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300 Properties Removed from Flood Plain

By Rick Elkins

Visalia - Pam Lockhart, real estate broker for Sundowner Homes in Visalia, was in a good mood Friday. She had just learned that the housing subdivisions had been removed from the flood zone that requires flood insurance.

The city was notified Friday that more than 300 parcels had been removed from the flood plain that requires flood insurance. The city had expected those properties to be removed, said Chris Young, assistant Community Development director. The property had been put into the new maps incorrectly, noted Lockhart.

“It was their mistake (FEMA) that put us in,” she said.

However, it was not all good news. The timing came after most of the property owners purchased the costly flood insurance and now they are finding out they cannot get a refund.

“We're not happy with the timing,” said Lockhart.

The city has been working with property owners since the Federal Emergency Management Agency (FEMA) released its new flood maps earlier this year. The new maps put 8,900 parcels in the zone that requires insurance. The new maps did remove nearly 8,000 parcels that were in the flood zone.

The city received the letter Thursday notifying it of the parcels being removed from the flood zone, but had been told that any such action would not be done until after the June 16 deadline to purchase flood insurance at a lower rate.

The new map took effect Tuesday and anyone purchasing flood insurance now will pay more than double the rate than had they purchased it before the map went into effect.

“They (FEMA) told us we would not have this revalidation letter until after June 17,” said Young, noting the letter is dated June 17.

He said the parcels removed in the letter were proven to have elevations higher than FEMA had determined, thus they would not be required to have flood insurance. While a majority is in the Sundowner subdivision at Mineral King and McAuliff, several are scattered around the northwest portion of the city.

“FEMA made the mistake. FEMA gets the benefits. What's wrong with that?” said Lockhart, noting that flood insurance has to be purchased from FEMA.

Doug Damko, senior civil engineer, said the city is going to request that FEMA refund the insurance premiums paid.

The cost for the maximum coverage of $250,000 on a preferred policy is $348 a year. If a homeowner waited until after June 16 to get the insurance, then the cost would have more than doubled, and if the homeowner does not purchase coverage, the lender has the authority to add the flood coverage to the loan and they will force coverage and just add the cost to the loan balance, said Rona Swanson with American National Insurance in Visalia.

All lenders who have FDIC backing are required to demand flood insurance on any mortgages for properties in a flood designated area. They do not have discretion regarding the criteria and the coverage must be equal to the replacement cost of the home.

Lockhart praised everyone involved in getting the parcels removed, including David Wind, who owns Sundowner, local engineers and the city of Visalia. “This required a lot of hard work by a lot of people,” she said.

What's Next

Young said the city is working with developers and individual property owners to survey their properties to see if they should be removed as well. While the revalidation process has ended, the next recourse property owners have is the Letter of Map Revision (LOMAR) process, which could have chunks of properties removed at once. Owners can also seek a Letter of Map Amendment, which is done on a property by property basis.

Young said some of the LOMAR letters could be forthcoming within a month.
“So far so good. Of course, it's an ongoing processing. We're not just going to stop here,” he said.

He said for the short-term, they are working with others to get as many properties removed from the flood zone as they can. Long-term, they are studying the data used by FEMA to come up with the map to see if it is valid. The city is also looking at reestablishing the flood levee districts to improve the St. John's River levees that FEMA cited as being in such poor condition as to provide no protection at all and thus placed more parcels in the flood zone when the city thought the enlargement of Terminus Dam would have meant fewer parcels in the flood zone.

Lucky Ones

On Tuesday, 7,900 parcels in the city were removed from the flood plain, but they must now take action to cancel their flood insurance.

Those wanting to cancel their costly flood insurance will need a letter from their mortgage company stating that they are no longer required to carry flood insurance, so the first step is to contact the lender, advises Swanson.

“In order to do that, you will need to call the insurance department of your lender's customer service and provide them with documentation showing that your property has been moved out of a flood hazard zone. “You can print the information from FEMA maps or the FEMA web site to verify new non-flood status. If you wait for them to locate the documentation, it could be a few months before they get the new data input.

