12-24-08

 12-24-08Merced Sun-StarMerced County's growth rate for 2008 lowest in 15 yearsWithout high birth rate, we would have lost residents...SCOTT JASONhttp://www.mercedsunstar.com/167/v-print/story/608664.htmlMerced County's population growth rate fell this year to 1.5 percent, the lowest it's been since 1993. The number of people residing in the county floated above California's growth average of 1.16 percent and ranked 12th out of 58 counties.Merced County is now home to 256,114 residents, according to figures released this week by the state Department of Finance.The state itself grew by 436,000 people, bringing the population to just above 38 million.The population report shows that Merced County's growth isn't nearly as rapid as it has been, though it's still adding more residents at a faster pace than other California counties. Much of that is due to a high domestic birth rate rather than droves of adults deciding to move to Merced.The struggling economy will result in fewer people moving around, Merced's Economic Development Manager Frank Quintero suggested. Those who do will be seeking jobs. "People go where commercial or industrial areas are booming," he said.The county logged 3,859 new residents this year, with babies leading the way. Mothers gave birth to 4,677 children, and 1,485 people died.Had it not been for the newborns, the county would have shrunk by about 800 residents.Immigrants, both legal and illegal, accounted for 1,475 new residents. The county saw 808 people pack up and leave.Much of that can probably be attributed to people losing their homes to foreclosure and moving elsewhere, Quintero said. He also noted that 600 jobs were recently lost in the county.Merced County's growth surged in 2000 when it hit 3.12 percent, the sixth-highest in the state that year. Other Valley counties, such as Stanislaus and San Joaquin, also ranked high.Growth held above 2 percent and flirted with 3 percent until last year when it fell to 1.65 percent.This is the second time in a row that, excluding immigration, that more residents left than arrived.Last year, 611 residents fled the county, which had been on a steady uptick of domestic residents since 2001. Both 2003 and 2005 each saw 2,300 people move into Merced County.Quintero said the county's growth was fueled by the housing market boom and also because investors touted the Valley as a wise bet.For more than 30 years, the population hasn't declined, except in 1996, a year after Castle Air Force Base closed. That was also the height of the last big recession.Figures from back then show that 4,962 people left, which amounted to a 0.52 percent decline. In the state that year, 277,728 headed elsewhere.Merced County workers forced to wait for layoff news35 in Human Services Agency likely to be let go...CORINNE REILLYhttp://www.mercedsunstar.com/167/story/608666.htmlEmployees at Merced County's Human Services Agency will find out by mid-January whether they're among the 35 workers who'll be laid off next year, officials said Tuesday. Facing a multimillion-dollar budget shortfall, the Board of Supervisors voted in November to lay off 39 workers at HSA and the county's work force investment department. The affected employees will officially lose their jobs June 1.Four people at the work force investment department will be laid off, and they were informed this month of who'd be cut.But employees at HSA are still waiting to find out. County administrators initially told employees they'd know by Dec. 15 whether they are among those who could be affected. But that date came and went. Employees now are being told they'll know by mid-January, said Kristy Waskiewicz, who heads the union that represents most county employees, the American Federation of State, County and Municipal Employees local 2703.Speaking at last week's Board of Supervisors meeting, Waskiewicz said county administrators told employees last week that it might take until Feb. 15 to develop a seniority list and notify employees at risk. Waskiewicz called that wait "unacceptable."I have (an employee who) doesn't even know if she can buy Christmas presents for her kids because she doesn't know if she's losing her job," she told the board.The Feb. 15 date was later moved up.A county spokeswoman, Katie Albertson, said the county is doing everything it can to inform employees as soon as possible. "Obviously, we want to give them as much notice as we can," she said. "We understand how difficult this is."But much of the process is out of the county's hands, she explained. Because HSA is federally funded, federal law mandates that the county defer to the California State Personnel Board to manage layoffs. The state uses an outside agency, Merit Systems Services, to carry out those functions. Merit wouldn't comment Tuesday on where it stands in developing a seniority list or why the layoff notifications were delayed. "We have no information to release regarding layoffs," said Gary Burkett, a project manager at Merit. Merced County is one of the area's largest employers. It has projected a $1.65 million budget shortfall this fiscal year and another $4.85 million next year.The county has 2,461 full-time and part-time employees. Of those 2,219 are full-time. HSA employs about 500 people.Modesto BeeModesto rail line buys two new locomotives, adds track...J.N. Sbrantihttp://www.modbee.com/local/v-print/story/543315.htmlGetting a train set for Christmas is a holiday treat for many families.This season, the Modesto & Empire Traction Co. joined in the fun by unwrapping two new locomotives, and the short-line railroad is building a mile of new track for them to play on."They're the first new locomotives we've bought in about 60 years," said Joe Mackil, M&ET's president and chief executive officer.The red-and- white locomotives cost $1.5 million each, and they're powerful enough to pull giant, 110-car trains through the Beard Industrial District."They're ultra-low-emission diesel locomotives," Mackil said. "They each have three engines instead of just one, so you only have to run as many engines as you need for the load you're carrying."Some heavy loads need hauling through Beard's industrial park these days.Five years ago, a couple of local guys -- Mike Barry of Oakdale and Paul Konzen of Escalon -- started a business at Beard to supply feed for cattle and dairy cows.Their Central Valley Agricultural Grinding Inc. now sells enough grain to feed 88,000 animals a day."They just kept growing and growing. Now they're one of our biggest customers," said Mackil. That's saying something, considering the M&ET hauls for E.&J. Gallo Winery, Frito-Lay, Del Monte and other food processing giants at Beard."We had no idea there was such a need for our services in the Central Valley," Konzen said. "Five years ago it was a big deal for us to have a 10- to 15-car train. Now we need to handle 110 cars ... on trains that can be 8,000 feet long."Those so-called unit trains come loaded with grain from the Midwest and Canada.The Beard Industrial District and M&ET weren't set up for such long trains."We've been hooking up six or seven of our older locomotives to move those trains," Mackil said. "And they were straining their guts out to do it."The railroad's locomotives -- which only haul freight around the 2,000-acre Beard complex -- primarily have 600-horsepower engines. The two new locomotives, however, have 2,000-horsepower engines, and together they've got more than enough strength to haul 110 cars. Besides needing lots of power, however, those 1.5-mile-long trains require lots of room to maneuver. To avoid blocking streets, M&ET has been breaking up the trains and moving them in sections around Beard, but that's inefficient and time-consuming."There's a metamorphosis happening in the rail industry: Now bigger is better because bigger is more efficient," said Konzen, 44. Building a mile of trackSo, to accommodate the big trains, one mile of railroad track looping in front of a giant, new 4.5-acre grain storage facility is being built at Beard for Central Valley Ag Grinding. Another building covering the tracks also is being constructed so the grain can be unloaded inside without the train ever stopping."It's a joint venture (with the railroad and the industrial park), and there's a financial contribution on our part," said Konzen, whose company will lease the buildings. "We've guaranteed (M&ET) a certain amount of business for the next seven years."Mackil said the new track and buildings will cost $5 million to $10 million. He's convinced the investment is worth it: "We'll make our railroad more competitive so we can keep jobs here. Over time, when you invest in your business, your business grows."The investment also will be good for Central Valley Ag Grinding."We're doing it to expand and better service our customers and our community," said Barry, 38.He said his company already has benefited the dairy and cattle industries because it has "reduced a lot of truck miles hauling feed up and down the Central Valley."Cost of feed loweredBefore the company opened, Konzen said, most of the region's livestock grain was trucked in from the Southern San Joaquin Valley. He said by bringing in large grain shipments by train to Beard's more centralized location, "it's lowered feed costs by $3 to $5 per ton" to our customers.Konzen said livestock feed typically costs $190 per ton, and his company sells about 500,000 tons a year. The company employs 22 people.With the new storage building, the more-efficient indoor unloading facility as well as the new track and locomotives to serve them, Konzen is optimistic about expanding his business and saving his customers even more money.Everyone benefits when businesses like his expand, Konzen said: "Anything that's good for the ag community is good for the urban community."Fresno BeeCalifornia counting on clout in WashingtonSome of the state's GOP, Democrats will hold key posts under Obama administration...Michael Doyle and Rob Hotakainenhttp://www.fresnobee.com/local/story/1094343.htmlWASHINGTON -- California will regain some of its political mojo next year, on both ends of Pennsylvania Avenue.On Capitol Hill, California lawmakers will chair the committees that manage health, education, energy and more. One California senator will oversee the nation's spies. The other will write global warming legislation. A willful San Franciscan will run the House of Representatives.Sixteen blocks away, the White House and its executive branch environs will be equally well-populated by Californians. Two Cabinet secretaries and multiple key economic, environmental and legislative advisers bring years of California experience. Simply by the numbers, California's renewed stature seems undeniable. The numbers and titles, though, don't tell the whole story.Clout, it turns out, is complicated."It brings a California sensibility to Washington, but that doesn't necessarily translate into pork or the other, standard measures of power," noted Marc Sandalow, director of the University of California at Merced's Washington program.When Barack Obama is sworn in as president on Jan. 20, California Democratic Sen. Dianne Feinstein will serve as emcee for the inauguration.Sandalow observed that California is home to ultra-liberals like Oakland Democrat Barbara Lee, ultra-conservatives like Orange County Republican John Campbell and quintessential centrists like Rep. Dennis Cardoza, D-Merced.Two California liberals will be leading the fight against global warming, which President-elect Barack Obama is promising to make one of his top priorities.Democratic Sen. Barbara Boxer is the head of the Senate's Environment and Public Works Committee, which has jurisdiction over the issue. And in the House, Democratic Rep. Henry Waxman of Los Angeles will lead the debate as head of the House Energy and Commerce Committee.Boxer and Waxman will find likely allies in Nancy Sutley, the deputy mayor of Los Angeles who will become chair of the Council on Environmental Quality, and Steven Chu, the Nobel Prize-winning Lawrence Berkeley Laboratory director who will become secretary of energy. Also nominated is Rep. Hilda Solis as labor secretary. As head of the Senate's public works committee, Boxer also will have a big say in how transportation dollars get spent. California's most powerful player will be Democratic House Speaker Nancy Pelosi of San Francisco, who's positioned to have more clout than any other House speaker since 1994, when Republicans won a majority under Newt Gingrich.Even some California Republicans find themselves holding power or moving up. The senior member of the House Appropriations Committee is Rep. Jerry Lewis, R-Redlands.Kevin McCarthy of Bakersfield will be the GOP's chief deputy whip, rising to the No. 3 position. He'll get an office in the Capitol and will attend daily leadership meetings.It's dangerously easy to overstate how much clout any one individual might have, particularly when the individual is charismatic.When Gov. Arnold Schwarzenegger took office in November 2003, for instance, he trumpeted his intention to become the "Collectinator" of federal funds."We are not asking the White House, and we are not asking the federal government or anyone in Washington to bail us out," Schwarzenegger declared last year. "We just want our fair share."At best, though, Schwarzenegger had mixed results. For instance, he was never able to persuade the Bush administration to boost funding for a program reimbursing California for imprisoning criminal aliens.Titles, moreover, do not necessarily convey real authority.University of California at Berkeley economist Christina Romer, for instance, has been tapped to chair Obama's Council of Economic Advisers. Romer is highly respected as a scholar, but in the White House her voice could easily be trumped by National Economic Council chair Lawrence Summer, a former Harvard president and one-time treasury secretary. Tulare VoiceCouncil Leans Toward 'Yes' on Racetrackhttp://www.valleyvoicenewspaper.com/tv/stories/2008/coucilyesonracetrack.htmTulare -Three City Council members say they are leaning toward a 'yes' vote next week on the Tulare Motor Sports Complex.The council will meet at 7 p.m. Monday at the Tulare Senior Center, 201 North F St., to first conduct a public hearing and then vote on the controversial project.“I believe this council is going to vote 3-2 in favor…that's a foregone conclusion,” Dr. Tom Drilling, a retired dentist and project opponent, told the City Council at a study session last week. Conversations with the five council members seemed to indicate a 3 to 2 vote — with Councilmen David Macedo and Wayne Ross opposed — is a strong possibility, although not a foregone conclusion.Councilman Richard Ortega said he is leaning toward a “yes” vote, but still wants reassurance “we're not going to be left hanging in the lurch” if lawsuits are filed. “I want to make sure the city is well-protected,” Ortega said.During the study session, Mayor Craig Vejvoda asked City Attorney Steve Kabot about reports the County of Merced recently had to pay $279,264 to plaintiffs in a lawsuit over a proposed racetrack because the developer defaulted on a court-ordered payment.Kabot said he only knew what he had read in the newspaper about the case, but that the city has taken steps in a development agreement to protect itself.“If there is that kind of litigation…we will require the developers not only to indemnify and defend us, but provide us with the financial reassurance — by way of a bond or some other security — that they would pay what they're required to pay,” Kabot said.Ross Wants to KnowRoss said he wants to know exactly what went wrong in Merced. “History is the greatest teacher, right?” he said, adding later “I'd like to see what was signed, because I guarantee you Merced did not think it was going to be handed a $300,000 bill.”Ortega said later that this is one of those once- or twice-in-a-lifetime projects that would be an economic boon to the community and ensure the long-term viability of the International Agri-Center and its annual World Ag Expo, which is facing competition from a new Florida event.