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Chamber Names Interim CEO

Visalia- Stanley S. Simpson, chairman emeritus of Buckman-Mitchell, Inc., has volunteered to serve as interim chief executive officer for the Visalia Chamber of Commerce. His term began on Monday and will continue until a permanent CEO is hired, estimated at 90 days.

A fourth-generation Visalian, Simpson has been a board member for the past year, and a strong supporter of the Visalia Chamber of Commerce for many years, explained board Chair Nancy Lockwood. His grandfather, C.T. Buckman, was the first Man of the Year to be honored by the chamber (in 1952). Simpson was honored with the award in 1995.

“Stan's role will be to provide a bridge for the next 90 days or so until we hire our new CEO, and to support incoming chair Connie Kautz,” Lockwood explained. “He will be available to help market the chamber, help with fundraising and support Connie in being the public 'face' for the chamber.

“From our perspective, this has always been a team effort between the board chair and the CEO,” she said. “There are so many public opportunities that one person can't be everywhere.”

Simpson's duties do not include decision-making, speaking on behalf of the chamber or incurring expenses, however.
“He's an honorary CEO,” explained Lockwood. “It's an honorary position, not an administrative or executive one.”
The board is in the process of searching for a new CEO to replace Mike Cully, who took a chamber CEO position in the San Diego area last month.

“Several of us felt in the interim if we could find someone well known and respected in the business community, it would lend a face to the chamber so we wouldn't lose contact with members and other entities,” Simpson explained. He said that he offered his services to the chamber for $1.

“The board is very excited about his offer because he brings great connections and ideas. This will be the best $1 we've ever spent!” said Lockwood, who didn't immediately follow up on the offer. “The first time he said it, I thought he was kidding,” she said.

“I love this community, as many others do,” Simpson said. “This chamber, which began as the Visalia Board of Trade 109 years ago, has always met the challenges of promoting business and trade. It is vital that we serve as the face of business in the community. Business people are often the first welcoming arm to visitors and new residents. We are the central meeting place and spokespeople for community affairs, and we lead the way in lobbying, political decision-making and more. There is strength in numbers. No one does it on their own.”

Simpson is well aware that the chamber currently faces some challenges.

“The last three or four years, the chamber has struggled financially,” he said, adding that it costs about $100,000 a year for the chamber to maintain its building. “If we didn't have the building, we would net $50,000 a year.”
Lockwood and Kautz, who heads the committee looking into ways to lessen the financial burden of the building, were asked if those numbers make selling the building an attractive option. They both acknowledged that anywhere the chamber is located would require some expenses.

“We are looking at options,” said Kautz. “The capital campaign is something we are going to look at.”

“If we do a capital campaign, we have three options,” Lockwood said. She listed those options as: hiring the consultant the chamber has been working with, Jerry Bartels of Fremont Development Group, to conduct the campaign; having the chamber run the campaign; or finding another consultant to do it.”

A decision is expected by July 1, according to Kautz. In the meantime, the chamber seems to be getting a better handle on its finances. “Expenses are not accelerating,” Lockwood said.

“We have cut staff time,” Kautz said. “The staff all took 10 percent cuts, some of them more.”

Six business and educational leaders have joined the chamber's board of directors. The incoming board members include: Bill Scroggins, Don Goodyear, Warren Gubler, Richard Nunes, Tony Lewis and Samantha Remage.
The mission of the Visalia Chamber of Commerce is to support business and be an advocate for business. The chamber now has about 1,100 members, but there are approximately 6,000 business licenses issued in Visalia, according to Simpson. He said that many are either on hold, are “mom-and-pop” shops or operated out of houses, but that between half and two thirds of those with business licenses are “viable” candidates to join the chamber.
For more information about the Visalia Chamber of Commerce, call 734-5876 or board Lockwood of The Lockwood Agency at 733-3737.


Dry Year Prompts Local Water Concerns

By Rick Elkins

Visalia - For the first time, water levels in city wells have dropped below 100 feet, prompting city officials to look at innovative ways to conserve water use.

Phil Mirwald, manager of Cal Water, said that while the level of wells is not dropping any faster than normal, the levels are now probably at historically low levels. He said on average, the depth of water under the city is 102 feet. That is eight feet deeper than last year and 12 feet deeper than the underground water depth in 2003.

“We're OK. We're not in a state of panic, but it's good for people to know this situation is serious,” said Mirwald.
City officials had already begun exploring options, both how to conserve water and how to educate the public on the need to conserve, before City Councilman Greg Collins brought up the topic at a recent council meeting. He reiterated his concerns Monday.

