This despite sharply lower prices paid to the farmer.
Members of the 60,000 strong National Milk Producers Federation (NMPF) that includes the two valley cooperatives, are looking to boost prices in coming months by over 10%. Plans include funding a voluntary herd buyout program, funding for export assistance as well as a third program to reduce production by at least 10%.
CEO of California Dairies, Gary Korsmeier says his cooperative has recently joined the NMPF and will support the effort to do programs of culling herds "without government's assistance." Nor does the program require any kind of approval to move forward.
"We expect to see some positive results in the next few months" after the program begins, says Korsmeier. "We think all the major co-ops in California to participate." California Dairies supplies about 40% of the state's milk supply.
Higher Volume, Lower Price
California's milk production has gone up about 5% over the past year despite the fact that milk prices have fallen about 20% - down below $10 per cwt no in the past year. The goal is to raise the price at least $1.30 per cwt over the next year even if it costs 18 cents per cwt to do it.
Representatives of individual cooperatives will go to Illinois on May 9th to cast their vote whether to start the program called "cooperatives working together." Funding for the herd buyout would be in contrast to a government herd buyout program some years ago that looked to reduce the milk supply as well.
Some doubt that dairymen in the West where the nation's milk supply has grown the most will put on the brakes. Producers will run the numbers on any cut back of 10% and if they don't work out participation could be limited, say observers.
The goal of NMPF is reduce national milk supplies by 2.7% or 4.6 billion lbs. One of the producer funded programs would provide financial incentive to manufacturers to export more product. Already a falling dollar vs foreign currency is providing a new incentive for dairy producers to compete overseas. The Euro, for example, is up 26% vs the dollar since the beginning of 2002.
A recent industry survey of the NMPF supply management plan shows only 50% supported it in an online survey. Some suggested that producers refrain from using rBST for awhile to decrease production without any assessment. The use of the growth hormone increases milk production.
"If I was the California secretary of agriculture I'd order a freeze on production in California and if you want to grow your milk supply you have to buy out someone else," says Kings dairyman Tony Oliveira, a member of the Kings County Board of Supervisors.
"At $9.60 per cwt every day we are closer to bankruptcy - already dead and we don't know it." He ships his milk to Leprino but doubts the big cheese maker is hurting like the dairyman is. "They maintain their margins when I ship to them at $15 per cwt and I doubt they have reduced their sales price by as much as we have had to. I don't worry too much about them."
Big Subsidies
Some suggest getting rid of a government program - the Milk Income Loss Contract (MILC) - that supplements producers income so they don't feel the economic pinch from lower prices - the economic pinch that helps slow out-of-control production. The new dairy program was passed in the 2002 Farm Bill. Since the MILC has been effect - October 2002 - the government has paid out some $1.3 billion as of early April and is expected to pay out $4 billion by September 2005 by one published USDA estimate. The government's CCC purchase of butter and cheese as of April 29 is over 30 million lbs. compared to none purchased as of the same time last year as commodity prices fell below government support levels.
The bottom line would be that higher milk and commodity prices would be good news for the taxpayer too.
Tulare dairyman Stan Gomes says the MILC program props up small Midwestern dairymen who get a regular check from the program that essentially keeps their smaller 140 cow dairy in business but contribute to the glut of milk. He worries these folks won't want to participate in the CWT supply management effort.
No More Cheese Plants
Gomes is also critical of a recent state CDFA mandate that cheese manufacturers pay more to dairymen for milk headed to the cheese plants. While that may seem like good news for the dairymen, "it's a recipe for no more cheese plants in California," says Gomes. Even in the case of Land O'Lakes of which Gomes is a member, the cooperative comes out worse than before, he says.
Gomes, a former LOL board member, says the dairy industry, like the airlines, restaurants and hotels "have never recovered after 911" but that "this is still the best place to milk cows."
He sees a major new trend in California dairy industry - exports of dairy products moving from just 4% of products now to as much as 20%. In the future he sees Europe dumping less milk product on the world market and the US stepping up its world wide sales.
Tulare County - In 1990 Tulare County dairymen produced 35 million cwt of milk (3.5 billion lbs.). By 2002 it had grown to 89 million cwt. Within the next few years the 1990 volume will have tripled.
In Kern County the supply of milk has grown from 4.4 million cwt in 1990 to 17.5 million cwt, almost quadrupling the supply there.
In Kings County the milk supply has grown as well from 14.4 million cwt in 1990 to 28.2 million in 2002.
That puts the south valley's milk total to near 135 million cwt from around 53 million cwt in 1990 - a 250% increase! Over the same period the California supply of milk has grown as well but only by 75%. Still, dairy areas elsewhere in the US, like the Midwest, have seen their milk supply numbers shrinking over the same time period.
Statewide we produced 34.8 billion lbs. of milk in 2002 and the three county total in the south valley was 13.5 billion lbs. or almost 40% of the state's milk.
"We're looking at five dairies relocating from southern California to Kern County in the next year," says California Dairies CEO Gary Korsmeier. "That will take about one seventh of the co-op's LA area milk supply and relocate it to the south valley," says Korsmeier - about a million lbs. of milk a day. "Those dairies are going to be a lot bigger in Kern County likely growing to 2 or 3 million lbs. of milk," says Korsmeier, probably helping boost Kern's milk supply in the next few years another 20% he suggests.
