Wednesday, July 8, 2009
Area foreclosure rate hits 3.7 percent in May
By Rachel Raskin-Zrihen/Times-Herald staff writer
Posted: 07/08/2009
Amid hopes that the mortgage crisis bottom has been reached, Vallejo-Fairfield area foreclosure rates increased in May over the same period last year, according to a new industry report.
First American CoreLogic, which collects national, state and local real estate data, reports the area foreclosure rate among outstanding mortgage loans was 3.7 percent for May. That's an increase of 1 percent over last May.
Foreclosure activity here is more than 1 percent higher than the national rate of 2.5 percent for May, according to the report.
That translates into hundreds of households in trouble, said Solano Association of Realtors President George Oakes. He said the increase isn't surprising, considering that a moratorium on foreclosures recently ended.
"We're seeing a lot of short sales -- people selling their home for less than they owe, to avoid a foreclosure," Oakes said. "That's a new trend."
Also not surprising to Oakes, the report shows the area's mortgage delinquency rate also has increased.
"We've been in the top in this area since the beginning. It follows a pattern," he said.
The report reveals that in May, slightly more than 11 percent of mortgage loans in Solano County were 90 days or more delinquent compared to just over 8 percent last year.
"That's a lot," Oakes said, "But it seems to be following the unemployment trends. To me these things are linked together."
But houses here, especially the lower-priced ones, "are selling almost faster than they come on the market," he said. A high percentage of buyers appears to be investors, he added.
"For the first time in probably 15 years, you can buy a rental property, and with a little work, can rent it out for a positive cash flow. There's a whole new trend out there. People are seeing their 401k's and stocks aren't doing as well, and they're buying rental properties with cash. It's strange stuff," Oakes said.
The CoreLogic report reveals that during the past 12 months, from June 2008 to May 2009, 17,357 foreclosures were filed in Solano County. That's more than 47 per day. During the previous 12-month period there were 11,709 foreclosures filed, about 32 per day, according to the report.
Oakes questions those figures. "Holy smokes," he said. "I don't see nearly that many. About half of all properties that start the foreclosure process are cured, but still, that sounds like a lot, even if it's 8,000. I don't see them hitting the market."
The foreclosure process includes three steps, starting with the notice of sefault, which typically occurs after the 90-day delinquency period. That's followed by the notice of foreclosure sale, when the property is scheduled for auction, which is followed by the notification of aale, filed after the property is sold at auction.
If the property isn't sold at auction, it goes back to the lender and is considered Real Estate Owned.
Foreclosure data for First American CoreLogic is reported based on the actual number of active mortgage loans and excluding paid-in-full mortgages from the equation, thereby providing more accurate results, the firm says.
Contact staff writer Rachel Raskin-Zrihen at (707) 553-6824 or RachelZ@thnewsnet.com.
Tax bills reduced
By Rachel Raskin-Zrihen/ Times-Herald, Vallejo
Posted: 07/08/2009
Property tax bills for tens of thousands of Solano County residences have been slashed, according to the assessor's office.
Recognizing the continuing decline in the residential real estate market, Solano County Assessor/Recorder Marc Tonnesen said, his office reviewed all county residential property values, and downward adjustments were made where market values have fallen below the assessed value.
That was the case for nearly 57,000 properties on the 2009 property tax roll, he said.
"The values of Solano County homes continue to decline. My obligation to Solano County taxpayers is to make sure their property assessments are fair," Tonnesen said.
The reduced value will be reflected in property tax bills that are mailed by the tax collector's office by Nov. 1.
State law provides for a "Proposition 8" reduction -- a temporary lowering of a real property's assessed value if its market value as of Jan. 1 is less than its assessed value. Once a property is on Proposition 8 status, the assessor reviews its value annually for increases or decreases and adjusts accordingly.
Notices to affected property owners were mailed beginning July 1, and include both the Prop. 8 reduced value and Prop. 13 value for comparison.
Property owners who believe their home's value as of Jan. 1 is less than the Prop. 8 value indicated on their notice must provide market sales data to substantiate their claims, Tonnesen said.
For more information, call 784-6210 or e-mail assessor@solanocounty.com.
