CalChamber Council: California Economy

Slow, but Continues to Recover

(December 20, 2011) Job growth in California has improved following its summer doldrums, according to the latest report of the California Chamber of Commerce Economic Advisory Council (EAC). (Read the full report.)

Europe and Other International Issues

While there are rumblings about the cost of the sovereign debt bailouts, the Europeans have no other choice but to maintain the euro and its survival if they want to stay relevant on the world stage.

Meanwhile, Ireland, another debt crisis country, has been getting its act together, cutting its budget deficit. Spain, which could be next in line, actually has no public debt problem.

Overall, therefore, the European debt crisis is less severe than pundits proclaim on major financial TV channels. The euro will survive.

U.S. Economy

Recent economic evidence for the U.S. supports the notion that there will be no double-dip, but that growth is and will be subpar to previous recoveries.

Evidence is mounting that the U.S. economy is back to at least a 2.5% growth path following a sluggish spring and summer. Positives are small improvements in the labor markets, exports, modest growth in consumer spending, and an increase in business fixed investments.

California

The state gained a total of 233,700 nonfarm jobs over the 12 months to September. Thirteen industry sectors and government recorded year-over gains led by administrative services; professional, scientific and technical services; leisure and hospitality; and health care. Two sectors reported employment declines: financial activities and other services.

Looking forward to 2012, continued export growth will favor California’s coastal urban areas. Interior California will continue to benefit from a good agricultural business but sorely miss economic activity that used to come from new housing production and the big affordability migration waves of the past.

Housing Still in Limbo

California housing is still extremely sluggish. The state’s home resale market is still bouncing along the bottom, with essentially no regional differentiation. Activity in terms of volumes and new housing production is still in deep freeze. Tight credit availability is not helping. However, urban coastal areas are poised for recovery, helped by improving economic conditions, remaining homeowner equity, and historically high affordability.

California Agriculture Improving

Producers of vegetables, nuts, grapes and other fruits have generally enjoyed good production conditions and good prices

California growers were especially thankful for excellent water conditions in 2011. Abundant rains and snow packs helped replenish groundwater basins and provided for nearly full surface water deliveries in all regions.

Ag labor availability continues to be ample, though there were some difficulties during the late harvest period, as poor weather threatened the harvest and other U.S. regions competed for the same workers. California fruit and vegetable producers are apprehensive about the availability of labor in the near term, because of the possible changes in federal regulations requiring more stringent verification of workers’ documentation.

California Tourism

California tourism has exhibited positive trends lately also. Domestic airline travel is likely to grow 3% to 4% this year. Both car rentals and motor coach rentals are up this year. Leisure bus trips have increased 2% to 4%. Hotel occupancy has risen 5% to 6% and international visits to California have increased.

A major risk for all tourism, however, is a proposed $100 federal surcharge per flight in the U.S. for a security fee. A possible positive for tourism is a new federal travel promotion program, which could particularly benefit California.

Water and Electricity Conditions Fine

Last year’s wet year has replenished both in-state reservoirs and those on the Colorado River. The Colorado River still has very low reservoirs, but compared to recent years they are much improved.

Electricity demand is still reduced by the recession’s aftermath, so supplies are good, even though permitting and financing for some of the planned renewable generation is progressing somewhat slower than had been hoped.

On October 20, the Air Resources Board (ARB) adopted a cap-and-trade program that will require electric generators to purchase permits to emit greenhouse gases. These permits will be purchased through an auction that will be run by ARB. The details have not yet been ironed out. The permits will be required as of January 2013.

Delta issues are continuing to cause concern. There are ongoing problems with environmental decline and restrictions on taking water from the Delta.

Summation

The global economic outlook is better than the hoopla surrounding the European debt crisis suggests. This will help California businesses, which are heavily export-oriented.

Tourism and agriculture growth could accelerate next year and water and electricity concerns have abated.

Click here to download the full report.

Duarte Asks Residents to Help Keep

Storm Drains Clear During Rainstorms

Through Tuesday, December 13, rain and thunderstorms are in the weather forecast for Duarte. City crews and contractors are still busy collecting green windstorm debris placed in public areas including streets near storm drains from the recent windstorms. City officials are concerned that blocked storm drains could lead to standing water or flooding in some areas.

To avoid this additional complication, residents are asked to check whether water in their street could reach storm drains and, if not, to clear a path for it by moving storm debris as needed.

The City has also established free green-debris drop-off locations throughout the City in the following areas:

• Empty Lot at the south east corner of Pops Rd. and Huntington Dr., unloading items on Pops Rd.
• North west corner of City of Hope property at 2144 Buena Vista St., enter off of Buena Vista St.
• Beardslee Elementary School, 1212 Kelwill Way, unload items in staff parking lot off of Buena Vista St.
• Encanto Park, 751 Encanto Parkway in the center of the parking lot.

Residents wanting to dispose of green waste - including trees, branches, shrubs and other green waste - may use the bins until Friday, Dec. 16 at 4 p.m. The collection bins are for green waste only. Trash, food, and recyclables are not permitted. Burrtec Waste will continue to collect trash, recyclables and green waste barrels on normal trash collection days. Burrtec will also be collecting additional loads of green waste if barrels are refilled and placed curbside as needed through the end of the next week (Dec. 16th) as well.

For additional information on debris removal or to report a flooding storm drain, please call Duarte City Hall at (626) 357-7931 or after hours contact Temple Station at (626) 448-9861.

