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Bill Gates To Invest $84 Million In Pacific Ethanol

Visalia - Fast-growing Pacific Ethanol will be able to move forward on construction of five new ethanol production facilities now that billionaire Bill Gates’ Cascade Investment LLC. has decided to invest $84 million in the Fresno-based company. The deal was announced this week by Pacific Ethanol.

Locally, the news means the company will likely move forward on the proposed Visalia facility. The company has an option on 89 acres across Highway 99 from the airport. Pacific Ethanol principal, Neil Koehler, says the company plans to file a permit application with the county that will begin an EIR process on the Visalia plant site in the next few weeks. The application is being handled by Quad Knopf.

Pacific Ethanol has only its Madera plant under construction at this time and needs to build the five plants called for in their business plan to accomplish the market penetration they want.

Ethanol as a fuel additive has been gaining wide acceptance in the past few years as a cleaner burning fuel to add to gasoline. It is blended with gasoline in California at 5.7% ethanol. But a new State of California policy is calling for a 10% blend of the renewable fuel. Currently, the fuel is made with corn but plans are underway to make the fuel from plant waste material– cellulose-based ethanol.

The state’s fledgling ethanol industry has seen its birth in the central valley, particularly where there is a large population of dairy cows. That’s because a byproduct of the conversion of corn to ethanol produces a high value feed that helps make ethanol production more valuable if the byproduct can be diverted within a short distance. Ethanol is said to boost rural economies in part because it means local farmers have a chance to grow the feed-stock of the plant, boosting the local farm economy and replacing foreign oil as a transportation fuel.

Gates invests his Microsoft profit widely including philanthropy through his foundation to libraries and schools. But Neil’s brother Tom Koehler apparently convinced the dot com king to diversify his portfolio into renewable fuels - a huge boost for Pacific Ethanol which is poised to be the major player in the renewable fuel business in the Western US.

Besides 4 plants expected to move forward in California, the company plans at least one ethanol making facility in the state of Washington.

Together, the combined capacity of the five plants is expected to be 200 million gallons. Central California alone uses about 1 billion gallons a year - a number that could rise 40% as more ethanol is blended with gasoline under an expected new state standard of 10% blend and promotion of the cleaner burning E-85 fuel.

Pacific Ethanol had announced a planned investment in the purchase of the Goshen ethanol plant operated by Phoenix Biosystems earlier this year but then canceled the deal when the Goshen operator could not meet production deadlines. The Goshen plant, unlike all new plants planned by Pacific Ethanol, was pieced together with used equipment allowing it to get on line faster but at a reduced production yield, say sources. Goshen was the first major ethanol plant in production in the state and has been operating now for a few weeks shipping fuel by tanker to a marketing arm of Pacific Ethanol. The Phoenix people had to fight red tape to get their operating permit and faced neighborhood concerns about water and traffic issues regarding the plant.

The Goshen plant is hooked up to Cal Water in order to operate and is fully permitted.

In other ethanol news, an $85 million ethanol plant to be owned by Calgren should break ground in December, says company principal Matt Schmidt.

On the national front, the effort to boost the use of ethanol would get a shot in the arm if congress adopted a bill that calls for all cars to be made in 10 years to be flex fueled - meaning they can use high blends of ethanol like E-85 (85% ethanol/15% gasoline) or gasoline. Koehler says the cost to manufacturers would be in the range of $50 per car.

In California the big news this week is that the state will support increasing the percentage of ethanol in the fuel blend to 10% - up from 5.7%. The state’s Air Resource Board has been reluctant to increase the amount but the new California Energy Commission’s Integrated Energy Report, likely to be adopted in the next few days, calls for a 10% blend. That would mean a huge increase in demand for the fuel here, in part because the cleaner-burning fuel helps decrease the amount of greenhouse gas emission for California cars.

With the new funds coming into Pacific Ethanol, the company would be ready to offer a 20% match of approximately $100 million, raising $500 million to build the five plants, including Madera on the west coast, say informed sources. Construction of the company’s Madera plant is already underway.

The financing of the deal is subject to a number of conditions, including satisfactory completion of the debt financing of Pacific Ethanol’s Madera plant, prior stockholder approval and Hart-Scott-Rodino clearance. Pacific Ethanol expects to seek stockholder approval of the financing at its annual meeting of stockholders on December 30, 2005. Assuming all approvals are obtained, Pacific Ethanol expects to close the financing in January, 2006.

Bill Jones, Pacific Ethanol’s Chairman, stated, “This investment represents a fundamental building block for our company as we pursue our business plan. We are pleased to have gained the confidence of such a respected investment firm as Cascade Investment.”

Neil Koehler, Pacific Ethanol’s President and Chief Executive Officer, stated, “Our mission is to be the leader in renewable fuels in the western United States. This investment gives us the equity commitment required to quickly implement our plan to build out our first five ethanol plants. We are excited about the prospect of a long-term partnership with Cascade Investment as we bring new supplies of valuable domestic renewable fuels to the energy market.”

Ethanol prices tend to rise and fall with gasoline, although the fuel dropped unexpectedly early this year and has since reversed. Low corn prices, due to a glut of corn, could boost maker’s margins, some believe.

Oil companies use ethanol to boost octane in their fuel blends.

