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Scotts Valley
September 16, 2025

San Lorenzo Valley Water District increases bulk water rates

On April 16, SLVWD voted to raise the rates on bulk (surplus) water. The SLVWD agenda stated that there are “approximately 20 active surplus water users, of which, about 35-percent are higher usage and 8 have addresses on file that are out of our District.” The proposal was made to increase the rate from $31 to $103; in addition to ‘consumption’ charge of $10 for each unit of water (748 gallons) delivered. It was stated that “the intent of the change in Bulk Water rates is to discourage usage outside District Boundaries, encourage conservation and balance Bulk Water Rates more equitably with fixed meter rates and charges.”After much discussion by the Board of Directors, Director Baughman suggested going ahead with the increase and revisiting the issue later. Director Brown agreed. Director Hammer recommended that they “monitor who is buying and using SLVWD water.” President Bruce suggested that “staff bring this back to the Board with a quarterly report in three months comparing current information to information from one year ago.”In July, the next time that Boulder Creek resident, Daniel Burke, purchased bulk water; he discovered that his bill had increased “from $49 every two months to $172 for approximately the same amount of time from one time till to the next.” Burke is retired and has lived off of Harmon Gulch Road for over ten years. He said “I am not a commercial water user. I am not a water seller. I am not a water deliverer. I am not an agricultural grower by any means. We simply use water for drinking and for household use. And, we want to pay our fair share.”Burke is hoping that when SLVWD revisits the surplus water issue again that it will be “perhaps from a more human-impact angle and not strictly from a financial angle.” No one wants the kind of surprise that Burke received the last time he bought water, even when they “want to pay their fair share.”For more information see:http://www.slvwd.com/agendas/Full/2015/4-16-2015/4-16-2015.htmhttp://www.slvwd.com/agendas/minutes/2015/Minutes%20BoD4.16.15-%20approved.pdf

New SV archery shop offers equipment, advice for beginners

Bullseye Archery, the newest archery shop in Scotts Valley, is the perfect place for hunters and beginning archers to stock up on gear and knowledge of the bowman’s art. Larry Spittler and Jeanne Burke are the owners of the shop located at 5299 Scotts Valley Drive, which opened on March 1, 2015. “We do tuning of bows, cam bows, and regular bows, and we sell any kind of bow that you could possibly want,” Spittler said, “plus the stuff to go with it.” Spittler, an archer of 40 years, said that he started practicing archery in the sixth grade after witnessing Howard Hill’s archery expedition at Golden Gate Park in San Francisco in 1964. “I did (archery) in college and 40 years later I’m going ‘I think I’d like to shoot a bow again,’ a lot of people do the same thing,” Burke said. “They come in here and they haven’t shot in years.” Bullseye has a beautiful display of bows ranging from English longbows, Australian Aborigine bows, recurve bows, and compound bows — originally called cam bows — with a small selection of crossbows as well. “The thing is don’t be afraid to try something new, if you have never tried it before,” Burke said. “Because we are very helpful, we can tell you and offer you anything.” For those interested in getting started in archery, the two main bows for beginners are the recurve bow — which is curved at the tips — and compound bows. “(Recurve bows) used to be the fastest bow 30 year ago, (and) then some engineer got the wise idea of putting pulleys and cams on the end of bows,” Spittler said. Compound bows can shoot longer distances than the recurve bow, and they usually have lighter draw weight. However, the recurve bow is more traditional and much less expensive, giving the bow wielder a sense of the device’s history and beauty. “If you are going to get started with a recurve with really good equipment then you’re looking at about $300,” Spittler explained, “in your cam bows you’re probably looking at $700.” Recurve bows are for fun, he said, while the compound bow is all about hitting the target. The shop stocks bow parts, knives, and throwing axes. It also sells a variety of targets, which are very popular items. “That’s one of the reasons why (archery is) so successful here, so many people have room to have a range in their back yard,” said Bullseye’s Store Manager Gabrielle Garrett, a regular archer since 2008. With the start of deer hunting season, the shop has recently stocked up on broad heads and other points and blunts for hunting. Bow hunters typically shoot with compound bows, but some use long bows and recurve bows as well, Garrett said. Their equipment goes fast and they have bows on consignment and old arrows that have been repaired for $2 each. “Some people would rather do that — especially for their kids who loose them and break them all the time — than pay for new arrows so we sell a lot of those and we are constantly repairing arrows and making new sets,” she said. Currently, the shop does not have an archery range or classes. “Most of the time, I tell people to go to Archery Santa Cruz because they have an indoor range and walk in instruction — or to go to the Santa Cruz Archery’s Club, but then you have to have your own equipment and they only teach classes once a month,” Garrett said. Spittler said that they would eventually like to have a shop with a range, but in the mean time he directs most people to the range at De Laviega Park, which is open to the public on Saturday and Sunday from 12 to 5 p.m. Bullseye Archery’s well-organized shop is open from 3 to 7 p.m. Tuesday through Friday and 11 a.m. to 6 p.m. on Saturday. Those in need of equipment or archery advice are encouraged to stop by.

