9-20-08

 9-20-08Merced Sun-StarCalifornia unemployment rate hits 7.7 percent...DON THOMPSON - Associated Press Writer, Sacramento Beehttp://www.sacbee.com/308/v-print/story/1250131.htmlA tumbling economy and crumbling housing market sent California's jobless rate to 7.7 percent in August, the highest level since March 1996.The unemployment rate announced Friday by the state Employment Development Department was up from a revised 7.4 percent in July, and a big jump from the 5.5 percent figure a year ago.Behind the numbers are 1.42 million unemployed Californians, more than triple the 413,000 jobless in August 2007. The department recorded a 61,000 increase in the jobless rolls just since July.The unemployed included 509,700 layoffs. The department found 116,800 left their jobs voluntarily. The remainder were newly looking for jobs or were unemployed because they had finished temporary jobs...California tied with Mississippi for the nation's third highest unemployment rate, behind Michigan's 8.9 percent and Rhode Island's 8.5 percent. The national unemployment rate was 6.1 percent last month.The flat-line housing market handed California's construction industry the most job losses over the last year, down 79,200 jobs since August 2007. The drop of 8.9 percent means a loss of nearly one out of every 10 construction jobs.The construction, banking and mortgage industries combined for a loss of 112,500 jobs. Financial sector jobs were down 3.7 percent from a year ago."That's where all the housing problems have hit," said department spokesman Kevin Callori. "It's definitely related to the housing market, and then it's spilling over into the other industries and hurting them."The job loss in those sectors at least seems to be slowing...Genetically-altered 'Super Chicken' takes step toward marketGovernment to start looking at how to sell genetically altered animals....RICARDO ALONSO-ZALDIVARhttp://www.mercedsunstar.com/167/story/462469.htmlWASHINGTON -- Super Chicken strutted a step closer to the dinner table Thursday.The government said it will start considering proposals to sell genetically engineered animals as food, a move that could lead to faster-growing fish, cattle that can resist mad cow disease or perhaps heart-healthier eggs laid by a new breed of chickens.The rules will also apply to drugs and other medical materials from genetically engineered animals, a field with explosive potential.U.S. supermarkets currently sell no meat from genetically engineered animals. But a Boston-area company called Aqua Bounty Technologies hopes to win approval next year for its faster-growing salmon and make the fish available by 2011. "It tastes just like any other farm-raised salmon," said vice chairman Elliot Entis, who has sampled it.Reaction from consumer groups was mixed. They welcomed the government's decision to regulate genetically altered animals, but they cautioned that crucial details remain to be spelled out. For example, the Food and Drug Administration does not plan to require that all genetically engineered meat, poultry and fish be labeled as such. It would be labeled only if there was a change in the final product, such as low-cholesterol filet mignon."They are talking about pigs that are going to have mouse genes in them, and this is not going to be labeled?" said Jean Halloran, director of food policy for Consumers Union. "We are close to speechless on this." Consumers Union publishes Consumer Reports magazine.Nonetheless, Gregory Jaffe, who heads the biotechnology project at the Center for Science in the Public Interest called the FDA's move a "good first step.""This is the first time the federal government is announcing a comprehensive regulatory system that addresses the concerns from these animals," said Jaffe. "But it may not have addressed all the environmental concerns."What would happen if a genetically engineered animal escaped and started reproducing with wild animals of the same species? asked Jaffe. The FDA said it would address that issue.On Thursday, the FDA released a proposed legal framework for how it would resolve such questions as whether the altered animals are safe for human consumption and whether they pose any serious environmental risk. FDA officials said they were focusing on animals that will be used as food, or to produce medications that would then be consumed by people or by other animals. The agency is not interested in reviewing genetically engineered mice already widely used in lab experiments.Genetic engineering is already widely used in agriculture to produce higher-yielding or disease-resistant crops. But it's unclear how consumers will react to altered animals, even if they come with a government seal of approval.Genetically engineered -- or GE -- animals are not clones, which the FDA has already said are safe to eat. While clones are exact copies of an animal, genetically engineered animals are manipulated by scientists to bring about a change in their characteristics. In years past, this was done by crossbreeding animals with desirable traits.GE animals are created when scientists insert a gene from one species of animal into the DNA of another animal to reprogram some of its characteristics. For example, fish could be made to grow faster, or pigs might be re-engineered to produce less waste.To engineer Aqua Bounty's faster-growing salmon, scientists took a snippet of DNA from an eel-like fish and stitched it into the genes of salmon. Normally, Atlantic salmon produce growth hormone only in the summer months. But with the