Railex Train Weighs Delano or Kings County Location
San Joaquin Valley - You've heard about FedX – now there's Railex, a two-year-old company that promises the Central Valley produce industry what they say is a better way to reach East Coast markets.
New York-based Railex has partnered up with Union Pacific and other nationwide rail companies to offer guaranteed five-day service from its hub in Washington state to New York. Operating since October 2006, the start-up company will soon be running two weekly 55-car refrigerated-unit trains full of produce next month that won't stop until they reach their big eastern distribution center. The trains run each day, also carrying freight back to the West Coast.
Railex is talking to two Valley jurisdictions about setting up its California cold storage facility that will connect the Central Valley, the nation's largest fruit growing area, with eastern markets through their Wallula hub in Washington state. Clearly, the goal of the company is to offer some stiff competition to long haul truckers who carry most of the fruit today.
The Promise of 300 Jobs
Delano City Manager Abdel Salem confirms the city is talking with Railex officials about building a produce terminal in Delano – a massive 200,000-square-foot cold storage warehouse that would be linked to the main UP line that runs down Highway 99 on a private rail spur. The company would employ 80 workers to start, with the promise of 300 jobs long term, he says.
“The city's redevelopment agency owns land optioned by Sears that they don't want and we are selling 60 acres of it to Railex for what we paid for it - $21,000 an acre.” He says the company plans a loop rail line through its new plant of over two miles.
The plant site is at the south end of town near Paramount Citrus.
The city manager says all permits and environmental work are in place that would allow the company to begin operation as soon as July. “It's amazing how quick the time line is since they only came to see us about it four months ago.”
The city needs the jobs, suffering under 25% unemployment annually.
From the timetable announced, it's clear this fresh express train wants to pack this summer's fruit in the Valley.
But some wonder how efficient the route will be given the fact the company wants to ship the fruit to the northwest before it takes off to the East Coast? How competitive will be the pricing say the doubters.
Adding weight to the discussion is a nomination of a $3 million fund request to support the Delano project through state Proposition 1B by the California Transportation Commission that could be approved as soon as next month.
Also confirming discussions with Railex is Kings County Economic Development Coordinator John Lehn who says the company has been looking at a particular site along the Cross Valley rail line that would connect to the main UP line at Goshen. “We've heard they are also looking at another site (outside the county) but they haven't told us no,” says Lehn, who has reported the trans loading facility prospect to his EDC board.
“Wherever they build in the Valley it will be a big deal benefiting the local economy,” suggests Lehn.
While the Delano site for Railex has the advantage of a $3 million public subsidy, the Kings County location apparently does not – putting Kings County at a disadvantage to land the jobs there.
What it does is give some competition not just to long-haul truckers but to typically bureaucratic and slow rail companies that used to deliver produce faster than they do today, say some critics.
By contrast, Railex proposes to be more nimble using state-of-the-art 64-foot refrigerated cars with each load tracked using GPS. The idea was the brainchild of an East Coast grower, Andy Pollak, looking to cut eastbound freight costs while preserving the quality of the fruit when it arrives.
“Fruit from the Central Valley often doesn't arrive in good shape,” says Cutler grower Tokkie Elliot, and there is too often a dispute over “the quality and price the buyers are willing to pay.”
Elliot notes that rail service went downhill after rail lines in the eastern valley were abandoned – something they are still trying to do in southern Tulare County.
Why should California kick in $3 million? Like most other
Prop. 1B corridor improvement fund projects, the Railex deal is likely
to decrease long-haul truck traffic and the pollution and congestion
it causes while boosting the local economy.
Currently, Railex takes northwestern produce like onions, cherries,
oranges, apples and potatoes eastbound, returning with smaller loads
of seafood, beer and juice.
Kern County COG planner Rob Ball told the Voice that he was impressed
by the fact “the UP came to see us teamed up Railex VP Paul Esposito”
who described Railex as a “rolling warehouse.” Ball says
the Valley's rail lines are nearly maxed out and says short haul local
fruit has suffered because the big class one train firms don't have
time for them “only want to maximize their long haul routes.”
Valley Already Paying the Price for Pollution
Ball says he questions public funding of $500,000 to improve BNSF line for Amtrak trains when the rail line then shuttles local shipments onto leased UP lines along 99, further clogging that line – the only two that service the San Joaquin Valley. Ball is an advocate of removing heavy duty trucks off Valley roads, noting that the trucks account for 80% of the wear and tear on our highways. But he fears there will be no room on the rail line for shorter-haul loads. The Kern COG is a big supporter of plans to build an inter-model freight facility in Shafter.
The Valley's eight COGs have lined up with Sacramento and the Bay Area to jointly agree to back multi projects that include five in the Valley. One was the idea of Crows Landing becoming an inland port connected by train to the Port of Oakland. Another was to fund the Shafter inter-modal facility. Still another is the request for public cost sharing on the Tehachapi loop (see other article). Now the Delano Railex project has been added.
Although $2 billion in 1B funding will be earmarked with roughly 60% going to the L.A. area, 30% to northern California that includes the Valley and 10% to the San Diego region, a final selection of projects is expected in April.
Fresno State Sen. Juan Arambula argues the valley should get its fair share of the funds noting, “The Valley is already paying the price for statewide goods movement. By 2010 the Valley will account for nearly 45% of the heavy duty diesel truck miles traveled in the state.”
All Valley and northern California government entities agree that Oakland has the opportunity to bring three times what they land today helping to relieve west coast congestion that could force shippers to Baja California ports. What is lacking in Oakland is adequate rail facilities to get the loads out of the port. Northern California supporters hope to upgrade Stockton as a port in the future.
Rail Company Wants $50 Mil State Bond
Funds to Upgrade South Valley Track
BNSF says in the application that the improvements made will increase rail shipment through the corridor by 70% in the future.
Without the improvements, the route will be at capacity as soon as 2011, it claims. To back this up, it cited a national study of freight corridors that rates the service over the corridor is at level E where level F is the lowest, demonstrating the idea the steep upgrade backs up freight, creating a bottleneck.