He said he looks at the water issue similar to the gas issue. People need to look at ways to conserve water as they are now doing with gas. And, he said, it is not going to be a topic he will let rest until water conservation improves.
The city has been at Stage 3 water conservation for some time. Stage 3 imposes the strictest water saving measures, but stops short of forcing people not to water their yards.

“We may look at increasing enforcement,” said Leslie Caviglia, deputy city manager, explaining they might look at issuing more citations for violating the city watering policy that calls for watering on certain days, depending on addresses. Right now, a resident is given four warning before issued a citation.
Caviglia and Shawn Ogletree, Natural Resource Conservation manager for the city, said educating the public on the need to conserve is the best approach.

“It is truly an education process,” said Caviglia.

Other Options

Ogletree said the city is looking at other ways to cut water usage, both for the city and for residents. One idea is drought-tolerant landscaping. Collins pointed out Monday that on average, residents use 50 percent of their water on landscaping.

Ogletree said a hybrid grass called Buffalo Grass Hybrid is being looked at for city landscaping and to recommend to homeowners. “It requires about a third less water than regular fescue (grass),” he said. Some businesses and homeowners have already planted the grass. Another drought-tolerant turf is UC Verde, developed at UC Davis. It requires less water and less mowing, both desirable in today's world.
Another idea would be adjustments to the city's requirement for open space on developments. “It could be reduced or it can be done differently. It doesn't mean it can't be pretty,” said Caviglia. She and Ogletree said the city will stress drought-tolerant landscaping on projects, similar to what the city has done at both police substations.
The city is also seeking a grant to upgrade the watering system in many of the city's parks, especially to installed timers to better control water usage.

A groundwater model is being finalized for the city that will show “how best to utilize the water we purchase. It will also tell us if we reduce water usage by say 30 percent, what it will do for the groundwater,” said Caviglia.

More Water Meters

“We want to explore, if there is a way, to accelerate the installation of water meters,” said Caviglia. Right now, the city is in the fourth year of a 12-year plan to have all water hookups metered, but basically little progress has been made. All new subdivisions are metered.

Another idea is to help replenish the groundwater supply as much as possible. The city has several ponding basins and recharge basins and just purchased water from the Kaweah Delta Conservation District for water that it will flow down Mill and Packwood creeks. That 1,000 acre feet of water should flow for the next few days at least.
Caviglia said proposals should go before the council in July, adding that one of the quickest things the city can do is drought-tolerant grasses. And she added, “You'll see stepped-up education.”
Collins says he expects to see a multi-faced approach. “I expect it's going to have to be a combination of things,” he said, urging the city to move quickly.


Wacky Weather Wreaks Havoc on Citrus Crop

By Rick Elkins

San Joaquin Valley - Cold, wind, hot and then cold again. It's enough to confuse any crops, but navel oranges seemed to have been hit hardest by one of the more unusual springs in recent memory.

The wacky weather could mean a navel orange crop this fall that is about half of normal. That would come on the heels of one of the largest crops ever.

“It's light. I'm hearing 45 percent less than normal,” said Jody Wollenman of Monte Vista Ranches in the Lindsay area. “It's climatic induced,” he said.

Most damaging, said Wollenman and California Citrus Mutual President Joel Nelsen, was the fluctuation of hot and cold temperatures over a short period. Add to that a late crop this year, heavy bloom and a very windy spring, and new fruit hardly had a chance.

“It's way too early to tell,” said Nelsen. However, he said indications are it looks like it will be a light crop in the fall.
This year's crop was so large there are still some navel oranges being harvested. When the citrus bloom came in April, many trees still had fruit and the bloom was heavy. Then, temperatures that dipped as low as 27 degrees in some areas hit on April 21. A month later, the first 100-degree days hit. It all added stress to the trees.

“It was nice and cool, then boom. We got into the 90s. There was nothing gradual. Then bam, it was cool again. Trees like everything gradual,” said Wollenman.

Nelsen said it will not be until late in the summer before they know the exact size of the crop. He said that is when the first crop estimate comes out. “There's a lot of uncertainty right now.”

The result is a doubled-edge sword. For those growers who still have a good crop, it will mean higher prices for their fruit and probably reduced picking costs. For those who have lost most of their crop – and Wollenman said that appears to be the case in some areas – then it could mean disaster. It will also impact pickers and packing house workers. Less fruit means less work.

“It's definitely a year of the have and the have-nots,” said Wollenman.


