Solano Experts give opinions on 2007 residential market

Forecasting the future

Experts give opinions on 2007 market

By Barbara E. Hernandez/Contra Costa Times

Article Launched: 01/13/2007 07:01:15 AM PST

Most residential real estate professionals are calling 2007 a transitional year, for better or worse. While there's some disagreement about what the new year will hold, the only consensus is that it will not be a year of booming appreciation or sales like those seen in the past five years.

The majority also said that home prices will drop slightly in 2007, but sales may stabilize to historically normal levels. Most said that sellers have to be more realistic and buyers should be warned there is no huge decline in prices projected, even by the most objective economists.

Here are some of the outlooks given by several professionals in the residential real estate industry.

Ed Leamer, Director, UCLA Anderson Forecast

Comfortable in the role of real estate agent bugaboo, UCLA Anderson Forecast Director Leamer rarely holds back on bad news. However, Leamer doesn't foresee the residential real estate market changing dramatically in 2007.

"We expect that existing home prices will continue to slide just a little because buyers and sellers are looking in opposite directions," he said.

Leamer said that new homes will fare better in 2007 with more competitive marketing and pricing.

Price appreciation will not be considered normal, meaning 5 or 6 percent a year, but probably closer to 2 or 3 percent, he said. This period could last anywhere from another year to five years.

The problem with home sellers is that many aren't seriously selling, they are testing the market to see if they will get their ideal price, he said. There's no immediate need to sell, so they won't.

He said buyers should also stop thinking that the longer they wait, the better the deal.

"Prices will come down a little, but they will come down so slowly the strategy of waiting and waiting will not work," Leamer said, adding that in the past prices dropped 25 percent - but over five years. "They need to lock in that mortgage rate and stop reading the real estate page."

Bob Dorsett, Broker and Owner, Gateway Realty, Fairfield, Vacaville

Dorsett believes the 2007 residential real estate market will largely mirror that of 2006.

"I think the market we have is the market we're going to have, at least for the first six to nine months," he said.

After that, Dorsett said, there may be a slight up-tick in movement in terms of sales.

"If the sales increase," he added, "the prices will at least stabilize - whether they'll go up or not I'm not prepared to predict."

The sellers concessions and buyers incentives prevalent in 2006 will likely increase for the first nine months of the year, he said.

"It's just going to take greater and greater incentives to sell; we're competing with the new home construction, which will give almost anything to sell houses," Dorsett said.

Robert Kleinhenz, Deputy Chief Economist, California Association of Realtors

"I would be surprised if we saw any huge deterioration in home prices, but I would expect some small declines," Kleinhenz said.

He expects interest rates to stay fairly low throughout the year, a sign the housing market could hold steady or improve. "I would suspect in the second or third quarter the Federal Reserve Bank may cut rates," he said.

Prices won't be languishing into the next decade, Kleinhenz said. "I think if the economy continues to expand and does not head into a recession, we shall see the housing market stabilize in 2007," he said.

Drew Kusnick, Territory President, KB Home South Bay

Kusnick said that he's much more optimistic about the coming year.

The past six weeks have been profitable and he's able to raise prices on new homes after six months of cutting them.

"I think it will be a transitional year," he said. "I think we're seeing prices stabilize right now and seeing more people buying. Now there seems to be some real demand in the marketplace."

The decrease in inventory and more buyers starting to look serious has contributed to this, he said.

"I think we've seen the depths of where we were going to go. I think the key factor is buyer confidence and demand," Kusnick said.

Payam Zamani, Chief Executive Officer, Reply! Inc., San Ramon

Zamani said that he expected to see a lot of changes in 2007.

"While in 2006 we saw a slowdown of sales, we did not see a slowdown in consumer demand," he said. Zamani said that in the last year their Web site from rose from 50,000 to 80,000 consumers per month, so the consumer "demand is there."

However, he expects the market to reach its bottom in 2007. "I don't necessarily see an uptick in 2007, I think it's still too early," he said.

Zamani said he also saw the role of real estate agent changing and having to merge with technology including his company's interactive Web site, Reply.com.

"Brokers are still not that sure if we are their friend or potentially their enemy," he said. "But we represent a more efficient marketing solution for them. . . . I think more will join services like ours."

Business Editor Amanda Janis contributed to this report.

City of Fairfield considers a 'water park-type' community pool

January 14, 2007

A 'water park-type' community pool

City Council to view Allan Witt Park plans at Tuesday meeting

By Ben Antonius

FAIRFIELD - More than three years have passed since Fairfield's only public pool closed and the cost of a replacement has swelled by $7 million, but progress may be made Tuesday when the city unveils its latest design.

The City Council will hear a presentation on the background of the 2003 closure of Allan Witt Park pool, the subsequent process to come up with a replacement and the proposed design of the new pool.

The council will also take a look at a veritable menu of features such as spas, recreational waterfalls and lap lanes they can add to the project - for a price.

If it is approved in its current form, the pool would look less like the rectangular community pools of old and more like a water park.

"In the past . . . pools were built with little entertainment value," wrote Community Services Director John De Lorenzo in his report. "Today's users are looking for excitement, imaginative play opportunities and reasons to remain at the complex for multiple hours."

As designed, the park has a pair of waterslides, a wet play area with water toys, a playground set in ankle-deep water and an all-season glass enclosure around the main pool.

Of course, none of that comes cheap.

The glass enclosure costs $1.4 million and the playground and the wet play area were only added when the city secured a $1.7 million grant. The sampler of optional features includes a spa ($600,000), lazy river ($1.2 million), waterfall ($120,000) and a three-meter diving board ($1.3 million with a 1,200 square-foot pool).

The plans only call for three lap lanes, although De Lorenzo suggested lap swimmers could still go to the pools at Solano Community College and Fairfield and Armijo high schools.

"Our indoor/outdoor activity pool has been designed with the maximum fun factor in mind," he wrote.

The price tag for the project has gone up substantially from the initial $4.9 million estimate, both because plans have expanded and because construction costs have risen while the project idled.

The meeting is a follow-up to a Dec. 5, 2006, discussion when the council declined to vote on the glass enclosure and asked to see more details about the other features they could have at the park.

The glass building would allow the main pool to be used year-round, has retracting ceiling panels for use in favorable weather and is designed to reduce corrosion and condensation problems.

Reach Ben Antonius at 427-6977 or bantonius@dailyrepublic.net.

