9-16-08

 9-16-08Merced Sun-StarMerced council lets downtown developers take longer to repay loans...SCOTT JASONhttp://www.mercedsunstar.com/167/story/455554.htmlIn the face of a faltering economy, Merced's City Council allowed two downtown developers to extend their loans Monday night. The Tolkin Group, which built the Merced Lofts, and Steve and Clarice McNamara, who built the center at 18th and Canal streets, both asked that their city loans extended because they're not collecting as much revenue as expected.The City Council unanimously approved both requests, though one councilman suggested the city should consider rent control in the Merced Lofts because the rates have been above the market... The Tolkin Group signed a deal to built the Merced Lofts in 2001, the latest in a string of its projects downtown...To help fund the three-story lofts building, it took out a $250,000 loan from the Redevelopment Agency...Since finishing construction, the developer has had a difficult time finding and keeping businesses in the commercial slots that line Main Street. Four of the six are empty, though a new tenant is on the way...The city approved an 18-month delay on payments, though interest on the loan will still accrue at 6 percent. A lump sum payment will be due in 2018.Councilman Noah Lor said, as a compromise, the council should get the developer to promise to reduce the cost of leasing a commercial pad. "It's my understanding that the fees are too high," he noted.The rest of the council quickly quashed Lor's suggestion to control rent. "I'm fundamentally against that," Councilman Jim Sanders said, noting that the commercial climate has drastically changed. "A long time ago, things were much rosier in Merced than they are now."With the McNamara building, which holds Khakis and Kelli's, the developer asked to put off paying $73,000 from a $250,000 loan. Instead, it will pay $1,062 for the next seven years. "It's a very reasonable short-term loan," Councilman Bill Spriggs said. "(The building) is a great asset to downtown. I wish we had more like them."Comments"...things were much rosier in Merced than they are now." That's correct Mr. Sanders. So why isn't the Developer willing to lower the lease rates to get new business tenants into his vacant properties? Isn't that Free Enterprise? Isn't that the marketplace setting the rates? So why give him special aid so he can keep his unreasonably high lease rates? Perhaps mandated lease control isn't the answer. But neither is not demanding that the Developer do whatever is necessary to fill the vacancies and pay his debt on schedule.:: 09/16/08 9:23am - MyTown ----------------Gee Whiz Golly. I guess the city won't mind the taxpayers holding off paying their tax liabilities for a while either. Sounds like a good excuse to me. Just tell the city you "don't have enough cash at the moment to cover what's owed." I'm sure they will understand. :: 09/16/08 8:35am - Sense Merced Sheriff arrests manager of housing nonprofitRudy Buendia III was the manager of Firm Build and is one of four facing embezzlement charges...SCOTT JASON http://www.mercedsunstar.com/167/story/455547.htmlAfter two days on the run, Firm Build's manager surrendered Sunday to Merced County Sheriff Mark Pazin.Rudy Buendia III, 45, was arrested Sunday afternoon at Childs Avenue and Highway 99 by Pazin and Sgt. Keith McClain, ending the Merced County district attorney's search for him.Sheriff's spokesman Tom MacKenzie said Buendia or his family called the department to say he was ready to turn himself in...Buendia, a Merced County Planning commissioner and former Housing Authority commissioner, is charged with 15 felonies tied to Firm Build's demise last year. Charges include embezzlement, grand theft and diversion of construction funds. He's being held at the John Latorraca Correctional Center in lieu of $266,000 in bailThe DA's Office wrapped up a 15-month investigation Thursday when it filed charges against Buendia, Firm Build's administrative manager Joe Cuellar, bookkeeper Christina Ledezma, board President Patrick Bowman and Buendia's father, who allegedly contracted to do stucco work for the nonprofit without a license.Firm Build's mission was to give people who live in public housing the skills to become carpenters and construction workers to better their lives.It started in 1998 as a Housing Authority program and became an independent nonprofit the next year. Its managers looked to expand its business by contracting with Merced County Office of Education and residents who were renovating their homes with help of city loans.Firm Build relied on the free help from Housing Authority clients and Valley High School students for most of its jobs. It hired subcontractors for some of the work its trainees couldn't do.The nonprofit began having money troubles a few years ago and went bankrupt in 2007, with complaints from residents prompting a criminal probe. Investigators found that many subcontractors were left unpaid and that Firm Build owed more than $700,000 in outstanding bills.DA investigators believe that Firm Build's managers left projects incomplete and instead used the money to fund other construction work.One charge against Buendia, Cuellar and Bowman is for Firm Build failing to finish the renovation of a MCOE automotive training center. The complaint alleges that Firm Build diverted more than $45,000 from the Castle Commerce Center project to a different one.Bowman, a Housing Authority commissioner, is also charged with diverting public funds because MCOE allegedly gave $120,000 to Firm Build for projects not connected with the office of education. Bowman, MCOE's Workplace Learning Academy coordinator, has been placed on administrative leave because of an internal investigation, county officials said.UC Merced developing plans for new student housingDorms will add 315 beds to campus...DANIELLE GAINES http://www.mercedsunstar.com/167/story/455543.htmlFinal designs for a new housing complex at UC Merced are expected to be approved at the Board of Regents meeting today in Irvine. The two four-story dorm buildings will have almost 160 new rooms and will be located in front of the Valley Terraces housing, now visible from Lake Road. The new housing buildings will offer an additional 315 beds on campus by August 2010, bringing the total to 1,290...Funding for the $42 million project was approved by the regents in July. Both buildings are seeking a "silver" rating of at least 33 points, through the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program. They may also be eligible for the "gold" standard. "We see it as our responsibility to build public projects in a sustainable way," said Patti Waid Istas, the university's executive director of communications. "We were lucky to get a blank slate here at UC Merced, and we are dedicated to building in the most sustainable way possible."