Saturday, December 30, 2006

California's job market continues to perform reasonably well even as it's affected by the downturn in the housing market

Job market holding up

By Dale Kasler - Bee Staff Writer

Published 12:00 am PST Saturday, December 23, 2006
Story appeared in BUSINESS section, Page D1



California's job market continues to perform reasonably well even as it's affected by the downturn in the housing market.

The state's unemployment rate edged up a tenth of a point in November to 4.6 percent, state officials said Friday. Payrolls grew by 15,900 jobs during the month, slightly better than average for 2006, said Howard Roth, the state's chief economist.

Construction jobs actually increased across the state in November, defying the recent trends. But construction employment -- which fueled much of California's job growth in 2004 and 2005 -- remains about 1 percent lower than a year ago, acting as something of a drag on the overall job market.

But for the most, part housing's woes "are not really spilling over to other sectors," Roth said.

Sacramento-area unemployment rose four-tenths of a point, to 4.3 percent, although the region added 1,800 payroll jobs.

Much of the job growth was seasonal: retailing, restaurants, hotels and ski resorts.

"A decent month, pretty typical for this time of year," said David Lyons, labor market consultant with the state Employment Development Department.

As with the state, the region's job market, covering Sacramento, Yolo, Placer and El Dorado counties, is fairly healthy despite the decline in construction and other housing-related sectors.

"I'm not overly concerned (about housing)," Lyons said. "It's not a free-fall."

Although hospitality and the professional and business services sectors remained the big job creators in Sacramento over the past year, Lyons said an old reliable sector has woken up after a long slumber: state government.

State government has added 3,500 jobs in greater Sacramento in the past year, a gain of 3.4 percent. The entire region has added 13,300 jobs in the past year, or 1.5 percent.

After several years of job freezes and cutbacks, "it reached the point where they couldn't go on without adding staff," Lyons said.

State government employment in Sacramento is still about 2.5 percent lower than it was in March 2002, when it peaked at 109,600 jobs.

Orange County had California's lowest unemployment last month, 3.4 percent. Imperial had the highest, 16.2 percent.

About the writer:

* The Bee's Dale Kasler can be reached at (916) 321-1066 or dkasler@sacbee.com.

Upscale subdivisions with large, luxury homes continue to proliferate in Vacaville, CA

Mini Mansions

Large, luxury homes debut in Vacaville

By Amanda Janis/Business Editor

Article Launched: 12/23/2006 06:47:38 AM PST

Gourmet kitchens come standard with granite slab countertops, Whirlpool appliances, under-cabinet...

Upscale subdivisions continue to proliferate in Vacaville, as D.R. Horton's Cheyenne community opens all eight of its model homes to the public this weekend. Located amid Browns Valley's hills, the development offers single- and two-story homes ranging in size from 2,753 square feet to 4,312 square feet, with price tags starting in the mid $700,000 range.

"It's really a diverse neighborhood, with lots of different architectural styles," said Steve Laird, sales representative for D.R. Horton. Exterior designs call on French Provincial, Spanish and Craftsman influences.

And Laird added, homes are on quarter-acre lots and larger.

"There's not many home builders that put homes on quarter-acre home sites and (offer) single stories of up to nearly 3,000 square feet," he said.

The basic floor plans are:

• Residence One, a single-story, is approximately 2,909 to 2,951 square feet, with four bedrooms, four baths, an office and three-car tandem garage.

• Residence Two, a single-story home of approximately 2,775 square feet, with four bedrooms, three baths, an optional office and three-car garage.

• Residence Three, a single-story, numbers approximately 2,929 square feet, and has three bedrooms, three baths, an office, a three-car tandem garage and optional fourth bedroom or retreat.

• Residence Four is a two-story home that ranges from 3,248 square feet to 3,898 square feet; it has four bedrooms, three and one-half baths, a den and three-car detached garage. There are options for a fifth bedroom and suite, fourth bathroom, loft, and carriage unit above the garage.

• Residence Five, a two-story home that's between 3,510 square feet and 3,808 square feet, boasts five bedrooms, four and one-half baths, a three-car garage and optional loft or bonus room.

• Residence Six is approximately 3,655 square feet arranged over two stories. It has four bedrooms, three and one-half baths, a four-car tandem garage and optional loft.

• Residence Seven, a two-story home, numbers approximately 4,213 square feet to 4,242 square feet. It has five bedrooms, four and one-half baths, two lofts, a three-car tandem garage and options for a bonus room, sixth bedroom and retreat. A variation of this plan includes a balcony.

• Residence Eight, is a two-story, five bedroom, three and one-half bath home that is approximately 4,312 square feet. It also has an office, retreat, four-car tandem garage with workshop, and an optional sixth bedroom suite and loft.

Interior features include gourmet kitchens, interior laundry rooms, and master suites with walk-in closets, and upscale bathrooms. Upgrade options include a wine cellar and chiller, warming drawers, double ovens, built-in media cabinets and closet organizers.

The first of the community's 221 homes are expected to be inhabited in February. It is being constructed and released in six separate phases, with project completion expected in two to three years, Laird said.

Currently, Cheyenne is in phase one, which constitutes 37 homes and the eight model homes, though an additional eight homes from phase two have already been released, Laird said. So far, 32 of the homes have been sold.

Cheyenne's sales center, located at 7065 Shelton Lane, is open from 10 a.m. to 5 p.m. Tuesdays through Sundays, and 10 a.m. to 2 p.m. Mondays. Call 455-7128 for more information.

Amanda Janis can be reached at business@thereporter.com.

Thursday, December 28, 2006

Vallejo's Progress in 2006 Matter of Perception

Vallejo's Progress in 2006 Matter of Perception
By Chris G. Denina, Times-Herald staff writer
Vallejo Times Herald

Some could say 2006 was a year of setbacks for Vallejo.

Local groups sued over controversial development projects. The city made millions in budget cuts. And residents were saddled with higher bus and ferry fares.

Or some could say 2006 was the year Vallejo finally took care of these problems.

Opposition groups reached settlements so developments could move forward. The city avoided layoffs and took steps to curbing future deficits. And by raising transit fares the city's transportation fund is climbing its way out of debt.

It all depends on how you look at it.

--------------------------------------------------------------------------------

Budget cuts

At the start of the year, Vallejo City Hall lacked a leader.

Former City Manager Roger Kemp resigned after he was ousted in November 2005, reportedly over his inability to reopen a controversial firefighters union contract.

That same contract had plagued the city for years, as Vallejo officials kept deferring union raises for short-term savings. But in the long term, the raises kept coming back bigger, pushing the city into the red. Those raises were expected to reach about $8 million by next fiscal year - more than Vallejo could afford, city officials said.

The city hired John Thompson as interim city manager to fill in until a more permanent replacement could be hired. Thompson started work Jan. 30. For much of the year, he worked on reopening that firefighters union contract. The city and union ultimately failed to reach a deal.

During those talks, the firefighters union brought up the idea of the city paying the legal fees for a failed defamation suit filed by the union president against past and present city officials and a city employee. A judge ruled against the controversial lawsuit this year.

Instead going ahead with a plan to defer raises again, the City Council chose to take a stand against the union and initiate budget cuts, such as slashing positions in city departments including fire.

Those budget reductions include cutting two firefighters from Marin Street's Station 21. But those cuts may get cut themselves, since the firefighters union is seeking to challenge the cuts through a process called binding arbitration. That's when a third party decides whether to go ahead with the cuts.

Other cuts include replacing a police lieutenant and sergeant with a patrol officer, plus cuts at City Hall including a full-time city spokesperson and three public works maintenance positions.

--------------------------------------------------------------------------------

Raising rates

The council also took a stand against money-losing city services.

Vallejo officials considered hiring a company to run the city's cash-strapped marina. For years, the marina has lost money. But in 2006, the council took steps to bring it back into the black, including raising rates.

The council also took a look at its money-losing transportation fund. The council opted to raise bus, ferry and shuttle fares to curb the long-standing deficit, which was only hurt by the year's rising fuel prices. Routes with fewer riders also were axed to cut costs.

But the city had to take a loss when it came to missing ferry ticket revenues. The owners of Muggs Coffee Emporium agreed to a repayment plan for unpaid ferry revenue, but under the plan the city is unlikely to recoup its losses.

The city's garbage franchise wasn't losing money, but officials chose to raise rates to make what they said were much-needed improvements. Next year, residents will be able to tote their trash to the curb using roller carts, paid for with the fee increase.

--------------------------------------------------------------------------------

New manager, old problems

The council hired Joseph Tanner to start as Vallejo's new City Hall chief Jan. 8. He'll find his staff has been cut and city services reduced. But he'll also find that some problems the city faced in 2006 have been resolved.

Many controversial development projects in Vallejo were sidelined by legal challenges. But many parties were able to reach settlements in 2006 so the projects could move forward.

A waterfront renewal project was tied up as a coalition fought for changes to the plan, seeking concessions like more open space. With a deal signed, Vallejo's waterfront developer can now proceed with his plans to build projects including housing, stores and restaurants along Mare Island Way.

Some residents challenged a housing project called Bordoni Ranch, saying the proposal to build hundreds of homes at the Vallejo-Benicia border would strain Vallejo municipal services. The developer made changes to his plan and the group settled its case, allowing the project to continue.

But not all projects end in a settlement.

Homeowners on Mare Island fought to stop the reopening of the former naval shipyard's dredge ponds. A developer wanted to reuse the ponds to store mud dredged from local waterways. Residents raised such a stink, raising concerns about such issues as the smell of dredged materials, that the developer backed off and shuttered its proposal.

Some Vallejo residents also fought Wal-Mart Stores Inc.'s proposal to build a supercenter on the vacant site of a former Kmart store at Sonoma Boulevard and Redwood Street. The council, however, opted to let the retail giant proceed with its application to build a 24-hour supercenter with a full-service grocery store.

Wal-Mart is paying for economic and environmental studies as part of its application to build the project in the environmentally sensitive area known as White Slough.