At a glance

Who: Fairfield City Council

What: Topics include a discussion of the $12.3 million Allan Witt Park pool project.

When: 7 p.m. on Tuesday

Where: Fairfield City Council chamber

Info: 428-7400

Predictions for City of Fairfield projects to watch for in 2007

January 14, 2007

Predictions for projects to watch for in 2007

By Brian Miller and Karl Dumas

A new year always brings an opportunity to think about the future, to ask, "what's coming next?" Which vacant real estate site will be converted next to an inviting "people place?" What historic landmark or aging commercial structure past its prime will be rehabilitated to display new charm and character?

It's almost impossible for us to predict exactly which new real estate concepts will come to fruition in Fairfield during 2007. However, we can predict some of the big projects to watch for in 2007.

We don't need a crystal ball to predict the slowdown in residential construction during 2006 will continue through 2007. While some real estate prognosticators foretell a turnaround in the market, it will take some time for large new residential developments approved in Fairfield during 2005 and 2006 (for example, The Villages at Fairfield and the Garaventa project near the Community College in Cordelia) to begin construction. During 2006, Fairfield issued 229 new housing permits, less than half the average during the last three years. Look for the number of permits issued during 2007 to equal or slightly exceed last years total.

Despite the slowdown, a framework for future residential growth is being laid. The planning process in the proposed Fairfield Train Station area will be completed during 2007, an environmental impact report for the Allan Witt Park project will be finished, and a comprehensive planning project looking at infill development and redevelopment along the West Texas Street/Texas Street/North Texas Street corridor will be well under way.

The commercial market will remain stronger in Fairfield during 2007. With the completion of the 60-room Fairfield Inn & Suites in fall 2006, new hotel development continued to be a strong part of our construction economy last year. Look for two new larger extended-stay hotels totaling over 160 rooms in the Green Valley Corporate Park (near Copart) to open in 2007.

The big question is demand for these rooms absent major new employers in the area. Nonetheless, the city's Economic Development Division gets frequent calls from hotel developers interested in vacant sites for potential hotels. Given Fairfield's location at a transportation node with major highways, a key military base and projected business and residential growth, it is likely someone, somewhere will announce an interest in building a hotel in Fairfield during 2007, although we don't foresee any new projects actually breaking ground.

Green Valley Corporate Park's status as a premiere business park in Solano County will be further strengthened when the hotels open, but it's the office development that is expected to create the buzz during 2007. A 30,000-square-foot speculative office building is currently under construction near Copart. NorthBay Medical Group will begin construction of its new administrative headquarters (68,000 square feet), part of larger planned medical campus that may eventually include a hospital. Kaiser Permanente also owns land there but we don't expect it will make any major development announcement this year.

The Fairfield Auto Mall has shaped up to be the county's top performer and 2007 will see improvements at the northern end (near Home Depot) as the city reconstructs and widens the street and buries the utilities. Fairfield Ford has already opened its new showroom at Chadbourne and Auto Mall Parkway and we predict other major dealerships will be announced in 2007.

Will Wal-Mart begin construction during 2007? That's probably the biggest single question on the 2007 retail scene. Even if construction of the new building doesn't occur in '07, we anticipate the existing buildings will be demolished this year.

Another demolition we foresee this year is the vacant building on the southwest corner of Texas and Jefferson streets (across from Starbucks). This will pave the way for a proposed John Costanzo office/residential/retail building.

Yardbird's vacated its building a couple years ago, and we predict plans will be announced for the space. We expect several smaller tenants will be announced, not a single anchor.

24-Hour Fitness is under construction of its new health club at the mall and we predict there will be an announcement for retail tenants for its current space at Travis Boulevard and North Texas Street. Also, we look for Green Valley Plaza at Interstate 80 and Suisun Valley Road to announce the signing of major tenants for its 43-acre shopping center this year.

In January 2008, we will check in to see if we did OK with our predictions, or if we were really, really wrong.

Economic Notes is an update from Fairfield City Hall written by Brian Miller and Karl Dumas of the Fairfield Planning and Development Department. They can be contacted at 428-7461 or e-mail at kdumas@ci.fairfield.ca.us or bkmiller@ci.fairfield.ca.us.

Unemployment increased in November in Solano County to 4.8%

Unemployment increased in November

FAIRFIELD - The unemployment rate in Solano County increased from 4.2 percent in October to 4.6 percent in November.

According to a report by the Labor Market Information Division of the state Employment Development Department, the unemployment increase was below the estimated 5 percent predicted last year. The unadjusted unemployment rate was slightly higher than what was expected for California at 4.5 percent and still higher than the 4.3 percent expected for the nation in the same period.

New Nut Tree Family Park promotes fun in the cold in Vacaville

January 14, 2007

New Nut Tree Family Park promotes fun in the cold

By Ines Bebea

VACAVILLE - The Nut Tree Family Park in Vacaville will celebrate this weekend's cold weather by offering free coffee, tea and hot chocolate to park visitors.

The global freezing celebration will last through Jan. 21 with many giveaways for visitors wearing colorful ear muffs, scarves and mittens.

The new park offers family friendly entertainment with rides like the Nut Tree Railroad, the Harvest Express Roller Coaster and the Interstate 80 Traffic Jammer Bumper Cars. The park also has a boat pond, bocce courts and a koi-feeding pond. Admission to the park is free.

City of Vallejo Refurbished Empress adds class to downtown entertainment venues

Refurbished Empress adds class

By J.M. Brown/Times-Herald, Vallejo

Article Launched: 01/14/2007 07:33:02 AM PST

Sixty years ago, "everyone who was anyone" in Vallejo went to the movies on Virginia Street.

That's what lifelong Vallejoan Pearl Jones Tranter remembers about Saturday and Sunday nights on the hot strip - home to the Hanlon Theater and its older sister, the Crest Theater, a 1911 vaudeville house.

"I saw a lot of movies, but we also saw a lot of friends," the artist said Friday night as she awaited a hard-hat tour of the restoration under way at the old Crest, which was later renamed the Empress Theatre.

Any longtime Vallejoan can recall with nostalgia how the two theaters marked the center of downtown nightlife before a fire destroyed the Hanlon in 1954 and bad business closed the Crest a decade later.

Hope surged for a downtown renaissance when the Empress opened in 1980, only to fold after the Loma Prieta earthquake a decade later. Attempts to revive it have since failed.

