Category: Central Valley

Staff of the California High Speed Rail Authority announced their preference for a west-of-Hanford rail alignment and station just east of 13th Ave,north of 198 earlier this Spring.The rail alignment and station would be located below grade says the staff report in a 3 mile, 40-foot-deep trench to keep noise down as the trains speed through this populated part of the county near Armona.

But a key issue that appears to have escaped the attention of the engineers and planners could literally sink the idea.

Kings County just west of 13th and spanning a large swath of the county has a high impermeable clay layer – close to the surface – pooling groundwater a mere 10 to 15 feet below ground level says Kings County Water District general manager Don Mills.

“It’s an anomaly in this area.”  Across the railroad tracks toward Hanford ground water is at 100 feet or more he says.

Asked if the CHSRA representatives knew about the shallow water, Mills noted that “I don’t know why they did not check with us or any local agency I know of.”

The water district has a groundwater map that shows groundwater depth measurements made last fall showing levels 160 to 200 feet in Hanford and east of Hanford as well – but a sudden raised clay layer generally west of the BNSF tracks at 198.The shallow water pool runs north and south from Flint Ave to Kansas,some 11 miles and is around 4 miles wide to the east and west – spanning 13th to 17th Ave. Altogether this sprawling, raised clay layer is 40 to 50 square miles.

Kings County civl engineer John Zumwalt says the perched water in this area is well known locally as irrigation water hits the clay layer and stays there.

Zunwalt says where the two levels meet near 13 Ave there is sudden drop off that can create almost a waterfall effect as the groundwater rushes to the lower level.

No mention of the shallow water levels along the potential rail corridor  is made in the CHSRA reports reviewed by this reporter.The EIR refers to the average groundwater levels in the Hanford area as 60 ft or more and displays a chart of depth to groundwater that lists Hanford at 100 to 120 ft.

Mills and Zumwalt each caution that they are not engineers and assume one could build a water tight tunnel to run the train in but offer the that the higher water levels could have complicating implications and unanticipated costs.

Ironically the April staff recommendations suggested building the western bypass route had:
-”fewer impacts to aquatic resources than the BNSF Alternative and generally incorporates the least impacts to aquatic resources of the individual geographic alternatives.
Fewer construction impacts such as noise, farmland, air quality, cultural resources, parks, than the BNSF Alternative;
– Least constructability issues and lowest cost alternative  adding that the estimated cost of the Preferred Alternative was about $800 million less than the BNSF route.”
After hearing the staff recommendation in April the board of the CHSRA was expected to vote in May,then postponed to June on whether to endorse the staff.

Instead the item was again pulled from the June agenda.

A few weeks ago board chair Dan Richard visited the Kings Board  of Supervisors and said the board was now “neutral”on which alignment to select.“Right now, we’re not leaning toward either one,” Richard said.

Sources say the board has by now been made well aware of the shallow groundwater issue and that may be a reason why they have backed off the western route choice.

Meanwhile Tulare County and Visalia have been lobbying the board members to take a new look at the east-of-Hanford station site at 43 and 198,12 miles closer on a round trip basis from Tulare County.
Supporters of an east side route says it will better serve the 1 million people who will be living in the area in the future- almost two thirds of them well east of the station;It is a faster route. Add up these two factors and ridership will be much higher; impacts with dairies can be mitigated in two thirds of the cases by simply relocating the manure water line,not impacting the dairies overall.

There was never a noise issue east of Hanford and no plan to trench the track.

If there are construction issues on a western route and the Authority wants to stick with that alignment – CHSRA might be forced to build the station and track at ground level.

Feed Manufacturing Operation Likely

Hoping to benefit from discount prices on grain and corn shipped by 100 car unit-trains to California from the Midwest – fast growing poultry farmer Pitman Family Farms is negotiating to buy 110 acres of city-owned land in the Hanford Industrial Park.

“They want to build a giant rail spur and this the largest piece of land they could find next to rail line” says Hanford City Manger Darrel Pyle.

The matter came up at this week’s closed door Hanford City Council meeting but Pyle says his council directed him to go ahead and get an appraisal of the property in order to move forward on a sale.

The land includes three APNs near Iona Ave at the BNSF rail line.

“This land is property we owned through our redevelopment agency and now the successor agency and the state has ordered us to dispose of them as soon as feasible.”

Pitman Family Farms, based-in Sanger, has poultry growing ranches   throughout the Central Valley and processes their birds – turkeys, chickens and ducks at a Sanger processing plant that has undergone several expansions including a 25,000sf addition recently.

Poultry farmers in California like all animal feeding operations are dependent on Midwest grain and corn for their most expensive input -the feed. The price of feed has hurt the bottom line at all livestock operations in the past year due to the severity of Midwest drought.