Ironically, while BNSF has agreed to make $50 plus million in funding to construct the improvements, the owner of the busy rail corridor, Union Pacific, will add none of its funds to the pot of money.
BNSF says it runs about 70% of the 40 trains a day (UP runs the rest), over the 68-mile corridor that climbs the Tehachapi Mountains to Mojave from the Valley connecting both Los Angeles and eastern markets.
To justify the major public expenditure, BNSF claims that the project will reduce future truck traffic by some 3,000 trips daily and will offer a major economic boost to state jobs.
The application to the California Transportation Commission, which will take up the funding request next month, says the project will mean 6,700 direct jobs and a $3.9 billion impact in California.
The Tehachapi rail loop project is supported by both Bay Area and Valley councils of governments appearing to make this project a top priority for the state Trade Corridor Improvement Program that is part of the Prop 1B Bond funding. The unusual coalition of Valley COGs as well as Bay Area and Sacramento area governments has looked to a united approach to funding likely to be approved by the state in the next few months.
The CTC is set to make a final decision in April.
Tulare County Transportation planner Ted Smalley told the Voice “all eight Valley counties are working together to support these projects that will benefit our air quality. Valley air pollution doesn't stop at the county line.”
Behind the coalition is the idea that while L.A. ports get some 85% of cargo traffic from overseas, adding funding on infrastructure would allow Oakland to capture more of that same business, helping to boost the rest of the state to capture more export business while improving air quality and goods movement north of the Tehachapis.
BNSF has an ambitious schedule to get cracking on the big project, saying it will be ready as soon as 2012 to begin construction.
The Tehachapi loop climbs around steep curves and passes through 18 tunnels on a steep grade that slows trains taking four hours to traverse the 68 miles. The loop, built in the 1870s by American engineering and Chinese labor, is considered an engineering marvel looping its track round and round as it winds uphill.
Storms Build Plentiful Snowpack
Tornado Causes Minor Damage in Visalia
Tulare County - January has been very good to the snowpack and those who make their living off the water supply to the Valley - and a bit wild with a tornado touching down in Visalia Sunday.
Farewell Gap at the top of the Kaweah watershed has more than 8 feet of snow as of this week – better than all last year - as a series of storms in the past month have just about tripled the snowpack from the first of the year.
Kaweah River watermaster Bruce George says the storms have made it an above average year for precipitation so far. “It definitely is a good start.”
Already, Farwell Gap, at 9,500 feet in Mineral King Valley,
has 76% of normal water content for the whole year, nearly triple what
was measured a month ago.
The snowfall is welcome coming after last year's poor showing –
in the bottom 10% for all years for the Kaweah water supply. The good
news – more storms are in the offing, say forecasters. The local
supply will be welcome as farmers worry if they will have enough water
for their crops this year given the likely reduced supply from north
of the delta.
The snowpack is outstanding up and down the state. A snow sensor along the Sacramento River watershed showed nearly 90 inches of snow depth, and at Agnew Pass along the San Joaquin River watershed there is 70 inches of snow.
Both measurements are double from the first of the month.
At Heavenly Valley near Lake Tahoe there was more than 15 feet of snow
on the ground as of Monday.
While the week-long series of storms did not produce a lot of rain in
the county, Sunday's thunderstorms did a fare amount of damage, including
a Category 0 tornado in Visalia.
The Weather Service in Hanford confirmed Monday that a tornado with winds in excess of 60 mph did touch down about noon, staying on the ground for about 10 minutes. The twister, rare but not unheard of in the Valley, did minor damage to an area about 50 yards wide for about 1.5 miles, basically along Akers Street, between Demaree and Goshen avenues, said the weather service.
The Royal Oaks Mobile Home Park suffered the most damage, but no one was injured.
Damage occurred across the park with several medium-sized shallow-rooted trees uprooted, fences downed, branches removed and shingles and carports damaged, reported the weather service.
“The tops of several trees were damaged and some fences were blown in different directions, suggesting this event was caused by a weak tornado. In addition to the damage path, the weather service Doppler radar also indicated rotation within the lowest layers of the storm,” said the weather service.
However, wind damage was evident throughout Visalia and the county. A downed tree caused a power outage in the Dinuba area and several utility poles were blown over on Paige Avenue in Tulare. Tree limbs were broken and trees were down in many areas of the county.
Hanford meteorologist James Brotherton said Monday the storm was slightly unusual for this time of the year. “It was not atypical. It was a little early,” he said the storm that is more likely to occur in early spring, than January.
The storm prompted the city of Visalia to go to its highest emergency response at 1:20 p.m. A Level 3 response required all city services to respond, the first time that has been done.
Nancy Loliva, city public information officer, said downed trees and limbs caused problems throughout the city, including power outages and traffic signal disruptions. “It was all handled,” she said, and the response was ended by 9 p.m.
On Sunday, the Visalia Fire Department responded to seven public service assists and 15 reports of power lines down.
For the day, Visalia only recorded .14 hundredths of an inch of rain at the airport, and another .04 hundreds on Monday.
Visalia - College of the Sequoias is about to announce COS Digital Village, a web site to build professional networking, as well as a way to connect the community online. COS will present its Digital Village at the Economic Summit on March 12 in Visalia.
“It's a community center,” said John Winterton, COS information technology and electronics department head. “That's the main idea, to build it starting with the community. We want to make a much better connection between students and employers,” he said, explaining they are interested in the local community, including non-profit and other community organizations.
“One of the things we felt education hasn't been doing a very good job of is connecting the students we have here who are training for a particular career with businesses in the local community,” he added, explaining that students could post their digital resumes and portfolios on the site, while businesses could post information about their corporate culture and jobs.”
COS is working with other institutions on the project.
“At this point, we are trying to partner with Fresno State and their business department,” he said. “We are getting an MOU (memorandum of understanding) with University of Hawaii. They're going to partner with us. They have developed a whole career pathways web site. They are probably on the high end of development of web site design as far as career information in the nation. They are willing to give us everything they've got if we share this project with them.”