--------------------------------------------------------------------------------

New projects

After years of seeking a developer to renew Mare Island's north end, city officials may have found a group to get it done. Touro University, which already has a campus on the old base, is working on a proposal to build a university village including student housing, bookstores and restaurants, plus a research park and community-and-cultural center.

Mare Island also may get a boost under a proposal to bring the USS Iowa to the old base. A group seeking to open floating museum in Vallejo is awaiting the Navy's decision on whether Vallejo or Stockton will get the World War II battleship.

With all that's happening in Vallejo, Tanner, the new city manager, will have his hands full.

E-mail Chris G. Denina at cdenina@thnewsnet.com or call 553-6835.

Coffee House Sold to Chain

Coffee House Sold to Chain

Vacaville's Perfect Blend Coffee House was recently purchased by Green Beans Coffee Company, and will be renamed Green Beans Coffee Worldcafé.

The company currently operates more than 60 locations on U.S. military bases abroad, and the Perfect Blend acquisition marks the start of the company's domestic expansion. It will open another cafe later this year near Travis Air Force Base.

At 9 a.m. Friday, former owner Stephanie Ladd and Green Beans President Jason Araghi will be at Perfect Blend to meet customers and answer questions about the change of ownership. Araghi will also be at the shop at 3 p.m. on Jan. 4 to meet customers and talk about his plans for the business.

For more information, visit www.greenbeanscoffee.com.

Wednesday, December 27, 2006

CA Governor proposes research and innovation spending - Silicon Valley/San Jose Business Journal:

Silicon Valley/San Jose Business Journal - December 27, 2006
http://sanjose.bizjournals.com/sanjose/stories/2006/12/25/daily21.html

Business News - Local News

Governor proposes research and innovation spending
Silicon Valley/San Jose Business Journal - 2:43 PM PST Wednesday
by Timothy Roberts

Governor Arnold Schwarzenegger wants to spend $95 million from next year's budget on computing, information technology, bioscience and green energy research.

The spending, announced Wednesday under the rubric of the Governor's Research and Innovation Initiative, would provide funding for four projects:

* The Helios Project at the University of California's Lawrence Berkeley National Laboratory would get $30 million from state bonds. The research goal is to develop new energy sources, improve energy conservation and reduce greenhouse gas emissions.
* The Energy Biosciences Institute at the University of California would get $40 million in bond money to be spent at either UC-Berkeley or UC-San Diego if either one wins a worldwide competition for an Energy Biosciences Institute funded by BP plc, the petroleum company. The institute would develop biofuels for use in transportation. BP says it will put an additional $500 million into the project.
* The California Centers for Science and Innovation would get $19.8 million in operating expenses. The centers, which are spread across the UC system, work with private companies to do research in IT, biomedical and nano technology. The California Institute for Quantitative Biomedical Research is based at campuses in San Francisco, Berkeley and Santa Cruz.
* The Petascale Supercomputer project would get $5 million from the state general fund to help the University of California win a competition for $300 million from the National Science Foundation to build the next-generation supercomputer. UC now operates the fastest computer in the world. It does one trillion calculations a second. The next generation would operate 1,000 times faster, doing one quadrillion operations per second, according to Bruce Darling, UC executive vice president.

The new supercomputer will lead to "better earthquake prediction models, improvements to building methods and better drugs through computational chemistry," Mr. Darling said in a conference call set up by the governor's office Wednesday.

In addition to the specific projects that would be funded, the expenditure also has a human objective.

"Part of the goal is to attract and retain the brightest and the most innovative people in the world," said Robert Dynes, UC president.


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Historic Benicia lIndustrial andmark reprieved from demolition

Historic Benicia landmark reprieved from demolition

By Sarah Rohrs/Times-Herald, Vallejo
TheReporter.Com

Article Launched:12/24/2006 07:25:38 AM PST

What is left of a historic Benicia industrial complex has been saved from the wrecking ball for now, but some say time and weather could destroy the old building in the end.

Remains of the Pacific Mail Steamship Co. fell into serious disrepair following an April arson fire. Only three brick walls remain of the original foundry which dates back to the 1850s.

The Historic Preservation Review Commission on Thursday unanimously rejected an application to demolish the structure, a city-designated historic landmark at 702 East H St.

Community Development Director Charlie Knox said Friday the commission found the buildings too significant to be demolished.

"The commission considered the dilapidated state of the building. They took it very seriously, but they also felt this is a major landmark," Knox said. What does remain conveys the former grandeur of the site, he added.

The Pacific Mail Steamship Company is one of the first industrial complexes in California, Benicia historian Bev Phelan said.

Benicia attorney Dana Dean, representing property owner Amports, said the firm is evaluating its options, and has not yet decided to appeal to the Planning Commission.

Amports has already demolished many non-historic buildings inside the former Yuba Manufacturing complex where the foundry is located. Yuba ran a manufacturing complex from 1914 to the 1970s when artists set up studios in vacant buildings.

Rejection of the demolition permit is surprising, Dean said. The city advised Amports to seek permits to demolish Yuba buildings following the April fire.

"We don't question the historic value of the property, but we do question the quality of the property," Dean said, stressing the building's condition could pose serious safety risks.

Ten residents and neighbors appealed to the commission to save the historic structure, despite its dilapidated state, Knox said.

Former Mayor Jerry Hayes, a member of the Benicia Historical Society, said he was grateful commissioners rejected the demolition permit.

"(The buildings) are as significant as the State Capitol building. They were built at the same time the city was trying to bring industry to California. They are significant to the history of Benicia," Hayes said.

Phelan said she favors saving the foundry, but only if it can be saved. "Right now it's dangerous if people sneak in there. It's wide open," she said.

Ideally, a developer would step in with resources necessary to restore the building, Knox said. If nothing is done the foundry would probably deteriorate so much that it could not be saved, he added.

Dean said Amports has no plans for the site, and added no developer is "waiting in the wings" to come in to save the old building.

BENICIA - What is left of a historic industrial complex has been saved from the wrecking ball for now, but some say time and weather could destroy the old building in the end.

Remains of the Pacific Mail Steamship Co. fell into serious disrepair following an April arson-fire. Only three brick walls remain of the original foundry which dates back to the 1850s.

The Historic Preservation Review Commission on Thursday unanimously rejected an application to demolish the structure, a city-designated historic landmark at 702 East H St.

Community Development Director Charlie Knox said Friday the commission found the buildings too significant to be demolished.

"The commission considered the dilapidated state of the building. They took it very seriously, but they also felt this is a major landmark," Knox said. What does remain conveys the former grandeur of the site, he added.

The Pacific Mail Steamship Company is one of the first industrial complexes in California, Benicia historian Bev Phelan said.

Benicia attorney Dana Dean, representing property owner Amports, said the firm is evaluating its options, and has not yet decided to appeal to the Planning Commission.

Amports has already demolished many non-historic buildings inside the former Yuba Manufacturing complex where the foundry is located. Yuba ran a manufacturing complex from 1914 to the 1970s when artists set up studios in vacant buildings.

Rejection of the demolition permit is surprising, Dean said. The city advised Amports to seek permits to demolish Yuba buildings following the April fire.

"We don't question the historic value of the property, but we do question the quality of the property," Dean said, stressing the building's condition could pose serious safety risks.

Ten residents and neighbors appealed to the commission to save the historic structure, despite its dilapidated state, Knox said.

Former Mayor Jerry Hayes, a member of the Benicia Historical Society, said he was grateful commissioners rejected the demolition permit.

"(The buildings) are as significant as the State Capital building. They were built at the same time the city was trying to bring industry to California. They are significant to the history of Benicia," Hayes said.

Phelan said she favors saving the foundry, but only if it can be saved. "Right now it's dangerous if people sneak in there. It's wide open," she said.

Ideally, a developer would step in with resources necessary to restore the building, Knox said. If nothing is done the foundry would probably deteriorate so much that it could not be saved, he added.

Dean said Amports has no plans for the site, and added no developer is "waiting in the wings" to come in to save the old building.

Tuesday, December 26, 2006

Employment Prospects Rosy in County

Employment Prospects Rosy in County
By Amanda Janis/Business Editor

Solano County continues to increase its jobs, as unemployment among residents remains low, according to the data released Friday by the state's Employment Development Department.

Approximately 600 jobs were added in the county last month, bringing the total number to 134,500. Since November of last year, the EDD reported, 3,400 local jobs have been added, mostly in the professional, business, educational and health services, and government sectors.

Meanwhile, 4.6 percent of Solano residents were unemployed in November, a slight increase from October's 4.2 percent rate. Within the county, Vaca- ville and Rio Vista had the lowest unemployment rates, each at 3.3 percent.

Mike Palombo, Vaca- ville's economic development manager, praised the city's low level of unemployment, but said it's important to evaluate the types of local jobs available. Many residents commute to larger metropolitan areas because they can't find similar jobs or compensation closer to home, he said.

"Ideally we'd like to have enough jobs so that people who commute out of the area each day can find equivalent employment here in the community," he said. "We're still trying to create opportunities for everybody."

Amanda Janis can be reached at business@thereporter.com.

Mini Mansions

Mini Mansions
Large, Luxury Homes Debut in Vacaville
By Amanda Janis/Business Editor



All eight models at D.R. Horton's Cheyenne development will be open for the first time this...

Upscale subdivisions continue to proliferate in Vacaville, as D.R. Horton's Cheyenne community opens all eight of its model homes to the public this weekend. Located amid Browns Valley's hills, the development offers single- and two-story homes ranging in size from 2,753 square feet to 4,312 square feet, with price tags starting in the mid $700,000 range.

"It's really a diverse neighborhood, with lots of different architectural styles," said Steve Laird, sales representative for D.R. Horton. Exterior designs call on French Provincial, Spanish and Craftsman influences.

And Laird added, homes are on quarter-acre lots and larger.

"There's not many home builders that put homes on quarter-acre home sites and (offer) single stories of up to nearly 3,000 square feet," he said.