“Once you are able to obtain the documentation from your lender, you will need to contact your insurance agent to sign a cancellation for the flood coverage and have them submit to FEMA,” she said in a letter to the city.

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Council Moves Ahead with Furloughs

By Rick Elkins

Visalia - Furloughs and layoffs may be in the near future for employees of the city of Visalia after the city council voted unanimously Monday night to take such actions to cut into a bulging budget deficit.

Council members rejected the idea of offering incentives for early retirement and expanded the layoffs and furloughs to all departments in the city, including public safety.

The action was taken in light of a $5.7 million budget deficit facing the city that has seen revenues drop off dramatically the past six months. On Monday night, the council declared a fiscal emergency.

City Administrative Services Director Eric Frost laid out the dire financial situation the city is facing, a process going on more than six months now. “Since March, our problems continue. In fact, they've gotten worse,” he told the council. He added the city is facing a number of “years of deficit spending” and that fundamental changes are needed.

He pointed out that sales tax and property tax revenues – which make up the bulk of the city's general fund – are way off and continue to fall. Frost said the city expects a drop of $1.3 million from sales tax revenue alone.

On top of the weak local economy, the city is facing a hit from the state that is struggling with its own economic mess. Frost said the state could take more than $2 million and that the city faces a $2.5 million increase in its contribution to the PERS retirement system.

City Manager Steve Salomon said it will take 30 to 60 days to finalize the cost-cutting measures – including furloughs and layoffs. He noted the city needs to find long-term cuts and classified layoffs as long-term solutions, and furloughs as short-term.

“There's some processes to go through here to get at some hard numbers,” said Salomon. “It's going to be hard. We have a lot of talented people and hopefully we can get a lot of cooperation,” he added.

However, with nearly 75 percent of the general fund spent on public safety, he admitted that police and fire will not be spared layoffs and furloughs.

Chris Ortiz, secretary for the Visalia Firefighters Association that has been very visible in opposing cuts to firefighters' pay as well as to layoffs and furloughs, said after the vote that the firefighters will work with the city to ensure public safety.
“We've been willing to work with them from day one,” said Ortiz, adding that there is not much the department can give. He explained Visalia has .46 firefighters per 1,000 residents, the lowest ratio in the Valley. He defended the association's decision to not defer a 4 percent raise that becomes effective July 1, saying that was negotiated in good faith and that the firefighters had made other concessions to get that.

“We understand sacrifices. These are very hard decisions to make,” he said.
The city had asked all bargaining groups to defer the 4 percent pay hike as a means of saving more than $1 million a year, but all but one of the five bargaining groups rejected that proposal.

Salomon was instructed Monday to finalize the city's layoff and furlough policy. “We'll try to work the furlough thing out that makes the most sense,” he promised the council.

The action Monday night is designed to save the city $3 million a year. Other budget-saving actions include:

· Reworking major vendor contracts for a savings of $300,000;
· Coming up with a list of cost savings totaling $200,000; and
· Reducing tree-trimming contract by $30,000.

Spared the budget ax was a $40,000 cut to the youth service grants given by the city ($160,000 total) and the council's discretionary fund, a total of $10,000.

In declaring a fiscal emergency, the council authorized using the Measure T economic uncertainty fund to balance the budgets of police and fire. For the 2009-10 fiscal year, police will get $745,000 and fire $497,000. Measure T is the city's quarter percent sales tax to increase public safety, but it was designed to increase those departments, not supplement general fund money. Monday's action required a fourth-fifths vote.

Councilman Greg Collins, noting this is about the 20th city budget he has worked on, said this is by far the worst financial situation facing the city he has seen. He added this is the first time he can remember the city has asked employees to forgive a pay increase.

Mayor Jesus Gamboa agreed these are tough times, and said he was disappointed with the city bargaining groups for not cooperating on deferring raises.
“We're worrying about ourselves,” he criticized. “This is not the time. We need to worry about the solvency of the city.”