With downtown revitalization slated to get underway, will the Empress really reign again? When it reopens this summer, will it breathe life into downtown the way other refurbished theaters have across America?

After nearly $7 million in restoration and operational costs, Vallejo's business owners, civic leaders and arts patrons - who are pros at coping with redevelopment delay - say "yes." But whether it can anchor Vallejo's vision for a thriving, bustling downtown will depend largely on what its keepers put on stage and screen, they say.

Promising a vibrant mix of movies, live theater and community functions, Gail Manning of the Vallejo Community Arts Foundation, said, "We can be very successful here - it's going to take a few years."

The foundation, which runs the Beaux-arts theater, has hired a new director, Randy Bobst-McKay, who says "film is key" to drumming up business. An entertainment advisory committee will determine "what people want to see in our town," Manning said.

Though it's raised nearly a half-million dollars, the foundation has launched a capital campaign to raise $1.85 million for "bricks and mortar" and operational costs. The foundation must repay the city $3.8 million it anted up for the project, but has the option to later buy the theater.

"It will be huge" and "will get downtown going," said Jim Mitchell, executive director of Vallejo Main Street. "It will take the community a while to figure out it's here and happening."

The foundation hosted a fundraising dinner and tour Friday to show off the luminous results of a year's worth of grueling work to modernize the historic playhouse while preserving its nearly 100-year-old luster.

The theater - which will seat 471 with space for six wheelchairs - is nearly brand new.

Crews reinforced steel throughout the theater and built a new, longer main stage with a sprung floor to support dancing. New staircases behind the stage provide easy access from a green room and dressing room to the orchestra pit two floors down.

Workers performed seismic refurbishing on the theater's signature feature, "the clouds," which are large gold fans that hang from a midnight-blue ceiling and emit a soft amber light from above, with blue and red neon lights underneath.

Original windows above the balcony were restored. Where property caretakers had placed paper over them to block light, there will now be drawn curtains.

To cover a turquoise-white combination, the theater's two main walls were repainted a rich maroon to match the plush, deeply-cushioned, high-back seats.

From there, audiences will view films on a new movie screen supported by a new camera and surround sound system.

Just getting through the door will be a marvel.

Under a new 1950s-style triangle marquis, patrons will pass by the original ticket booth and into a narrow lobby, where the concession stand will be centered with restrooms on either side.

The theater has no bar, but patrons can mingle at intermission or after a show at Baci Restaurante, Lounge and Cafe, a new Italian eatery next door.

Nee Lau, who owns China Wok around the corner, will open the venture with partner Alice Liu next month.

That only leaves the Empress' famous, old-fashioned telephone booth. Until crews can find the right spot for it, it's being stored on Mare Island.

Though Jones Tranter hoped to see it when she took Friday's tour, she was happy just to see the city's dream of a reborn Empress taking life.

"I'm optimistic," she said. "I hope for the best."

To donate to the Vallejo Community Arts Foundation's capital campaign, contact executive director Celeste Smeland at 648-4035. For more information, log on to www.empresstheatre.org

J.M. Brown can be reached at jmbrown@thnewsnet.com.

City of Fairfield Council may award $46 million contract for water treatment

January 15, 2007

Council may award $46 million contract for water treatment

By Barry Eberling

FAIRFIELD - The Fairfield City Council on Tuesday will consider awarding a $46 million contract that could have Waterman water treatment plant renovations under way within months.

Fairfield wants to update the three-decades-old plant and almost double the amount of treated drinking water it can turn out. That would keep pace with the demands of a growing city.

The total costs for the renovation - including engineering and a prior, smaller phase - is about $61 million. That compares to an estimate of $34 million only two years ago.

A major factor in the increase is the building boom going on in China, Assistant Public Works Director for Water Rick Wood said. That's driven up costs for steel, cement and other materials, he said.

"It's not just something we've had happen in Fairfield," Wood said. "It's all over."

The council meets at 7 p.m. in its chamber at 1000 Webster St.

City staff recommended the council award the construction contract to Nebraska-based Kiewit Pacific, even though Overaa Construction of Richmond submitted a slightly lower bid.

Overaa's bid had deficiencies, according to a city memorandum. The company failed to fill out all sections or list key subcontractors and financial references, it said.

That is in addition to a question of whether Overaa submitted its bid after the 2 p.m. deadline on Dec. 12, 2006, albeit by a matter of seconds.

The Kiewit Pacific bid is 19 percent less than the city's estimate of $57 million for the work. Wood attributed this in part to having three serious bidders.

As a result, Fairfield has more money to put into other water projects. The city had concluded it would have to delay $62 million in projects because of lack of money.

Now the city can continue work on its East-West water line. This line is to ultimately bring Sacramento-San Joaquin Delta water treated at the North Bay water treatment plant to the Cordelia Villages area and Green Valley. The city presently can serve these areas only with Lake Berryessa water.

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

At a glance

Who: Fairfield City Council

What: Award $46 million bid for Waterman water plant renovations

When: Tuesday, 7 p.m.

Where: City Council chamber, 1000 Webster St.

Info: 428-7485

STA whittles down list of transportation priorities

STA whittles down list of priorities

By Erin Pursell//Staff Writer

Article Launched: 01/15/2007 06:17:07 AM PST

The Solano Transportation Authority is closer to programming highway, reliever routes and transit projects that will receive an upcoming $17 million in state funding.

During an update Wednesday regarding Solano's priorities for State Transportation Improvement Project funding, the STA board considered options for the first chunk of the $46 million that officials expect the county will receive through 2010.

"We've now whittled it down to a smaller list," said Daryl Halls, STA executive director.

The board already has approved a two-tiered list of projects that will be eligible for the STIP funds, including:

• environmental review and design for local Interstate 80 High Occupancy Vehicle lanes;

• environmental review and design for a Highway 12 Jameson Canyon project;

• preliminary engineering and environmental review for the Dixon Multi-Modal Transportation center;

• construction of the Vallejo Ferry Maintenance Station;

• construction of projects along the Jepson Parkway, extending from Suisun City to Fairfield and into Vacaville; and,

• construction of a Fairfield-Vacaville train station.

The STA board will select some combination - to total $17 million - of the projects in February, after which the list will be forwarded to the Metropolitan Transportation Commission, Halls said.

