Category: Central Valley

Jobless Rate Falls

The unemployment rate in the Tulare County was 13.4 percent in April 2014, down from a revised 15.6 percent in March 2014, and below the year-ago estimate of 13.6 percent. The rate would  be lower if not for 3500 fewer farm jobs in April 2014 compared to April 2013, likely due to drought.

Mortgage Rates At New 2014 Lows

Mortgage rates fell this week as the European Central Bank appears to be wanting new round of easing in June. Mortgage Daily explains” more accommodative monetary policy in Europe makes European government debt more attractive.  Germany is the benchmark for EU government debt and when demand rises, US Treasuries benefit as well. When demand for US Treasuries rises, the bonds that underlie the mortgage market also improve, resulting in lower rates. In short, there’s a domino effect leading from anticipated easy money policies in Europe all the way to mortgage rates in the US.”
The US 10-year note hit a 6 month low and mortgage rates fell to 4.17% in the past few days. Predictions had suggested as the US economy improved,mortgage rates would get back to the 5% level. That has not happened which is bullish for home buyers and those who want to refinance.

Gas Prices Keep Falling

Gas prices have fallen over 10 cents since May 1 says Gas Buddy. Porterville’s Eagle Feather Trading Post continues to have among the lower prices in the state at $3.79 per gallon Thursday. Helping to drives prices lower is the increase in drilling for oil in the US, particularly in Texas.The Permian Basin, a long time oil and natural gas-producing region in West Texas and southeastern New Mexico, has seen a significant increase in horizontal oil-directed drilling activity over the past five months accounting for 50% of the total increase in the United States says the EIA. That same agency also points to high profitability of US refiners. “North American refiners’ earnings per barrel processed were more than $7 per barrel higher than their European competitors in 2013, based on an analysis of 26 energy companies who file reports with the U.S. Securities and Exchange Commission.”

Orosi To Get AutoZone Store

Bidding to construct a new 7000sf AutoZone store in Orosi was finalized earlier this month with building moving forward this summer.

Tulare Hospital Bond Oversight Committee Member Stays

Tulare Regional Medical Center’s Bond Oversight Committee member Alberto Aguilar, who has been a critic of spending at the district, will remain on the committee despite efforts to oust him. Aguilar will stay but not participate in closed sessions discussing Harris Construction who is at odds with the hospital over the tower project.  Aguilar had communicated with Harris in the past.Other members said he should support the hospital but Aguilar said he was just doing his job overseeing a dwindling bond fund to build the tower. The latest district report shows all $85 million bond monies voted by the public has been expended on the unfinished project with about $1.8 million left in interest income as of 4/30/2014.

Drought Plan: If money talks, then Southern California consumers should hear a louder call for water conservation with increased financial incentives being offered by the Metropolitan Water District this week that doubles the incentive for turf removal from $1 to $2 per sf, as well as extended rebates for rain barrels and high-efficiency toilets. The district serves 19 million people. The City of Visalia is likely to ban water gulping turf varieties like fescue on new residential units say several council members.

Affordable Care Act has new enrollees in Tulare County where 9832 signed up through March 31 of which 9374 were eligible to get a subsidy. Fresno County signed up 23,164 and Kern County numbers were 18,083. Some 2,160 from Kings County signed on. Statewide almost 1.4 million enrolled in the California version of Obamacare.

More Visitors to Sequoia according to NPS.Total recreation visits jumped 30% in April from the same month a year before

Kings County’s population as of January 2014 was 150,181.Of that almost 14,000 were prison inmates and nearly 7000 lived at NAS Lemoore.

Visalia to get $330,000 from the California Energy Commission to upgrade its CNG fueling station in town.

Exeter came in number 8 in Cities Journal Top 15 Small Cities In California list. It says Exeter enjoys “unofficial status as the citrus capital of the whole world.”