“[The Agri-Center] has wanted hotels, recreation centers and a convention center that this facility would officer,” said Ortega, who is one of the charter members of the Agri-Center board and served 19 years as a voting member and three as an ex-officio member. In addition to a speedway and drag strip, the complex would include hotels, retail businesses, professional offices, a recreational vehicle park, condominiums and lots of parking.Ross and other opponents have insisted the numbers developer Bud Long and his group have presented regarding number of events, attendance and spending by attendees are grossly inflated and they are worried the project will fail.“If it doesn't work, all the other developments around it will probably cease to exist,” Ross said.Ortega said the numbers seem high to him too, but he believes over time they will become reality.“Who am I to doubt an investor or developer who comes to our community and wants to risk his own money,” he said. “It's not our risk…it's their risk.”'Change is Coming'Vejvoda said he continues to lean in favor of the project. “People, they don't want change, but change is coming,” he said. “We can live in denial of it or we can shape it and embrace it. I think the city will be at very little risk and potentially see phenomenal returns.”Like Ortega, he said it wasn't his job to determine whether the project will fly or fail. In a conversation with the mayor of Newton, Iowa, he said he learned people there thought a racetrack project “wouldn't fly,” but it has.Vice Mayor Phil Vandegrift did not actually say he was leaning toward a “yes” vote, but said he is watching the public process and thinks “the process is shedding good positive light on the opportunity that is before us.”He also said it's up to the investors and bankers to determine if the project can succeed. “Our job is entitlements,” he said, referring to the land use, zoning and permitting requests the city must consider.“We're not here to judge people's business plans,” he continued. “This is America. You have a right to make as much money as you can and you have a right to lose as much money as you can.” 'Wrong Project for Tulare'Councilman David Macedo continues to oppose the project, as he has from the beginning, describing it as “the wrong project for Tulare.”The community, including the agricultural sector, is split on the project and he — as well as Ross — wants the people to vote on the proposal, Macedo said.While several council colleagues disagree, saying they were elected to make the hard decisions, Macedo said he thinks this decision is different from most the Council makes.“This changes the look of your city a little bit; it makes it a different kind of city,” he said. “I get calls daily against it…but I still get calls for it and questions about 'Why are you doing this?' from people I respect,” he said. “Some of my best friends stand on the other side of the fence. I guess I'm not vain enough to think I should be one of only five people that get to choose the direction the city takes.”Development AgreementDuring last week's study session, Kabot reviewed the development agreement that the Council will be asked to approve Monday. He said the agreement is designed to protect the city financially, lock the project into the city standards, requirement and fees that exist today and set a timeline.The timeline is important or the agreement won't work, he said.“We want to make sure we don't grant 20 years worth of locked-in conditions and then wait until year 19 for everything to develop,” he said. “It has to be a reasonable and orderly progression to make this work.”The agreement will allow the developer to forego paying millions of dollars in development impact fees up front. Instead, the city will allocate a portion of the sales tax and transient occupancy tax revenues generated by the project to cover the DIFs, Kabot said.If the revenue stream is not sufficient to cover the fees, the developer will have to pay the balance directly.Before the tax revenue sharing formula is calculated to cover the DIFS, an additional $2,800 per net developed acre will be taken off the top and go into the general fund to cover the cost of providing police, fire and other municipal services to the complex. The $2,800 per acre figure is the state Department of Finance's estimate of the cost to provide services, Kabot said.The agreement calls for the developers to build for more than $50 million in private and public infrastructure improvements at their own costs, with the city reimbursing them for its share in the future.To help the property owners pay for the improvements, the city will support formation of a Community Development Facilities District, which will be recorded. In the future — when the bulk of the project is completed and can be used as collateral — the district will have the ability to sell bonds to retire their higher-interest private loans.This is not a primary funding mechanism, but an alternative means that the city and developer can use, Kabot said.Developer: Wal-Mart Eager to Buildhttp://www.valleyvoicenewspaper.com/tv/stories/2008/developereagertobuild.htmTulare - Cartmill Crossing North, a proposed 132-acre regional shopping center along Highway 99 that is expected to include a Wal-Mart Supercenter, has taken another step forward with completion of a draft Environmental Impact Report (EIR) that outlines how the project will proceed.Developers R.W. Henry and Associates of Moraga and Ben Ennis of Porterville plan to build the project in four phases on the north side of Cartmill Avenue at the Highway 99 interchange, the draft report said.The first two phases will include 763,000 square feet of retail space and a 237,000-square-foot Wal-Mart that is expected to operate 24 hours a day seven days a week and include a 14,500- square-foot garden center. The third and fourth phases will include another 100,000 square feet of retail space and a 16-screen, 70,000-square-foot theater with seating for about 2,900 movie-goers.While the EIR reported the first two phases are targeted for completion in 2010, developer John Henry said he suspects a portion, but not all, will be built by then.“The economy definitely has changed things,” Henry said.While it might seem pie-in-the-sky to talk about building a center at least twice the size of Preferred Outlets at Tulare as the country struggles through a recession, developers and city officials say Wal-Mart's interest in the project is an encouraging sign because of its ability to attract other retailers.He was told In and Out Burger was not interested in going into the center until it learned of Wal-Mart's plans, said Vice Mayor Phil Vandegrift, who also is the real estate business.Wal-Mart wants to open as soon as possible, Henry said. “It wants to upgrade all its existing units to better serve consumers.”Supercenters include a full-service grocery store and more than 35 departments of general merchandise. Tulare's 146,000-square-foot Wal-Mart in Plaza Del Lago was built in the mid-1990s and is not a supercenter.“Wal-Mart is under contract to a developer who will take over the former Wal-Mart space after it is vacated and lease it to a new tenant or tenants,” the EIR said.Henry's company developed the Hanford Wal-Mart Supercenter and Ennis is working on the Wal-Mart Supercenter project in Porterville.Cartmill Crossing developers have spoken in the past with Galaxy 10 Theatre officials about moving to the proposed center, but Henry said they “we're not talking to anyone at this moment.”An economic study done in conjunction with the EIR noted competition from a 16-screen theater would likely force the Galaxy 10 Theatre in the outlet center to close, but concluded that would not harm the center, which would have several options regarding the building.Significant ImpactsThe proposed regional center would have significant impacts on the environment. While most can be mitigated to a “less-than-significant” point, the impact upon agricultural resources and air quality would remain significant regardless of mitigation measures, the EIR said.The project would mean the loss of 132 acres of prime farmland, most of which is currently cultivated for row crops such as wheat, corn and alfalfa.The city is working on an Agricultural Conservation Program that would require developers who build on prime farm land to take steps to preserve an equal amount of prime land elsewhere, but that would not decrease significance of the loss, the report said.As for air quality, the center's operations would have a “significant and unavoidable” impact even after 14 mitigation measures are put into practice.Those include such things as providing bicycle lanes and connections throughout the center, starting carpool/vanpool programs for employees and prohibiting trucks with diesel engines from idling more than five minutes.The potential impact on traffic is huge, but the developers, city and Caltrans are working on design and engineering plans and financing strategies to reconstruct the Cartmill/Highway 99 interchange, widen Cartmill from J Street to Mooney Boulevard, build an overpass at the Union Pacific Railroad Tracks and widen Highway 99 through Tulare.In addition to economic factors, the timing of phases three and four of the project is dependent on when the state builds the new interchange, because it will be key to handling traffic volumes created by the expansionInformation:  The Draft Environmental Impact Report for Cartmill Crossing North will be available for review and comment at City Hall, 411 East Kern Ave., and the Tulare Public Library, 113 North F St., until Jan. 29. Planning Director Mark Kielty said the project could be ready to go to the Planning Commission and City Council in March.Sacramento BeeGovernor presses to expedite transportation projects...Kevin Yamamurahttp://www.sacbee.com/topstories/v-print/story/1496332.htmlWhether California can avert a major cash shortage next year hinges partly upon whether the state can build Highway 50 carpool lanes without further environmental review and eliminate two state worker holidays.Gov. Arnold Schwarzenegger is demanding further concessions from Democratic leaders in the latest round of state budget talks. It's come down to three key issues that pit business interests against labor unions and environmentalists: rollback of environmental review for construction projects, greater use of private investment and contractors, and deeper spending cuts, including those affecting the state work force.Democrats say the governor is holding the state budget hostage for the sake of measures that have a relatively small economic impact and provide no immediate budget relief. "It's like a child telling Santa, 'If you don't bring every single item on my list, then stay out of my chimney,' " Assembly Speaker Karen Bass said last week.Schwarzenegger says that if he is to approve new taxes – something just two years ago he said he would never do – then he must also relax regulations and make deeper cuts in state spending.The Republican governor last week rejected an $18 billion Democratic plan that would have partially solved the state's anticipated $40 billion shortfall through June 2010.Senate President Pro Tem Darrell Steinberg, D-Sacramento, and Bass, D-Los Angeles, met twice with Schwarzenegger on Tuesday and said they plan to continue negotiating through Friday by phone and videoconference. The governor left the state for Christmas vacation late Tuesday.While Democrats contend they gave Schwarzenegger a clear path to avoid running out of cash as soon as February, the governor vowed to hold out for more business-friendly solutions, even as the deficit clock he installed outside his office continues to climb higher each day.Democrats and Schwarzenegger still disagree over whether the state should waive environmental review requirements for as many as a dozen state transportation projects, including one to build carpool lanes from Sunrise Boulevard to Watt Avenue on Highway 50 in Sacramento County.The governor asked that the Highway 50 project be exempted from environmental review, allowing the $165 million widening to occur as soon as next summer. A Sacramento judge in July deemed the state Department of Transportation's environmental analysis inadequate, delaying the project, so Schwarzenegger's request would have circumvented that judicial hurdle.Environmentalists were incensed that Schwarzenegger sought to avoid further review, and Democrats eliminated the project from consideration when crafting their own economic stimulus plan this month. Schwarzenegger's office said that was one of the reasons the governor vowed to veto their proposal.While Democrats exempted eight projects from California Environmental Quality Act review, their bill requires Caltrans to conduct its own environmental assessments in those cases. Schwarzenegger said those assessments leave projects at risk for CEQA-like lawsuits and do nothing to expedite construction.Schwarzenegger's demands provide him some political cover from accepting tax increases that businesses do not want. Businesses have long asked for changes in CEQA that would accelerate projects around the state."Without the governor's CEQA reforms, California won't be able to take advantage of the federal government's economic recovery plan and our employment will continue to suffer," said Allen Zaremberg, president and CEO of the California Chamber of Commerce.The governor wants to streamline the permit process for transportation projects. Democrats are concerned about one aspect of the plan that creates a three-person appeals board made up of Schwarzenegger Cabinet members, which they said gives the administration too much control. Schwarzenegger's office last week estimated its overall transportation plan would expedite $1 billion in projects and create 18,000 jobs.At some risk to the environmentalist image he has cultivated in recent years, Schwarzenegger emphasizes that the state's highest priority is to "put shovels into the dirt now, put people to work now.""We have suspended CEQA many times in the past," Schwarzenegger said Tuesday during a press conference in Natomas. "So there is a sticking point where they feel uncomfortable because I know it's a struggle with the environmentalists who are in their office telling them not to do it."Bill Magavern, director of Sierra Club California, said the current recession is no reason to eliminate various protections. "The budget process is just being used to try and accomplish a separate agenda that could never pass on its own through the usual policy process," Magavern said.Schwarzenegger continues to seek deeper spending cuts than the $7.3 billion approved by the Legislature. He wants to slice more money from welfare recipients and cut payments toward the state's In-Home Supportive Services program, eliminating meal preparation and housecleaning for lower-need individuals.The governor unilaterally imposed twice-monthly furloughs and potential layoffs by signing an executive order last week, taking one item off the table. But he still wants to eliminate two state holidays and holiday overtime pay.Schwarzenegger has long pushed for more state projects that rely on private investment, called public-private partnerships. He contends private firms can invest money that California cannot, creating more projects and jobs.Democrats increased the number of allowable Caltrans public-private partnerships from four to 10, but Schwarzenegger does not want a cap. They also limited those agreements to projects that improve mobility, enhance operations or safety and provide air quality benefits.Schwarzenegger wants to remove legislative oversight over such projects because he believes private investors are deterred from funding projects that face such review."We are fine with the concept," Steinberg said, "but we want to make sure you don't just hand the keys off to a private contractor without the requisite oversight."Public employee unions, including the Professional