August 23,2014
Colony Energy Plant In Tulare Gets Hearing

Colony Energy’s plan to build an anaerobic digester in Tulare got a public hearing last week. They also want to construct and operate a waste transfer, trammeling and fats/oil/grease (FOG) conversion facility adjacent to the approved anaerobic bio-digester project located immediately southwest of the City of Tulare’s waste water treatment facility, north of Paige Avenue and east of Enterprise Street. The city Environmental Impact Report Committee received a negative declaration August 19. Construction of the project could start this winter.

Calgren Digester To Go Operational September 30

Calgren Renewable Fuels is scheduled to open their new anaerobic  digester that will process 55,000 gallons of dairy waste to make biogas as of Sep 31,2014. A news release from the maker of the unit says the farm waste greenhouse gas emissions will be reduced by 90% and the pathogens in the waste greatly reduced. The  release says odor reductions will at 97% as the biogas is burned. The biogas will replace natural gas at the ethanol plants co-gen facility.

Visalia Costco To Add Diesel Fuel

The Visalia Costco gas station will add three additional pumps and also offer a new diesel product dispenser.

New Kings River Bridge To Be Dedicated.

Tulare County Board of Supervisors will dedicate the new Kings River bridge over Ave 416 on August 29. The bridge replaces one built in 1959 with a state of the art 4-lane bridge that cost $21.5 million. The bridge is named for RB Oliver, a member of the board between 1931 and 1951 The bridge enables better and safer traffic flow between Dinuba and Hwy 99. Dinuba has made the project a top priority to help industry have better highway access.

Mor Furniture Details Plans

Mor Furniture submitted plans to build their new showrooms in the former car dealership property at 3000 S Mooney. The new building will be signed not just for Mor Furniture For Less but also SleepMor and Kids &Teens in different wings the complex.

City Submits Plans for new Walnut Ave Fire Station

Plan are now filed to construct a new 7031sf fire station at West Walnut Ave near Atwood The facility will house two fire engines,a visitor lobby and staff offices and sleeping quarters

Porterville Building Includes s Me-N-Eds and Panera Bread

Developer Dave Paynter has filed building plans for a new 7350sf building in Porterville’s Target shopping center that will house a new 4200 Panera Bread as well as a 3150 sf Me-N-Eds. The two restaurants expect to open late this year.

August 22,2014
Wither El Nino? Ag weather forecaster Alan Fox  who writes a weather blog for California’s avocado growers has weighed in on El Nino and its strength and timing.This month he says the “current El Niño is expected to remain weak according to the latest guidance from the CFS2 seasonal forecast model. Therefore, we should not expect to see a well developed southern storm track. However, with sea surface temperatures remaining above normal, we expect plenty of stationary upper lows to develop which would tend to support rains into central and southern California through the fall and most of December. In addition from January through March 2015, CFS2 guidance suggest abnormally wet conditions in central and southern California.”  This week ( Aug 21) NOAA’s Climate Prediction Center updated their forecast maps showing this view of coming months( Sept/Oct Nov) potential showing the enhanced probability of above average rain in middle and southern California.

NEW YORK –August 21, 2014 – New construction starts in July climbed 6% to a seasonally adjusted annual rate of $588.8 billion, according to McGraw Hill Construction, a division of McGraw Hill Financial.  Nonresidential building continued to advance, supported by yet another robust month for manufacturing plant projects as well as improvement for commercial building.  The nonbuilding construction sector (public works and electric utilities) also advanced, helped by the start of a very large mass transit rail project.  At the same time, residential building was unchanged from its pace in June.  For the first seven months of 2014, total construction starts on an unadjusted basis were reported at $311.6 billion, a 4% gain compared to the same period a year ago.

The July statistics raised the Dodge Index to 125 (2000=100), up from a revised 118 for June, and marking the highest level for the Dodge Index so far in 2014.  “The construction expansion this year is getting more of a contribution from nonresidential building,” stated Robert A. Murray, chief economist and vice president for McGraw Hill Construction.  “Manufacturing plant construction is seeing the start of numerous chemical and energy-related projects, consistent with the nation’s growing energy sector.  Commercial building is maintaining its upward momentum from low levels, while institutional building with its up-and-down pattern appears to be stabilizing after a lengthy decline.

August 17,2014

Plastic Bag Ban

A California State Assembly committee last week gave the green light to a bill that would ban plastic bags in grocery stores and supermarkets across the state, setting up a floor vote on what would be the country’s first statewide ban on plastic bags. The Assembly’s Appropriations Committee passed SB 270 in an 11-3 vote, clearing the way for a floor vote as early as next week. The bill would ban single-use plastic bags in drugstores and supermarkets starting in July 2015.