New Lindsay High School Planned
District Considers Major Changes

By Steve Pastis

Tulare County - The final approval of the plans for a new high school in Lindsay is expected in about six weeks. The school, which will be located next to the existing Lindsay High School at Tulare Road and Strathmore Avenue, is estimated to cost about $32 million.

“The plans are at the Office of Public School Construction and are basically at the final review,” said Jihad Hemaidan, Lindsay Unified School District business manager, adding that this part of the process should be completed by the middle of summer.

The plans have already been approved by the California Department of Education, which focuses on a proposed school's safety and education components, and the Department of State Architecture, which looks at the safety of the design and structural components.

Hemaidan estimated that the first phase of the project, which would include constructing an administration building, a cafeteria and about 40 classrooms, would be about $22 million. A second phase would include a library and gymnasium and cost about $10 million.

Hemaidan said that the current schedule is for the project to go out to bid in November and construction to begin in January or February. Construction is expected to take about two years, which would allow for the new high school to open in time for the 2011-12 school year, possibly even by the middle of the 2010-11 school year.
Current plans call for the old high school to become the new junior high school. This would allow the two schools to share athletic facilities.

While all the planning and construction on the school are underway, however, the district is considering whether or not it will continue to have a junior high. Parents, teachers and school administrators are discussing a proposal to change the district from a kindergarten through sixth grade system to kindergarten through eighth grade, which would eliminate Steve Garvey Junior High School.

“About five years ago, some research began surfacing about academic achievement,” said LUSD Superintendent Janet Kliegl. “The K-8 configuration was studied and academic achievement was greater for a student who went to a K-8.”
She said that parents are supportive of the idea, although some like the traditional junior high.

“We looked at the other K-8 schools in the county,” Kliegl said. “We invited parents to look at other K-8 schools and discuss the pros and cons of going to a K-8.”

She acknowledged that the proposed change has advantages as well as disadvantages. “One of the disadvantages of going K-8 is that you don't have a shop class at every school site,” Kliegl said. She explained that one advantage of the K-8 system is in athletics where intramural teams would allow more students to play.

“The city sees it as a real advantage because they would like to see more kids involved,” she said, adding that the idea is seen as a disadvantage by others because by involving a larger group of students, you lower the level of competition.
Kliegl was asked how a K-8 system would affect the annual school budget.

“It's probably revenue-neutral because it would depend on the extras you want to offer,” she said, but added that there would be some initial expenses, such as constructing a kindergarten-elementary playground at the current junior high.
“There have to be some facility issues addressed,” said Hemaidan. “A school built for K-6 may not be appropriate for K-8.”


Ford in SYNC with New Cell Phone Law

By Rick Elkins

California - Beginning July 1, picking up your cell phone to answer a call while you are driving will be against the law. Ford has come up with an answer.

Ford now offers a state-of-the-art SYNC in-car communications and entertainment system, developed with Microsoft, to California's 29.7 million cell phone subscribers.

SYNC is now available as an option on most Ford models and this fall will be available on the redesigned F-150 pickup, the most popular pickup in America. It is currently available in: Ford Edge, Explorer, Focus, Fusion, Sport Trac, Taurus, Taurus X, Lincoln MKX and MKZ, and Mercury Milan, Mountaineer and Sable.

“It is a very affordable option at $395,” said Adam Robles, with PCG Campbell, a marketing company that is working with Ford. There are no other charges with the system because you are using your current cell phone plan. And, he pointed out, you have only the one cell phone number.

What sets SYNC apart from the On-Star system that has been available on GM models for several years is SYNC can be tied to a person's cell phone and that cell phone billing plan. On-Star requires a new cell phone subscription and bill.

“You set up with the phone. Once you've set it up, you don't even have to take it (cell phone) out of your pocket,” said Robles.

The option comes as California is about to make it illegal to hold and talk on a cell phone while driving. Basically, the law prohibits all drivers from using a handheld wireless telephone while driving. Drivers 18 and older can use a hands-free device, while those younger will be prohibited from speaking on a cell phone, hands-free or otherwise.

SYNC provides consumers the convenience and flexibility to bring digital media players – Apple iPods, Microsoft Zunes and other MP3 players – and Bluetooth-enabled mobile phones into their vehicle and operate the devices via voice commands or with the vehicle's steering wheel or radio controls.

Robles demonstrated the system along with two other representatives of Ford, telling how SYNC allows a person to use their radio or cell phone simply by voice command. “You can do everything with voice or dials on steering wheel,” he explained. You can even receive text messages and have programmed replies if you have the navigation system, he added.

