December 2014
The unemployment rate in the San Luis Obispo County was 5.4 percent in November 2014, up from a revised 5.3 percent in October 2014, and below the year-ago estimate of 6.1 percent. This compares with an unadjusted unemployment rate of 7.1 percent for California and 5.5 percent for the nation during the same period.
Year over year Tulare County has 1500 more nonfarm jobs but farm jobs are down by 600. Trade and transportation job are also down year over year by 500.
Seven lawsuits pending against the California High Speed Rail Authority’s plan to move forward on construction of the Fresno to Bakersfield section may have been sidetracked last Friday. The US Surface Transportation Board ruled by a 2 to 1 margin the project could not be challenged in court based on state California Environmental Quality Act (CEQA) rules. The ruling appears to stop state or federal courts from issuing any kind of halt to construction of the rail line since the federal agency has jurisdiction.
The ruing states that “The issue is ripe for a decision because several CEQA lawsuits have been filed and, regardless of Opponents’ suggestions to the contrary, permanent injunctive relief has already been requested and a preliminary injunction could be requested at any time in those pending lawsuits. Moreover, the Authority states that, contrary to the claims of some of the Opponents, it is in the process of implementing and/or procuring construction contracts for a majority of the Line and uncertainty regarding the preemption issue could impact its ability to proceed.”
The Board noted that they already approved the project that has federal funding to move forward back in August.
Regards construction of this leg of the route the Authority has said it is working on a contract with Dragados USA Inc.to build the 65 mile Fresno to Bakersfield route to be signed in the next few months.The ruling appears to increase chances construction could begin soon and not be halted by some court proceeding.
Opponents of the project include the litigants in the seven CEQA lawsuits (County of Kings, Citizens for High Speed Rail Accountability, Kings County Farm Bureau, City of Bakersfield, County of Kern, Dignity Health, First Free Will Baptist Church of Bakersfield, Coffee-Brimhall LLC, and the City of Shafter (collectively, CEQA Litigants)); Community Coalition on High-Speed Rail, Transportation Solutions Defense and Education Fund, and California Rail Foundation (collectively, Transportation Groups); United States Representatives David G. Valadao, Jeff Denham, Kevin McCarthy, and Devin G. Nunes; Senator Andy Vidak and Assemblywoman Diane L. Harkey of the California State Legislature; Friends of Rose Canyon; Madera County Farm Bureau (Farm Bureau); MEL’s Farms; Roar Foundation; Jacqueline Ayer; Carol Bender; William C. Descary; Kathy Hamilton; and Alan Scott.
The federal ruing says opponents can still argue that the state CEQA rules may affect Prop 1A state bond funding sine that is strictly a state of California matter.
“In addition, as we have noted, we do not opine here on whether Proposition 1A requires the Authority to comply with CEQA as a condition of its funding. Whether CEQA compliance is required before the Authority is allowed to obtain or use Proposition 1A funding is a question of state law for a state court to decide.”
Cigna Jobs Await Senate Vote
It’s down to wire on whether Congress will pass a spending bill that includes a provision added to it that will save Visalia 700 jobs. In a nailbiter the House passed the ominbus bill Thursday by a vote of 214 -212 and now the matter will be headed to the US Senate. President Obama has said he will sign the bipartisan bill.The bill includes what is called a technical fix to Obamacare that would allow health care plans like Cigna- with an office in Visalia – a waiver for their expatriate members to be exempted from ACA rules.Visalia lobbyist Greg Burns of Van Scoyoc Associates says if the Senate balks – there would be a short term bill instead that may not include the expat provisions – leaving our jobs at risk.Cigna has said without a waiver of the Jan 1, 2015 ACA rules – they would close the Visalia office.
Seaport Airlines To Start Visalia Service To Oakland /Burbank
This week Visalia learned that the U.S. Department of Transportation approved the award of an Essential Air Service contract to
to Seaport Airlines for a two year period starting January 1. 2015. Seaport will provide 12 nonstop round trips per week to Oakland and 12 nonstop round trips per week to Burbank (24 total round trips per week), using 9-seat Cessna Caravan aircraft. The annual subsidy will be $1,990,563. Great Lakes Airlines who had the previous contract served LAX only and bid higher than Seaport who will be serving both the LA area and the Bay Area, the first time Visalians can access routes north and south since United Airlines served the community some years back.
High-Speed Rail Authority to Host Official High-Speed Rail Groundbreaking Ceremony on January 6
Sacramento, Calif. – The California High-Speed Rail Authority will join government, community, transportation, business and labor leaders on Tuesday, January 6, 2015 to commemorate the start of sustained construction on the nation’s first high-speed rail system at a ceremonial groundbreaking in Fresno.