The basic floor plans are:

• Residence One, a single-story, is approximately 2,909 to 2,951 square feet, with four bedrooms, four baths, an office and three-car tandem garage.

• Residence Two, a single-story home of approximately 2,775 square feet, with four bedrooms, three baths, an optional office and three-car garage.

• Residence Three, a single-story, numbers approximately 2,929 square feet, and has three bedrooms, three baths, an office, a three-car tandem garage and optional fourth bedroom or retreat.

• Residence Four is a two-story home that ranges from 3,248 square feet to 3,898 square feet; it has four bedrooms, three and one-half baths, a den and three-car detached garage. There are options for a fifth bedroom and suite, fourth bathroom, loft, and carriage unit above the garage.

• Residence Five, a two-story home that's between 3,510 square feet and 3,808 square feet, boasts five bedrooms, four and one-half baths, a three-car garage and optional loft or bonus room.

• Residence Six is approximately 3,655 square feet arranged over two stories. It has four bedrooms, three and one-half baths, a four-car tandem garage and optional loft.

• Residence Seven, a two-story home, numbers approximately 4,213 square feet to 4,242 square feet. It has five bedrooms, four and one-half baths, two lofts, a three-car tandem garage and options for a bonus room, sixth bedroom and retreat. A variation of this plan includes a balcony.

• Residence Eight, is a two-story, five bedroom, three and one-half bath home that is approximately 4,312 square feet. It also has an office, retreat, four-car tandem garage with workshop, and an optional sixth bedroom suite and loft.

Interior features include gourmet kitchens, interior laundry rooms, and master suites with walk-in closets, and upscale bathrooms. Upgrade options include a wine cellar and chiller, warming drawers, double ovens, built-in media cabinets and closet organizers.

The first of the community's 221 homes are expected to be inhabited in February. It is being constructed and released in six separate phases, with project completion expected in two to three years, Laird said.

Currently, Cheyenne is in phase one, which constitutes 37 homes and the eight model homes, though an additional eight homes from phase two have already been released, Laird said. So far, 32 of the homes have been sold.

Cheyenne's sales center, located at 7065 Shelton Lane, is open from 10 a.m. to 5 p.m. Tuesdays through Sundays, and 10 a.m. to 2 p.m. Mondays. Call 455-7128 for more information.

Amanda Janis can be reached at business@thereporter.com.

Saturday, December 23, 2006

East Bay Business Times: East Bay Business Pulse Surveys What's the forecast for your business?

East Bay Business Times: East Bay Business Pulse Surveys: "SURVEY QUESTION:
What's the forecast for your business?
Will 2007 be a better year for your business than 2006 was?

Yes
79%

No
11%

Don't know
8%
"

Sacramento Region still adding jobs - Sacramento Business Journal:

Sacramento Business Journal - December 22, 2006
http://sacramento.bizjournals.com/sacramento/stories/2006/12/18/daily45.html

Business News - Local News
Business Pulse Survey:
Should carpool lanes be added to Highway 50?
Region still adding jobs
Sacramento Business Journal - 12:10 PM PST Friday

The Sacramento area added an estimated 1,800 wage and salary jobs in November, the same as the previous month, but the local jobless rate still edged upward, the state Employment Development Department reported Friday.

The local jobless rate, before adjustments for seasonal variations such as holiday retail hiring, was 4.3 percent for November in the four-county capital area, improved from 4.5 percent in November 2005 but up from the 3.9 percent in October. The equivalent unadjusted November 2006 figures were 4.5 percent for California and 4.3 percent for the United States.

The seasonal slowdown cut some 1,300 construction jobs and 1,000 farm jobs from the total of 913,900 jobs. But those declines were offset by gains of 2,100 retail jobs and 700 leisure and hospitality jobs, reflecting the openings of ski resorts and associated businesses. The month also saw a gain of 1,100 education jobs in the region, largely at local districts. Manufacturing slipped by 500 jobs.

From November 2005 to last month, the region added 13,300 jobs, with 5,100 of them in the government sector.

State payrolls grew more than local education, EDD noted, reflecting a reversal of the pattern since budget woes prompted work force reductions starting in 2001, "as agencies fill vacant positions and replace retiring baby boomers."

Other growth came in leisure and hospitality (4,300 jobs) and professional and business services (3,400 jobs).

The soft housing market cut into job growth year-over-year, with declines on 1,000 construction jobs and 400 jobs in financial services.

From October 2005 to October 2006, the region had added 15,800 jobs.

Unadjusted jobless rates for the month were 3.7 percent in Placer County, 4.1 percent in El Dorado County, 4.4 percent in Sacramento County (the most populous by far in the region) and 5.2 percent in Yolo County.

Statewide, the unemployment rate was 4.6 percent after adjustments for seasonal variation. That's improved from 5.1 percent a year earlier, but slightly up from 4.5 percent in October.

The state added an estimated 15,900 jobs for the month to reach 15,070,600. Revised figures showed the state added 10.600 jobs in October. From November 2005 to November 2006, the state added an estimated 156,600 non-farm payroll jobs, an increase of 1.1 percent. The biggest gains were in professional and business services, up 46,400 jobs; construction employment saw the biggest drop, with 10,400 fewer jobs.


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Valley unemployment ticks up, but below state level - Silicon Valley/San Jose Business Journal:

Silicon Valley/San Jose Business Journal - December 22, 2006
http://sanjose.bizjournals.com/sanjose/stories/2006/12/18/daily78.html

Business News - Local News
Business Pulse Survey:
What was the most important Silicon Valley business story this year?
Valley unemployment ticks up, but below state level
Silicon Valley/San Jose Business Journal - 12:48 PM PST Friday

The unemployment rate in the Silicon Valley was 4.5 percent in November 2006, up from 4.2 percent in October but below the year-ago's 5.1 percent, according to a report released Friday.

The latest figures from California's Employment Development Department show that unemployment in the San Jose-Sunnyvale-Santa Clara metropolitan area was slightly under the state's 4.6 percent and above the nation's 4.3 percent during the same period.

In San Benito County there were 23,500 people employed out of a possible work force of 24,900, for a 5.7 percent unemployment rate. That compares to last year's 6.7 percent rate and last month's 4.8 percent.

In Santa Cruz County there were 137,200 employed out of a pool of 144,500, for a 5.1 percent rate. That compares to last year's 5.1 percent rate and last month's 4.1 percent.

In Monterey County, there were 193,500 employed out of a possible work force of 205,600, for a 5.9 percent unemployment rate. That compares to the year-ago's 6.4 percent and last month's 4.5 percent.

In the Silicon Valley, professional and business services expanded by 3,100 jobs over the year. Computer systems design and related services gained 1,400 jobs, with other job additions scattered throughout the sector.

Leisure and hospitality gained 2,600 jobs, primarily in food services and drinking places.

Trade, transportation and utilities added 2,200 jobs, while educational and health services payrolls grew by 1,800 jobs from last November.

The information sector posted a net gain of 1,200 jobs, adding jobs on a year-over basis for the 33rd consecutive month.


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Pentagon purchasing 10 more C-17s

Pentagon purchasing more C-17s
By Robin Miller/City Editor
TheReporter.Com
Article Launched:12/22/2006 06:17:57 AM PST
The U.S. government will purchase 10 more C-17 aircraft during the next few years, but how many of those planes might come to Travis Air Force Base is not yet known.

The Pentagon announced earlier this week that it would award a $2 billion contract to aircraft manufacturer Boeing for the 10 additional Globemaster III cargo jets.

According to media reports Boeing believes the additional orders coupled with current commitments will keep the company's C-17 production line in Long Beach running until late 2009.

The purchase adds to the 180 C-17 aircraft bought by the Air Force.

Travis is scheduled to receive 13 of the transport airplanes during the next several years. Its first - dubbed the "Spirit of Solano" - arrived in August. The base received its sixth C-17 on Wednesday.

But Pentagon and Air Force officials did not indicate where the additional 10 aircraft will be headed.

"It is too early in the process to be able to say if any of those would come to Travis," said Lt. Lindsay Hahn, a base spokeswoman.

In its mobility mission, Travis supports strategic airlifts that send troops, weaponry and supplies to military theaters around the globe.

The Globemaster III can carry up to 500,000 pounds - and transports everything from M-1 Abrams tanks and Bradley Fighting Vehicles to war-wounded troops. The aircraft, described as agile cargo haulers, provide the "third weapon" in Travis' arsenal, along with the massive C-5 Galaxy and the KC-10 re-fueling aircraft.

Boeing has been lobbying to sell as many as 40 more C-17s, citing the plane's high usage in Iraq and Afghanistan. It has previously warned that its Long Beach assembly plant might close after 2008 without additional orders.

The Air Force had placed a cap at 180 C-17s due to budget constraints. The last jet under that cap was scheduled to be completed in 2008.

Robin Miller can be reached at citydesk@thereporter.com.

The Reporter - Solano's on the list

The Reporter - Solano's on the list: "Solano's on the list
But highway projects will be incomplete
Article Launched: 12/22/2006 06:17:56 AM PST

A new list of highway projects in line for precious few taxpayer dollars surfaced this week, lifting hopes that Solano County's worsening transportation system might get some relief.

It was good news, to be sure. But it is far from assured that state money will be allocated to begin to fix the Interstate 80 and I-680 interchange, to widen Highway 12 through Jameson Canyon, or to lessen the traffic impact of the truck scales on I-80 at Cordelia.

The list includes more projects than there is money available for. And while the interchange project seems high among everyone's priorities, the Jameson Canyon safety improvements and the truck scales are precarious, at best.

The Metropolitan Transportation Commission will finalize the list on Jan. 10. Then, on Feb. 28, the California Transportation Commission will decide which projects statewide will get funds from voter-approved Proposi-tion 1B, which created a $20 billion pie.

The three local projects, limited as they are, are supported by the Metropolitan Transportation Commission staff and by Caltrans.