Auto Sales Climb

The California new vehicle market continued on its steady upward path in the Second Quarter of 2014 according to the California New Car Dealers Assn. New light vehicle registrations in the state reached 487,300 in 2Q ‘14, up 9 percent versus a year earlier. Last quarter’s gain was the 15th consecutive increase, with the most recent decline occurring in the Third Quarter of 2010.
The dealers expect  that new registrations for all of this year will approach 1.83 million units, and improve 6.9 percent from 2013. Another increase is likely in 2015, when the market could eclipse the 1.9 million unit level.
Top Brands
Among the top 15 selling brands, Jeep, Lexus, Subaru, Nissan, and Mazda had the biggest percentage increases in the first half of this year. New registrations for each of the five brands increased by more than 15 percent .
Japanese brand registrations increased 10.2 percent so far this year and market share increased 1.3 points.
Hybrid vehicle market share (excluding plug ins) was 6.2 percent during the first six months of this year, down from 6.8 percent in 2013.
Used vehicle registrations increased 2.4 percent. Three year old or newer vehicles were up 9.7 percent, as supply shortages are easing.

Exports At Port of Long Beach Sees Dip In July / LA Higher

Total cargo container numbers rose 3.7 percent in July at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest July since 2010.
 
A total of 583,060 TEUs (twenty-foot equivalent units) were moved through Long Beach in July. Of these, 297,615 TEUs were imports, which rose slightly by 0.9 percent. Exports declined 6.2 percent to 124,126 TEUs. Empty containers escalated 19.5 percent to 161,319 TEUs.
 
The relatively flat import numbers in July came after a surge in June 2014, when retailers were stocking up for back-to-school shopping. Through the first seven months of 2014, container cargo traffic is up 2.7 percent at the Port of Long Beach, showing the economy is continuing to grow.
 
Last year, against which 2014 is being compared, was the third-busiest year in port history with a total of 6.73 million TEUs.
At the Port of LA loaded outbound containers were up  3.6% in July  while total container traffic was flat. Total traffic year to date is up 7.75%.
Gasoline Prices Keep Falling
California’s average gasoline price is  $3.87 today compared to $4.06 a month ago according to Gas Buddy. Oil prices have fallen to  $96 a barrel ,down nearly $10 in the past month.Some Tulare County gas stations are selling regular at $3.50 or below. In SLO county Costco is priced at  $3.85 per gallon while Nipomo’s Vons station is selling at a bargain $3.65.

Governor Brown Signs Legislation to Put Water Bond Before Voters

8-13-2014

SACRAMENTO – Governor Edmund G. Brown Jr. today signed legislation to put a comprehensive water bond before voters this November.

“Water is the lifeblood of any civilization and for California it’s the precondition of healthy rivers, valleys, farms and a strong economy,” said Governor Brown. “With this water bond, legislators from both parties have affirmed their faith in California’s future.”

The legislation signed by Governor Brown, AB 1471 by Assemblymember Anthony Rendon (D-Lakewood), replaces the current $11.1 billion water bond on the November ballot. The bipartisan legislation passed the Senate 37-0 and the Assembly 77-2. The new bond includes $7.12 billion in new debt, plus the repurposing of existing unspent bond funds of $425 million for a total of $7.545 billion. None of the repurposed bond funds will be taken from existing projects. The measure will be Proposition 1 on the November ballot.

The bond provides for water use efficiency and recycling, groundwater cleanup and management and $2.7 billion for additional water storage. It invests in safe drinking water, particularly in disadvantaged communities, and provides for watershed restoration and increased flows in some of California’s most important rivers and streams.

Wednesday  the California Legislative approved a $7.5 billion water bond that will go to voters this November.

The Association of California Water Agencies (ACWA) said that if approved by voters in November, the bond will provide critical funds as the state grapples with one of the most severe droughts in its history. The bond also will allow for much-needed investments in the state’s backbone water infrastructure system – investments that have not been made in over 50 years.

“Legislative approval of a water bond in 2014 has been a top priority for the ACWA Board of Directors this year,” said ACWA President John Coleman. “The targeted monies in this bond will provide the necessary funding to move California forward in implementing a statewide comprehensive water plan that helps to secure our water future.

“Gov. Jerry Brown, Senate President pro Tem Darrel Steinberg, Senate Republican Leader Bob Huff, Assembly Speaker Toni Atkins, and Assembly Republic Leader Connie Conway are to be commended for hammering out a bi-partisan compromise.”

ACWA Executive Director Timothy Quinn also applauded the legislative action.

“This water bond is the right size at the right time for California,” added Quinn. “The bond will provide investments where we need them – in new surface and groundwater storage projects, regional water reliability, sustainable groundwater management and cleanup, water recycling, water conservation, watershed protection and safe drinking water, particularly for disadvantaged communities.