San Lorenzo Valley Water District: A Community Update

We’re still in a drought, and that continues to be a major focus. The Governor mandated 25-percent water use reductions from a 2013 baseline, state-wide. The District’s goal is the same 25-percent reduction, and so far we’re doing great! To support conservation goals, the District has leak-tested more than 100 miles of District main line distribution piping and fixed dozens of leaks, representing about 10-percent of the District’s water production. To help customers conserve, the District has expanded its rebate program, posted roadside signage and conducted outreach through bill inserts, direct mail, Facebook posts and community events.Customers have responded enthusiastically to the District’s call for conservation, reducing water use by 40-percent from the 2013 baseline for the second quarter of 2015. On average, in April through June, District customers used about 65 gallons of water, per person, per day. As we head into the warmest months of the year, our creeks are critically dry, so we ask that our customers continue to conserve water and we thank you for your efforts.To ensure reliable delivery of high-quality water, the District is working on a number of important capital improvement projects focused on emergency preparedness, replacing old and leak-prone infrastructure, and protecting the watershed. Two major projects have recently been completed: the Olympia Circle integration and the state-funded emergency intertie in Felton. Other major capital projects are underway, including engineering and permit work for two storage tank sites, state-funded emergency interties in the Mt. Hermon/Graham Hill area and the Felton Fish Ladder.To help guide the District’s decisions on future capital improvement projects, community workshops were held in May and June, at which attendees provided input on prioritization. Stay tuned for additional community engagement opportunities that will take place in coming months.Beyond capital projects, a number of key administrative improvements have been implemented: an updated Strategic Plan, a new integrated financial management, billing and record keeping system, and automation of payroll and monthly customer billing systems as well as a review and update of District policies and procedures.On June 18, the District Board adopted a final budget for the 2015-2016 fiscal year, which began July 1. Establishing a budget is a critical element in the annual cycle of any organization because it describes the general direction of the organization and sets specific funding commitments.The budget was presented at six committee and board meetings where board members and the public discussed the details of the budget, line-by-line. The budget covers all anticipated operating and capital expenses. The District’s daily operations are projected to remain in the black. However, funding for capital projects is anticipated to be in the red. This shortfall is chiefly the result of reduced revenues due to water conservation. Because of the drought and how well District customers have conserved water, in fiscal year 2014-2015 District revenues were more than 16-percent below what was projected, and for the current fiscal year are anticipated to be more than 19-percent below those anticipated at the time present rates and rate increases were set in 2012.   To address the shortfall, the District is pursuing ways to trim expenses. Some savings opportunities may be in insurance coverage, postage and billing systems, and water meter changes. Trimming costs will help but the shortfall cannot entirely be cured by cutting costs. We know that in the long run, the District will need to adjust to rising costs, aging infrastructure and reduced revenues through instituting new rates and rate structures. Supporting this assessment, the State Controller has warned that Districts who don't raise rates in response to drought revenue reductions face credit rating downgrades.Looking ahead, the coming year includes work on several essential areas:Rate studies to carefully assess the full costs of District systems and services, and the environmental impacts of water diversions.New technology, including modern water meters and an upgraded monitoring system.Continued leak detection and repair.Work on major capital projects currently underway.Some of these projects will be very visible to the community and may impact motorists, especially the emergency intertie project. This summer the project will impact traffic in the Mt. Hermon/Graham Hill Road area. Please contact the District, visit www.SLVWD.com or check out the District’s Facebook page for project details.Community input and collaboration are vitally important to SLVWD as we respond to the drought, address funding shortfalls, make needed improvements, and tackle new projects. We invite our community to reach out and engage with us, and we commit to doing the same. Please visit our website for updates, follow us on Facebook, sign up for email updates and come to our board meetings and community events. Margaret Bruce serves as President of the Board of Directors of the San Lorenzo Valley Water District. Brian Lee serves as District Manager of the San Lorenzo Valley Water District.