Winterton is also interested in building relationships with other schools.
“There is no reason that this couldn't push out to the five-county educational consortium which we're kind of the leaders in,” he said. “And who knows, even California or the nation is possible. This thing could get a life of its own.”
Winterton's son, Rhett, the president and CEO of FaceBookYou, is also involved in the project, helping to develop the web pages. “We need somebody with that kind of expertise and the eye of the contact group,” said the father, who added that the target group is 18 to 25-year-olds.
The idea has been very successful in four-year colleges, allowing students to exchange information and develop relationships, according to Bill Scroggins, COS president. “It's also allowed colleges to connect with their students using a virtual approach,” he said. “It gives colleges a chance to provide services and information in a format that's very accessible.”
There are not many community colleges that have this kind of online presence, Scroggins said. He explained that some funding could come from “functions on campus that could redirect a portion of their energies into this site.” Some funding for brochures and catalogs could be rechanneled to this project.
For partnering information, contact digitalvillage.cos.edu@facebookyou.org. For automatic online information, contact info@facebookyou.org.
Visalia - The Kleinfelder Team, a Valley-based environmental engineering firm, has been given the job of developing the Mooney Grove master plan.
Tulare County Supervisors picked Kleinfelder on a 3-2 vote with board members Allen Ishida and Mike Ennis favoring another firm, the Cooper Carry Team. Ishida said Cooper Carry has more experience in finding and developing funding sources and its concept is different from simply a “historic village” type envisioned in Kleinfelder proposal.
“They (Cooper Carry) have experience in creative funding,” Ishida said, and “Tulare County needs help” in being able to carry out such a compressive 20-year master plan. He said a plan must take into consideration utility costs and other long-range issues. He also said the county is changing and should not be content to simply create just a historical facility, but one to meet the changing needs of the community and the county. Ennis said he also liked the Cooper Carry concept of incorporating commercial uses and services in the overall plan.
Supervisor Phil Cox, after being assured by county staff that the county “owns” the ideas offered by both firms, said using a combination of concept proposals could produce the best possible overall project. “We purchased their ideas and we can use them in our visions,” he said. Cox said he wouldn't want Mooney Grove to assume the image of an amusement park with commercial venues fronting the entrance. He said the recent planting of more oak trees and upgrading of the irrigation and other ecological systems must be incorporated into the image of the park.
Supervisor Steve Worthley and Board Chairman Connie Conway backed the staff recommendation to pick Kleinfelder.
Worthley cautioned that time is running out for the county make decisions pertaining to the $1.4 million grant from the California Cultural and Historical Endowment to pay for the design and construction of the new farm labor and agricultural museum which is to be located adjacent to the current county museum. It is also destined for a major upgrade and expansion.
More than $135,000 has been pledged to help pay for the Master Plan project, including $50,000 in the county's capital budget. Another $85,000 had been pledged by the cities of Visalia and Tulare, the Tulare Irrigation District, Kaweah Delta Water Conservation District as well as the Tulare County Associations of Governments.
More than a year ago, the county embarked on developing an ambitious upgrading and potential expansion of the famed park on the south edge of Visalia. The oak tree-adorned park not only includes the county museum, but recreational areas, arbors and other amenities, as well as being home to the famed End of theTrail statue.
Water will be a major factor in the park's renovation, including plans to build a second lake along Cameron Creek, which would serve as a recharge basin for the area. This would allow the county to shut down two wells and use water in the lake to replenish the ground water.
The City of Tulare has been working with the TID and the county in developing ways to recharge the groundwater using federal surface water when available. Increasing surface water to flood irrigate sections of the park would, along with an extensive upgrading of the Mooney Grove irrigation system, provide help to the massive grove of oak trees, the heart of the famed park.
Tulare County - Should the economic recovery package passed by the House Tuesday remain intact after the Senate gets through, Tulare County could see an infusion of more than $70 million in the form of tax rebates.
Retail managers, building industry leaders, bankers and those in economic development all agree any stimulus package will be welcomed.
The House passed the $146 billion economic recovery package, but it faces an uncertain future in the Senate where some lawmakers want to make changes to the plan worked out between President Bush and House Speaker Nancy Pelosi, D-Calif.
The House version calls for rebates of up to $600-$1,200 to most income earners while giving tax breaks to businesses. The breakdown would be $600 for individuals and $1,200 for married couples and $300 per dependent child. The checks could be mailed out in May. The Senate plan would send rebates to all Americans with earned income of $3,000 or more, while the House plan gives only partial rebates to individuals with adjusted gross incomes of more than $75,000 and couples with incomes in excess of $150,000, and no rebate at all to the wealthiest taxpayers.
Eric Frost, finance director for the city of Visalia, said the city has 40,000 households and if 30,000 of those get some form of a rebate check, then the city could see $30 million if those checks average $1,000. However, that is just 1 percent of the city's annual taxable sales. Countywide, the amount could top $70 million.
“It's not a small number. Just not a huge number,” said Frost. “Its money they (taxpayers) didn't plan on. They tend to spend it.”
Patty Rocha, manager of Preferred Outlets at Tulare, said the money will definitely be felt at the shopping center with 54 stores.
“I think that the past rebate they got – we definitely saw an impact,” said Rocha. “I think people will go out and spend it.”
Frost said the move could stimulate more spending. “They're hoping for a multiplying thing. This is the federal government's coupon method,” he said, explaining the hope is people will spend more than just the rebate check.
Steve Peck, commercial development manager for Mangano Homes, said he thinks the rebates are a good idea. He and Bob Keenan, executive officer of the Home Builders Association of Tulare & Kings Counties, agreed there is debate as to just how bad the national economy is right now.
“The jury's still out if we're heading for a short-term or long-term trough,” said Peck, but Keenan said he attended a state building conference last weekend and an economist said the nation is a long way away from a recession.