change, salmon produce growth hormone all year long, allowing them to grow to full size in about 18 months instead of three years, Entis said.While the introduction of GE animals by food companies will probably get the most attention from the public, it's the pharmaceutical industry that seems poised to reap the greatest benefits.Barbara Glenn, an animal science expert with the Biotechnology Industry Organization, said research is under way that could lead to the development of vaccines, transplant organs, replacement tissues, and other medically useful materials from genetically engineered ani mals...Merced judge frees secretary of housing nonprofitDistrict attorney says it wasn't fair to keep her in jail as others get out...CAROL REITERhttp://www.mercedsunstar.com/167/story/462443.htmlThe last person left in custody in the Firm Build case was released on her own recognizance Friday.Christina Ledezma, a secretary for Merced-based Firm Build, had been denied a reduction of her bail earlier in the week."Our position is that all the defendants should either have posted bail or remained in custody," said Merced County District Attorney Larry Morse II. Because of that, Morse asked the court to release Ledezma."Although bail was properly set, it is unjust for her alone to remain in jail," Morse said.Four people were arrested last week in connection with a 15-month investigation by the district attorney into the activities of Firm Build, a nonprofit that went bankrupt. The agency had relied heavily on taxpayer funding. Firm Build leaders Patrick Bowman posted bail of $266,000 and Joseph Cuellar posted a bail of $431,000 and were released early last week.On Wednesday, Buendia, who had been being held on $266,000 bail, was released without bail after Merced County Superior Court Judge Brian McCabe received letters from community members about Buendia's community service. Buendia is facing 17 charges connected with the fall of Firm Build, the nonprofit he ran for about 10 years...Morse said his office was concerned about the inequity of Ledezma being held in jail while her co-defendants have been released. Morse added that Ledezma was the only one of the four defendants who cooperated to any degree with Morse's investigationOne of the letters in favor of Buendia, which was written on U.S. District Court letterhead urging the Merced County Superior Court to lower Buendia's bail, is now under scrutiny by the Northern District of the court, where the letter writer is employed.On Friday, the Merced Sun-Star, along with McCabe, Morse, and Buendia's attorney Kirk McCallister, received a faxed letter from Chief Judge Vaughn R. Walker of the U.S. District Court, Northern District of California, which is in San Francisco.The letter stated that it had come to the attention of Walker that a court employee had written an unauthorized letter on court stationery concerning the release of a defendant facing criminal charges in Merced County Superior Court."The court is investigating the matter as a possible breach of the requirement that a court employee's position should not be used, or appear to be used, to advance the private interests of others," the faxed letter stated.The letter in contention was written by Lili M. Harrell, a courtroom deputy with the U.S. District Court. Harrell wrote that "as a close family friend (of Buendia), it is respectfully requested that the amount of bail be reduced."...Twenty letters were given to the judge by McCallister, Buendia's attorney. The letters writers included Merced College President Ben Duran, Supervisor John Pedrozo's sister and sister-in-law, Merced County Sheriff Mark Pazin's former secretary, and a current Housing Authority commissioner...These felons are out of jail and I would venture to guess that they will never see the inside of one again in relation to this case. Time served, case closed. :: 09/20/08 10:34am – LUCKYHORSE-------------NOPE, wrong again, it wasn't fair to let the rest go free. Man, things there are really out of hand with law enforcement and the courts. It sure looks like justice doesn't exist there in the Kommunist Republik de Merced, Norte Mexico. And, just 20 "letters", what about the thousands of residents there that didn't write letters, but are outraged these criminals got out of jail, and VOICED so, I figure their will just got "avoided/lost" in all the "law enforcement" going on. :: 09/20/08 10:14am – daveray-------------First of all I do not believe any of these four should have been released without posting bail. Also, for those of you who have been stating that these men are innocent and are chastising the reporter for writing these articles in the first place, if they are innocent then why didn't they cooperate with the investigation to prove their innocence? I believe that most innocent people would not run from an investigation, wouldn't they want to cooperate and prove to the D.A. that they had done nothing wrong? Just a thought. :: 09/20/08 9:55am – yesss-------------OR? Come on you Guys! Justice is Supposed to be BLIND! Not stupid! Is everyone sleeping well at night? :: 09/20/08 9:34am - mema60-------------It pains me to see the blatant favoritism displayed in our local courts. Justice is supposed to be blind, it sickens me to see the outright double standard in our local courts.Would they be out of jail if they didn't have lots of stolen money and powerful friends.Those kids aren't their only victims, our whole community has to pay for their greed. How many kids are out doing drugs and stealing that would