Engineers in California Government, generally oppose the use of private professionals in state projects. PECG Executive Director Bruce Blanning said private engineers cost significantly more than public employees."They want to come in and partner with the state of California and build a lot of those projects, if it is court buildings or if it's roads," Schwarzenegger said of private firms. "Why shouldn't we go and do that? It's again to protect the union, that's why (legislators) don't want to go there." Funding crisis threatens park, levee, science projects...Matt Weiserhttp://www.sacbee.com/capitolandcalifornia/v-print/story/1496401.htmlNear Placerville, long-sought park land might fall out of escrow. In the Sacramento-San Joaquin Delta, vital ecosystem research has been halted. And in West Sacramento, officials fear a delay in rebuilding levees.These problems and more are piling up in the Sacramento region as California's budget crisis worsens.This week, many nonprofits and local agencies are coming to grips with a decision Dec. 17 by an obscure state financing agency, the Pooled Money Investment Board. The board was forced to preserve cash flow for basic government operations. It did so by freezing payment for some 2,000 projects funded by more than a half dozen voter- approved bond measures.The funding stream will probably be restored for many projects once the governor and Legislature make a deal to resolve California's $40 billion budget deficit. But some may not be able to wait, and there's lots of fretting over how much the delay will hurt in the meantime.The American River Conservancy was set to close escrow Dec. 31 on a 45-acre parcel near Coloma. It will become a trailhead along Salmon Falls Road for a hiking route between the river's south fork and Highway 49.It is the last of 15 properties the conservancy has worked to string into a trail over the last 20 years.After 18 months of grass-roots fundraising, the conservancy raised all but $40,000 of the half-million-dollar purchase price. That final morsel of funding was approved from state bond funds by the Sierra Nevada Conservancy. Now the conservancy is begging the seller for more time; it's considering borrowing money to close the gap."It's very frustrating because when you work with willing sellers of land, they expect these projects will be finished by a certain date," said Elena DeLacy, conservation project coordinator. "It's pretty important to us and the community, too, because they have a big stake in the project."On Tuesday, Gov. Arnold Schwarzenegger highlighted a different project to keep pressure on the Legislature to solve the budget crisis. Before a phalanx of TV cameras, he stood beside a levee in Sacramento's Natomas basin. Upgrading 42 miles of Natomas levees is "one of the most critical flood protection projects in the state," he said, and warned political posturing over the budget could threaten public safety.The Sacramento Area Flood Control Agency expects the Natomas project to cost $618 million. Until it gets federal reimbursements, the agency depends on state bond money for 70 percent of that cost.SAFCA Executive Director Stein Buer said the project is on sound footing. But if bond funds aren't restored by March 18, it could have trouble lining up a contractor to start the massive project this spring."We'll make every effort to stay on track. But we cannot move forward without state bond funding," Buer said.West Sacramento faces similar threats in its equally urgent battle to begin $400 million in levee reinforcements.No projects have been delayed. But the city is looking for $1 million in bond reimbursements for a small project recently completed along the Sacramento River at I Street, and a much bigger state share for the rest."We expect to enter into cost-sharing agreements with the state, probably in March, and we're hoping it's all resolved by then," said Michael Bessette, West Sacramento flood protection manager.As the state verges on big decisions about the future of the Sacramento-San Joaquin Delta, research aimed at informing this process has stopped.The CalFed Bay-Delta Program was forced to halt $16 million in bond-funded research that is part of a broad effort to restore the Delta and protect its freshwater supply.The halted projects include an experiment involving 32,000 threatened Delta smelt, bred in a lab to learn how they are affected by water pumping. Now scientists wonder how they'll keep the fish alive.There is also no money to conduct a scientific review of forthcoming federal rules to protect salmon from the Delta's pumping systems."When scientists are told to suddenly put down their tools and instruments – stop all work – it has an impact," said Judy Kelly, director of the San Francisco Estuary Project, which funds some of this work via state grants. "It's a mess, and it's a mess for a whole lot of reasons." $2 trillion in equity vanishes in past year...Jim Wassermanhttp://www.sacbee.com/business/v-print/story/1496333.htmlFalling home prices erased more than $2 trillion from U.S. home equity in the past year, according to the Federal Reserve, based on new data from First American CoreLogic.The Irvine-based research firm, in its latest Loan Performance Home Price Index, also said Tuesday the pace of price declines has slowed, an encouraging sign.Home prices nationally were down 10 percent in October from the same time a year earlier. November's year-over-year decline is expected to be 9.6 percent. California had nine of the nation's 10 worst markets for depreciation – with one-year declines ranging from 27 percent to 29 percent. The Sacramento area – El Dorado, Placer, Sacramento and Yolo counties – saw prices fall 27 percent.Ag AlertDelta issues hold key to future water supply reliability...Kate Campbellhttp://www.cfbf.com/agalert/AgAlertStory.cfm?ID=1201&ck=7501E5D4DA87AC39D782741CD794002DThree key developments involving the Sacramento-San Joaquin Delta in the past week set environmental parameters for protecting delta species and laid the foundation for addressing the region's environmental problems and the future reliability of the state's water supply. Experts say drought conditions, court decisions and a collapsing ecosystem have turned up the heat on finding solutions to these problems, elevating the importance of solid planning and prompt action. A Delta Vision Blue Ribbon Task Force forwarded its final recommendations last week to state agency heads, who in turn sent them on to Gov. Arnold Schwarzenegger. An implementation plan comes in January. A few days later, a completed draft conservation strategy for the Bay Delta Conservation Plan was presented to stakeholders, tentatively identifying a plan for water conveyance through and around the delta. Added to that, the U.S. Fish and Wildlife Service delivered its biological opinion on the effect of pumping water from the delta. The opinion found that operation of the federal Central Valley Project and the State Water Project jeopardizes the continued existence of a protected fish, the delta smelt, and adversely modifies its critical habitat. The opinion outlines what the FWS calls "reasonable and prudent alternatives" intended to protect each life stage and critical habitat of the delta smelt. For the State Water Project, deliveries throughout California could be permanently reduced by up to 50 percent under the biological opinion. Water deliveries to cities, farms and businesses throughout much of the state will be reduced about 20 percent to 30 percent on average, but cuts could be even greater under certain hydrologic conditions, analysts said. "Recent headlines about the interruption of export water pumping operations in the delta to protect fish species underscore for all Californians what farmers and ranchers have been acutely aware of for years--the water supply for much of the state is in jeopardy," said Chris Scheuring, managing counsel of the California Farm Bureau Federation Natural Resources and Environmental Division. "Without workable solutions for a reliable water supply, agriculture and the entire state economy are in peril." He said Farm Bureau has been actively engaged in efforts to find solutions, through participation in public policy forums, the legal system, agency hearings or deliberations of the Legislature. "The problems, however, have grown increasingly complex and expensive to resolve," Scheuring said. "But, after several years of intensive effort, some of the recommendations aimed at restoring the delta's vitality are being finalized and with them come hope of more surface water storage, infrastructure improvements and recovery of delta fisheries." The Delta Vision recommendations offer a 50- to 100-year "blueprint" for the region's future. It attempts to integrate the needs of agriculture, transportation, water conveyance, flood control, recreation, tourism and the environment into a cohesive plan. CFBF has actively participated on a stakeholder committee to represent the interests of farmers and ranchers in a healthy delta environment. Farm Bureau also has been active in formulating action plans in the Bay Delta Conservation Plan, which is intended to dovetail with the Delta Vision framework. Near-term actions recommended in the BDCP focus on preparing for disasters in or around the delta, protecting its ecosystem and water supply system from urban encroachment, and starting work soon on short-term improvements to both the ecosystem and the water supply system. On the west side of the San Joaquin Valley, improvements in water reliability cannot come soon enough. Already, thousands of acres of farmland have been fallowed and farmers are bracing for the some of the lowest water deliveries from the federal and state projects in history. "We've had to lay off about 65 percent of our farm work force and we've quit growing most of our vegetables to provide enough water for our permanent crops, which are about 25 percent of our farm," said John Harris, who owns Harris Farms near Coalinga. "All of our irrigation systems are drip and we employ every technology available to conserve water. We've just renovated our water wells, but still we're drastically short of water." As to the mood of Californians to address the state's water supply crisis, Harris said he thinks people realize that California can't continue to do little while the state's population greatly increases. "Unfortunately, we have very little we can point to that shows we are truly doing anything," Harris said. "A lot of talk, little action. Maybe when people turn on the shower and nothing comes out, that will be the final wake-up call, but agriculture will have taken devastating losses by the time that happens." Colusa County rice grower Don Bransford, who is a director of the Glenn-Colusa Irrigation District, said he's optimistic that a consensus is forming on the problems facing the delta and the state's water supply. "I'm concerned about the dollars it's going to cost to address these needs, but there's finally a broad consensus on solving these problems," he said. "Unfortunately, right now you've got a judge in charge of the delta," he added. "There's a new lawsuit every day and then you add all these plans for moving forward. The problem is these are not short-term solutions. It's going to take time to put some of these plans in place." He said with the courts and government agencies driving short-term solutions, it's creating havoc for agriculture. "Unfortunately with all these task forces, you're looking at solutions that are seven to 10 years out," Bransford said. "We need something now that will help folks impacted by the crisis in the delta. The farmers on the west side can't wait 10 years for solutions. They need immediate relief and it seems to be getting worse by the day," he said. In his own operation, Bransford said he's considering fallowing ground to complete some land releveling. There's enormous pressure on farmers in the north state to fallow ground and sell water to farmers in the south, he said. The delta pumps and the environmental requirements, however, will continue to limit the amount of water that can be sent south of the delta to those who need it. Harris, who also owns a beef production business that relies on adequate water supplies said, "We've studied the water supply problems to death. Arguably, the newly released recommendations and studies move us closer to solutions, but it's frustrating that it has taken so long and produced so few tangible results or water." Background to water issues facing California farmers and the Sacramento-San Joaquin Delta can be found online at www.cfbf.com. The U.S. Fish and Wildlife Service Biological Opinion on the delta smelt is available online at www.fws.gov/sacramento. Online information about Delta Vison is available at www.deltavision.ca.gov. The draft recommendations from the Bay Delta Conservation Plan are available at resources.ca.gov/bdcp. 2008: Year in review...Steve Adlerhttp://www.cfbf.com/agalert/AgAlertStory.cfm?ID=1202&ck=147702DB07145348245DC5A2F2FE5683Starting with hurricane winds in January and exiting with a series of much-needed storms in December, 2008 had a little bit of everything. There was drought (both natural and regulatory), government regulation and intervention, monumental court cases, elections with statewide and national implications, and much, much more. As farmers and ranchers around the state prepare for what 2009 may bring, we reflect back on 2008 and some of the most impactful events as reported in Ag Alert®. JanuaryThe lead story in our Jan. 9 issue reported on hurricane-force winds and driving rain that "knocked down trees, blew roofs off barns and disrupted electrical power in widespread locations." By the time the extent of damage was calculated several weeks later, it was learned that the winds toppled tens of thousands of trees, mostly almonds and prunes. In some Northern California locations, entire blocks of trees were knocked over. Other significant events in January included: · The state Air Resources Board proposed sweeping changes that would impact about 400,000 instate, on-road diesel vehicles and about 1.2 million vehicles from out of state. The proposed regulations, adopted in December, provided owners of most farm trucks additional time to comply with requirements to retrofit or replace diesel engines. · A Farm Bureau-sponsored drive for enhanced property-rights protection gained added momentum, as an initiative to enact meaningful reforms qualified for the statewide ballot. The measure, known as the California Property Owners and Farmland Protection Act, appeared on the June ballot but did not pass. FebruaryLabor concerns came info focus in February as a federal agency addressed the issue of creating a mechanism for foreign workers to be in the United States legally. The U.S. Department of Labor proposed rules to reform the H-2A program for employing foreign workers in temporary or seasonal agricultural jobs. Final rules were published this December, but farm groups said they would only marginally help in assuring the availability of harvest employees. Also in February: · The California Department of Food and Agriculture announced that the state's dairy sector set new production records for both milk and cheese in 2007, re-asserting California's role as the nation's leading dairy state. · Coastal vegetable growers, who had been prevented from shipping crops into Canada because of the light brown apple moth, learned that an agreement had been reached allowing shipments to British Columbia with certain restrictions. California Farm Bureau was instrumental in the successful negotiations. MarchTwo reports released in March dealt with one of agriculture's most serious problems--the loss of productive farmland to urban encroachment. First came a report from the American Farmland Trust saying that unless a different approach to land-use planning and development is adopted, another 2 million acres of farmland could be lost by mid-century. It was followed two weeks later by a report from the California Department