The federal government gave ethanol a big boost earlier this year when they mandated the near doubling of the fuel from 4 billion gallons in 2006 to 7.5 billion by 2012 nationwide.

So far, there’s no indication Mr. Gates will follow the passion of songwriter Willie Nelson for the benefits of biodiesel. The famous country singer has praised the renewable fuel and has been dubbed “Bio Willie” by some.


Election Aftermath
Green Future For Visalia?

Visalia - Whatever the final tally, it appears Visalia is heading for greener pastures in its political future. A new “green” majority seems to be in place on the city council with the election of former mayor Greg Collins to a seat and the reelection of current vice mayor Jesus Gamboa. Add those to current city council member Greg Kirkpatrick who did farmland preservation for a living before he returned to farming in recent years. All three share a philosophy that seeks the preservation of farmland even as we increase the density of urban development within our city. All have been critical of developer initiatives to push “sprawl” on Visalia’s fringe.

Just what the exact order the three winners will rank in the final count when it is done in a few weeks isn’t clear. Gamboa is current top vote getter with 9375 votes as of November 11, Collins at 9784 and former mayor and current council member Don Landers third at 9155. There are 1250 votes yet to count. Next to be decided is who will the council select as the mayor for the next 2 year with odds that Gamboa might get the nod.

The hotly contested election brought out 51% of the registered voters - a high number that appears to reflect community attention in the hotly contested race. The winners will get over or near 10,000 votes each. “Last time I won with around 5000 votes,” says Kirkpatrick. “I think the larger number reflects growth in the community for sure, but also strong interest by the voters.”

So how will the new majority govern and how will it affect the planning process? City planner Fred Brusuelas says there was a shift on the council some four months ago when the council voted 4 to 1 to deny a Centex housing project along West 198 on Roeben on land owned by Maggie Elliot. That vote “signaled to me that the city council was concerned about the future planning efforts on the city’s fringe areas.”

The proposed project was denied as the city council decided instead to carry out a master plan for the West 198 area. Since that time staffer Brusuelas says each application for a project “has received a more critical review.” Some say projects in the past got a simple rubber stamp.

Brusuelas says the widespread view is that the city has “experienced a land rush” in the past year and prompted planners to stop and ask “are we making the right decision approving more subdivisions without asking whether we are building neighborhoods.”

Rapid subdivision growth on all quadrants of town has caused the council to call for a master plan on the city’s southeast as well where some 850 acres are the subject of a study and master plan. This new council who will have to address to what degree this project moves forward probably as soon as they are seated.

Council member Kirkpatrick says the ideas that come out of these efforts can be used throughout the city in the future.

Looking for more scrutiny of developers and property owners in earlier plans for annexation and general plan amendments Collins criticized the fast pace of general plan amendments - 50 in five years and proponents will have a harder sell.

Often these annexations require Williamson Act cancellation and Kirkpatrick, for one, is ready to lead the charge to scrutinize these projects to see if they meet all requirements that convert farmland to urban areas under the law.

Still the slowdown in home sales is already underway and thus demand for the big annexations and general plan amendments will likely cool. “I still think we (the green majority) will be blamed for it,” says Kirkpatrick.

Collins for one has suggested he wants projects to fill all the criteria in the 2020 plan that was the most popular word in this fall election. While some suggested concentric growth was good enough, Collins noted the need for dense housing opportunities as well as contiguous growth.

It’s likely, says Brusuelas, that council may revisit the idea of bringing subdivision tentative maps if they are large enough to the city council instead of just seeking approval through the planning commission. There were charges during the election that the planning commission hardly ever turned down projects before them.

Just before the election developer Craig Mangano withdrew his request extending sewer to a golf course south of town - Sierra View - it’s clear this new city council would not likely entertain that idea in the first place as the last council did.

It’s clear this new council would not have voted for the west side auto mall, nor would they likely approve another extension of the commercial district on south Mooney past Packwood Creek with demand for more infill on the existing strip.

In every direction, with the possible exception of the industrial park, this new council majority will likely be looking inward to infill projects. Already builders who were holding land inside the boundary have been receiving better offers to sell it since the election, says a local builder. Mike Lane Sr. who backed other candidates worries that the council could “micro manage” the planning process. He says builders and developers seek some certainty over whether projects will be turned down or not.

Another issue on the front burner will be whether to allow Orthopaedic Associates to build a medical campus next to Jostens. Council had been encouraging the docs to build in the Downtown. But the physicians group says they can’t find enough space properly located.

The master planning process already underway on West 198 will be key decision process over the next year with the possibility of a compromise that would allow some farming and some mixed-use probability. The plan could be boosted if the council adopted farmland mitigation fees all over the city that would go into a fund to buy easement on key farmland. Kirkpatrick says he will raise the ideas he has before as a way to mitigate development of farmland. Before, the city has simply used the idea that the 2020 plan itself - by promoting concentric growth - mitigates the development of farmland.

On the same page this new city council is all behind the effort to expand Downtown Visalia to the east with the addition of perhaps elevated housing projects in the Downtown - earmarking of open space and walking trails around town, planning bike trails and the continued push to develop the arts in town.

All that is a page everyone on council would like to be on whether they are green or not.