Increased real estate prices in the Southland is one factor, says Korsmeier, in getting dairymen to look again at relocating their operations into the valley from San Bernardino and Riverside counties.
California Dairies will use the milk supply to feed a number of large plants in the south valley including milk to their own Tipton plant, Kraft Cheese in Tulare, Land O'Lakes and about half the milk sold to Leprino in Lemoore.
Despite low milk prices in the past year, milk supply has gone 5% higher statewide.
Tulare dairyman Stan Gomes sees the growth trends slowing, however. "I have a feeling that Tulare County is about full" of dairies and that some will go to other parts of the valley, however, "we'd better slow down or we will be breathing manure fumes," Gomes only half jokes. The dairy industry has been under environmental pressure to rein in its off-site impacts on air quality. New rules that would limit new dairies or dairy expansion at least 3 miles out of any development could slow the growth and expansion of what has been the number one industry here.
Tulare County - One of Tulare County's largest ag producers - Dairyman's - Land O'Lakes - reported first quarter financial results in late April with a loss of $400,000 for the quarter and lower sales. The diversified ag cooperative recorded sales of $1.45 billion compared to sales of $1.52 billion during the first quarter of 2002.
Sales were down for the quarter in part due to the fact that the traditional Easter holiday dairy food volume moved into the second quarter but also slumping commodity prices, a company release said. The company also cited slower consumer demand and costs related to the startup and completion of the big CPI Inc. cheese and whey plant in Tulare.
Loss in dairy foods were higher this quarter with pre-tax loss of $19.6 million for the quarter up from a $3.8 million loss in the first quarter of 2002. Still, cheese volumes were up 2.3% even as retail cheese sales were down, the company news release says.
Way Down
Hard hit were cheese prices down 11%, butter down 16%, non fat dry milk down 11% and whey - way down by 30%.
The latest Tulare County crop report for 2002 shows the dive in milk prices paid to dairymen last year dropping by just under $3 per hundred weight or around a 22% decline.
LOL is closing a number of Midwest plants and has shut down their Gustine California cheese plant where 143 people worked. The plant that made mozzarella and cream cheese will allow LOL to shift production to their newer Tulare facilities. Unfortunately both mozzarella and whey face a weak market currently, officials say.
Still, the overall movement is a decline in production in the Midwest including LOL's home base of Minnesota in favor of milk-rich Tulare.
This is the same trend the industry has witnessed in the past decade - growth in the West Coast dairy industry at the expense of the Midwest. This week an announcement was made that Formost Dairies would close four Midwest plants in coming months.
The trend is pushed in part by an expectation that 40% of the existing dairy farmers in the Midwest states won't be there by 2007, according to LOL president Jack Ghery quoted during the co-op's annual meeting last February.
Despite higher costs Land O'Lakes is moving forward on its planned expansion of the Tulare Cheese and Protein International (CPI Inc.)plant on Paige in the next year, says the company. The plant started up last May. The company has set its sights on doubling production in Tulare. The second phase of the plant will increase cheese production to an estimated 240 million lbs. of cheese and 150 million lbs. of whey by 2004.
With the company investing more than $150 million to build the new CPI plant, designed to run six million gallons of milk a day, the company has an incentive to spread that capital investment over a larger volume of product, industry sources say. The new Leprino plant in Lemoore is undergoing the same production expansion designed also to increase volume to six million gallons of milk production also making mozzarella. But lower prices for the product remain a constraint right now.
LOL bought out its partner on the new Tulare venture - Mitsui - on all but a five percent stake in January.
Other Losses
If LOL had trouble making money on milk, the cooperative was also hit by poor swine prices in the market with prices down 8.5% from 2002 and a loss of over $4 million.
There was good news on feed sales reporting $15.1 million and a $10.6 million earning future on seeds earnings. LOL is the nation's number one marketer of dairy, beef and swine feed.
Land O'Lakes is not the only dairy company facing tough going right now. Kraft Foods - the world's largest cheese brand with two plants in Tulare County - has seen its stock dive 50% in the past year.
California Dairies
Another cooperative - California Dairies - formed from a merger of three co-ops in 1999 - produces some 40% of the state's milk and owns the Challenge brand. That company is reporting $1.7 billion in sales in 2002 - down from $2 billion in 2001. Milk volume was up 4% "We were profitable," says CEO Gary Korsmeier.
Still making money out of milk is Dallas-based Dean Foods - today the leading producer of fluid milk and dairy products. The company sells under such names as Borden, Pet and Meadow Gold. The publically traded company has seen its stock rise 40% in the past year on nearly $9 billion in revenue.
Tulare County - Tulare County retreated to number two status in ag production in 2002 hammered by nearly a $3 decline than average price paid for milk. "Milk is such an important commodity in Tulare County that percentage change in any direction sends our crop report considerably higher or lower," says Gary Kunkel, the county agricultural commissioner. In 2001 increased production and price of nearly $14 per cwt helped push Tulare County to the top of the heap or close rival Fresno County. Milk is about a third of the value of Tulare County's crop report with 2001 numbers coming in at $1.15 billion and 2002 falling to $959 million despite a 6% increase in milk production.