"It's 95 percent sure it's going to happen and then the money becomes available in future years," he said, regarding whether the projects definitely will secure funding through the process.

In the meantime, STA will continue this month to lay out details of each of the projects. The state dollars cover a significant portion of estimated costs, while the remainder is paid through a combination of regional and local funds, as dictated by STA policy.

Projects that do not make it onto the most immediate list can still be programmed for STIP funding in the fall - when the next $14 million becomes available - or for future funding cycles, Halls added.

Many of these and other recommendations for transportation improvements throughout the county were identified in the 2004 I-80, I-680 and I-780 Major Investment Study and the 2001 Highway 12 Major Investment Study.

In other action, the STA board elected Vallejo Mayor Anthony Intintoli to serve as chairman and Benicia Mayor Steve Messina to serve as vice chairman.

Erin Pursell can be reached at county@thereporter.com.

Venture-capital funding best in five years - Sacramento Business Journal:

Venture-capital funding best in five years - Sacramento Business Journal:: "Venture-capital funding best in five years
Sacramento Business Journal - 2:53 PM PST Tuesday
by Charlotte Business Journal

Venture-capital fund raising in the United States reached its highest level in five years in 2006, despite a fourth-quarter slowdown.

In 2006, 200 venture-capital funds raised a total of almost $28.6 billion, compared with the 214 funds that raised $28 billion in 2005, according to data released Tuesday by Thomson Financial and the National Venture Capital Association.

The fourth quarter saw a considerable slowdown, though, with 37 venture-capital funds raising $2.83 billion, down from the $5.43 billion raised in 66 funds in the third quarter and the $13.8 billion raised by 66 funds in the second quarter.

The report didn't include breakdowns by regions or states. (However, with the location of 40% of all VC Funds in the Bay Area you can assume that Northern CAL got a fair share of this funding raising $2.83 billion)

NVCA President Mark Heesen said the decline in private-equity fund raising in the fourth quarter was expected. 'On the venture side, we are coming to the end of the current fund-raising cycle as most firms are now turning their attention to investing the funds raised in the last three years,' Heesen said."

Mega service station on acaville Planning Commission horizon

Mega service station on city's horizon

By Jennifer Gentile//Staff Writer

Article Launched: 01/16/2007 06:38:52 AM PST

After putting off the item since October, the Vacaville Planning Commission finally will hear a proposal tonight for an eight-pump service station at Peabody Road and Hume Way.

The proposal for a ARCO/BP station, which includes a 3,600- square-foot convenience store and car wash, would complete the Orchard Supply Hardware Plaza. The plan features access from both Hume Way and Peabody Road.

City staffers are recommending approval of a conditional use permit and affirmation of a past environmental assessment for the project. A conditional use, as explained in a city staff report, is a use that "requires a higher level of review ... to ensure that they will be compatible with surrounding land uses."

The report also notes the Vacaville Police Department opposes the sale of alcohol at the proposed convenience store. Seven other locations reportedly are selling alcohol within a quarter-mile of the site, which is also close to Will C. Wood High School and within a high-crime reporting district.

In its lengthy list of approval conditions, staff recommends against alcohol sales there and mandates providing at least 20 parking spaces. The original plan calls for 15 spaces, and planning staffer Peymand Behvand said the requirement can be met by amending the design or reaching an agreement with other property owners in the complex.

The commission will also hear a proposal to construct an 8,250-square-foot industrial building on a half-acre parcel. The structure would be built in the Maris Industrial Park at 57 Commerce Place.

The building is "speculative," according to a city staff report, meaning that the number and kind of tenants is undetermined. Most of the industrial park is developed and it is occupied by offices, auto repair shops and industrial service operations.

Property owners within 600 feet of the site were notified, and to there has been no feedback.

According to a city staff report, the property came under new ownership in early 2006. The new owner was told the project had expired and he needed a new design review approval before building permits were issued.

As a condition of approval, the applicant must provide one parking space per 750 square feet of manufacturing floor space plus an additional parking space

The final item on tonight's agenda concerns Browns Valley Cleaners on E. Monte Vista Avenue, which has painted its roof-mounted equipment to blend with the building's decorative trim and features. The height of this equipment is greater than what was approved by the city previously and now shows above the parapet wall.

The equipment is high enough above the wall, according to staff, to need additional screening. The commission should require the applicant to use roof screens, construct higher parapets or switch out the equipment, according to written recommendation included in the planning agenda packet. The Planning Commission meets at 7 p.m. in the City Council chamber, 650 Merchant St.

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

City of Dixon planners put retail park high on agenda

Dixon planners put retail park high on agenda

By Melissa Murphy/Staff Writer

Article Launched: 01/16/2007 06:38:53 AM PST

Plans for construction of a retail park at the southeast corner of North First Street and Vaughn Road are expected to top discussion tonight when the Dixon Planning Commission meets.

City staff is recommending the commission approve a conditional use permit to allow the Dixon Retail Park, formerly the Panattoni Commercial Center, to be built at the site. The park would accommodate 22 different businesses.

In other action, a public hearing is scheduled for general plan and zoning amendments for a project dubbed "The Courts," consisting of five parcels at the northeast corner of Stratford Avenue and North Lincoln Street.

The commission is being asked to consider:

• adopting a negative declaration relating to the proposed general plan amendment and rezoning;

• a general plan amendment to change the land-use designation and rezoning from Professional/Administrative Offices to Neighborhood Commercial; and

• amending the existing planned unit development to limit the permitted uses in the Neighborhood Commercial Zone.

In other action, city staff has recommended that the commission approve a design review for an addition to the Blood Bank Warehouse - an item postponed from December's meeting since the applicant was not present and commissioners still had questions about the project.

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.

The Planning Commission meets at 7 p.m. in the Council Chamber, 600 East A St.

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

County's Fiscal Health Gets Kudos

County's Fiscal Health Gets Kudos
By Amanda Janis/Business Editor
TheReporter.Com

Solano County's fiscal health and financial management were recently commended by one of the foremost credit rating services in the industry.

Impressed with the county's ability to increase reserves, exceed formal policy targets for its general fund, and pay $10 million in debt ahead of schedule, Standard & Poor's upgraded its rating from A+ to AA- on the county's outstanding taxable bonds. The financial services firm evaluates bond issuers and accordingly assigns ratings ranging from AAA to D.