Commenting on his victory, Jesus Gamboa quipped that his top showing was "not bad for a kid from Lamont." He was out of town this week and unable to comment for this story on political issues. Gamboa's consultant, Lane Fye, says the campaign targeted the big absentee voter and used TV effectively toward the end of the race.


Homes For Sale Pile Up Here

Visalia - The inventory of homes for sale on the Visalia/Tulare MLS have grown from 417 at the end of July to 579 at the end of August, 696 at the end of September and 1005 as of November 11 according to the Tulare County Association of Realtors. A doubling of existing homes for sale reflects a slowing market in this area as can be seen across the nation this fall.

The Wall Street Journal reported this week an 11% decline in the number of buyers signing contracts to buy homes on the West Coast - the biggest drop in the nation.

Visalia realtor Brad Maaske says the good news is that buyers can be more selective now than earlier this year. “In April/May we had 1 and ½ properties for every buyer and by November it’s at 4 and ½ properties for every buyer.” In addition Maaske says “sales pending are 50% of what they were in October of 04 and closes are down 30% from a year ago.”

It appears inventory is expanding even as sales slow, perhaps because sellers want to get on the sales bandwagon before prices fall. In the month of October 2005 there were 209 sales while in the same month a year ago sales were 301.

Maaske says it seems that after Hurricane Katrina hit, virtually every community in the nation was down. The slowdown can be seen across the country as interest rates on home mortgages have reached 6.5% on a 30 year fixed mortgage - the highest in two years - and loans for business or home equity borrowing are up from 4% during the first half of 2004 to 7% today and expected to go up another half point in the next two months.

Economists say the US federal reserve is putting on the brakes in an economy that was dependent on real estate and construction for much of its growth.

Headline energy prices may have spooked people looking to make investments as well for awhile as the nation was experiencing a crisis in confidence.

Besides existing houses, new home developers may be feeling the slowdown with reports in Visalia that several large home builders are now “cooperating” just in the past few weeks with realtors by offering a 2.5% on every sale to realtors. Before some of them were simply offering a smaller finder fee because they didn’t need help finding buyers. One new homebuilder had reportedly lowered the price of the new home lots.

One local developer who spoke with us on the basis of anonymity, says builders had routinely raised the price for new lots month after month because they could - and it didn’t seem to slow demand. Now it’s a different picture.

Visalia has an inventory of approved final and tentative lots thought to be about 7000 that builders can use to “land bank” notes city planner Fred Brusuelas. The coming of 7 large regional and national builders to the Visalia/Tulare metro area in the past year caused a “land rush” suggests Brusuelas, that helped build their inventory here. Visalia permits 1000 to 1200 new homes per year. The question will be will new building permits slow now that the existing home market and existing home lots markets are cooling.

Maaske says a slowdown in the markets in the coastal area is resulting in fewer inquiries here. He says investors market was very big here earlier this year.

“We’re on a slide now,” says Basil Perch, and “we don’t know how far the slide will take us.”

Other areas show a slowing as well in what most agreed was a frenzied market. In Santa Clara in Silicon Valley, inventory has grown from 2329 a year ago to 3088 in October 2005.

Local realtor Lane Fye of Jordan Link says realtors will need to work a little harder. “There wasn’t much to sell before, but now we can really sell homes. People have more choice.”

One key factor in the slowdown is even as the average family spending income has gone down due to entry prices spiking, for example home affordability this past year has worsened. In the Central California Association of Realtor report that just 17% of households could afford a median priced home - down from 26% just a year ago. The median price in September in the central valley was $361,290 actually down a few thousand from August but up from $294,330 a year ago. The message seems clear, if you want to sell new homes in the central valley, builders might want to offer the $200s not the $300s.


Mangano Weighs Big Goshen Area Masterplan

Goshen - Visalia developer Andy Mangano is planning a 600 acre master-planned community on the north side of Goshen if Goshen community folks express their support. County planner Teresa Szymanis says the mile wide project could be one of several home developments in the offing for Goshen as the county works to update that small town's general plan.

Mangano is meeting with residents at the local elementary school this week to seek input. Szymanis says if Mangano decides to move forward he would make an application for a general plan amendment to the county Board of Supervisors.

Mangano says the project is in the “very early stages” although it’s been on his company's radar screen for awhile. "The county has been looking to update their general plan for five years," says Mangano, suggesting a good argument could be made for the need for market based housing, offices and commercial uses for one of the poorest town's in the county. "This might attract needed investment," says Mangano, rather than just subsidized housing to fulfill the town's housing needs and build a more middle class community.

Just where Mangano is thinking of doing the project isn't clear. But Szymanis says Mangano will be asking the county to support rezoning land now zoned for industrial for this master planned project. Szymanis says the project could go as far north as Ave. 312 (Riggin).

The county has been supportive of the idea of large residential projects around the county in the past year where private development can help upgrade smaller towns like Earlimart and Pixley, even though public funds for infrastructure may be short. Goshen does have infrastructure including Cal Water and City of Visalia sewer.

The news that Mangano is planning a new housing project on the outskirts of Goshen comes even as the City of Visalia may not entertain many more big projects that need annexation because of a slower-growth mentality on the city council. As a result of the election there are 3 votes on the Visalia City Council likely to scrutinize new proposed subdivisions on the city's urban fringe - particularly when they require general plan amendments.