Relocating the truck scales on one side of I-80 is on a separate list of recommendations for funds from a different coffer. It's a smaller pool of money and a more competitive pr"

Los Angeles Times: Small ports also benefit as global trade swells

Benicia, located in Solano County has a privately own small port operated by Amports (http://www.amports.com/prod04.htm)

latimes.com
http://www.latimes.com/business/la-fi-ports22dec22,1,6619064.story?coll=la-headlines-business
Small ports also benefit as global trade swells
In addition to giants L.A. and Long Beach, niche harbors in the state see business boom.
By Ronald D. White
Times Staff Writer

December 22, 2006

A rising tide lifts all ports: The continuing global trade boom, which has produced record cargo traffic this year in Los Angeles and Long Beach, has spread to smaller harbors across California.

The upturn in business stretches from San Diego, which has seen freight volume rise 28% in the last fiscal year; to Port Hueneme in Ventura County, which has prospered by specializing in fresh fruit, new autos and other profitable niche categories; and to San Francisco and Sacramento, which have reorganized their port operations to accommodate changing customer demands.

For many of the ports, the key has been to present themselves as alternatives to Los Angeles and Long Beach, the bulk of whose business is in moving the massive cargo containers that carry tools, toys, electronics and all manner of relatively small goods across the Pacific.

"It's been another banner year for us," said Port Hueneme Harbor Commissioner Ray Fosse, whose facility moved 1.3 million metric tons of goods during the fiscal year that ended in June, or 9% more than the previous record volume in fiscal 2005. This year, it is again on a record pace.

"With the major ports going with containers as much as they can, customers are looking for a place where they won't get chased out and where they become very big fish in a much smaller pond," Fosse said. "And with the expanding economy there is just more and more demand out there for ports access."

L.A. and Long Beach, which together constitute the nation's largest port complex, have continued to lead the way this year.

Through November, the Port of Los Angeles handled nearly 7.8 million containers, eclipsing the record of 7.5 million set in 2005 with another month still to go and extending its streak to 12 straight years of cargo gains. No. 2 Long Beach moved 6.72 million containers by the end of November, already beating the 2005 record of 6.71 million.

The Marine Exchange of Southern California, which tracks vessel movements at the L.A.-Long Beach complex, said a record number of ships would be calling at the ports this year.

Don Snyder, the Port of Long Beach's director of trade relations, said the numbers were also driven by a newer class of vessels capable of carrying 8,000 or more containers, compared with the 5,000 to 6,000 carried by older ships.

"We will continue to attract them as long as we can handle them without a significant amount of congestion," Snyder said of the larger ships.

The expansion continued far beyond Southern California, spreading business to smaller harbors.

San Diego and Port Hueneme are enjoying record cargo booms in so-called break bulk — cargo that doesn't fit into a container.

In San Diego, which has tapped business that used to enter and leave the U.S. through Los Angeles and Long Beach, the cargo includes fresh bananas, pineapples and melons and construction materials such as cement and lumber.

But it's the number of autos entering the country through San Diego that has increased most dramatically, to 500,000 this year from 30,000 in 1990.

Total cargo has increased by 95% since 2003, said Ron Popham, senior director of the port's maritime division.

"We believe it will continue in 2007," he said of the growing volume, "and we are predicting 4 million metric tons next year."

Oakland is running more than 6% ahead of 2005's record of 2.3 million containers and is set to become the third-largest transcontinental gateway for goods moving throughout the U.S., behind Los Angeles-Long Beach and Tacoma-Seattle.

The port continues to dredge its ship channels to 50 feet, deep enough to accept fully loaded 8,000-container vessels, and it has acquired the old Oakland Navy base for use as a rail facility. That is considered a crucial step as the port takes on more customers seeking to ship goods beyond the Bay Area.

"That will allow Northern California to become an integral gateway to the rest of the U.S.," said Wilson Lacey, maritime director for the Port of Oakland. And what Los Angeles and Long Beach have done in terms of spreading business to neighboring ports, Oakland is also doing.

San Francisco, which long ago lost its ranking as the West Coast's busiest port, has rebounded by concentrating on products such as steel in the form of rebar and coils for building, road and bridge construction. San Francisco's cargo business has grown to 260,000 metric tons this year from 98,000 in 2003.

The port is building an on-dock rail link to reduce truck traffic and speed deliveries.

"It turned out to be a very good move for us," said Jill Simpson-Rodby, maritime marketing manager for the Port of San Francisco. "Now we think we are one of the best break-bulk ports on the West Coast."

The biggest port comeback story is Sacramento, which was on the verge of filing for bankruptcy protection 18 months ago.

Sacramento has shifted from being a so-called operating port, which hired its own workers to run the facility, to a landlord port that negotiates leases for customers that use their own employees. The port hired a respected terminal operator, SSA Marine Inc. of Seattle, to run its facilities, and it drew businesses that were having difficulty finding space at other ports.

It has landed two new tenants, Mexican cement giant Cemex and A&A Ready Mixed Concrete Inc. of Newport Beach, which have contracts to move a total of 2.8 million metric tons of concrete. That will virtually assure that the port will move more cargo this year than it has since 1990, its biggest year at 1.4 million metric tons.

"It's a huge deal for us. Before, we were still climbing out of the red ink," port manager Mike Luken said. "This will help put us back into the black."

Experts predict continuing gains at West Coast ports.

"The start of 2007 will show slow monthly growth compared with the same months of 2006," business research firm Global Insight reported in its monthly analysis of U.S. port performance, "although still at record levels for the region."

*

ron.white@latimes.com



Copyright 2006 Los Angeles Times | Privacy Policy | Terms of Service

Los Angeles Times: Drop in home sales is seen slowing in '07

latimes.com
http://www.latimes.com/services/site/premium/access-registered.intercept
Drop in home sales is seen slowing in '07
Realtors report a steady pace of transactions in the state since July. More analysts are optimistic.
By Annette Haddad
Times Staff Writer

December 22, 2006

California's housing market may be nearing a bottom after months of plunging sales, the state's chief real estate brokers group said Thursday.

Since July, statewide sales of previously owned homes have held steady at an annual rate of about 450,000 units, data from the California Assn. of Realtors showed. Although that is a 25% drop from last year's record pace of 600,000, the fact that it has remained constant for nearly half a year bodes well for the market, analysts said.

"We are seeing some stability," said Robert Kleinhenz, one of the group's economists. "Whether it carries over into 2007 remains to be seen, but there's a good chance that the market could do better."

The real estate group is forecasting a 7% decline in home sales next year, a considerable improvement from this year's 23% drop.

Similar optimism was voiced Thursday by economists for three of the biggest industry lobbying groups. They see home sales bottoming in the current quarter and picking up in 2007.

However, after three years of record sales, the slowdown will continue to be a drag on the nation's economy until at least the middle of next year, they said.

"A lot happened in that boom and we have some paying back to do yet," said David Seiders, chief economist for the National Assn. of Home Builders. He sees housing starts declining for another year as supply evens out with demand.

Although it's not surprising that the Realtors and other real estate trade groups are optimistic, given their missions as industry boosters, a growing number of independent analysts have also suggested that the housing market is nearing a bottom.

Analysts have been cheered somewhat by positive developments in the current quarter. Inventories of unsold new and existing homes have ticked down slightly from the summer, and demand appears to have picked up as interest rates have stabilized.

In November, the statewide median price of an existing single-family home was $555,290, up 1.4% from a year earlier and 0.7% higher than in October, the California Assn. of Realtors said.

Kleinhenz predicts that home prices will increase 6.5% to 7% this year from 2005 and may drop 2% in 2007. Areas seeing a lot of new-home building — such as Sacramento, San Diego and parts of the Inland Empire as well as the high- and low-desert region — are expected to see more price declines over the next few months.

"While we are seeing some markets decline, it doesn't appear that we are seeing a free fall in pricing," Kleinhenz said.

The big wild card in 2007 will be how many homeowners decide to sell. If owners rush to market, inventories could balloon, creating more supply than demand and more downward pressure on prices.

But in another sign that the market is starting to stabilize, Kleinhenz said, over the last six months sellers "have become more attuned to the market" and are pricing their properties accordingly.

In April, the median sale price of an existing California home was 10% lower than the original list price. By November, that gap had closed to nearly zero, he said.

*

annette.haddad@latimes.com



Copyright 2006 Los Angeles Times | Privacy Policy | Terms of Service

First 5 Solano Children and Families Commission finalized its strategic plan and dedicated up to $4 million annually

: "

First 5 Solano plans a new five-year strategy
Article Launched:12/22/2006 06:17:56 AM PST
First 5 Solano Children and Families Commission has finalized its strategic plan and dedicated up to $4 million annually over the next five years to support the early development, health and well-being of Solano's youngest children and their families, the commission has announced.

First 5 Solano will offer funding for prenatal services, school readiness, quality childcare, family support services, children's health coverage and early mental health services.

The dedication of funding for a five-year period, the commission said, reflects a long-term commitment to ongoing support of local children's programs.

'We are proud to offer these funds for investing in the future success of Solano's children,' said Jan Maguire, First 5 Solano commission chair. 'The Commission continues to work to use our dollars, not only for direct services but for programs that bring additional funding into the county.'

In 2006, First 5 Solano's $4.5 million investments generated an additional $4 million in state and federal funding for children's health care, healthy pregnancies, parent education, quality childcare, children's mental health services and neighborhood family resource center home-visiting programs.

In January, the First 5 Solano Comm"

New study shows biodiesel will add $24 billion to U.S. economy

New study shows biodiesel will add $24 billion to U.S. economy

Biodiesel creates jobs, boosts farm and rural income

Legend has it that nearly 200 years ago, finding impressive apple trees in Defiance, Ohio, Johnny Appleseed established a nursery business in the rural community.

Today, he would still find apple trees, but he would also find a blooming biodiesel plant. American Ag Fuels is growing its annual biodiesel production from 2 million to 5 million gallons. By the time the plant completes the expansion next March, it will have nearly 20 full-time and eight part-time employees, in addition to boosting business for the local contractors who are involved in the construction.

It's just one example of how the growing biodiesel industry is feeding the U.S. economy through job creation, tax revenues and farm income.