Tulare County's overall gross production brought in $3.2 billion compared to neighbor Fresno County that did better in 2002 at $3.4 billion.
Grape Average Up
"The big surprise was grapes," says Kunkel, considering all the bad news surrounding the fruit particularly in raisins and wine grapes where there is a widely recognized surplus.
The value of all grapes in the county was just shy of $400 million in 2002 up nearly $40 million from 2001. Acreage of grapes in the county actually increased by over 4500 acres in 2002 up to 73,100. "We've seen all the proof of people pulling their grape vineyards or not harvesting because of low prices - particularly for raisins," says Kunkel. Wine grapes did show a $1 per acre decline but raisin grapes per acre production actually increased according to the county report. In Kings County table grape acreage was way up and production increased as well. The value of grapes was up almost $800,000. In Fresno County grapes went from number two crop back to number one in 2002 confirming the trend and the value went up over $57 million.
Part of the secret in the grapes in 2002 was that production was higher in 2002 notes Kunkel and "things may have been so bad in 2001 that 2002 looks a lot better." For example, in Fresno raisin prices were off 20% in 2002 but production was up one-third and value was higher. Likewise for wine varieties.
Kunkel says that Tulare's peaches had a great year in 2002 with increases in price per unit and production and export demand high. The value of freestone peaches nearly doubled in 2002 to over $83 million.
The value of cattle and calves in the county fell in 2002 as producers increased the number of herds to compensate for the lower price that fell in 2002 by 15%.
Citrus Prices Down
In the county's number two crop - citrus - the price per ton was up but the production was down. Acreage amounts recorded in 2002 fell as more older groves are pushed out. But non bearing acreage - meaning young tree plantings not yet harvested - has grown in the past two years to nearly 4000 acres (see chart). "Growers are switching to more tangerines and easy peelers," says Kunkel. "We're still the best place in the world to grow an orange."
Kunkel says a big drop in vegetable acreage in the county is "just part of the cycle" as farmers look to grow an annual crop in one part of the valley or another. Vegetable production in the westside has increased as Tulare County's eastside production has fallen.
Tulare County cotton acreage is about half of what it used to be in the 1980s, says Kunkel, and he figures the acreage will continue to fall.
Kings County - Kings County reached a huge milestone in 2002 topping the $1 billion mark for gross production for the first time. The value reported was $1,023,305 - an increase of 7.5% over 2001 gross crop value.
If prices for many commodities including milk were heading down, increases in acreage planted in the county and the continued switch to permanent plantings yielding higher crop values appeared to benefit the county farmers.
Low milk prices - down an average of 19% from last year helped keep the value of the crop to $303 million even though there was a seven percent increase in milk production.
Milk now accounts for a third of the crop value in Kings - about the same as Tulare County.
Total acres planted in the county increased in 2002 up from 647 thousand acres in 2001 to 755 thousand in 2002 - almost a 17% increase in planted acreage.
Values for many crops were up despite the news of gloom and doom in the industry overall. Farmers saw higher per ton returns in apples, tree fruit and walnuts, pistachio production doubled in 2002 jumping from $18 million to $32 million in value. Pomegranates were high as well.
The value of all grapes held steady. The value of all fruit and nut crops in the county jumped from $89.5 million in 2001 to $145.6 million in 2002. Vegetable crop acreage was up in 2002 as well and the value doubled to $130 million in 2002 bolstered by better weather and a big jump in tomato acreage to near 17,000 acres.
In field crops the big jump was an increase in alfalfa plantings in 2002 as well as increased production boosting returns and an increase of 9000 acres planted to Alcala cotton. Pima cotton also increased acreage to over 66,000 acres compared to 84,513 acres of alcala.
Farmers are quick to point out that the gross returns don't tell the story of red ink on county farms.
Fresno County - Spurred on by increased acres put into production and the diversity of its crop base, Fresno County regained its number one status from Tulare County in 2002.
Tulare was hurt by a 22% dive in milk prices in 2002 and while Fresno has a large dairy industry, the sheer scale of its agricultural holdings dwarf Tulare County.
Fresno Acreage Much Larger
Fresno boosted its total acres from about 2 million acres planted in 2001 to 2.3 million in 2002. Tulare County acreage in 2002 was 1.57 million acres, up slightly from 2001.
Fresno County's production value increased over 6% even though the county ag economy remains "depressed," says County Ag Commissioner Jerry Preito.
Total values increased to 3.41 billion in 2002 compared to $3.2 million in Tulare County.
Highlights of the 2002 report show that field crop values were down, vegetable crops increased $127 million led by tomatoes. Head lettuce totals for the county show declines of over $12 million in 2002 while leaf lettuce acreage and per acre production increased pushing the value to over $50 million.
Fresh onions appeared to be money makers as the price per ton increased markedly. Fruit and nut crops increased by $166 million led by the booming almond crop. Cherries were up, pistachios were up 42% and despite all the news about low grape prices, the value of the grape crop was up $57 million in 2002. The value of the citrus crop declined slightly.
Fresno organic acreage increased to nearly 900 acres.