However, the county's new policies appear to encourage edge developments particularly where there is the chance they can help provide a brighter future for historically impoverished communities.

In a related story, Szymanis says the Board of Supervisors will hear a presentation from her office December 6 on how to process the applications for large-scale mixed-use developments such as those proposed in Earlimart and Yokhol Valley. The projects, if they are allowed, need to be processed in a consistent manner with some financial guarantees and time lines.


Bids Come In High For Acequia Hospital
Tower/Parking Garage

Visalia - Construction bids came in high on tandem projects planned on normally quiet Acequia St. in Downtown Visalia. Over the next year or two the flashing sign already up this week warns of future delays as a 6-story hospital tower goes up over the next 30 months and a new 692 parking garage begins construction in January as well.

Construction of the garage will help clog Acequia traffic as well over the next year as both sides pf the street are used for staging.

The bad news this week is that both the hospital's bid for the new North Expansion came in high as did the city's request to bid on the new 5 level garage. The good news is that both projects will still likely be built despite material costs escalation.

The Kaweah Delta bid was opened in recent days and came in 16.8% over budget, says CEO Lindsay Mann. Late this week the hospital board will likely award the bid to low builder Hansel Phelps for the core construction. The cost of the entire project including construction and furnishings will be $129,422,153 instead of $116,405,000. "We were happy the cost didn't go up 25%," says Mann worried that post Katrina material costs have boosted the cost of construction across the nation. Already steel, cement, PVC, wellboard copper and just about everything has gone up double digits pushed even further by fuel costs to deliver the products.

Across the street at the city sponsored garage the engineer estimate had been $11.5 million but the lowest bid this week came in at $13.1 million offered by Seak-Biehle. City planner Phyllis Coring says the bids will be reviewed by the Federal grantee on the project as well as by the city and return to council to be awarded in time to begin January construction. Of course if the bids are rejected that could pay the construction of the garage already delayed so as not to conflict with the Holidays.

Coring says one bright side to the construction projects are that the same construction management team Harris and Associates will be overseeing both projects as they go up. The past few weeks the city has been relocating utilities on Acequia to prepare for those massive construction projects.

Mann says the hospital tower will be six floors but only four stories will be finished off. The expansion will mean more room for cardiac care, cath labs, maternity, larger ER surgery rooms, ICU cubicles and maternity beds.


Farmers Feel Worker Shortage

by Miles Shuper

Tulare County - Many Southern San Joaquin Valley olive growers have been ten days to two weeks behind in getting this year's large crop picked with a labor shortage playing a key role.

But excellent weather, a large crop allowing slower maturity and a surge of late picking have rescued the industry. Yet the labor shortage came close to forcing some growers to miss processing deadlines.

Adin Hester, president of the Olive Growers Council, reported this week that a 15,000-ton week harvest resulted in nearly all the estimated 120,000 ton crop being picked. He reported that the total crop most likely topped the 120,000 estimate but it is still too early to determine just how big it was. The two-week delay in picking combined with good weather made a large differnce for many growers, Hester explained.

However, the labor shortage took its toll and caused grave concern for many growers. And the outlook for orange harvesting already is causing concern, farm leaders say.

Just how hard was it to get the olives picked? A look back for several weeks tells the story:

On Oct. 15 Valley growers had about 45 percent of the estimated 120,000-ton crop picked, about 30 percent less than the 75 percent normal for that date. A late surge in picking helped growers catch up, Hester explained. This is a heavy crop year, with olives being an alternate bearing crop. For the last month or two olive growers gathering for morning coffee, or later for lunch, have talked about their lack of success in getting enough pickers.

Growers claimed they faced the possibility of having their crop "turn color," resulting in lower payment from processors. When olives start to turn black, they lose value due to the quality loss during processing.

Jerry Mendoza of Mendoza’s Farms, which grows about 70 acres of olives in the Lindsay area, says a "great picking job by two good crews" over the last week enabled him to get all his crop picked. But he said this year's harvest was hard all the way. He also notes that the construction industry and the boom in the building trades has lured many former field workers into new jobs paying $12 to $15 per hour for unskilled labor. He also thinks some pickers have been playing games with growers to get better pay. "I firmly believe the days of the grower saying how much he will pay to have his crops harvested are gone," Mendoza said, adding that he favors a return to the "Guest Worker" program.

Hester says this year's southern Valley crop is averaging about $600 per ton although lower-graded quantities can bring prices as low as $400, a figure often below grower's cost.

Hester says growers have been paying between $2.50 to $3.50 a bucket. It takes about 80 buckets to make a ton, again depending on bucket and olive size. Some area growers experienced pickers walking off the job or refusing to /start picking unless their pay demands were met. Everyone seems to agree that picker shortages are more severe this year than in 20 to 25 years. Other growers say that while the building trades are taking some workers away, it is more likely that a bigger percentage of them are, as Mendoza and Hester mentioned, taking advantage of the situation, putting growers into a squeeze to get their crops picked to avoid even larger losses.

One Woodlake-area grower had about 60 pickers show up in the morning and ended up with about six pickers. He said one worker picked more than 60 buckets that day, earning a little over $150.Other growers say they expected to have over 100 pickers show up but ended up with less than two dozen. Despite the big crop, picking crews were hard to find when the harvest began.