Letters

Dear Editor: Thanks to early conservation efforts, vast areas of prehistoric redwoods have been protected from logging where they survive in our State despite generations of an industrial economy.  These redwood forests are now under threat and help is needed if we want these ancient trees to continue into the future.  Poachers are encroaching into protected government and private land to steal the burls from these trees.  By removing their protective layers of bark, these ancient redwoods lay exposed to disease and pests killing them quickly over time.  The burls are sold to lumber mills or craftsmen and this beautiful decorative wood is ultimately used to create high end consumer goods.  With the small number of rangers available to patrol the vast acreage of the forest, the risk of getting caught is limited.  Worse yet, if convicted, current penalties can be easily incorporated into the cost of doing business with minimal impact on the profitability of this enterprise. The California Federation of Women’s Clubs is asking for support of California Senate Bill 288 which increases penalties of burl poaching to include up to one year of imprisonment and imposes stiff fines on poachers in the hopes of making those who would kill our redwoods think twice before seeking this avenue for enrichment.  While this does not resolve the problem of catching poachers, it will reduce the spin of the courtroom doors for those convicted of this offense.  We ask that Californians contact their State Assembly representative to stand with the California Federation of Women’s Clubs to protect our redwoods by passing Senate Bill 288. Jennifer NickelLegislation & Public Policy State ChairmanCalifornia Federation of Women’s Clubs    Dear Editor,I am writing to publicly thank Valley Churches for their generous donation to our scholarship fund for high school seniors this past year. Because of their generosity we were able to help over thirty seniors attend prom, purchase yearbooks, and attend the senior trip. Senior year is such an important time for our students as they celebrate the culmination of their high school experience. To be able to help ensure that all our students and their families could afford these activities was an incredible gift to the Class of 2015. Thank you to Valley Churches and all its supporters.  Leslie Burns,Counselor/Activities DirectorSLVHS  Editor,Today, Wednesday, July 22, 2015, I decided to take a hike near my home.  I passed the Lompico Water Company at 10:00am and was quite surprised to see someone power washing the outside of the LWC building.  I was even more surprised on my return trip at 11:00am to see the same person washing the ENTIRE concrete pad in front of the building, including inside the cyclone fencing.My question to the LWC board of directors is:  Why during a severe drought would you either condone or approve this action?  I would like to see a response in the Valley Press so the entire Lompico community you ‘claim’ to serve understands why this action was taken? Regards,Lois A. RothFelton, CA   Dear Editor:Subject:  Vaccine Choice a Human Right The CDC’s vaccine schedule has tripled since the 1980’s.  Its cumulative effects have never been tested for safety against a control group.  A tax of 75 cents per dose goes into a fund to compensate families of vaccine injury and death.  To date, approximately $3.18 billion has been awarded.  Most injuries go unreported, because many parents and some doctors are unaware that the Vaccine Adverse Event Reporting System (VAERS) exists.  Vaccine manufacturers are protected from lawsuits.   Today’s children typically receive 49 doses of 14 vaccines by age 6.  For school and daycare entry, 10 vaccines are now mandated by law.  Beginning July 1, 2016, children will be denied access to daycare, preschool, public and private school for missing the vaccine for Hepatitis B or Chickenpox.  According to the CDC, “Hepatitis B is transmitted when blood, semen, or another body fluid from a person infected with the Hepatitis B virus enters the body of someone who is not infected. This can happen through sexual contact; sharing needles, or syringes.” Chickenpox is a mild childhood illness, and is not routinely vaccinated against in Japan, Great Britain and many other countries, yet Californian children will be forced to homeschool if their parents opt out of this vaccine.   