have got the opportunity to succeed. It sickens me to see the good ol' boy network here. Good job Morse and all your deputys! :: 09/20/08 9:31am – unevolved-------------Whoa. Shouldn't it have gone the other way? Shouldn't Morse have asked the judge to consider requiring Buendia to post bond? If we follow his logic, it is unfair to keep all sorts of accused criminals behind bars because they can't make bail. So let's let them all out, close the jail and save the taxpayers a ton of money! Also, if I were related to an inmate, I'd get the inmate's friends to write letters to the judges. The tactic seems to work. P.S. It's no wonder we have a crime problem. :: 09/20/08 9:30am - realsolutionsPublic NoticeHousing Authority of the County of Merced...REQUEST FOR PROPOSALS FOR LEGAL SERVICES PROPOSALS http://www.legalnotice.org/pl/mercedsun-star/ShowNotice.aspxRequest for Proposals LS 2008-101 Housing Authority of the County of Merced 405 U Street * Merced, CA 95341 REQUEST FOR PROPOSALS FOR LEGAL SERVICES PROPOSALS WILL NOT BE OPENED AND READ PUBLICLY Notice is hereby given that the Housing Authority of the County of Merced (HACM) is issuing a Request For Proposals (RFP) for qualified firms to provide a variety of legal services, that may include but not limited to: General Counsel; Environmental Law; Real Estate Law; Public Housing Law; Farm Worker Housing Law; Construction Law; Litigation, both tort and contract; Civil Rights and Fair Employment; and Tenant-Landlord issues. This is not a sealed proposal request and proposals will not be opened publicly. Primary evaluation factors will be knowledge, experience, ability and price. The project scope, content of proposal and selection process is summarized in the RFP package. Full proposal documents are on file and copies may be obtained by contacting: 1) the HACM main office, 405 U Street, Merced, CA 95341 or 2) email at sue@merced-pha.com; SUBJECT: RFP #LS2008-101 or 3) telephoning (209) 386-4137. Interested parties must submit four sets of signed proposal documents, one (1) original and three (3) copies in a sealed envelope to the Housing Authority of the County of Merced, 405 U Street, Merced, CA. 95341, ATTN: RENNISE FERRARIO, no later than 2:00 P.M. on October 8, 2008. All submissions must be secured in a sealed envelope or package, and clearly marked REQUEST FOR PROPOSAL: LEGAL SERVICES. Submittals will not be accepted after the date and time stated above. Incomplete proposals or proposals that do not conform to the requirements specified in the RFP will not be considered. No bid shall be withdrawn for a period of sixty days subsequent to the opening of proposals without the prior written consent of the HACM. The HACM reserves the right to sole and exclusive judgment in the determination of the qualifications of the proposer. Further, the HACM reserves the right to reject any and all proposals, and further reserves the right to waiver any informalities or irregularities in the proposals, or to accept or select any proposal that the HACM, in its sole and absolute discretion, determines best meets its needs. Contract may be awarded without negotiation. HOUSING AUTHORITY OF THE COUNTY OF MERCED Rennise Ferrario, Executive Director Legal Septembe 20, 24, 27, 2008 Modesto BeeUnemployment drops as ag picks up speedTransport, health and manufacturing good bets for jobs, labor analyst says...EVE HIGHTOWERhttp://www.modbee.com/business/story/436208.htmlStanislaus County's unemployment rate lingers in double digits, but there was a glimmer of hope in data released Friday. The county's unemployment rate broke its three-month trend, dropping to 10.6 percent in August.The county's unemployment rate was 11.3 percent in July, according to state Employment Development Department data.San Joaquin, Merced and Mariposa counties also bucked the rising unemployment trend in the state. California's rate jumped from 7.4 percent in July to 7.7 percent in August.Stanislaus County's drop in unemployment is common for this time of year, said Liz Baker, an EDD labor market analyst. Baker attributes the San Joaquin Valley's month-to-month decline in unemployment to the season. Agricultural and manufacturing jobs generally pick up this time of year because of the nut, tree-fruit and grape harvests.Although those jobs rise and fall with the seasons, some job sectors are proving their strength in the midst of a weak economy...Year-to-year data provides that picture, showing that jobs in health, agriculture, transportation and education are secure -- and growing...Manufacturing jobs, especially those in food and beverages, has seen some growth, too. Machine maintenance people and those with higher-level skills are most sought after in manufacturing, said Jeff Rowe, director of the Alliance Worknet, which helps connect businesses with job seekers.From farm labor to research, agricultural jobs are strong...While construction, finance and other jobs related to real estate suffered after the housing bubble burst, there is other work out there...Report finds little easement oversight...MICHAEL DOYLE, BEE WASHINGTON BUREAU http://www.modbee.com/local/story/436297.htmlWASHINGTON -- The Agriculture Department is paying landowners to conserve wetlands but is failing to monitor the results, investigators warn in a report. One result arose in the Sacramento Valley, where investigators uncovered trash piled up on property for which the Agriculture Department had purchased a conservation easement.A manpower shortage may be part of the problem... In California, for