Wednesday, June 3, 2009
Bill would require state's consent in city bankruptcies
http://www.timesheraldonline.com/news/ci_12389273
Last year's Vallejo bankruptcy filing stirred nationwide discussion on when and how a city should seek fiscal protection. A year later, who should have the power to decide the path to bankruptcy is getting attention statewide. The city's Chapter 9 filing prompted labor-backed state legislation aimed at requiring local governments to get advance approval from Sacramento for any bankruptcy filing. Authored by Assemblyman Tony Mendoza, D-Norwalk, AB 155 is backed by co-author Sen. Pat Wiggins, D-Santa Rosa, who represents Vallejo. Wiggins discouraged Vallejo's bankruptcy petition in the weeks before the Vallejo City Council's unanimous blessing of the move. AB 155 isn't the first attempt at such state control. More than 13 years ago, legislators last batted around similar bills in the wake of Orange County's 1994 bankruptcy filing. Former Gov. Pete Wilson ultimately vetoed such legislation in 1996. A former San Diego mayor, Wilson cited concerns of state liability if a state committee rejected a local government's bankruptcy plan. The Assembly Committee on Local Government held the latest bill's first public hearing on April 23. Across the state, city and county officials have voiced concerns over the proposed legislation. Supporters have included state labor groups, some of whom sponsored the bill. A key issue in the Vallejo bankruptcy fight is the ability of a city to undo employee union contracts in court if it can prove that they either led to the fiscal emergency, or that they hinder a city's ability to recover. Bankruptcy Judge Michael McManus has held that Chapter 9 permits a city to void such contracts in certain cases…. A California State Association of Counties representative said reasons for seeking bankruptcy protection can vary, and some might require swift action during fiscal emergencies, which the proposed legislation likely would delay. Vall! ejo Mayo r Osby Davis also strongly objects to the bill, though its passage would not affect Vallejo. "For you to pass a bill like this is a slap in the face to every official elected locally," Davis told legislators. "I have to say, why don't we call this bill what it is -- it's an attempt by labor to do in legislation what they could not do in bankruptcy court."…
Wednesday, May 13, 2009
Dropout rate 20% in state
By Mercury News and Reporter staff
Posted: 05/13/2009
Nearly 1 in 5 of California's 6.3 million students drop out of high school, according to statistics released Tuesday by the California Department of Education.
The grim news, based on a relatively new, statewide data system that tracks individual students throughout their education careers, shows that in 2007-2008 only 68.1 percent of students graduated from high school, while 20.1 percent, or 1 in 5, dropped out.
The remaining 11.8 percent of students, such as those who failed to complete high school but earned a GED, fall into a third category known as "completers," or students who received some kind of certificate of attendance in lieu of a high school diploma.
"The dropout rate in California is unacceptably high," said state schools chief Jack O'Connell in a conference call. "And it's alarmingly high among African American and Hispanic students."
For black students, the dropout rate is 34.7 percent. Latinos, who make up nearly half of California's public school students, have a dropout rate of 25.5 percent. Statewide, white students have a 12.2 percent dropout rate, while Asians have an 8.4 percent rate.
In Solano County, the picture was no better: 21.7 percent of students overall dropped out, while some 74.5 percent graduated.
The dropout rate is an estimate of the percent of students who would drop out in a four-year period based on data collected for a single year.
At the district level, Vallejo showed the worst numbers with a 34.8 percent drop out rate for all students -- including 42.5 percent of black students and 40.7 percent of Hispanic students.
In Northern Solano County, Dixon Unified showed the highest percentage dropout rate for all students at 15.5 percent, though that translates into only slightly more than 50 dropouts.
Dixon's Senior Director of Education Services Jesus Contreras said every year he's curious how the state will come up with the new numbers for drop out rates.
"It's always interesting," he said. "We really have to look at how they compute it every year."
Contreras believes that one dropout student is too many, but added that the district's dropout rate can make the school look horribly bad since it is smaller.
He noted that Dixon High School is still accredited by the Western Association of Schools and Colleges, which takes the dropout rate into consideration when evaluating schools.
Contreras contributes the repeated accreditation to the district's sound instructional program, counselors that work with each student and extra academic programs before and after school.
"Our goal is to make sure the students are successful," he said.
In Fairfield-Suisun Unified, there were more than 240 dropouts, which resulted in a 14.9 percent overall dropout rate.
In Vacaville Unified, the overall dropout rate was 14.3 percent.
Travis Unified showed the smallest percentage of dropouts at 6.6 percent.
Travis also reported the highest percentage of graduates at 94.2 percent. Second was Benicia Unified with 87.8 percent followed by Vacaville with 83.4 percent; Fairfield-Suisun with 81.5 percent, Dixon with 73.8 percent and Vallejo with 61.5 percent.
The true extent of California's dropout crisis has long been a politically charged guessing game.
For years, schools complained that there was no way to accurately determine if a student dropped out of school or simply moved out of state, out of the country or transferred to another out-of-town school. Critics charged that schools routinely low-balled their dropout figures by claiming that students had transferred.
The new system assigns each California student a unique 10-digit "student identifier" number that makes tracking them much easier.
To download state, county, district, and school-level dropout data, visit the Department of Education's DataQuest Web site at: http://dq.cde.ca.gov/dataquest/.
Mercury News writer Dana Hull contributed to this report.
Monday, May 11, 2009
Benicia's ozone one of the worst
By Tony Burchyns/ Times-Herald, Vallejo
Posted: 05/08/2009

A study tied to the Valero refinery in Benicia revealed that Benicia had the fourth worst ozone in the Bay Area in '08. (Reporter file)
An air-quality study tied to the Valero refinery has revealed that Benicia was fourth worst in the Bay Area for ozone levels in 2008, according to results made public this week.
But even though the refinery daily emits ozone precursor gases, which combine with heat and sunlight to form ozone in the atmosphere, its exact contribution to ozone creation is unknown, officials said.