...More than 1,300 of the school's 2,700 students applied for campus housing this year. The university's continuing goal is to house 50 percent of all students on campus. "As our enrollment continues to grow, the amount of housing we build will grow as well," Lawrence said...Construction of the project is scheduled to begin in January, and the buildings will be completed by August 2010. Lawrence said more housing on campus will help the university recruit and retain more students. Parents often want their freshmen to stay on campus to have a smoother transition to life on their own. Lawrence hopes the building boom on campus will lead to more students renting existing empty homes in the community, as students study longer at the college...Said Lawrence: "We are going to be building housing on campus for years and years and years to come."CommentsMore housing and building sin general are needed. But I highly doubt there will be 4000 students on campus in fall 2010. That would require an increase af about 1400 students. Sounds doable since in 4 years we have gone from 0 to 2700 students. Thats just under 700 student a year. Problem no one seems to talk about is this year we will graduate the first class. That means the freshment classes of 09 and 10 need to be 700 student more each that what the freshmen class of 05 (800) and 06 (650) were. So twice as large. Over the life of UCM the size of the freshman class has increased marginally. Not sure why the admissions believes suddenly next year it will increase by 100%:: 09/16/08 8:59am - ucprof UC Merced launches blog...from reports http://www.mercedsunstar.com/167/story/455582.htmlThe University of California at Merced has created a news blog for those interested in what's happening at the campus. Blog postings will include summaries of UC Merced news releases, Web site spotlights and features, story tips and other bits of news. Anyone wishing to follow the development of UC Merced can subscribe to the blog's RSS feed, allowing them to see UC Merced news content on a homepage through services such as Yahoo or Google. Visitors may subscribe to be alerted by e-mail whenever new items are posted to the blog. Though visitors can't comment on individual posts, feedback can be e-mailed to communications@ucmerced.edu. The blog is at http://ucmercednews.blogspot.com. Modesto BeeLawsuit over illegal immigrant tuition revived...last updated: September 15, 2008 09:28:48 PMhttp://www.modbee.com/state_wire/story/430988.htmlA state appeals court has reinstated a lawsuit challenging a policy that allows some illegal immigrants to pay lower in-state tuition to attend California's public colleges and universities.The 3rd District Court of Appeal in Sacramento said Monday that a lower court erred in dismissing the suit brought by 42 students who paid far more to attend college because they were out-of-state residents.At issue is a 2002 law that made any California high school graduate who attended at least three years of high school in the state eligible for in-state fee breaks, regardless of immigration status.The plaintiffs argue the law violates a federal prohibition on higher education institutions giving benefits to illegal immigrants without offering the same break to U.S. citizens.California is one of nine states with laws allowing undocumented residents to qualify for lower in-state tuition rates.A spokesman for the University of California system says lawyers are evaluating whether to appeal Monday's decision to the state Supreme Court.The case is Martinez v. Regents of the University of California, CV052064.Spillover will affect average consumers...KEVIN G. HALL, McCLATCHY NEWSPAPERS http://www.modbee.com/business/story/431258.htmlWASHINGTON -- Average people have a lot at stake in how the widening financial crisis plays out. Here are some answers to questions about it:Question: What does all this Wall Street volatility mean to me?Answer: If you have a 401(k), you shield some of your income from taxation through an Individual Retirement Account or a lot of your retirement savings are in stocks, you've already seen a sharp drop in the value of your nest egg.The Dow Jones industrial average is on pace for one of its worst years ever, but even if you've parked your cash in a bank, today's rising inflation is eroding its value.Q: Is this like 1929, when the stock market's crash led to widespread bank failures and the Great Depression?A: No. The interventions by the Federal Reserve and the Treasury, the existence of federal deposit insurance for national bank customer accounts and the willingness of Congress and the president to fight the downturn with fiscal policy all underscore that there are safety cushions in place that didn't exist 80 years ago.Still, today's financial turmoil could spread, and the economy could suffer more before stability returns.Q: Will the collapse of Lehman Bros. make things worse?A: It could, or it could make things better. The weekend meetings between top federal regulators and senior executives of Wall Street firms resulted in the surprise takeover of Merrill Lynch by Bank of America and a lack of suitors for Lehman. Some analysts feared a Great Depression type of financial market meltdown Monday morning, but markets were orderly, not panicked, as news of the events sank in.With a government-brokered sale of investment bank Bear Stearns in March, Bank of America's absorption of Merrill Lynch and the Chapter 11 bankruptcy protection filing by Lehman, Wall Street's weakest players have been pushed off the field.Goldman Sachs, Morgan Stanley and JPMorgan Chase remain the biggest traditional investment banks, and Merrill is expected to keep operating under its own name. The consolidation in investment banking has taken most insolvency concerns off the table, and over a longer horizon this could point toward a return to stability.Q: What about the shorter horizon?A: The chief executive officer of Bank of America, Kenneth Lewis, said Monday that he didn't see the clouds parting for his industry until 2010. Banks that still have exposure to the complex mortgage bonds that are at the heart of the crisis continue to get hammered. That includes Charlotte, N.C.-based Wachovia and Swiss giant UBS.This financial crisis is rooted in bad mortgages that were packaged into bonds and sold to investors. As long as home prices keep falling, investment and commercial banks that own vast piles of those bonds will keep taking write-downs and their bleeding will continue.Q: How do these banking sector problems affect me?A: Problems in the banking sector spill into the broader economy. As these complex Wall Street investments sour, banks need to keep more capital on hand to assure investors that they can weather future losses from loan portfolios. That means banks are playing defense.If you want a business loan, a car loan, a home loan, a student loan or virtually any other kind of loan, they're hesitant to lend, lest they wind up with more bad loans. With lending drying up, auto dealers are sitting with inventory they can't move and real estate agents are showing homes they can't sell. The economy is slowing as credit is squeezed.The crisis feeds on itself. As banks and corporations are perceived to be short of capital and their stock prices fall, their need to raise capital grows even as lenders are defensive. That forces them to sell assets at low prices, and it becomes a vicious circle.That's what insurance and finance giant American International Group faces.Q: Given all these risks, why isn't the government bailing out Lehman Bros.?A: Bailouts are in the eye of the beholder. The Treasury Department and Federal Reserve determined that Lehman's problems had been well-publicized since at least spring, other financial players had made adjustments to that and Lehman's failure thus didn't pose a risk of contaminating the broader global financial system the way the sudden failure of Bear Stearns would have if the feds hadn't intervened. But make no mistake, a bailout of Wall Street has been under way since last March, and deepened this weekend.Fresno BeeHouse approves reservoir study for Tule River tribe...Michael