instance, investigators sampled 25 conservation easements funded through the Wetlands Reserve Program. The easements are supposed to be monitored annually for violations, which could include crop growing, dumping trash or construction.But investigators found only one of the 25 California parcels had received the annual monitoring. The overlooked easements included parcels in Yolo, Colusa and Siskiyou counties. Nor was California alone. Investigators determined that 88 percent of the wetlands reserve easements reviewed in five states did not receive annual monitoring. The consequences can turn ugly."In one case, we found substantial dumping of hazardous debris, which destroyed about eight acres of restoration," the investigators noted in the report quietly made public Tuesday. In response, Agriculture Department officials have vowed to improve monitoring -- including use of high-resolution aerial photography and a remote- sensing specialist. By next year, officials say, they will have aerial photographs of all wetlands easements, which can be checked against photos taken each year. The Wetlands Reserve Program pays landowners for a 30-year easement, a permanent easement or for a 10-year contract under which the Agriculture Department will share wetlands restoration costs. The Agriculture Department spends more than $225 million a year on the program, reauthorized in a farm bill passed this year. Farmers, lawmakers and environmentalists have embraced it as a way to protect valuable wetlands while steering more money to rural areas... In Fresno County through 2006, seven wetlands contracts had been signed covering 7,231 acres; in Merced County, 17 contracts had been signed protecting 5,295 acres.In Stanislaus County, as of 2006, there were eight wetlands contracts covering 2,901 acres. In San Joaquin County, there were four contracts covering 1,652 acres.Investigators preparing the report did not closely examine easements south of Sacramento.In the Sacramento Valley, investigators discovered a "permanent structure" on two protected wetlands and trash on a third. The problems were even more pronounced elsewhere...The Agriculture Department's Natural Resources Conservation Service further promised in writing that the specific easement violations found by investigators "will be addressed" by Oct. 1. Agency officials could not be reached to comment Friday. The trashed wetlands identified by investigators are only a small portion of the 1.9 million acres enrolled nationwide in the Wetlands Reserve Program. This includes about 100,000 acres in California enrolled since the program began in 1992. The farm bill enacted this year authorizes an additional 185,000 acres to be enrolled annually, for a maximum of 3 million acres nationwide. The previous limit was 2.2 million acres. State officials say the easements have already "surged beyond their ability" to watch closely."Since (the Agriculture Department) links employee performance to the number of new acres enrolled, states have focused on acquiring new easements, regardless of the staff resources available to monitor them," investigators stated.Fresno BeeBuilders' suit on air fees rejectedFederal judge tosses group's challenge to levy, rules on pollution related to sprawl...John Ellishttp://www.fresnobee.com/263/story/881471.htmlA federal judge in Fresno threw out a lawsuit Friday that challenged a controversial -- and possibly precedent-setting -- fee that makes developers pay for pollution caused by traffic coming from new homes and businesses. In a 26-page ruling, U.S. District Court Judge Lawrence J. O'Neill rejected arguments by the National Association of Home Builders that the fee and accompanying rules set up by the San Joaquin Valley Air Pollution Control District in December 2005 -- and took effect in March 2006 -- were superseded by the federal Clean Air Act."It's a good rule," said district counsel Phil Jay. "It gets good [emissions] reductions. It's innovative." But the building industry says the rules have resulted in higher home costs, though the exact number is hard to quantify because there are so many variables involved, said Michael Prandini, executive director of the Building Industry Association of the San Joaquin Valley...The new rules had already survived a challenge -- based on different legal issues -- in Fresno County Superior Court, though that February decision by Judge Donald S. Black is under appeal. Environmentalists hailed O'Neill's decision, saying other air districts in California -- and states such as Nevada and Arizona -- are considering following the lead of the Valley's air pollution district. But they were waiting to see what happened with the state and federal lawsuits."This was, I think, maybe the first attempt by an air district or state or anyone to try and get at that sprawl-related pollution," said Paul Cort, an attorney with Earthjustice, a nonprofit legal watchdog group in Oakland. Cort worked with the Environmental Defense Fund, a national environmental advocacy group that joined the air pollution district's side in the lawsuit. The rule requires developers of some large commercial projects and residential developments to measure emissions that would be indirectly generated both during the construction process and after completion. Emission targets were then set for developers to meet -- or pay a fee if they were exceeded.Officials calculate the amount of emissions with a mathematical model commonly used by planners in determining the number of miles people drive from developments