"It is nearly impossible to determine on any given day what amount of ozone was formed due to emissions from a particular industry," said Eric Stevenson, an air-monitoring manager for the Bay Area Air Quality Management District.
Stevenson said some ozone precursor gases are produced locally, mainly by auto traffic, Valero and the Benicia port. But some drift in from other areas and get trapped in Benicia's micro climate, he said.
According to the report from the air quality management district, Benicia -- at a high of 75 parts per billion -- was the fourth worst ozone offender in the Bay Area, right behind Bethel Island, Livermore and Concord.
The ranking was based on yearly averages from 23 Bay Area monitoring stations.
The health effects of ozone exposure include respiratory damage and heightened sensitivity to allergens.
Benicia's ozone levels still met national standards for both 2007 and 2008, Stevenson said.
The results were shared Wednesday night at the Valero Benicia Refinery Community Advisory Panel meeting at the Benicia Public Library.
Among those in attendance was refinery vice president and general manager Doug Comeau.
Although Comeau did not speak about the ozone data, he did apologize publicly for last month's release of hydrogen sulfide at the refinery. The release produced a pungent "rotten egg" smell that could be detected as far away as Marin County.
Valero could be forced to pay a public nuisance fine in excess of $10,000, depending on the conclusion of an ongoing investigation into the cause of the incident, air district officials said this week.
Officials at the meeting also discussed creating a community air-monitoring system similar to one established in Rodeo in the 1990s.
The system would differ from the air district's measurements by detecting and reporting short-term air-pollution events on a local level, in real time on the Internet, said Don Gamiles, a principal at Argos Scientific, who spoke at the meeting.
"The air district does measurements based on state and fed standards," Gamiles said. "By definition, a community monitoring system is a different beast."
The 18-month air district study, partly funded by Valero under an agreement with the community, concluded in December.
There is no ongoing, independent air-monitoring in Benicia, but Valero is working toward installing air-monitoring equipment, purchased from Argos in 2005, on Tennys Drive near East Second Street. The station is expected to be operating within two months.
Gamiles also discussed the possibility of installing what he called a "fence-line system," which, using light beams, would analyze air quality at the edge of the refinery. The system, which his company sells, would cost about $35,000 to install, he said after the meeting.
Rodeo, which borders the ConocoPhillips refinery, has used a fence-line air-monitoring system for more than a decade.
Friday, March 6, 2009
Solano's unemployment numbers rise
By Rachel Raskin-Zrihen/ Times-Herald, Vallejo
Posted: 03/06/2009
Solano County's unemployment rate crossed into double digits in January for the first time since local numbers have been kept, newly released state figures show.
The unemployment rate here was 10.1 percent in January, the first time it's broken 10 since 1990 when the state began keeping localized statistics, said Justin J. Wehner, state Employment Development Department labor market spokesman.
The previous highest Solano County unemployment rate since 1990 was 9 percent in 1996, the year Mare Island Naval Shipyard closed, Wehner said.
But Vallejo's jobless rate is better than the statewide 10.6 percent, and the last time California's unemployment rate crossed into double digits was more than a quarter century ago in 1983, as reported last week.
Of California's 58 counties, Marin's unemployment rate was lowest, at 6.6 percent, the latest figures show. Colusa County ranked worst, at 26.7 percent, the statistics reveal.
Napa County's unemployment rate hit 8.5 in January, the figures show, placing that area eighth statewide. Solano County ranked 19th, and while alarming, this figure still places the county within "the better half" of the state's counties in unemployment terms, Wehner said.
If there is good news for Solano County in the latest employment data, it's that half of the 12 major industry sectors here have either gained jobs or not lost any between January 2008 and January 2009. Though the other half of the industries lost jobs over the year, small gains have been made in transportation, warehousing and utilities, education and government education, leisure and hospitality, the figures show.
Thursday, February 26, 2009
AAA to close 17 of its branches
By Richard Bammer/ RBammer@TheReporter.com
Posted: 02/26/2009
If you are a member of the California State Automobile Association, and like the convenience of picking up new travel maps or taking care of your vehicle registration or insurance needs in a local office, you will have one less Solano County branch to do so next month.
AAA officials announced Wednesday that the company's Fairfield office is among 17 of the firm's 120 branches that will close in a tri-state area, including Northern California, Nevada and Utah.
The downsizing, which company officials say comes as the result of increased member use of Internet and telephone services and the need to reduce costs, will force the layoff of 250 employees, including seven at the Fairfield branch on Gateway Boulevard. Like most affected branches, it will close March 27, said Jenny Mack, a AAA spokeswoman at the company's San Francisco headquarters.
"We believe it's necessary to make these changes in order for us to remain competitive long-term," she said in a press release.
The Fairfield employees will be given a chance, if they choose, she said, to transfer to nearby offices, including the Vacaville branch on Mason Street and the Vallejo branch on Admiral Callahan Lane.