"We expect that Solano County's limited capital needs and continued strong financial management will allow the county to maintain solid operating and reserve levels," said Sussan Corson, Standard & Poor's credit analyst, in an issued statement.

Charles Lomeli, Solano County treasurer, noted in a written statement that the upgraded rating not only serves to endorse the county's management team and fiscal policies, but will result in monetary savings.

"This rating action will save the county interest costs on the current refunding and future borrowings by issuing bonds with lower interest rates due to the AA- rating and the ability to issue bonds with little or no bond insurance," Lomeli said.

Standard & Poor's bond ratings upgrade comes on the heels of an approval by the Board of Supervisors to refinance a series of bonds issued in 2002. Refinancing the bonds, which helped finance the county's new government center, will result in an estimated savings of $150,000 annually, or $3.2 million total.

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

EDC Set for Annual Meeting

EDC Set for Annual Meeting
By Ines Bebea

FAIRFIELD - The Solano Economic Development Corporation will celebrate its 24th annual meeting on Jan. 25 at the Hilton Garden Inn in Fairfield.

The luncheon, which will bring together business leaders, government and political officials, will begin registration at 11 a.m. and the program will start at 11:30 a.m.

Dan Walters, a political commentator with the Sacramento Bee whose column appears in the Daily Republic, will serve as the keynote speaker for the event. Walters will give an overview of the state of politics in California under Gov. Arnold Schwarzenegger's second term, in addition to the changing views on the economic future of the state.

Solano EDC is an organization of public- and private-sector members whose interest is to attract new businesses and expand existing businesses in the seven cities that make up Solano County.

There will be a special presentation during the luncheon to highlight last year's economic development in Solano County and an introduction of the 2007 board of directors.

Cost for the luncheon is $40 per person or $300 for a table of eight. Deadline to purchase tickets is Friday. For more information call 864-1855.

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

Seventh C-17 to Arrive at Travis

Seventh C-17 to Arrive at Travis
Daily Republic Staff





Crews prepare a C-17 Globemaster III for departure on a tactical training mission in September 2006 at Travis Air Force Base in Fairfield. The base will be getting its seventh of 13 C-17s on Tuesday morning. Photo by Zachary Kaufman/Daily Republic file (2006).

TRAVIS AIR FORCE BASE - Travis Air Force Base's seventh C-17 Globemaster III jet transport is expected to arrive amid Air Force pomp and ceremony on Tuesday morning.

The aircraft will be delivered to the Travis flightline at 10 a.m. by Maj. Gen. John Howlett, Air Force Reserve mobilization assistant to the Air Mobility Command commander at Scott AFB, Ill.

This is the seventh of 13 C-17 Globemasters the base is expected to get which have been trickling in during the last seven months to fill out the base's C-17 squadron. The last C-17 is expected to arrive by the end of this year.

Kaiser board approves $200M Vacaville hospital - San Francisco Business Times:

Vacaville taking pride in its 2006 successes

State Fund starts construction on 32-acre Vacaville campus - San Francisco Business Times:

Solano County given 'clean' opinion in audit

Solano given 'clean' opinion in audit

By Erin Pursell/Staff Writer TheReporter.Com

Article Launched:01/13/2007 07:37:07 AM PST

A collection of reviews found nothing negative regarding the county's financial practices, according to the county Auditor-Controller's office, which presented the reports this week to the Solano County Board of Supervisors. A summary of the Comprehensive Annual Financial Report was the highlight of the presentation Tuesday, which also outlined a report to management, a single-audit report and a report on agreed-upon procedures. The Auditor-Controller's office prepares the financial documents, including the CAFR - the largest and most inclusive of the reports - in order to make the information available to officials and residents. The county received an unqualified "clean" opinion in the CAFR, the highest mark that can be earned in an audit, according to county Auditor-Controller Simona Padilla-Scholtens. "We work with the departments year-round to make the report the quality that it is," she said. "We're very proud of our accomplishments in Solano County." The other reviews also found no reportable conditions regarding the county's financial practices, but included some recommendations to improve certain internal and administrative controls. These recommendations are not considered to indicate material weaknesses, according to the presentation. The county's CAFR is of such high quality that it has won the Government Finance Officers Association Award for the fifth year in a row. The award is given based on quality, content and completeness of the documents within the CAFR, Padilla-Scholtens said. The government-wide financial statement seeks to report the extent to which the government has met its operating objectives. In other action, the supervisors approved the refinancing of a series of bonds, which officials estimate will save the county an estimated $3.2 million. In 2002 a series of bonds financed the new county government center, said Charles Lomeli, the county's treasurer, tax collector and clerk. "What we're doing is refinancing some of those bonds," he said. "Over the life of the bonds, we'll save about $3.2 million with annualized savings of about $150,000 a year." The refinance is part of an ongoing philosophy and strategy to improve the county's business practices, Lomeli explained. Erin Pursell can be reached at county@thereporter.com.

Staff Writer
TheReporter.Com
Article Launched:01/13/2007 07:37:07 AM PST
A collection of reviews found nothing negative regarding the county's financial practices, according to the county Auditor-Controller's office, which presented the reports this week to the Solano County Board of Supervisors.

A summary of the Comprehensive Annual Financial Report was the highlight of the presentation Tuesday, which also outlined a report to management, a single-audit report and a report on agreed-upon procedures.

The Auditor-Controller's office prepares the financial documents, including the CAFR - the largest and most inclusive of the reports - in order to make the information available to officials and residents.

The county received an unqualified 'clean' opinion in the CAFR, the highest mark that can be earned in an audit, according to county Auditor-Controller Simona Padilla-Scholtens.

'We work with the departments year-round to make the report the quality that it is,' she said. 'We're very proud of our accomplishments in Solano County.'