"We decided to expand because frankly we've had trouble keeping up with demand," says American Ag Fuels President Steve Lankenau.

The National Biodiesel Board recently released a new economic study that shows how biodiesel plants are a boon to the U.S. economy as they sprout up across the nation. According to the economic analysis by John M. Urbanchuk of LECG and funded by the soybean checkoff through the United Soybean Board, the aggregate economic benefits of biodiesel include:

--America's biodiesel industry will add $24 billion to the U.S. economy between 2005 and 2015, assuming biodiesel growth reaches 650 million gallons of annual production by 2015.

--Biodiesel production will create a projected 39,102 new jobs in all sectors of the economy.

--Additional tax revenues from biodiesel production will more than pay for the federal tax incentives provided to the industry. It will keep $13.6 billion in America that would otherwise be spent on foreign oil. This total impact of biodiesel on the economy includes the temporary impacts of construction, the permanent impacts of annual production and the direct value of biodiesel and co-products (glycerin).

"Because these plants buy local goods and local services, the second and third-round employment-generating impacts are really significant," Urbanchuk said. "You're looking at a fairly substantial employment-generating impact. Most of these jobs are going to be located in rural communities, and you can't overstate the impact of the biofuels' industry on these rural economies."

The study finds that if 498 of the 650 million gallons of estimated biodiesel demand in 2015 is produced from soybean oil, farmer-level soybean prices will increase nearly 10 percent. Using the U.S. Department of Agriculture's 2006 Long-Term Baseline forecast for soybean prices as a starting point, farmers can expect increased biodiesel demand to increase average soybean prices $0.58 per bushel by 2015.

American Ag's Lankenau says his plant's expansion will be worthwhile investment for his business, and for his community.

"I have to believe that 80 percent of dollars we've spent stay within 150 miles of here," he said, adding that of all the businesses he's run, this is the most fulfilling. "I drive my diesel pickup through our rural area where I see soybeans growing, and it makes me feel good about what I do."

There are 88 plants in the nation producing an estimated 200 to 250 million gallons of biodiesel in 2006. That's triple last year's production of 75 million gallons.

Date: 12/21/06

California adds an above average 15,900 jobs in November

SF Gate Return to regular view
California adds an above average 15,900 jobs in November
- By GARY GENTILE, AP Business Writer
Friday, December 22, 2006

(12-22) 14:21 PST Los Angeles (AP) --

California added 15,900 payroll jobs in November and the gain, though modest, was encouraging as the state and the nation braces for a slower economy in 2007.

Gains were spread across nine industries, with the largest number of jobs, 3,600, added in the information industry, which includes film and television, telecommunications and publishing, the state Employment Development Department said Friday.

California's unemployment rate rose slightly to 4.6 percent in November from 4.5 percent in October. The unemployment rate in November 2005 was 5.1 percent.

Economists said the increase in jobs was higher than expected and welcome, coming as it does in the fourth quarter of the year when economic growth is expected to slow.

"The job gains were distributed over nine of 11 industry sectors," said Howard Roth, chief economist of the California Department of Finance. "It's always good to see it spread around."

Other job categories that saw gains in November were natural resources and mining, professional and business services and government.

Two categories, leisure and hospitality — which includes amusement parks and spectator sporting activities — and "other services" shed a total of 1,600 jobs in November.

The state accounted for 12 percent of the 132,000 payroll jobs added nationwide in November, slightly more than its usual contribution of about 11 percent.

Construction jobs were down in November, compared to the previous month as well as November of last year.

"The housing slowdown is starting to show up," said Jack Kyser, chief economist for the Los Angeles Economic Development Corp.

While film and television jobs increased, especially in Los Angeles County, trouble looms for the industry.

The Writers Guild of America contract with Hollywood studios expires in October and the union has rejected an early start to negotiations.

Contracts with actors and directors are set to expire in 2008.

The number of Californians looking for work in November rose to 824,000, an increase of 30,000 from October. About 289,300 of the job seekers had been laid off, the state said.

The state also revised October payroll job gains to 10,600, an increase of 1,300 jobs from the previously reported total.

In all, about 15 million people held payroll jobs in California in October.

Roth said economists are holding their breath as the new year begins with expectations of slow economic growth.

"It looks like both the U.S. and California economies are going into 2007 with not too much momentum," Roth said.

___

On the Net:

California Employment Development Department:

www.edd.ca.gov


URL: http://sfgate.com/cgi-bin/article.cgi?file=/news/archive/2006/12/22/financial/f142129S67.DTL
©2006 Associated Press

Two North Bay Counties unemployment rates rise slightly

North Bay Business Journal


Dec 22 (18 hours ago)
NORTH BAY BUSINESS JOURNAL
E-mail Express
=======================================

Two North Bay unemployment rates rise slightly

NORTH BAY, Dec. 21, 2006 –There were 2,400 fewer jobs in Sonoma
County in November than a year ago as the unemployment rate inched up
slightly to 3.8 percent. The unemployment rate – a measure of the number
of people actively seeking jobs – also rose slightly in Napa County but
dropped in Marin County, according to the Employment Development
Department.
The biggest drop off in jobs in Sonoma County occurred in trade,
transportation and utilities and education and health services, which
declined by 800 jobs and 500 jobs, respectively. Leisure and hospitality
and construction also suffered losses of 400 jobs and 300, respectively.
Sonoma County had 192,000 jobs in November compared with 194,400 jobs
a year ago. In October, the EDD said Sonoma County had 192,400 jobs, a
decline of 3,100 from a year ago.
The jobless rate in Napa County rose to 3.7 percent in November from
3 percent the previous year. The county gained 1,100 non-farm jobs,
primarily in manufacturing and leisure and hospitality.
In Marin County, the November unemployment rate was 3.4 percent, down
from 3.7 percent last November. Industry-specific figures are not
available for this county.

For more business news, visit http://www.NorthBayBusinessJournal.com

Thursday, December 21, 2006

Sacramento Region fares poorly in forecast for home prices - Sacramento Business Journal:

Region fares poorly in forecast for home prices - Sacramento Business Journal:: "Sacramento Business Journal - December 21, 2006
http://sacramento.bizjournals.com/sacramento/stories/2006/12/18/daily38.html

Business News - Local News
Business Pulse Survey:
Should carpool lanes be added to Highway 50?
Region fares poorly in forecast for home prices
Sacramento Business Journal - 2:40 PM PST Thursday

The Sacramento area housing market will remain one of the coldest in the country next year according to a ranking of the top 100 real estate markets released Thursday. But Stockton will fare even worse.

The Fortune rankings were done by Moody's Economy.com and Fiserv Lending Solutions, a consultant to the banking industry. Sacramento ranked 85th, with the median sales price expected to decline by 3.4 percent. More than half of the U.S. markets are predicted to see price increases.

The report lists the median home price for the Sacramento area as $376,000 in the second quarter of this year, although the analysis did not specify which communities were included in the Sacramento market.

Topping Fortune's list was McAllen, Texas, a border city where home prices are still considered relatively cheap and the median price is $69,000. The predicted rise in prices next year for McAllen is 8.5 percent.

Generally the market is expected "

Report: West Sac home prices fall 26 percent in a year - Sacramento Business Journal:

Report: West Sac home prices fall 26 percent in a year - Sacramento Business Journal:: "Sacramento Business Journal - December 21, 2006
http://sacramento.bizjournals.com/sacramento/stories/2006/12/18/daily36.html

Business News - Local News
Business Pulse Survey:
Should carpool lanes be added to Highway 50?
Report: West Sac home prices fall 26 percent in a year
Sacramento Business Journal - 12:33 PM PST Thursday

Sacramento-area's median home price plummeted and sales tumbled in November from a year earlier, the latest evidence of a struggling real estate market.

Home prices in the four-county region declined 3.9 percent to $365,000 in November compared to a year ago, according to a California Association of Realtors (CAR) report released Thursday. But several markets -- including Elk Grove and West Sacramento -- reported much larger price drops.

Existing-home sales fell 24.5 percent last month in the Sacramento area compared to November 2005, according to the closely watched monthly report. The region's sales drop was one of the largest in the state.

'There is a mixed picture across the state, with more regions reporting year-to-year declines than increases at this point,' said Leslie Appleton-Young, vice president and chief economist for CAR. 'We've seen three or more months of year-to-year price declines in areas where there"

Biotech Firm Gets Rights to Drug

Biotech Firm Gets Rights to Drug
Genentech buying technology for new growth hormone
Marni Leff Kottle, Chronicle Staff Writer


Genentech Inc. reached back to its roots by agreeing to pay as much as $280 million for rights to a growth hormone product being developed by a Massachusetts biotechnology company.

The agreement, announced Wednesday, gives South San Francisco's Genentech access to technology that will allow the company to reformulate its 13-year-old Nutropin growth hormone for less-frequent injections. The product, developed by Altus Pharmaceuticals Inc., is still being tested, and analysts said it may take two years to reach the market.

The deal takes Genentech back 21 years to its first approved drug, a growth hormone that has been replaced by Nutropin. The drug is prescribed mainly for children who aren't producing enough of the hormone to grow at a normal rate, and the eight versions of the medicine available today are typically injected daily. The Altus technology would cut the number of shots to just one per week.

"Less-frequent injections in children is a big deal," said Eric Schmidt, an analyst at Cowen & Co., who rates Genentech shares "neutral" and has an "outperform" rating on Altus. "If it lives up to its potential, it will be a very different product from what's already out there."

Genentech agreed to pay Altus an initial $30 million in cash and stock. The value of the deal could rise to as much as $280 million if certain goals are met and the companies expand development outside of North America.

Nutropin, which Genentech sells only in the United States, had sales of about $370 million last year, Schmidt said. The $2.4 billion market for growth hormones is extremely fragmented. The new product would allow Genentech to capture a bigger piece of the market, boosting annual sales of growth hormone for the company to as much as $800 million, Schmidt said.

Altus has completed the first two phases of tests typically required for regulatory approval. The company plans to begin its final round of testing next year, said spokesman John Jordan.