Mack said 170 California employees in five offices -- besides Fairfield, they are Paradise, Antelope, South Lake Tahoe and Noe Valley in San Francisco -- have been given pink slips and will be eligible for severance packages. About 80 of the eliminated jobs are in Nevada and Utah. An additional 50 open jobs will not be filled, she added.
Saying members' needs were given "a very high priority" during the firm's decision-making process, Mack noted that all the pending closures are within 10 miles of another AAA office. Foot traffic at the remaining two Solano AAA offices likely will increase as a result of the cutbacks, she predicted.
For a complete list of branch office closures, visit www.aaa.com.
Conceding Wednesday's company news was somewhat gloomy, Mack said there will be "another bright side" for Fairfield in the coming weeks and months.
Plans call for AAA to consolidate its "business fulfillment center" -- an office where employees handle billing, accounting and corporate mail -- at Business Center Drive.
Mack said the decision was made in November and "those plans continue on schedule," with some 250 employees slated to move into the center in March and the phased relocation completed in June.
"It's not a membership office," she pointed out. "It's back-office operations."
Some 165 employees from the headquarters office and 60 others from elsewhere will be transferred to Fairfield, Mack said, adding AAA is building a new headquarters that will open in Walnut Creek later this year.
Founded more than 100 years ago, AAA, which boasts a membership of 4.5 million, advocates for traveler safety and security.
Wednesday, February 25, 2009
Alza lays off 140
By Richard Bammer/ RBammer@TheReporter.com
Posted: 02/25/2009
Vacaville's ALZA Corp., a pharmaceutical and medical delivery systems firm, on Tuesday laid off 140 employees, or more than 18 percent of its workforce, a corporate spokesman said.
Greg Panico, the spokesman, said the firm's parent company, Johnson & Johnson, would not issue a formal press release, but, he added, the layoffs were due to "a delay in a new product the company manufactures for another pharmaceutical company, and, because they were no longer able to work on the product, unfortunately, we had to make these reductions."
He declined to name the company or product, saying the corporation "does not disclose information about partners or products."
The latest layoffs -- affecting 600 employees and marking a 25 percent reduction in ALZA's workforce since October -- primarily affected an unspecified manufacturing department at the Eubanks Drive plant. Additional cutbacks were made in "quality and other support functions as well," Panico noted in an e-mail from his office in Raritan, N.J.
The downsizing comes about four months after the company laid off 40 employees during an effort to "streamline" operations and processes, said then-company spokesman Ernie Knewitz.
Plant General Manager Henry Esparza could not be reached for comment and a spokeswoman for the company did not return telephone calls by press time Tuesday night.
Several employees taking an afternoon cigarette break sat on a bench on Eubanks Drive but declined to respond to questions about the layoffs. The company's spacious parking lot contained noticeably fewer cars than it has in recent weeks.
News of the layoffs did not surprise Michael Ammann, president of the Solano Economic Development Corporation in Fairfield. He said rumors about a pending large layoff at ALZA had been circulating for weeks but without confirmation. He said Workforce Investment Board of Solano County likely would be helping the laid-odd employees with their efforts to re-train or find new jobs within the industry.
Maite Kropp, a Reporter columnist, pet advocate and owner of Harmony Kennels in Allendale, off Interstate 505 north of Vacaville, heard the news through some of her clients who work for ALZA or were formerly employed there. She said they told her the affected employees were told of their layoffs shortly after arriving at work Tuesday morning, then were later escorted to their cars by security.
Two former ALZA employees, hearing news of the latest layoffs, sent e-mails to The Reporter. One said he had not received promised severance payments after being laid off in October; the other, a former administrator, described the company's working conditions as "a typical corporate environment, in which the desire to treat employees humanely was balanced with the need to remain profitable." Both asked not to be identified by name, citing the sensitivity of their employment circumstances, with one saying he was "still involved with the industry."
Panico would not discuss complaints, saying severance pay and other personnel issues, including retirement packages, were confidential matters between employee and corporation.
Tuesday's cutbacks come at a time for increasing difficulties for the pharmaceutical and biotech industries. They face increasing government regulation, loss of patent protection, layoffs and a "churn" among the industries' leading players, reduced capital for research and development, increased costs to develop news drugs and technology and continued outsourcing of jobs overseas.
Like other giant companies trying to do business amid a global economic slump, the worst in several decades, Johnson & Johnson seeks to develop new products, boost revenues while reducing costs to get positive returns on assets, which drives up the price of company stock, satisfying shareholders.
At its Web site, www.jnj.com, the company reported $2.6 billion in revenues for the fourth quarter of 2008 and earnings per share were 94 cents, increases of 3.1 percent and 6.8 percent, respectively, compared to the same period last year.
ALZA was founded in 1968 by Dr. Alejandro Zaffaroni. The company bought its Vacaville campus in 1984 and eventually built a 117,000-square-foot facility.
The company's product line includes Sudafed, a popular cold medication; Nicoderm, a well-known nicotine patch; Doxil, an ovarian cancer medication; and Concerta, a medication for attention deficit hyperactivity disorder, or ADHD. It also makes several "drug-delivery platforms," including patches, pills and injectible medicines.