The city has already taken a number of steps to reduce spending, including freezing open positions, postponing capital projects, reducing travel and dipping into reserves. So far, those actions have saved $2.14 million, but only $440,000 of that is a long-term savings. Monday's action is pointed more to long-term savings.

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PUC Report Favors Northern SCE Route

By Miles Shuper

Tulare County - A Public Utilities Commission draft Environmental Impact Report suggests the controversial Southern California Edison high voltage transmission lines take a route north of the one opposed by many, but favored by the utility giant.

Route 2 would come off of the main power line that runs along the foothills north of Woodlake and go west, around Colvin Mountain and then turns south at roughly Ave. 368, about a quarter-mile east of Road 144, and then into the city of Visalia.

While the draft report is a tentative victory for opponents of Route 1, the Exeter-Farmersville path, the fight to have Alternative Route 3, the so-called Stokes Mountain route, will continue, said George McEwen, chairman of Protect Agriculture, Communities, Environment (PACE) which has been waging an aggressive fight to thwart Edison's favored and less costly route.

PACE spokesperson Shirley Kirkpatrick said the group “does not have an official comment at this point. “We're studying the document. We have recommended alternative Route 3 all along and probably will continue advocating for it. Route 2 impacts agricultural lands and the community of Elderwood. Alternative 3 does not have those impacts.”

At a community meeting nearly two years ago, a large number of Elderwood residents and property owners strongly opposed an SCE route in their area. Edison subsequently announced the Exeter-Farmersville and 198 route which sparked the formation of PACE and several lively PUC scoping sessions.

Opponents maintain that huge towers carrying the 225-kilovolt transmission lines would not only be unsightly, but hundreds of acres of prime productive farmland would be vacated, property values slashed and public health possibly impacted.
A public hearing on the newly released draft EIR has been scheduled for July 23 at the Visalia Convention Center.

Route 2 runs in part along the alignment of SCE lines near Elderwood south of State Highway 201 and cuts through what locally is referred to as Mud Gap near Colvin Mountain. The route turns south for abut nine miles between Ben Maddox Way (Road 132) and Road 156, crossing Highway 198 before connecting to the Rector Substation. The lines will follow basically the same route used by existing lines into the city of Visalia.

According to the PUC report, “This alternative would meet the basic project objectives and would meet all legal regulatory and technical feasibility criteria. It would affect fewer walnut orchards than the proposed project (Alternative 1). However, this alternative would result in potential new impact to additional sensitive biological resources (i.e., critical habitat).

PACE, with a membership of about 200, claims Route 3 would cross only a handful of properties and have considerably less impact on the environment and other factors. Edison maintains that the route would be much more costly, at least $163 million, than the route through Exeter, Farmersville and along Highway 198. That cost is set at about $90 million.

The city of Visalia will study the draft EIR in more detail, said Leslie Caviglia, deputy city manager, who expects the issue to come before the city council, possibly at the July 13 meeting. Despite the impact from whichever route is eventually selected, the city of Visalia supports the SCE efforts to bring more power to the area.
Paul Boyer, a Farmersville City Council member, said he is happy the PUC report seems to have rejected the route which would impact Farmersville's commercial, industrial and residential future as well as property owners.

Lon House, a consultant hired by PACE, said last month during a fund-raising rally that he believes the fight waged by the local group and other property owners has captured the ears of the PUC and its staff. House predicted that Edison's favored route would be rejected.

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COS Studies More Solar Projects

By John Lindt

Visalia - College of Sequoias is installing enough solar power on the roof of the new Allied Nursing building on the Visalia campus to handle all that building's power needs, says college President Bill Scroggins.

Construction on the multi-story building is scheduled to be complete later this fall. “Workers are putting up the panels now,” says facilities manager Eric Middlestead.
Scroggins says the college has plenty of other solar projects on the drawing board “wherever it makes sense,” including a small ground level solar farm (perhaps four acres) proposed at the new Tulare campus.

Also at the proposal stage are plans to do rooftop solar on new buildings in the pipeline at two other locations on the Visalia campus.

As it is, the college was able to erect the panels on the nursing building with most of the costs paid by grants or incentives through the state.