Peck and Frost said the psychological effect will be good for the economy. “It helps that somebody is out there doing something,” he said. “It may soften the blow, or make people feel things are better,” said Frost.
Keenan said the checks should even stimulate the housing market, especially the proposal to raise the federal level on housing loans. (See related story)
“I think it's a good package the way it is,” said Keenan, adding that America is a consumer-based economy and anything that puts more money in the hands of consumers is positive.
Leroy Trippel, vice president of Valley Business Bank in Tulare, agreed anything can help the economy “I would say they'll (consumers) pay down debt. Use it for a number of things. If they go out and spend it, that will be a boost to the economy. If they go out and eat, no matter wherever they go, it will help,” he said.
Trippel's only caution, “Somebody's going to have to pay those income taxes to foot the bill.”
Gov. Arnold Schwarzenegger praised the efforts to stimulate
the economy.
“No issue is of greater importance to California's economy than
raising credit for our housing market. That's why I am pleased that
the President and House leaders raised the limit on federal home mortgage
loans. This will help families at risk of foreclosure refinance into
more secure government loans. In addition, the higher limits will help
put the dream of homeownership into reach for more low and moderate
income Californians.
“I also support the immediate tax relief, which has proven to be an effective way to stimulate our economy and to provide much needed assistance to California's working families.”
Paul Saldana, president of the Tulare County Economic Development Corporation, said he felt all proposals to jumpstart the economy are positive, even Gov. Arnold Schwarzenegger's order to spend $300 million in state bond money on public works projects.
Two weeks ago, the governor instructed agency directors and department heads to immediately work with the Legislature to speed the release of $29 billion in unallocated funds from the 2006 infrastructure bonds, so more Californians can get back to work.
“Speeding up construction of roads, schools and levee repairs will help our economy continue to grow and keep more people working,” said the governor. "As one of the first actions, I have instructed Finance Director Mike Genest to use his authority in the current budget act to release $300 million in funding for roads, highways and corridor mobility improvements. The Department of Water Resources will also begin early environmental work and mitigation to allow $200 million of already allocated levee projects to move quicker.”
Saldana said many of those who can find work on those projects are those who have lost their jobs because of the slowdown in housing construction.
Could Boost Real Estate Market
“I think it will be phenomenal,” said Greg Sherman, certified mortgage planner with Country Club Mortgage in Visalia.
“It would be great,” agrees Karen Clark-Osborne of Century 21 Jordan Link & Co. in Visalia. “It would be very beneficial for buyers, and also for people who want to refinance their house. Higher limits would allow them to refinance when they couldn't before. It should open up the market quite a bit.”
Clark-Osborne estimates that one-third to one-half of all homes in Visalia are over the current FHA limit of $247,000. The new FHA limit would include a significant increase in the area, perhaps to over $600,000.
“Right now, the word we're getting, it's confusing as to what our limit will be,” said Sherman, adding that it wasn't clear whether the formula used to determine the local FHA loan limits would be based on the median prices of the local market or all of California.
Either way, the new limit increase should enable many buyers to refinance their homes, even those who have subprime loans. Sherman said that some subprime borrowers currently have loans which have ballooned to 9.3%.
“At some point, he loses his house,” he said, adding that “if it's just a rate and term refinance,” under the proposed FHA limits, that customer could instead be paying less than 6%.
FHA loans require a smaller down payment and allow for a lower credit score than conventional loans. If the same economic recovery package passed by the House is passed by the Senate, there will be a tremendous demand for refinancing.
“No issue is of greater importance to California's economy than raising credit for our housing market,” said Gov. Arnold Schwarzenegger. “That's why I am pleased that the President and House leaders raised the limit on federal home mortgage loans.
This will help families at risk of foreclosure refinance into more secure government loans. In addition, the higher limits will help put the dream of homeownership into reach for more low and moderate income Californians.”
Builders also support the real estate provisions of the economic recovery plan.
“It looks good to me,” said Robert Keenan, executive officer of the Home Builders Association of Tulare & Kings Counties. “It should stimulate the housing market. It is good to see the state and federal governments recognize the fact that the housing industry fuels the economy.”
California Building Industry Association President and CEO Robert Rivinius believes congressional action to increase the so-called “conforming loan limits” – the maximum value of a loan backed by federal guarantees – is long overdue and comes at just the right time.
“For the past decade, the housing industry has been the foundation of California's economic growth, and for the past two years, the decline in new-home sales and construction has been a major factor in the growing state and local government budget crisis,” he said. “CBIA and its sister organization, the National Association of Home Builders (NAHB), have been working hard to persuade Congress to raise the loan limits, which would help countless families avoid foreclosure, restore stability to the housing market, and promote increased construction.”
“Raising the loan limits to $625,000, as advocated by CBIA, NAHB and other state and national housing advocates, would be one of the quickest ways Congress could stimulate the economy,” Rivinius continued. “According to the National Association of Realtors, doing so would generate 350,000 additional home sales nationwide and produce $42 billion in economic activity.”
The National Association of Realtors also expressed its support for the bipartisan economic stimulus package that includes important housing provisions.
“NAR has been actively advocating for many months FHA reform and increasing the conforming loan limits for Fannie Mae and Freddie Mac,” said NAR President Richard F. Gaylord. “The stimulus package announced today is a positive step toward strengthening the housing market and our economy. The increase in loan limits should provide liquidity to the mortgage market in all parts of the country allowing qualified homebuyers who may have been on the sidelines to enter the market.
“In high-cost states, many home buyers with good credit could save $3,000 to $5,000 per year by not being forced into the current jumbo mortgage market,” he continued. “Such a move would stimulate home sales and help stem the rise in foreclosures, reducing the number of foreclosures by as much as 210,000.”
What's New
Tulare County Association of Governments (TCAG) voted this week on three key local projects. Deputy Director Ted Smalley says the board voted to fund the widening of SR 216 (Houston Ave.) east to Lovers Lane to McAuliff to four lanes in front of the Golden West campus with construction set for 2011. Secondly, they approved environmental work on Betty Drive interchange on 99 that will move directly into right-of-way acquisition to build a new interchange in coming years. Lastly, big news for commuters – it asked for state approval for $32 million in special funds to build out Spruce Ave. to four lanes between Hwy. 137 to 198. The state CTC is set to make a decision in May.