Poultry production in Fresno showed lower values in 2002 with turkeys declining by $6 million and chickens down a whopping $64 million. Milk also declined in value. Nursery crops were up slightly and seed crops increased by $18 million.
Visalia - May 15 is the deadline for both Visalia Unified and COS to work out a plan to save costs at their districts or finalize pink slips for what could be hundreds of teachers. This week (May 7-10) is crunch time for negotiators who are meeting just about daily with their counterparts to see if there is any way to share the pain and keep the jobs.
“This is a critical week for COS,” says board member Bob Line.
Talks between VUSD and VUTA have been going on since April 11th after the district sent out notices to 164 teachers that their jobs may be in jeopardy.
The focus for both is cost savings on the health care package that both administrations have said could result in only a few layoffs instead of hundreds.
In the case of Visalia Unified - if no agreement is reached it would mean the end of the district’s class-size reduction in the early grades and loss of about 147 elementary teacher jobs. Kids would be thrown back into a class size of 30 instead of 20 and everyone agrees - it would be the children’s learning that suffers.
In the case of College of the Sequoias - no agreement could mean the loss of whole departments or major reductions in such programs as engineering, journalism and nursing among others. Altogether 85 full time equivalent positions might have to be eliminated if there is no resolution.
However, since March when this was announced - 13 COS teachers said they would take early retirement saving about $1.2 million. There is indication that more will also sign up.
The budget crisis is not unique to Visalia but statewide. There has been a reported 30,000 pink slips delivered statewide. Only bargaining could change that. Employees in other school districts like Fresno and Elk Grove have recently agreed to increase their contribution to their own health care plans with measures like higher co-pays for doctors visits or boosting each employees monthly contribution to the plan to have them and their family covered. Teachers at COS or VUSD pay nothing into the plan to receive coverage for all members of their family.
At VUSD health care plan costs are going up over 20% this coming year, costing an extra $3 million. This is coming at the same time the district is taking a $3 million reduction in funding from the state.
In the case of both COS and VUSD administrators and board members have taken the initial steps to contribute toward the cost savings. COS administrators will take a 2% pay cut and for the first time pay $100 monthly into the health plan. In addition, COS is expected to cut its management force. “We felt it was important for management to the lead,” says Line. The savings amount to $375,000 a year. At Visalia Unified board members and administrators offered to pay in $30 a month to keep their health plan.
Visalia Unified Teachers Association (VUTA) president Fred Speckman says “there has been definite movement in recent days. “Not as fast as I would like though.”
Speckman has been pushing for a compromise.
“It’s not if we agree to some cost containment, but how much,” says Speckman. “We’re looking at deductible and co-pays.”
“We’re sure we can save about 100 jobs and save more from additional retirees.” Speckman says he believes the district will in any case - end class-size reduction in the 9th grade losing some 7 teachers and end the schools 8th period meaning another 5 positions would be let go. Altogether there are 147 positions up in the air.
Speckman says he can’t see a situation in which negotiators in the VUSD talks can’t come to even a tentative agreement that would mean teachers don’t even get the chance to vote up or down on the district’s offer - but that is a possibility. Speckman may be leading one wing of VUTA inclined to come to an agreement while more militant members of the union sees it differently.
Officials worry that by May 15 the state’s budget revise numbers are likely to be worse than earlier predicted setting off a new crisis.
At deadline COS trustees put out the notice that on Monday, May 12th the board would meet to finalize pink slips for 23 COS employees.
Tulare County - Tulare County Sheriff Bill Wittman likes to ride his horse in parades. But these days you will just as likely to see Wittman - a nine year department veteran - riding shotgun in a patrol car heading toward a crime scene in coming months as the department faces some $5.4 million in cuts come July.
With pending cuts in personnel - Wittman himself may have to lead a modern version of that always-ready volunteer posse you remember out of those old Western movies in order to fight crime. Really.
“It’s hard to talk about cuts when you know the only place to cut will be personnel,” says Wittman. “We will want to tell the community that we will be depending more on the volunteer force to pick up the slack.”
Captain Larry McLaughlin says added expenses including salary increases, the sheriff budget for 2003/04 is $44.7 million. “The CAO office told us that all we can expect is $39.3 million.” That’s $3 million less than the sheriff’s 2002 budget and $5.4 million less than the 03 budget “just to keep everybody we have now,” says the sheriff.
The county sheriff has some 457 sworn personnel and 192 non-sworn. While Wittman won’t reveal just what layoffs are expected, numbers discussed at staff meetings are substantial. Sources says the cuts could include:
• Closing some substations
• Ending gang programs
• Reassigning the STEP program
• Eliminating one captain position
• Eliminating 8 or 14 lieutenant positions
• Eliminating 14 or 74 sergeants
• Reducing the number of deputies assigned to rural areas like Three Rivers and other outlying communities like Camp Nelson.
This week Wittman responded to complaints by Ivanhoe citizens over increasing gang activity in town. “We will not let Ivanhoe be run over with gangs,” says Wittman, but “we have no deputy to assign to the area.” Still Wittman is working to organize more citizen groups and neighborhood watch efforts and is expected to bring in an officer to help coordinate that. There are over 100 citizens in the highly regarded Volunteers In Patrol program (VIP) that helps do tasks that can keep more deputies on the street.