into other parts of a city. From the mileage, air officials estimate the amount of pollution coming from new developments. When the district passed the rule, provisions to reduce fees were included for builders who installed clean-air features, such as outdoor outlets for electric lawn mowers, bike lanes and energy-efficient water heaters. "This is definitely important in setting a precedent that the courts, along with the air district, see this as a measure that can withstand the Clean Air Act and other California law," said Camille Kustin, a policy analyst with Environmental Defense Fund...After federal plan, lending will still be tight in Valley...Bethany Clough, Sanford Nax and Robert Rodriguezhttp://www.fresnobee.com/263/v-printerfriendly/story/881422.htmlDevelopers are scrambling to find lenders, car loans are harder to get, home equity lines are being frozen and cash for small-business loans is drying up. And Friday's news that the Bush administration has a plan to suck bad debt out of the loan industry isn't likely to radically change the Valley's lending landscape. "Gone are the days when banks were standing on the street corner giving out credit like it was candy," said Greg McBride, senior financial analyst for Bankrate.com, a personal finance Web site. Banks have less cash and are tightening lending standards, he said. Even banks not awash in tanking subprime mortgage loans are finding fewer investors waiting to buy the loans they make, which means less money to lend, McBride said...Home-equity linesHomeowners are increasingly having lines of credit frozen or slashed because the values of their houses are falling. Banks worry that the borrower will default on the loan if the value tumbles too far...Home loansThe days of buying a house with no money out of pocket are basically gone. Lenders are now requiring homebuyers to invest a minimum of 3% for an FHA loan and 5% for conventional financing... Car loansAuto loans for used cars are harder than ever to get, said Auto Maxx finance manager Sami Asadourian...Developer financingLenders are requiring that builders make higher down payments, sometimes close to 40%, compared with about half that in past years, said Darius Assemi of Granville Homes, which is a partner in Fulton Plaza, a mixed-use project in downtown Fresno consisting of apartments and commercial space.Fulton Plaza found financing and is under way, but the developers of The Legacy Downtown a few blocks away are having trouble. The project -- apartments, an ice skating rink, offices and retail space on a parking lot next to Selland Arena -- is stalled. "It's actually hysterical," said developer Brian Glover. "We had a bank in play in February, and that bank stopped lending in February. We had another bank in April, and that one stopped lending. You just run out of options. It's very difficult to do any kind of development." The Legacy's developers are considering alternatives, including seeking federal funds or phasing construction, Glover said. "We won't go to the city for money," he said.Small-business loansSmall-business owners and entrepreneurs, once the darlings of the lending industry, are also finding a tougher time securing financing.Farm loansTom Brown, CEO of Fresno Madera Farm Credit, doesn't mind being criticized for being too conservative during peak economic periods, especially now that nonfarm lenders nationwide are struggling with the fallout of poor loan decisions......Brown said his strategy to lending remains the same: loan aggressively during the downturn to companies with growth potential, such as almond or grape producers, and don't get overly aggressive during the upside... But for those growing commodities that have not performed well over the last few years, the search for bank financing is becoming tougher...Stockton RecordCourt upholds builder air rule...Alex Breitlerhttp://www.recordnet.com/apps/pbcs.dll/article?AID=/20080920/A_NEWS/809200325/-1/A_NEWSFRESNO - Developers fighting an air pollution rule that they claim could add thousands of dollars to the price of a new home lost another legal battle Friday, this time in federal court.The National Association of Home Builders sought to overturn the innovative rule, which requires builders in the San Joaquin Valley to compensate for indirect pollution, such as traffic smog resulting from a new shopping center or neighborhood.A federal judge, however, found that the San Joaquin Valley Air Pollution Control District's rule is legal. Earlier this year, a similar lawsuit was thrown out by a Fresno County Superior Court judge..."We have significant natural challenges to our air quality in the Valley" because of geography and climate, said Seyed Sadredin, the district's executive director. "Piling on our historic tendency to sprawl has only posed another obstacle to achieving cleaner air."...Under the rule, builders must reduce pollution that is indirectly caused by their projects. They could do this by building more sidewalks, plug-ins for electric vehicles or green spaces, for example.They also can pay to offset their pollution, with the money used to clean up other sources, such as dirty diesel engines. The rule was adopted in December 2005. Officials have said they believe it could be a model for other regions attempting to clear the air.How it works• Developers are encouraged to reduce air pollution by putting homes or businesses near bus stops, building bicycle paths and sidewalks, increasing energy efficiency and other strategies.