Doyle, Mcclatchy Newspapershttp://www.fresnobee.com/263/story/869498.htmlWASHINGTON -- The House on Monday approved a $3 million study of a potential new reservoir to serve the San Joaquin Valley's parched Tule River Indian Tribe. The vote is an important step for the Porterville-area tribe, which has long sought a more reliable water supply. Tribal leaders and their allies envision a dam that would collect water from the south fork of the Tule River, flowing from the Sierra Nevada."We're simply trying to secure for the tribe what the federal government should have done 100 years ago," said Damon Nelson, legislative director for Rep. Devin Nunes, R-Visalia. "As far as we're concerned, everyone in the Valley supports this." By itself, though, the House bill is no guarantee a Tule River dam will be built. The tribe still faces significant economic, environmental and political hurdles.The potential dam under study would be relatively small, containing about 5,000 acre-feet of water. By contrast, the current Pine Flat Dam on the Kings River can contain upward of 1 million acre-feet. The potential dam would be on the Tule River tribe's reservation, south of Porterville. The tribe could use the new water supplies for its existing development and Eagle Mountain Casino, but not for any future casino that might be built on off-reservation land. Most seriously, Congress has not yet approved a water rights settlement that must precede any actual dam construction. This will require separate legislation not yet introduced. Talks could drag on, over issues such as what additional land the tribe might want to acquire. Negotiators representing the tribe and others, including farmers with the South Tule Independent Ditch Co., took nine years to reach a broad agreement-in-principle that still leaves some questions unanswered. Some Indian water rights settlements have taken decades to complete.Even the study authorization itself is only a partial step. Next, the Senate must approve it as well; so far, California's senators have not introduced a similar measure. Then, lawmakers in a future Congress will have to actually provide the $3 million needed to conduct the study.The tribe's water problems date to the 19th century, following the 1856 creation of its original reservation. This Porterville-area land included access to water, but in 1873, the reservation was moved 15 miles to the east. The reservation now spans about 58,000 mostly arid acres... Clovis council votes for more study on mall with Wal-Mart...Marc Benjaminhttp://www.fresnobee.com/263/story/869545.htmlLast year's approval of a 491,000-square-foot Clovis shopping center anchored by a Wal-Mart Supercenter was overturned Monday night by the Clovis City Council. The council voted 5-0 to decertify the environmental report and the project's site plan without discussion. No members of the public addressed the issue. The shopping center proposed for the northeast corner of Herndon and Clovis avenues includes a Wal-Mart Supercenter that has been the focal point of a legal battle between the city and shopping center opponents. In August, Fresno County Superior Court Judge Wayne Ellison ordered the city to reverse its approval of the shopping center because an environmental impact report for the project was not sufficient. Ellison said the report failed to address urban decay and water supply issues beyond the Clovis city limits.The judge said the city must revise those two portions of the report and redo its public hearings for the shopping center. On six other issues, the judge said the city's environmental document met state environmental guidelines.Opponents of the shopping center contend that the judge's order requires the city to redo the environmental document. It will be up to the developer, Paynter Realty, to undertake the expanded reports on urban decay and water and the impacts on surrounding communities, including the city of Fresno. After the reports are finished, the environmental document and site plan for the project will be heard by the Clovis Planning Commission and then go to the City Council.In 2004, Ellison said the city should prepare an environmental report after opponents challenged the project in court. The Clovis City Council certified that environmental report last October, and opponents quickly challenged it in court again... New home July sales fall 46.3%Low-priced foreclosed houses lure buyers away from newly built ones...Sanford Naxhttp://www.fresnobee.com/business/story/869485.htmlSales of new houses continued to tumble in July as homebuilders struggled to compete with the popularity and low prices of foreclosures and a tightening credit crunch, experts said Monday. In Fresno County, 158 new houses were sold, a 46.3% decline from July 2007 and 17.3% down from June. The median price fell 8.1% to $265,990 over the 12-month period, but was up 7.5% from June.The monthly gain in price was likely temporary, said Jonathan Dienhart, director of published research at Costa Mesa-based real estate research firm Hanley Wood Market Intelligence, which released the report with the California Building Industry Association... New-home sales in Tulare County fell 70.1% year-over-year and 26.5% for the month. Prices fell 22.1% to a median of $218,999 from a year earlier. Statewide, housing production is the lowest since World War II...Dienhart said developers are having to cope with the popularity of bank-owned properties, which in Fresno represent almost half of all existing-home sales. In addition, buyers are having a tougher time finding credit.That is why efforts are under way to pressure legislators to keep seller financing programs such as those operated by Nehemiah Corp. of America, which has provided $8.6 million in down-payment assistance to 1,166 families in Fresno County since 1997, according to Nehemiah Corp. The program, scheduled for elimination next month, could remain alive if housing advocates prevail in their attempts to pass H.R. 6694, which would allow that type of down payment help to continue indefinitely."Continued problems in the credit markets, including the recent federal bailout of Fannie Mae and Freddie Mac, indicated just how broad the problems facing the housing market are," Dienhart said.Robert Rivinius, California Building Industry Association president, said policymakers need to make it easier for home buyers to get loans... Sacramento BeeCalifornia court ruling slaps illegal immigrant students...Susan Ferriss http://www.sacbee.com/101/v-print/story/1239284.htmlThe 3rd District California Court of Appeal issued a decision Monday that challenges a state law allowing some undocumented students to pay in-state college tuition.The appeals court reversed a decision by Yolo Superior Court Judge Thomas Warriner in 2006 that upheld a tuition law passed by the Legislature in 2001 that allows undocumented students who attended state high schools for at least three years to pay in-state tuition.Out-of-state students had challenged the fairness of the state policy because they had to pay higher tuition for at least a year before establishing residency.In a unanimous opinion, Justice Rick Sims wrote that the tuition policy "stands as an obstacle" to Congress' objective to limit immigrants' access to public resources.Kris Kobach, a University of Missouri law professor who represented the out-of-state students, said it was the first time an appellate court has ruled on the issue.The suit was filed against the University of California and the state university