Solano Challenges & Issues

Area foreclosure rate hits 3.7 percent in May

2009-07-08T10:00:00.000-07:00

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

2009-07-08T09:54:00.001-07:00

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.

Bill would require state's consent in city bankruptcies

2009-06-03T12:38:00.000-07:00

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."…

Dropout rate 20% in state

2009-05-13T11:07:00.000-07:00

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.

Benicia's ozone one of the worst

2009-05-11T14:40:00.000-07:00

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.

Solano's unemployment numbers rise

2009-03-06T09:39:00.001-08:00

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.

AAA to close 17 of its branches

2009-02-26T10:18:00.000-08:00

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.

Alza lays off 140

2009-02-25T09:58:00.000-08:00

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.

Study shows fewer Solano students bound for college

2009-02-24T09:52:00.000-08:00

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."

2009-02-24T09:40:00.000-08:00

Solano's college-bound rate lags
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.

The fastest shrinking job sectors in Sacramento

2009-02-09T12:49:00.000-08:00

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

Bud Stevenson: Plagues aplenty in Solano County

2009-01-20T14:24:00.000-08:00

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.

Nut Tree merchants 'wait and see'

2009-01-15T10:15:00.000-08:00

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.

Nut Tree Family Park shuttered

2009-01-14T09:23:00.000-08:00

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."

Report provides no economic relief for Fairfield-Vallejo area

2009-01-13T11:03:00.001-08:00

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.

Decaying warships in limbo

2008-12-30T12:40:00.000-08:00

Decaying warships in limbo
Towing to Texas for scrap on hold
By Michael Gardner
2:00 a.m. December 28, 2008

Decommissioned and decaying military ships are anchored in Suisun Bay, east of San Francisco. (Eric Risberg / Associated Press) -
MARTINEZ — MARTINEZ – Often shrouded in coastal fog, a fleet of ghost ships steeped in history and mystery haunts the waters of Suisun Bay.

During their prime, these ocean warriors anchored just east of San Francisco were the pride of the country in times of war and peace. Alumni include a survivor of D-Day and a CIA spy ship built by Howard Hughes.

But today, decommissioned and decaying, about 55 of the ships will be towed to Texas for scrap if state water-quality regulators and federal authorities can settle a legal standoff over how to clean and fortify the vessels for their last voyage.

State regulators and environmentalists say the ships are rotting, shedding paint and other toxins into the water below their hulls and threatening irreversible damage to an already fragile Suisun Bay estuary.

“These are accidents waiting to happen,” said Bruce Wolfe, executive officer of the San Francisco Bay Regional Water Quality Control Board, which has oversight of Suisun Bay. “We need to get a program together that everyone can agree on and get those ships out of here.”

Moving the vessels is risky. Outgoing ships could leave a trail of copper, mercury and other pollutants. The most unseaworthy threaten to break apart before reaching the Golden Gate Bridge.

The Federal Maritime Administration, which is responsible for a number of the vessels, insists that it is moving as aggressively as it can given time constraints and budget limitations. Agency officials say they are committed to working with the state to find ways to safely escort vessels to dismantling yards.

“This is a very unique problem. These are the only vessels in the world having these rules imposed on them,” said agency administrator Sean Connaughton. “There are no accepted procedures. We are the guinea pigs.”

It can cost taxpayers as much as $1 million to have one ship cleaned and towed through the Panama Canal for dismantling in Brownsville, Texas, according to various estimates. Dismantling companies then sell the scrap and keep the money.

Some officials are pushing to have the work done closer to the fleet, which they say would limit chances of harm as surplus vessels are towed out of Suisun Bay.

A fledgling California company, Allied Defense Recycling, is negotiating permits and a lease to reopen a dry dock at the nearby Mare Island Naval Shipyard, which closed 12 years ago. The British parent of BAE Systems San Diego Ship Repair, which has a dry dock facility in San Francisco, may be interested in servicing the mothballed ships.