The other reviews also found no reportable conditions regarding the county's financial practices, but included some recommendations to improve certain internal and administrative controls. These recommendations are not considered to indicate materi"

Solano Supervisor offers vision to bring in jobs

Solano plans a break for carpoolers - Special lanes ahead

Special lanes ahead

Solano plans a break for carpoolers

By Erin Pursell/Staff Writer TheReporter.Com

Article Launched:01/13/2007 07:37:06 AM PST

Vehicles with at least three occupants traveling Solano County freeways soon may have a lane of their own, a perk already available in other Bay Area counties. The Solano Transportation Authority wants public comment on its HOV - high-occupancy vehicle - project to create eastbound and westbound carpool lanes along eight miles of Interstate 80. "Incrementally we're starting to move forward on this HOV system," said STA Executive Director Daryl Halls. "This will be the first segment." The lanes would extend through a widened I-80 median from Red Top Road to just east of Air Base Parkway in Fairfield, and be the first phase of what transportation officials hope will eventually create HOV lanes from Vacaville west across the county. "There's been an overall strategy to move the HOV system along the 80 corridor," Halls said. Engineering and final designs will be the next steps, and construction of the lanes is scheduled to begin by 2009. The purpose of the project - which is being co-sponsored by STA, the California Department of Transportation and the Federal Highway Administration - is to help reduce delays on the highway by encouraging carpooling to reduce traffic. "We have some of the longest commutes in the region," Halls said. "You want to provide incentive for people to take the bus and carpool." Providing HOV lanes, which may get commuters across the county 30 minutes faster during heavy traffic, is plenty of incentive, he added. Like many transportation projects, the challenge will be to secure funding. STA estimates the project will cost $80.6 million. While $60.6 million has been secured through a recent ballot measure, the agency seeks the remaining $20 million through regional sources. In the meantime, the agency is beginning studies on other potential HOV lane projects in Solano. Securing funding for HOV projects is among STA's priorities for State Transportation Improvement Project funding. STA recommends a regional HOV system to complement planned transit improvements and serve future bus, train, carpool and vanpool users. "For the (Interstate) 80 corridor, one of the key conclusions is that we really should plan for, and fund, HOV lanes," Halls said. The initial study of the HOV lanes project can be viewed online at www.solanolinks.com. Comments and requests for public hearings can be submitted until 5 p.m. Feb. 1 to jadams@sta-snci.com, 424-6075, fax 424-6074 or mail to Janet Adams, Director of Projects, STA-I-80 HOV Lanes Project, One Harbor Center, Suite 130, Suisun City, 94585. Erin Pursell can be reached at county@thereporter.com.

arpoolers
By Erin Pursell/Staff Writer
TheReporter.Com
Article Launched:01/13/2007 07:37:06 AM PST
Vehicles with at least three occupants traveling Solano County freeways soon may have a lane of their own, a perk already available in other Bay Area counties.

The Solano Transportation Authority wants public comment on its HOV - high-occupancy vehicle - project to create eastbound and westbound carpool lanes along eight miles of Interstate 80.

'Incrementally we're starting to move forward on this HOV system,' said STA Executive Director Daryl Halls. 'This will be the first segment.'

The lanes would extend through a widened I-80 median from Red Top Road to just east of Air Base Parkway in Fairfield, and be the first phase of what transportation officials hope will eventually create HOV lanes from Vacaville west across the county.

'There's been an overall strategy to move the HOV system along the 80 corridor,' Halls said.

Engineering and final designs will be the next steps, and construction of the lanes is scheduled to begin by 2009.

The purpose of the project - which is being co-sponsored by STA, the California Department of Transportation and the Federal Highway Administration - is to help reduce delays on the highway by encouraging carpooling"

900 Graduate from UC Davis in Fall commencement

ABOUT 900 TO PARTICIPATE IN POPULAR FALL COMMENCEMENT

Almost 900 soon-to-be UC Davis graduates will file into the ARC Pavilion on campus, take to the stage one by one, and move the tassel on their graduation cap from right to left as part of two commencement ceremonies on Sunday, Dec 17.

This year's fall commencements mark the fourth anniversary of a program that was launched to take the pressure off a crowded spring ceremony and now has grown into a popular alternative. Because of demand, one ceremony has become two -- one at 10 a.m. for the College of Letters and Science, and another at 2 p.m. for the colleges of Agricultural and Environmental Sciences, Engineering and Biological Sciences.

"Our first year, we had only 200 to 300 graduates altogether and were able to fit all four colleges into one ceremony," said Charlene Sweeting, student affairs officer for the College of Biological Sciences. "But the event became so well attended that after two years we had to split it into two. Even now, each of the ceremonies is going to be pushed to the limit."

Leticia Miller, candidate for a Bachelor of Science in psychology, will address almost 450 participating students and their guests at the morning ceremony. In the afternoon, about 425 students are expected to attend, and they will hear from student speaker Sara Khandan, candidate for a B.S. in biological sciences.

Maddy Rehrman, who coordinated ceremonies for Letters and Science for almost eight years and oversaw the introduction of fall commencement before her retirement, was rehired to help organize the college's commencements for the academic year. Despite its quick growth, she said, the fall commencement is a good way of satisfying the needs of students and their guests.

"Students like the idea of a smaller ceremony and that they can receive a greater number of tickets than they can in June when tickets are at a real premium," said Rehrman. "The past few years we have had over 1,000 students in each of our two L&S June ceremonies, thus reducing the number of tickets available.

"We are much more flexible in the December ceremony," she added.

In the spring, UC Davis holds 12 graduation ceremonies for Graduate Studies, the four undergraduate colleges and the five professional schools.

Media contact(s):
* Julia Ann Easley, UC Davis News Service, (530) 752-8248, jaeasley@ucdavis.edu

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UC DAVIS OFFERS LEGAL DOWNLOADING ALTERNATIVE

UC Davis has introduced a new downloading service to encourage students to stay on the right side of the law as the music industry continues to sue those who illegally share copyrighted music.

The campus joined with Cdigix, the leading digital media provider to colleges, to decrease illegal file sharing and make students aware of the legal alternatives.

Beginning midway through the fall quarter, UC Davis students were provided free access to Ctrax, the company's basic service, and a library of more than two million songs from 100,000 artists in 23 genres. Employees and alumni pay a monthly fee of $5.99. As of Dec.
10, more than 1,300 individuals had subscribed.

All UC Davis students can sign up for an account and be able to download, stream and create playlists through the company's music player. Although Ctrax users do not legally own any of the music, subscribers have full access to anything in the library.

Students also have the option to upgrade their subscription with the Ctrax2Go service, at $6.99 per month, which allows them to download tunes onto an MP3 player. As long as students are current subscribers, both services permit students to legally download files
-- but not share them with others. A third alternative is to permanently purchase song tracks at a cost of 89 cents each or $9.99 for an album or box set.