“It hasn’t always been a smooth road on the way to this bond, but thanks to the work of our fiscally responsible Governor, the Legislative leaders in both the Senate and the Assembly, the bill authors and many other Legislators who played key roles, this carefully crafted, targeted bond has a greatly enhanced chance of a successful outcome with voters this Novemb

August 13,2013

What Happened To King Cotton?

Kern County held its second place position as the nation’s number two county for crop production in 2013 leaving next door Tulare County comfortably number one. Kern’s crop value came in at $6.8 billion – up 6% from 2012, with results  announced this week. But Tulare County’s lead was way too much to catch up to at $7.8 billion – ahead of Fresno County at number three with $6.4 billion.Fresno has been number one for years.

With three years of drought Fresno County suffered a decline in 2013 due in large part to its parched westside and that regions’ water woes. Unlike Fresno County, Tulare County and Kern have either no or less westside crop region.

Tulare County’s strong position was based not just on milk  which saw much better prices in 2013 vs 2012 but an explosion of higher values in the nut and fruit sector. Exports made the difference.

Kern saw some of that as well as walnuts logged gains in both acreage and per-ton value rising around $800 million.

Kern remains the top grape producer in the state with a crop value climbing more than $200 million vs 2012.Almonds were the county’s top crop followed by milk,citrus and cattle.

King Cotton looked more like a pauper than a prince in 2013  with acreage down only 771 compared to nearly 5000 acres in 2012, 32,000 in 2010 and 237,000 acres in 1990. Earlier the county saw about 300,00o acres of cotton that has almost all been replaced – mostly with permanent plantings.

 

Tulare County Citrus Acreage Grows

USDA’s annual Citrus Acreage Report shows Tulare County sports more than half the state’s navel orange crop in 2104 with 67,560 acres of bearing trees and 2083 young nonbearing trees. That is nearly two thirds of the state’s new plantings are happening in Tulare County. In the fast growing mandarin category Tulare County has 13,630 acres of trees including 1162 nonbearing. The report says  there were 1925 acres of nonbearing trees planted from 2012-2014 statewide so most of the new plantings of this variety are happening in the county as well. Statewide there are now 46,272 acres of mandarins (compared to 29,000 acres in 2006), ahead of the Valencia orange acreage now  at 33,985 acres. Statewide Valencia acreage has stayed flat since 2006.

In lemons Ventura County leads with 17,148 acres and Tulare County second at 6069 acres but again, growing faster with over a thousand  acres of young trees planted in the past three years compared to only 500 acres in Ventura County.

Just what acreage we will end up with in Tulare County in 2014 due to the drought  and lack of surface water delivery this year may change the numbers here some fear as a substantial number of groves are pulled.

August 10.2014
For the eighth consecutive month, the San Joaquin Valley Business Conditions Index points to growth. The overall July index rose to 57.3 from 57 in June, thanks in large part to increased construction.
“Construction activity continues to improve in the region, spilling over into the broader economy.  Additionally, expansions in food processing and wholesale trade firms boosted July readings,” said Dr. Ernie Goss, research faculty with Fresno State’s Craig School of Business.
The index, produced by the Craig School, is a leading economic indicator from a survey of individuals making company purchasing decisions in the counties of Fresno, Madera, Kings and Tulare.
The index uses the same methodology as that of the national Institute for Supply Management.
Other survey findings:
Employment: After moving below growth neutral for January, the hiring gauge has moved above the 50.0 threshold for the past six months. The job index climbed to a healthy 58.1 from 57.8 in June. According to Goss, over the past year, the region’s unemployment rate has declined by approximately 2 percent with the addition of more than 10,000 jobs, but average hourly earnings have remained flat over that same time period.
Wholesale prices: The prices-paid index, which tracks the cost of purchased raw materials and supplies, increased to a level indicating elevated inflationary pressures at the wholesale level. The wholesale inflation gauge jumped to 70.2 from 69.8 in June.
Business confidence: Looking ahead six months, economic optimism, captured by the business confidence index, advanced to 61.3 from 58.8 in June.
Inventories: Businesses reduced inventories of raw materials and supplies for the month.  The July inventory reading sank to 47.5 from June’s 53.9.
Trade: The new export orders index fell to 43.5 from June’s weak 48.2. Goss said that given the importance of export orders to regional growth, readings over the past two months indicate that exports will dampen growth somewhat in the months ahead. The regional import reading for July advanced to a weak 49.3 from June’s 48.2.
Other components: Other components of the July Business Conditions Index were new orders at 62.5, up from 55.6 in June; production or sales at 62.6, up from June’s 58.3; and delivery lead time at 56.1, down from last month’s 59.3.