In recent months, ALZA made news for installing a 1-megawatt photovoltaic solar energy system, spread out over several acres, at its Vacaville site.
Tuesday, February 24, 2009
Study shows fewer Solano students bound for college
By Tony Burchyns/Times-Herald, Vallejo
Posted: 02/24/2009 01:01:40 AM PST
A new study shows Solano County is lagging behind the rest of the Bay Area and the state in preparing high school students for higher education.
Just 55 percent of Solano County high school graduates go straight to college, including community colleges, according to report by the Institute of Higher Education and Policy at Sacramento State University.
The report puts the Bay Area rate at 66 percent. The state's is 58 percent.
Just 2,319 of 4,224 Solano County high school graduates went directly to a two-year or four-year college in 2007, the report adds.
The data, collected from the California Post Secondary Education Commission, does not take into account students who attended out-of-state colleges or private schools that don't report data.
One of the study's authors, Colleen Moore, said Solano County also ranks far below the state overall in the share of students completing college preparatory classes, including advanced math and science courses. Solano County students also are less likely to earn top scores on college entrance exams.
"It is not just that they are getting lower scores, but fewer students are taking the tests," Moore said.
Although the study identified trends, it did not cite causes.
Overall, the study found regions of the state experiencing the most rapid population growth -- such as the Inland Empire and the Central Valley -- are tending to fare worse in terms of higher-education access.
"We have a lot of heavy lifting to do to move more of our kids into college," said Vallejo City Unified School District spokesman Jason Hodge. "And that is going to take additional funding from the state. We just have a lot of kids who don't see college as an option for them ... because their parents didn't go."
A few years ago, Hogan High School in Vallejo began placing all students on a college prep track, science teacher Jeanne Hillyard said.
"This way, anyone who passes all of their classes with a 'C' or better will be eligible to apply to a (University of California) or a (California State University)," Hillyard said. "I think this should help our college admission numbers."
Educators also said parental involvement is the key to college access.
"One thing parents can do to ensure their children go to college is to get involved early with their education," Solano County Office of Education spokesman Sheldon Reber said. "Elementary school is not too early to be talking with children about going to college."
Hillyard added, "Of course we could use a lot more help from the community."
By Tony Burchyns/Times-Herald staff writer
Posted: 02/23/2009
A new study shows Solano County is lagging behind the rest of the Bay Area and the state in preparing high school students for higher education.
Just 55 percent of Solano County high school graduates go straight to college, including community colleges, according to report by the Institute of Higher Education and Policy at Sacramento State University.
The report puts the Bay Area rate at 66 percent. The state's is 58 percent.
Just 2,319 of 4,224 Solano County high school graduates went directly to a two-year or four-year college in 2007, the report adds.
The data, collected from the California Post Secondary Education Commission, does not take into account students who attended out-of-state colleges or private schools that don't report data.
One of the study's authors, Colleen Moore, said Solano County also ranks far below the state overall in the share of students completing college preparatory classes, including advanced math and science courses. Solano County students also are less likely to earn top scores on college entrance exams.
"It is not just that they are getting lower scores, but fewer students are taking the tests," Moore said.
Although the study identified trends, it did not cite causes.
Overall, the study found regions of the state experiencing the most rapid population growth -- such as the Inland Empire and the Central Valley -- are tending to fare worse in terms of higher-education access.
"We have a lot of heavy lifting to do to move more of our kids into college," said Vallejo City Unified School District spokesman Jason Hodge. "And that is going to take additional funding from the state. We just have a lot of kids who don't see college as an option for them ... because their parents didn't go to college."
A few years ago, Hogan High School in Vallejo began placing all students on a college prep track, science teacher Jeanne Hillyard said.
"This way, anyone who passes all of their classes with a 'C' or better will be eligible to apply to a (University of California) or a (California State University)," Hillyard said. "I think this should help our college admission numbers."
Another thing district high schools started recently are career tech academies. Hogan High offers a biotechnology academy. Next year, the school will launch a multimedia academy.
"With these programs, the students take their core classes together and learn all subjects with the theme of their academy," Hillyard explained. "This should give the students incentive to do well in high school, because they can see a tangible future ahead of them."
Educators also said parental involvement is the key to college access.
"One thing parents can do to ensure their children go to college is to get involved early with their education," Solano County Office of Education spokesman Sheldon Reber said. "Elementary school is not too early to be talking with children about going to college."
Hillyard added, "Of course we could use a lot more help from the community. Poor attendance and nutrition, and a home environment that isn't conducive to doing homework and studying, all contribute to the failure of a lot of our students."
The study was titled "The Grades Are In -- 2008: Is California Higher Education Measuring Up?"
Contact staff writer Tony Burchyns at (707) 553-6831 or tburchyns@thnewsnet.com.