The California Department of Public Health admits that 9 out of 10 cases of whooping cough occur in vaccinated children.  According to the CDC, having more booster shots increases the chance of infection by a certain strain of pertussis bacteria which the vaccine cannot protect against.   There are nearly 300 vaccines in human trials.  Obedience to the ever expanding vaccine schedule is not part of the social contract.  I have vaccinated my children, but do not judge parents who select or forgo vaccination, which is their basic human right. Barbara MatessaBen Lomond   Dear Editor,Response to a recent Letter to the Editor concerning vaccinations and autismAutism is a spectrum disorder and there is no one medical test for it yet I disagree that it is diagnosed by anecdotal evidence. In addition to behavioral testing, the affliction most often coincides with a number of medical/neurological issues including, but not limited to: digestive problems, autoimmune disorders (such as food allergies), seizure disorders, apraxia, dyspraxia, proprioception deficits, loss of or failure to develop language, and impaired social skills. Among other causes, research is finding connections between these symptoms and vaccine ingredients within a sub-set of the population due to an impaired ability to detox. As for supporting evidence, included below is a link to 100 research papers making the vaccine/autism connection: http://tinyurl.com/qadws9g I also recommend reading “Dissolving Illusions” by Dr. Suzanne Humphries and watching the movies Trace Amounts and Bought. In addition to Dr. Wakefield, other doctors and scientists that view vaccines as a possible cause for these symptoms can be found in the research papers noted above. Additional doctors include Toni Bark, Suzanne Humphries and Sherri Tenpenny. More can be found with a simple inter-net search.Regarding herd immunity, it is a theory originating in 1933 when a researcher named Hedrich observed epidemics occurred when less than 68% of a population had developed a NATURAL immunity to a disease. Keep in mind true herd immunity doesn’t require boosters.Lastly, live virus vaccines such as the MMR, Varicella, Rotavirus and Flumist are known to virally shed for up to several weeks and can infect the very people you are trying to protect. Those who consider the unvaccinated or under vaccinated population selfish, may wish to consider quarantining themselves after receiving these vaccines until such time has passed. Natasha Stephenson,Boulder Creek    Dear Editor, While I appreciate the balanced reporting and objective tone of the article by Kira Ruvo, on "The serum that fuels debate", I believe that there is no debate over the connection between autism and vaccines. It has been settled science for many years. There is no connection. None. Nada. Zero. Zilch. A single flawed study is still cited as evidence against vaccines, in spite of hundreds of respected, peer-reviewed studies since then that have proved otherwise. There may be some link between the flu vaccine and Guillan-Barre syndrome, due to the nature of that particular syndrome, and its relationship to the immune system. However the jury is still out. A vast majority of the connections made between vaccines and adverse reactions are based on anecdotal evidence. Most adverse reactions reported are so rare. in relation to the number of vaccines given, as to be considered coincidental. By citing the "debate", without citing the overwhelming scientific evidence supporting vaccines, it only serves to give power to bad science, mass hysteria, and the dumbing down of society. After having serious discussions with vaccine opponents, I gained a sincere respect for many of their positions. And, the legislature did address many of their concerns in the final legislation. However, putting science aside, the divide for us finally came down to their "personal choice" versus the "public good". The inevitable court cases will have to hinge on that debate for the vaccine opponents to have any chance at a reversal of public policy. The efficacy of vaccines is settled law. The question is how far do police powers extend when the public health and safety are at stake. Thank you for a thought-provoking article on an important public issue. And, welcome to the new editor! George HaasScotts Valley