and community college systems.Kobach said the universities can appeal to the California Supreme Court. No representatives of the universities could be reached for comment.Sacramento's high-density rail scrutinized...Tony Bizjakhttp://www.sacbee.com/101/v-print/story/1239140.htmlEvery day dozens of commuter and freight trains share tracks through Sacramento in a tightly choreographed system of switches, lights and side rails."That's standard across country," local Capitol Corridor train official Gene Skoropowski said.That shoulder-rubbing on the rails is under scrutiny this week after a Los Angeles commuter train ran into a freight train Friday, killing 26.Federal investigators reportedly were looking into whether a Metrolink engineer ran a red signal light, putting his train into the path of a Union Pacific freight train.The crash has rekindled debate over whether the nation's rail systems, notably in high-density corridors like Los Angeles and Sacramento, should employ costly technology that can stop trains automatically when it detects a problem – such as another train approaching...Nevertheless, track-sharing among passenger and freight trains has proved to be logistically difficult over the years. UP dispatchers must control schedules for about 60 trains a day around Sacramento.Officials relieved some schedule conflicts by adding a second track across the Yolo Causeway. But ridership is increasing on the region's passenger trains, and Union Pacific officials report they are running more freight trains as well. The Amtrak California Zephyr also shares the tracks running through San Jose, Oakland, Fairfield, Davis, Sacramento and Roseville, among other cities.Many in the rail industry say the next major safety step will be "positive train control systems" that can detect problems and automatically stop trains.The technology is in place on a handful of train lines, including on higher speed trains between Los Angeles and San Diego. But it is costly and, critics say, hasn't been perfected.The National Transportation Safety Board has put the system at the top of its "most wanted transportation safety improvements" list.Officials with the Federal Railroad Administration said they haven't felt they were in the position to mandate it.But on Monday, FRA officials said it's likely the Metrolink crash would have been averted if such a system had been in place."In light of this (crash), all bets are off," FRA spokesman Warren Flatau said. "Questions are going to be raised about how and when railroads will go about implementing (automatic) train control systems."Capitol Corridor's Skoropowski said the federal government should get serious about the technology now and help railroads pay for it."It's standard practice in Europe," he said. "It takes a lot of money, but maybe it's time to scrap the 1920s system we have and go to a 2000 system." San Francisco ChronicleAgency expands protected habitat for Calif. frog...SAMANTHA YOUNG, Associated Press Writer http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/09/16/state/n121613D62.DTL&hw=endangered+species&sn=002&sc=783Federal wildlife officials say the California red-legged frog needs four times as much protected habitat than was set aside for it two years ago. The decision was announced Tuesday and greatly expands protections for the frog, which listed as a threatened species in 1996.It's the result of an investigation last year that found a former Interior Department official had pressured government scientists to alter their findings on endangered species.The latest proposal from the U.S. Fish and Wildlife designates 1.8 million acres in 28 California counties as habitat that is critical for the frog's survival.The frog, the largest species native to the western U.S., is believed to have inspired Mark Twain's tale, "The Celebrated Jumping Frog of Calaveras County."Federal study says grizzlies thriving in Montana...DINA CAPPIELLO, Associated Press Writer http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2008/09/16/national/w111217D02.DTL&hw=endangered+species&sn=001&sc=1000The majestic grizzly bear, once king of the Western wilderness but threatened with extinction for a third of a century, has roared back in Montana. The finding, from a $4.8 million, five-year study of grizzly bear DNA criticized by Republican presidential candidate John McCain as pork barrel spending, could help ease restrictions on oil and gas drilling, logging and other development.Researchers with the U.S. Geological Survey announced Tuesday that there are approximately 765 bears in northwestern Montana. That's the largest population of grizzly bears documented there in more than 30 years, and a sign that the species could be at long last rebounding...The study was backed by Montana ranchers, farmers and Republican leaders as a step toward taking the species off the endangered species list. Since 1975, the bear has been threatened in the lower 48 states, a status that bars hunting and restricts any kind of development that could diminish the bear's population...The U.S. Fish and Wildlife Service, which is in charge of regulating endangered species, is currently reviewing the bears' status in Montana as part of a five-year review required by the Endangered Species Act. The study's results will help biologists determine whether the bear still needs federal protection, a conclusion due out early next year. Watchable Wildlife -- Sandhill Cranes in California...Jane Kay, Green Villagehttp://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=50&entry_id=30327Fall is coming to California's Central Valley, and with it thousands of sandhill cranes on their annual migration. The birds land elegantly every year -- if all is right with the world -- to feed and roost in marsh and grassland...State scientists rave about the cranes, which can cover 350 miles a day, calling them "magnificent birds, with characteristic red-crowned heads, unique clicking vocalization and distinct postures." They say the migrants offer "a wonderful wildlife viewing experience for avid birdwatchers and novices alike."The lesser sandhill crane, which reaches a height of four feet, breeds in northern Canada and Alaska, some in the Arctic National Wildlife Refuge. About 20,000 pass through the Copper River Delta on the Pacific Flyway on the way to central California. In the controversy over drilling for oil and gas in the refuge, the sandhill crane is among the species that could be affected by industrial petroleum development, scientists say. The greater sandhill crane, a state threatened species that grows up to a foot higher, breeds in northeastern California and parts of the Pacific Northwest.Growers and other landowners have taken measures to improve habitat and protect the aerial visitors that are often heard by a loud, musical rattle before they're seen. According to Fish and Game officials, restoration involves smoothing earth, pumping water, planting native vegetation and maintaining short ground cover... Undocumented students' college aid in jeopardy...Tanyz Schevitzhttp://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/16/BANQ12UI6C.DTL&hw=uc&sn=002&sc=502A state appellate court has put a financial cloud over the future of tens of thousands of undocumented California college students, saying a state law that grants them the same heavily subsidized tuition rate that is given to resident students is in conflict with federal law.In a ruling reached Monday, the state Court of Appeal reversed a lower court's decision that