Trials next year would allow the product to reach the market by 2009, Schmidt said.

The Altus technology involves reformulating growth hormone with microscopic crystals that dissolve in the bloodstream, allowing patients to wait longer between injections.

For Genentech, which had almost $2 billion in sales in the third quarter, growth hormone represents just a tiny fraction of the company's business. Genentech gets most of its revenue from the Rituxan, Avastin and Herceptin cancer drugs.

The deal sends a signal that Genentech is still focused on its smaller businesses, said Christopher Raymond, an analyst at Robert W. Baird & Co.

"The endocrinology business for Genentech has been largely underplayed," said Raymond, who rates the stock "outperform."

"This sends the signal that they intend to keep that business and continue to invest in it."

Genentech has made two other deals involving products that aren't related to cancer treatment. Genentech said in November that it would buy its partner Tanox Inc. to gain full U.S. rights to the Xolair asthma drug that the companies developed and sell together. This month, Genentech agreed to work with AC Immune Ltd., a 3-year-old Swiss company, to develop a drug to treat Alzheimer's disease.

Altus, which has a second product in clinical trials and is still unprofitable, turned to Genentech because of its experience in the growth hormone market, Jordan said. Nutropin was the best-selling growth hormone in the United States last year.

"Genentech pioneered the development of the first recombinant human growth hormone," said Robin Snyder, Genentech spokeswoman.

E-mail Marni Leff Kottle at mkottle@sfchronicle.com.

Easing the Gridlock

Easing the Gridlock
Two Solano Projects Win MTC Backing
By Jennifer Gentile/Staff Writer
TheReporter.Com

Facing stiff competition, Solano County is poised to get a share of nearly $2 billion in state transportation funding, according to a list released Wednesday.
The list includes projects the Metropolitan Transportation Commission staff has recommended to receive a share of funding from Proposition 1B, a voter-approved $20 billion transportation bond. The MTC list was compiled following a call for project proposals in November that yielded 50 requests, according to the commission's Web site.

The bond, includes $4.5 billion to be placed in a Corridor Mobility Improvement Account. Of that amount, $1.8 billion is available to the Bay Area.

Making it through an initial cut were two Solano County projects, including improvements to the Interstate 80, I-680 Inter-change and the widening of State Route 12 at Jameson Canyon. A third project, the relocation of the Cordelia Truck Scales on I-80, has been recommended for another category of Prop 1B funding, for which $2 billion is available statewide.

The MTC - the transportation coordinating, planning and financing agency for the Bay Area - is charged with submitting a final list of project nominations to the California Transportation Commission. That commission will make the final determination about which projects are funded and pare down the list as required, said MTC Commissioner Jim Spering.

As it stands, Spering said, the list contains about $1.9 million worth of improvements.

"I think Solano County is going to do fine," Spering said. "Our projects meet all of the criteria they are looking for." Not only have the projects been recognized as important by the MTC, he said, but also by Caltrans and the Solano Transportation Authority, which helps the chances of making it through the process.

Also optimistic was STA Executive Director Daryl Halls, who said the MTC list is "good news."

"We are pleased our top priorities are being recognized by the MTC," he said.

The requested funding for the truck scales would finance a phase of a project that would relocate them about three-quarters of a mile east of their present location, according to Halls.

"Part of the intent is to have longer (acceleration and deceleration) lanes," Halls said, adding that the present scales "can't keep up with the volume of trucks going through."

The plan for Route 12, between 1-80 in Solano and Route 29 in Napa, is to widen it to four lanes, which Halls said is "a safety issue and a capacity issue."

Halls added that the Prop 1B funds would go toward construction of a phase of that project.

With completion of the Benicia Bridge looming, Spering and Halls stressed the importance of fixing the I-80 and I-680 interchange to the entire region. Halls said the project is in the middle of the environmental review process.

A special MTC meeting is scheduled for Jan. 10, when the final list will be adopted. Find further information at www.mtc.ca.gov. Public comments will be accepted through Jan. 5.

Jennifer Gentile can be reached at vacaville@thereporter.com.

Bay Area, Solano Housing Markets Continue to Decline

Bay Area, Solano Housing Markets Continue to Decline
By Ines Bebea

FAIRFIELD - The housing market continues to cool off compared to sale prices last year - and there are no signs of when a recovery might happen.

For the Bay Area, prices dropped to a five-year low with a 1.4 percent decrease over a year ago, leaving average home sale prices at $616,000 in November, according to the monthly housing report by DataQuick News. In Solano County, prices dropped by 9 percent - the largest drop of any of the nine counties in the region.

"What you are seeing right now is also more sellers willing to negotiate by taking off $30,000 to $50,000 in the closing cost," said Daniel F. Lum, a real estate agent with Gateway Realty in Fairfield. "And in a buyer's market, that means a lot more options."

This time of the year the housing market is also affected by the weather because people prefer to see houses during longer daytime hours and when the weather is nicer, he said.

Other factors are holiday spending and end-of-the-year expenses such as property insurance or loan payments.

Some of the sellers in the market now are people who cannot make the payments on refinanced loans, people relocating because of work and households that went from a two-person income to a one-person income.

"But as far as Solano County is concerned, we get more activity because we are the most affordable out of the nine counties in the Bay Area," he said. "As one of the most rural counties we have a lot of more room to expand and build."

For prospective buyers who start house hunting in San Francisco, for every mile away from the city they can knock off $5,000 to $10,000 in price, Lum said.

With more inventory in the market, it will continue to be a buyer's market until the supply and demand reach a balance or moves in favor of the seller. The extra inventory gives buyers more flexibility and options to make a decision and depending on the seller's motivations to move the property prices may continue to drop.

"What we saw last year were prices that actually stalled," said Lisa Adrian, a real estate agent with ReMax Gold. "Prices will continue to go down until the spring of 2008 for builders and sellers."

Adrian couldn't pinpoint exactly where the falling prices will stop, but said regardless of the current slow market situation the competition to make a deal is still present. The biggest incentives are in luxury homes and deals from builders.

"Nobody knows where the drop will stop, but it is going to continue to go down," she said. "After prices were so high last year, the market will correct itself and that takes time."

The upside to this current market is that sellers will continue to be more aggressive to attract buyers. This is also a plus for first-time buyers because they will see more homes and shop for better deals.

"Winter sales are going to happen," said Adrian. "The market will pick up again but slowly. People are always going to be looking for housing."

Reach Ines Bebea at 427-6934 or ibebea@dailyrepublic.net.

STILL IN DECLINE

Home sale statistics for November:

Home sales Nov. 05 Nov. 06 Median 05 Median 06

San Francisco 594 441 $749,000 $754,000

Solano 685 531 $490,000 $446,000

Bay Area 9,717 7,204 $625,000 $616,000

Source: DataQuick Information Systems

Wednesday, December 20, 2006

CA Workers' comp costs continue downward trend - Sacramento Business Journal:

Workers' comp costs continue downward trend - Sacramento Business Journal:: "Sacramento Business Journal - December 19, 2006
http://sacramento.bizjournals.com/sacramento/stories/2006/12/18/daily18.html

Business News - Local News

Workers' comp costs continue downward trend
Sacramento Business Journal - 2:27 PM PST Tuesday
by Kelly Johnson
Staff writer

California's workers' compensation system is continuing to make strides, an industry trade group said Monday.

California written premium reported for the first nine months of 2006 is estimated to be $12.8 billion, 21 percent below the same period in 2005, according to the Workers' Compensation Insurance Rating Bureau of California. The industry group tracks trends in the mandatory insurance program to assist workers injured on the job and advises the state.

On average, employers paid $3.21 per $100 of payroll for workers' comp coverage in the third quarter, 29 percent below the average rate charged for the second six months of 2005 and 50 percent below the average rate charged in the second six months of 2003, the Rating Bureau found. July 1, 2003 is considered to be the high point for workers' comp system costs, before system reforms began taking effect.

Insurers spent 43 cents on claims for every doll"

Office Complex Gets Big Start

Office Complex Gets Big Start

State Compensation Insurance Fund, a provider of workers compensation insurance, broke ground Thursday on the first phase of its new Vacaville campus, which will be the city's largest office project to date.

Located in the Vaca Valley Business Park, south of Genentech, the project's first phase entails three, two-story buildings, expected to be finished in 2008 and to house approximately 1,200 employees.

When both phases of construction are completed, likely in 2011, the 32-acre site may include up to five buildings totaling 434,375 square feet of office space.

Dixon Puts Biotech in its 'Beaker'

Dixon Puts Biotech in its 'Beaker'
By Melissa Murphy/Staff Writer
TheReporter.Com

Chances of attracting biotechnology to Dixon received a boost Tuesday night with a Planning Commission decision to add appropriate terminology to city zoning ordinances.

"We wanted to be ahead of the curve," said Community Development Director Dave Dowswell. "To be safe and let that particular land use be added. We're really trying to take a proactive approach."

The idea first surfaced earlier this year during debate over a proposed horse racetrack and entertainment facility.

During the recent debate over Ontario, Canada-based Magna Entertainment Corp.'s Dixon Downs racetrack proposal, a number of citizens questioned city leaders as to why Dixon has not yet attracted bioscience businesses such as Genentech or ALZA, located in Vacaville. They argued that such businesses would be much more welcomed to the community than a racetrack.

Dowswell researched what types of businesses would be permitted uses in various zoning districts under current city law. He found that bioscience businesses were not listed as permitted uses in any city zone.

Dowswell decided to add the term "bioscience" as a listed permitted use in the city's light-industrial zone.

Dowswell explained that he had the authority to add the term without approval by the commission, but chose to advise commissioners of his decision. He also will inform the City Council during a meeting in January.

The commission agreed with Dowswell's decision.

In other action, the commission agreed to continue until a date that has yet to be determined, a discussion about the Country Faire Unit 2 Subdivision, which would involve dividing a 2.2-acre parcel into 14 lots for residential use.