Illegal file sharing is a significant problem at universities across the country, and it has led to lawsuits involving students. Under the Digital Millennium Copyright Act (DMCA), universities are obligated to terminate Internet access for anyone caught sharing files illegally through campus servers.

According to Jan Carmikle, who receives notices of alleged copyright infringements for UC Davis, the school received almost 300 complaints of alleged copyright violations against students during the last academic year. Individuals associated with notifications are subject to disciplinary action, including the temporary loss of network privileges. While the first offense results in a warning from Student Judicial Affairs, subsequent offenses will lead to a permanent loss of Internet privileges.

Tracy Bennett, associate director of student housing, said Ctrax provides an ideal solution. "For any student who wants to listen to music on their computer, Ctrax gives you excellent access," he said.

Media contact(s):
* Julia Ann Easley, UC Davis News Service, (530) 752-8248, jaeasley@ucdavis.edu



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UC Davis News Service
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Phone: (530) 752-1930; Fax: (530) 752-4068

California adds an above average 15,900 jobs in November

Solano, Napa & MTC road officials seek 4 lanes on Highway 12

Road officials seek 4 lanes on Highway 12

By KEVIN COURTNEY
Register Staff Writer

Thursday, January 11, 2007

The Metropolitan Transportation Commission and Caltrans are now both recommending that the state make Highway 12 through Jamieson Canyon Road a four-lane road funded by new congestion relief bonds.

MTC staff had recommended a less costly three-lane option, but on Wednesday morning commissioners representing the nine Bay Area counties said four lanes made for a better project.

“This is really great news,” said Napa County Supervisor Bill Dodd, who intends to lobby to get final sign-off from the California Transportation Commission on Feb. 28.

Jamieson Canyon Road is a major commute bottleneck between Napa and Solano counties. Proposals for local transportation sales taxes in Solano and Napa counties that would have widened this stretch of highway were defeated by voters in June.

The MTC considers Jamieson Canyon widening its No. 2-rated Bay Area project for funding from Proposition 1B, Gov. Arnold Schwarzenegger’s transportation bond approved in the November election, Dodd said.

Both the MTC and Caltrans support a trimmed-down four-lane connection from Interstate 80 to Highway 29. By leaving some curves on the Solano side and installing a median barrier on only half of the six-mile length, the cost can be cut from $190 million to $133 million, said Jim Leddy, executive director of the Napa County Transportation Planning Agency.

State bonds would cover $84 million, with Napa and Solano counties expected to come up with the remaining $49 million from other highway funds, Dodd said.

The Napa County Transportation Planning Agency and MTC staff had proposed a $107 million three-lane option, with two westbound lanes and just one eastbound.

By keeping the cost down, they hoped that the project might win the favor of the California Transportation Commission, which won’t have enough money to fund all the recommended projects statewide.

Caltrans convinced the MTC that a three-lane Jamieson Canyon wasn’t an adequate solution, Dodd said. “They want to do it right,” he said.

It should strengthen Jamieson Canyon’s chances for bond funding if Caltrans and the MTC have a unified request, Dodd said.

Prior to the MTC meeting at the end of February, Dodd said he would enlist community leaders to write letters to the CTC supporting the project.

Besides being a big bottleneck during morning and evening rush hours, Jamieson Canyon slows the movement of goods, which harms the wine industry, he said.

Leddy, who worked for two state senators before taking his NCTPA job in December, has political connections in Sacramento to strengthen Napa’s case, Dodd said.

The proposed four-lane design would save money by not realigning as much roadway on the curvy stretch in Solano County, Leddy said. More funds would be saved by installing a median barrier along half the highway. The barrier would be placed in the areas with the highest accident rates, Leddy said.

If the scaled back design is funded by the CTC, Napa gets improved traffic flows as well as greater safety, he said.

Solano County and Caltrans have a multi-phase plan to improve the I-80/I-680 connection and route Highway 12 through traffic off the interstate.

Projects that receive state bond money must be under construction by 2012. Local sponsors are hoping for a 2010 start.

Business boom in West Sacramento

Business boom in West Sacramento

West Sacramento is celebrating its 20th anniversary, and with it an economy that is changing its image as an industrial backwater.

By Lakiesha McGhee - Bee Staff Writer

Last Updated 5:33 am PST Wednesday, January 10, 2007

Chad Bidegain works on a weld section in the new 110,000-square-foot building for biotech firm Affymetrix that should be open by summer. Sacramento Bee/Bryan Patrick

Technicians wearing protective, white "bunny suits" and eye goggles work in a secure environment where DNA is used to assemble genetic chips for drug discovery and other studies.

The technicians' work at Affymetrix in West Sacramento is intricate, careful and part of a 24-hour operation.

Their work is reflective of West Sacramento's changing economy.

The city, which celebrates its 20th anniversary this year, has long worked to change its image as an industrial backwater of Sacramento filled with grimy warehouses and cheap motels.

Business parks have expanded with high-tech companies and other industry new to the city. National retailers such as Ikea have opened shop, attracting patrons from throughout the region. New shopping centers will house a Home Depot, Wal-Mart, Target and Lowe's Home Improvement, which are scheduled to open within the next few years.

Historically, West Sacramento -- flanked by three major freeways -- has been a business community serving as the region's hub for truckers and warehouse distributors.

"The warehouse and trucking jobs are not going to sustain us into the future," said Diane Richards, city economic development coordinator. "We believe if you don't keep getting better, you'll stop being good. We're always trying to improve the quality of life for our residents."

The need for change is driven by a surge in new housing and a need to provide higher-wage jobs for a growing population. An economic development report issued by the city in 2005 showed that while job growth in the private sector was good, average wages had declined.

The city has since refocused its efforts to attract five target industries: biotechnology, fuel cell work, logistics for warehouse distribution, food processing and retail. Many of the companies report they are expanding operations.

"West Sacramento has one of the strongest business climates in the region because of some of our natural advantages and how we have focused our efforts," said Christopher Cabaldon, the city's mayor.

He explained that highly skilled workers are attracted to the city's location near an urban core, transportation, the waterfront and college campuses. Such advantages have helped West Sacramento become one of the regional hubs in biotechnology, Cabaldon said.

West Sacramento accounts for about 13,000 of the 15,000 jobs in Yolo County involved in transportation and logistics, according to a city report.

The city's 2005 report also found the region's distribution industry was hard hit by a weakened economy. Employment had fallen in the past three years and the Port of Sacramento -- the most visible distributor in West Sacramento with about 150 full-time employees -- had lost $3 million.