Downtown Visalia will get a new sushi restaurant – Akamura at 120 Main St. – the former New York Deli location. The eatery expects to open in April. The place is owned by Hiromi Sano who has 40 years plus as a sushi chef. The place was leased through Burr Commercial.
Visalia area farmer Dick Shannon and family have donated $100,000 to Ivanhoe School toward a new library. “They told us $100,000 would enable them to get a matching grant,” says grandson Eric Shannon, who attended Ivanhoe School in the 1970s. The family's donation comes after hearing from Laurie Ishom about the after-school program, Pro-Youth/Heart, and the challenges for the school in a largely low income community. “Maybe we can get some of the kids off the streets and connecting to literacy,” hopes Eric. The school has books “but they had no place to put them.” Now a portable building will be brought in enabling kids to access the new library this coming school year.
Budweiser Clydesdales will strut their stuff at the World Ag Expo Feb. 12-14. The eight-horse hitch will be at the Expo grounds at noon each day. The horses have been a symbol of the brewmaker since 1933. The big horses were originally brought to the U.S. by Canadians of Scottish descent.
How safe do we feel? Now that the Visalia crime rate went down in 2007, Visalia City Council Member (now retired sheriff) Don Landers says he is feeling only so-so. “The day the mayor and police chief can walk out of a Downtown Visalia restaurant after eating dinner and tell their wives to walk to the northside precinct station (on NE Third) unescorted at 10 p.m. at night – that will be the day I feel Visalia is a safe place.”
Psst. Wanna buy a hot stock? With our big trade show, World Ag Expo, just around the corner, you might be surprised that the one stock type that continues to go up is farm machinery makers like Deere and Caterpillar as well as ag companies like Monsanto and the fertilizer firm Potash. Also, the ag engine maker Cummins. U.S. farmers are doing well for a change and are in the mood to buy, even though the California farm economy may be somewhat cooler than much of the rest of the U.S.
Buoyed by all that new Starbucks business – International Paper has filed plans for five more big resin tanks that sit out back of its Visalia industrial park cup manufacturing plant in Visalia to add to the three resin tanks it already has. The permit to build the tanks will go to the city planning commission Feb. 11.
Because of the recent storms, California Water Service Company is putting work along Mooney Blvd. on hold. The company completed the final service line tie-in on the third phase of the main line replacement project under Mooney Boulevard and has reconnected one fire protection service and removed several old fire hydrants between Ashland Avenue to about 500 feet north of Walnut Avenue. The work is in conjunction with the widening of Mooney Blvd from Packwood Creek to Noble. CalWater told Caltrans that due to the weather and safety concerns for both workers and motorists, it was temporarily putting the project on hold. CalWater hopes to resume construction in six to eight weeks, weather permitting. Caltrans plans to begin work on the widening project in June.
The small farming community of Arvin in Kern County is the recipient of more than a half-million dollars in funding from the San Joaquin Valley Air Pollution Control District to switch out municipal fleet vehicles for cleaner models. In an agreement approved by the Arvin City Council last week, the Air District awarded Arvin $546,700 because its geography and location in the Valley make it the most challenging place in the air basin to reach attainment for health-based federal air-pollution standards -- specifically for ozone (smog). Arvin is also the initial target of a new Air District program to replace gross-polluting cars with newer, cleaner models.
By Steve Pastis
Visalia - Visalia attorney Gary M. Johnson, a resident of Tulare, has been appointed to a judgeship in the Tulare County Superior Court. Gov. Arnold Schwarzenegger made the announcement last week. The appointment fills the vacancy created by the retirement of Judge Ronald Couillard.
“I don't know what type of assignment I'll receive initially,” Johnson said. “None of those details have been sorted out yet. I'll just fill whatever needs they have at this point.”
Johnson was born in Merced and moved to Tulare when he was 4 years old. He went to high school in Tulare and attended College of the Sequoias for two years. He graduated from UC Davis and received his law degree from the McGeorge School of Law, University of Pacific's law school in Sacramento.
Johnson originally started his college education with the goal of becoming a doctor.
“While doing my undergrad, I figured out that medicine was not what I wanted to do for my career,” he said. “I enjoy the law and advocating so I just naturally gravitated to that.”
Part of what attracted Johnson to law was an interest in water issues, after learning how important water is to the Central Valley.
“I saw that as a way to perhaps get into water
law, those types of issues,” he said. “When I was in law
school, I actually clerked for the Association of California Water
Agencies. I took the water law courses that were given at McGeorge
School of Law. My practice never really focused on that, but it was
something that always interested me.”
Johnson was sworn in as an attorney on Dec. 1, 1995 and started practicing
with Kloster, Ruddell, Hornburg, Cochran, Stanton & Smith in Visalia.
“I had clerked with them during the summers when I was in law school and they offered me a position upon graduating and kept me on as an attorney when I passed the bar,” he said.
From 1999 to 2004, Johnson was an attorney with Fitzgerald, Aguilar, Sherwood, Durante & Johnson. Since then, he has been with Sherwood & Johnson.
Johnson described the appointment process as “pretty demanding.” He was asked what he believed were the reasons he was selected for the bench. He responded by first explaining that the process includes gathering written input from judges and other attorneys, both positive and negative.
“There were really only three negatives that were levied against me: 'You don't have a lot of criminal experience,' which was true, 'You don't have a lot of family law experience,' which was true, and 'You don't have a lot of jury trial experience,' which was true,” he said. “There are reasons for that. I had chosen not to practice in those two areas and when you are a civil litigator and do a lot of transactional and probate work like I do, you don't end up in jury trial a whole heck of a lot.