Wittman says top brass at the sheriff’s department are losing their desk jobs to head out on patrol because of the shortage of personnel. Currently there is no SWAT team to go out on emergencies, says Wittman and targeted task officers like gang units are being thrown back in the patrol pool because there isn’t enough officers on the street.
Supporters of the sheriff’s department say the department’s low wage scale compared to surrounding communities continue to prompt officers to leave the department. “Sometimes the ones we hire aren’t the best qualified and they give all of us in law enforcement a black eye,” says one officer. A few have gotten in trouble with the law themselves.
“Turnover is terrible at the department,” says one insider with some 25 officers leaving the department just during the first three months of this year in part over the health benefits situation.
Now only is the county cutting back but the courts are likely to cut back on the amount they pay to the sheriff for court security - the word is $600,000 less because the state funded courts are hurting as well.
If the numbers stack up as they appear and the cuts come from personnel we could see 40 to 60 public servants even as our population and crime continue to blossom.
While there may be some support to put a sales tax in the county to help the department, it appears the majority of the Board of Supervisors have no appetite for the idea.
Visalia - Several key Visalia road projects are moving forward this spring in all quadrants of town - projects that should ease bottlenecks in Visalia’s transportation system. City engineer David Jacobs says they include:
Downtown Visalia:
1. CalTrans will be improving the west bound off ramp into Downtown Visalia from Freeway 198 adding a second lane and a signal on Mineral King just as traffic enters at the top of the ramp. Work on the project is expected to begin within the next few months.
2. CalTrans will be completely repaving Highway 63 from Mineral King to Houston Ave.
3. CalTrans is expected to approve the City of Visalia’s plan to build a new bridge over 198 at Santa Fe in the next few weeks allowing the city go into design work on the bridge. They plan a little dressier bridge than normally seen over 198. The bridge will allow cross town traffic on Santa Fe from Caldwell to Riggin when road work is complete it will provide a major north/south thoroughfare for the city and an alternative to Mooney Blvd.
4. Widening Ben Maddox bridge by an extra two lanes is a project the city is proposing to be a joint venture between the city and CalTrans and the work to be done at the same time as construction of the Santa Fe bridge happens.
Caldwell Ave:
Caldwell east of Mooney to Santa Fe will be improved to four lanes - two both ways with signalizing the intersection at Santa Fe. Work will be carried out this summer.
McAuliff Extension:
To ease traffic near the construction site of the new sports stadium at Golden West the city hopes to open McAuliff south of Houston at least to Mill Creek Parkway to allow some relief for the traffic at Lovers Lane and Houston. Mc Auliff north of Houston is being widened. All work is scheduled to be completed in the summer. Extension of McAuliff south of Mill Creek is in the works with a plan for a bridge over the creek in the works to reach Mineral King.
Akers Widening:
Planned south of the new high school with widening expected to happen this fall. The city is now going through condemnation on a number of parcels to make this happen.
Court and Locust:
A long awaited plan to help move traffic between Locust and Court on Tulare Ave. will get a boost in coming months as the city puts in another lane on Tulare to help move traffic through the intersection making it easier to maneuver in this part of town.
Woodland Ave. Extension:
A huge bottleneck on the county campus since Woodland has been sealed off to the south of Mineral King. The county would like the current private street reverted to public status relieving traffic from Mooney over to County Center. County would set up a new traffic signal at Woodland and Burrel (at county expense) with a new signal at Main and Woodland being picked up by the city. City council this week approved a plan to use $25,000 from gas tax monies to plan for the reopening of this street. Folks trying to get in and out of the county complex are going to be cheering.
Many of us won’t be cheering about the planned widening of Mooney Blvd. To 6 lanes - now put off due to the state budget crisis until 2006, although some intersections will be widened prior to that.
Visalia - Teter Consultants - an architectural and engineering firm based in Visalia - will join The Allen Group in a new downtown Visalia office building being constructed at the corner of Acequia and Bridge. The single story, 8000 sq. ft. building features a solid red brick exterior right across the street from the Signature theater complex. “We’ll take about 2/3 of the space,” says Glenn Teter, principal with the firm, relocating about 20 people from their current office at Demaree Square.
Teter says principals with the company will take an equity position in the new office building with The Allen Group.
“Our current building is too small,” says Teter, saying the company will lease out their current site once they move into the new location likely by October.
The site was purchased by The Allen Group from the City of Visalia. It is located right next to the city parking garage and across the street from City Hall East. “It will be nice to be able to walk everywhere,” says Teter, “we’re looking forward to being Downtown.”
Teter Consultants also has a Fresno office where some ten employees work.
Among other projects Teter is designing the new Golden West Stadium.
Complaints to their Congressman may pay off for the City of Visalia in getting the town's only airline (Sky West/United Express) to fly direct to LA instead of going to Fresno first. A letter from Devin Nunes to the US Secretary of Transportation Norman Mineta resulted in a letter back from Mineta April 24 suggesting the detour flights were temporary. Sometime this month United Express planes will hopefully resume direct flights to LA rather than making a pit stop in Fresno.