However, other agricultural officials say that it likely is a combination of factors causing the shortages: pickers are taking construction jobs, pickers who just finished the grape harvest are getting set to harvest oranges, some pickers or are simply putting growers in a pinch forcing them to pay higher wages. Many may be staying home in Mexico where more jobs are opening in some ares.

In his monthly report to members, Tulare County Farm Bureau President Craig Knudson says, "Many in the agricultural community have had trouble getting grapes harvested and olives picked, and with the start of the citrus harvest just weeks away we are seeing a shortage of crews to harvest those crops."Some farm labor leaders say there is enough labor but growers simply do not want to pay an equitable wage to get their crops harvested.

Knudson said, "I think all growers would be willing to pay more for the jobs performed on our farms and ranches, but because of current market conditions, California farmers must complete with agriculture in third world countries which is wholly unregulated. If growers in most of these counties decide they can get more for 'organic' produce, they simply change the label- not the farming and reporting practices."

The Olive industry is extremely vulnerable to labor cost, Hester explains. At $3 per bucket and 80 buckets to a ton, the grower is paying the pickers $240, that does not count the normal 40 percent fee which goes to the labor contractor. That is nearly $100 per ton. Add to this the cost of a one or sometimes two crew leaders or inspectors which adds up to $50 per ton, bringing the total to roughly $400 per ton. This, of course, does not include growing costs such as trees, fertilizing, water and pruning. Add to all this the fact that the live market has been hit hard by off-shore olives which have put a squeeze on the domestic industry.

In a recent Olive Council Newsletter, one grower was quoted as saying " The days of $300 a ton olives are history."

Another grower who reported not showing a profit on olives in at least five years simply bulldozed 75 acres of Manzanilloss with the crop still on the tree.


What's New

Kaweah Delta will move forward on its plan to build a child and adolescent psychiatric wing at its Cypress mental health facility if Tulare County signs up to participate. CEO Lindsay Mann says three neighboring counties have signed letters of intent to support the facility but Tulare County has not yet. The Kaweah Delta board meets Friday to review the options.

Target deal close for Tulare? Target may be close to selecting the northwest corner of Cartmill and 99 (Cartmill Crossings) being promoted by Porterville developer Ben Ennis and partners. "We expect a design by Target in the next few weeks," suggests broker Walter Smith. The company has been looking at possible sites in Tulare most of this year but has yet to land. "It's interesting to see how many Mooney retailers are recognizing Tulare as a separate market," says Smith. The developers of Cartmill Crossings are now concentrating on building a mammoth regional shopping center on the north side of Cartmill east of 99 - a plan that still requires annexation into the city and a firm plan to help fund the rebuilding of the old interchange.

Ready to forget about the election, Governor Schwarzenegger is off this week to China to try to boost trade for the Golden State. China is already California's 4th highest trading partner purchasing $6.8 billion of California goods. Locals hope farm goods are high on the list. The governor is unlikely to meet up with the large delegation of Tulare County chamber members that are visiting China this week as well.

Employers will be cheering the news that Workers Comp rates are expected to fall in early 2006 according to the state insurance chief. Rates should drop 15% adding up to a 38% decline over the past two years, says John Garamendi. Most believe rates are still too high.

There's a big hole in the Packwood Creek shopping center caused by the departure of Krispy Kreme. We're talking donut holes. Fast food restaurants are not wasting any time looking to fill it. "There's lots of interest from potential tenants," says broker Walter Smithy. Set up for food with drive thru look for new player here soon.

Visalia still has hopes for a station stop on the High Speed rail line proposed for California. The state agency pushing the plan adopted language that calls for study of an alternate route from Bakersfield to Fresno rather than the BNSF route on the Westside and a possible Visalia station. "We are pleased we are still in the game," says city administrator Carol Cairns. Next hurdle - will the governor fund the studies needed to go forward in his January budget? Voters could go to the polls as early as next year to fund the nearly $10 billion project.

Stronger dollar recently will mean valley ag products will be more expensive overseas. The dollar is at a two year high this week.


Life in the Winner's Circle

by Tom Wells

Visalia - Looking back at the recent Visalia City Council race, it's interesting to note how the victors and their supporters took the news that the candidate's election–or reelection–was all but a done deal. But it's also fun to check out the ambience at victory parties during the runup to the final totals. And we must not forget what the winners say after all is said and done (pun intended).

My first stop on election night was Tazzaria Coffee and Tea on Main St. That's where Greg Collins and those rooting for him were hanging out. When I began a three-stop sampling of candidate celebrations, the former council member and mayor had been in the lead with 29.7 percent of the precincts reporting. By the time I'd arrived at the coffee shop, the percentage had risen to 44.8 and he was still at the top of the list.

There were a few people chatting quietly with Collins at the front door but, as I entered the room, I noticed the sound level was quite high. A young guitarist sang his amplified songs in my ear, people standing around or sitting at tables fairly shouted their thoughts and opinions and small-talk over the music, others jostled for a position in line to order tea or flavored coffee and a constant human turbulence surrounded the free hors d' oeuvres. The whole place seemed suffused with a sense of excitement and anticipation: Do we dare to hope? Things certainly look good right now. I refuse to believe those numbers will change drastically before this is over!