Planned RFQ

Next month, the college board of trustees is expected to approve a request for qualifications (RFQ) for a number of companies that are offering to build energy-saving projects for COS.

The idea is attractive because it would save money the community college would otherwise have to pay the utility. Chevron, for one, is a major player in this arena. But COS would love to do business with local providers if possible, says Middlestead. Companies offer such power purchase agreements, getting the tax credits from the government.

Middlestead says the college already has an internet-based energy management system in place on about half the Visalia campus that is already saving the district about $50,000 a year in energy costs. The system is paid for by Measure I funds. The system turns power on and off, as well as adjusting temps just when needed at buildings around the campus and will cover the entire campus and all campuses in the district in a matter of years.

Middlestead says all types of energy-saving projects are in the works including looking at rooftop solar car ports and plug-in stations for hybrid cars on the new Tulare campus.

COS has deeded some land for a new transit center as well, looking to make it easier to take public transportation to get to school.

Construction of the new Tulare campus with 100,000 square feet of connected buildings will start in February and be completed within two years. “We will have a full campus with all the expected services in Tulare including cafeteria, library and bookstore, along with labs and classroom space for both general and ag classes,” says Middlestead.

The theory is that the solar farm would handle all or most of the power needs for the new campus. “It's easier to do since in Tulare its being planned from the ground up,” he says.

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CalWorks Woes
Cuts to Social Service Would Hit County Hard

By Miles Shuper

Tulare County - For the time being, a proposal to severely slash or even eliminate CalWorks, the state's basic welfare program, has been tabled by state officials fighting to balance an out-of-control budget.

But Tulare County officials, like those in all other counties, continue to brace themselves for a wide spectrum of “what if” situations.

One thing, however, seems certain: whatever cuts are made, those impacted the most will be those receiving social services – especially the elderly, blind, low-income and single-parent families, officials say. While it appears the state's basic welfare assistance funding is not on the budget chopping block at the moment, a number of health and welfare programs remain targeted.

At least $10 million a month is spent on welfare in Tulare County, much of it going to housing costs and other basic needs. Food stamps are funded by federal funds and won't be seriously impacted, but officials say drastic cuts could greatly increase the number of homeless, especially the elderly who rely on various services focusing on providing for their shelter and care.

There are about 13,000 Tulare County families and about 35,000 individuals, many of them children, who receive financial assistance monthly.

David Crawford, who heads TulareWorks, part of the county's welfare system, voiced a common trend of thought that “the State of California is attempting to balance the budget on the backs of the poor.”

Crawford believes although the basic assistance funds will continue to flow from Sacramento, there will be cuts in Medi-Cal, Welfare to Work, employment assistance, child support, adult caretaker, in-home care and other programs. While it is likely some county jobs may be cut, the picture is clouded. Cuts in county staffing are likely, but once again the degree can't be determined until Sacramento acts.

John Davis, Tulare County HHSA director, said there is no doubt cuts will be made but he continues to develop and weigh options while awaiting state budget action. Davis said he firmly believes it will take a number of weeks and political give-and-take before those in Sacramento settle budget issues, especially where cuts will be made.

Meanwhile, the county's chief administrative officer, Jean Rousseau, continues to keep department heads and others up to date with options the county is considering while the state budget bickering continues.

More furloughs, layoffs and reduced non-essential services are among the most likely moves to become part of the county budget slashing. Next Tuesday, Rousseau will give supervisors numbers and facts on the 2009-2010 budget. An evening session will be held at supervisors' chambers from 7:00 to 8:00 p.m. for those unable to make the daytime board meeting.

One area where state social service cuts will make an impact will be the housing industry, especially lower-income rentals.

Steve Duerre, president of the Equity Group which has about 1,600 rentals in the county, estimated only about 5 percent of the company's clients receive financial assistance but for those who do, “it would be terrible” if their support is cut or eliminated.

Although many families are consolidating, there are still those who need their own places. Duerre said his company has a larger than normal number of lower cost apartment vacancies while home rentals are doing well.