Suisun Bay has been a naval storage yard for 60 years, with more than 300 anchored there at one time at the height of the program. The ships were shuttled in and out of service, except for those declared unseaworthy.

Eerily picturesque in the fog, the ghostly looking fleet sometimes draws gasps from motorists spotting the neatly lined-up rows for the first time as they drive across the Benicia-Martinez Bridge.

The approximately 70 ships stored in the bay today are in somewhat of a purgatory. About a dozen, still enjoy official “reserve” status, which means they could be drafted back into action. The others are only valued for scrap, if that.

From an overlook just off Interstate 680, the curious can pick out the star, the battleship Iowa. Built in 1943, “The Big Stick” saw action in World War II and the Korean War, but is probably most remembered for a tragic 1989 gun turret explosion that killed 47 crewmen on maneuvers.

Those who served onboard are campaigning for the Iowa to be turned into a floating museum in Vallejo, but raising money is proving difficult. It remains in reserve status.

“The biggest, best battleship ever made,” said retired Rear Adm. Gerald Gneckow, who was at the Iowa's helm from 1984 to 1986.

There are other less-famous workhorses. Among those: the Sperry, a submarine tender deployed 10 days after Pearl Harbor and frequently operating out of San Diego. There is the amphibious warship Thomaston, also home-based in San Diego, which was part of the fleet sent to evacuate Saigon during Operation Frequent Wind in 1975.

One-time members of the fleet include the spy ship Glomar Explorer built by Howard Hughes as part of a secret CIA mission to raise a Russian submarine in 1974. Its reward was being auctioned, dismantled and reincarnated as part of a deep sea oil-drilling platform. More fortunate was the Jeremiah O'Brien, a rare survivor of the D-Day invasion in 1944. Today, the Liberty ship is a floating museum on Pier 45 in San Francisco.

Those ships still moored in Suisun Bay are in the middle of one last battle, this one in a courtroom. A coalition of environmental groups filed a lawsuit last year demanding that the Maritime Administration clean up its fleet after years of fouling the bay with lead, mercury and waste oil, among other pollutants.

Armed with a federal study, the groups argue that the fleet has discharged at least 20 tons of heavy metals into the water.

“If the Maritime Administration was a private business, they would have been criminally prosecuted by now,” said Michael Wall, an attorney for the Natural Resources Defense Council. A trial is not expected until summer.

State water-quality regulators joined in the litigation this year, setting up a court confrontation unless the incoming Obama administration can strike an agreement.

In addition to an alleged general lack of maintenance, the state is critical of scrubbing, or “scamping,” the ships. That cleaning process, regulators say, allows pollutants such as paint to peel off and escape into the water.

Wolfe, the bay-area regulator, accused the Maritime Administration of “being slow to react” after warnings that some of its practices were threatening the waterways.

“They've found reasons not to comply. That's been frustrating to us,” Wolfe said.

The Maritime Administration said it is doing its best given tight budgets and conflicts between federal responsibilities and state requirements.

“We have to look at this from the national perspective. The only fleet we have issues with is in California,” said Connaughton, the federal agency's administrator.

Connaughton said dry docking has complications, including whether the ships are strong enough to be placed on blocks. Pilot programs are in the works to limit the amount of pollutants that escape into the water.

The agency also must ensure that regulations do not become overly burdensome, deterring interest or raising the disposal cost, he said.

“We've been exploring every option,” Connaughton said.

Environmentalists remain steadfast.

“The ghost fleet doesn't belong in Suisun Bay anymore,” said Sejal Choksi of the group San Francisco Baykeeper in announcing the litigation. “It's been haunting our waters for far too long.”

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Sen. Boxer issues a report on economic woes in Solano

2008-12-29T09:47:00.001-08:00

Sen. Boxer issues a report on economic woes in Solano
By Rachel Raskin-Zrihen/Times-Herald, Vallejo
Posted: 12/26/2008 01:04:49 AM PST

Sen. Barbara Boxer has released a report detailing the impact of the nation's recession on Solano County, Vallejo and the rest California's counties and cities.