Bid On High Speed Rail Construction Through Kings County Below Estimate
The California High-Speed Rail Authority has identified Dragados/Flatiron/Shimmick as the apparent best value team for the design-build contract for Construction Package 2-3 (CP 2-3), the next 65 mile segment south of Fresno through Kings County. While estimates put the cost of this segment at $1.5 billion to $2 billion, the bid came in at $1.2 billion, the “apparent best value.”
Jeff Morales, chief executive of CHSRA credited the low prices to strong competition.Tutor Petrini who is building the first 29 mile section north of Fresno came in at $1.7 billion.The Spanish-led Dragados team includes Colorado-based Flatiron Construction(who built the West 198 Expressway) and Oakland-based Shimmick Construction. The Kings Co segment through farmland will cost around $19 million per mile compared to first segment that will cost about $34 million per mile – in part because it begins in urban Fresno. Still the Kings County segment has been the most controversial with strong opposition and litigation from farmers and the County. To date they have not stopped the statewide project.
December 10,2014
The City of Visalia was notified Tuesday that prospects now “look good” for Cigna and other insurers seeking expatriate provisions in a Senate bill to be voted on later this week. Cigna employs 700 in Visalia and had said they could close the Visalia office if their waiver request to the Affordable Care Act was not granted. Concerned about the loss of a major employer Tulare County officials have been busy lining up support for the waiver.
Visalia’s Washington lobbyist Greg Burns Vice President at Van Scoyoc Associates emailed City Manager Mike Olmos Tuesday,December 9. The email from Olmos says as follows.
“Council, we were notified by Greg Burns this evening that the Cigna expatriate provisions were added to the Senate Omnibus Funding Bill as we had hoped. While this is a more roundabout way of getting it through (in comparison to the “hot line” process that requires all Senators to agree to passage, and Senator Cruz opposed), the likelihood of the Omnibus bill passing in some version is high, and the expatriate provisions are not expected to hinder it. Greg has spoken with the Cigna folks in DC today and said they are pleased. So, while we’re not out of the woods yet, prospects for getting the expat fix made are now very good.”
The waiver is sought for large insurance companies including Cigna who have a sizable expatriate customer base overseas now impacted by Obamacare as of January 2015. The health care law requires certain mandates that their foreign competitors don’t have to comply with.The waiver would affect plans that cover people working outside their home country, including foreign employees working in America or Americans working abroad.
Cigna says they have about one million Americans who work overseas and get their care there that will be subject to rules like free preventive care that foreign-based insurance plans don’t have to offer. That puts US-based insurance firms at a competitive disadvantage, they argue.
Deal Allows Relocation Of Hanford Fertilizer Firm Making Way For Costco Development
The City of Hanford has penned a letter of intent with Helena Chemical to trade 25 acres, owned by the city in the Hanford Industrial Park,for the fertilizer company’s 18-acre site on East Lacey near the proposed new Costco shopping center. City Manager Derrel Pyle says the land swap assures the huge Costco retail project moves forward after the developer put the project on hold. The city council had previously allowed Helena to expand at their current site prompting a standoff with the Costco developer.
Instead, Pyle helped put together a “win win” for all parties, he says, with Helena getting a larger site to expand operations and the city ending up with property meant to be “regional commercial” in the new General Plan.
Pyle says to expand traffic flow near Lacey and Hwy 43 for the Costco project – road improvements will wipe out the Helena truck scale and office building and “you have to wonder whether it made sense for the city to rebuild these structures or work on a relocation.” Pyle estimated that the phased relocation could take 2 years allowing the big Costco deal, key to new city sales tax monies – to move forward. In addition the city will be able to market what will become valuable land adjacent the new development.
Navy Accelerates Strike Fighter Schedule – Adds 30% More Personnel
The US Navy has accelerated plans to bring in two more squadrons from the East Coast in preparation for basing F-35 fighter planes in NAS Lemoore with 100 F-35s arriving sooner – not in 2018 but by 2016. The increase in support staff would be about 30% higher than today.The basing of the F-35C fleet is estimated to require 751 new military and contractor personnel for mission support,” says congressman David Valadao.“With an estimated $35.5 million in annual payroll, this will inject much-needed economic stimulus into our suffering region.” Under the Navy’s new plane about two-thirds of the Navy’s strike fighter planes will be based here on the West Coast with one-third on the East Coast.
Kings EDC Lobbies City Of Lemoore To Return To Fold
Kings County Economic Development President John Lehn will address the Lemoore City Council this week in hopes of convincing the city to rejoin the countywide job development group. Lehn says the city has declined to renew their membership choosing concentrate on bringing in more retail developments instead of industry. ”It just make sense with their new freeway interchange that connects to the Lemoore Industrial Park that you might want help fill lots there. We believe industrial jobs will help attract more retail.”Lemoore is home to the county’s largest industry – Leprino Foods.