Your Health: Probiotics

Probiotics are microbes (bacteria) that are believed to provide health benefits when consumed, and can be found in certain foods or supplements that contain them.Let's consider the human lower intestinal tract, which is home to some 100 trillion microbes. This is ten times the total number of cells that make up the entire human body. These microbes are considered "good bacteria" and help to digest food, fight some harmful bacteria, and according to some research, may help boost the immune system.An imbalance of good and bad bacteria in your intestines can make you sick. The most common problem from this imbalance comes when we take antibiotics, which can kill the good intestinal bacteria leading to diseases that cause diarrhea. It's fairly common to have an episode of diarrhea during or after taking an antibiotic. Recent studies have shown a significant decrease of antibiotic associated diarrhea when taking probiotics during and up to a week after taking antibiotics. For greatest effectiveness, do not take probiotics within two hours of taking an antibiotic.Probiotics may also help traveler’s diarrhea as well as diarrhea caused by the common "stomach flu."Some other health related conditions have been thought to also be helped by taking probiotics. However, there are few good scientific studies to substantiate these claims. Some of these conditions are:Ulcerative colitis and Crohn's disease.Celiac disease and lactose intolerance.Constipation and irritable bowel syndrome.Bacterial vaginal infections.Probiotics are thought to be generally safe for anyone, but due to a rare risk of infection, those with a known immune deficiency or anyone being treated for cancer should avoid them.Some foods that contain probiotics include yogurt, a fermented dairy drink called Kefir, and some fermented vegetables such as sauerkraut and pickles. While they may contain probiotics, there's no guarantee that they have them in the amount or type that may have health benefits. Only dietary supplements containing probiotics have been tested and may be helpful.Most supplements contain freeze dried bacteria which come alive in your digestive system. These products can be found at most drug stores, supermarkets, heath food stores, and online. They come as tablets, capsules, or as a powder.You need to look for a product that hasup to 10 billion colony forming units per day in a single dose. Check for the expiration date for the live bacteria found on the label and follow directions for proper storage.In summary, although probiotics are touted for treatment of a variety of conditions, the only treatment which seems to hold up to scientific scrutiny is to help prevent antibiotic associated diarrhea. That being said, there appear to be no significant side effects or known health problems for healthy adults who use probiotics for other conditions.Although there are a number of products on the market, from my research, three commonly used probiotics which have some evidence of being helpful are Culturelle, DanActive, and Florastor.Talk with your doctor if you have any questions about the use of probiotics.-Terry Hollenbeck, M.D., is an urgent-care physician at Palo Alto Medical Foundation Santa Cruz in Scotts Valley. Readers can view his previous columns on his website,valleydoctor.wordpress.com, or email him [email protected]. Information in this column is not intended to replace advice from your own health care professional. For any medical concern, consult your own doctor.     