The picture is grave, and some of the most frightening remarks were reserved for Solano County -- specifically Vallejo and Fairfield, which she says are in particularly dire straits.

The report, based on interviews Boxer staff members had with officials in 20 cities and all 58 counties, paints a stark picture of the economic strains felt statewide, according to a press release.

Boxer's report recognized Vallejo as especially hard-hit.

With the city filing bankruptcy in May, an unemployment rate of 6.4 percent and one of every 10 households in foreclosure, "the city faced crippling debts of over $16 million and was unable to renegotiate contracts with police and fire unions," according to the report. The report was compiled by Boxer staff member Megan Miller based on an interview earlier this month with City Manager Joe Tanner.

The report notes that declining property values have also contributed to Vallejo's financial problems, though the city has only had to lay off three people since many public safety employees retired or quit after the City Council voted to declare bankruptcy.

According to the report:

Although the city hoped to borrow funds to cover the financial gap before property taxes come in, the bankruptcy "makes it impossible to secure any credit at all."

"Foreclosures have been a huge problem for Vallejo, which recently received $2.7 million in foreclosure assistance funds from the Department of Housing and Urban Development because the rate of foreclosures is so high."

Also, the County Assessor slashed property values, which has resulted in a tremendous loss of tax revenue for the city.

Budget deficits and revenue reductions have forced counties and cities statewide to make cuts in many important programs, and as a result, nongovernmental charitable organizations are suffering.

The report also notes:

* That financing problems have stalled critical infrastructure projects, limiting job growth at a time when unemployment rates are at their highest level in decades.

* The nation's economy, the state's budget crisis and the failing housing market have left Solano County in "a difficult fiscal situation."

* The county has a 7.7 percent unemployment rate and that one of every 10 households is in foreclosure.

* The county's first quarter outlook indicates a $9 million to $12 million revenue shortfall, most of which is due to drastic property value declines.

* Solano has aligned its program cuts, mostly in health and social services, with cuts in state funding. County officials also have delayed or scaled-back major projects and equipment purchases, and there is a soft-hiring freeze in place, but no lay-offs yet.

* The county's foreclosure rate, while still much higher than the national average, has recently slowed to 8.54 percent. And though the crime rate has increased slightly as a result of the economic downturn, there is no indication this is specifically a result of foreclosed or empty properties.

Report: Solano hit hard by recession

2008-12-22T10:45:00.000-08:00

Report: Solano hit hard by recession
By RACHEL RASKIN-ZRIHEN/Times-Herald staff writer
Article Launched: 12/20/2008 01:05:12 AM PST

Sen. Barbara Boxer has released a report detailing the impact of the nation's recession on Solano County, Vallejo and the rest California's counties and cities.

The picture is grave, and some of the most frightening remarks were reserved for Solano County -- specifically Vallejo and Fairfield, which she says are in particularly dire straits.

The report, based on interviews Boxer staff members had with officials in 20 cities and all 58 counties, paints a stark picture of the economic strains felt statewide, according to a press release.

Boxer's report recognized Vallejo as especially hard-hit.

With the city filing bankruptcy in May, an unemployment rate of 6.4 percent and one of every 10 households in foreclosure, "the city faced crippling debts of over $16 million and was unable to renegotiate contracts with police and fire unions," according to the report. The report was compiled by Boxer staff member Megan Miller based on an interview earlier this month with City Manager Joe Tanner.

Tanner could not be reached for comment Friday.

The report notes that declining property values have also contributed to Vallejo's financial problems, though the city has only had to lay off three people since many public safety employees retired or quit after the City Council voted to declare bankruptcy.

According to the report:

Although the city hoped to borrow funds to cover the financial gap before property taxes come in, the bankruptcy "makes it impossible to secure any credit at all."