He showed that the system will automatically interrupt music for a call and once you end the call the music resumes. The cars come with a SUB port to plug in iPods and other devices, which then can be operated by voice.
“The point of SYNC is you can do everything hands free,” said Stephanie Proos, also with PCG Campbell.
SYNC, which is comprised of upgradable software, will add new features later this year, including 911 Assist, a feature that will help drivers connect with emergency assistance in the event of an air bag deployment, and a Vehicle Health Report, which drivers can retrieve from the SYNC website. Further information and updates on SYNC can be found at www.syncmyride.com.


County Backs Offer to Buy Rail Lines

By Miles Shuper

Tulare County - Tulare County Supervisors approved an offer of financial assistance that includes an offer to purchase nearly 40 miles of the San Joaquin Valley Railroad line.

The 4-1 vote buys time to ensure that the SJVR won't be able to dismantle the line following a June 6 ruling by the federal Surface Transportation Board allowing the abandonment of a 30.6-mile segment between Strathmore and Jovista. The offer also includes a nine-mile segment linking Exeter to Strathmore for which the STB rejected the SJVR abandonment petition.

The county does not plan to go into the rail business, only serving as to guarantee that funds are available. As of Tuesday, no specific financial offer had been finalized but one will be included in the official offer due by June 16. Based on a percentage of the estimated net salvage, the offer will be at least $1.4 million. Along with Fresno and Kern counties, Tulare County is also considering the potential of buying other portions of the SJVR line to complete what is referred to as the Valley Loop providing service to customers along the line.

In addition, there have been indications that at least one Tulare County-based group has offered to buy SJVR and is waiting for an answer from the rail company which reportedly has received at least a half-dozen inquiries from potential buyers or investors.

Claiming that the cost of operating the two rail segments outstrips revenue, SJVR announced it would sell the rails and ties. The estimated net salvage value of the 30.6-mile segment is $995,574. It requires another $293,000 in maintenance and operations and return. The shorter segment, which the STB didn't approve for abandonment, has a net salvage value of $760,896 and $199,000 maintenance and operation. In its rulings, the STB said the SJVR could resubmit for that abandonment.

Although the June 16 deadline for the OFA (Offer of Financial Assistance) will be met, county officials, including the EDC, the Tulare County Rail Commission, TCAG and county staff, are fine tuning their financial options.

One option being given initial consideration is the use of Measure R transportation funds generated by the voter approved half-cent sales tax. Ted Smalley, executive director of the Tulare County Association of Governments, the agency which oversees Measure R funds, said changes in regulations are being considered, but stressed that no road or highway project already scheduled would be affected.

With Supervisor Phil Cox in opposition, the Supervisors' action allows for the county and other entities to negotiate and also to formulate a financial plan which eventually could involve three counties and their government associations, as well private or public-private entities.

Initial options, briefly outlined by Smalley, include subsidizing existing SJRV operations, forming a shippers association to acquire SJVR interest in line segments with TCAG guarantees and a $1 per year lease to SJVR or other operators, forming a joint authority through TCAG to acquire lines or support a privately funded offer.

Cox cited million dollar commitments to the Mooney Grove museum project, relocation of the county motor pool and other projects in recent months as too risky in the light of budget restraints.

But Supervisor Allen Ishida, who has been a key in fighting SJVR abandonment bids, countered that claim saying, “This is a great opportunity for us to step up,” adding that once a line is ripped out, it would cost $1.6 million per mile to replace.

Supervisor Steve Worthley said the county would be creating “a bridge to make a loan. Tulare County is not going to buy a train line.”


What's New

Patty Rocha, manager of Preferred Outlets of Tulare, says the shopping center has seen a definite spike in the number of foreign visitors over the past two months. “Especially Asian and Germans,” said Rocha. She added the foreign visitors travel with big tour groups out of the Los Angeles area and the Outlet Center is one of their destination stops.

Gottschalks reported an 8.6 percent decrease in same store sales from May of last year. The large retailer said total sales for the four-week period were $42.4 million compared to $46.4 million the year prior. On a year-to-date basis, which consisted of 17 weeks, sales decreased 9.9 percent.

With early leads in a seven-way Porterville City Council race, incumbent Cameron Hamilton and challenger Brian Ward were joined by incumbent Pedro “Pete” Martinez — who had trailed earlier in the race — to claim the three open seats on the council.