Duarte’s Promise and Community

Team Launch Holiday of Promise

Duarte’s Promise; The Alliance for Youth, the Duarte Church and Clergy Association and numerous businesses are teaming up for the tenth straight year to help ensure a bountiful Christmas for Duarte area families. To date approximately 50 businesses have reserved a donation box including all DUSD schools, city facilities, Duarte Family Chiropractic, Rancho Duarte Golf Course, Curves, Cabrera’s Mexican Cuisine, The Leven Oaks and the City of Hope.

The “Holiday of Promise” project will collect food, personal items and gift donations to help fill holiday baskets for less fortunate families of Duarte and surrounding cities. The Duarte Community Service Council and the Foothill Unity Center will distribute the baskets to families the week before Christmas.

Participating area churches and businesses are collecting food and gift items from Wednesday, November 16, through Thursday, December 8. Suggested food donations include dry boxed goods such as stuffing, rice dishes, mash potatoes, cereal and pasta; flour, sugar, brown sugar, cinnamon, baking powder, cornstarch, and powdered sugar. Also, sweets, including jello, pudding, cake mixes, chocolate chips, cookie mixes, frosting, and muffin mixes; and canned food items such as fruit, pumpkin, yams, beans, corn, okra, refried beans, beans, milk, tuna, and chicken.

Gifts are needed for children, teens, and adults. Suggested items include clothes: colorful ankle socks, canvas belts, athletic socks; Toys for infants to 2 years old, 2 to 5 years, and 6 to pre-teen. Electronics: mp3’s – kid’s/teens, $5 phone cards, digital camera, AAA batteries, AA batteries, watches, C batteries, headphones. Personal items: barrettes, bows, scrunchies/headbands, bracelets, earrings, lotion, perfume, aftershave, hand creams, hair gel/spray, and toothpaste. Also bar soap, liquid soap, bubble bath, hairbrushes, shampoo, and conditioner.

City staff will pick-up the food and gift items from sites on December 7th & 8th then delivering to both the Duarte Community Service Council and the Foothill Unity Center for distribution to families. For more information and to find out the locations of participating sites accepting Holiday of Promise donations, contact: Duarte’s Promise at City Hall, (626) 357-7931 ext 267.

Assemblymember

Anthony Portantino

Named Assembly Democrat

Legislator of the Year

Sacramento - Schools may have done away with winners and losers, but not the folks at Sacramento’s “Around the Capitol”. Today, they released the results of their reader poll and named Assemblymember Anthony Portantino – Assembly Legislator of the Year.

In the category, Assembly Democrat, Portantino was judged the top by capitol insiders who cited the following:

• "He fought the man and won."
• "For calling a spade a spade when combatting overly zealous party discipline, and calling for greater transparency in Assembly budget matters."
• "Independent."

Portantino said he was thrilled to be chosen and promises to continue the fight to open up the State Assembly budget records for public review.

“From the back bench, it feels pretty good to know that folks inside the capitol know that sunshine is just around the corner. I’m honored that this little fight has garnered independent support and verification. Rumor has it that the Speaker has increased Assembly budgets by $20, excluding mine of course, so that members can buy sunscreen in the wake of the Times and Bee court date. In a belt tightening exercise, I heard it was announced that there is only enough money in the kitty to pay the lawyers so Assembly staff will have to fend for themselves and purchase their own sunscreen. Seriously, this is a pretty cool thing to have happened, thanks from me, my staff and the good residents of the 44th AD.” - State Assemblymember Anthony Portantino

Check out the final results at: www.aroundthecapitol.com/nooner/2011-10-19.html

Duarte Businesses Collect Batteries

Making Recycling Easier

Two businesses in the City of Duarte are part of 38 establishments in the San Gabriel Valley participating in a pilot program that aims to increase battery recycling within the City and throughout the Valley. The state of California banned batteries from disposal in landfills in 2006 in an effort to recycle more metals and to reduce groundwater contamination caused by the presence of batteries in landfills.

The following locations are participating in Duarte as battery take-back sites:

• Frontier Hardware, 2137 Huntington Dr.
• Route 66 Car Wash, 2110 Huntington Dr.

Residents can conveniently bring any household batteries (rechargeable or alkaline that weigh less than 11 lbs.) and cell phones to the take-back locations. This means that old lithium-ion cell phone and camera batteries along with traditional AAA-D batteries can be brought to the same convenient take-back location. Signs on store windows identify take-back locations. Customers can turn in their batteries at the marked battery recycling boxes inside the store. Simple instructions on how to safely recycle batteries are located on each take-back box. Full boxes of batteries are mailed to recycling facilities at no charge to the participating businesses.

Thanks to an approximate $396,000 grant from the Department of Resources Recycling and Recovery (CalRecycle), the San Gabriel Valley Council of Governments (SGVCOG) has been able to facilitate a pilot-recycling program for household batteries. The SGVCOG is working to make battery recycling more convenient by partnering with local businesses to become battery take-back locations. The Call2Recycle® program is paying for all disposal costs associated with the battery recycling. This take-back process reduces costs to the public because battery producers pay for the shipping and recycling. Furthermore, recycling is more convenient for consumers because local retailers throughout the San Gabriel Valley host collection locations.

For more information about the battery-recycling program or to find a take-back location near you go to www.SGVCOG.org/batteryrecycling or contact Nicholas Conway, SGVCOG Executive Director at (626) 457-1800. For more information about CalRecycle go to www.calrecycle.ca.gov.

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