Some $242 Mil in Spending Planned,751 More Personnel

On May 15 the US  Navy published a Notice of Availability in the Federal Register concerning the Final Environmental Impact Statement (EIS) for the west coast home basing of the F-35C aircraft. The report that will made final after a 30 day comment period, selects Lemoore over El Centro as their preferred alternative for the basing of the jets.

“This alternative best meets mission requirements; optimizes operational efficiencies related to personnel, training, and logistics support functions; maximizes the reuse of existing facilities and minimizes the need for new construction; and preserves NAF El Centro as a valuable training asset.”

The report says “ the purpose of the proposed action is to replace aging Navy Pacific Fleet FA-18 Hornet aircraft with F-35C aircraft while meeting pilot training and readiness requirements. Facility development needed to support F-35C homebasing may begin as early as 2015. Seven Pacific Fleet FA- 18 squadrons (70 total aircraft) currently based at Naval Air Station (NAS) Lemoore would progressively transition to the new F-35C aircraft beginning in 2015 with the transition to be complete by 2028.”

The plan would also involve the establishment no earlier than 2017 of an F-35C Fleet Replacement Squadron consisting of approximately 30 F-35C aircraft to meet the requirements for training Navy pilots.

Aircraft loading at NAS Lemoore would increase by 30 aircraft.

The F-35C is a single-engine aircraft, equipped with state-of-the art technology that makes it more difficult to detect on radar, and capable of greater communication with other airborne and ground-based units. The Navy version can fly off aircraft carriers.

Big Spending,751 More Personnel

Under this plan proposed construction at NAS Lemoore includes 16 projects: 5 training facilities, 10 operations and maintenance facilities, and 1 personnel support facility. Building 21, an operational storage facility, would be demolished to accommodate the layout of proposed new facilities and infrastructure. In addition, two projects would be required at NAF El Centro to accommodate F-35C squadrons from NAS Lemoore conducting detachment training operations at NAF El Centro: interior hangar renovations and a Special Access Program Facility. Approximately 1.6 million square feet of construction, expansion, and modification projects would be required. The total cost for all the projects at NAS Lemoore and the two projects at NAF El Centro is estimated to be $242 million. Proposed construction would be phased over multiple years, with several projects beginning in 2015 and the last project starting around 2025. The total area that would be disturbed by construction at NAS Lemoore is approximately 58 acres.

The preferred plan  would result in an increase of 751 military and contractor/civilian personnel at NAS Lemoore. Unlike Alternative 1, Alternative 2 would not require any changes in personnel at NAF El Centro because there would be no change in the mission or the number of aircraft supported at NAF El Centro. Personnel who are currently supporting aging FA-18 squadrons at NAS Lemoore would remain at NAS Lemoore while transitioning to F-35C squadrons. Based on this increase of military and contractor/civilian personnel, there would be an increase of approximately 1,569 dependents (1,145 military dependents and 424 contractor/civilian dependents). Overall it would result in an increase of approximately 2,320 persons (751 military, contractor/civilian personnel and 1,569 dependents) in the Lemoore area by 2028.

The majority of the Visalia City Council is backing a preliminary plan put forward by member Greg Collins to lay out the new Civic Center facing a planned park and waterway. The council earlier this month( May 5) approved the location of the first building in the east Downtown plan. The Visalia Emergency Communications Center (VECC) along School St. will cost $15 million and be completed by December 2015.
In its approval, Council also requested to retain the 50-foot offset of the Jennings Ditch to retain the landscaping and future potential trail and enhance the park-like setting of the area.
Collins argued to help create excitement over the plan and draw in private development he wants to do a multi-year plan to construct the streets and lay out the area around a centerpiece, the new Civic Center facing an oak-studded green area and lake.He would invite the private sector to participate but not spend the millions it would take to build a new Public Safety building there, saving to construct the new Civic Center. To bolster finances he would sell off a number of city owned properties in the Downtown area including the current planning building, east of the Convention Center.There he would invite a hotel to build – bringing in more conventions to the city.