Locally Zacky Farms declared bankruptcy in the past year citing feed costs.

Now drought- at least in the corn belt – appears to be behind us and either way unit trains offer an opportunity to save money.

Not Just Chicken Feed

Unit trains already come into the Valley from the Midwest to grain dealers like JD Heiskell,Western Milling and Cargill. Several feed operations run unit trains in Kings County including Penney Newman,now owned by JD Heiskell.

Bringing in feed by unit trains can save big time with one report noting that unit train rates were quoted at half the cost of a single car rates says Cargill who invented the notion in 1967.

Scott Hillman of JD Heiskell feed company says a more reasonable estimate may be a 40% savings ,certainly not chicken feed!

A unit train is a freight train composed of cars carrying a single type of commodity that are all bound for the same destination. By hauling only one kind of freight for one destination, a unit train does not need to switch cars at various intermediate junctions and so can make nonstop runs between two terminals. This reduces not only the shipping time but also the cost. The unit train was introduced by American railroad companies in the 1950s so that they could offer lower shipping rates and thereby make their freight service more marketable.
Initially, unit trains were used primarily to haul coal .Today unit trains are carrying oil from North Dakota and New Mexico in part because pipelines are not available in the right places.
A unit train of 100 to 115 cars can bring in 350,000 to 400,000 bushels of corn from the Midwest offering a better price because the trains do not need switching and can be loaded and unloaded quickly if the right infrastructure is in place.

With quick turn around the rail companies can reduce the cost and still make out just fine.

The land in question winds around the 19 acre Cargill grain plant in Hanford creating a complete loop which allows the train not to be split in sections, saving time and limiting foul ups.The loop spur design is in compliance with BNSF protocol.BNSF hauls more grain than any other North American railroad and is major player in the South Valley economy.

Scott Hillman says companies like  to have grain mills on both the UP and BNSF lines to keep the competition keen going.”At any one time one rail company is cheaper than  the other ” adding Heiskell  has feed mils on both lines.

California is already a huge market for corn for the livestock and dairy industry here as well as the ethanol industry.

Growing Niche
As for Pitman farms who have been on a tear in recent years as their niche organic poultry offerings have taken off in the marketplace in stores like Whole Foods and others across the nation.
The four generation family farmer offers PETA approved techniques  allowing poultry to range freely and offering poultry gas before they are slaughtered to reduce the stress for the birds before they give their all.The poultry is sold under the Mary’s Chicken label,named for Mary Pitman founder David Pitman’s wife who still answers the company phone. Son Rick ,a Cal Poly grad, plays a key roll in the firm.
This winter the small company just about gobbled up bankrupt Zacky Farms before they were squeezed out of the deal by a Zacky family contingent.

Still it is possible that the Zacky business could come back on the market and Pitman would be well positioned to take it on with their own greenfield feed mill and manufacturing operation. Zacky gets its grain in Kings  County at a facility just to the north in Hanford called  Integrated Grain and Milling.

Source say Ptitman seeks control over mixing his own feed he now buys from Western Milling  in part because  it is organic and the family likes to control all aspects of their business.Especially with all the woryy about GMO crops.
Just what facilities and number of jobs that could come of this new Hanford facility we will have to wait and see . But it make no sense to do an unloading facility without a feed manufacturing site. Put all that together and this could be a big deal for Kings County and Hanford say sources.

This land is the same property where Great Valley Ethanol had planned to build a plant, a deal that is off the table now.

Dairy industry: New Manufacturing Plant Slated For Visalia

Minnesota-based EXL Laboratories will build a new manufacturing plant  in Visalia later this year says Brian Saben Vice president with the company. EXL Labs sells chemical products used by the dairy and food processing industry.

Saben says the firm was drawn to Visalia because of the concentration of both the dairy and food precessing industries that are customers.

Saben says they have identified and have under contract a site in the Visalia industrial park he declined to name but hopes to work with the City of Visalia to quickly permit the facility and” have it up and running within a year.”

EXL Labs manufactures products currently in Texas and Idaho and contracts some work out in California.

The plant would be highly automated and employ around 15 says Saben. The company says it makes a line of chemical products used to assess and resolve milk quality issues, achieve better udder hygiene and dairy herd health, properly sanitize food processing equipment and improve water quality and CIP performance.

Tulare County Board of Supervisors will hold a public hearing on Tuesday, June 25, 2013, to vote on a Final Environmental Impact Report for the South County Detention Facility. The proposed Project is a Type II facility with 250 cell double-occupancy units (500 beds) and 14 special use beds for a total of 514 beds. In addition to the main detention facility, the proposed Project will also include support service components such as administrative offices, intake, infirmary, kitchen, laundry, storage, and two off-street parking lots. The Board of Supervisors will be asked to approve the Final EIR and the project.