There will be two run-off elections for supervisor in Kings County. In District 2, Richard Valley got 44.84 percent of the vote and Terry Kwast got 41.29 percent. With neither getting more than 50 percent, the two will have to run in November. The same is true in the District 5 race where Alene Taylor led with 43.26 percent of the vote. She will be facing Andrew Mattos who got 26.03 percent of the vote.

Union Pacific railroad reportedly has told California officials that it won't share its right-of-way to accommodate a proposed high-speed rail line linking the state's largest cities. A measure on the November ballot would authorize California to sell nearly $10 billion in bonds to help pay for the system. But the Los Angeles Times is reporting that Union Pacific officials recently told the California High Speed Rail Authority that they have safety and operational concerns about running a high-speed passenger train close to slow freight trains.

Grant funding for two Visalia transportation enhancement projects in the amount of $366,000 were recently awarded by Transportation Enhancement Activity (TEA). Using matching funds from Measure R totaling $161,000, the projects will develop two important links to the City of Visalia waterway trail system. The two project sites are: Packwood Creek along County Center from Visalia Parkway to Cameron Avenue; and Packwood Creek in east Visalia, south of Highway 198.

Canadian-based Oppenheimer – a world-wide produce sales firm – will relocate its Visalia office to the former Buckman-Mitchell building on Main St. later this summer. The company will take 6,000 square feet of the space reportedly expanding their staff and office at the same time.

Work began May 30 on a two-week project to replace curbs, gutters and sidewalks pushed up by tree roots over the years in the Lincoln Oval Park area. The $25,000 repair project includes the removal and replacement of three trees and the reconstruction of a ramp for the handicapped.

Talks between the new Tulare Council of Cities and the County to settle a variety of revenue sharing ideas are on going with plans to meet two times a month in place. One issue that appears to be heading toward agreement is the long festering booking fee disagreement. County administrator Kristin Bennet is negotiating with city representatives that include Tulare City Manager Darryl Pyle. The county sued several cities last year over the issue, but now the parties seem more agreeable. “The cities want to pay their fair share,” says Pyle. “I will be meeting June 23 and try to find consensus. There is a good relationship right now,” suggests Pyle. Still to be worked out – once you book the prisoner – will they have a place to lock them up.

With an eye on the global market, Sunkist President Tim Lindgren says the big U.S. cooperative may bring in Mediterranean citrus to the east coast with the Sunkist name on it certain times of the year. “It would be counter cyclical most of the time,” says Lindgren, who retires as president in November. But also, European shippers can deliver fruit cheaper than California can to the east coast offering another reason why it is expanding its sourcing of citrus from other parts of the world other than just the west coast.

California Senator Dianne Feinstein and Judd Gregg (R-N.H.), introduced a measure to reduce the tariff on imported ethanol. If passed, the legislation would allow U.S. refiners to purchase cheaper and more climate-friendly ethanol from foreign sources, which could then help lower gas prices at the pump. “The price of oil has hit $130 per barrel and prices are going higher every day. This means that the need for inexpensive and cleaner-burning fuels continues to grow. And yet U.S. refiners are forced to pay a 54-cent tariff on ethanol imported from Brazil and other foreign sources. This makes no sense, given the record oil prices and the limited supplies of domestic ethanol,” Senator Feinstein said.


Top of the News

Downtown Visalians Continue CEO Search

Visalia - The top candidate for the Downtown Visalians' CEO position has declined the offer presented to her on May 31. After visiting the city with her husband, which included touring homes with a local real estate agent, she had concerns about the increase in the cost of living from her current town in Illinois, according to Vernon Barr, president of Downtown Visalians. “Another issue was that moving expenses were substantially more than we were willing to pay,” he said.
Both Downtown Visalians boards will meet later this month to look at the remaining top candidates for the position, and to consider re-advertising the position.

COS Places Two Bonds on November Ballot

Visalia - The Board of Trustees of the College of the Sequoias Community College District voted unanimously to place two bond measures on the November ballot.

Voters in the Visalia campus district – which includes Visalia, Farmersville, Exeter, Ivanhoe, Cutler-Orosi, Woodlake and Three Rivers – will decide on a $28 million bond measure for improvements to the COS Visalia Campus.

Voters in the Tulare campus district – which includes Tulare, Lindsay, Tipton, Alpaugh and Corcoran – will vote on a $60 million bond measure to establish the COS Tulare College Center.

Surveys conducted in November showed support for both measures. Each measure requires 55 percent of the vote to pass.

What's the Dumbest Thing We Do?