Collins’ design, shared with council, suggested buildings be located up to the sidewalk with parking behind.His plan shows parkland and several blocks where the city would work to attract private sector construction of retail office and restaurant  uses.

High Speed Rail Board Certifies EIR for Fresno To Bakersfield Route

May 7,2014

FRESNO, Calif. – The California High-Speed Rail Authority (Authority) Board of Directors today certified the Final Environmental Impact Report/Environmental Impact Statement (EIR/EIS) for the Fresno to Bakersfield project section of the high-speed rail program and approved a high-speed rail alignment within the Fresno to Bakersfield project section. This allows the Authority to take additional steps toward continuing major work on the project from Fresno to the south. Today’s action also approved the preferred alignment from the southern edge of the already-approved Fresno Mariposa Street station, swinging east of Hanford and down to the 7th Standard Road in Kern County northwest of Bakersfield.

Today’s proceedings followed a day of comments by the public on the final EIR even though the California law – CEQA requires public comment only on a draft EIR explained the counsel for the Authority.

Dan Richard Fires Back

Responding to familiar criticism that the final EIR adoption was “being rammed through” with no time for public review – chair Dan Richard pointed out the agency was operating by the same rules as all public agencies and the public has had many months to examine the draft EIR.

Regards criticism that “California High Speed Rail would destroy Valley agriculture” Richard pointed out the route would mean the loss of 3500 acres of ag land in the 4-county region while Fresno city, in the past 40 years, has allowed the development over the top of 50,000 acres of farmland. Further he said, a study predicts if trends don’t change 173,000 acres of Valley farmland of will be converted to urban uses.
Richard says high speed rail has the promise to revitalize city downtowns to help them ”reduce urban sprawl,”  ag’s biggest enemy.

Richard also alluded to air issues saying “children coming to school in Hanford often arrive with their inhalers” adding that “21% of Valley kids suffer from asthma due to poor air quality.”

”That happened long before high speed rail” pointing out that the train could be part of the solution.

Richard alluded to opponents in Kings County who have joined with  the County to sue to stop the project. Richard said they have “reached out” to try to work out differences suggesting that process has worked virtually every where else in the Central Valley with farm groups and environmental groups including in Bakersfield where the CHSRA and the City are now in talks.

Legal Face Offs

He said the final EIR was delayed to try to work out differences with Kings County but now “I doubt that will ever happen.” He said opponents have” demonized” the rail board.

“Kings County won’t let us do work on soil sampling along the route on public lands  and we will probably have to go to court” to move forward.

In another legal wrangle the King County suit to stop the project by freezing state bond sales, having been appealed from the trial court, will get a hearing at the Third District Court of Appeal Friday, May 23, 2014, at 9:30 a.m. with each side allotted a total of 30 minutes  for oral argument in front of a panel of judges. A decision should follow.

An alternate source of state funding has been proposed by Governor Brown that is being talked about in Sacramento using cap and trade (pollution mitigation) funds that could be part of the 2014-15 state budget.

On Tuesday the Authority staff defended the route selected noting that Highway 99 alignment was strongly opposed by Union Pacific railroad and as far as I-5,that route would not serve the substantial population centers in the Central Valley already boasting more than a million people between Fresno and Bakersfield.

The Fresno to Bakersfield high-speed rail section is approximately 114 miles long from south of the terminus of the Merced to Fresno project section to north of the City of Bakersfield. The preferred alternative is comprised of the Burlington Northern Santa Fe alternative (BNSF), the Corcoran Bypass alternative, the Allensworth Bypass alternative and the Bakersfield Hybrid alternative. Proposed stations are identified as the Downtown Bakersfield station on Truxtun Avenue, and the East of Hanford/west of Visalia station option located near State Route 198.