Matters relating to an expansion to the Blood Bank Warehouse also will be continued since the applicant was not present during Tuesday's meeting and commissioners still have questions about the project.

Tuesday's meeting was Commissioner Diane Hefner's last. She decided a few months ago to resign her position on the commission to focus more on her job and give time back to herself.

"I'm walking away with a wealth of information," Hefner said. "I have enjoyed this from top to bottom."

Commissioner Dan Ayala gave Hefner a certificate of appreciation for her service on the commission.

"You've been very instrumental in all of our landscaping projects," Ayala said. "You will truly be missed."

Commissioner Yvonne McCluskey agreed.

"You've been a positive influence," she said. "You've been very productive and I'm glad to have had your expertise."

Melissa Murphy can be reached at dixon@thereporter.com.

Economic Development Corp. Works to Build Solano

Economic Development Corp. Works to Build Solano
By Ines Bebea

FAIRFIELD - Bringing new businesses and employers to Solano County is more than a full-time job. It requires endless self-promotion, friendly competition and cooperation to let potential leads know of the benefits of having an office, plant or store in the county.

For Michael S. Ammann, president of the Solano Economic Development Corp., the challenges appear when he has to match the interest of a perspective employer with the needs, wants and availability of a city.

"The most important issue is making sure that the community is ready to welcome the investment," Ammann said. "We don't want a business to open and then go out of business. That doesn't work for anyone."

Getting prospective employers interested in Solano County is a long and slow process where only a fraction of those who show interest commit to a site, Ammann said. A lot of the leg work is done by Ammann, who travels constantly to trade shows and conventions to let companies know about the county.

The membership-based organization has 175 members and brings together the public and private sector.

"Many companies get to hear about Solano EDC through referrals from people we have worked with," Ammann said. "But we also get leads from other local economic development organizations who for whatever reason could not make the deal happen."

A couple of Ammann's most pressing goals are to bring high-paying jobs to the county and decrease the number of residents commuting out of the county for work.

"When you have people work where they live, that also gives them more opportunities to be involved in their community," he said. "Whether it is serving on a board, attending school activities or spending money locally."

He is passionate about Solano County because it can also be marketed as a family oriented community.

"Before all of our new development, people thought of Solano as a short stop between San Francisco and Sacramento," he said. "Now we have a Six Flags in Vallejo, great access to Napa, Walnut Creek, Jelly Belly, fresh produce and family activities."

While the organization doesn't have to create a certain number of companies or jobs each year, he is confident that 2007 will be a good year for the county.

"Presently we have 24 (companies or organizations) who are showing interest," he said. "The economy for California at this time looks promising with all the bio-technology companies in the state and development opportunities."

The surging economies in China and Japan are also a great source of possibilities for the ports in the Bay Area and its surrounding counties. Ammann said.

Reach Ines Bebea at 427-6934 or ibebea@dailyrepublic.net.

Solano Clears First State Bond Hurdle

Solano Clears First State Bond Hurdle
By Barry Eberling

FAIRFIELD - So far, so good in Solano County's quest for state bond money to help fix the interstates 80 and 680 interchange and widen Highway 12 in Jameson Canyon.

The two projects appear on the Metropolitan Transportation Commission staff recommendation list for the bond money. They made the first cut in a competition that has counties all over California vying for a share of a relatively small pot of money.

Also, the projects appear on a draft state Department of Transportation list of recommended projects for the bond money.

"Right now, we're in a good spot," Solano Transportation Authority Executive Director Daryl Halls said Tuesday. "As of today, the best you can be is on both lists."

County Supervisor-elect Jim Spering, the area's MTC representative, said the chances of getting money are far better than a shot-in-the-dark.

"Our project has as good a chance as any other project in the state," Spering said Tuesday.

Voters on Nov. 7 passed Proposition 1B, a $20 million transportation bond. The California Transportation Commission on Feb. 28, 2007, will discuss handing out $4.5 billion for projects that help ease congestion, with $1.8 billion to go to Northern California.

So the competition is on. Bay Area counties alone have come up with about 50 projects totaling more than $4 billion.

The MTC will decide which Bay Area projects are submitted to the state for consideration. Commission staff has come up with a list of recommended projects totaling $1.9 billion.

Included on the list is $200 million for the I-80/I-680 interchange at Cordelia. This would help build a new connection between the two freeways. It's the next phase in renovating an interchange that is the county's biggest traffic bottleneck.

The local stretch of I-80 carries commerce to and from the Bay Area, Spering said. Fixing the interchange is more than a Solano County project, he said.

"The way I read it, it's a high priority for the state," he said.

Fixing the entire interchange will cost far more money, perhaps more than $1 billion. But this next phase could help deal with the additional congestion expected at the interchange when the new Benicia Bridge opens, transportation officials said.

MTC staff recommends that Highway 12 get $107 million so it can be widened to three lanes through Jameson Canyon. The ultimate goal is to widen the road to four lanes. Three lanes would be a first phase. Halls said the extra lane might run westbound.

The MTC board will discuss the draft list today. The board will vote on it on Jan. 10, 2007, and forward it to the state.

Projects funded by this portion of the state bond money must be under construction by 2012, Halls said. Both the interchange improvement and Highway 12 widening can meet that deadline, he said. Environmental and design work should be finished by then.

Also, the MTC recommended list for another pot of Proposition 1B money includes $50 million to help move and renovate the eastbound I-80 truck scale near Cordelia.

Reach Barry Eberling at 425-4646 Ext. 232 or at beberling@dailyrepublic.net.

Travis Expecting Arrival of Sixth C-17 Globemaster Today

Travis Expecting Arrival of Sixth C-17 Globemaster Today
By Ian Thompson



A C-17 Globemaster taxis in front of Travis servicemembers and community members in this file photo. (Photo by Ian Thompson/Daily Republic)

TRAVIS AIR FORCE BASE - The sixth C-17 Globemaster III jet transport to call Travis Air Force Base home is expected to arrive today with a flightline ceremony, the Travis Public Affairs Office announced.

Dubbed the Spirit of the Golden Gate, the C-17 will be flown up from the Boeing aircraft factory in Long Beach by Air Force Reserve Maj. Gen. Allan Poulin.

This is the third such C-17 to be given its own name, preceded by the Spirit of Solano and the Spirit of the Golden Bear which already fly missions out of Travis.

Poulin is expected to hand over the "official keys" to the aircraft to Tech. Sgt. Daniel Taylor of the Air Force Reserve's 945th Aircraft Maintenance Squadron and Staff Sgt. Randy Karels of the 860th Aircraft Maintenance Squadron.

The first of 13 C-17s to be based at Travis arrived Aug. 8. The remainder of the aircraft are expected to arrive during 2007.

The aircraft are being flown by the 21st Airlift Squadron and the Air Force Reserve 301st Airlift Squadron.

Reach Ian Thompson at 427-6976 or at ithompson@dailyrepublic.net.

Monday, December 18, 2006

The Reporter - Financial File - Week of December 17

The Reporter - Financial File - Week of December 17: "Article Launched: 12/17/2006 07:59:49 AM PST

Small business success lauded

Solano College Small Business Development Center consultant Charlie Monahan has been awarded third place in a national client success story contest sponsored by the Association of Small Business Development Centers.

Monahan and his client, Dean Bowen of Net-Flow Corporation, were recognized at the association's annual conference in Houston, Texas.

Bowen has been working with the Solano College SBDC and Napa Valley College SBDC since 2003 and participated in the NxLeveL Entrepreneurial Training Program - an intensive 10-week, 40-hour small business training program specifically designed for business owners who are positioning their business for expansion and future success.

Independent economic impact studies show that existing businesses that participated in the NxLeveL program see a 28 percent increase in sales, and on average, create 1.3 additional jobs within one year of graduation. A third party evaluation showed that firms with less than $200,000 in sales experienced a 200 percent increase in gross sales within the first year of graduating, officials said. Further, of those graduates not already in business, 40 percent go on to start a new venture.

For more information, call 864-3382 or visit www.solanosbdc.org."

School Village Being Planned at Mare Island

School Village Being Planned at Mare Island
Touro University may soon cut a deal with Vallejo to redevelop 191 acres at the former shipyard.
By Chris G. Denina/Times-Herald, Vallejo
TheReporter.Com

As early as next month, Vallejo officials could give Touro University a shot at building a university village at Mare Island's north end, ending confusion over who would revamp the 191 acres and clean up the contamin-ated land.

City staff plan to update the Vallejo City Council on Tuesday about the proposal to enter talks with Touro over the project. The deal could signal the end of master developer Lennar Mare Island LLC's lead role in taking early transfer of the remaining Navy-owned land on the old shipbuilding base.

University officials, who only made a play for the project this summer, are anxious to launch the development project, said Richard Hassel, university vice president of administration.

"All I can tell you is it's been a long time coming from our point of view," Hassel said. "I think the community's going to be very excited as we roll out our plans. It's really going to paint a bright economic future for the entire community."

Under the proposal, Touro would be the fourth company to try to renew the site.

Weston Solution Inc., which a year ago dropped its plans to reopen dredge ponds on Mare Island's west side, will handle the environmental cleanup.

And Lennar, which is developing housing on the east side, will bow out of the project, after nearly two years of unsuccessful negotiations with the city to do the north end project.

The city has been seeking a developer since the base closed in 1996.

Ironically, Weston was the second company to back out of the development project, citing financial issues. Lennar is now the third, after time ran out on its exclusive right to negotiate for the deal.

City officials were considering working with Touro to develop the north end and Lennar to continue working on a deal for the Navy to transfer its remaining property. The Navy still owns about half of Area 1A, which must be transferred before the land can be developed.

The pairing of Touro and Weston erases confusion over who would work with the Navy to take control of the land and oversee the cleanup of such contaminants as lead.

"We think that this approach after that experience is one that is in some ways simpler and that's what we're pursuing," said assistant city manager Craig Whittom, who's also in charge of community development.

Mayor Tony Intintoli Jr. said he's looking forward to hearing the details of the proposal between Touro, Weston and the city on Tuesday. The university village concept is good, he said. "I think it brings to the table something different in terms of a vision."