of Conservation, noting that from 1990 to 2002, about 280,000 acres of the state's farmland were converted to urban uses, including about 96,600 acres of prime farmland. Also in March: · Gov. Schwarzenegger introduced his water plan for California that included conservation, protection of delta levees, study of delta water conveyance and three surface-water storage projects. AprilU.S. District Court Judge Oliver Wanger made several rulings in 2008 relating to declining fish numbers. The first came in April, when the judge found that a 2004 biological opinion by the U.S. Fish and Wildlife Service did not adequately protect sensitive salmon populations when authorizing long-term operations of the state and federal water projects. Also in April: · Several crops, including grapes, pears and walnuts, suffered damage during a severe cold snap. · Drought conditions continued to plague livestock producers and drove many to sell their cattle early, because the lack of forage could not sustain their herds. MayFarm Bureau leaders from throughout the state took their concerns to Washington, D.C., educating lawmakers on crucial issues affecting California agriculture, including the Clean Water Act, immigration and trade. Also in May: · The California Highway Patrol granted a one-year extension to haulers of tomatoes and other agricultural commodities, regarding the transport of harvested crops, without having to immediately adhere to new federal cargo-securement regulations. · By a strong, veto-proof margin, Congress passed a five-year, $307 billion farm bill that contained a greater emphasis on fruits, vegetables and other specialty crops than ever before. The farm bill would spend more than $1 billion on specialty crop programs, including research, marketing and an expanded role for specialty crops in government nutrition programs. The bill also expanded conservation programs popular with California farmers and ranchers. JuneIn an announcement that had a far-reaching impact on agriculture in 2008, the U.S. Bureau of Reclamation cut water deliveries to farmers to 40 percent of contract amount, from the 45 percent declared previously. The sobering news caught many who farm on the west side of the San Joaquin Valley by surprise. They had planted crops based on the percentage of contract water announced earlier in the year. Also in June: · The California Farm Bureau and other farm groups launched a massive educational program to prevent heat illness. · Spurred by skyrocketing fuel prices, thieves armed with bolt cutters and empty tanks converged onto farms and ranches to extract diesel fuel from large tanks and equipment that farmers use on a daily basis to run their operations. JulyFirefighters battled nearly 1,800 lightning-sparked wildfires that exploded across the state, burning more than 800,000 acres of forests, grazing lands and watersheds, along with homes, barns, equipment, fences and roads. The fires were so numerous that firefighters were assisted by crews from throughout the United States, as well as Canada, Australia, Greece, Mexico and New Zealand. Also in July: · Another ruling by Judge Wanger concerning endangered salmon and steelhead meant continued uncertainty for California farmers and ranchers who depend on water delivered through state and federal water projects. Wanger said, "The species are unquestionably in jeopardy. The (Endangered Species Act) does not permit jeopardy to a listed species to be considerably increased" as agencies rewrite a biological opinion for the fish. · The California water crisis stimulated a cascade of proposals to resolve the problem, including an announcement by Gov. Schwarzenegger and U.S. Sen. Dianne Feinstein to qualify a $9.3 billion water bond for the ballot, a report by the Public Policy Institute of California that endorsed the idea of a peripheral canal, and a work plan by the State Water Resources Control Board that it said would increase its efforts to improve water quality and habitat in the Sacramento-San Joaquin Delta. AugustA bill to crack down on metal theft cleared the Senate Public Safety Committee with the help of a coalition of supporters including the California Farm Bureau Federation, California State Sheriffs Association, utility companies and an assortment of law enforcement agencies, cities, counties and others. The bill would later be signed into law. Also in August:· A court decision clarified and strengthened the Williamson Act, a key law that helps to conserve millions of acres of California farmland. The appeals court ruling corrected a misinterpretation that could have led to inconsistent enforcement and widespread residential development on contracted land. · Several hundred farm employees rallied at the state Capitol to pressure lawmakers to find a solution to California's chronic water problems, which have had a devastating impact on farming communities throughout the state. SeptemberCalifornia posted record total sales of agricultural commodities: $36.6 billion in 2007, an increase of 15 percent over the previous year's total, according to the U.S. Department of Agriculture. But the increase in farm sales told only one side of the story. California farmers across the board struggled to afford increased costs for fuel and fuel-based products such as fertilizers, as well as water, wages, equipment, government fees, taxes and supplies needed to produce healthy crops. Also in September: · Values for farm and ranch property in California and nationwide defied the soft real estate market plaguing many U.S. cities. An annual report from the U.S. Department of Agriculture set the average value of an acre of California farmland at $6,500, up 8.3 percent from the previous year. · In a move that would place additional burdens on farmers and ranchers, the U.S. Fish and Wildlife Service announced that it plans to quadruple the land area in California designated as critical habitat for the California red-legged frog. · Foods such as meat, fruits and vegetables will carry country-of-origin labeling, under federal legislation that took effect requiring retailers to inform consumers where certain agricultural products come from. The new rule represented a victory for California farmers and ranchers, who have long fought for country-of-origin labeling. OctoberAnalysts said strong commodity prices, high land values and a low rate of farm loan delinquencies should insulate the farm credit market from the Wall Street woes that have tightened the nation's overall credit market. Lenders said California farmers and ranchers should have little problem obtaining loans, but would face more scrutiny and higher interest rates. Unlike financial institutions devastated by subprime mortgages, the agricultural lending sector remained on solid financial footing because of its strict lending practices. Also in October: · The new state water year began on Oct. 1, but officials warned it will take several good water years to replenish California's depleted supply. The federal Central Valley Project carried over about 3.9 million acre-feet of water, 35 percent of system capacity, into 2009. · The Congress reinstated funding for schools and roads in timber-producing counties by approving a four-year extension of the Secure Rural Schools and Community Self-Determination Act. The act compensates rural counties for funding lost as timber harvests declined on national forestland. NovemberThe worldwide financial crisis hit California hard as state officials projected a shortfall this year in excess of $11 billion. To help ease the situation, Gov. Schwarzenegger laid out an action plan that included $4.7 billion in tax increases and $4.5 billion in budget cuts. Several proposed cuts could affect programs serving farmers, ranchers and rural Californians. They include the Williamson Act and rural crime prevention programs. Also in November: · Officials with the State Water Project announced a 15 percent water delivery allocation for 2009, the second lowest allocation in project history. · Egg farmers said they faced a huge cloud of uncertainty, after California voters approved an initiative to end use of modern housing systems for egg-laying hens. Election Day victories for agriculture were posted in Napa and Solano counties, where voters overwhelmingly approved separate land-use measures sponsored by county Farm Bureaus. · A new biological opinion by the National Marine Fisheries Service could place far-reaching restrictions on three common materials (chlorpyrifos, diazonin and malathion) that California farmers depend on to protect a variety of crops. The opinion represented the first of 34 additional pest control product evaluations that the NMFS is obligated by court order to issue before Feb. 29, 2012. DecemberSeveral water agencies filed lawsuits against the California Department of Fish and Game to challenge emergency regulations that could impose drastic new restrictions on pumping water out of the delta to protect the longfin smelt. · Also in December: · Under newly proposed rules issued by the state Department of Pesticide Regulation, California farmers who rely on fumigants to control disease, weeds and pests in their soil will have more flexibility in how much they use these products. The regulatory effort aims to reduce volatile organic compound emissions that contribute to smog in regions with poor air quality. The rules target seven products used for field fumigation. · An increased demand for electricity and renewable energy has resulted in a number of utility-proposed transmission line projects being considered throughout the state. Farmers and ranchers expressed concern, because many of the proposed routes crisscross hundreds of acres of orchards and other private land. San Francisco ChronicleCourt reinstates interstate smog rule...Jesse J. Holland, Associated Presshttp://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/12/24/MNAD14U10D.DTL&type=printableIn a ruling hailed by environmentalists, a federal appeals court on Tuesday reinstated one of President Bush's clean air regulations while the Environmental Protection Agency makes court-mandated changes.In July, the U.S. Appeals Court for the District of Columbia Circuit threw out the Clean Air Interstate Rule, which required 28 mostly Eastern states to reduce smog-forming and soot-producing emissions that can travel long distances in the wind.The court said the EPA overstepped its authority by instituting the rule, citing "more than several fatal flaws" in the regulation. However, a three-judge panel decided to reinstate the rule while the EPA develops a new clean air program.Judge Judith Rogers said allowing the country to go without the protection of CAIR while the EPA fixes it "would sacrifice clear benefits to public health and the environment."The judges did not give EPA a deadline to come up with new regulations, but warned the agency that this decision is not an "indefinite stay" of its July ruling.The Environmental Protection Agency had predicted that the Clean Air Interstate Rule would prevent about 17,000 premature deaths a year by dramatically reducing sulfur dioxide and nitrogen oxide emissions. In addition, the EPA said the rule would save up to $100 billion in health benefits, eliminate millions of lost work and school days and prevent tens of thousands of nonfatal heart attacks.Rep. Ed Markey, a Massachusetts Democrat who heads a House global warming panel, applauded the decision, saying that "common sense ruled the day.""Knocking down the Clean Air Interstate Rule completely would have left our lungs in a lurch," the congressman said. "Today's decision is significant because it gives the new Obama administration some breathing room - and gives the American people some clean air to breathe."Air pollution does not obey state boundaries, and CAIR is essential to protect Americans living downwind of sources of dangerous emissions," he said.Said Vickie Patton, deputy general counsel at the Environmental Defense Fund: "Today's court decision is a welcome gift for the millions of Americans that face serious health threats from power plant pollution. Power plants across the East will reduce millions of tons of smog and soot pollution today while America's new leadership fixes the mistakes made by the Bush administration."Jeff Holmstead, one of the authors of the CAIR rule when he served as EPA's air administrator, said the court had changed "nothing substantive from its earlier opinion."Holmstead, who now heads Bracewell & Giuliani's Environmental Strategies Group, said that while the opinion "is more consistent with past precedent in its approach to rule making, there is still some uncertainty regarding exactly what the EPA will do in response. Until the agency responds, regulated sources will have to comply with CAIR."Ribbon seals don't make endangered listRibbon seals do not currently face extinction and don't need to be added to the endangered species list, the government said Tuesday.Because of the melting of sea ice due to global warming, the National Oceanic and Atmospheric Administration was petitioned in 2007 to list ribbon seals as endangered.The main habitat for the seals is sea ice in the Bering Sea, Sea of Okhotsk, Sea of Japan, Chukchi Sea and Beaufort Sea, in the northern Pacific and Arctic."Our scientists have reviewed climate models that project that annual ice, which is critical for ribbon seal reproduction, molting and resting, will continue to form each winter in the Bering Sea and the Sea of Okhotsk where the majority of ribbon seals are located," Jim Balsiger, NOAA's acting assistant administrator for fisheries, said in a statement.The agency said it is difficult to determine the exact number of ribbon seals. It did estimate, however, that there are at least 200,000 in the Bering Sea and the Sea of Okhotsk.Warning: [REDACTION] Is Dangerous For Your Health...Cameron Scott, The Thin Green Linehttp://www.sfgate.com/cgi-bin/blogs/sfgate/detail?blogid=49&entry_id=33912How do you know if something is toxic? The government requires a label, or a public disclosure or something, right? Wrong, according to the Milwaukee Journal Sentinel. The Environmental Protection Agency's mandate includes a toxics program designed to protect Americans from new, dangerous chemicals created by industry. The program identifies dangerous compounds and puts on public record what they are, who makes them, and where and when they're used. But the agency under Bush has routinely been redacting all the important details of its files, making the program meaningless and breaking the law. Such a procedure is permitted in extraordinary circumstances only, but Bush's EPA has made it business as usual, allowing redactions of filings in more than half of the cases. In one case, an EPA case file "marks as confidential the names of the chemical and the company that makes it. Even the generic class of chemical has been removed." So a program designed to alert consumers and residents about newly discovered toxic chemicals does precisely the reverse. Another example of the utter perversion of democratic processes embraced by the Bush administration. But, sadly, there's no undoing the redactions barring expensive additional research, so these black marks—flagging dangers to your health without telling you what, or where, or when—will remain in the public record long after Bush is gone. Surprised? Let's recap some highlights of the EPA under George W. Bush. Reasonable Republican head Christine Todd Whitman was forced out for trying to protect the environment and keep Bush's campaign promise to regulate carbon dioxide emissions. Despite a Supreme Court ruling prompting the agency to regulate greenhouse gases, the agency has refused to do so. The current administrator, Stephen Johnson, defied legal precedent and the advice of his employees to reject California's request for a waiver allowing it to regulate its own greenhouse gases. Just this month, Johnson told regulators not to consider GHG emissions when ruling on permits for new coal-fired power plants. Environmental Protection