Unanimous Vote

On Tuesday, the Board of Directors heard a staff presentation and took public comments on the Fresno to Bakersfield Final EIR/EIS. After deliberations, today the Board of Directors considered whether to certify the document under the California Environmental Quality Act (CEQA) by approving the project to 7th Standard Road and adopting document required under CEQA. The Board then voted unanimously to certify the Fresno to Bakersfield Section Final EIR/EIS. Then they unanimously approved a high-speed rail alignment within the Fresno to Bakersfield project section.

Responding to criticism that construction  of the route would raise air issues the board announced an agreement with the Air Board that would certify construction  would have a “net zero affect” on air quality through various mitigation efforts.

In the next step, the Federal Railroad Administration will consider approving the project and issuing a Record of Decision under the National Environmental Policy Act, anticipated in June 2014.

 May 7.2014

VISALIA – This summer, work on the new middle school, a two-story classroom building and playgrounds is slated to begin in Visalia Unified School District, thanks to Measure E.

 The new 17,300-square-foot, 16-classroom academic wing at Redwood High School should break ground this summer, if state approval of the designs moves forward as expected. The building, designed by Robert Thornton of Teter AE, Visalia, will be located at the northeast corner of the campus.  It is expected to open in August 2015. The general contractor is Seals/Biehle, Inc., of Visalia.

 The building is estimated to cost over $7 million. If the statewide education bond passes in November, VUSD will be reimbursed nearly $4 million, which can be used to fund additional projects on campuses throughout the district.

 Plans call for site work to begin this summer on the new middle school, to be built at the northwest corner of Riggin and Akers in northwest Visalia. The architect is SIM Architects of Fresno; the builder is Oral E. Micham, Inc., of Woodlake. The campus, slated to open in 2016, will cost an estimated $35 million, but if the state bond passes in November, VUSD will be reimbursed over $19 million.

 Meanwhile, a variety of smaller projects will also be under way this summer. Mineral King, Linwood, Elbow Creek, Goshen, Mountain View and Hurley elementary schools, as well as La Joya middle school and the Visalia Adult School will receive new fencing to create one access point and provide enhanced pedestrian safety.

 New playgrounds will be constructed at Elbow Creek, Golden Oak, Ivanhoe, Mountain View and Houston elementary schools to improve safety and provide access for disabled students.

 For further information Measure E-funded projects, contact Robert Groeber, 730-7529, or Craig Wheaton, 730-7522; or visit VUSDEprogress.org.

May 5,2014
It’s a May surprise in drought suffering California this week with several storms bringing light precipitation to Northern and Central California’s Sierra.Tahoe snow forecaster  Bryan Allegretto says on his blog today “snow levels will drop below lake level overnight Monday and we could see a coating to an inch on cold surfaces.  The snow showers will linger through the day on Tuesday as the low swings through.  We could see 1-3 inches in total on the mountains on the East side of the lake and 3-6 inches on the West side by Tuesday evening.  Highest amounts above 8000 ft. along the crest.” He says another system will be impacting the northern part of the state Thursday and Friday with some light showers as far down as Tahoe.

NWS Hanford is suggests Monday and Tuesday will wet the Central Sierra perhaps impacting just opened Tioga Pass.Here is what they say this morning.