“I took those not as negatives, but as things that were being pointed out to me that I could improve upon, so from the time of my JNE (Judicial Nominations and Evaluations Commission) interview, I sat as a pro-tem or a temporary judge 12 or 13 times – in drug court, in traffic court, in small claims court – to gain experience in criminal areas and more trial experience,” he said. “Frankly, I think that initially the governor's office or the JNE Commission may have seen somebody who might need a little more seasoning and then saw what I did from that point forward and said, 'This is obviously somebody who is committed to this. They're willing to do what it takes to gain the experience to be an effective judge.' I think that may have been why I got the call.”
Johnson, who is 40, was asked if he was young for a superior court judge. He responded that he didn't see his age as a negative.
“What I see that as is somebody who will serve on the bench for 25 to 30 years and provide continuity and consistency on the bench and long term leadership down the road, as opposed to someone who may only serve 10 or 15 years,” he said.
Johnson is a member of the board of Public Utilities for the City of Tulare, the group that sets the sewer rates and oversees waste water facilities, sewage, drainage and trash.
“I wanted to get involved in the community,” he explained. “As a result of being on that board, I was put on the board for the Consolidated Waste Management Authority which is a countywide position. Frankly, one of us from the City of Tulare had to be a representative and I'm the one who works in Visalia. There's not much more to it than 'You're already over there, you be our representative.'”
He will have to leave both positions because of a time conflict. The meetings are Thursday afternoons.
Johnson is also the new president of the board of Family Services, but because the organization contracts with the court, he will have to resign that position also.
He was asked what issues he expected the Tulare County Superior Court to deal with in coming years.
“I know that issues are the thing that most people want to focus on, but for the most part, when you're a bench officer, you're not making the laws,” he replied. “If you are, then you aren't doing what you're supposed to do. You're supposed to carry out the laws. So I do not have any intention of legislating from the bench. I'm going to carry out whatever law is put in front of me.”
Johnson's appointment has been praised by those who have worked with him.
“I'm very, very happy,” said Ron Quinn, who serves with him on the Tulare Board of Public Utilities and has known the Johnson family for more than 30 years. “I'm happy for him and I'm happy for Tulare County because I think he'll make a wonderful judge.”
Quinn, who described Johnson as “level-headed, conscientious and very knowledgeable,” added, “The sad part of is I'm going to lose one of the best attorneys I've ever worked with.”
Tulare Public Works Director Lew Nelson praised Johnson's work on the Public Utilities Board. He said that Johnson is a conscientious member who always studies the information and always asks good questions.
“I hope we can replace him with someone just like him,” he said.
Bank of the Sierra Not for Sale, Says Prez
Porterville - Valley banks reported their earnings in recent days. Porterville-based Bank of the Sierra – the largest of the locally-originated community banks – reported record earnings of $21 million, up 10% from the year before.
“Last year was one of the best years in all the 30 years we've run the bank,” says President Jim Holly, who is not predicting 2008 will likely be as kind.
Mr. Holly put their success down to the “high quality team we've been able to assemble here,” and the expansion they've undertaken should make it easier to find Bank of the Sierra branches wherever you live in the Central Valley.
“We call it increasing our market density,” says Holly, who notes that the bank is adding a fourth branch in Bakersfield, leasing a new Fresno building for a new branch, acquired a site in Selma for a bank location and has a letter of intent for a second site in Tulare.
Altogether, Bank of the Sierra is looking at 15 new bank branches in their service area in coming years within Fresno, Kings, Tulare and Kern counties, predicts Holly.
Holly says rumors swirling around that look at the growth of the company and add rumbles that the bank is likely to be sold soon to a bigger player remain unfounded. “We'd like to put all that talk to bed,” states Holly, adding “the bank is not for sale.”
The news comes from the bank's new “five year plan” the bank directors recently adopted. It is a strategy for continued growth. Bank of the Sierra now has some $927 million in assets at 21 bank locations.
In Tulare County, where it has nine branches, the bank ranks second in market share (17.7%) with about two-thirds of the bank's total assets coming from this county – still clearly its home base.
As to what happens with the succession plan at the bank for Mr. Holly, the founder, he says his “team includes a talented bull pen but as of right now no crown prince.” He says they are working to add new directors to their board from other Valley jurisdictions including Visalia so that not all of the board is from the Porterville area.
Also, there is a new female director at the bank. CPA Linda Searcy has joined the boys – a part of a trend to widen and deepen the management of the Porterville-based bank.
Ask about 2008 and Mr. Holly is quick to suggest this new year “is likely going to be a challenge,” He expects the market uncertainty will improve by the Feds intervention as well as a congressional stimulus package. That could help spending here too. In the Valley, Holly believes there is plenty of upside to our economy noting that we will continue to be the warehousing area for large cities on the coast and will have continued strength in ag. Tulare County has the widest diversity of farm commodities anywhere. With the cheaper dollar our exports should continue to rise, says Holly, who is a gentleman farmer himself.
Fresh & Easy Market to Open in Visalia
By Steve Pastis
Visalia - The first Fresh & Easy Neighborhood Market in Tulare County could be open in the Caldwell/Court development in Visalia by the end of the year, according to Michael J. Singelyn, senior director of development for the Highland Development Company.
“We hope to break ground in August,” he said, adding that the conditional use permits for the development have been submitted. Once everything is approved, the construction on the center will take between four and six months.
Fresh & Easy Neighborhood Markets is a chain of trendy, upscale markets where consumers go to pick up a few quality food items quickly. Shoppers who have visited the new stores in Southern California see them as a cross between a Trader Joe's and a supermarket.
The Fresh & Easy Market will occupy a 13,969-square-foot building – about 20% the size of a large supermarket – in the Caldwell/Court center. The location is the first of many that the company hopes to bring to the area.
“We're looking all over the Central Valley,” said Brendan Wonnacott, spokesperson for Fresh & Easy. “A rather large property development team has looked at sites throughout the Valley, but it's still too early to confirm individual sites.”
Fresh & Easy will make an announcement about opening locations in the Bay Area this week and expects to make a similar announcement in Sacramento in February. Wonnacott said that the company would make announcements about the Central Valley over the coming weeks and months.
