Daily Business Report-July 26, 2018
A National Guard C-130 dropping fire retardant. (File: Calmatters)
Gov. Brown wants to help
utilities on wildfire costs
By Dan Morain | CALmatters
In a move certain to be embraced by utilities, Gov. Jerry Brown proposed Tuesday that the state ease the liability standards when electricity providers’ equipment sparks fires that destroy property.
Market reaction: Shares of Pacific Gas & Electric, Edison International, and Sempra spiked upward on the news.
Brown sent his proposal to legislators as they prepare for hearings beginning today focused on liability issues raised by wildfires, and as the National Park Service closed Yosemite as a wildfire consumed 36,000 acres. Brown: “If we do not take action today to prepare for and anticipate the extreme weather events of tomorrow, we will pay for it dearly.”
PG&E is reviewing the proposal. Steve Malnight, PG&E’s senior vice president for strategy and policy, told CALmatters: “The status quo is not sustainable for the utility industry across California.”
Sen. Jerry Hill, a San Mateo Democrat and PG&E critic: “PG&E keeps breaking the law, so they’re trying to change the law.”
Insurance industry statement: “This proposal’s weakening of well-established liability standards is nothing more than a utility bailout …”
Bottom line: The 2018 wildfire season is worse so far than the 2017 season, which was among the worst in history. The utilities are powerful players in the Capitol and Brown, though in his final months in office, remains influential. That suggests some change is coming.
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Highest asking rates on record in
San Diego’s retail market in 2nd Quarter
The San Diego retail market had the highest asking rate on record in the second quarter of 2018, according to a CBRE report.
The San Diego retail market fundamentals provided some optimism with increased leasing activity and elevated asking rates. After a steep decline in Q1, the average asking rate increased significantly in Q2, up $0.13 to $2.39 triple net (NNN), which is the highest rate on record. Leasing activity reached 645,341 square feet, up 14.6 percent from Q1, driving the availability rate down 20 basis points to 7.0 percent. Several large leases were from new tenants replacing previous tenants, not vacant spaces, so they had no positive impact on absorption which was negative for the second straight quarter.
“The San Diego retail market remains strong with record high asking rates and increase leasing activity,” said Joe Yetter, first vice president of CBRE in San Diego. “Tenants continue to pursue higher grade properties which demand higher asking rates that are pushing average rental rates up. We are seeing asking rates for quality Class A shopping centers at an all-time high.”
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City appeals rulings on legality of
SoccerCity, SDSU West ballot initiatives
Times of San Diego
The San Diego City Council on Tuesday backed City Attorney Mara Elliott’s appeals over the legality of two initiatives to redevelop the Mission Valley stadium site. Both SoccerCity and SDSU West proposals were ruled qualified for the November ballot in two separate cases by different judges.
The City Council voted 5-3 to allow Elliott to go forward with separate appeals for each initiative.
“The Soccer City and SDSU West initiatives essentially force the lease or sale of city assets on terms set by the proponents,” Elliott said in a statement. “By filing writs with the Fourth District Court of Appeal, the city seeks clarity on whether this unprecedented use of the initiative process is legal.”
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Dolphin Mine Hunting Operation
SAN DIEGO BAY — A bottlenose dolphin in the U.S. Navy Marine Mammal Program (NMMP), part of the MK 7 Marine Mammal System, searches for an exercise sea mine alongside marine mammal trainers. The NMMP is conducted simulated mine hunting operations in Southern California during a Rim of the Pacific (RIMPAC) exercise on July 22. Twenty-five nations, 46 ships, five submarines, and about 200 aircraft and 25,000 personnel are participating in RIMPAC ( June 27 to Aug. 2) in and around the Hawaiian Islands and Southern California. The world’s largest international maritime exercise, RIMPAC provides a unique training opportunity while fostering and sustaining cooperative relationships among participants critical to ensuring the safety of sea lanes and security of the world’s oceans. RIMPAC 2018 is the 26th exercise in the series that began in 1971. (U.S. Navy photo)
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Depleting microbiome with antibiotics
can affect glucose metabolism
A new study from the Salk Institute has found that mice that have their microbiomes depleted with antibiotics have decreased levels of glucose in their blood and better insulin sensitivity. The research has implications for understanding the role of the microbiome in diabetes. It also could lead to better insight into the side effects seen in people who are being treated with high levels of antibiotics. The study appeared in the journal Nature Communications on July 20, 2018.