Monday, February 9, 2009
The fastest shrinking job sectors in Sacramento
The fastest shrinking job sectors in Sacramento
preese@sacbee.com
Published Sunday, Feb. 08, 2009
In the past year, the four-county Sacramento region has seen a net loss of 25,000 private jobs. Here are the local job sectors experiencing the most job losses during the recession. (Related: Sacramento job sectors still growing.)
Building Contractors · Food Service · General Merchandise Stores · Banks · Car Dealers
Specialty Trade Contractors
As foreclosures mounted, the demand for new construction plummeted. Left in the cold were many specialty contractors -- workers who pour concrete, do site preparation, fix plumbing, paint and do electrical work. During the past three years, the region has shed more than 20,000 specialty contracting jobs.Specialty Trade Contracting Jobs, 2003-2008. (Mouse over chart to see job counts.)
Food Service and Drinking Establishment Workers
When money gets tight, Sacramento residents cut back. One way to save money is to eat out less. But that has had consequences for the region's food service industry. During the past year, about 2,300 food service jobs have disappeared.Food Service Jobs, 2003-2008
General Merchandise Store Workers
First local stalwart Mervyn's announced it would be shuttering its stores. Then other retailers started scaling back. Even the usual Christmas hiring spree shrunk.General Merchandise Store Jobs, 2003-2008
Banks, Mortgage Brokers and Other Lenders
No surprise here. The nation's largest banks recently turned to the government for billions in aid. Meanwhile, the credit market tightened and big real estate sales dried up, hurting mortgage brokersJobs Related to Credit Intermediation, 2003-2008
Motor Vehicle Dealership Jobs
Several of the region's car dealerships have shut down recently, creating a crisis for their workers and for local governments that rely on the tax revenue dealerships generate.Jobs Selling Cars and Car Parts, 2003-2008
Source: California Employment Development Department
Link to article: http://www.sacbee.com/1098/story/1609132.html
Tuesday, January 20, 2009
Bud Stevenson: Plagues aplenty in Solano County
By Bud Stevenson | | January 12, 2009 23:00
I've been reading the suggestions for an appropriate slogan for Fairfield. It's been front page news in the Daily Republic, so I thought I'd add my own two cents worth.
I've come up with 'Fairfield Where the Ten Plagues Come to Life.' OK, they're not exactly like those in the Old Testament, which I studied faithfully until I was 13 years old. Most of these, of course, affect much of the country, and are not peculiar to Fairfield and Solano County, but they might give you an idea of just how bad things are.
Plague No. 1 would have to be the projected city deficit, which will only be mitigated by an immediate revival of the economy or an increase in taxes.
The deficit is related closely to Plague No. 2, which is the salary and benefit level agreed to by Fairfield and other cities in the county. Look no further than Vallejo, sinking, or sunk, into bankruptcy because it can't make good on the employee benefits it promised.
Plague No. 3 isn't in the Old Testament, either, but it may as well be. The city, the county and our local school district are handcuffed by something known as a 'PLA,' which stands for Project Labor Agreement. In effect, it means that contractors building public buildings must use union workers. That can run up the cost of a school or county office building as much as 30 percent, and naturally, add to Plague No. 1, the deficit.
Plague No. 4 is the condition of the roads and freeways. Yes, they have done some nice work on eastbound Interstate 80, but work seems to have stopped -- several months ago.
Westbound I-80 is another story. I take it every day home from Vacaville. If Sacramento is even thinking of raising the vehicle license fee, it should include a rebate for tires and front-end alignments for drivers using westbound I-80. There are probably highways in Zambia in better shape.
Closely related is Plague No. 5, the condition of some of the off-ramps from I-80. Take the eastbound West Texas Street exit and it looks like you're headed to a dustbowl town in 1930's Oklahoma.
The Abernathy Road off-ramp isn't much better, but I will admit that crews did a nice job repaving Abernathy Road itself, even fixing the bridge. The work did come too late for my speeding ticket about 10 years ago on Abernathy and having to abandon my car during a New Year's Eve flood a few years ago.
OK, they had a sign that said, 'Road Closed,' but in smaller letters I'm sure it said, 'except for Bud.'
Plague No. 6 is Solano Community College, which is under close inspection by the state. It's an embarrassment to have this sniping among the board members and disagreement about who's in charge. If we knew then what we know now, would we have passed the bond measure for the college? The board is proud of the new buildings but apparently its meetings are like Abbott and Costello movies.
No. 7is the collapse in the automobile business, with 'Auto Row' getting to be more like Death Row at San Quentin, as dealer after dealer closes doors.
I wonder what has happened to the rumors that Mercedes was coming to town. As dealers disappear, so does the sale tax so badly needed by the city.
That's related to Plague No. 8, the generally dismal retail environment, which is further hurting the city's revenue situation.
I reluctantly say that Plague No. 9 is the outcome for many students between the time they enter and the time they leave our public schools.
Some great graduates, but too many dropouts and uninspired students from a system that must still be called mediocre.
The last plague is the perception, even if not the fact, that many parts of Fairfield are dangerous places to be at night. The police work on the problem, as do the City Council and the mall managers, but that feeling is still out there.