Although Wonnacott would not give information about what locations in Tulare and Kings counties have been scouted as potential Fresh & Easy locations, a source at the company indicated that the list includes Tulare, Porterville and Hanford – at least.
“We're pursuing stores all over, in different types of neighborhoods,” Wonnacott said. “We really do want to serve every neighborhood.”
Fresh & Easy is headquartered in Chula Vista. Its U.K.-based parent company, Tesco, is the third largest retail company in the world. Tesco has a five-year plan to establish its network of Fresh & Easy stores in the United States – at an estimated cost of $2 billion.
When Fresh & Easy Markets open in the Central Valley, they will offer good jobs to local communities. Following a trend set by Trader Joe's, entry-level positions will start at a higher-than-minimum-wage level of $10 per hour in California and include a quarterly bonus of up to 10%.
Each Fresh & Easy store employs approximately 20 to 30 people. All store employees will become eligible for medical, prescription drugs, dental and vision coverage (with a qualifying period of 90 days), with Fresh & Easy paying at least 75% of the cost. Employees will also be offered a 401(k) retirement plan, with company match.
Caltrans Cuts Down Trees along Highway 198
by Steve Pastis
Hanford - Caltrans is currently cutting down a total of 133 trees, mainly black walnut, along the north side of a 10-mile stretch of Highway 198, between Highway 99 and State Route 43 in Hanford. The work is being done as two separate projects, one in Kings County and the other in Tulare County.
Both projects are for the same purpose, to prepare for the future Hanford Expressway Widening Project, which will create a second lane in both directions of Highway 198 between Hanford and Visalia where only one currently exists.
“The Department of Fish and Game wanted us to take them down,” said Gloria Samaniego, Caltrans District 6 public information officer. “Once there is active nesting, we're not allowed to take down the trees.”
The tree cutting is being done almost a year in advance “to prevent birds from nesting so when the project starts, there will be no delay,” Samaniego added.
“Caltrans applied their safety guidelines to the project,” added Ted Smalley, deputy director of the Tulare County Association of Governments, which along with Kings County, advocated for the funding of the project. “Caltrans was very diligent. The safety of citizens came first.”
Smalley explained that a “clear zone” needed to be established between the trees and the road and that evidence of cars hitting the trees can still be seen on the trees.
The tree cutting projects started Jan. 16 and should be completed by Feb. 14, according to Samaniego.
“The time frame includes days that might not be worked because of weather,” she added.
Caltrans plans to go to bid on the widening project in January 2009. Construction should begin in summer 2009 and take between 24 and 30 months to complete, according to Samaniego.
“We'll be planting 500 trees on the north side when the project is completed,” she said, adding that the trees will be oak.
Caltrans reports that one of the companies contracted to cut down trees is working at night. This is resulting in a lane closure along 198 in Kings County, Sunday through Friday, 7 p.m. to 6 a.m. This closure is expected to continue through Feb. 14.
Waterworks Upgrades to Protect
Against Future Flood Damage
$3 Million Improvements Planned for McKay's Point
Tulare County - Drought fears can turn to flood worries in a hurry in Tulare County, or all of California for that matter, as recent storms can attest to across the state.
Not wanting to wait too much longer for the next big one, the Kaweah Delta Water Conservation District (KDWCD), along with the Kaweah and St. Johns Water District, plans to make the first major upgrade to the waterworks facilities at McKay's Point west of Woodlake, where the Kaweah River and St. Johns River part.
The point east of Visalia helps fan out the Kaweah River both to the north and south of Visalia, spreading water right over a large area.
There, a control structure last upgraded in the early 1960s, must be cleared by hand when debris from a flood event clogs the opening of the diversion structure, says KDWCD watermaster Bruce George. “We want to build a concrete structure that will enable us to get a backhoe or heavy equipment in to clear the debris if we get another flood,” says George. The cost to build the improvement will likely be around $3 million. George says the last big flooding in the area came in 1997 – before the dam was raised at Terminus Reservoir, a few miles upstream.
You can never tell what will come floating down the river in a flood, anything from barnyard animals, fences to pick-ups that require mechanical means to dislodge them from the waterworks. Older Visalians tell the story of how they heard the floodwater heading into town before they saw the deluge, led by a parade of bellowing cows and a chorus of other animals heading to town on a wave of water.
Besides the main forks of the Kaweah, several uncontrolled tributaries of the Kaweah flow into the river just up from McKay's Point as well.
Back then, a January Pineapple Express melted a good portion of the snowpack creating a flash flood event with Lake Kaweah taking on 40% of the total capacity in a 24-hour period and rising five feet an hour. Damage all over the Valley added up to millions and widespread flooding around the county was felt.
George says having McKay's Point in good order will help preserve the levee system around the Kaweah that FEMA has expressed some concern over. The agency wants to increase the flood zones in the area, forcing many to pay higher insurance on their property.
George says they plan to construct the improvements in August 2009 in time for the winter rainy season.
Council Lays Out Busy, but Cautious 2008 Agenda
By Rick Elkins
Visalia - Growing pains were clearly evident during the Visalia City Council's 2008 strategic planning retreat last week.
Growth, gangs, code enforcement, fiscal health and planning were the hot topics of discussion. After more than 15 hours of discussion, some goals became clear, including updating the city's general plan, remaining fiscally strong, continuing efforts to suppress gangs in the city and to further work to clean up neighborhoods through code enforcement.
There were scores of other projects that came out of the meeting, including contining development of the East Downtown Civic Center, further developing the Cool/Green City concept, refinancing the city's pension plan, improving the airport, preserving downtown, finishing the sports park, increasing regional tourism and improving traffic circulation.
“We are facing some tough times locally. I expect the city's sales tax to be flat for the first time in many years,” City Manager Steve Salomon told the council members at the outset of the two-day meeting. He said, in addition, development fees may be down as construction activity drops off. “It's a time to be careful.”