Many of those who seek apartment rentals are single-parent families with young children who can't work due to child care issues, he pointed out. Some of them receive one-time financial assistance through county programs which Crawford and Davis said are most likely to be eyed by those trying to balance the state budget.

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What's New

Vallarata Market, which was eyeing building a large supermarket on Lovers Lane, is now reportedly abandoning those plans and is looking at vacant market space in the city of Visalia for its first venture into Tulare County. There are at least three vacant sites in the city.

The Men's Journal listed a bike ride from Visalia to the General Sherman Tree in Sequoia National Park as the No. 1 bike ride in the U.S. The magazine listed five of its best “stunning road routes” in the United States, with the local route the best. The June issue said, “The challenge of central California is where cyclists go to push boundaries.”

Bakersfield-based M.S.Walker is planning to build a four-story 125-room Residence Inn on Cypress west of Akers, according to a site plan review application filed with the city. The hotel is a Marriott product to be built across the street from the fun park. The project could start construction in six to eight months, says company VP Richard Marko.

Macy's department store has final approval from the bankruptcy court to take over the lease on the 150,000 s.f. Gottschalks in Visalia. Company spokesperson Sharon Bateman says, “We are thrilled to be coming to Visalia and it's an opportunity to expand our reach in one of our most important and busiest markets – California.” The store is expected to open by Halloween for the holiday shopping season. Liquidators will wind up their sales at the Mooney store next month, allowing Macy's to begin some minor construction work in the three-level store.

Another fruit-packing house bites the dust. Z&S Fresh of Dinuba closed its doors recently, leaving some local growers to scramble for a packer. The packing house was a partnership between Marty Zaninovich and Visalian Aron Margosian. Z&S joins other local stone fruit houses that closed in recent months, including George Brothers in Sultana, Ito Packing of Reedley, Ballentine in Sanger and SunnyCal in Reedley. Besides tree fruit, Z&S shipped grapes, citrus and vegetables.

Tulare's Motorsports complex will look to a Mello Roos bond issued through a community facilities district to finance public improvements on the 711-acre race track site. So says the firm's financial guru, James Bancroft of L.A. A limited partner in the deal, Bancroft has decades in public/private financing. Bancroft won't go as far as Dave Swindell did in a recent Voice article when Swindell said that financing for the improvements has been secured. Bancroft is more cautious but optimistic, saying the lender will want to be assured that a community facilities district is set up for the 140-plus parcels in the development. The subject is expected to be discussed this week at the city and the Tulare City Council is likely to go along.

Non-profit Corporation for Better Housing plans an Ivanhoe project, according to the county planning commission. The organization has existing units in Porterville and Woodlake already. The plan is to build 96 high-density apartments on the corner of Highway 216 and Ave 327. The non-profit organization was established in 1995 with the purpose of fulfilling its mission to provide low-to-moderate income seniors and families with safe, quality affordable housing, coordinated access to enhanced social service programs, and the dignity and peace of mind which create a better living environment. Since its founding, Corporation for Better Housing has completed 31 projects totaling 2,321 units, with another 438 units currently under construction.

Two Visalia area dairies are among the West Coast dairy farms that have accepted herd retirement and are out of business, according to the Cooperatives Working Together Web site. The two are Joe Mendes and Antonio Santos. Nationwide, the retirement is expected to lead to a reduction of 2 billion pounds of milk. In the dairy marketplace, summer prices appear to going the wrong way with hope they will strengthen this fall.

Farm advocate Manuel Cunha will travel to Washington in early July and expects to be one of a group who meets with President Obama on immigration issues. Cunha expects the president's support for the AgJobs bill that was reintroduced in Congress last month.

The city of Visalia approved applying for $1.14 million in energy efficiency and conservation block grants as part of the federal stimulus funding. The city of Porterville is also seeking money in the program.