After months of languishing Governor Gray Davis is expected to make an appointment for the vacant seat on the Tulare County Board of Supervisors. The governor's press office confirms an appointment is near but will give no details. In recent weeks Visalia consultant Lali Moheno has been interviewed by the Governor's office in Sacramento. Davis is likely to appoint a Democrat for the position vacated by Bill Maze when he won the job to represent the area in the State Assembly. Moheno has been supported by a number of former Visalia mayors for the job although she isn't the only candidate vying for the post.
The Environmental Impact Report for the new Highway 190 casino project should be ready for public review in the next few months, says Tule Indian tribal counsel, attorney Sam Cohen. "We're looking to down size the project and build it in phases," says Cohen limiting the amenities at the hotel and decreasing the parking lot size among other things. "It will help both financially and environmentally," says Cohen. The project has received mixed community response at a number of meetings held up and down the Tule River. Cohen says that once the document is submitted to both state and federal agencies the process of seeking Governor Davis' approval on the project will go forward, he says.
Biomass power plants who burn wood and ag waste to make power would have to burn at least 55% ag material if a bill being carried by Assemblyman Dean Florez becomes law. Some plants are burning only 35% ag materials from the surrounding area while truck loads of construction wood waste from Los Angeles are burned for the remainder. The higher level is being promoted to help provide a means to get rid of orchard waste that is being burned in the open air currently. Florez would also phase out open field burning as well. Down in Bakersfield a company has announced it is buying an old PG&E power plant to use as a biomass facility starting in 2004.
It's hard to keep up with Tulare County's fame in recent weeks - number 4 worst in air quality on a national survey - number one in the rate of diabetes among Hispanics in the state and one of the top counties in the state for the lowest percentage of high school grads in 2000. Boy, we really know how to make the headlines.
A tax sharing agreement on 310 acres of county "islands" within the city of Visalia is close to being finalized and could go to both the city council and board of supervisors in the next few months, says planner Phyllis Coring. The issue will be discussed at this month's LAFCO hearing. As a practical matter all the islands get service from the city of Visalia but don't pay taxes to the city currently.
Tulare District Hospital has finalized plans for its version of the Lifestyle Center in Tulare dubbed Evolutions. The $6.8 million fitness complex was about $500,000 over budget, says CEO Bob Montion, but is moving forward now to break ground early next month. It will be about a 10 month construction schedule. The new gym also has some 12,000 sq. ft. of retail space built into it. Heading up the project is Jayne Presnell who helped found the Lifestyle Center in Visalia. The fitness center is located on Prosperity across from the new Foods Co. store.
On Tuesday, May 15, the California Fuel Cell Partnership's "Rally Thru The Valley," a three day, 400 mile caravan of six hydrogen-fueled, fuel cell electric vehicles, will be making its way to Visalia. You can see the fuel cell cars on May 15 from 9:30 a.m. to 11 a.m. at the International Agriculture Center in Tulare.
The expansion of Terminus Dam is on course to be complete by December of this year. But local water officials are scrambling to make up a $1 to 1.8 million shortfall of funds to complete the project because of the state budget crisis. Bruce George, Kaweah Delta Water Conservation District general manager says they aren't sure how the bill will be paid. Success Lake expansion is in the same boat but not as far along.
The City of Tulare's sewer crisis has come to the point that if the industrial park snagged another large food processor - Tulare's bread and butter job base - that the Regional Water Quality Control Board could turn down the city's effort for a new hookup, says Tulare City engineer Lew Nelson. "We believe we can interpret the cease and desist order to mean we can grow existing industry incrementally," says Nelson. All over the valley cities are struggling with state rules to clean up their effluent to the level that it meets drinking water standards - at great expense. A coalition of north valley cities are working to change the rule and Tulare basin cities are lobbying the board to amend the rule to allow for credits. The credits for essentially good ions found in food waste water that benefit the soil would offset the salt concentrations that come with the waste water. Visalia has less of a problem since it blends its waste water with a high volume of non food waste water discharge while Tulare's effluent is almost all food borne waste water spread out on ag land.
The old Lumberjack building on south Mooney will be sold as of May 15 to Randy George of George Brothers Roofing. The family owns The Works property next door. The property was sold at auction after the parent company of Lumberjack declared bankruptcy. It was offered for $1.45 million, but sold for lots less than that. George says it will be retail or office space in the future, it won't be a lumberyard since the city now will not allow that use.
‘Awesome April' Fills Rain Bucket
Frequent cold storms - some big and some small - pummeled the state in April dousing fears of a drought this winter in the Central Valley. "We had more rain in April than January through March combined," says Dan Vink general manager of the Lower Tule Irrigation Water District. "It was no March Miracle but it was an Awesome April." Instead of a few large storms, it rained some 18 days out of the month in April - an unusual pattern for these parts. Indeed, a cold storm came knocking in early May dropping an inch of new precipitation at many Sierra rain stations and two inches on the upper Tule.
Statewide the May 1 survey of snow courses came up with a 114% statewide average even though the Kaweah and Tule watersheds are lower.
As of May 3 Giant Forest had recorded nearly 44 inches of precipitation during the water year. As of April 1 33.5 inches had accumulated, according to the Department of Water Resources, meaning that about 25% of the station's yearly rainfall came since.