Bud Stevenson, a stockbroker, lives in Fairfield. Reach him at Bsteven254@aol.com or visit his blog at www.dailyrepublic.typepad.com/mrniceguy.
Thursday, January 15, 2009
Nut Tree merchants 'wait and see'
By Richard Bammer/ RBammer@TheReporter.com
Posted: 01/15/2009 06:59:45 AM PST
Merchants near and around the now-closed Nut Tree Family Park generally are unsure how its closure would affect their businesses but remain hopeful that their bottom lines will remain black in the short term.
"We're taking a wait-and-see attitude," Jim Hester, manager of Fentons Creamery, the popular ice cream shop and restaurant two doors down from the park entrance, said Wednesday. "Sales have been down generally but we're holding on right now. We're moving forward."
He said the park closure, announced Tuesday, came on the heels of rumors and speculation that it was in financial straits due to a drop-off in admissions -- and just before he had planned to issue a survey of customers.
Hester said foot traffic into his store was greatest on weekends, drawn in part by the park, which featured a historical miniature train, a small roller coaster, a carousel, park benches and bucolic grounds, including a reflecting pool, landscaping and a few shade trees. It is also home to the historic Harbison House, a Vacaville landmark owned by the Vacaville Museum and the last remaining architectural structure from the original Nut Tree business.
Having the family park open on weekends "did have some effect (on business), but it's hard to determine," said Hester. "I don't know if we'll live or die by the park. We have a quality product and quality managers."
He and nearly all the merchants -- and a few shoppers -- who were interviewed cited park managers' decision to charge admission as a possible reason for a noticeable decrease in park use and its eventual closing.
"I think it will impact business but I just don't know how significantly," said Carlos Villasenor, manager of Villa Corona, a Mexican restaurant just a short walk from the park entrance.
Like Hester, he said weekend business was brisk, especially during lunch.
"It was a draw," Villasenor said of the family park. "It's kind of sad to see it close. It may be a good thing. I'm still positive."
Outside the restaurant, Vacaville resident Kristin Martin, 18, dined with two friends. She said the park manager's decision to charge entrance fees changed attitudes.
"It used to be free, but once they charged admission, that was it," she said. "It was a nice place to walk in."
Seated next to Martin, Kristie Neal, 18, also of Vacaville, noted that an older sister would take her children to the park but, with its closure, "there's nothing really here for the kids anymore."
At Kool Kids, a boutique shop filled with children's clothing and baby furniture, manager Kriss Thorn said about 10 percent of her business stemmed from foot traffic at the park.
"They'd come in to buy sunglasses, hats, new shorts -- if they had an accident," she said, smiling and seated inside her store.
Large parties that required room rentals at the park would also sometimes generate business, said Thorn, adding, "I'm kind of sad just because it just reopened not too long ago and it never got the chance to be what it could. The economy's hurting, everybody's hurting, the timing was bad."
Stephanie Jolander, assistant manager at Justice just for girls! a clothing store for young and preteen girls, also said foot traffic at the park translated into business at the store filled with racks of shorts, spangly tops, plush toys and T-shirts emblazoned with words such as "Music is my Life."
At Winters Fruit Tree, a dried fruit and nut store just a few steps from the park entrance, a family friend of owner Paula Khodaverdi, Alex Khodaverdi, said, "I would say the closure is going to affect us. We're on the main access to the park. We don't have other (street) exposure. We're at the mercy of return customers."
He added, "We're trying to stay in business -- as long as it's feasible," he said, seated in the large closet-sized shop.
Meanwhile, the Vacaville City Council is waiting to see what happens next.
Vice Mayor Curtis Hunt said that reviewing the Development Disposition Agreement between the city and Nut Tree Associates is in order.
"It's important to see where we stand after the dust settles," said Hunt, adding that maybe a more passive solution that includes access to the historical Harbison House inside is necessary.
"We'll have to see what we can do," he said.
Councilwoman Pauline Clancy said she isn't worried as much as some people.
"The amusement parks close this time of year anyway," she said. "I know the players."
Speaking of Roger Snell of Snell & Co., which owns the park, Clancy said, "He's a honest human being and a nice family man. He's trying really hard, but this economic time is just pushing in the opposite direction."
"We don't know what tomorrow brings," she added.
Staff Writer Melissa Murphy contributed to this report.
Wednesday, January 14, 2009
Nut Tree Family Park shuttered
By Melissa Murphy
Posted: 01/14/2009 07:48:50 AM PST
Nut Tree Family Park has closed its doors indefinitely, despite the owner's assurance last month that it would reopen in February.
"After considering current economic conditions and nearly two years of struggling attendance levels, the owner of the Nut Tree Family Park has elected to close the park indefinitely," stated a press release sent to The Reporter from marketing manager Marisa Hicks.
Rumors have been floating around for months that the 2-year-old Nut Tree Family Park, owned by Snell & Co., was on the brink of closing. Reached by phone Tuesday Roger Snell refused to comment.
In December, there was an effort to dispel the rumors.