A six-member Tulare County High Speed Rail Committee focusing on securing a station stop in Tulare County is being formed. The county will be represented by Supervisors Phil Cox and Pete Vander Poel, and two representatives from both Visalia and Tulare will be included. Visalia appointed Council Member Bob Link and Mayor Jesus Gamboa. An environmental impact report for the Merced-to-Bakersfield section of the proposed high speed rail line is being prepared. The new commission also will focus on other high speed issues pertinent to the Visalia-Tulare region, according to the Tulare County Association of Governments (TCAG) which approved forming the commission. The county is lobbying hard to get a stop in Visalia, or at the least in the region. Right now, there is no stopped planned between Bakersfield and Fresno.

Victim of the financial crunch? The Visalia City Council Monday delayed for six months moving forward on building a new animal control facility in the city, but left open the door to move quicker on the project if other projects can be delayed, freeing up the money needed for the project. The $6 million-plus facility will be built just north of the existing facility, west of the Visalia Airport, but the financial pinch the city is facing is forcing the delay of construction.

Home Depot announced last week that economic indicators signal that the worst of the U.S. housing correction has passed. According to a report in Reuters, the retailer raised its 2009 profit forecast as it sees better margins this year through improved efficiencies.

Gary Reed of Porterville is closer to being renamed to the California Community College Board of Governors. In a 5-to-0 vote, the California Senate's Rules Committee approved the nominee and moved his appointment to the Senate floor for a full vote.

The California Legislature is once again considering a proposal to take $350 million from redevelopment agencies in the state, including Visalia, Tulare, Porterville and Hanford. A similar attempt earlier this year was overturned in a lawsuit.

Employer costs for employee compensation averaged $29.39 per hour worked in March 2009, the U.S. Department of Labor's Bureau of Labor Statistics reported. Wages and salaries, which averaged $20.49, accounted for 69.7 percent of these costs, while benefits, which averaged $8.90, accounted for the remaining 30.3 percent.

Attorney General Edmund G. Brown Jr. has negotiated a settlement with CVS Pharmacy requiring the company to make sure expired products are not sold in its stores and provide customers a $2 coupon if they identify products past their sell-by date. The settlement also applies to Longs Drug Stores California, which CVS purchased in late 2008.

Saputo Inc., which has three plants in Tulare, reports net earnings totaled $278.9 million or $1.35 (basic) per share for fiscal 2009, which ended March 31, 2009, down 3.2% compared to $288.2 million or $1.40 (basic) per share in fiscal 2008.

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Visalia Fox Theatre Upgrades Announced

By Steve Pastis

Visalia - A two-year plan to renovate and upgrade the Visalia Fox Theatre was announced last week at the reception that officially named the theater's auditorium in honor of the Lyles and Porter families.

The reception also celebrated the $500,000 donation to the theater made by community philanthropist Marybeth Lyles Porter Higuera.

Artist's renderings of the theater's expanded restrooms, the first project on the Visalia Friends of the Fox Theatre's two-year list, were unveiled at the reception.

“We're putting in new fixtures and getting more toilets,” said Fred Scott, the architect who designed the project. “We're trying to get similar tiles and doors to the stalls that match the way it looked.”

The men's “smoking room” and the women's lounge are being eliminated. This will provide room for three more stalls and two more sinks for the ladies' room, and more sinks for the men's room. Scott anticipates using marble for the stall partitions, hexagonal tiles, and black and white wall tiles similar to the current decor.

“That's what we're after, to get it all new, but looking like the era it was built in,” he said. “Right now, it looks dated because the material looks old.”

The improvements should please theater patrons.

“The capacity was way too small,” said Paul Fry, Fox general manager. “The lines for the bathrooms were always interminably long.”

The proposed list of projects at the Visalia Fox over the next two years also includes painting the exterior of the theater. Part of the cost will be covered by a city of Visalia grant of $30,000. Bid packages are being prepared with the goal of having work start in the fall.

Also in the two-year plan are:

• Replacing the theater's original rigging/fly system, which controls sets and curtains on stage;
• Installing acoustical shells for the symphony and other performances;
• Replacing the orchestra pit cover, which will allow easier access to the organ;
• Americans with Disabilities Act improvements; and
• Renovating the theater marquee, with a black background and LED lighting.

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