Visalia - City Councilman Don Landers had a suggestion for city staff on Monday: Ask employees 'What's the Dumbest Thing We Do?'

Landers said the idea came up at a California League of Cities meeting he recently attended and he thought maybe the city would get some good feedback. “We might be surprised.”

Mayor Jesus Gamboa jokingly cautioned, “Be careful what you wish for.”

City staff did not indicate if the idea would be tried.

Visalia Schools Keep Developer Fees in Check

Visalia - Aware of the current housing crunch, the Visalia Unified School District board of trustees decided to hold the line on residential developer fees for the next year.

“We recommended we keep it at $3.48 per square foot. It's just a good faith measure,” said Robert Groeber, director of Administrative Services for the district. The district could have raised the fee to $3.59 per square foot.

The board did raise the commercial developer fee to 47 cents per square foot, up from 42 cents.


Absentee Voter Number Continues to Grow

Tulare County - For just the third time in history, the number of people going to the polls in the county to cast their ballots in an election was fewer than the number of people who mailed in their ballots.
This month's primary election saw the turnout dip to about 25 percent, and 59 percent of those who did take the time to cast their ballots, did so by mail.

“Any small turnout, that's going to happen,” said Paul Sampietro, registrar of voters for the county of the high absentee turnout. “Any time we mail people a ballot, they're likely to return it.”

For the June 3 election, as of the latest count from the county, only 33,858 people cast ballots out of 138,688 registered voters. Of those, 19,867 did so by absentee. Sampietro said there are still about 1,500 ballots to be counted: 500 absentee, 500 provincial and 500 damaged that need to be read by hand.

The turnout was one of the lowest in the county in a while, but not the lowest. Sampietro said he expects a much better turnout for the November presidential election. In 2004, the turnout was 70 percent and 38 percent of that was mailed ballots.

The turnout in Kings County was 27 percent, with mail voters almost equal to those who went to the polls.

34th Assembly

Connie Conway earned more than 50 percent of the votes in Tulare County to easily cinch the Republican nomination. Bob Smith, a retired San Bernardino County Sheriff's deputy, finished a surprising second in the county, followed by Becky Maze, wife of incumbent 34th District Assemblyman Bill Maze. Smith earned 26 percent of the vote in the county and Maze 20 percent.

Desmond Farrelly was unopposed for the Democratic nomination. He will face Conway in November in a district that is heavily Republican.

In the 30th State Assembly race, Republican Danny Gilmore will face Democrat Fran Florez, mother of State Senator Dean Florez.

In the congressional races, Devin Nunes (R-Tulare) will face Democrat Larry Johnson in the 21st District. Democrat Jim Costa will basically be unopposed in the 20th District.

In the Stone Corral School Bond, the measure is passing by one vote with 26 yes, or 56.53 percent, to 20 no votes, 43.48 percent. The measure requires 55 percent approval. It is not known if any of the ballots yet to be counted are from that district.


Council Election Alters Porterville Casino Picture

By Claudia Elliott

Porterville - Representatives of the Tule River Tribal Council said Tuesday they are not concerned about a change in the make-up of the Porterville City Council following the June 3 election.

The city and tribe are working actively toward development of tribal-owned land near the Porterville Airport where the tribe hopes to relocate its Eagle Mountain Casino, but school psychologist Brian Ward, who was elected to but has not yet been seated on the city council, made it clear both before and following the election that he is against gambling and does not want to see the casino relocated.

“I'm opposed to gambling period,” Ward said. “I'm open to working with the Tule River Tribe. I think they're doing a lot of great things, a lot of collaborative things, no opposition on vast majority of problems, but when it comes to gambling I draw the line in the sand.”

There are a number of hurdles the tribe must jump before the casino could be moved. Although it owns 40 acres at the airport, that land has not yet been put in trust, one of the conditions for gaming. Because it was not in trust by October 17, 1988, a date established by the federal government, putting the land in trust to use for gaming requires it to go through an approval process involving the Governor of the State of California and the Secretary of the Interior. It is widely believed that a tribe would not be successful in such an endeavor without strong local support.
Although Ward has expressed his opposition to gambling, a long-time Tule River Tribal Council member, Duane Garfield, who currently represents the tribal council on the Southeastern Tulare County Inter-Governmental Coordinating Committee (STIG), said Tuesday he believes that with more information the councilman-elect will come to see that the proposed relocation of the casino and related airport area development are of benefit to the city and the tribe.