Agency, indeed. Make that Environmental Protection Agency. Inside Bay AreaTwo of EPA's "Most Wanted" are local casesBoth fugitives may have fled overseas...Josh Richman, Oakland Tribunehttp://www.insidebayarea.com/trivalleyherald/localnews/ci_11297676Call it a different kind of "crime against nature."The U.S. Environmental Protection Agency posted its first-ever "Most Wanted" list to its Web site this month to enlist the public and other law enforcement agencies in tracking down those accused of violating environmental laws and evading arrest, and two of the 23 face charges in Northern California."Putting this information on the EPA's Web site will increase the number of 'eyes' looking for environmental fugitives," said Granta Nakayama, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. "Two EPA fugitives were captured this year, and this Web site could help us find more fugitives in the future."Both the fugitives wanted in Northern California most likely have fled overseas, authorities said.Mahmoud "Mike" Almhchie, now 49, who owned American One Automotive & Oil Co. in Hayward, was charged in 2001 with illegal smuggling after agents found 105 30-pound cylinders of Freon, an ozone-depleting chemical once widely used as a refrigerant in air conditioning and cooling systems. Amendments to the Clean Air Act in 1990 banned Freon's production or importation. The cylinders in this case came from Mexico, though agents didn't determine how. Almhchie was indicted by a federal grand jury in 2003 for fleeing the United States to avoid prosecution; he's believed to be in his native Syria.Paul Vestergaard, now 67, was indicted by a federal grand jury in 2005 on two counts each of making a false statement and obstruction of justice. A former chief engineer aboard a freight ship, Vestergaard is accused of lying to the U.S. Coast Guard regarding the contents of the ship's Oil Record Book, and also instructed a subordinate to lie to Coast Guard investigators. He's believed to be in Denmark. Many of the alleged violators wanted by the EPA have fled the country; the agency cooperates with Interpol and other international law enforcement agencies. But anyone who encounters one of these fugitives should notify EPA by submitting the "Report a Fugitive" form on the Web site, www.epa.gov/fugitives/, or can report the information to their local police departments or, if outside the United States, to the nearest U.S. Embassy. Some fugitives may be armed and dangerous, and EPA warns the public against trying to apprehend them.Contra Costa TimesMount Diablo's mercury mine to get cleanup attention...Mike Taugherhttp://www.contracostatimes.com/ci_11298535?nclick_check=1Some guys retire and play golf. Jack Wessman putters around with heavy equipment trying to clean up an old mercury mine."I just love it," said Wessman, adding, "I think golf would have been a lot cheaper."When Wessman bought his 109-acre property on Mount Diablo in 1974, he knew there was an old mine there. That was obvious enough. What he did not anticipate was the expense and headache that came with it.He battled regulators with one hand while, with the other, he cheerily recontoured drainages, capped waste rock and did what he could to prevent mercury and acid mine drainage from washing into Marsh Creek and the Delta.But there's only so much one person can do, and as Wessman points out, of all the mining that took place here in the course of a century, he's responsible for exactly none of it."It's hard to require someone who never did any mining to clean up the whole area," said Mitch Avalon, deputy public works director for Contra Costa County.Now, for the first time, it looks like Wessman might be getting some help.Using the federal Superfund law, the Environmental Protection Agency is tracing the history of the mine to identify who is responsible for cleaning up the mess.That work is still in the early stages, EPA officials said, but it has already yielded a result — an oil company fixed a dam last week that regulators said was in imminent danger of failing.Had the dam collapsed, mercury-laden water and sediment would have spilled into Marsh Creek, which drains into the Delta. "There's no telling what's in that pond," said EPA on-scene coordinator Janet Yocum, adding that water samples there show mercury in far higher concentrations than is considered safe.Fearing a "catastrophic" release, the EPA ordered Sunoco Inc. to shore up the dam. The Philadelphia-based company complied but says its role in pollution at the site near Clayton is, at most, very small.A preliminary investigation by the company indicated it never mined ore from the site, according to Sunoco spokesman Thomas Golembeski.But the EPA determined Sunoco was the corporate successor to Cordero Mining Co., which operated the mine in 1955. The mercury mine was in operation intermittently from about 1870 to 1970.The EPA is pursuing other potentially responsible entities, officials said.Within days of the order, Sunoco had applied concrete to the weak side of the dam and modified a small creek that was eroding it.Regulators said it is too early to say what a full cleanup would entail, what it would cost and who will eventually be asked to pay for it.But Wessman said he welcomes the help. "I think things look better than they ever have," he said.In all, Wessman says he has spent $300,000 to clean up the property, including trucking in 49,000 tons of dirt to cover some of the waste rock. But old buildings remain where ore was processed, and mine tailings are still exposed around the buildings. Waste rock is piled up, too. Trickles of water run yellow and milky in various places on and near his property.Wessman pointed to springs that he said have a pH of 2, which is highly acidic.Now that the dam appears stable, regulators are looking to come up with a long-term cleanup plan. "This is real early in the process. We definitely have to do more work to try to control the mercury that is coming off the side of that hill, and the acid mine drainage," said Jere Johnson, a remediation project manager at the EPA's regional office in San Francisco.Mercury, which can cause severe neurological problems, is ever-present in fish and sediment in the Delta and San Francisco Bay. Most of it comes from mines in the Sierra Nevada, the South Bay area and elsewhere along the Coast Range, many of which date to the Gold Rush.Gold miners used mercury to help pull gold from rock. Marsh Creek is one source of that mercury and researchers have found that the mercury in Marsh Creek overwhelmingly comes from the area of the Mount Diablo mine.Although the EPA is using the Superfund law to track down corporate successors and force them to do cleanup work, the mine is not classified as a Superfund site. Although such a classification is possible, depending on what regulators find at the mine, Johnson said such a listing is a last resort.Wessman nearly got the help a decade ago.In the 1990s, the county received a grant to start cleaning up the mine. But it gave the money back after county lawyers realized a recent court decision meant that if the county cleaned up a little, it could be made liable for cleaning up the whole thing.Lawmakers looked to the Mount Diablo mine as a good poster child for a "good Samaritan" law, which would allow an entity to do some cleanup work without facing the risk of becoming liable for the entire mess.The law has not passed, but because of the attention the mine received in Congress, Bay Area lawmakers got about $500,000 last year to plan cleanup and search for past owners.Los Angeles TimesWal-Mart settles dozens of worker class-action lawsuitsThe retail giant will pay as much as $640 million to settle dozens of wage-and-hour class-action suits across the U.S. The agreement excludes a California case under appeal...Andrea Chang. Marc Lifsher contributed to this report.http://www.latimes.com/business/la-fi-walmart24-2008dec24,0,5710982,print.storyWal-Mart Stores Inc. said Tuesday that it would pay as much as $640 million to settle dozens of wage-and-hour class-action lawsuits across the nation that accused the world's largest retailer of cheating hourly workers and forcing them to work through breaks and off the clock. Wal-Mart has faced numerous accusations in recent years that it has engaged in illegal wage practices such as shortchanging workers on overtime pay and not allowing them to take lunch breaks. "Many of these lawsuits were filed years ago, and the allegations are not representative of the company we are today," Tom Mars, Wal-Mart's executive vice president, said in a statement.The cases being settled, 63 in all, involve thousands of current and former Wal-Mart employees and were brought by various groups of lawyers. A similar case in California, in which Wal-Mart was ordered to pay $172 million, was not included in the settlements and is under appeal.Lawyers for the plaintiffs could not be reached Tuesday, but some released statements saying they believed the settlements set a standard for other companies."We are equally pleased that Wal-Mart has made tremendous strides in wage-and-hour compliance and that it has implemented and agreed to continue to follow state-of-the-art compliance programs," said Frank Azar, co-lead counsel in 14 states. "We are pleased with this settlement and believe it is fair and reasonable for our clients."Industry experts said Wal-Mart probably agreed to settle as a good-faith effort, especially as it ushers in new Chief Executive Mike Duke on Feb. 1."The company's trying everything it can to clean up its corporate image and try to put out a new face," said Burt P. Flickinger III, managing director of consulting firm Strategic Resource Group.Under the agreements, the Bentonville, Ark., company will pay $352 million to $640 million. The total will depend on the amount of claims submitted, the company said.Wal-Mart's separate California case is under appeal after the retailer lost a suit in 2005 brought by workers who alleged they were forced to work through meal and rest breaks. Company spokesman John Simley declined to comment on the case and those pending in other states.As a result of the settlements, Wal-Mart said it would record an after-tax charge to continuing operations in its fiscal fourth quarter of about $250 million, or roughly 6 cents on earnings per share.Shares of Wal-Mart fell 70 cents to $55.29.Eli Portnoy, a Los Angeles brand strategist, said lawsuits against Wal-Mart had hurt its reputation as a good place to work."They do appear to take advantage of these employees as they can and they backtrack and pay up settlements," Portnoy said. "You hear more and more cases of Wal-Mart being less employee-friendly and more Big Brother, more controlling and more money- focused. I don't think anybody thinks Wal-Mart is still the same kind of company it used to be."Still, he said, the company probably wouldn't suffer from consumer backlash -- especially with the country in a recession."It won't ruin the brand in this particular economic climate," he said, "because the vast majority of their customers are so desperate to save every penny that even bad news about how they may mistreat their employees isn't going to stop people from shopping there."Washington PostRecession Propels Skid In Housing Sales, PricesTight Credit Locks Many Out of Buyer's Market...Renae Merle. Annys Shin contributed to this report.http://www.washingtonpost.com/wp-dyn/content/article/2008/12/23/AR2008122301006_pf.htmlThe housing market weakened dramatically in November, with prices taking their deepest dive in at least 40 years as buyers refused to wade back in during a growing recession, according to data released yesterday.The declines cited in government and industry reports were worse than analysts expected and deepened concerns that the housing downturn has entered a new phase, fired by a recession it helped create, economists said.The market could fall harder as unemployment rises and government and industry efforts fail to stem foreclosures, they said. The economy shrank at a 0.5 percent annual pace in the third quarter, the biggest decrease since 2001, marking the beginning of what economists expect will be a much larger contraction for the last quarter.The credit crisis and stock market volatility of the past two months helped fuel the slump, economists said. Even with a glut of housing stock and a free-fall in prices, buyers could not be coaxed back. And as prices fall, homeowners are likely to find themselves owing more than their home is worth, another factor in the housing downturn."If people are scared to put money in the bank, they are going to be scared to make a big transaction like a house purchase," said Guy Cecala, publisher of Inside Mortgage Finance Publications. "They are likely to sit on the sidelines until they feel better about their financial situation."Sales of existing homes fell 8.6 percent to a seasonally adjusted 4.49 million units in November compared with October and were down 10.6 percent compared with the same period a year ago, according to data from the National Association of Realtors. The Commerce Department reported sales of new, single-family homes fell 2.9 percent to a seasonally adjusted annual rate of 407,000 in November. It was the slowest sales rate in 18 years and down 35 percent compared with a year earlier."We are crossing our fingers that sales rebound from these depressed levels," said Lawrence Yun, chief economist for the Realtors group.The steep decline in existing home sales dashed hopes that the market was close to stabilizing, said Brian Bethune, chief U.S. financial economist for IHS Global Insight. "It almost looked like we were near a bottom for a time, but it hasn't. Instead we have taken another leg down," Bethune said. "It is not surprising given the state of the economy."Home prices also tumbled. Median new-home sales prices fell to $220,400 in November, down 11.5 percent from $249,100 a year earlier. The slump in the resale market was even more pronounced: Existing-home prices fell 13.2 percent, to $181,300 from $208,800, the largest drop since the Realtors group began collecting data in 1968 and likely the largest decline since the Great Depression.The glut of foreclosed homes and distressed sellers in the market have pushed down prices, attracting bargain hunters looking for cheap properties. Prices have fallen to 2004 levels, said Mike Larson, housing analyst at Weiss Research in Jupiter, Fla. "We have wiped out five years of gains," he said. "That is bad news again for anyone who bought at the peak."Even in regions where sales appeared to be improving, economists saw more evidence of the market's weakness. Existing-home sales in the Western United States increased 17.9 percent compared with the same period a year ago, while the rest of the country saw double-digit declines. But prices in that region fell 25 percent, by far the worst in the country."They are bottoming out faster than the rest of the country. I am not sure that is a sign of health at this point," Cecala said. "It just means that they went down faster than the rest of us." Economists have estimated that in some parts of the country, foreclosure sales make up nearly half the market.Even though builders have curbed production, there are still far more homes on the market than buyers. At the current sales pace it would take more than 11 months to sell the 4.2 million existing homes and 374,000 new homes on the market. "We have not solved the supply issue," Larson said.The data do not reflect the impact of a recent drop in interest rates, which fell to 5.19 percent for a 30-year, fixed-rate mortgage last week, according to a Freddie Mac survey, the lowest levels in decades. While low rates have prompted a frenzy among homeowners hoping to refinance, they have not spurred enough sales to stabilize the market, analysts said.The housing industry has been lobbying for government measures to revive the market, including increasing tax credits available to home buyers and making loans for expensive homes cheaper by lowering the interest rates