"Foreclosures have been a huge problem for Vallejo, which recently received $2.7 million in foreclosure assistance funds from the Department of Housing and Urban Development because the rate of foreclosures is so high."

Also, the County Assessor slashed property values, which has resulted in a tremendous loss of tax revenue for the city.

Budget deficits and revenue reductions have forced counties and cities statewide to make cuts in many important programs, and as a result, nongovernmental charitable organizations are suffering.

The report also notes:

- That financing problems have stalled critical infrastructure projects, limiting job growth at a time when unemployment rates are at their highest level in decades.

- The nation's economy, the state's budget crisis and the failing housing market have left Solano County in "a difficult fiscal situation."

- The county has a 7.7 percent unemployment rate and that one of every 10 households is in foreclosure.

- The county's first quarter outlook indicates a $9 million to $12 million revenue shortfall, most of which is due to drastic property value declines.

- Solano has aligned its program cuts, mostly in health and social services, with cuts in state funding. County officials also have delayed or scaled-back major projects and equipment purchases, and there is a soft-hiring freeze in place, but no lay-offs yet.

- The county's foreclosure rate, while still much higher than the national average, has recently slowed to 8.54 percent. And though the crime rate has increased slightly as a result of the economic downturn, there is no indication this is specifically a result of foreclosed or empty properties.

E-mail Rachel Raskin-Zrihen at RachelZ@thnewsnet.com or call 553-6824.

Unemployment revised upward in Solano, state

2008-12-22T09:56:00.001-08:00

Unemployment revised upward in Solano, state
By Reporter Staff
Article Launched: 12/20/2008 01:05:16 AM PST

The unemployment rate in Solano County was 7.9 percent in November, up from a revised 7.7 percent in October, and above the year-ago estimate of 5.6 percent, according to numbers released Friday by the state Employment Development Department.

The figures compare with an unadjusted unemployment rate of 8.3 percent for California and 6.5 percent nationwide during the same period.

Solano's rate ranks it 18th out of the state's 58 counties.

As with previous months, the largest drop in jobs came in the construction and building trades industry, which has seen a 22.2 percent decline in employment since last year.

The leisure and hospitality sector has also seen significant declines in employment, marking a 10.3 percent decline in jobs in the arts, entertainment and recreation category in Solano County in the past month.

The jump in joblessness comes as California's unemployment insurance fund teeters on the brink of insolvency. The fund is expected to have a deficit of $2.4 billion at the end of 2009.

To keep unemployment checks coming, the state may have to borrow from the federal government for only the second time since the program was established in the 1930s.

Gov. Arnold Schwarzenegger cited Friday's numbers after vowing to veto an $18 billion deficit reduction plan that Democrats pushed through the Legislature on Thursday. The Republican governor said the plan didn't include the economic stimulus package he demanded.

"I've said countless times that any budget plan sent to my desk must include real stimulus that creates jobs," Schwarzenegger said Friday.

The Associated Press contributed to this report.

Bay Area home values hit 8-year low in November

2008-12-22T09:20:00.000-08:00

Bay Area home values hit 8-year low in November
James Temple, Chronicle Staff Writer
Friday, December 19, 2008

(12-18) 17:34 PST -- Bay Area home values plummeted to an eight-year low in November, as discounts on foreclosed properties continued to draw buyers and drive down prices.

The median for existing single-family homes in the nine-county region fell to $350,000, a 47.8 percent drop from a year ago and the lowest level since September 2000, according to MDA DataQuick. Nearly 50 percent of the houses that sold during the month had been repossessed in the last year.

"Bargains and foreclosures are still king," said Andrew LePage, analyst with the San Diego real estate research firm. "It's a little scary to think of what sales would be like without the deep discounts, since that seems to be what's driving the bulk of them."