Hanford Listed as One Of Nation’s “Least Educated Cities”
The pursuit of higher education is more common in America today than in previous generations. According to the National Center for Education Statistics, roughly 41% of Americans aged 18 to 24 were enrolled in a two- or four-year degree-granting institution, far more than the 25.5% enrolled in 1967. As of last year, nearly 30% of all American adults 25 and older had attained at least a bachelor’s degree.
But nationwide some cities have yet to catch the trend including two in California says Yahoo News this week. Hanford is 5th Least Educated City in the US with that less than 13% of adults living in the Hanford metro area having attained at least a bachelor’s degree, way below the national rate of 29.6%. More than 21% of area residents earned incomes below the national poverty line last year, among the higher rates nationwide. Less than 4% of area adults had graduate degrees.
November 22,2014 –
Mooney To Get Large Shoe Chain Next To ToysRUs
San Jose-based Shoe Palace will open a large new store on mid Mooney in 2015 next toToysRUs. A plan filed with city this week shows the demo of the existing office buildings just south of the toy store and a new 11,100sf building that will replace it. The fast growing company specializes in athletic footwear.They are opening as well in San Luis Obispo. The civil work is being done by Fresno’s Lars Anderson.
Collins Appeals Plaza Drive Project In Visalia
Visalia City Council member Greg Collins has appealed the recent Planning Commission approval of a mixed-use development on Plaza Drive.“It turns out a council member can make an appeal – but when it comes back to the council to be heard – I can’t vote.”
Collins says the project offers” both small business spaces and residential units – developments we have an abundance of elsewhere in town we are trying to fill.”The Square at Plaza Drive is a 25-acre plan that includes a 65-room hotel, 10 office buildings, a gas station-convenience store complex and 23 townhouses.
The office buildings would include a three-story building with retail shops on the first floor, office space on the second and 28 apartments — or “executive lofts” — on the third floor.
Main Street To See New Hamburger Restaurant
What was Mike’s Cameras in Downtown Visalia will become a gourmet hamburger restaurant says architect Larry Lewis who is working on the remodel of the place at 105 E. Main.No name has been settled on.
Restauranteurs James and Michelle Jessen who own Tazzarria will open their fourth eatery in town by next Spring. Mike’s Camera closed in July after being in business since 1977.The Jessens have purchased the building.
JD Heiskell To Shutter Tulare Mill
With less wheat being grown in the Central Valley JD Heiskell plans to mothball their Tulare mill next year. That’s the word from CEO Scot Hillman who says the move is likely to happen by March. The company is building a new office nearby. California’s 2014 winter wheat production is estimated at 432 thousand tons, 48 percent below 2013.
The company has 11 locations around the country and is the nation’s fourth largest feed manufacturing company by volume. The Tulare mill was the company’s first but could be put back into service if the wheat crop rebounds adds Hillman.
Rawhide Attendance Up
Rawhide baseball attracted a season attendance of 125,471 at the Visalia stadium this summer – up from 118,177 fans in 2013 and 108,681 in 2010. The company took in $1.44 million.
Darrel’s Mini Storage Breaks Ground On Third Visalia Location
Darrel’s Mini Storage has obtained out a $2.2 million building permit to construct a 201,400sf mini storage complex off Goshen and Demaree. The new facility is expected to open a year from now.
Orthopedic Firm Moves To Akers/VUSD Taking Mooney Space Across From COS
Hanger Inc, an orthotic and prosthetic patient care service has relocated to the new medical office building at 820 S Akers, next to Lifestyles.The firm moved from the building across from COS at 750 S Mooney. Now VUSD has purchased the building, long the home of Visalia Sight & Sound,and will remodel it for use for student independent study.
RFQ For Third Leg of Bullet Train
The California High-Speed Rail Authority this month issued a Request for Qualifications (RFQ) for design-build services for Construction Package 4 (CP 4), representing the next 30-mile phase of construction through the counties of Tulare and Kern and the cities of Wasco and Shafter.“The Authority continues to deliver on its voter-mandated mission to build high-speed rail in California that will connect the major regions of the state through the Central Valley,” said Jeff Morales, CEO of the Authority. “As we have already seen with the ongoing construction work in the Central Valley, high-speed rail is creating jobs, small business opportunities and benefitting the local economies.”
Firms will have until January 30, 2015 to submit their statement of qualifications.
– But Fears Persist For New Year –
November 19,2014 –
Concerns that a lack of surface water for Central Valley farmers this summer would lead to a massive bulldozing of dead citrus trees and a huge hit on the local economy did not come to pass after all.