At the forefront of most discussions was containing spending, from updating the city's general plan to ideas on how to further enhance the image of the city.
General Plan Update
It has been almost 20 years since the city last undertook the task of updating its general plan, a 3-5 year process that lays out how the city will grow.
“The general plan is the foundation for a house,” explained Assistant City Manager Mike Olmos. He said the current plan was adopted in 1991 and while it was designed as a 30-year plan, much has happened to require the city to update it now.
“We are 16-17 years in the plan. A lot has changed. We have smart growth, planning and land use issues. The plan is becoming out of date,” he told the council.
The city has a couple of options. One would be to tweak the current plan, the other to do a full-blown update. Olmos said the time and cost doing the tweak would be almost as much as doing a new plan.
The new plan will direct growth in the city into the 165,000 population range. Olmos noted that there is pressure now to grow into areas that are not designated for anything other than urban reserve.
The general plan update will generate a lot of discussion, including the Highway 198 scenic corridor, growth across the St. John's River, growth to the south and more. The council did agree to hold a study session on the Highway 198 scenic corridor in the near future, although Councilmembers Don Landers and Bob Link both objected to more discussion on the corridor, saying it has been discussed for years and nothing has come of those discussions.
Councilmembers Greg Collins, Amy Shuklian and Mayor
Jesus Gamboa all supported at least revisiting the issue.
Council members were concerned with the $1 million price tag put on
the general plan process and Olmos said he would come back with a
more firm estimate of the cost. Collins suggested the council consider
putting a hold on all new annexations until the plan is completed,
but no decision was made.
“Updating our general plan will be a vestibule of change. It is a great opportunity to set the table for the next 15-20 years of opportunity and innovation,” said Collins.
Gang Suppression
Police Chief Bob Carden laid out 11 programs he would like to see be undertaken in the next 12 months to combat the growth of gangs.
He first emphasized the problem which saw the city have 12 homicides in 2007, half of those gang-related, and a level of gang violence that peaked in the summer. Saying that the average age of those killed was just 19, the chief commented, “We have kids killing kids.” He also said there were 78 shootings at inhabited dwellings – “Every one of those was a potential homicide.”
Foremost on the chief's “To do” list is a strategic plan that would tie it all together. “In order to address this, we have to work together and we have to a have a sustained response.” He said the Gang Task Force that is meeting weekly is working on that strategic plan.
Other plans:
Neighborhood Youth Counselors. Using ex-gang members,
Carden said, “They're able to go into neighborhoods where you
and I can't go.” The city is seeking a $1 million grant to begin
the program.
Truancy Crackdown. The city would work with the schools to keep kids in school. “If they're not in school, they're up to no good.”
Code Enforcement. This is another tool to clean up gang hangouts and clean up blighted areas of the city that contribute to gang activities.
Jobs for Youth. This effort has already begun through Proteus and the Wittman Center. It is designed to give at-risk youths jobs.
Faith-base Approach. Carden said this is a key one and there will be a faith-based summit in the spring. “The response has been very positive,” he said of the churches, noting that through the church is one way out for a gang member.
Tattoo Removal. Carden hopes to find a program to offer the removal of gang tattoos for free or at reduced costs.
Family Intervention. This program, explained the chief, would be to work with families where one of their loved ones is sent to prison to keep other members from falling into the same trap.
Injunction. He said the County DA is working on the program, similar to what the City of Fresno has done, to curb gang activities.
Auto Theft Crackdown. The city is partnering with the California Highway Patrol on a crackdown of auto theft. He said the city would provide an officer and sergeant and the program could begin within a couple of months.
Gang Watch. This is a unique program to educate people in neighborhoods about gangs, how to read signs of gang affiliation. Carden said every officer has been trained and they held their first public meeting this month.
Council members were encouraged as to the progress already made. Gamboa suggested the city look into a gun buy-back program and Landers hoped the city could get more use of the CHP helicopter.
“We need to take little steps. That's what we're going to have to do to out of this,” said the chief, adding that they need to focus on youth ages 9-13 to keep them out of gangs. A youth gang summit will be held early this year.
Enhancing Neighborhoods
City Code Enforcement chief Tim Burns laid out for the council efforts to preserve and clean up neighborhoods throughout the city.
He detailed many areas of effort and plans for more effort this year, including a residential rental inspection program; historic home down payment assistance program and property management educational seminars to inform property owners of how they should maintain their properties.
Burns also pointed out that in 2007 the code enforcement officers resolved 642 complaints, removed 3,427 un-permitted signs and posted 79 residential properties as unsafe to occupy.
“This whole thing has come a long ways in past few years,” praised Salomon. Collins said the community is measured by how it looks, “that's why this is a very important program.”
As to the issue of copper thefts, Burns and Carden said the city is taking a very pro-active approach such as inspections at recycle plants and more.
Fiscal Health
City Finance Director Eric Frost said while the city is in good financial shape, it is not known what direction the state Legislature will take in solving the state's fiscal mess. He said the state could borrow up to 8 percent of the city's money, roughly $1.9 million and that could grow to $2.8 million.
“In developing next year's budget, caution and restraint are needed because Visalia must meet its own revenue challenge as well as potentially being subject to state take-aways. As a result, a good budget this year might be to maintain the current service levels,” Frost wrote in his handout for the council.
He had several proposals for the council.
· A Pension Obligation Bond offering, to basically refinance
the city's pension fund, that could save the city $485,000 a year.
· Look at transportation financing alternatives for advancing
Measure R and other road projects.
· A Storm Drain Rate ballot measure. Frost explained that any
increase in the storm drain fee would have to go before a vote of
the affected property owners. The fee has not been raised since 2004-05.
Frost also suggested the city develop revenue alternatives in order to maintain the current budget and identify any cost savings. Collins suggested the city look at a park maintenance fee ballot measure. A youth gang summit will be held early this year.
Many of the items discussed during the strategic planning will be brought back to the council to discuss at length and for final decisions.
The above stories are the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher.
January 30, 2008