“From what I've heard of Mr. Ward, it sounds like he will make a very good city councilman,” Garfield said. “I think once he's in his new position and has an opportunity to learn more about the proposed project, he will see that it's good for everyone.”

Earlier this year, the city and tribe adopted a Memorandum of Understanding which calls for the two governmental bodies to work together. The STIG has been in the process of evolving since that time into what members hope will become the Porterville Airport Area Development Agency, an official governmental agency organized under state law to oversee the airport area development.

Creation of such an entity requires approval of the state Legislature and a bill introduced by Assemblyman Bill Maze has cleared the Assembly and will be heard in the Senate Local Government Committee on June 18. If it is approved there, it will head to the full Senate and is expected by supporters to reach the Governor's desk in September.
In the meantime, the STIG is working to develop infrastructure which will allow PAADA and a related non-profit corporation to facilitate day-to-day operations of the body.

Tule River Tribal Administrator Rodney Martin said he is not “overly concerned” about Ward's election and anti-gambling statements.

“I heard that he called it [gambling] a regressive tax on the poor,” Martin said. “I can think of a lot more regressive taxes. I don't think you're going to see the sale of state lottery tickets at every convenience store in town stopping.”
Porterville Mayor Cam Hamilton and Councilman Pete McCracken both said they believe Ward should wait until he has more information about the project before expressing his opinion. Both council members — Hamilton was re-elected June 3 and McCracken has more than two years remaining on his term — voted in favor of the MOU which expresses city support for the tribe constructing a hotel resort and casino on its airport property. Both also said this week that they did not believe that vote indicated a support for moving the casino to the airport property.
“I neither favor nor disfavor moving the casino to Porterville,” McCracken said. “I have not been approached on it; I have not been asked to decide on it.”

Hamilton said he believed that approval of the MOU was a step to allow the city and tribe to move forward with their negotiations. He does not consider it to have been an approval by the city council to move the casino to the airport property.

“There is more study to be done,” he said following a meeting of the STIG. “But as far as a moral issue, the job of a city councilman is to study issues and vote on behalf of the best interests of the city, not their personal interests.”
Martin said an economic analysis report and environmental documents are being prepared and will be released to the public within the next few weeks.

The next meeting of the STIG, which is open to the public, has been set for 1 p.m. July 18 at Porterville City Hall.
Ward is expected to take his seat on the City Council at an adjourned meeting June 24.


Speculation Driving Sky High Oil Prices, Says Local Oil Exec

No Regrets over Company Investment in Ethanol

Visalia - Nella Oil Company co-owner Walt Dwelle may not be your typical oil company executive. The Visalia businessman, who with his family runs the 50-plus retail gas station operations in California, is both upset at oil speculators and bullish on ethanol.

As for today's oil prices at $135 per barrel – about double what it was a year ago – Dwelle calls the huge increase in price a pure bubble. “It's being driven by speculation from people like Morgan Stanley who have an enormous position in crude oil futures.” Morgan Stanley was one of the investment bankers that recently raised the predicted future price of oil to $150 a barrel by next month and then made lots of money on the self-fulfilling prophecy. Also to blame are certain hedge funds and other large investment funds which have pumped huge sums into oil futures, he says.

The idea that speculation in oil futures needs to be reigned in has caught hold in Congress where several bills to exert new oversight over oil trading have been proposed. The federal Commodities Futures Trading Commission (CFTC) may soon have power to regulate this market in part due to rising consumer and legislative anger over spiking oil prices.
Complaints over speculation came from an unlikely source this week when the Saudis chimed in.

American Consumers Get Wild Ride

The rapid run-up in oil prices gaining $15 in two days last week and over 40% since the first of the year has helped create both a surreal and gloomy atmosphere across the economy as businesses struggle to survive the surge in the price of many commodities – led by petroleum. The big increases have reverberated across all the major sectors of the economy, putting a drag on the nation's recovery effort after the mortgage meltdown – another speculative bubble.
Dwelle's views are unusual for an oilman on another score. He not only supports the use of ethanol as a motor fuel, he has invested in it. Nella Oil is a major partner in the new Calgren ethanol plant in Pixley set to begin operation next month. Dwelle says the incentive to use ethanol should be great in coming months as the spike in gasoline prices is far greater than in ethanol – blended across the country with gasoline. The historical spread between the two fuels has widened in the same wild market that has made wholesale diesel 50 cents more than gasoline – gouging farmers and truckers.