• Developers pay a fee if emission levels still are above a certain threshold after mitigation actions are taken. The amount depends on the quantity of pollution.• The money the district collects is used to prevent pollution elsewhere.• The program includes more than merely homes and businesses of a certain size. Schools, government buildings, hospitals and industrial properties also are subject to the program.Source: San Joaquin Valley Air Pollution Control DistrictAnother fish rescue at Caples...The Recordhttp://www.recordnet.com/apps/pbcs.dll/article?AID=/20080920/A_NEWS/80919031/-1/A_NEWSKIRKWOOD - State game officials plan to conduct a second fish rescue at Caples Lake.The rescue will begin Monday after workers this weekend install a temporary bladder dam to hold back water near the site of the permanent dam. The lake's waters have been lowered to allow emergency repairs of the large gates that release water from the reservoir. Those gates were found in June to be in danger of failure and in need of immediate repair...Tracy PressCalifornia, the anti-water works Second Thoughts: The state's water system is a real mess, and things are likely to get worse before they get better...Jon Mendelson    http://tracypress.com/content/view/15850/2244/When Jim McLeod introduces himself, he doesn’t say he’s a farmer. He tells you he grows your food. It’s his small effort to overcome what he says is a dangerous disconnect among those who come no closer to a farm than walking through the Safeway produce aisle. Everyday consumers understand that something’s wrong when the price of groceries goes up, he told me Thursday, but they rarely connect the dots from supermarket shelf to Sacramento-San Joaquin Delta. It’s all about water. Without a steady supply, farmers like him are up a dry creek. And so are those who eat their products...It’s been a tough season for California farmers. In addition to two consecutive winters of below-average rainfall, less water has churned down the state and federal canals that are the lifeblood of Central Valley agriculture because of court rulings. That means water’s been an even more precious commodity than usual, and hundreds of thousands of acres of arable land lay fallow, because there simply isn’t enough water to irrigate.  It could get worse if Mother Nature doesn’t bail out the state with a wet spring, or if a pending environmental lawsuit temporarily strips 42 irrigation districts of their water rights. These conspiring factors worry McLeod, a grizzled veteran of the state water wars. For decades he’s grown apricots — now walnuts — in the valley, and for the past 47 years he’s sat on the board of the Banta-Carbona Irrigation District. He’s 79, and he’s seen it all when it comes to California’s water management. And what he sees now is a whole lotta bad. There’s no question that the state’s water system is in disarray. There’s not enough water in the Delta for farmers, fish and faucets, not enough storage to hold over water from wet years to dry ones, and not enough leadership in Sacramento to do anything productive about it. Well, there’s the governor’s blue ribbon task force and peripheral canal, but let’s not mistake a bad idea with progress. It’s a sign of how messed up things are that Timothy Brick, chairman of the giant Metropolitan Water District of Southern California, publicly admitted, "In past planning, the worst-case scenario we looked at wasn’t bad enough — we are at the worst-case scenario." Actually, it could be worse. A few levees could break (knock on wood) and really screw things up, inviting salt water upstream and shutting down the on-again off-again pumps for months. Let’s forget that for a moment, though. Things are bad enough as they are. Especially when you consider that the fix for all this requires farmers, environmentalists, urban leaders and lawmakers to find a solution with a little something for everyone. Something that mixes more conservation, more storage, smarter farming and better urban planning. ..Every player — farmers, environmentalists, city dwellers — has a stake in making sure the Delta survives while providing enough water for drink and food. Everyone has something to give and to gain. Which brings us back to McLeod’s introduction.If more people drew the line between the wet stuff it takes to grow alfalfa and the milk that washes down a chocolate-chip cookie, priorities when it comes to water — and working with one another — might change."Without water, you have nothing," he warned. Words worth remembering. San Francisco ChronicleBudget has $815 million for flood control...Peter Fimritehttp://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/20/MN3Q131AOP.DTL&type=printablePROPOSAL: About $815 million from Propositions 1E and 84 bond money will go to FloodSAFE California, a Department of Water Resources program to create a flood management and emergency response system throughout California. That includes $391 million for levee repair and flood-control projects in the Central Valley. The budget, however, does not include all the money for flood-control projects in the delta and storm-water improvements that the governor proposed. The spending plan would help companies refit exhaust-spewing diesel trucks and buses, reducing cancer- causing soot. All state parks and beaches would remain open. WHAT IT MEANS TO YOU: The FloodSAFE program will help local governments protect communities from flooding and provide grants for levee repairs and improvements in the Central Valley and delta.REACTION: "FloodSAFE funding will continue to provide increased