available in that market.The government has taken some steps. Earlier this year, Congress approved a $7,500 tax credit for first-time home buyers. And the Treasury Department is considering measures to bring mortgage rates down more, perhaps to 4.5 percent.But that is not enough to stir the housing sector from its historic slump, according to builders and real estate brokers. The tax credit, which has to be repaid, failed to generate much buyer interest, they say. The National Association of Home Builders wants regulators to help drop interest rates for 30-year, fixed mortgages to 2.99 percent during the first six months of 2009 and to 3.99 percent in the second half of the year.Builders "have tackled this long decline in the sales market for some time now," said David Crowe, chief economist for the group, "but until the consumer finds some confidence to come back into the marketplace, I am afraid I don't see a rebound."Wal-Mart to Settle 63 Lawsuits Over Wages...Margaret Cronin Fisk, Bloomberg Newshttp://www.washingtonpost.com/wp-dyn/content/article/2008/12/23/AR2008122302473_pf.htmlWal-Mart Stores said yesterday it will pay as much as $640 million to settle 63 federal and state lawsuits claiming the company cheated hourly workers and forced them to work through breaks.The settlement ends actions pending in most state courts and in federal court in Nevada, and comes two weeks after a similar agreement was reached in Minnesota. The company will record an after-tax fourth-quarter expense of $250 million, or about 6 cents a share.The settlement is "fair and reasonable" for Wal-Mart and Sam's Club hourly workers, said attorney Frank Azar, who represents employees in 14 states. "Wal-Mart has made tremendous strides in wage-and-hour compliance."Wal-Mart faced more than 70 wage-and-hour suits, including class actions claiming the company failed to pay for all hours worked or didn't properly compensate workers properly for overtime. The workers claim that Wal-Mart's own records show that hourly employees were cheated. Wal-Mart has denied the allegations."Resolving this litigation is in the best interest of our company, our shareholders and our associates," said Tom Mars, Wal-Mart executive vice president and general counsel, in a joint statement by the company and the plaintiffs. "Many of these lawsuits were filed years ago and the allegations are not representative of the company we are today."Wal-Mart said its potential total payout ranges from $352 million to $640 million. The company reported $378.8 billion in revenue in fiscal 2008.The company did not disclose what would determine the range of settlement amounts going to individual workers. These details will be covered in preliminary approval hearings."Our policy is to pay associates for every hour worked and to provide rest and meal breaks," Mars said. As part of the settlements, Wal-Mart said it agreed to continue to use electronic systems and other measures designed to maintain compliance with its wage-and-hour policies and applicable law.Similar lawsuits in California, Massachusetts and Pennsylvania aren't on the list of cases settled that was provided by Wal-Mart. Dan Fogleman, a company spokesman, declined to comment on the status of those cases.The agreement comes five weeks before Mike Duke takes over from outgoing chief executive H. Lee Scott, who has overseen a sales resurgence and sought to burnish Wal-Mart's image among environmentalists, politicians and labor groups.The company two weeks ago agreed to pay $54.3 million to settle a class-action suit by Minnesota hourly workers claiming violations of wage-and-hour laws. The Minnesota judge found in July that the company broke wage-and-hour laws more than 2 million times and ordered Wal-Mart to give employees $6.5 million in back pay. In settling, Wal-Mart avoided a trial scheduled for next month in which a jury would have been asked to order the company to pay as much as $2 billion.New York TimesIn Reversal, Court Allows a Bush Plan on Pollution...Felicity Barringer http://www.nytimes.com/2008/12/24/washington/24air.html?sq=epa&st=cse&scp=5&pagewanted=printA federal appeals court in Washington reversed itself on Tuesday and temporarily reinstated a Bush administration plan to reduce pollution from coal-fired power plants. In July, the court struck down the rule, saying the Environmental Protection Agency had exceeded its authority in devising a new emissions-trading system to reduce that pollution, and must rewrite the rule to fix its “fundamental flaws.” Environmentalists criticized the decision as a major setback for clean air. In Tuesday’s decision, the court said that having a flawed rule temporarily in place was better than having no rule at all. The agency must still revise the rule but has no deadline for doing so. The regulation, known as the Clean Air Interstate Rule, had been the centerpiece of the Bush administration’s re-engineering of the Clean Air Act. It set significant targets to reduce pollution around the power plants and in the downwind states whose air quality was affected by the emissions.Tuesday’s decision, by the Court of Appeals for the District of Columbia Circuit, means that levels of smog-forming nitrogen oxides must be reduced in 28 eastern states and the District of Columbia beginning Jan. 1. Levels of sulfur dioxide, closely associated with the formation of deadly fine soot particles, must be reduced beginning a year later. Environmentalists applauded the decision, saying it could form the basis for stronger controls to be drafted by the new administration. Industry groups were relieved to know what rules would cover their operations for the moment, but were pleased that the court’s original objections to the rule were unchanged.The court’s second thoughts about striking down the rule came in response to complaints from state regulators, environmental groups, some utilities and the E.P.A. itself. Judge Judith W. Rogers, concurring with the court’s decision, said eliminating the rule “would have serious adverse implications for public health and the environment,” because “the rule has become so intertwined” with the overall architecture of current Clean Air Act protections.Both the new Congress and President-elect Barack Obama are expected to tackle the problem of nitrogen oxides and sulfur dioxide. That will include determining how the new controls on those emissions should dovetail with controls for mercury, a toxic pollutant, and with the carbon dioxide emissions that are associated with climate change.Bob Meyers, who heads the Air and Radiation office at the E.P.A., said that he was disappointed that the court did not reconsider its underlying objections to the rule. The regulation, he said, “was one of the main programs the administration was able to put forward to improve public health and the environment.”He added, “To the extent that today’s hearing restores it — by removing immediate threat of vacating a rule — it is a good day."Dan Riedinger, a spokesman for the Edison Electric Institute, a utility trade group, said in an e-mail message that his group applauded the court for “providing greater near-term certainty for pollution reduction programs and emission markets, and maintaining important health and environmental benefits.”But, he added, “It’s impossible to predict what comes next.”Vicki Patton, the deputy general counsel with the Environmental Defense Fund, said that, while the E.P.A. must redesign the rule to meet the court’s objections, “the baton has been handed off to President-elect Obama and his team.” The rule, Ms. Patton said, “provides a foundation for building a more comprehensive program that protects human health from the full sweep of pollutants that are emitted from coal-fired power plants.”On Monday, the E.P.A. issued a report on fine-particle pollution that showed that the number of geographic areas failing to meet federal standards had nearly doubled, to 58, including part or all of 211 counties in 25 states.Wal-Mart Settles 63 Lawsuits Over Wages...Steven Greenhouse and Stephnie Rosenbloomhttp://www.nytimes.com/2008/12/24/business/24walmart.html?_r=1&ref=business&pagewanted=printWal-Mart said on Tuesday that it would pay at least $352 million, and possibly far more, to settle lawsuits across the country claiming that it forced employees to work off the clock. Several lawyers described it as the largest settlement ever for lawsuits over wage violations. After years of being embarrassed by lawsuits over its wage practices, the company agreed to settle 63 cases pending in federal and state courts in 42 states. The workers and their lawyers will receive at least $352 million, and the payments could reach $640 million, depending on how many claims affected workers submit.Union critics of Wal-Mart, the world’s largest retailer, saw the settlement as proof of their view that the company achieves its low prices in part by cheating workers. But the company rejected that characterization, saying it had already corrected wage practices that it has long attributed to local managers acting without authority.“Many of these lawsuits were filed years ago, and the allegations are not representative of the company we are today,” Tom Mars, general counsel and executive vice president at Wal-Mart Stores, said. The newly settled cases involved hundreds of thousands of current and former hourly employees. It is unclear how much the average employee will receive, but the sum could be several hundred dollars.Several lawyers said that Wal-Mart had reached the settlement to help end an embarrassing chapter as its chief executive, H. Lee Scott Jr., turns his position over to Michael T. Duke in February. The dozens of wage-and-hour suits against Wal-Mart accused the company and its managers of various illegal tactics. Those included forcing employees to work unpaid off the clock, erasing hours from time cards and preventing workers from taking lunch and other breaks that were promised by the company or guaranteed by state laws.The settlement — which wipes out all but 12 pending wage-and-hour lawsuits against Wal-Mart — also gives the company a cleaner slate as a new administration enters the White House. President-elect Barack Obama has indicated he will make wage-and-hour enforcement a priority, and groups critical of Wal-Mart suggested that the company had reached the settlement to avoid becoming a target of stepped-up enforcement. “Wal-Mart is scared with what they’re going to face in an Obama administration,” said David Nassar, of Wal-Mart Watch, a union-financed advocacy group. “You clean up your house before the in-laws come over. That’s what they’re trying to do.”Mr. Nassar said that settling the suits would also aid Wal-Mart in battling any renewed drive toward unionization at its stores. With labor leaders and Congressional Democrats pushing for legislation that would make it far easier for unions to organize workers, union supporters see Wal-Mart, with 1.4 million workers in the United States, as a prime target of their efforts.Frank Azar, a lead lawyer representing workers in lawsuits in 14 states, said in a statement on Tuesday that he was pleased with the settlement and thought it was fair for his clients. “We are equally pleased that Wal-Mart has made tremendous strides in wage-and-hour compliance,” he said, “and that it has implemented and agreed to continue to follow state-of-the-art compliance programs so that these improvements will continue into the future.” Wal-Mart announced the settlement less than two weeks after it reached a $54.25 million settlement covering a group of 100,000 current and former employees in Minnesota who asserted they were owed money over missed breaks and off-the-clock work.In a case still pending, Wal-Mart has appealed a 2005 verdict in which a California jury ordered it to pay $172 million for making employees miss meal breaks. In 2006, a jury in Pennsylvania awarded $78 million against Wal-Mart in a lawsuit over rest breaks and off-the-clock work. Last year, a judge increased that award to $188 million to include damages, interest and lawyers’ fees. Wal-Mart has also appealed that ruling.Brad Seligman, the lead lawyer in a large sex discrimination lawsuit against Wal-Mart — one involving some two million current and former female employees — said that the verdicts in California and Pennsylvania had hurt Wal-Mart’s image and bottom line. He said the company was also worried by the unsympathetic language in a recent ruling by the Massachusetts Supreme Judicial Court in a wage lawsuit there.“They saw the way the wind was blowing,” Mr. Seligman said.The lawyers in the sex discrimination lawsuit, who are said to be seeking several billion dollars, have held intermittent settlement talks with Wal-Mart, as the company seeks to put that lawsuit behind it as well. The settlement announced on Tuesday is subject to approval by scores of judges overseeing the individual cases. Lawyers representing the Wal-Mart employees are expected to receive tens of millions of dollars, though the amount has not been determined.Several lawyers who had brought wage-and-hour lawsuits against Wal-Mart acknowledged that the total value of the newly announced settlement might seem modest in light of the California and Pennsylvania verdicts. But those lawyers also said that in some states, the wage lawsuits have not gone their way, with judges refusing to allow them to proceed as class actions.Wal-Mart officials say that in recent years, they have taken strong steps to reduce wage violations, ordering managers not to demand off-the-clock work and threatening to fire employees who work off the clock or do not take their designated lunch and rest breaks. Wal-Mart has even programmed its cash registers and other equipment to stop working when employees are not on the clock.Robert Bonsignore, co-counsel in nearly 40 of the cases, said that as a result of the settlement, “Wal-Mart can now say that it has taken action to make its stores a great place to shop and work.” Wal-Mart said it would take a charge of $250 million, or 6 cents a share, in this quarter to help finance the settlement.Walmartstores.comWal-Mart and Plaintiffs' Counsel Announce Settlement of Most Wage and Hour Class Action Lawsuits Against the Company...Press Release...12-23-08http://walmartstores.com/FactsNews/NewsRoom/8867.aspxBENTONVILLE, Ark., December 23, 2008 -- Today Wal-Mart Stores, Inc. (NYSE: WMT) and attorneys for the plaintiffs jointly announced the settlement of 63 wage and hour class action lawsuits that have been pending against the company for several years.Each of the settlements is subject to approval by the trial court, and the total amount to be paid will depend on the amount of claims that are submitted by class members. Under the agreements, the total will be at least $352 million, but no more than $640 million. Also, as part of the settlements, Wal-Mart has agreed to continue to use various electronic systems and other measures designed to maintain compliance with its wage and hour policies and applicable law.As a result of the settlement, the company will record an after-tax charge to continuing operations in its fiscal fourth quarter of approximately $250 million, or approximately $0.06 on earnings per share.