Kaweah Delta Water Conservation District now estimates that in the past month the snow pack has gone from just 64% of normal to 99% of normal.
On the Tule, Quaking Aspen had recorded around 42 inches of precipitation compared to 34 inches as of April 1.
The increased rainfall - higher in northern California where May 1 totals are now better than 200% at some stations - means that the federal CVP system will be able to deliver more water this year, at least 70% of average the feds announced April 23.
On the Friant system the government is promising 100% allocation of class 1 water and even released 150,000 acre feet of class 2 water recently allowing the water districts "to fill every nook and cranny" says Friant district board member Dennis Keller. "That's happening on the Kaweah as well," says Keller, with releases of water in storage to fill water banks within the Kaweah delta this month.
To the degree farmers can take the water being delivered right now from the overflowing storms - it's a big cost savings since they don't have to pump, says Dan Vink.
Not that colder rainy weather has been good for all farmers - like cotton farmers who may be facing replanting costs and reduced yields given a late start. For this time of the year fewer acres of cotton have been planted than usual due to the cool weather. Fruit growers want warmer, drier weather for the upcoming stone fruit harvest as well are ready for it to warm up.
o rain is predicted through the May 12 weekend, although northern California may still get more moisture. The state's plumbing system will bring some of that down to the valley farmers where demand is greatest in what has turned out to be a moderate El Nino pattern after all.
Water experts say one problem the state has in a wet year like this is that northern California where it typically rains more heavily, doesn't have enough storage capacity so the extra water heads out to sea down the Sacramento River.
Friant Expects Help From Justice Dept. In Renewed River Suit
If whisky is for drinkin' and water is for fightin' - then what's the government for? It's for getting more firepower on your side of the fight. That much is clear after the NRDC and Friant Water Users faced off in court this week ending four years of negotiations over the attempt to revive the fortunes of the San Joaquin River.
The Natural Resources Defense Council (NRDC) told US District Judge Lawrence Karlton that it had ended any more talk between the two sides despite the fact the other side told the judge that the intervention of a mediator in recent months had brought the two sides closer together.
"The judge was not pleased we were back in front of him," says Kole Upton, chairman of the board of Friant, "and we told him the mediator had made some proposals we were willing to discuss. But the NRDC didn't just say ‘no' - they said ‘hell no'".
NRDC has a different take on what happened. They say Friant rejected the compromise settlement offered by the federal mediator that would restore the salmon fishery to the state's second longest river that would save more court battles.
Clearly, NRDC thinks the arguments and Judge Karlton are on their side. According to Upton the judge noted that in the past the NRDC arguments had won the day. "He came out of the Sierra Club and was a Jimmy Carter appointee," suggests Upton.
"We are disappointed and puzzled that Friant rejected this historic opportunity to restore the San Joaquin River," said Jared Huffman, NRDC staff attorney and San Joaquin River project manager. "After swallowing the entire river for more than 50 years, the Friant water districts just can't swallow the idea of changing business as usual."
The Friant group of irrigation districts were in front of Karlton in 1997 when he invalidated the district's 40-year contracts because state law requires dams have to release water to protect fish downstream and habitat they live in. Friant appealed to US Supreme Court but was turned down.
"We couldn't get much help out of the Clinton administration but it's a new administration and new high court in Washington now," says Upton. Republicans now have a stronger position in Congress as well. "We think that the Justice Dept. will come in our side now," says Upton as this case moves forward in court. Judge Karlton stayed the case until August of this year.
Meanwhile, Upton says Friant has joined the San Joaquin River Task Force - a group of public entities and stakeholders looking to improve conditions on the river. "I'm a solution oriented person," says Upton and the water districts want to take "initial steps" in bringing more water back to the river, he says.
"One argument we made to NRDC is that it would cost $1 billion to bring back the salmon population to the river but that for far less you could restore a warm river fishery and use the savings to help increase the salmon population on the Merced and Toulumne that already have salmon" and get more fish for the expenditure, says Upton
Back to Court
"The comprehensive studies conducted by Friant and the environmental coalition over the past four years demonstrate that a living river can be restored while preserving a strong and healthy agricultural economy," says Gary Bobker, program director of the Bay Institute and one of the lead negotiators for the NRDC-led coalition. "In fact, there are dozens of water management measures that can be employed to benefit both farmers and the environment. But by rejecting the settlement proposal, Friant is trading a world of cooperation - where partnerships with conservationists, government agencies and other water users, coupled with major funding for environmental and water management initiatives from Proposition 50 and other sources, would help support a smooth transition to restoring the river - for a world of non-cooperation where the river will have to wait for a solution from the court."
Despite the setback in negotiations over the issue, Upton says he is still optimistic.
Judge Miffed
Judge Karlton apparently referred to a recent Westland district - Mercy Springs - suit against NRDC in a Fresno court whether local water districts feel the political vibes are more favorable. But Upton says Sacramento Judge Karlton was miffed by the suit and wants the suit reassigned to his court.
It all comes down to having some part of the government on your side.
Observers note that the Bush administration hasn't become actively involved in California's water picture to date. But there are indications now, says Congressman Cal Dooley, that is changing set in motion by the Colorado River issue and now the San Joaquin River fist fight.