The Right Side of the Tracks

It was summer, 1891. The new town of Ben Lomond rose up several levels—physically and socially. The low ground along the river belonged to commerce. Enterprises of all sorts—store and post office, several salons and, allegedly, houses of prostitution lined the street across from the Pacific Mill. Although Pierce and other promoters hoped to call the road “Ben Lomond Avenue, the name “Mill Street” stuck. Uphill, across the railroad tracks, a sub-division of summer cottages took shape. Prospective residents were lured with the promise of “a perfect system of water works,” and were reminded that the continued presence of the saw mill would provide cheap and accessible building material. Somewhat higher still was the Hotel Ben Lomond, overlooking the river at the north end of town. Pierce had offered to give the site to “any proper and competent party” willing to finish the project, but eventually financed it himself. His assistant, Thomas Bell, architect of the saw mill, supervised the construction. According to W. S. Rogers, the local supervisor at the time, the timber baron was a demanding employer. “We encountered a barley sack lying on the ground, “he recalled. “Mr. Pierce picked it up on the end of his cane and mildly reproved Mr. Bell for permitting such a state of things to exist.” When the new summer resort opened in June, 1889, the San Francisco and Oakland papers touted the convenient railroad station, the local trees and, especially, “good fishing, etc.” The two-story main building was a work in progress. Another twelve rooms were added after the first year and also a children’s dining room. The feature of 1890 was an elegant clubhouse, complete with dance floor, billiard tables, “a lavatory, baths, etc.” The flood of January 1890 rushed harmlessly past the hotel grounds. As the San Lorenzo began to overflow, employees of the store moved its goods across the street to the mill, then they watched as the river knocked a few buildings off their foundations. Hotel Ben Lomond proved popular with society people from the cities that summer. The rooms and cottages were fully occupied, but the profits proved elusive when the landlady left suddenly with the proceeds at the end of the season. Pierce continued to sponsor community amenities. An estimated 3,000 trees were distributed throughout the village —“elm, walnut, ash, locust, red gum and others.” The Land and Lumber Company also constructed a small church and offered it as a free gift to any denomination that promised to initiate regular preaching. The Presbyterians spoke first and claimed the prize. New management was recruited from Santa Cruz and, in the spring of 1891, the resort prepared to accommodate over 100 guests. Water sports — fishing and swimming — were heavily advertised. The Surf liked the combination of cool mountain air and “the pleasure of the piscatorial art.” The Sentinel spoke of “speckled beauties biting at everything bite-able.” Bathhouses, including swimming tanks were erected along Love Creek and the San Lorenzo. Members of Pierce’s large extended family — seven children, including two teenage girls — were frequent guests at his home and the hotel. It is likely that, in addition to business matters, Mr. Pierce discussed his personal plans with his sons and daughters. His wife had passed away several years earlier and the entrepreneur, now in his mid-sixties, intended to marry again. His choice — a widow half his age, who had once worked in his household — did not please his prospective heirs. To keep the peace, Pierce’s lawyers arranged to distribute his corporate holdings before the wedding. In August, a letter from hotel guest Winifred Bowen, Pierce’s 7-year old great-niece, to her sister in England somehow made it into the columns of the Surf. After mentioning the garden and croquet court, she observed that: “There is a nice creek and one day we went down there. There is a pond which I have seen and the men go in swimming. There is a mill pond, which logs used to be pushed into, then taken out and sawed.” Her use of the past tense was correct. The profits from the lumber business had steadily declined, due to competition from mills in Boulder Creek and Santa Cruz, resulting in over-production and price wars. For some time, Pierce had quietly sold off his timber lands and, during the summer of 1891, shut down the Pacific Mill. To Be Continued. Randall C. Brown is a local historian and is a member of the SLVWD Board of Directors     