Energy swirled around the room as everyone waited for the final word about their candidate's bid for office and that was reflected in the words of those I spoke to. With an almost maniacal glint in her eyes, Collins supporter Vicki Stasch described the group as quite eclectic and very dedicated to preserving Visalia's quality of life.

A woman sat quietly at the back-most table in Tazzaria, intently monitoring a notebook computer displaying the latest results from the county elections web site. And it wasn't long before Greg Collins called for everyone's attention and announced his victory. He began his remarks by calling it "an amazing night" and saying that he was "humbled by both the turnout and the results" of the election. Collins went on to thank those who had helped him and then praise community members. "I'm really proud of Visalia," he said, "the voters saw through all the negative campaigning."

The celebration was over by the time I arrived at my next stop. Visalia council member Don Landers, his wife, his daughter and her boyfriend were about the only people left at the Visalia Women's Club building on Center St. One could tell from the linen on the tables, the podium by the fireplace and what remained of the buffet that this victory party had been a bit more formal than the one at Tazzaria. As for the ambience of the event, Judy Landers put it this way: "Everyone here expected Don to win, so it was a comfortable celebration."

When I spoke with the councilman-reelect, he added a couple of disclaimers, noting that it's always a challenge to run for office. Landers says he "took the issues seriously" and understood that retaining his seat on the council "was no cake-walk." But, he added, "after following elections for 16 years, I've learned the early numbers are pretty indicative of the way they're going to go."

What does Don Landers have planned for his third term? First, carrying on the current work of developing east downtown Visalia and building the new civic center, as well as starting the process of updating the general plan. Although it's a lengthy process, he said, "We could have master plans for both in 2-3 years; we could maybe have the civic center design completed or even start building, as well." And Landers would like to see a second airline serving Visalia with a connection to L.A., saying that Scenic Air has proven the demand is here if you offer the right product.

The last stop was at the victory party for Vice-Mayor Jesus Gamboa. There were a few more people still at the event and it was clear from the balloons and other decorations that the celebration had been quite festive. When I arrived at the Lamp Liter Inn's banquet room, everyone present was in sort of a dither about the election results being projected on a screen from a notebook computer. You see, the computer had suffered a glitch and could not display the final results.

The fuss was based on the fact that the group had heard a rumor indicating 100 percent of the precincts had reported and that the incumbent had surpassed the other candidates to become the top voter getter. While someone went to get a confirmation, I asked Gamboa how he felt at the moment. His answer? "I feel very good, especially if it's true I finished at the top with all the precincts counted." Before I could ask another question, his first-place finish was confirmed.

At that point, the dozen or so people in the room started whooping, hollering, hugging each other and congratulating the newly minted third-term council member. While Gamboa took a congratulatory phone call, I chatted with his long-time friend, Gary Heffelfinger, who's been helping since the very first campaign. He spoke of the time eight years ago when his friend asked him if he should run for a seat on the Visalia City Council. Heffelfinger remembered encouraging Gamboa to run because he was not a hardliner but warning him that it would be tough because he is a Latino.

Olivia Gamboa, rightfully proud of her husband's third win, attributed part of his political success to his hard work and honestly. And she said she thinks his believing in people made him #1 this time. The beaming wife also contends the vice-mayor was elected to a third term because he's perceived equally as both a Latino and a citizen.

By this time we were all pretty tired but Jesus Gamboa had been freed from the phone and graciously agreed to answer a few more questions. First, he believes he won again because the people believe in his positions and trust his judgment. Second, the obviously flagging politician believes the election sent two messages about the city's residents. "The first," he says, "is that dirty politics will not be tolerated; big money does not rule Visalia." The second is that people want growth slowed a little bit–not stopped, but examined more thoughtfully and methodically.

Finally, Jesus Gamboa outlined his priorities for the next four years. "I want to put a light rail system on the radar for our community," he said. He'd like to lay the foundation for such a project now so it could be operational within the next 10 years because, "as the city grows, congestion will only get worse." Gamboa would also like to see a master plan developed for the southwest part of the city and the widening of Shirk from Riggin to Walnut expedited.

With that, Gamboa and his family headed home, knowing what the other victors know–they most assuredly have their work cut out for them as they start a four-year stint on the Visalia City Council.


Tulare Wins Lawsuit Over Truck Terminal

Tulare - Judge Melinda Reed ruled from the bench last week that a pilot group that brought suit against the City of Tulare when it approved a conditional use permit for a new truck terminal did not have standing to sue. Reed says the pilots' organization and Cal Trans Aeronautics, which joined the pilots group in the suit, had not exhausted their administrative remedies because they had not been present at the hearing in front of the city council at which the conditional use permit was approved.

Jay White, attorney for the California Pilots Association which filed the suit last year, says he isn't sure if his client for Cal Trans Aeronautics would appeal. "Our concern has always been safety" because the terminal has been located across the freeway from the end of the airport runway.

Tulare City Attorney Steve Kabot said Cal Trans transportation had been present at the CUP hearing and requested at that time that Knight Trucking dedicate 30 feet for a future widening of Highway 99 to add two lanes. For their appearance it appeared that this division of Cal Trans didn't have a problem with the terminal. He said Knight Transportation's conditional use permit is now final. That permit allows the company to build a terminal building and install an above-ground fuel tank. While they never have installed a fueling tank, "They can do it any day they want," says Kabot, although he believes the company may not be moving forward on the fueling tanks for other reasons.