Widely quoted remarks from June that as much as 50,000 acres of Valley citrus could be lost due to lack of state and federal water deliveries from the Exeter trade group California Citrus Mutual (CCM) thankfully were wrong.
Contacted this week Citrus Mutual VP Bob Blakely says their current estimate is that about 6,000 acres of citrus trees were pulled over the past 5 to 6 months.
“Our original 50,000 acre number related to citrus trees at risk” he says.
A 50,000 acre loss would of course had a major impact considering SJV navel orange bearing acreage stands at about 126,000 acres as of 2014/15 says USDA. Navels are by far the largest citrus variety.
Blakely says a large portion of those 6000 acres of trees removed were the Valencia variety – on the decline for the past few years. In the past, removal of these trees was based on lack of popularity and profitability – not water. By location, citrus trees were pulled this summer from hard pressed areas like Terra Bella where there was no groundwater available as an alternative.
Emergency water trades, deeper wells and water purchases helped save the day up and down the east side.
Asked if the state’ number one grower Paramount Citrus pulled trees Blakely said he understands they did. Paramount removed whole blocks of trees in southern Tulare County according to reliable sources.
Tulare County is the state’s number one citrus producing county. By the last count in 2013 the county had around 76,000 acres of navels, 17,000 acres of Valencias, 7000 acres of lemons and 14,000 acres of tangerines for a total of around 116,000 bearing acres. That does not include the young trees – over 2000 acres not yet in production.
Blakely says the new citrus crop is now about a month into the picking season and the fruit is slightly smaller than normal but high quality. ”It is moving well and there is good demand.”
USDA has forecast a California navel crop of 78 million cartons this winter – down from 81 million cartons in 2013, a small decline in expected volume based on those earlier fears of a calamity.
But that calamity still could happen.
Asked about the estimate in September CCM’s president Joel Nelsen released a statement.
“After canvassing a significant number of producers and shippers, CCM believe the crop estimate is high,” CCM President Joel Nelsen said in a statement issued Sept. 11. “We know acreage has been removed from production” due to the drought, “but getting figures for a range has been difficult. We know the lack of water has affected fruit size during the growths stages, but surveying 126,000 acres is almost impossible. We also agree there is more fruit on the tree as compared to last year” in terms of the number of pieces of fruit. “However fruit size is a concern. All of this affects the number of cartons ultimately packed.”
At the time of the 50,000 acre estimate in June – CCM was part of an organized effort to shine a light on state and federal policy they said played a big role in the zero allocation of surface water this year. For the first time ever the Friant Kern Canal that feeds the east side of the valley did not deliver water from Friant Dam. Water contractors have sued the state over the state role in the decision.
CCM’s media campaign included a news conference hosted by them at a ranch of a Kern County grower who was removing 60 acres of Valencia trees which he said could not last through the summer without water. TV cameras were rolling as the trees were bulldozed. A Bakersfield news report added “California Citrus Mutual will spend the summer highlighting the catastrophe with press conferences in hot, dusty citrus groves. This will illustrate for local and national media the failure of California and federal water policy.”
Nursery Backlog
Contacted this week the Kern farmer – John Gless says he plans to plant the open 60 acres with Cara Cara oranges, a popular variety but has to wait because “there is a 2 year backlog on orders from the nurseries.”
Supply of citrus nurseries was hit last winter as the freeze killed thousands of young trees both affiliated with nurseries and in farmer’s fields. Now nurseries face quarantines measures and a requirement to grow young trees under screen to protect them from the ACP (psyllid)
pest.
Exeter nurseryman Roger Smith of TreeSource says “growers are now facing a new reality like the walnut growers have had to do for a while now.Order well in advance.” Smith says trees to be planted in 2015 are sold out and” early next year will be sold out for 2016.”
“That said, even if we planted them tomorrow betting we will have water, it takes five years to produce fruit”John Gless adds.
Gless says the family-owned enterprise could only survive this past year because they were able to purchase water “at an exorbitant price”- some at 10Xs the price at $1250 per acre ft.
”We leased land to get water rights and drilled new wells – some down to 2000 ft. Otherwise,we would not have made it.”
“If we don’t have an extremely wet winter I don’t know how we survive.”
November 13,2014-
Easley’s Gun Shop will relocate to about one third of the former Surplus City space on Main Street in Downtown Visalia.Owner Seth Richmond who has owned the company since August of last year, says they will lease about one third of the space there.
“We plan to change the name to The General’s’ 
Trading Post and broaden our merchandise – go for the mini-Cabela approach” he says. “We expect to offer hunting gear, man-cave stuff and local furniture.”
As to the timing “we hope to be open by the first of the year.”
Owners of the building are negotiating with several prospects for the remainder of the space.