"We are not closing for good," Hicks said just one month ago. "It's merely a time for us to regroup and come back with a plan for 2009."
However, rumors became a reality Tuesday afternoon when a press release blamed the park's viability on the economic climate.
"This decision was very difficult, but based on current economic conditions of the country and in the region, it was the prudent thing to do," said Dave Simon, vice president of AmusementAquatic Management Group (AMG).
AMG President Kent Lemasters said the company was retained by Snell & Co. a few months ago to evaluate and assist in managing and improving the day-to-day operations of the park.
Lemasters confirmed that the plan since October was to open again in February.
"The economy three months ago wasn't the impact it is now," Lemasters said. "It just wasn't prudent to stay open."
Although most of the Nut Tree Family Park employees were seasonal, about seven people will be laid off.
"There are no plans at this point to reopen," Lemasters said.
For now, AMG is in the process of making sure everything is stored and properly covered so the park can endure the winter months.
Meanwhile, questions about the future of the historical train that travels around the park are still unanswered. The renovated No. 5 Nut Tree Train was from the original Nut Tree Park, which closed in 1996.
Now that the park has closed for a second time, the city will have to revisit the agreement with the developer.
Interim City Manager Laura Kuhn said the agreement between the Redevelopment Agency and Nut Tree Associates, which includes Snell & Co., there is a requirement that the train continues to operate.
What that means now that the park is closed, Kuhn isn't sure.
"If the train doesn't operate, then there is a problem because of the agreement," she said. "We will have to work with them to see what we can do. I'm not sure what their plans are."
Kuhn also said that because it is a private venture and that the city is not a business partner, there isn't an agreement to turn the park over to the city if it's closed.
City leaders said that it's unfortunate the park seemed to be the newest casualty of the tough economic state.
"I'm obviously disappointed," said Mayor Len Augustine. "But it's a financial situation with them. If people don't support it, they'll have to figure out a different way to operate it; but it's a private business so I can't speak for them."
Vice Mayor Curtis Hunt agreed. "I'm not surprised, but I am disappointed," he said. "We can't force people to stay in business and lose money."
"The city isn't in a position to make any type of subsidy," he added.
Events scheduled at the park were notified to find different venues.
Brett Johnson, president of NorthBay Healthcare Foundation, said the group had planned to hold part of a fundraising event at the park in April.
The Solano Wine and Food Jubilee, the biggest fundraiser in the county, is still being held this year on April 24, but the event will not carry over into the Nut Tree Family Park as originally planned.
"It was a piece of the event," said Johnson. Even without the park in the picture, he assured, the event will continue as it has in the past, with, among other things, wine, food and entertainment.
Johnson, who is also chairman of the Planning Commission, believes the economy played a part in the park's closing.
"Unfortunately, it's a sign of the times," he said, pointing to the fact that he was in favor of changes to the Nut Tree Village, which allowed a greater variety of businesses to move in.
Johnson isn't ready to give up though. "It is a setback in the short term, but I'm still hopeful for the long term."
Tuesday, January 13, 2009
Report provides no economic relief for Fairfield-Vallejo area
By Ben Antonius | Daily Republic | January 12, 2009 17:03
FAIRFIELD - Local jobless rates will continue to soar through 2009, according to a recent study.
The California and Metro Forecast from University of the Pacific in Stockton states unemployment rates for the Fairfield-Vallejo area will rise steadily throughout 2009, peaking late in the year at about 9.3 percent.
That would represent a dramatic leap from the heady days earlier this decade, when local unemployment dipped to barely 4 percent. The projected rise would make the Fairfield-Vallejo area the hardest-hit in the Bay Area, although it would be about on par with the statewide average.
'The (area) has felt the effect of the housing market collapse since 2006,' wrote economist Jeffrey Michael. 'Things will not get better in 2009.'
Michael's report does not predict much change in the housing market in the short term. In fact, 2009 may be worse for the industry than the devastatingly bad market of 2008. A true reinvigoration of the home-building industry may not take place until 2011, Michael said Monday.
'I don't believe that California is badly oversupplied with housing,' he said. 'Our population is continuing to grow and there is still demand out there for housing. What got out of balance was more the price of housing related to people's ability to pay rather than an oversupply of housing units.'
Leading the way in job losses are the sectors of manufacturing and construction, the former never having recovered from the 2001 recession and the latter still profoundly affected by a stagnant housing market that shows few signs of reviving.
Michael said the state may continue to hemorrhage as many as 50,000 jobs per quarter through 2009, with unemployment rates stabilizing after that. However, just as there was a lag between the start of the recession and the start of job losses, so will there be a lag between the end of the recession and the resuming of hiring, he said.
'Now that it is becoming clear that business is way off and is going to stay off, (employers) are having to pull the trigger (on layoffs),' he said. 'Unemployment rates in 2010 could be worse than 2009 on average. This is a serious downturn and employers are going to be really cautious picking up people coming out of it.'
Reach Ben Antonius at 427-6977 or bantonius@dailyrepublic.net.