there were no substantial legal issues and sent the case back to the Yolo County Superior Court for trial."It has a huge impact," said Kris Kobach, an attorney for the plaintiffs and a law professor at the University Missouri at Kansas City. "This is going to bring a halt to the law that has been giving in-state tuition to illegal immigrants."He said it is a big win for California taxpayers who have been subsidizing education for undocumented immigrants... On Monday, three justices of the Third District Court of Appeal in Sacramento said that a 2001 state law, AB540, conflicts with federal law. The state law provides the benefit of in-state tuition to undocumented students while the federal law says an illegal immigrant cannot receive that benefit unless the same benefit is extended to all U.S. citizens without regard to California residency... In the ruling, the appellate justices said: "The state statute allows the benefit to U.S. citizens from other states only if they attend a California high school for three years. Thus, the state statute does not afford the same benefit to U.S. citizens 'without regard to' California residence," as required by the federal law. ...UC attorney Chris Patti said the appellate court did arm the plaintiffs with an argument to say that the case should go in their favor because the AB540 conflicts with federal law.However, he said, UC and the other schools argue that despite the appellate court's opinion, the benefit is not based on residency."The central issue in the case is whether or not the criteria for in-state fees is based on residency or not, and the Legislature carefully constructed the statute so that it was not based on residency," Patti said. "It is based on whether you went to a California high school and graduated from a California high school, and those criteria are not based on residency."If the law is struck down, it has the potential to financially devastate undocumented students, who are not eligible for state or federal aid. For many, it may mean the difference between attending school and dropping out, Patti said... Washington PostWashington Mutual's Rating Cut to JunkFailure Could Cost FDIC Insurance Fund $24 Billion to Cover Depositors, Estimates Say...Thomas Heath and Binyamin Appelbaumhttp://www.washingtonpost.com/wp-dyn/content/article/2008/09/15/AR2008091503035_pf.htmlThe credit crisis that yesterday pushed Lehman Brothers to file for bankruptcy and drove Merrill Lynch into the arms of Bank of America has many on Wall Street looking at other troubled financials.Washington Mutual, the Seattle-based savings and loan giant whose stock has been hammered the past week, has raised concern because its demise would be the largest bank failure in U.S. history, putting stress on the Federal Deposit Insurance Corp. to cover depositors.Washington Mutual yesterday closed at $2 per share, down 27 percent on the day. The stock is 95 percent off its 52-week high. Standard & Poor's downgraded the company's credit rating to junk status, citing the deteriorating housing market."The cost to the FDIC if this company fails is likely to be quite high," analyst Rich X. Bove of Ladenburg Thalmann wrote. He estimates the net cost to the FDIC at $24 billion, which is about half of the assets in the FDIC's insurance fund.The FDIC doesn't comment on specific cases, but a spokesman said yesterday that the fund has sufficient resources to cover the failure of a very large bank. In most cases, the FDIC promises to guarantee deposits up to $100,000. The government regards that promise as sacred. The FDIC might just have to borrow money from the Treasury Department to meet its obligations to depositors."We're confident that our resources would be more than adequate to cover any losses from bank failures," FDIC spokesman Andrew Gray said.Washington area hedge fund managers who specialize in financial firms think the chances of Washington Mutual seeking bankruptcy protection are unlikely. Even if the bank does go under, they said, the FDIC could endure the hit."The loss can be absorbed by common shareholders, preferred shareholders and bondholders, in that order, before you get to the deposit insurance," said Gary Townsend of Hill-Townsend Capital, a Chevy Chase hedge fund that concentrates on financials. "I assume that's not enough to break the [FDIC] bank."Eric D. Hovde of Hovde Financial, a District hedge fund that trades in bank stocks, said Washington Mutual should not be lumped in with Lehman Brothers because he said it has billions of dollars in savings account deposits that make it less vulnerable."Does WaMu have problems? Yes," said Hovde, who said he has no stake in the company. "But fundamentally, they shouldn't be in a position of failing but for the press and others whipping up the fear on a failure. They are meeting their tangible capital requirements today. They have a much better funding structure [than Lehman], and it's a much more regulated entity. You can't compare WaMu to Lehman."TPG, one of the country's largest private-equity funds, bought a 14 percent stake in Washington Mutual earlier this year and presumably could buy more...CNN MoneyWaMu shares stabilizeDespite downgrade, S&L's shares rise and recover from a rough open on Wall Street...Tami Luhbyhttp://money.cnn.com/2008/09/16/news/economy/wamu/index.htm?postversion=2008091614NEW YORK (CNNMoney.com) -- Washington Mutual's stock rose on Tuesday, recovering from a rough start after Standard & Poor's lowered the savings-and-loan's credit rating to junk amid continuing weakness in the housing market.Shares of WaMu (WM, Fortune 500) shares jumped in an about-face from its performance at the open. The company's shares had plunged 15% after the opening bell, but the losses quickly softened and shares headed north within the hour. They are up 10% in mid-day trading.Investors may have been appeased by WaMu's response to the downgrade. The nation's largest savings-and-loan said the rating agency attributed its action to worsening market conditions, and not to any material change in WaMu's financial condition.Also, rumors once again surfaced that JPMorgan Chase was eyeing the bank. Richard Bove, analyst for Ladenburg Thalmann, said this helped to drive up the stock.JPMorgan Chase declined to comment, while WaMu officials did not return calls. Sources told Reuters the rumors were not true.WaMu has been hit hard by downgrades in recent days. S&Ps action followed downgrades by Fitch Ratings and Moody's last week, as WaMu tries to reassure nervous investors that it has the ability to survive the credit crunch."Increasing market turmoil and the related impact from managing its concentrated mortgage franchise in this troubled housing and credit cycle led to the downgrade of WaMu," said Victoria Wagner, an S&P credit analyst, who lowered the bank's rating to BB- with a negative outlook.Last week, Fitch Ratings lowered WaMu to BBB- with a negative outlook, while Moody's took it down into junk territory with a Baa3 rating with a negative outlookS&P's announcement followed another brutal day for the bank on Wall Street. Shares plummeted nearly 27% to close at $2 Monday. Investors are concerned that potential sources of capital have disappeared in the upheaval this weekend on Wall Street that saw Lehman Brothers (LEH, Fortune 500) file the nation's largest bankruptcy and Bank of America (BAC, Fortune 500) scoop up Merrill Lynch (MER, Fortune 500).After this weekend's turmoil, however, WaMu has fewer places to turn if it needs another injection of