The Mountain Gardener: Dry River Beds – Beautiful and Beneficial

With so many people replacing their thirsty lawns with low water-use plants, I’m getting lots of requests for ideas about what to do with all that empty space. The sky’s the limit when you have a blank slate. Let me get you started.If your old lawn was in the front you might consider putting in a sitting area for a couple of chairs and a bistro table. Use simple crushed gravel or more formal flagstone underfoot and surround the space with a low seat wall to add a bit of privacy.Adding a dry river bed is another good solution. A dry river bed can slow runoff, spread it out and sink it back into the soil. Connected to a downspout they keep even more rainfall on your own property. If we get the El Nino storms that are predicted this will be a welcome addition to your landscape.A dry river bed is a rock-lined swale that uses rounded river rock in addition to vegetation to allow runoff to soak into the ground. Make sure there is a 2-percent slope from beginning to end to ensure that water is conveyed away from your house to the desired location. Non-woven geotextile fabric is often used underneath the rock.You can create a depression or rain garden at the end of your dry river bed and plant it with plants that tolerate wet feet in the winter. Both a dry river bed and a rain garden allow water to sink back into the ground. The plants remove pollutants from the runoff from roofs or other impervious surfaces.A rain garden might be a simple, shallow depression filled with plants that can flourish in both moist and dry conditions. The size and depth will depend on your how much water you need to capture in a winter runoffSometimes a dry river bed will receive so much runoff that a dry well or dispersal pit is installed at the end. If you have a high water table or clay soil the water may not always soak in fast enough and an overflow device like this is needed. The goal is to keep water on your own property and not in the street or the neighbors’ yard.There are good looking dry river beds as well as bad looking ones. A quick Google image search will show you what I mean. Your goal is to create something that looks like it belongs right where it is. The plants, the accent rocks, the cobble, the location – all need to work together.If your property has a natural slope, follow the natural terrain if possible. You can install a dry river bed on flat land also by creating a channel for the river bed to follow. Keep in mind that even a dry river bed is more interesting if it is not all visible at once. Soft, flowing curves and bends create a natural look.Start with the rocks and cobble. Rounded river cobble looks most natural for the creek bed. In nature, water flowing down a river would round off sharp rock edges to produce cobble of different sizes. A river never has just one size of rocks and yours shouldn’t either.Accent rocks can be any type that you like as long as you get a variety of rock sizes and shapes. Use the larger stones to direct and channel water. Placing rocks on the outside of a curve creates a more natural look.As in all gardens there is always a bit of maintenance to keep things looking and working great. Weeding in the first couple of months while plants become established is important. Replenish mulch as needed until the plants grow in.Periodically remove leaves that have landed in your river bed and reposition rocks moved by runoff to keep your dry creek bed working for you when you need it. Also don’t start your dry creek bed too close to the foundation of your home if that area is flat. You can direct the water through a drain pipe connected to a downspout to a lower starting spot in your garden.So whether you are adding a dry river bed to add interest to your lawn-free landscape or to double as catchment for winter storm runoff, make yours look like it’s always been there. -Jan Nelson, a landscape designer and California certified nursery professional, will answer questions about gardening in the Santa Cruz Mountains. E-mail her [email protected], or visitwww.jannelsonlandscapedesign.comto view past columns and pictures.

Mr. Money

When Scotts Valley Market lowers the price of ice cream, shoppers will buy more ice cream. When the price is raised, shoppers buy less.That’s how it works in most parts of the economy, but not in the stock market – especially nowadays, as passively managed index funds have become overwhelmingly popular.An index fund is a mutual fund or exchange-traded fund (ETF) that aims to replicate the movements of an index, like the Standard & Poor’s 500, which is composed of the 500 largest U.S. companies. Index funds now account for 31-percent of fund assets, up from 14-percent in 2004.Two factors have caused this popularity:  Low cost: Essentially, an index fund is managed by a computer. This is much less expensive than paying a professional manager to research companies and seek out growth and value, as actively managed funds do. Fees for passively managed funds are just 0.2-percent per year compared with 0.79-percent for actively managed funds, according to Morningstar.   Better performance: Index funds have provided better investment results recently. Over five years up to the end of last year, 88.7-percent of fund managers investing in large companies underperformed the S&P 500.So, what’s the problem?My goal has always been to buy low and sell high. But that’s exactly the opposite of what index funds do.Index funds are “market capitalization weighted.” Market capitalization is the total value of the shares outstanding. If a company has 1 million shares outstanding and its shares sell for $10 each, then its market cap is $10 million.The bigger a company’s market cap, the more weighting that company has in an index. The more a company’s stock price goes up, the more shares of that stock an index fund has to buy. Stocks that go down in price see their market cap drop, so index funds have to reduce their weighting.In other words, index funds are required to buy high and sell low.The strategy has been working as more investors and advisors accept the idea that index investing is superior to actively managed funds or individual stock picking. The stampede of money into index funds drives them higher as they bid up the prices of a narrow group of richly valued companies.Instead of tried-and-true method of investing in companies with stock prices that are low relative to their current or expected profits, index funds invest in stocks simply because they have been going up.“When you buy index funds, you’re looking to the future through a rearview mirror,” said legendary investor Leon Cooperman last month on the TV show “Wall Street Week.”I’m not opposed to index funds, and many of my clients own them. They offer diversification for low fees. But low fees do not necessarily equal low cost. If a fund is buying stocks at inflated prices, then it’s not really a low-cost investment, even if the management fees are low.Maybe index funds will continue to outperform other investment strategies. But my experience has been that when a trend continues for years and gets too popular, and everyone accepts that what is happening now is the way it will always be, it’s time to think about alternate strategies.Mark Rosenberg is a financial adviser with Financial West Group in Scotts Valley, a member of FINRA and SIPC. He can be reached at 831-439-9910 or [email protected].