“AT 1615Z /0915 PDT/…SATELLITE LOOPS SHOWED THE APPROACHING
UPPER-LEVEL TROUGH MOVING INTO NORTHERN CALIFORNIA. AHEAD OF THE TROUGH…WINDS ARE FORECAST TO INCREASE OVER THE MOUNTAINS AND  DESERT AREAS. ADVISORY-LEVEL WINDS ARE FORECAST OVER THE SOUTHERN SIERRA NEVADA HIGH COUNTRY BEGINNING THIS AFTERNOON…WITH SNOW  BEGINNING BY LATE AFTERNOON. THE 06Z WRF AND 12Z GFS FORECAST YOSEMITE TO RECEIVE A STORM TOTAL OF AROUND 4-6 INCHES OF SNOW IN TWO WAVES…THE FIRST THIS AFTERNOON AND TONIGHT AND THE SECOND WAVE TUESDAY AFTERNOON AND EVENING. THE MAIN IMPACT WILL BE ON TIOGA PASS WHICH HAS ONLY RECENTLY REOPENED. ALSO…DUE TO THE  LATENESS OF THE STORM…LATE-SEASON WINTER WEATHER CRITERIA ARE IN EFFECT. RATHER THAN FINESSE WIND AND WINTER PRODUCTS…HAVE OPTED TO ISSUE A WINTER WEATHER ADVISORY WHICH WILL COVER THE PREFRONTAL WIND INITIALLY AND THEN THE TRANSITION TO WIND AND SNOW LATER TODAY AND CONTINUING SNOW TUESDAY”

May 2,2014

Brighter Times Ahead for Central Valley Says Economist

Chris Thornberg, founding partner at Beacon Economics LLC in Los Angeles, spoke at the annul Sequoia Valley Economic Summit held Friday in Tulare. Thornberg says he is bullish on the national economy and  plays down low first quarter growth numbers announced recently expecting they will be revised upward. Likewise in California Thornberg is “reasonably bullish” suggesting the negative business climate talks have been overstated. Regards news that Toyota will leave California  for Texas taking several thousand jobs with them, he says “Toyota has been beat-up pretty bad bad in the past year and needed to consolidate.” adding that the  Japanese car maker came to California “when they were exporting almost all their vehicles to the US.Now they are making most of them in the South and it makes sense to have administrative offices nearby.”
”Besides,Texas paid them a pile of money”
Locally,Thornberg discounts the notion that people are leaving the Central Valley because of a depressed economy.”Bakersfield has the fastest growing economy in the state” and although Tulare County’s growth is not as fast – “employment is growing, real estate has come back,tourists are coming here and the ag economy, despite the drought is strong.”
“I expect to see the water markets open up to allow trades from wetter areas.” Still, he says the local economy” could use more of a bump.” He adds the area lacks higher education options but the educational results from our existing schools show improvement, a good sign.

Gas Prices may have peaked say both oil economist Tom Kloza and local oil exec Walt Dwelle. As of this week California prices have been lower for just the past few days after rising more than 65 cents since early February. Kloza he expects gas prices to be cheaper by Memorial Day than they will be on Cinco De Mayo. Visalia’s Walt Dwelle, whose family owns the Flyers chain, says he expects prices to moderate now that both oil prices are lower and the summer fuel blend conversion is over. “I would look to a 15 or 20 cents decline over the next month” Dwelle says. While the summer driving season usually means higher demand we are using less gasoline than a year ago because of fuel efficiencies. Gas Buddy sees wholesale prices dropping this week, a sign of future lower prices at the pump.

Home building permits in Visalia jumped to 51 in April compared to 34 in April 2013,the highest monthly total so far this year. For the year the number of new single family home permits is up 19% and valuation is up 30%.

Lovers Lane Commercial Center

Visalia Planning Commission will take up a conditional use permit application from Coachella Valley developer Singh Chandi who wants to build a commercial center on the eastside of Lovers Lane on 12 acres ,some 310 ft from Noble Ave.  Chandi seeks to develop 6 parcels including a gas station, fast food with drive-thru,three story hotel, drug store with drive-thru totaling 106,400sf. Chandi has developed a number of projects that typically include an Arco station and Del Taco eatery.

Dinuba was the fastest growing city in Tulare County says the state Department of Finance with a January 2014 population estimate of 23,666, up 2.5% in a year.The County as a whole grew by 0.7% with the City of Tulare recording a 1% gain.The City of McFarland in Kern County was the fastest growing city in state but that was due to more prisoners locating there. Avenal was one of the big losers but again due to fewer prisoners.