capital beyond the $7 billion it raised in April. No one stepped in to save Lehman, and Bank of America will now be busy digesting Merrill. Meanwhile, JPMorgan Chase (JPM, Fortune 500) and Goldman Sachs (GS, Fortune 500) are reportedly trying to arrange $75 billion in loans for troubled insurer American International Group (AIG, Fortune 500).WaMu is one of the largest players in the mortgage market, which brought it prosperity during the housing boom and may lead to its downfall during the bust.Seeking to reassure investors, the bank said late Thursday that it had sufficient capital and liquidity to see it through these tough times... Analysts had mixed reaction to the report. Fitch Ratings and Moody's subsequently downgraded WaMu, concerned about its ability to raise capital, while other analysts voiced concerns about depositors' reactions."The biggest risk for WM is a run on deposits," said Chris Brendler, analyst with Stifel Nicolaus & Co. "With all the negative headlines and recent IndyMac failure, WM's retail deposit franchise is a huge concern to us, as a significant outflow of consumer deposits could lead to devastating liquidity problems since the company has apparently already lost access to the capital markets."But some analysts said the report should restore some confidence in the company. They were heartened by the fact that the company feels it can put less aside for loan losses.Even in downgrading the stock, S&P said it recognizes that the company has enough liquidity to meet all its fixed obligations through 2010 and is operating with enough capital from a regulatory perspective.Other analysts agreed.Stocks rise on Fed, AIGInvestors breathe a sigh of relief that the central bank's outlook was not more bearish...Alexandra Twin http://money.cnn.com/2008/09/16/markets/markets_newyork/index.htm?postversion=2008091616NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday as investors focused on the positive implications for the economy in the Federal Reserve's decision to hold interest rates steady, and on diminishing fears about AIG's solvency.The Dow Jones industrial average (INDU) gained 141 points, or more than 1.3% in a preliminary closing tally. The Dow had fallen to a fresh bear market trading low of 10,742.70 in the morning before bouncing back.The Standard & Poor's 500 (SPX) index gained 1.8% and the Nasdaq composite (COMP) added 1.3%.Stocks seesawed throughout the session as investors considered the prospects for AIG, the world's largest insurer. The company has seen its stock price and investor confidence plummet as it has struggled to raise cash amid the credit market fallout. Questions have now turned to whether the government should step in to help. Reports that the Treasury may be considering stepping in helped the stock cut bigger morning losses and gave the stock market a leg up in the afternoon.Also helping Wall Street: an ultimately positive reaction to the Fed's decision to hold the fed funds rate, a key short-term interest rate, steady at 2% - and not signal worsening conditions in its statement. Stock investors initially took a knee-jerk negative reaction to the Fed, before taking a more sanguine response.Although a cut to the fed funds rate might have provided a psychological boost, the central bank is already providing a lot of liquidity to Wall Street, said Brian Battle, vice president at Performance Trust Capital Partners... He said that the focus now is what happens to AIG. More so than Lehman Brothers, AIG represents a bigger threat to the financial system because of the depth of its business... Much like Freddie Mac and Fannie Mae, which the government stepped in to save last week, AIG may be too big to fail, Battle said...Washington Mutual: S&P cut the mortgage lender's debt rating to junk status late Monday, reflecting the ongoing credit market meltdown and Washington Mutual (WM, Fortune 500)'s exposure to the housing market. WaMu shares gained 16% Tuesday after falling at the open and falling 27% during Monday's session.Reports suggested JPMorgan Chase could make a bid for the company and that seemed to help the shares recover.Goldman Sachs: The company reported a steep decline in earnings that nonetheless topped forecasts on weaker revenue that missed estimates. Shares slipped 1.5%, erasing bigger morning losses.  A number of other bank stocks bounced back, including Wells Fargo (WFC, Fortune 500), Citigroup (C, Fortune 500) and Merrill Lynch (MER, Fortune 500).... U.S. Fish & Wildlife ServiceSacramento Fish & Wildlife OfficeFish and Wildlife Service Proposes 300% Increase in California Red-legged Frog Critical Habitat Comment period opens for proposal based on entirely new analysisContacts:  Al Donner, (916) 414-6566...al_donner@fws.gov... News Releasehttp://www.fws.gov/sacramento/ea/news_releases/2008_News_Releases/ca_red-legged_frog_proposed_critical_habitat_revision.htmContacts:Al Donner, (916) 414-6566al_donner@fws.gov The U.S. Fish and Wildlife Service (Service) today opened a 60-day comment period on a new plan to designate 1.8 million acres as critical habitat for the threatened California red-legged frog (Rana aurora draytonii), an area that is 300 per cent larger than a 2006 designation for the species. The new proposal is the result of a rigorous scientific review conducted by Region 8 (California-Nevada) biologists, at the direction of Service Director Dale Hall. In July 2007 Hall told the Region's biologists to independently review a 2006 critical habitat rule and propose changes if, in their scientific judgment, changes were needed to assure the scientific integrity of the plan. Hall took that step after concluding that there may have inappropriate influence on the 2006 rule by former Department of Interior personnel. The new proposal was developed "without using the previous final designation as a base from which to make changes due to the involvement of Department of Interior personnel which may have inappropriately influenced the extent and locations of critical habitat (FR p. 53500)." The new plan is based on improved criteria, beginning with the 2002 Recovery Plan for the species. "The goal of the Service is to help recover this species, which is a California icon that Mark Twain first made famous in the days when early Californians hunted the frogs as a food delicacy," according to Mike Fris, Acting Assistant Regional Director, Region 8. "This proposal uses the best scientific information available to identify the habitat that is key to the recovery of the species. We will finalize this rule after we carefully consider any comments provided to us by the public." Among differences from the 2006 rule, the new plan extends the likely dispersal range for the frog from 0.7 miles, the standard used in 2006, to one mile. It also focuses on watersheds and adjusts units based on watershed boundaries. It seeks to protect healthy populations and those that are unique, and provides for connectivity between populations. The proposal generally avoids areas on the fringes of developed lands, fragmented areas and intensely farmed areas. It also broadens the presence criteria to include areas where the species was not confirmed until after the 1996 listing, but is likely to have been present in 1996. These include Mendocino County and new confirmed findings in the Sierra Nevada. The new plan proposes 1,804,865 acres of critical habitat, in 49 units in 28 California counties. Habitat has been proposed in the following counties that did not have any designated in the 2006 rule: Calaveras, Kings, Mendocino, Placer, Riverside Sonoma and Stanislaus. Counties with proposed habitat that also were in the 2006 rule are: Alameda, Butte, Contra Costa, El Dorado, Kern, Los Angeles, Marin, Merced, Monterey, Napa, Nevada, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Ventura and Yuba. The new plan proposes as critical habitat, but also recommends for exclusion, 105,013 acres in four counties (El Dorado, Contra Costa, Santa Cruz and Riverside) because those areas now are covered by existing habitat conservation plans (HCPs), which the Service believes provide better protection for the species. However, the new proposal reverses the approach used in 2006 for two military bases, Camp San Luis Obispo and Vandenberg AFB. Those bases were excluded from the 2006 rule because they were developing Integrated Natural Resource Management Plans (INRMPs) to protect species. Because the INRMPs have not been completed, the new proposal does not recommend excluding the military bases. The new critical habitat proposal also proposes to maintain the so-called 4(d) rule for compatible ranching operations, an exclusion pioneered in the 2006 rule. The exclusion gives ranchers, on whose land many of the frogs occur, protection from violating the ESA if they continue frog-friendly management. On many California ranches, the frogs have moved into created stock watering ponds as their natural habitat has been eliminated. The Service seeks continued rancher cooperation to maintain frog habitat by offering them this protection. A copy of the proposed rule, including maps and specific areas where the Service is seeking information, is available at www.fws.gov/sacramento or at edocket.access.gpo.gov/2008/pdf/E8-20473.pdfComments may be submitted through Nov. 17, 2008. Requests for public hearings must be submitted in writing by Oct. 31, 2008. Comments must be submitted either through the Federal eRulemaking Portal: www.regulations.gov , and following instructions there; or by mail or hand delivery to: Public Comments Processing, Attn: FWS-R8-2008-0089; Division of Policy and directives management; U.S. Fish and Wildlife Service; 4401 N. Fairfax Drive, Suite 222; Arlington, VA 22203. The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect and enhance fish, wildlife, plants and their habitats for the continuing benefit of the American people. We are both a leader and trusted partner in fish and wildlife conservation, known for our scientific excellence, stewardship of lands and natural resources, dedicated professionals and commitment to public service. For more information on our work and the people who make it happen, visit www.fws.gov.Sacramento Fish & Wildlife Office www.fws.gov/sacramento2800 Cottage Way, Room W-2605Sacramento, CA 95825(916) 414-6600Center for Biological Diversitywww.biologicaldiversity.orgPROPOSAL TO INCREASE CRITICAL HABITAT AREA FOR CALIFORNIA RED-LEGGED FROG FOUR-FOLD...News ReleaseFor Immediate Release, September 16, 2008Contact:      Jeff Miller, Center for Biological Diversity, (510) 499-9185                  Peter Galvin, Center for Biological Diversity, (707) 986-2600 PROPOSAL TO INCREASE CRITICAL HABITAT AREA FOR CALIFORNIA RED-LEGGED FROG FOUR-FOLD1.3 Million Acres May Regain Protection after Investigation into Interior Department Scandals, Citizen Lawsuit Sacramento, CA – Under scrutiny for political corruption regarding numerous endangered species decisions and facing a lawsuit over improper tampering with protected critical habitat, the U.S. Fish and Wildlife Service is proposing to restore significant areas of critical habitat for the California red-legged frog (Rana aurora draytonii). The Service today proposed quadrupling the protected areas by designating approximately 1,804,865 acres of critical habitat for the frog in 28 California counties. “No endangered species can survive without its habitat intact, and the red-legged frog desperately needs protection of adequate wetlands habitat throughout its former range,” said Jeff Miller, conservation advocate with the Center for Biological Diversity. “Today’s proposal is step toward biological meaningful protections for the frog, but unfortunately numerous other endangered species still have inadequate habitat protections because bureaucrats have illegally slashed millions of acres from proposals by agency scientists.” In November 2007, under pressure brought about by the Center and the media highlighting Interior Department corruption, the Service announced the reversal of six illegal Endangered Species Act decisions, including the California red-legged frog’s 2006 critical habitat designation. The Service listed the red-legged frog as a threatened species in 1996. It published a proposed rule to designate 4,138,064 acres of critical habitat in 2004. In response to a lawsuit by developers, the Service revised the proposal in 2005 to only 737,912 acres, and finalized the rule in 2006 with just 450,288 acres - a reduction of 90 percent from the original proposed rule. Today’s proposal would increase the critical habitat by approximately 1,354,577 acres. “Even with the announced increase in acreage, the red-legged frog will receive habitat protection for less than half the areas that agency biologists have identified as essential for the recovery of the species,” said Miller. “Under the Bush administration, the Fish and Wildlife Service has consistently slashed the size of proposed critical habitats, so we will be watching the final designation closely.” In 2007 the Center for Biological Diversity and other groups filed lawsuits challenging the Service’s refusal to properly designate and protect critical habitat areas for 19 endangered species, including the California red-legged frog. The suits are part of a broader effort by the Center to challenge political corruption harming 55 endangered species and over 8.5 million acres of wildlife habitat. Many of the flawed critical habitat decisions were engineered by Julie MacDonald, the disgraced former Deputy Assistant Secretary of Interior who resigned in 2007 following a scathing report by the Inspector General and investigations into political meddling in scientific decisions by MacDonald and other high level officials in the Department of Interior and the Fish and Wildlife Service. In a 2007 regional review of endangered species decisions potentially tainted by Macdonald, the California/Nevada Operations office of the Service declared that the red-legged frog critical habitat decision was invalid and should be redone. Director Dale Hall, in a memo to Assistant Secretary of Interior Lynn Scarlett confirmed the frog as one of the decisions “that should be re-evaluated.” The Service cited a biased and controversial economic analysis as justification for cutting the original habitat designation for the frog from 4.1 million acres to 450,000 acres, a reduction of 90 percent. From 2000 to 2003 the Service shrunk the size of proposed critical habitats for species on average by 75 percent. The Service is contemplating excluding areas from the final rule for the frog based on a planned revision of the economic analysis, and may exclude other areas based on supposed conservation measures in place to protect the species. Critical habitat can be the most effective tool for recovering species beyond listing under the Endangered Species Act. A scientific study published in BioScience in 2005 showed that endangered species with critical habitat are twice as likely to recover as species that do not have critical