“Right now, wholesale gasoline is $1.20 a gallon more than a gallon of ethanol.” Since oil companies blend about 10% ethanol with gasoline, the blended average per gallon is 12 cents cheaper than it would otherwise be – a big incentive to blend more ethanol, he says. Dwelle says many players in the gasoline business are putting in ethanol infrastructure that suggests more use of the renewable fuel in the future.

“Right now, the economics of making ethanol from corn aren't great,” admits Dwelle, and the new Tulare County plant will probably “just break even” in part due to the high price of corn. Another major reason it will cost more is the run-up in natural gas prices used to heat the boilers at the plant – also doubling in the past year.
Despite the fact that ethanol has been knocked around in the popular press in the last year, Dwelle says the price differential should convince people to use the high octane fuel. “E-85 is about $1 cheaper at the retail level,” says Dwelle, and the number of E-85 stations offering the 85% ethanol, 15% gas option is growing in California.

Foot Dragging

Not helping to offer more E-85 are many of Dwelle's competitors – the big oil companies who, unlike some of Dwelle's stations, won't offer E-85 at the convenient fuel island at each station just like they offer other fuel choices. Nella is installing two such E-85 island dispensers at two Sacramento-area Flyers stations right now.

Still hampering the addition of more use of ethanol in California continues to be foot dragging by the California Air Resources Board concerned about a slight rise in NOx emissions from E-85. Dwelle expects a plan to offer emission credits in the state will overcome this. In the meantime, it's hard to find an E-85 dispenser in California. Tulare's Stanley's at Cartmill and 99 is the only local site sitting on a separate fueling station away from the rest of the pumps. What will change that is the enormous appetite for fuel savings in the U.S. and a rapid increase in the fleet of flex fuel vehicles that can run on both gas and E-85, he believes.

Also, expected to raise ethanol consumption in California is the 2010 deadline to blend all gas in the state with 10% ethanol – currently 7.5%.

Because financing and the profit picture for making ethanol is poor, Dwelle expects a several-year lull in the building of new ethanol plants around the country and here.


Lindsay Voters Soundly Defeat Measure G

By Steve Pastis

Lindsay - The Lindsay Vital City Services Measure, known as Measure G, which proposed raising the sales tax in the city by three-quarters of a percent, was opposed by about 70 percent of voters. The tax would been added to current state and local sales taxes, resulting in an 8.5 percent tax for shoppers in Lindsay.

“I'm disappointed, but it was not unexpected,” said Lindsay Mayor Ed Murray, citing the economy and that “we didn't put enough effort into it” as the main reasons for the measure's defeat.
One of the problems with the measure was that the voter's pamphlet provided no clear reason why the sales tax should be increased in the city.

“The revenues from this tax are not designated for any specific purpose,” wrote City Attorney Julia M. Lew in the pamphlet. “The revenues may be used for general city functions, such as police protection including anti-gang programs, fire suppression services, code enforcement and other general services.”

“There is no accountability in this tax measure,” wrote Timothy S. Daubert, local activist, in the argument against the measure.

“All the money would have gone to public safety,” said Murray, who added that the city planned to use the estimated $400,000 to hire two or three police officers and at least one fire department employee, as well as purchase some equipment.

“The intent was public safety and public safety only,” he said, “but people said, 'How do we know what the next council is going to do?'”

But if the city stated the purpose of the tax revenues, the measure would have been harder to pass.

“If you designate it for something, you need a 67 percent majority, but you need just 50 percent plus one for a general bond,” Murray said. “To me, it should be just the opposite.”

While there was no argument for the measure, Daubert submitted the argument against the measure. He noted that “Lindsay has over 50 percent of the population living at or below the poverty level” and that “there are also a substantial number of senior citizens who live on a fixed income.”

He also wrote, “Many of these streets are still in dire need of repair. But on March 6, 2008, the city did resurface the street the mayor of Lindsay lives on.” He also called the McDermont Field House a “$76 million dollar fiasco.”
Murray called Daubert's numbers “an out-and-out lie,” adding that the cost of McDermont Field House is $13 million, not $67 million.

“How can they put that in the paper when it's totally wrong?” he said.

Responding to the personal mention in Daubert's argument, Murray said that his street was among those resurfaced with slurry seal. “Fifteen streets were done the same day,” he said.

With the defeat of Measure G, the city will “have to watch the budget,” according to Murray, who was asked if the City of Lindsay will try again with another measure.

“Maybe when the economy gets better,” he said.


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The above stories are the property of The Valley Voice Newspaper and may not be reprinted without explicit permission in writing from the publisher. 

June 12, 2008

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