Dollar General has flied a preliminary site plan with the City of Visalia for a new store in the former  Harbor Freight space at 1847 S Mooney in Visalia this week. The company is also planning a new 9100sf store to be built in Earlimart that will be the subject of a county Planning Commission meeting June 26. The store will be located at the northwest corner of Ave 56,some 90 feet east of Hwy 99.

Dinuba got some goods news from Sacramento this week with the State Transportation Commission awarding $7,551,000 for widening of Avenue 416 from two lanes to four for three-miles toward Hwy 99.

The 3 member federal Surface Transportation Board June 13 has issued a decision authorizing the CHSRA to construct a 65-mile high-speed passenger rail line between Merced and Fresno, Cal., which will be the first section of the planned statewide California High-Speed Train System. The split 2 to 1 ruling allows the this first segment of the 800 mile line to use almost $3.5 billion in federal funds to move to construction as soon as next month.

The authorization is subject to environmental conditions and the condition that CHSRA build the route designated by the Federal Railroad Administration as environmentally preferable.

The board said the ruling would be in effect in15 days allowing the controversial project to break ground in July.

In their deliberations the board referred to discussion of the potential loss of Amtrak stations in Kings County, an issue brought up Kings County officials who oppose the project.

“But new and more efficient service will become available for many more passengers. Overall, the public using passenger rail service will be the beneficiaries of more, and not less, passenger service as a result of the proposed Project, as the goals and intent of the Project are to create better options for more passengers, with improved service” reasoned the board.

The City of Visalia and the National Park Service will apply for $4.25 million in state monies to build a new 5000sf transit center at Lodgepole in Sequoia Park. The complex would help expand transit service to and from the park as well as within Sequoia Park as officials look to boost tourism without the pollution and congestion of more cars.
The transit center will encourage the expansion the Sequoia Shuttle bus service from Visalia that offers roundtrip rides to the park for $15.The service is in its 7th year.Once you reach Lodgepole there are 4 in-park shuttles that take you to popular destinations the Giant Forest  area. The bus service operates in the summer months when the majority of visitors come to the park from around the world.

With no pronouncement from the superior court judge so far the California High Speed Rail Authority board has again postponed a decision on a preferred alignment the bullet train will take in Kings County. That CHSRA decision had been set for June 6 but the item was removed in an amended agenda today.
Friday was the court hearing on the lawsuit brought by Kings County and residents of the county who live near the east alignment alternative. Judge Michael Kenny heard the case May 31 but has yet to issue a ruling on whether the CHSRA can use Prop 1A state bond funds to built the statewide rail route.
The indecision on the court ruling appears to be impacting at least the timing of a CHSRA choice on whether the train should go east or west of Hanford connecting the 110 mile Fresno to Bakersfield segment.
The staff of the CHSRA had made a preliminary recommendation to the board to support  a west of Hanford route as the preferred alternative but lobbying by Tulare County who favor the eastern route and station site east of Hanford – has been heavy.
High Speed rail staff have yet to say whether they still support that April choice favoring the western route and station near Armona or change their tune.
It is still possible the board will not support a station in the region at all.
That puts the final board decision off at least until the July meeting. It is in that month  that the CHSRA has said they will break ground on the Madera to Fresno segment.

A Sacramento Superior Court judge heard from opponents of high speed rail from Kings County in court today. Judge Michael Kenny took the matter under submission  as of noon today.He has 90 days to issue a ruling but is expected to do so perhaps next week. Kings County residents John Tos and Aaron Fakuda who own property along the proposed east side alignment (BNSF) for the bullet train along with Kings County – brought the suit.

The judge heard the argument that the project violated voter approved Prop 1A that provides almost $10 billion to build the high speed rail system with plaintiffs arguing the California High Speed Rail Authority needed to have all the $68.4 billion in funding in hand before the state monies could be used.

The plaintiffs alleged that the Central Valley High speed rail project, Merced to Bakersfield segment, is not eligible to receive financial support from Prop 1A bond funds and that it would be illegal under Prop 1A and CCP §526a, to disburse or distribute Prop 1A bond funds to the Authority for the purpose of constructing a high-speed rail (“HSR”) system in the Central Valley.

The Authority argued like many large infrastructure projects this one would be built in phases.
Attorneys for plaintiffs argued money needed to be ready to build from Merced, where the project will be launched later this summer – all the way to Los Angeles.

Some farmers in Kings County have led the battle against the big project fearing it will hurt farm land values and the farm economy in the county.

Which Route?

The CHSRA staff in April indicated they would favor the rail route though the county that veers west of Hanford instead of east where several of the plaintiffs have their farms

But on June 6 the CHSRA will again hear from staff regarding their preference on which of the two routes to take with some expecting a change of heart. The staff report should be avialable before the Thursday meeting.