If some sort of a restoration plan is agreed upon Friant will be leaning on their own political base to provide funding or low interest monies to build the infrastructure - the plumbing necessary - to deliver the water that will help keep water in a river that come summertime is dry through about a 50 mile stretch below the dam. In recent years the two sided - environmentalist and farmers have experimented with flows that have come down the river in an attempt to restore life to this important river.
After all, what do we need - the fish or the farmers? Answer, both.
It's a case that has dragged on for going on eight years involving unregulated nuclear waste material in our own backyard.
A Buttonwillow hazardous waste site accepted radioactive waste shipped in from New York - building waste material that dates from nuclear research done during the World War 2 Manhattan Project. The wastes are not subject to oversite by the Nuclear Regulatory Commission because they were generated before the agency had any jurisdiction.
Based on a conditional use permit from Kern County the waste site run by now bankrupt Safety-Kleen accepted the materials in the 1990s along with waste from Santa Susan Nuclear facility in southern California.
The Buttonwillow facility was set up to accept petroleum waste material that contains Natural Occurring Radioactive Materials (NORM) from oil drilling.
Safety-Kleen's predecessor corporation began the process to expand the facility in 1991 and Kern County approved a conditional use permit (CUP) in 1994. But in 1995 the Center For Race, Poverty and the Environment challenged the permit to expand.
June 4 Hearing
Bringing you up to date, the state Tanner Board - set up in 1986 to review local hazardous waste land use decisions - will meet to hear an appeal of the 1994 decision on June 4 at 9 a.m. in the County Council Hearing Room located at 1115 Truxtun Ave., 4th Floor in Bakersfield.
The Tanner Board authorized by legislation carried by Assembly member Sally Tanner has a high profile membership including the chair of the Air Resource Board, chair of the State Water Resources Control Board, Director of the Department of Toxic Substances Control along with local members that include Kings County Board of Supervisors Tony Oliveira.
A year ago the Tanner Board accepted this appeal on only one of the many challenges against the permit in part because the state Department of Health Services was not consulted over the adequacy of the permit conditions.
The Tanner Board approved the appeal based on the likelihood a full hearing would find "compelling reasons to modify the permit" based on a 5 to 2 vote. The majority found that the company's EIR for the use permit did not address the fact that this non NORM waste from outside the area wasn't discussed, nor the risk assessed.
Safety-Kleen now says they will no longer accept non-NORM waste although the facility is in the process of being sold as part of a bankruptcy proceeding and the permit doesn't preclude more materials from being shipped in.
Significant Level
The Kern permit incorporates a limit of 2000 pci per gram radioactivity. But the Department of Health Services has commented on the case suggesting that level "is a relatively significant level of radioactivity, which poses an obvious and definite health and safety risk." The Tanner Board comments in their 2002 decision to allow the appeal to go forward noted that "the CUP allows unlimited volumes of other radioactive waste, at higher radioactivity levels" and that since such wastes are not expected at such a site - there are no assurances that monitoring of any leakage would be done.
Chair of the Kern County Board of Supervisors Steve Perez - a member of the Tanner Board - agreed that a new permit was needed despite the fact that the Buttonwillow site was a "state-of-the-art facility" and that it was "perfectly legal" for the company to accept the non NORM waste.
Perez said according to a statement released by him, that since the appeal start, a number of state agencies had tested for radiation outside the background level and found none. Still, he says he saw need to establish safe levels of the materials but that "no agency directly regulates the non-Nuclear Regulatory Commission waste stream."
Safety-Kleen filed for Chapter 11 protection in June 2000 after charges of improper accounting came out and the company says it expects to reorganize later this year.
Tulare County has let a $3.3 million contract to develop a 15 acre cell for a new landfill just east of the current county dump on Rd. 80. The contract sets in motion the expected closure of the existing 127 acre landfill and construction of a new access road to the dump off of Ave. 328.
"The old landfill has reached capacity," says Larry Awberry, Assistant RMA director for engineering. Awberry says the closure of the current site is prompted in part by contamination problems at the site from materials that have leaked over the years below the site - volatile organic compounds that can pose danger to the water supplies.
"We figure we are better off getting rid of the old site and sealing it off on top to keep more water from spreading the problem any further." The dump will carry a four foot layer on top including clay and likely a layer of grass will grow on top serving as a cap to the site. Awberry says the county has to maintain the seal on the old dump site for the next 30 years.
The new site - 150 acres - will be developed in double lined cells and expected to be serve the area for the next 40 years, he says. The county pumps the contaminated water out of the current site and treating it since last October, he says.
Awberry says actual closure of the current site, that dates from 1952, is at least a year off or longer depending on the new site opening. He says the county wants a new access point in part because Rd. 80 will be widened into an expressway to Dinuba.
Awberry says as part of the state push to recycle more goods going to the landfill, Tulare County has done well since the mid 90s when we are landfilling around 330,000 tons of solid waste in county landfills that number has fallen to less than 300,000 tons annually despite a big jump in county population.
The Visalia site is one of three county landfills that remains open. Contamination programs have resulted in several closures over the years.
The above stories are the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher.
May 7, 2003