Attorney for the trucking firm, John Peterson, says the CUP allows construction of an above-ground fueling tank as well as a new sign. He expects the company to move forward on the sign but says "environmental concerns" still weigh in the decision whether to move forward on the tank.

The judge ruled that the city needs to work with the county airport land- use commission to properly exercise their waiver right that gives a city an exemption from county rules. Kabot says since a new general plan update is in the works next year that plan will be sent to the county to satisfy this part of the ruling.

In their lawsuit the pilots appeared to be asking the judge to abate the hazard in the take-off area - meaning they wanted the truck terminal removed. Sources say the city, pilots and Cal Trans tried to work out a settlement but without any luck. Judge Reed gave this process time to work itself out. But now the ruling appears to end the story.

City attorney Nancy Jenner, who handled the case, says "this ends the dispute in terms of Knight Transportation."

Tension over land uses around the Tulare airport has eased somewhat in recent weeks with a consensus built through the Tulare airport manager over what land can be developed in the future even as Tulare seeks to expand its airport and lengthen the runway.


SEWAGE VS. GROWTH IN PIXLEY

By Tom Wells

Pixley - There is a quiet little controversy brewing in Pixley involving bugs, bilge and bucks, in a manner of speaking. And the Pixley Public Utility District is right in the middle of it. That's because there's been a moratorium on growth in that town for more than five years. The ban on new construction stemmed from decisions by the state's Regional Water Quality Board that 1) the amount of discharge from the PPUD sewage treatment plant was too high and 2) that discharge contained too much nitrate.

Although the utility district is trying to do something to get the moratorium lifted, the length of time it's taking is beginning to wear on those who would sell their developed property for expansion and outside developers who would buy property to build on. Until the sewage treatment problem is solved and the RWQB's requirements met, their plans are on hold.

Several interested parties were in attendance at the most recent meeting in the past week of the PPUD Board of Directors: Chairperson Bill Van Scyoc, several board members, Self-Help representative Paul Boyer, Park Drive Mobile Home and RV Park owner Bill Baker and his paralegal daughter, Andrea Anthony, potential mobile home park purchaser Ray Roeder of Santa Cruz, his helper from Tulare, Diane Friend, and two developers. Scott Royland was there representing Eagle Meadows Development of Stockton, which wants to build homes on 120 acres near Compton and Ash. David Boldt and Daryl Jordan attended on behalf of Summerton Homes of Merced. Summerton would like to build 150 homes near Pixley School.

During the board meeting, which was civil almost to a fault, Chairman Van Scyoc announced that the first $200 K dollars of a $2M grant from the state appeared to be a done deal. He had heard that from staffers in the offices of Tulare County Supervisor Connie Conway and 30th District Assembly Member Nicole Parra. The connection? When PPUD decided Pixley needed a new sewage treatment plant to lift the moratorium and prepare for future growth, it told Conway about needing grants and loans to pay for it; Conway took the idea to Parra, who then went to bat for it at the state level.

The problem for the other stakeholders at the meeting was that the board didn't have any paperwork in hand, making the granting of the money nothing more than a rumor. The board chair promised to obtain confirmation. But that was not the only thing that stuck in the craws of the local stakeholders. Anthony, Baker, Friend and Roeder all expressed surprise tinged with dismay when Boyer plopped a thick stack of papers on the table that was the nearly completed application for the other $1.8M of the state grant. They had thought the application went in earlier this year along with the one for the original $200K of the grant.

Still, relations among those present remained cordial, at least on the surface. Since the total cost of constructing a new sewage treatment plant for Pixley is estimated at $4.7M, the district needs to obtain another $2.7M to move forward. Van Scyoc says the plan is to get that from the USDA as a simple grant or a combination of grant and loan. When asked about the timeline for submitting that application, Boyer said the feds had firmly announced they wouldn't even entertain the idea until they saw how much the state was really going to kick in. Again, there was a look of surprise and dismay on the faces of the stakeholders.

As if that weren=t enough, Van Scyoc had told those in the room that there was a Plan B, in case building a new facility proved untenable. That plan involved using microbes to do the work of turning nitrates into nitrogen, breaking down the solids and oxygenating the sewage before discharge into ponding basins. The technology would allow the Pixley Public Utility District to bypass the use of the digester and clarifier used in traditional sewage treatment facilities. Why is that important? Because the headworks (where the digester and clarifier are located) of the existing plant, which was built in 1946 are badly in need of repair, which would be part of the expense of building a new plant.

Are you with me so far? Now, there seems to be some concern about whether a microbe-based facility could satisfy the RWQB's requirements cost-effectively to get the ban lifted and whether it would allow for expansion beyond a million gallons per day. Van Scyoc says a brand new plant would meet the district's long-term needs in those areas but the board needs more information about the microbial method. To that end, he and board member Randy McMaster will visit a plant of that type in Wyoming that processes 500K gallons of sewage a day for a town of 5K people.

Looking at the numbers, a new plant would process a million gallons a day at a cost of $4.7M (plus the cost of repairing the headworks) and be expandable as the town grows. The microbial method would process 500K gallons a day for $788K dollars or a full million for about another $340K dollars, per estimates from Keeton Industries of Colorado, which builds and installs the processing pads. But there is still the nagging question of expanded capacity.