The city gained greater control of the port last year and developed a partnership with the Port of Oakland to help change its business tide.

"We're still a young community, and we knew from the get-go that we would have major challenges to overcome if we were going to reach our dreams and become what we wanted to become," said Kay Fenrich, executive director of the West Sacramento Chamber of Commerce.

West Sacramento residents once had to leave their community to shop, Fenrich said, but the city has added more retail, and midsize to smaller businesses.

The city offers tax breaks and other incentives to attract new business, but mostly lures firms with competitive land prices and a streamlined planning process, Richards said.

However, some economic experts are skeptical about plans to lure biotech companies to boost job growth.

"The big problem with biotechnology is that everybody wants them and people are throwing all sorts of outlandish favors in their direction," said Joel Kotkin, a consultant on economic trends and author of "The New Geography, How the Digital Revolution is Reshaping the American Landscape."

Kotkin said competition for biotechnology firms is high and the jobs they create are few in number. Compared with the technology boom in the late 1990s, there is not a surge in biotechnology jobs to justify the appetite, he said.

"I'm not sure why biotechnology is so popular," Kotkin said. "I guess it's the flavor of the month. It's sexy. It's high-end jobs. It's clean industry."

If the hunt for more biotech companies comes up short, the city has other options. West Sacramento received $35,000 in community development block grant funds last year to investigate developing an incubator, a type of innovation center that would focus on the five target industries and help entrepreneurs develop ideas.

A logical move for West Sacramento, Richards said, is to encourage more businesses that provide warehouse distribution logistics. Logistics is a fairly new industry involving use of real-time technology to track shipments.

In the meantime, West Sacramento's biotech firms for the most part are reporting growth.

The most notable large biotech firms in West Sacramento are Affymetrix, Dade-Behring, Idexx Laboratories and Xyratex, which account for more than 1,000 jobs paying an average annual salary of $43,000, the city reports. Affymetrix set up shop in West Sacramento in 1998 and is considered the city's first great success in wooing biotech firms.

A new 110,000-square-foot building is being constructed at its site on Embarcadero Drive and should be ready for use by summer. Affymetrix is not disclosing information on the number of potential new jobs.

About the writer:

• The Bee's Lakiesha McGhee can be reached at (916) 321-1121 or lmcghee@sacbee.com.

West Sacramento is in the midst of a business and image makeover, from a city known for its low-cost motels and gritty industrial zone to one with a full range of retail services and businesses that offer higher-paying jobs for residents. Sacramento Bee/Bryan Patrick

Employee Raul Cepeda walks in a section of the new Affymetrix building being constructed on Embarcadero Drive. The company, which set up shop in West Sacramento in 1998, uses DNA to assemble genetic chips for drug discovery. Sacramento Bee/Bryan Patrick

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Six Flags to sell Concord's Waterworld USA, other parks

Six Flags to sell Concord's Waterworld USA, other parks

East Bay Business Times - 10:19 AM PST Thursday

by Jeff Clabaugh

Six Flags Theme Parks Inc. has announced it found a buyer who will pay $312 million for seven of its parks, including Waterworld USA in Concord.

After the announcement, Six Flags' stock jumped as much as 10 percent, its biggest one-day gain in two months. Dan Snyder, the owner of the Washington Redskins, is Six Flags' largest shareholder.

Six Flags, which said last June it would seek buyers for some of its parks to raise cash for debt reduction, will sell the parks to PARC 7F-Operations, a Jacksonville, Fla.-based company run by a former Six Flags Over Texas vice president, Michael Jenkins.

PARC, in turn, plans to sell the parks to CNL Income Properties, a Florida real estate investment trust whose holdings include ski resorts and golf courses, but PARC will operate the properties under long-term leases.

The parks included in the sale are Waterworld USA in Concord, Six Flags Darien Lake in Buffalo, N.Y., Six Flags Elitch Gardens in Denver, Frontier City and White Water Bay in Oklahoma City, SplashTown in Houston, and Wild Waves and Enchanted Village in Seattle. Combined, the seven parks had attendance of 3.6 million in 2006.

The sale is expected to close in March, according to a Six Flags statement.

Snyder took control of Six Flags in a boardroom battle in 2005 that led to the departure of the company's former chief executive. Snyder replaced several board members and top executives with his own team.

Six Flags' stock (NYSE: SIX) was up 42 cents to $5.85 per share in Thursday trading. Its shares have lost 36 percent of their value in the last year.

Clabaugh is a reporter for the Washington Business Journal.

Commercial property acquisitions up in Silicon Valley

Commercial property acquisitions up in Silicon Valley

Silicon Valley/San Jose Business Journal - 9:04 AM PST Thursday

by Sharon Simonson

Commercial real estate investors acquired more than $5.6 billion in Silicon Valley property in 2006, up from less than $5 billion invested in 2005.

That contrasted with an overall decline in the pace of investment Bay Area-wide, according to newly released year-end numbers from market researcher Real Capital Analytics.

Investors put up about $16.3 billion to buy apartments, offices, shopping centers and industrial buildings from Sonoma to Santa Clara County in 2006, Real Capital says. That was down from a total of $18.8 billion invested in 2005 in the same geography.

The level of interest fell off in every property category, with the steepest decline in dollars spent to buy apartments, off slightly more than $1 billion to $3.4 billion in 2006.

San Francisco saw a drop from an aggregate of $7.7 billion invested in 2005 to an aggregate $5.86 billion invested in 2006.

In Silicon Valley, in contrast, investor interest waned in apartment and office buildings in 2006 compared to 2005, while interest in shopping centers and office buildings grew. However, nearly all of the roughly $1 billion increase in office investment can be traced to a single transaction: the sale for $1.1 billion of the 5.3 million square-foot Peery/Arrillaga Silicon Valley portfolio to real estate advisor and money manager Rreef Funds LLC, a unit of Germany's Deutsche Bank.

Capitalization rates, or cap rates, a measure of first-year yield, also continued to fall by and large, though not across the board. In perhaps the most-startling example, investors were willing to accept a 4.9 percent return on San Jose apartments last year, down from 5.1 percent in 2005.

Falling cap rates have been a subject of much investor interest in recent years, as buyers continued to pay increasingly higher prices for the income properties produced, compressing cap rates to the low and lower single digits.