The City of Visalia has been personally lobbying CHSRA board members suggesting a west of Hanford route would “be a mistake” and hurt future ridership from Tulare County where more than three quarters of the regional population lives.

Still pending is a firm promise of whether the CHSRA will finally support a station at all here.

The April staff report comparing the two Kings County alignments said the west of Hanford alternative would be $800 million less expensive but offered no back up on why. Th western route impacts just 4 dairies while  15 are impacted by selecting the eastern route,the Authority’s original preferred  route.

Sources says that the western route requires below ground level station location near Armona that could face water table issues.

Board chair Dan Richard told staff in April that the board would have the final word on which alignment to select.

The City of Hanford has yet to weigh in on their choice for the station site but that issue may come up again at next Tuesdays council meeting.

A new 8,127 square foot Clinical Laboratory project for Sierra View District Hospital was launched as a result of seismic requirements (Mandated by SB 1953) related to the building that currently houses the hospital’s Laboratory. In addition, the service line has experienced volume increases over the years which has resulted in the department having outgrown the current facility.
The new facility will serve to house back end Laboratory functions including specimen analysis for phlebotomy, urinalysis,microbiology, molecular chemistry, a blood bank as well as support offices and a conference room.  As a result, the new Laboratory does not include a parking lot as draw stations will remain at the main hospital or the Sierra View Medical Plaza.

The  Lab buildings size and design are intended to allow ample space for potential future growth and were optimized to ensure improved workflow and efficiency.  The new Laboratory will be located at the intersection of Putnam and Carmelita which places it adjacent to both residential and commercial property.  As such, the hospital has worked diligently with the community to ensure that the facade of the building adequately fits within the design of the residential neighborhood to ensure a consistent feel that pays homage to the neighborhoods design elements.

The project’s bid was awarded to Quiring General for $4,297,000.00 with an estimated completion time of approximately 18 months.

National discount retailer Dollar Tree plans to open a store in Exeter  by fall in the former Nichols Payless grocery location. Owner of the property Steve Richmond confirms a lease for 18,000 sf in the building adjacent to his Rancho Pharmacy on Kaweah Ave.

Dollar Tree has applied for a city building permit to do tenant improvements. Richmond estimates the work could take 4 months.

Dollar Tree is one of three fast growing chains of dollar stores being opened across the nation and here in Tulare County. The retailer has 6 locations in the county including one in Farmersville and a location scheduled to open later this year in Lindsay.

Besides Dollar Tree – Exeter is likely to get a new Dollar General outlet with representatives of the company recently huddling with city officials discussing alternative sites for the new store to be built in town says planner Greg Collins.”They have not confirmed a location but they act like they are coming to town.” The company is now building a new from-the-ground-up store in Woodlake.

In Exeter the arrival of Dollar Tree to the Hwy 65 shopping center will fill the anchor position in the commercial center that lost its major grocer about 15 years ago followed by a furniture retailer that closed some 3 years ago.It should boost business for other retailers in this part of town.

Dollar Tree is a Virginia-based chain of discount variety stores that sells every item for $1.00 or less.

The Nasdaq-traded company reported $7.39 billion in sales in the latest fiscal year – 11.5% higher than the year before. They operate nearly 4700 locations nationwide.

Departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal décor, housewares, glassware, dinnerware, household cleaning supplies, candy, toys, gifts, gift bags and wrap, stationery, craft supplies, teaching supplies and books. Some Dollar Tree stores also sell frozen foods and dairy items such as milk, eggs, pizza, ice cream, frozen dinners, and pre-made baked goods. In August 2012, the company began accepting manufacturer’s coupons at all of its store locations.

New Retailer Coming
Burlington Coat Factory, a national department store retailer offering clothes and shoes with over 500 stores in 44 states – looks like they are coming to town. The company’s website posted the following notice last month. “ New Store Opening Fall 2013!! Burlington Coat Factory is expanding and opening a new store in Visalia, CA. If you are looking for an exciting management career with a dynamic retailer, Burlington Coat Factory needs you!”

City officials say they have been contacted about doing tenant improvements at the old HomeBase location on south Mooney – vacant for 10 years.  Spokesman for the center Clyde Barbeau says no lease has been signed but they are working on it. Burlington,owned by Bain Capital, has one store in Fresno and Bakersfield and is working on a second in Fresno.

Sequoia Mall Sale Nears
Sequoia Mall on the sales block for the past few months on a “best offer” basis has two potential buyers says Visalia City Manager Steve Salomon.”It would not surprise me to see an announcement of the mall’s sale in the next few weeks”  says Salomon.That would be good news for Visalians who would love to see plans for a new retail complex with new blood plus investment to make it happen.The well located mall has been on the downslide for decades.