flood protection for Californians, which Gov. Schwarzenegger has made one of his administration's top priorities," said Ted Thomas, spokesman for the state Department of Water Resources.Status quo for UC and CSU budgets...Nannette Asimovhttp://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/20/MN3Q131AIV.DTL&type=printablePROPOSAL: The state will give the University of California and California State University essentially the same money as last year: nearly $3.3 billion for UC, and nearly $3 billion for CSU. The California Community College system will get a small increase to $6.4 billion, up from $6.1 billion. Each allocation is less than the state's estimate of what it costs to maintain the same level of service as last year. There are no cost-of-living increases or money for enrollment growth.WHAT IT MEANS TO YOU: The 10 UC campuses will have to cut about $100 million, even as enrollment rises. Eligible students won't be turned away, so classes are likely to become more crowded. Student tuition and fees, set in May, are up 7.4 percent over last year. At CSU, where tuition and fees are up 10 percent, thousands of students will be turned away. Raises are unlikely. The community college system, where enrollment is way up, won't offer some classes. REACTION: Educators expressed fear that problems will grow even worse if the governor exercises new power to make midyear budget cuts. "The California budget process is deeply fractured and completely dysfunctional," said Peter Goldstein, vice chancellor for finance at San Francisco City College. UC spokesman Brad Hayward called the budget "the best we could have done," but added, "You can't have a lot of years like this."Los Angeles TimesJudge upholds smog reduction measuresRuling backs San Joaquin Valley measure requiring developers to take steps to reduce driving by encouraging public transit, cycling and walking...Margot Roosevelthttp://www.latimes.com/news/local/la-me-air20-2008sep20,0,3582689,print.storyCalifornia chalked up a victory in its long battle against sprawl-induced smog Friday.A federal judge in Fresno upheld an ambitious regulation passed by the San Joaquin Valley Air Pollution Control District in 2005 that requires developers to minimize pollution by building near public transit, adding bicycle lanes or creating shopping areas designed for pedestrians. If they don't, they must pay a fee to fund emission reduction projects elsewhere.The heavily agricultural San Joaquin Valley, along with the Los Angeles area, suffers from some of the dirtiest air in the nation and a high rate of asthma and other respiratory diseases. The regulation, part of a plan to meet federal Clean Air Act standards, was challenged by the National Assn. of Home Builders.U.S. District Judge Lawrence O'Neill ruled that the district had authority to enact the regulation. Builders reacted angrily. "Single issue agencies such as the air board look for ways to grab local land use authority," said Jill Workman, a spokeswoman for the Building Industry Assn. Orange County. "Additional layers of bureaucracy will exacerbate the current housing and economic crisis." The National Assn. of Home Builders may appeal the decision.Environmental groups applauded the ruling. "No special interest should have a free ride in a region where schools warn parents to keep children indoors on bad air days," said Paul Cort, an attorney for Earthjustice, which represented the Sierra Club and Environmental Defense Fund in the case. According to Kathryn Phillips of the Environmental Defense Fund, hundreds of California developers have already complied with the pollution-cutting rule. "Its time for the trade associations to back off," Phillips said.San Diego Union-TribuneSewage plant likely to be exempt from federal standards, official says...Mike Lee http://www.signonsandiego.com/news/metro/20080920-9999-1m20loma.htmlPOINT LOMA – Although the official announcement is weeks away, California's top water-quality official for this region said San Diego seems poised to receive a waiver that will allow it to keep running its main sewage treatment plant below federal standards. The Clean Water Act requires sewage to be processed at the “secondary” level, which removes more solids and other pollutants. In the entire nation, no facility as big as the Point Loma Wastewater Treatment Plant still operates without at least a plan to attain the secondary threshold. San Diego has received two previous exemptions for its Point Loma complex, and it applied for a five-year renewal late last year. Environmental groups are pressuring San Diego to upgrade the facility so it doesn't continue to spew what they say are unacceptable amounts of pollutants into the Pacific Ocean. But Mayor Jerry Sanders said the retrofitting cost – which city officials said could reach $1.5 billion – is unnecessary because the current plant doesn't harm the marine ecosystem. San Diego probably would have to raise residents' water bills to improve the facility. “My assumption is that the city is likely going to operate with the waiver for the next five years and the reissued permit will reflect that. I haven't heard anything . . . to cause me to think otherwise,” said John Robertus, head of the San Diego Regional Water Quality Control Board, which is part of a statewide regulatory system. His agency has ample records tracking many years of discharges from the Point Loma plant, Robertus said, “and there isn't a regulatory push by the regional board to go to secondary.”Robertus and his team are working