Across the region, 3,217 resale homes traded hands in November, up 31.9 percent from a year ago. Transactions were down nearly 43 percent from October, in part because there were fewer than normal business days last month. Given the tone of financial news and tight lending environment, LePage said he was surprised the sales figures weren't worse.

Janice Spencer, a Realtor with Windermere Signature Collection who focuses in eastern Contra Costa County, said it's difficult to close transactions in the current market because lending requirements are high - and fluctuate from day to day. Approved buyers in escrow suddenly have to meet new standards or scramble to switch to different types of loans, she said.

"When you have banks that want to sell (foreclosed homes) but don't want to make any loans, it makes it really tough," she said.

Because foreclosures are swaying prices so much, values continue to hold up better on a relative basis in the coastal markets that have had fewer repossessions. San Francisco had the smallest year-over-year median decline, although it was still a significant drop: 18.5 percent to $697,500. The median means half of homes sold for more than that amount, half for less.

Sales continue to be concentrated in the low-cost areas that have been hit hardest by foreclosures. The most expensive markets - Marin, San Francisco, San Mateo and Santa Clara counties - usually account for 43 percent of regional sales but their share this month was 35 percent. Those four counties were the only ones where sales declined from a year ago.

The hardest hit county was Contra Costa, where prices sank 49 percent to $260,000. Spencer has seen homes in the area that nearly sold, only to come back on the market for $50,000 less two months later.

A host of factors could sway prices and sales in the coming months, but because many of them are at odds, it's hard to predict just how, LePage added.

The current statewide slowdown in the number of foreclosures - which may be due to new procedural rules that are delaying the filings, or could reflect a growing willingness on the part of banks to work out troubled loans - could decrease the number of bargains and slow sales, but may also lead to stabilizing prices in the longer term. A deepening sense of financial insecurity brought on by the economic turmoil and wide-scale job losses may discourage more potential buyers, while a mortgage rate that fell to 4.5 percent for qualified borrowers in the last few days could entice others.

"It's a foggy day for forecasters," LePage said.

Although the rate of foreclosures has slowed, a normal market is unlikely to return anytime soon. Last month real estate valuation service Zillow.com reported that 1 in 5 homes in the Bay Area are underwater, that is, their owners owe more money on them than they can be sold for.

Noting the likelihood of additional waves of foreclosures, economist Christopher Thornberg predicts that prices won't bottom out until sometime in the next year, probably during the fourth quarter. But he expects values will remain flat for years after, possibly until 2012.

"Hitting the bottom is one thing, getting off the bottom is completely different," said Thornberg, principal at Los Angeles consulting firm Beacon Economics.

Still, he stressed that while depreciation is bad news for individual homeowners, it's positive for a state where home prices have outstripped the incomes of large portions of residents for years.

"Prices had to fall just to get back in line with incomes," he said. "Low prices bring back the middle class, it means more people can buy and afford homes. Those are good things in the long run."

Staff writer Carolyn Said contributed to this story. E-mail James Temple at jtemple@sfchronicle.com

Census finds more poverty, higher housing outlay in Vallejo

2008-12-11T12:11:00.000-08:00

Census finds more poverty, higher housing outlay in Vallejo
By SHAUNTEL LOWE/Times-Herald staff writer
Posted: 12/09/2008 02:00:56 AM PST

Census data released today show a marked increase since 2000 in the percentage of Vallejo families living below the poverty level and a steep jump in the proportion of household income devoted to housing costs.

The data, compiled between 2005 and 2007 for the American Community Survey by the U.S. Census Bureau, also reveals an increase of more than 100 percent in the median value of single-family homes in that time.

(The figures, however, were based on statistics gathered at the beginning of the subprime mortgage crisis, and do not reflect current values.)

Since 2000, the percentage of Vallejo families with children under 18 living below the poverty level has risen from 10.3 to 15.5, according to the survey.

In that same period, the percentage of homeowners spending more than 35 percent of their household income on housing costs has climbed from 21.8 to 39.1.