“Resolving this litigation is in the best interest of our company, our shareholders and our associates,” said Tom Mars, executive vice president and general counsel, Wal-Mart Stores, Inc. “Many of these lawsuits were filed years ago and the allegations are not representative of the company we are today.”Mars continued, “Our policy is to pay associates for every hour worked and to provide rest and meal breaks. This is a commitment we make to the more than 1.4 million associates who choose to work for Wal-Mart and serve our customers and members every day. We have worked hard to have the right communication, processes and systems in place to help us live up to this commitment.”The cases covered by these settlements were brought by several different groups of plaintiffs’ counsel. Frank Azar of the law firm of Franklin D. Azar & Associates, P.C., co-lead counsel in fourteen states, said, “We are pleased with this settlement and believe it is fair and reasonable for our clients. We are equally pleased that Wal-Mart has made tremendous strides in wage and hour compliance and that it has implemented and agreed to continue to follow state of the art compliance programs so that these improvements will continue into the future. We hope Wal-Mart’s compliance programs will serve as an example to other major retailers.”Carolyn Burton of the Mills Law Firm, co-lead counsel in a group of 35 cases consolidated in Nevada and cases covering four other states said, “After many years of hard fought litigation, the parties have reached an agreement that values the work of Wal-Mart’s employees by providing both economic and injunctive relief.” Her co-counsel, Robert Bonsignore of Bonsignore and Brewer added, “As a result of this settlement, Wal-Mart can now say that it has taken action to make its stores a great place to shop and work.”NOTE: A full list of the cases covered by these settlements is available at: http://walmartstores.com/FactsNews/NewsRoom/8874.aspxAbout Wal-Mart Stores, Inc. (NYSE: WMT)Wal-Mart Stores, Inc. operates Walmart discount stores, supercenters, Neighborhood Markets and Sam’s Club locations in the United States. The Company operates in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico and the United Kingdom and, through a joint venture, in India. The Company's common stock is listed on the New York Stock Exchange under the symbol WMT. More information about Wal-Mart can be found by visiting www.walmartstores.com. Online merchandise sales are available at www.walmart.com and www.samsclub.com.Contact for Wal-Mart: Wal-Mart Media Relations1-800-331-0085Wal-Mart Investor Relations Carol Schumacher: 479-277-1498 Mike Beckstead: 479-277-9558Contact for Plaintiffs:Franklin D. Azar, Esq.Nathan J. Axvig, Esq.Franklin D. Azar and Associates, P.C.1-800-544-9922salazara@fdazar.com (for Mr. Azar)axvign@fdazar.comCarolyn Beasley Burton, Esq.The Mills Law Firm 510-691-2422cbeasley@beasleylawgroup.bizRobert J. Bonsignore, Esq.Bonsignore & Brewer781-391-9400rbonsignore@class-actions.usList of Settled Wage and Hour Class Actions - 12/23/08http://walmartstores.com/factsnews/newsroom/8874.aspxView the news release here.  1. Adcox v. Wal-Mart Stores, Inc., et al., Case No. 04-00633, United States District Court for the Southern District of Texas, filed 11/09/04  2. Armijo v. Wal-Mart Stores, Inc., et al., Case No. 00-01540, 1st Judicial District Court for the State of New Mexico, filed 09/18/00  3. Bailey v. Wal-Mart Stores, Inc., Case No. 00-01398, Marion County Superior Court for the State of Indiana, filed 08/17/00  4. Barnett v. Wal-Mart Stores, Inc., Case No. 01-2-24553-8, King County Superior Court for the State of Washington, filed 09/10/01  5. Basco v. Wal-Mart Stores, Inc., Case No. 00-03184, United States District Court for the District of Louisiana, filed 09/05/00  6. Bayardo v. Wal-Mart Stores, Inc., et al., Case No. 07-00349, United States District Court for the District of Nevada, filed 03/19/07  7. Brogan, Pam, et al. v. Wal-Mart Stores, Inc., et al., Case No. 07-00214, United States District Court for the Southern District of West Virginia, filed 04/03/07  8. Brogan, Tammy, et al. v. Wal-Mart Stores, Inc., et al., Case No. 05-C-0047, Strafford County Superior Court for the State of New Hampshire, filed 02/17/05  9. Brown, Lisa v. Wal-Mart Stores, Inc., Case No. 05-L-85, 14th Judicial Circuit Court for the State of Illinois, filed 06/20/0110. Brown, Shanaia v. Wal-Mart Stores, Inc., et al., Case No. 07-010417, United States District Court for the Eastern District of New York, filed 04/05/0711. Campbell v. Wal-Mart Stores, Inc., et al., Case No. 06-01172, United States District Court for the District of Nevada, filed 09/20/0612. Carter v. Wal-Mart Stores, Inc., et al., Case No. 02-CP-15-626, Court of Common Pleas for the State of South Carolina, filed 07/31/0213. Cole v. Wal-Mart Stores, Inc., et al., Case No. 06-00003, United States District Court for the District of Montana, filed 01/13/0614. Connatser v. Wal-Mart Stores, Inc., et al., Case No. 07-02239, United States District Court for the Western District of Tennessee, filed 04/04/0715. Curless v. Wal-Mart Stores, Inc., et al., Case No. 05-00277, United States District Court for the District of Wyoming, filed 10/26/0516. Deas v. Wal-Mart Stores, Inc., et al., Case No. 06-00052, United States District Court for the Eastern District of Virginia, filed 04/03/0617. Evans v. Wal-Mart Stores, Inc., et al., Case No. 07-00074, United States District Court for the District of South Carolina, filed 01/09/0718. Faverty v. Wal-Mart Stores, Inc., Case No. 02-08-4704, Court of Common Pleas for the State of Ohio, filed 08/02/0219. Gilles, et al. v. Wal-Mart Stores, Inc., et al., Case No. 06-00519, United States District Court for the District of Indiana, filed 03/31/0620. Grey v. Wal-Mart Stores, Inc., et al., Case No. 06-02293, United States District Court for the District of Kansas, filed 07/14/0621. Gross v. Wal-Mart Stores, Inc., et al., Case No. 04-01029, Commonwealth of Kentucky Circuit Court for the State of Kentucky, filed 09/24/0422. Hale v. Wal-Mart Stores, Inc., Case No. 01-218710, Circuit Court of Jackson County, Missouri, filed 08/15/0123. Hall, Nancy v. Wal-Mart Stores, Inc., et al., Case No. 05-01099, United States District Court for the District of Nevada, filed 08/12/0524. Henderson v. Wal-Mart Stores, Inc., et al., Case No. 06-01569, United States District Court for the District of Nevada, filed 12/06/0625. Hicks v. Wal-Mart Stores, Inc., et al., Case No. 07-00051, United States District Court for the Eastern District of Texas, filed 04/03/0726. Holcomb v. Wal-Mart Stores, Inc., Case No. 00-0633G, State Court of Chatham County, Georgia, filed 03/28/0027. Husidic v. Wal-Mart Stores, Inc., et al., Case No. 06-00441, United States District Court for the Southern District of Iowa, filed 09/14/0628. Iliadis v. Wal-Mart Stores, Inc., et al., Case No. 549802, Middlesex County Superior Court for the State of New Jersey, filed 05/30/0229. Jackson, Dora v. Wal-Mart Stores, Inc., et al., Case No. 05-00269, United States District Court for the District of Delaware, filed 04/04/0530. Jackson, Reginald v. Wal-Mart Stores, Inc., et al., Case No. 05-00424, United States District Court for the District of Idaho, filed 02/03/0631. Jackson, f/k/a Scott v. Wal-Mart Stores, Inc., Case No. 01-40751-5, Circuit Court of Saginaw County, Michigan, filed 09/26/0132. King v. Wal-Mart Stores, Inc., et al., Case No. 07-01486, United States District Court for the Eastern District of Pennsylvania, filed 04/13/0733. Kraemer v. Wal-Mart Stores, Inc., Case No. 06-00098, United States District Court for the District of North Dakota, filed 11/15/0634. Kuhlman v. Wal-Mart Stores, Inc., et al., Case No. 01-08080, Circuit Court of Milwaukee County, Wisconsin, filed 08/30/0135. Lerma v. Wal-Mart Stores, Inc., et al., Case No. 01-01395, District Court of Cleveland County, Oklahoma, filed 08/31/0136. Lopez v. Wal-Mart Stores, Inc., et al., Case No. 00-12326, 23rd Judicial District Court for the State of Texas, filed 06/23/0037. Luce v. Wal-Mart Stores, Inc., et al., Case No. 05-01019, United States District Court for the District of South Dakota, filed 05/11/0538. Mathies, et al. v. Wal-Mart Stores, Inc., et al., Case No. 07-00483, United States District Court for the District of Oregon, filed 03/30/0739. McFarlin v. Wal-Mart Stores, Inc., et al., Case No. 05-00094, United States District Court for the District of Alaska, filed 04/07/0540. Montgomery v. Wal-Mart Stores, Inc., et al., Case No. 03-00537, United States District Court for the District of Mississippi, filed 12/30/0241. Mussman v. Wal-Mart Stores, Inc., et al., Case No. 01-27486, District Court of Clinton County, Iowa, filed 06/05/0142. Nagy v. Wal-Mart Stores, Inc., et al., Case No. 01-00854, Circuit Court of Boyd County, Kentucky, filed 08/29/0143. Nolan, et al. v. Wal-Mart Stores, Inc., et al., Case No. 06-00777, United States District Court for the Northern District of Ohio, filed 04/04/0644. Olinger v. Wal-Mart Stores, Inc., et al., Case No. 06-14055, United States District Court for the Eastern District of Michigan, filed 09/14/0645. Parrish v. Wal-Mart Stores, Inc., et al., Case No. 05-00236, State Court of Chatham County, Georgia, filed 02/17/0546. Pedro, et al. v. Wal-Mart Stores, Inc., et al., Case No. 07-10638, United States District Court for the District of Massachusetts, filed 04/04/0747. Penn v. Wal-Mart Stores, Inc., et al., Case No. 06-06045, United States District Court for the Eastern District of Louisiana, filed 09/15/0648. Phelps v. Wal-Mart Stores, Inc., et al., Case No. 07-00243, United States District Court for the Southern District of Illinois, filed 04/04/0749. Pickett v. Wal-Mart Stores, Inc., et al., Case No. 03-05945, 13th Judicial District Court for the State of Tennessee, filed 10/22/0350. Poha v. Wal-Mart Stores, Inc., et al., Case No. 05-00697, United States District Court for the District of Hawaii, filed 11/01/0551. Pritchett v. Wal-Mart Stores, Inc., et al., Case No. CV-05-00967, Circuit Court of Jefferson County, Alabama, filed 02/17/0552. Richardson, Sherry v. Wal-Mart Stores, Inc., et al., Case No. 07-00438, United States District Court for the District of Nevada, filed 04/04/0753. Robinson v. Wal-Mart Stores, Inc., et al., Case No. 03-00104, United States District Court for the District of Mississippi, filed 03/05/0754. Sarda v. Wal-Mart Stores, Inc., et al., Case No. 01-00326, Circuit Court of Washington County, Florida, filed 09/21/0155. Smith, Adriane v. Wal-Mart Stores, Inc., et al., Case No. 07-00188, United States District Court for the Western District of Wisconsin, filed 04/02/0756. Stafford v. Wal-Mart Stores, Inc., et al., Case No. 05-00535, United States District Court for the District of Nebraska, filed 12/08/0557. Whitacre v. Wal-Mart Stores, Inc., et al., Case No. 07-00445, United States District Court for the District of Nevada, filed 06/15/0758. Willey v. Wal-Mart Stores, Inc., et al., Case No. 01-03688, District Court of Wyandotte County, Kansas, filed 09/21/0159. Williams, Norma Jean v. Wal-Mart Stores, Inc., et al., Case No. 06-00061, United States District Court for the District of Utah, filed 01/20/0660. Williams, Travis v. Wal-Mart Stores, Inc., et al., Case No. 06-00142, United States District Court for the Western District of North Carolina, filed 03/23/0661. Winters v. Wal-Mart Stores, Inc., et al., Case No. 02-00199, Circuit Court of Holmes County, Mississippi, filed 05/28/0262. Woods v. Wal-Mart Stores, Inc., et al., Case No. 06-00006, United States District Court for the District of Maine, filed 01/12/0663. Works v. Wal-Mart Stores, Inc., et al., Case No. 05-0187-2, Circuit Court of Miller County, Arkansas, filed 05/18/05CNN MoneyUnemployment claims highest since '82Number of Americans filing for state unemployment benefits rises to a 26-year high of 586,000, according to Labor Department...Kenneth Musantehttp://money.cnn.com/2008/12/24/news/economy/jobless_claims/index.htm?postversion=2008122411NEW YORK (CNNMoney.com) -- The number of Americans filing for first-time unemployment benefits rose to a 26-year high last week, according to a government report released Wednesday.The Labor Department said that initial filings for state jobless benefits rose to 586,000 for the week ended Dec. 20. That was an increase of 30,000 from the 556,000 revised figure for the prior week, and up from a recent high of 575,000 claims reported earlier this month.Wednesday's report revealed the highest number of jobless claims since Nov. 27, 1982 when initial filings hit 612,000. Economists were expecting jobless claims to rise to only 558,000, according to a poll by Briefing.com.This week, the report was released a day early due to the Christmas holiday on Thursday.The weekly jobless claims report can give economists one of the most up-to-the moment reads on the state of the U.S. economy. And the increasing number has some worried that consumers may further tighten their wallets."It's likely to get worse before it gets better," said Carl Riccadonna, senior U.S. economist with Deutsche Bank.In fact, consumer spending fell for the fifth straight month in November, according to the Commerce Department."Without consumers turning around, the economy's not going to turn around," Riccadonna said.Over the past four weeks, new unemployment claims have risen to an average of 558,000 a week, up 13,750 from the revised moving average of 544,250 reported last week.The four-week moving average is designed to smooth out some of the week-by-week fluctuations in initial claims statistics, and give a broader view of the U.S. job market.The number of people continuing to collect unemployment declined to 4.37 million in the week ended Dec. 13, the most recent data available. The measure was a decrease of 17,000 from the preceding week's revised level of 4.39 million.Over the previous four weeks the number of people on unemployment averaged 4.32 million a week, the government said.The number of new jobless claims rose the most in Oklahoma, rising by 1,590, the Labor Department said.North Carolina saw jobless claims fall the most, by 20,526, due to fewer layoffs in the construction, manufacturing and materials industries.A weak economy causes companies to layoff workers, which causes people to tighten their spending, which weakens the economy even further.It's a "negative feedback loop," said Riccadonna, and one of the only things that can get us out of it would be a "'shock and awe' fiscal stimulus package" from the federal government.President-elect Barack Obama said last week his administration would try to generate 3 million jobs over the next two years as part of an economic stimulus plan that some economists estimate could cost as much as $800 billion.Unhappy new year: More layoffs '09Nearly 1 in 4 companies plan layoffs, and 1 million job cuts are forecast, reports show...Julianne Pepitonehttp://money.cnn.com/2008/12/22/news/economy/companies_cost_cutting/index.htm?postversion=2008122215NEW YORK (CNNMoney.com) -- As the recession has worsened, companies have ratcheted up drastic cost-cutting measures and layoffs. And 2009 doesn't look much better, according to two recent reports.In a report released Monday, executive outplacement firm Challenger, Gray & Christmas Inc. predicted that more than 1 million jobs would be cut in 2009.Last week, consulting firm Watson Wyatt (WW) said that 23% of companies surveyed in early December plan layoffs in the next year. The report also said that 39% had already cut their work force - up from 19% in October."Companies are trying a multitude of actions to help trim costs," said Laurie Bienstock, national director of strategic rewards. "There's been a huge shift in the economy, and the numbers will probably be in flux until things settle down."Cuts for layoff survivorsIncluded in that "multitude" are reductions for those spared in layoffs. In Watson Wyatt's October survey, 4% of companies said they had already implemented a salary freeze. By December, that number soared to 13%.A further 19% said they planned freezes in the next 12 months, up from 12% in October, according to the latest report, which was released Thursday.One in five companies has raised employee contributions to health care, and 17% planned to do so over the next year. Completed salary reductions jumped to 5%, up from 2% in October."Companies are taking five or six different actions to find the combination that's most effective for them," Bienstock said.Merit raise budgets - cash that companies set aside for bonuses and rewards - changed the most dramatically, Bienstock said. In December, 61% of companies said they planned to revise merit budgets; in October, 21% said they planned such changes, the report said."Companies are struggling with the attraction and retention of talent," Bienstock said. "At least in the short-term, a lot of people with critical skills are not in the job