habitat designated. Made famous in the Mark Twain story, The Celebrated Jumping Frog of Calaveras County, the California red-legged frog has lost more than 70 percent of its historic habitat. Frog populations have declined due to habitat loss from urbanization and introduction of exotic species such as bullfrogs. The frog is believed to be extinct in the Central Valley and is extirpated from 99 percent of its Sierra Nevada range. Currently, the strongest breeding populations remaining are found along the coast from San Mateo to San Luis Obispo counties. The red-legged frog prefers ponds, marshes and creeks with still water. It requires riparian and upland areas with dense vegetation and open areas for cover, aestivation (summertime hibernation), food and basking. Undisturbed riparian vegetation is also necessary for female frogs to attach their egg masses, which float on the water surface until hatched (5-7 months). The proposal includes 49 units of critical habitat for the frog in Alameda, Butte, Calaveras, Contra Costa, El Dorado, Kern, Kings, Los Angeles, Marin, Mendocino, Merced, Monterey, Napa, Nevada, Placer, Riverside, San Benito, San Joaquin, San Luis Obispo, San Mateo, Santa Barbara, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, Ventura, and Yuba Counties. Background information on the red-legged frog can be found on the Center for Biological Diversity Web site at: www.biologicaldiversity.org/species/amphibians/California_red-legged_frog/index.html Background information on political interference with endangered species decisions by Fish and Wildlife Service bureaucrats can be found at: www.biologicaldiversity.org/campaigns/watchfrogging_political_corruption/index.html Today's Federal Register notice on the revised critical habitat is at: http://edocket.access.gpo.gov/2008/pdf/E8-20473.pdf The Center for Biological Diversity is a nonprofit conservation organization with 180,000 members and online activists, dedicated to the protection of endangered species and wild places. ###***************************************Jeff MillerConservation AdvocateCenter for Biological Diversity351 California Street, Suite 600San Francisco, CA 94104Phone: (415) 436-9682 x303Fax: (415) 436-9683Web site: www.biologicaldiversity.orgThe Center for Biological Diversity works through science, law, and media to secure a future for all species, great or small, hovering on the brink of extinction. Kansas City.com1.8 million acres proposed as critical habitat for red-legged frog...MICHAEL DOYLE, McClatchy Newspapershttp://www.kansascity.com/440/story/799906.htmlThe California red-legged frog regained political territory Tuesday as the Fish and Wildlife Service proposed designating 1.8 million acres in California as critical habitat for the threatened species.The proposal spans 28 counties and more than triples the agency's previous critical habitat proposal. Fish and Wildlife Service officials also hope it quiets the long-running amphibian controversy, although that may be unlikely."The goal of the Service is to help recover this species, which is a California icon that Mark Twain first made famous in the days when early Californians hunted the frogs as a food delicacy," Mike Fris, the agency's Sacramento-based acting assistant regional director, said in a written statement.The largest native frog in the Western United States, the California red-legged frog casts an equally outsized political shadow. The new critical habitat proposed Tuesday is the fourth revision in seven years. The last rewrite was retracted after federal investigators began examining former Deputy Assistant Interior Secretary Julie MacDonald.Though avoiding her name, the Fish and Wildlife Service stated Tuesday that MacDonald "may have inappropriately influenced the extent and locations" of the frog's prior critical habitat proposal. The latest revisions largely pleased environmentalists, who along with Fish and Wildlife Service professionals had frequently clashed with MacDonald."No endangered species can survive without its habitat intact, and the red-legged frog desperately needs protection of adequate wetlands habitat throughout its former range," declared Jeff Miller, conservation advocate with the Center for Biological Diversity.Critical habitat is the area considered essential to species recovery. It is not a reserve, nor is its land purchased by the government. If federal actions such as levee construction potentially threaten the species or its habitat, the agencies must consult on plans.The latest critical habitat proposal grew, in part, because officials added land adjacent to known populations. Officials also lifted a previous restriction that kept upland critical habitat to within several hundred feet of a water source.Of the total, 1.2 million acres are privately owned and the rest is owned by state, federal or government agencies. This includes, for instance, portions of Vandenberg Air Force Base and the Army National Guard's Camp San Luis Obispo.The specific 49 habitats range from a 4,449-acre parcel in northwestern Calaveras County to several hundred thousand acres in San Luis Obispo County. It excludes land in Merced, Fresno and Stanislaus counties that had originally been included.Critics including Rep. Dennis Cardoza, D-Calif., have suggested critical habitat designation effectively lowers property values because landowners feel more constrained. Fish and Wildlife Service officials said they avoid developed land where possible."I have reservations about the need for a listing," Cardoza said Tuesday, adding that "the process is broken, because they have had to go back and redo this a number of times."Officials are still calculating the proposal's estimated cost.The Fish and Wildlife Service initially proposed in 2001 a critical habitat covering 4.1 million acres. Ranchers, developers and San Joaquin Valley lawmakers erupted. The agency then scaled the proposal back to 737,912 acres. That didn't end the struggle.In April 2006, the Fish and Wildlife Service proposed 450,288 acres. A year later, officials backtracked and said they would try yet again because of MacDonald's apparent interference. MacDonald abruptly resigned in May 2007."MacDonald ... did not want to designate critical habitats," the Interior Department's Office of Inspector General reported last year, adding that MacDonald appeared "frustrated" by the critical habitat decisions.   -----------------------------------------------------------------------------------------------------------CENTRAL VALLEY SAFE ENVIRONMENT NETWORK MISSION STATEMENTCentral Valley Safe Environment Network is a coalition of organizations and individuals throughout the San Joaquin Valley that is committed to the concept of "Eco-Justice" -- the ecological defense of the natural resources and the people. To that end it is committed to the stewardship, and protection of the resources of the greater San Joaquin Valley, including air and water quality, the preservation of agricultural land, and the protection of wildlife and its habitat. In serving as a community resource and being action-oriented, CVSEN desires to continue to assure there will be a safe food chain, efficient use of natural resources and a healthy environment. CVSEN is also committed to public education regarding these various issues and it is committed to ensuring governmental compliance with federal and state law. CVSEN is composed of farmers, ranchers, city dwellers, environmentalists, ethnic, political,and religious groups, and other stakeholders