The U.S. Department of Housing and Urban Development recommends that no more than 30 percent of a household's gross income go toward housing costs, which include mortgage and property insurance payments.

"If they go up to something like 50 percent or in that range, then it's going to mean that they're not going to be in a position to save money for expenses that come," like car repairs or medical expenses, said Larry Bush, public information officer for the regional HUD office.

Yet, as housing costs have risen over the past decade, Vallejoans have devoted a greater portion of their income to having a place to live.

In 2000, the median value of a single-family home was $166,400, or $200,358.36, adjusted for inflation in 2007 dollars.

But the latest survey shows that the median value of a Vallejo home in 2007 was $451,500. It has fallen, however, to about $240,000, according to DataQuick, a real estate industry monitoring firm.

The median monthly owner costs for homes with a mortgage in 2000 was $1,380, or $1,661.63 in 2007 dollars. In 2007, those same costs were $2,134.

The survey behind these figures, the American Community Survey, has been released annually since 2005 as a complement to the decennial census.

The federal government is already gearing up for the 2010 census by hiring census takers to begin verifying information.

For more information on the survey or becoming a census taker, visit www.census.gov.

Email Shauntel Lowe at slowe@thnewsnet.com or call 553-6835.

Study: http://www.census.gov/acs/www/index.html

Haveman expects that unemployment in the three west Bay Area counties will climb to 6.3 percent a year from now, up from about 4.9 percent

2008-12-01T12:45:00.000-08:00

Friday, November 21, 2008
Unequal pain
Construction sheltered the East Bay from the dot-com bust; this time the safe havens are S.F., San Mateo and Marin
San Francisco Business Times - by Eric Young

Paolo Vescia
Though many economists think the current downturn could turn around this time next year, Beacon’s Haveman says the Bay Area may take longer to recover.

View Larger Even as surrounding counties gave in to the downward pull of the economy, San Francisco, Marin and San Mateo counties were among the healthiest in the state.

The three west Bay Area counties chugged right along, creating jobs in hospitality, professional and business services, construction and other areas. Total industry employment in the area grew by 4,900 jobs — or 0.5 percent — in the 12 months ended last September. That marked the 44th consecutive month of overall job gains in the region, said Ruth Kavanagh, a researcher with the California Employment Development Department.

But now that streak appears to be over, threatening to put San Francisco, Marin and San Mateo counties on similar footing with the East Bay, where the number of jobs has been falling for months.

“All streaks come to an end,” said Jon Haveman, a principal at Beacon Economics of San Rafael.

Haveman expects that unemployment in the three west Bay Area counties will climb to 6.3 percent a year from now, up from about 4.9 percent at the end of the third quarter.

Contractions in several fundamental areas of the economy — professional services, leisure, and retail — are taking hold as businesses and consumers reign in spending.

If the region does slow down as anticipated, it will mirror what is already under way in the East Bay. Alameda and Contra Costa counties have seen a 2 percent reduction in the overall number of jobs in the past 12 months, state figures show.

Job declines in that region were led by construction, which contracted by more than 10 percent from January to August this year compared with the year before. Other areas of job decline were in manufacturing, trade and transport, retail and financial services.

The tough times for the East Bay likely will continue for two years at least, according to a recent study produced by Beacon Economics. The East Bay escaped the worst of the Bay Area’s 2001 recession because it enjoyed the growth effect of housing. For that same reason, the Beacon economists said, the region will now shoulder a greater amount of pain.

The Bay Area had been an economic oasis as 2008 began. Technology’s strong momentum and the dollar’s weakness staved off the forces ravaging other locales. But job growth, where it was happening, was occurring more slowly than a year ago.

Now the region is getting hit with large-scale layoffs in various sectors. In professional services, for example, two San Francisco law firms, Heller Ehrman LLP and Thelen LLP, went under. The two firms employed several hundred lawyers and staff members between them.