with the U.S. Environmental Protection Agency to review San Diego's request for a third waiver. The EPA generally needs the regional board's agreement to issue an exemption. Alexis Strauss, director of the water division at the EPA's office in San Francisco, expressed surprise at Robertus' statements. Her agency is reviewing reams of data related to the Point Loma plant... She expects the EPA to issue a tentative ruling in November, then gather public input during a hearing early next year. Late last year, environmental attorney Marco Gonzalez of the Coast Law Group in Encinitas said the city's request for another waiver means “we are moving toward litigationThis week, he said it was premature to speculate about whether conservationists would sue to try to block the third exemption. He added that San Diego “cannot expect to have its waiver forever, so no matter what, it should be planning for a day when the current paradigm is no longer viable.” CNN Money12th bank failure of the year announcedRegulators close down Ameribank Inc., a West Virginia-based-bank with total assets of $115 million...Catherine Cliffordhttp://money.cnn.com/2008/09/19/news/companies/ameribank_closure/index.htm?postversion=2008091920NEW YORK (CNNMoney.com) -- Ameribank Inc. was shut down on Friday by the Office of the Thrift Supervision, making it the 12th bank this year to go under.The Northfork, West Virginia bank had total assets of $115 million and total deposits of $102 million, according to a statement on the Federal Deposit Insurance Corporation Web site. The FDIC was named receiver and announced that it entered into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and the Citizens Savings Bank, Martins Ferry, Ohio, to take over all of Ameribank's deposits.Ameribank has five branches located in West Virginia and three branches located in Ohio. Branches in West Virginia will reopen on Monday and Ohio branches will reopen on Saturday. All customer accounts were automatically transferred to the two new banks and the full amount of their deposits will automatically be insured, the FDIC said. Customers of the banks can still access their money over the weekend by writing checks or using ATM or debit cards, according to the statement by the FDIC.A year of bank failuresThis year 12 banks have been forced to close their doors. In July IndyMac was closed down marking the largest collapse of an FDIC-insured institution since 1984. The Pasadena, Calif.-based bank failed because it backed risky home loans. With the special Alt-A home loan that IndyMac offered, a home buyer had to show little evidence of income and assets. When IndyMac was shut down, it had assets of $32 billion and deposits of $19 billion. While the FDIC protected most of IndyMac customer's assets, some customers lost some of their deposits.The FDIC insures the assets held by the 8,451 institutions with a total of $13.4 trillion.  Wall Street JournalCiti, Looking Rejuvenated, Weighs a WaMu Takeover Bid...DAVID ENRICH and ROBIN SIDEL in New York and DAN FITZPATRICK in Atlanta http://online.wsj.com/article/SB122178369973654767.html?dbkCitigroup Inc., moving to take advantage of the turmoil that is hobbling banks throughout the U.S., is considering making a bid for Washington Mutual Inc., according to people familiar with the situation."People view us today as being a source of the solution, instead of part of the problem," Gary Crittenden, Citigroup's chief financial officer, said in an interview. He declined to comment specifically about WaMu.Citigroup and several other banks are reviewing the Seattle thrift-holding company's books, which are packed with shaky mortgages, people familiar with the matter said Thursday. Other interested parties include Banco Santander SA, of Spain, and Wells Fargo & Co., of San Francisco. J.P. Morgan Chase & Co., which was spurned by WaMu earlier this year, is biding its time on a potential bid, people close to J.P. Morgan said.Spokesmen for all those banks declined to comment.Citigroup's interest in WaMu, which has branches across the U.S. but has struggled to build market share in many of the metropolitan areas it entered in recent years, comes just a few months after Citigroup was at the center of the credit crisis.While the New York company has suffered tens of billions of dollars in mortgage-related write-downs in the past year, it raised more than $40 billion in capital and has deposits to fall back on as a reliable funding source.As a result, Citigroup is in a relatively strong position to consider expansion opportunities that seemed impractical earlier this summer. In particular, Citigroup is eager to expand its U.S. retail-banking network.It isn't certain that Citigroup will make a bid for WaMu, but the mortgage lender's fate could be decided in the next several days, according to people familiar with the discussions. Earlier this week, the Federal Deposit Insurance Corp. met with WaMu Chief Executive Alan Fishman, according to people familiar with the situation.The federal agency expressed support for the company's decision to seek buyers, these people said. Mr. Fishman couldn't be reached.The turnabout at Citigroup is quelling some of the internal criticism faced by CEO Vikram Pandit, who took over last December. Until recently, some Citigroup insiders complained about his leadership style, which some critics said was indecisive... -------------------------------------------------------------CENTRAL VALLEY SAFE ENVIRONMENT NETWORKMISSION 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.