Diane Friend suggested the microbial process be installed and used to get the ban lifted and allow the Baker/Roeder deal to go forward along with the plans of the out-of-town developers, while still working on the plans for a new plant. Bill Van Scyoc immediately objected that it would be a waste of a million dollars that could go toward the new plant construction. Friend then suggested sewer hookup fees be raised from the current $800 to $1,800 to finance the microbial project while waiting for the new plant to be get underway. She and Roeder calculated that with Pixley's 800 households generating 300K gallons of sewage a day, increasing capacity to 1M gallons a day would allow for 2,667 new household hookups, which would generate about $3.4M to pay for the short-term project and help with the long-term one.

There came a cropper when Paul Boyer pointed out that using a microbial facility to meet the RWQB requirements to withdraw the cease-and-desist order would also remove the impetus for the state and the federal governments to provide PPUD with grants and/or loans. Van Scyoc likened it to shooting oneself in the foot. He also claimed that trying to accommodate both approaches could leave coming generations saddled with a huge loan payment debt without providing a capital funds with which to pay it off. Roeder and Friend contended that the increased revenue from the short-term solution would provide the underpinning for financing the new traditional plant, or more microbial sewage treatment if expansion proves feasible.

After much discussion, and all but Boyer and the board members had left the room, the local stakeholders went outside and stripped away the veneer of civility. Despite the Self-Help reps' repeated disclaimer that all such projects are progressing slowly through the state bureaucracy these days, the group fulminated that more than half a decade had passed since the cease-and-desist order was issued. The level of frustration was evinced by the language some used, words not suitable for these printed pages.

Baker, Anthony, Roeder and Friend contend that members of the utility district's board had been dragging their feet until the four started attending meetings a few months ago. And they didn't like what they heard that night one bmembers had left Van Scyoc's estimate that the new plant would be up and running 18 months after the being funded, and Boyer saying it could take a year to complete the process of securing those monies, infuriated them. Before heading home, they vowed to keep the pressure on PPUD until the directors arrived at a much more amenable solution.

How this drama plays out over the coming days, weeks and months remains to be seen.


Measure I: Tulare Votes For Public Safety

By Todd Fitchette

Tulare - Additional money to pave streets and improve police and fire protection in the City of Tulare is forthcoming with the passage of measure I earlier this month.

Voters agreed overwhelmingly on November 8th to raise Tulare's sales tax rate by a half-percent. While the measure needed only a simple majority to pass, more than 70 percent of those casting ballots in the November election agreed with Measure I. The increase is scheduled to take effect by April 1st, 2006.

"As a downtown business owner, we know that there will be better coverage by police downtown (as a result of Measure I)," said Aero Dogs owner Don Lebaron. "And that's all good."

The need for this money, estimated $2 million in the first fiscal year, stems from the continual shift of traditional sources of local revenues B away from city coffers to the state's general fund B by the California Legislature. This has left cities scrambling to fill the budget shortfalls that have typically paid for public safety and roads.

The nice thing about a local sales tax measure, according to Tulare City Councilman Craig Vejvoda, is this money truly stays local.

"For years the state's been taking our money," Vejvoda said. "They can't get their hands on this money."

The future of Tulare look bright, not just because of this particular tax measure, but because it's looking at tremendous opportunities in the coming years to increase it's retail business base, Vejvoda says. But with that comes the need for additional infrastructure. "We need significant infrastructure improvements, particularly with the interchange at Cartmill and 99," he said.

According to Vejovoda, those improvements alone are estimated to cost the city $25 million. "It's unrealistic to think that we're going to get all of that money through development."

Vejvoda continued: "Having a general tax measure gives us the flexibility I think we need."

That flexibility, according to Vejvoda, was given the city council through the non-specific language of Measure I.

"It's going to be important that future councils have the flexibility to make decisions as future issues come up," he said.

Melody Tucker agrees.

She chaired the Yes on Measure I Committee. According to Tucker, while the council has promised Tulare residents to use the funds on police, fire and roads, she said it's important not to tie the hands of the city council if revenues from the sales tax are needed for other uses.

"If we were to have a major earthquake, like the one in Coalinga in 1983, we couldn't have used that money for building repairs if we had a specific tax," she said. "You have no flexibility when your needs change."

Even so, she believes the city's decision to use the sales tax revenues for police, fire and streets should be binding, and that the funds shouldn't be funneled into other projects not related to public safety.

"As taxpayers and residents of the city, we voted for this, and these are the priorities we expect them to maintain," she continued.

Sales Tax

According to Vejvoda, the average amount of money paid by every person in California in sales tax each year is $130. For the City of Tulare, that average is $119. In Visalia the average is $169. What this means, Vejvoda says, is more sales tax revenue is collected in Visalia because many people shop in Visalia who don't live in Visalia.

"Everyone in the county shops in Visalia," he said. "That's been going on for decades, we hope to change that."

Early next year Home Depot will open a new store in Tulare. Additionally, more outlet stores are being built next to the existing Horizon Outlet Mall, and additional businesses are sprouting up in Tulare. All these will be additional sources for the collection of sales tax revenues by the city.


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November 16, 2005

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