Big discount retailer Mervyn’s LLC, which had been operating under bankruptcy protection, decided to liquidate and lay off hundreds of Bay Area workers. Construction hiring on both sides of the bay has been slowed as funding for projects becomes scarce.

Many economists speculate that the United States could be hitting the nadir of the recession and may eventually pull out by the second half of 2009.

Recovery could take longer locally, however.

Job growth may not take hold in the East Bay until the middle of 2010, Haveman said. Unemployment in San Francisco is expected to peak at 6.3 percent at the beginning of 2010.

There were 12,531 foreclosures in Solano County in the past 12 months.

2008-12-01T12:32:00.000-08:00

Solano County foreclosure rate slowing
By Rachel Raskin-Zriehn/Times-Herald, Vallejo
Posted: 11/29/2008 01:01:04 AM PST

Solano County's per-household foreclosure rate may be slowing but it remains worse than nearly anywhere else in the nation, according to a newly released survey.

But this is expected to start turning around by this time next year, an industry expert said this week.

"Solano County foreclosures are at 8.54 percent, which is nearly four times greater than the national average of approximately 2.5 percent," Serdar Bankaci, founder of New York-based Default Research said Monday. Default Research recently released the survey results.

"The local economy in Solano County is not doing well, either, with an approximate unemployment rate of 7.7 percent, according to the State Employment Development Department."

Solano is not California's worst-hit area, however. That dubious honor goes to Riverside where 12.12 percent of households entered foreclosure in the past year, Bankaci said.

Foreclosures in Solano County grew from a low of 224 in January 2007, to a high of 1,528 this past August, according to the survey. The survey showed there were 759 foreclosures last month in Solano County. Default Research shows there were 12,531 foreclosures in Solano County in the past 12 months.

The problem is expected to worsen before improving, Bankaci said.

"The reason we see the slowdown last month is the new law California passed, requiring a 30-day notification period," he said. "But this only postpones the inevitable in most cases, and we're already seeing an increase again in foreclosures in October."

Solano Association of Realtors president Lori Collins said she concurs with this assessment, though foreclosures will likely remain slow through the holidays. That's because a foreclosure moratorium will be in place until then for mortgages held by troubled lending giants Freddie Mac and Fannie Mae.

Nevertheless, even as home sales climbed, prices continued dropping in the Vallejo area and statewide.

"In some areas of northern California, including Solano County, we have seen home prices fall between 30 and 40 percent," Bankaci said. "I think things will continue to get worse for about three to six more months, before we see the area hit bottom and begin to recover."

Even planned government intervention won't have an instantaneous impact, Bankaci said.

"Much of the government bailout, interest rates, etcetera, have a six- to nine-month lag before affecting the economy," he said. "By this time next year, we hope to see declining foreclosure rates in this region."

Vallejo police Taser car theft suspect on school campus

2008-12-01T11:47:00.000-08:00

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Vallejo police Taser car theft suspect on school campus
By Tony Burchyns
Vallejo Times-Herald
Posted: 11/25/2008 07:09:55 PM PST

VALLEO — Police used a stun gun on a teenage car theft suspect hiding in a restroom Tuesday at Vallejo's Cooper Elementary School.

Officers were searching the school at the end of a pursuit of three youths they believed to be driving a stolen car.

Eleven children and three adults were on campus when the incident happened. The school is closed this week for Thanksgiving.

Officers locked down the school about 10 a.m. and it reopened within an hour, said Vallejo City Unified School District spokesman Jason Hodge.

"We were walking toward the bathroom when we observed a police car," said Geraldine Carter, the site supervisor for a child development center at the school.

"The policeman asked me if we had seen anybody. ... He then asked us to stay inside the room."

Hodge said police arrested two teen boys in a restroom on campus and a third in a garage at a home across the street.

Hodge said police shot one suspect with a stun gun. Hodge said he believed the suspects are juveniles.

Carter said she called the parents of the children to inform them of the incident and that everyone was safe.