Let’s Go Fishin’: Summer Fishing

Ocean fishing has been the best option for fishing as reservoirs are low and we are lucky enough to live close to the coast. Salmon fishing remains tough, rockfish are a great bet as halibut start to show and albacore tuna seem to be a mystery.If you would like to fish for “what’s biting” that would be rockfish and lingcod! The bay water is warm at 60 degrees and is full of mackerel. The mackerel can be a nuisance at times and also make great bait for ling cod. Anglers are stopping outside the Santa Cruz Harbor in the morning and catching live bait (mackerel) to use for ling cod bait. Halibut and the larger model rockfish also see the mackerel as a tasty food source.Private boaters, rental boats, and charters alike, have been scoring limits of rockfish and lingcod. The limit of lingcod is 3 fish and minimum size is 22-inches, it is common to catch your 3 ling cod and limit of 10 rockfish on an outing. Some anglers may consider if they need that much fish and opt to release the smaller lingcod and or large female fish that may be preparing to spawn. Halibut have been caught, but not as many as one would think. The conditions look very good for halibut but they are not showing up in numbers yet.Boaters have steamed offshore recently in search of albacore tuna with the warm water offshore it is a surprise there have been no catches. Boats hailing form northern California and Oregon ports have had success on albacore and the commercial fleet has started fishing with great success. The past few years have had large numbers of albacore along the Oregon coast as central California did not see many fish. Albacore are highly migratory and migrate East in the spring if they move east and remain North on the Latitude line they may not come south. This appears to be the case with albacore again this year. Anglers may have to go north to get albacore or go another season with no tuna for the home canner, we will see.I am always looking for fishing pictures for the column, if you have one please send it to my email [email protected]. Remember to ad who caught the fish and where it was caught.

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New Faces (July 24, 2015) Theodore Francis Lagier, 8-pound 1-ounce boy, was born to Jocelyn Lagier and Jack Lagier of Scotts Valley at Sutter Maternity and Surgery Center in Santa Cruz. He was born at 6:30 a.m. on May 13, 2015. Lillian Anne Horsley, an 8-pound 3-ounce girl, was born to Ashley Michelle Cunningham and Edward Justin Horsley of Boulder Creek at Sutter Maternity and Surgery Center in Santa Cruz. She was born at 5:31 p.m. on June 24, 2015. Hudson Frank Paulsen, 8-pound 8-ounce boy, was born to Danielle Angellica Sumner and Mark Lars Paulsen of Scotts Valley at Sutter Maternity and Surgery Center in Santa Cruz. He was born at 3:40 a.m. on June 30, 2015. Jason Avery Vallance, 8-pound 9-ounce boy, was born to Adrienne Marie La Capria and Jordan Scott Vallance of Ben Lomond at Sutter Maternity and Surgery Center in Santa Cruz. He was born at 12:04 a.m. on July 16, 2015. Giovanni Salino Malone, a 7-pound 1-ounce boy, was born to Destiny Anne Malone and Vincent Salino Malone of Scotts Valley at Dominican Hospital in Santa Cruz. He was born at 6:12 p.m. on July 17, 2015. 

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