Administration Expects Turnaround

August 8,2014

Tulare Regional Medical Center will pay Fresno’s Harris Construction $7.9 million to settle a lawsuit over the construction of their new 5 story tower – as yet unfinished. The settlement, reached July 25, resolves disputes and ongoing litigation between the two parties related to the hospital expansion project and other matters.

In a statement released by TRMC, the hospital said they would pay Fresno-based Harris $3.8 million that had been retained in an escrow account. Another $500,000 was due immediately as well. The hospital will pay the remainder over a 48 month period. With the settlement Harris dismissed demands against TRMC for more monies in the dispute over construction work on a new 115,00sf tower designed to be connected to the older wing of the hospital. Work on the addition started in 2010. Both sides blamed the other for the delay and Harris had claimed in court papers they were owed nearly $18 million. As of March the long lasting dispute that put construction at a standstill, forced TRMC to end the construction contract.

The hospital has faced several year of red ink even as the long delayed tower project scheduled to be complete in 2013, sits unfinished. The community approved a bond to construct the tower but with perhaps as much as $40 million in work still needed to be done to complete it – the district has just under $2 million left out the original $85 million approved by voters.

The shortfall in construction funds coupled with the need to pay more to Harris as well as continuing losses from operations shine a light on an uncertain future for the embattled Tulare hospital. Harris had maintained in their legal filings that they feared they might not be paid for continued work on the tower project with the hospital’s “impending insolvency.”

In recent weeks the district released their June financials that seem to show improvements in net operating income even though the number of patients continue to decline compared to previous years.

Acute patient days year-to-date are 22% lower than they were in June 2013. Year-to-date operating income was $67 million compared $71.3 million the prior year.

Leaving Money On The Table

But Chief Restructuring Officer Tony Jones who has been on the job since January says a turnaround is underway.”We know the car has  run in a ditch but we believe we are on the way to putting it back on the road.”

Jones says the months of April,May and June have been profitable at TRMC in part because of how the hospital now is managing the existing patient load.

“We believe we have been leaving money on table that we ought to be reimbursed for” says Jones, noting plenty of management initiatives that are already paying off in increased collections and reimbursement.

There has been improvement as losses totaled $3 million in the current fiscal year compared $8 million over the same period last year with a new team of administrators now at the helm. On a hopeful note, the district recorded a net gain in June of $2.7 million.

“It’s been a team effort“ suggests Jones. He adds that no staff pay cuts have happened – nor are they planned.

Empty Beds Remain Problem

While outpatient revenue and surgeries are up, the hospital census remains at a historic low with 38.8 patients in the 112 bed hospital in June.

Although the settlement with Harris is separate from other finances at the hospital they are tied together in that money to pay for part  of the settlement will have to come from operations – hopefully future profits.

Regarding the tower the district is expected to ask a new (as yet unnamed) contractor to finish the exterior work on the tower now that Harris will no longer be involved. The TRMC settlement statement says the hospital will put the dispute behind them enabling them to ”move forward with completion of the Project.”

August 8,2014
The chance of El Niño has decreased to about 65% during the Northern Hemisphere fall and early winter says NOAA”s Climate Prediction Center as of August 7. Here is what NOAA says is happening.
During July 2014, above-average sea surface temperatures (SST) continued in the far eastern equatorial Pacific, but near average SSTs prevailed in the central and east-central equatorial Pacific (Fig. 1). Most of the Niño indices decreased toward the end of the month with values of +0.3oC in Niño-4, -0.1C in Niño-3.4, +0.2°C in Niño-3, and +0.6oC in Niño-1+2 (Fig. 2). Subsurface heat content anomalies (averaged between 180o-100oW) continued to decrease and are slightly below average (Fig. 3). The above-average subsurface temperatures that were observed near the surface during June (down to 100m depth) are now limited to a thin layer in the top 50m, underlain by mainly below-average temperatures (Fig. 4). The low-level winds over the tropical Pacific remained near average during July, but westerly wind anomalies appeared in the central and eastern part of the basin toward the end of the month. Upper-level winds remained generally near average and convection was enhanced mainly just north of the equator in the western Pacific (Fig. 5). The lack of a coherent atmospheric El Niño pattern, and a return to near-average SSTs in the central Pacific, indicate ENSO-neutral.
Over the last month, model forecasts have slightly delayed the El Niño onset, with most models now indicating the onset during July-September, with the event continuing into early 2015 (Fig. 6). A strong El Niño is not favored in any of the ensemble averages, and slightly more models call for a weak event rather than a moderate event. At this time, the consensus of forecasters expects El Niño to emerge during August-October and to peak at weak strength during the late fall and early winter (3-month values of the Niño-3.4 index between 0.5oC and 0.9oC). The chance of El Niño has decreased to about 65% during the Northern Hemisphere fall and early winter (click CPC/IRI consensus forecast for the chance of each outcome).