Dixon Yearns for a Piece of Biotech 'Pie'

Dixon Yearns for a Piece of Biotech 'Pie'
Planners to weigh zoning change in new ploy to attract lifescience firms to Dixon.
By Melissa Murphy/Staff Writer
TheReporter.Com

Biotechnology is booming in Northern Solano County but so far, Dixon hasn't joined the ranks of local cities capitalizing on the trend.

That could change if the Dixon Planning Commission approves a proposed change in city zoning laws Tuesday.

The commission meets at 7 p.m. in the City Council Chamber, 600 West A. St.

On tap for Tuesday is a proposal aimed at attracting bioscience businesses to the city.

The idea first surfaced during the debate over a proposed horse racetrack and entertainment facility earlier this year.

During the recent debate over Ontario, Canada-based Magna Entertainment Corp.'s Dixon Downs racetrack proposal, a number of citizens questioned city leaders on why Dixon has not yet attracted bioscience businesses such as Genentech or ALZA in Vacaville. They argued that such businesses would be much more welcomed to the community than a racetrack.

City staffers researched what types of businesses would be permitted uses in various zoning districts under current city law. What they found was that bioscience businesses were not listed as a permitted use in any city zone. They found the only use that might be considered similar to bioscience is laboratories.

Staff is recommending that the Planning Commission change that situation and add "bioscience" to the permitted uses in the city's light industrial zones.

If they approve the idea, it would go to the City Council at a future hearing.

In other action Tuesday, the Commission will discuss a proposal to divide a more than two-acre parcel into 14 lots in the existing County Faire Subdivision. The change would allow for multiple residential development at the site.

The project is consistent with the zoning ordinance for the area, according to a city staff report. Staff is recommending approval of the subdivision with conditions to address the building setbacks, fencing and potential pollutants.

Also Tuesday, the commission will discuss an expansion of the Blood Bank Warehouse on Business Park Drive.

A staff report explained that Stanley and Edgar Mertz are proposing to construct a 2,400-square-foot addition to expand the existing animal blood bank business.

Melissa Murphy can be reached at dixon@thereporter.com.

Suisun City Eyes Entertainment Changes for '07

Suisun City Eyes Entertainment Changes for '07
By Ian Thompson

SUISUN CITY - Will there be more summer movies at the Harbor Plaza, increased city support of the Saturday crafts markets and another Friday night concert season?

That is what the Suisun City Recreation Department wants the City Council to weigh in on Tuesday night as department head Mick Jessop prepares his department's 2007 event calendar.

These are three possible changes Jessop wants to make in a calendar of events that starts in April with an Easter egg hunt and wraps up with Christmas in Old Town.

The first is bringing back the Harbor Nights concert series for a second season at the Harbor Plaza starting July 13, but offering five free concerts along with three to four ticketed events.

"It is another event that both the community enjoys and puts Suisun City on the map for quality entertainment in a prime location," Jessop wrote in a memo to the City Council.

Under an agreement being worked out with Pepper Belly's owner Jim Ignatieff, the city would manage the free events and Ignatieff would manage the ticketed ones.

Last summer's series went relatively well considering how quickly it was planned and put together, but attendance was below what was expected and the image of the fence surrounding the concert put off residents.

The concerts ended up costing Suisun City $30,145 and Ignatieff $34,439.

Jessop is asking the City Council to agree to pay $33,145 to help put on the 2007 concert series.

The second possible change is a request from Saturday Market promoter Debbie Kiikvee for financial support from the city for the open-air crafts vendor markets she runs on the first Saturday of each month.

Kiikvee's events weren't well attended in 2006 and a drop in interested vendors forced her to run the markets at a financial loss.

Jessop is asking the council for help "to help turn the corner on making this event a mainstay event for the community." The 2007 Saturday markets are expected to run from May through August.

Kiikvee wants assistance in the form of $1,000 per event for advertising and another $300 per event to allow her to spend more time finding vendors, pre-planning the markets and developing themes for each market.

The third is offering a weekly Saturday Night at the Movies that would run for eight Saturday nights starting on July 7 in the Harbor Plaza.

This idea was spurred by the popularity of the 2006 series that offered movies once a month during the summer with support from the Old Town's Business Improvement District.

The Suisun City Council meets at 7 p.m. Tuesday in the Suisun City Council chamber at 701 Civic Center Blvd.

Reach Ian Thompson at 427-6976 or at ithompson@dailyrepublic.net.

At a glance

Who: Suisun City Council

What: The 2007 Recreation Department event calendar

When: 7 p.m. Tuesday

Where: Suisun City Council chamber, 701 Civic Center Blvd.

Info: 421-7300

Poster Child for Base Protection Plans

Poster Child for Base Protection Plans
By Barry Eberling



Fairfield and the county have taken such steps as keeping development from the land near the Travis runways, keeping homes away from areas with high airplane noise and buying the 1,848-acre Wilcox Ranch next to the base. (Photo by Mike McCoy)

FAIRFIELD - Solano County and Fairfield are using textbook methods to protect Travis Air Force Base from closing due to encroachment from new subdivisions.

In fact, they're part of the book. Their efforts are featured in the California Advisory Handbook for Community and Military Compatibility Planning.

But being a poster child for base protection plans isn't enough for some community leaders. Fairfield Mayor Harry Price wants to do still more to help keep Travis off any future federal base closure lists.

"We're not done yet," Price said.

The Governor's Office Of Planning and Research released the manual in February. It is crammed full of suggestions, listing various ways that growing communities can co-exist with military bases that don't want to be crowded.

"California realizes that the military is not only an important part of our past and present; it is also an important part of our future," Gov. Arnold Schwarzenegger wrote at the book's beginning.

The state in 2005 had more than 278,000 people employed by the military and benefited from military expenditures topping $42 billion annually, the book said. But the state's population is expected to grow 50 percent by 2050, when there could be 54.8 million residents, it said. That means expanding cities and military bases could bump up against each other.

Fairfield and Solano County know all about these challenges. Travis Air Force Base employees 7,700 active military and 3,500 civilians. The Travis Regional Armed Forces Committee reports the base's economic impact on the area at more than $1 billion annually.

But the Association of Bay Area Governments expects the county to grow from more than 421,000 people today to 577,000 in 2030. Fairfield subdivisions over the years have grown close to the base.

Fairfield and the county responded by taking such steps as keeping development from the land near the Travis runways, keeping homes away from areas with high airplane noise and buying the 1,848-acre Wilcox Ranch next to the base. The Wilcox ranch is to remain open space unless the base needs the land for expansion.

County Supervisor Mike Reagan said he's heard from Pentagon officials that another federal base closure round could come in 2012. He sees more steps the community can take to protect Travis. He mentioned an idea being used near military bases in Florida and touched on in the state manual.

Many developments must preserve land elsewhere to make up for wetlands and habitat they build on. This is required by state and federal laws protecting endangered species and wetlands.

Florida wants to create its habitat preservation areas under accident and noise zones from military bases, Reagan said. He can see the same things happening locally, with the preserves under Travis flight paths.

This has already begun happening. Some private landowners are turning their property into mitigation banks where developers buy credits for habitat preservation.

Of course, habitat must be present before it can be preserved. That's no problem with Travis. Some of the land near the base has wetlands that can be home to rare creatures such as the vernal pool fairy shrimp.

Price thinks the community can help Travis by improving the roads leading to the south gate of the base. That's where large trucks, many of them from Stockton, bring cargo to the base, he said.

The Solano Transportation Authority, Solano County, Fairfield and Suisun City have begun talks on this project. Improving Petersen Road at the south gate and also improving Canon and North Gate roads at the Travis north gate could cost $5.6 million, a county memorandum said.

Price also wants to reopen the rail line into Travis. Trains could help bring freight to the base, he said.

Then there's an idea that has come up repeatedly over the past few decades - building a new runway along Travis for civilian uses. Such an effort could have ramifications that go beyond Solano County.

San Francisco International Airport has looked at expanding, but that means filling in the San Francisco Bay to create a new runway, Reagan said. The idea came up a few years ago that having commercial cargo traffic go to Travis could relieve air traffic at San Francisco and Oakland airports.

"Then 9-11 happened and traffic dropped off and everything dropped off the screen," Reagan said. "But traffic is now building up to pre-9-11 levels."

William Shea, a former associate administrator for airports with the Federal Aviation Administration, went further in a 2004 editorial in the San Francisco Chronicle. He said a joint-use Travis Air Force Base could serve national and international passenger flights, as well as cargo traffic.

"The base could handle 20 or more 600-passenger aircraft a day," he wrote.

A joint-use venture could help Travis, Reagan said. The base would have another runway to use when one of its existing runways is being repaired. The joint facility could share the costs of air traffic control, fire and crash rescue and maintenance, he said.

The downside is an increase in security exposure for Travis, he said.

Fairfield and Solano County aren't the only ones with an eye on Travis. The Travis Regional Armed Forces Committee brings together local civic and elected leaders to keep abreast on base activities and needs.

Whatever happens next could take time. Fairfield and Solano County didn't complete the protection steps outlines in the state manual overnight. Work started in the mid-1990s and continued into 2002, when the county and city secured the Wilcox Ranch.

"It's the long-range planning the results in a desired effect," Price said.

Reach Barry Eberling at 425-4646 Ext. 232 or at beberling@dailyrepublic.net.

They helped write the book

Fairfield and Solano County are cited in a state handbook for taking the following steps to protect Travis Air Force Base:

-- The Fairfield General Plan restricts development near the Travis Air Force Base runways. It also restricts growth in areas that experience high noise levels from base planes, as well as in areas that could someday experience these noise levels as the base adds missions.

-- Fairfield and Solano County bought 1,848 acres of the Wilcox Ranch near the base. This land is to be built on only if the base needs it to expand.

-- The Solano County Airport Land Use Commission has adopted a plan that restricts growth in areas that experience high aircraft noise. As with the Fairfield General Plan, the commission takes into account potential future Travis missions.

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