During the lockdown, students and the teachers turned off the lights, closed the blinds and lay on the floor.

"We could hear the helicopter hovering outside but that's all," Carter said.

Vallejo 67th in national crimes study

2008-12-01T10:35:00.001-08:00

Vallejo 67th in national crimes study
http://www.timesheraldonline.com/news/ci_11087114

Vallejo has been ranked 67th of 385 large metro areas in a nationwide study of major crimes. The CQ Press, which has determined city crime rankings since 1999, looks at the most serious six crime categories -- murder, rape, robbery, aggravated assault, burglary and motor vehicle theft -- and ranks large cities and metropolitan areas accordingly. The rankings were released Monday, revealing that Oakland had the nation's fifth worst crime statistics and ranking New Orleans first in terms of major crime nationally. Richmond was ninth, San Francisco 102nd, Hayward 125th and Berkeley 132th. Vallejo Police Department spokesman Capt. Dave Jackson said the study's findings don't surprise him, though he thinks they may not reflect today's reality. "What I see is that this is based on 2007 statistics, so it's a little dated," Jackson said. "A lot has changed in Vallejo in the past year." For instance, the number of police officers is down in Vallejo while robberies and burglaries are up..

Rio Vista begins process of repairing budget

2008-12-01T10:31:00.002-08:00

Rio Vista begins process of repairing budget
http://www.dailyrepublic.com/story.php?id=101.7

City leaders will pursue budget cuts and other steps designed to cover a looming deficit and stave off bankruptcy. The City Council on Tuesday met to discuss the situation. It endorsed ideas to deal with an $800,000 deficit in the $5 million General Fund budget for the fiscal year ending June 30. 'We basically directed a recovery plan,' Mayor Eddie Woodruff said Wednesday. Among the goals is to have one-day work furloughs for employees each two-week pay period, reduce overtime, freeze vacant positions, sell some city properties, ask employees to pay more for benefits and pass sewer rate increases, he said. 'There are some things we'll probably need agreement on from the employee groups,' Woodruff said. Sewer rate increases are a controversial issue, with some citizens objecting to previous city proposals. A majority of property owners are able to overturn whatever the council might pass. The council has grappled with the issue for months. Rio Vista has $1.1 million in savings, Woodruff said. Of that, he said $475,000 will go to cover last year's budget shortfall and roughly $300,000 will go toward this fiscal year's shortfall. Woodruff will step down as mayor in a couple weeks but wanted the council to address the budget problem before he left..

Solano County Supes approve cuts, warn of more ahead

2008-12-01T10:31:00.001-08:00

Supes approve cuts, warn of more ahead
http://www.thereporter.com/news/ci_11087140

In what may be a preview for all departments and programs in Solano County, supervisors Tuesday voted to eliminate 33 vacant positions and warned of future cuts. Solano County is facing at least $9.2 million in budget shortfalls, although that number could jump to $12.2 million before the fiscal year ends June 30. The board voted Tuesday to eliminate two full-time positions in the County Recorder's Office and 33.3 full-time positions in Health and Social Services . All positions are currently vacant and department heads were part of the discussion on how many jobs would be cut. The Solano County Board of Supervisors for the first time held a first quarter review to discuss whether to use reserve and contingency funds to fill the budget gap. With $52 million in reserve funds and $29 million in contingency, the board will later decide how much, if any, of these funds it will use. Michael Johnson, county administrator, and other staff have warned the board that similar budget problems will persist for at least three or four years. "Even if we do nothing today, we will end the year in the black," Johnson told the board before the vote. "But it won't be balanced like it was in June." Patrick Duterte, director of Health and Social Services, said while cuts keep occurring in his department -- and will continue as the state balances its budget -- the number of clients are growing. "It's a bad situation out there for the community," Duterte said. "We had an increase of 65 percent of people walking in the door. Even though there are more people walking through the door, (the state) isn't funding what we do." .