pool. They're staying put, and it's hard to draw them out."Bienstock said more corporations are piecing together contingency plans and trying myriad options, so the recent flurry of activity may lead to a plateau in these numbers over the next few months."No one can make statements about what will happen in the economy, but over the next three months companies will start to see the impact of these changes," Bienstock said. Riding the housing bustInvestors are scooping up foreclosed properties, afraid of missing the real estate opportunity of a lifetime. Want to join them?...David Whitford. REPORTER ASSOCIATES Doris Burke and Scott Cendrowski contributed to this article.http://money.cnn.com/2008/12/18/magazines/fortune/whitford_realestate.fortune/index.htm?postversion=2008122314(Fortune Magazine) -- If you want to mark the moment when real estate morphed from every American's dream investment into every American's nightmare, try the third quarter of 2007. That's when the foreclosure rate, which had been slowly creeping upward for three decades and was flat all spring, suddenly leaped 32%, from .59% to .78% of all mortgages. Most were surprised, but as always, a few saw it coming - among them, Rob Friedman and Jeffrey Frieden, co-founders of Real Estate Disposition Corp. (REDC) of Irvine, Calif., the nation's largest foreclosure auction house. Launched during the last real estate downturn in 1990, REDC focused on its other activities, like land auctions, during the boom years. Then, in late 2006, Friedman got a call from some former clients at Bear Stearns who were tracking early signs of acute distress in the housing market. A new wave of foreclosures was about to crash. (This was at least six months before Bear's own subprime blowup.) "C'mon guys," was the word the auctioneers got from the bankers at Bear. "Time to go!" REDC held its first auction of the new era on May 12, 2007, and on that day sold 76 properties for $29,490,300. And since then? One hundred eighty-nine auctions coast to coast, 21,191 foreclosed properties sold, $3.6 billion in winning bids. Welcome to the other side of the housing bust. As home prices continue to skid and foreclosure rates soar (up a further 38% since the third quarter of 2007), something else is happening: Across the country, shrewd investors alert to outrageous bargains are beginning to stir. In California and Florida, thousands of small investors are crowding auction venues; in places like Phoenix and Las Vegas they're grabbing seats on foreclosure bus tours featuring free champagne and onboard massages. The opportunists range from first-time homebuyers to the most sophisticated of investors; billionaire John Grayken of Lone Star Funds, who made a fortune during the S&L crisis, snapped up $6.2 billion in distressed mortgage-backed securities from Merrill Lynch in July. Make no mistake, it's likely that we have not bottomed out yet. According to the latest figures from the National Association of Realtors (NAR), the median existing-home price was $183,300 in October, down 11.3% from a year ago. That's the sharpest yearly price drop since NAR began reporting such figures in 1968. For the third quarter, the closely watched S&P/Case-Shiller national home-price index posted a 16.6% decline in home prices from a year earlier, worse than the 15.1% drop posted in the second quarter. Across the board, experts predict further declines in 2009.But more than Hank Paulson, Sheila Bair, or Ben Bernanke, it's this first wave of bargain hunters who will tell us when a housing recovery will happen. They're the ones diligently buying down excess supply, restoring order and balance to a dysfunctional market. So let's visit the front lines and see what they're up to. Here we go: to a raucous house auction in L.A.; a meeting of a real estate investors' club in Broward County, Fla.; and along for the ride on a limousine tour of foreclosed properties in and around Phoenix. No doubt some of the people we'll meet will wind up losing their shirts. But just as surely, among them will be those who will profit - spectacularly, and before anyone else does - from the recovery that one day must come. SOUTHERN CALIFORNIA AUCTION FEVEREver been to a foreclosure auction? No, probably not. Okay, you'll need a driver's license or another government ID, a $5,000 cashier's check, and a personal checkbook to cover the balance of the 5% deposit on your new home (unless the five grand does it; plenty of houses sell at auction for less than $100,000). And if I were you, I'd bring earplugs. On a Sunday afternoon here at the dowdy, vaguely Moorish expo center adjacent to the historic Shrine Auditorium in Los Angeles, the public-address system is cranked way, way up. That's Jeffrey Frieden - REDC's 6-foot-6, tuxedoed CEO - at the podium, flanked by a pair of giant screens displaying fuzzy, washed-out images of the merchandise. A trained auctioneer, Frieden is sprinting down the list at a 30-sales-per-hour clip. Two big floor fans are blowing at his backside, but still he sweats. In front of him are row upon row of folding chairs filled with bidders, 885 of them officially registered, their ranks swelled fourfold by spouses, co-workers, babies in strollers, and assorted posse members. All ages, all races, of all apparent means; a motley collection of "end users," as they're known in the trade, as opposed to wholesalers, landlords, and other pure investors. They balance in their laps bid cards, auction catalogs, and platters of nachos from the concession stand. "Auctions are a pretty simple game," Rob Friedman, REDC's chairman, explains to me during a walk around the block to escape the noise. "The more people that you get to see your ads, the more people that will go to your open houses. The more people that go to the open houses, the more people that will show up at your auction. The more people that show up at your auction, the more competitive the bidding, and the more we sell." Even brokers who compete with REDC admire the privately held company's rapidly growing reach (licensed in 40 states, up from fewer than 20 at the beginning of the year), its marketing prowess ("We do a lot of TV because we think it really gets to the masses"), and its "silver platter" approach to facilitating fast sales. "We have the lenders, we have the escrow, we have the title," says Friedman. "It's a turnkey buying package." According to DataQuick, California was averaging 2,000 new foreclosures every business day until a recent procedural change took effect. The way Friedman sees it, REDC has an important role to play in restoring sanity to the market - by "blowing through the inventory" and putting families back in houses. "There is nothing good about having them empty, and everyone knows it," Frieden says. "The banks know it, the government knows it, we know it. Getting this stuff moved through the system is all good." Current renters Ray and Jaclyn Attefat (he's a jewelry salesman, she teaches ballet) have their eyes on a three-bedroom, two-bath ranch on a sub-quarter-acre lot in Glendale, "previously valued" at $930,000. Starting bid: $290,000. Like so many who were priced out of the market in the past few years, the Attefats, who have two young children, are hopeful that their time has come. Alas, not today. Their limit is $400,000. When the gavel drops on this one, it goes for $560,000 (plus a 5% buyers fee payable to REDC). That's okay, they seem to be telling each other with their eyes. And they pack their strollers and push toward the exit. Standing nearby is Hector Alvarado, a broker, here to observe the bidding on several properties he's been showing but so far hasn't been able to move. If they sell today, REDC will cut him a piece of the commission from the bank; if they don't, he'll keep trying. Seven out of ten sales that Alvarado brokers these days are bank-owned properties (statewide in California, the latest official figure is 51%). Recently the New York Times reported that old people are having to delay moving into retirement communities because, like everybody else, they can't sell their homes; all that's selling are foreclosures. "This is what's going to help get me through this nightmare," says Alvarado. "The new sellers are the banks. They're my best friends."Behind the big blue curtain that separates the auction floor from the dimly lit staging area, I find Frieden sitting alone with a sandwich while a colleague spells him at the gavel. "So what about you?" I ask. "Are you buying?" He looks at me like I'm crazy. "I am not a residential real estate investor," he says; then he says it again. "I am not. Under any circumstances. I am not at all tempted." SOUTH FLORIDA VULTURES STIRRINGThe International Game Fish Association's Hall of Fame, hard by I-95 in Dania, Fla., claims to house the world's largest collection of angling artifacts. On the first Wednesday of every month, around dinnertime ("Finger food will be served as usual to the first 200 attendees - so get there early!"), it starts filling up with a different kind of artifact: South Florida real estate investors. Dade County, Broward County, Palm Beach County - not many places in America got hammered harder than those places did. The average price for an existing single-family home in Fort Lauderdale, for instance, was $354,000 a year ago; today it's $252,500. Condos? You don't want to know. But the same thing is happening here as in other distressed markets: People are buying, be they brave or foolish, even as prices continue to drop. On a recent night the mood in the packed room is hopeful. Everybody's looking to get back into the game, but recognizing that the rules have changed. Flipping is no longer an option, says attendee David Dweck. "Those are the people who are in trouble, because their only exit strategy was appreciation," he says. These days it's all about cash flow: How soon can you turn it over? How fast can you make it habitable? Can you make enough rent to cover the carrying costs? Bill Leon, president of the Broward Real Estate Investors Association, is setting up the sound system for tonight's featured speaker, a widely feared local tenant's attorney who has promised to teach novice landlords how to write a bulletproof lease. Leon is a wholesaler, meaning he looks for steep bargains he can resell in a hurry to landlords and rehab specialists. "I buy 'em one at a time, and I sell 'em one at a time," he says. He has a phone number, 1-800-PAYCASH, that he advertises on TV. "Let's say I can buy that $100,000 house for 60. I sell it for 70, let an investor make 30. I always have to leave enough on the table for the next guy." Leon's been doing this for 20 years, through up markets and down. Never before has he witnessed such desperation. "We're seeing buys that are unprecedented," he says, "people that are afraid not to sell because they don't know where the bottom of the market is." Leon doesn't know where that bottom is, either ("and I live in it," he points out). But he's seeing movement. Six months ago he'd look at 20 to 30 deals to get a good one; now, he says, he looks at ten. "I'll tell you, someone wants to be an investor in this market, you'll not see this again for many, many, many years." The next day I go riding with Dweck, whose business card identifies him as a RE/MAX broker, a wholesale buyer (Houses Bought Cash, LLC), and a hard-money lender - that's a guy who'll give you cash to buy a home when a bank won't, fast, at 15% interest plus points. We take a turn around Parkland, Fla., a bedroom community of 22,000 in a remote stretch of northern Broward County adjacent to the Everglades. We're hunting for foreclosures, and they're easy to spot - the empty driveway, the uncut grass ("There are snakes," Dweck says), the swampy, fluorescent-green water in the swimming pool. We turn into the Parkland Golf and Country Club, 790 super-exclusive gated acres (Olympic swimmer Dara Torres lives here) enclosing what Dweck describes as "a significant amount of pain." He shows me a thick sheaf of printouts: 44 current listings, some asking for as much as $2 million, nearly all of them "contingent on third-party approval," meaning they're short sales (a negotiated form of preforeclosure) or are already in foreclosure. Dweck has a friend who bought here on spec, putting down $100,000 on a $1.6 million home just before the bottom fell out. Dweck says he told his friend to renegotiate the price down to $1 million or walk. "You sure don't want to close on that," he says. "That would be financial ruin, guaranteed." So where does Dweck look for bargains today in South Florida? "Workforce housing," he says, in ethnic neighborhoods in older towns like Pompano Beach. He shows me tiny bungalows on small lots that once sold, incredibly, for $300,000 but can be had now for as little as ten cents on the dollar, then fixed up and sold at a profit or rented in a heartbeat. "People have been beaten down by fear, negativity, constant media bombardment," says Dweck. "There is a silver lining. The future looks bright." PHOENIX, ARIZONA DESERT DEALS"Dead-dog smell," says broker Sheresa Pompay, standing in the kitchen of 4514 West Mitchell Drive with her sunglasses on. Whoever was living here obviously left in a hurry. There's a box of Cocoa Puffs in the cupboard, an open bottle of shampoo in the shower, a bunch of what used to be grapes on the kitchen counter - now they're raisins - and an unopened letter by the light switch at the back door. It's from the local elementary school, addressed "To the parents of ..." And that smell. Not an actual dead dog, I don't think. Just a very strong odor of decay. According to Pompay, that's a good thing. "The more it smells," she says cheerfully, "the better deal you're going to get, the more money you're going to make." Pompay's partner, Derek Turner - one of half-a-dozen lenders, brokers, investors, and contractors along for the tour today in Pompay's rented limousine - wants to buy this place. The bank lists it for $92,900. He thinks he can get it for, "like, 30, 35 thousand," or slightly less than he paid not long ago for a nearly identical bungalow next door. "This is basically what our template is," Turner says, leading me through the one he bought. "We come in, we just paint, put in a new baseboard, put in raised-panel doors instead of those flat-panel doors. These old windows, they're single-pane, so we just replace all the broken glass, polish up the steel, paint 'em up, make it clean. And then the floor and new cabinets and stuff." He'll accomplish all that for about $12,000 - "That's with landscaping and everything" - and then he'll put the property back on the market and try to sell it for $80,000. Already he has two potential buyers lined up. After the tour disbands and the limo goes away, Pompay and Turner get in my rental car and we keep driving, north to DC Ranch, a fancy new subdivision on the outer limits of Scottsdale. Stucco mansionettes with orange tile roofs and heavy front doors, tight lots, curvy streets, a park in the middle with a playground set. The house they want me to see sold for $765,000 in 2007. The bank seized it in August, but not before the previous owner, ruined and angry, exacted his revenge - a not uncommon phenomenon these days. "This house has been stripped," the offer sheet warns. I don't know what that means ... until I step inside. He took the dishwasher, the stove, the refrigerator, the carpets, the kitchen cabinets, and the tile backsplash. Also the light fixtures, the switch covers, and every last interior door. He even ripped the whirlpool assembly out from underneath the hot tub in the master-bedroom suite. The bank wants $369,900: "Sold as is, seller at this price will not make any repairs." Discouraged? Good, says Pompay. "I love the people who read about all the gloom and doom, because they stay on the sidelines and go, 'It hasn't hit bottom.' Whatever. By the time everyone jumps back in, we'll be out and doing something else." She sighs dreamily. "I just want to buy," she says. "Everything out there. I just want to go out and buy it all."