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New strategy for cancer therapy
spells double trouble for tumors
Scientists at Scripps Research have uncovered a new strategy to kill tumors, including some triple-negative breast cancers, without harming healthy cells, a discovery that could lead to more ways to treat tumors while reducing side effects. The study, published recently in Nature Communications, shows that a molecule in cells, called Rad52, repairs special kinds of damaged DNA that accumulate in some cancers. A future therapeutic could inhibit Rad52, robbing cancer cells of this repair mechanism.
“This could give us a way to kill tumors without harming normal cells,” says Xiaohua Wu, professor at Scripps Research and senior author of the study. “That’s the future. That’s the goal for targeted cancer treatments—to make these treatments a part of precision medicine.”
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Water Authority expands water-use
efficiency opportunities for low-income homes
The San Diego County Water Authority is expanding a long-running partnership with San Diego Gas & Electric to increase the availability of devices that save both water and energy for thousands of income-qualified residents across the region. The Water Authority’s investment of $150,000 will supplement funding for water-saving devices, allowing SDG&E’s Energy Savings Assistance Program to serve more customers. Approximately 21,000 residents annually have participated in the program, receiving assistance for devices such as low-flow showerheads and efficient washing machines.
Eligibility for SDG&E’s no-cost energy- and water-efficiency improvement program for homes is based on income and household size, or by household participation in certain public assistance programs. A family of four may be eligible if it earns a maximum combined annual income of $50,200. Click here for details about the Energy Savings Assistance Program, including eligibility requirements.
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Veteran’s Coalition hosting
Entrepreneur Summit Sept. 15
The San Diego Veteran’s Coalition and it’s community partners are hosting the San Diego’s 2nd Annual Military, Veterans, & Spouses Entrepreneur Summit on Saturday, Sept. 15 at Liberty Station. Attendees will learn about starting a business, financing a business, growing a business, doing business with the government, and franchising.
The summit will provide extensive resources to help veteran’s stay connected and be inspired. This year’s summit will feature a “Pitch Off Competition” in front of angel investors where the winner could walk away with a $10,000 prize. The event is expected to sell out with 300+ in attendance.
Fees are $25.00 to register (free for military active duty – use discount code: Msummit2018). Registration includes continental breakfast and lunch. Interested Veteran’s and other military and spouses can register
at www.veteranentreprenursummit.vet
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San Diego Tourism Marketing District
announces FY 2019 board of directors
Richard Bartell, president of Bartell Hotels, is the new president of the San Diego Tourism Marketing District board of directors for fiscal 2019.
Bartell has been a member of the SDTMD board since its creation in 2008 and has served at the helm of San Diego-based Bartell Hotels for more than 35 years.
Joining Bartell as officers on the board are Vice-Chairman C. Terry Brown, president of Atlas Hotels; Secretary Colleen Anderson, general manager of Omni San Diego; and Treasurer Vikram Sood, senior vice president of RAR Hospitality. Serving on the SDTMD board are Matt Greene, senior vice president of operations for Evolution Hospitality, joined by new board members Ilsa Butler, senior vice president of sales and marketing for Evans Hotels; Tim Herrmann, general manager of Marriott Marquis San Diego Marina; and Steve Cowan, general manager of Hilton San Diego Bayfront.
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Supervisors waive rebuilding, records
fees after July wildfires destruction
Residents who lost their homes in the July 2018 Wildfires will not need to pay for rebuilding permits or for vital records replacement, after the County Board of Supervisors voted Wednesday to waive those fees.
The wildfires broke out in extreme weather conditions on July 6 in Alpine and Dulzura and quickly burned out of control. More than 500 acres burned including 55 homes and 34 accessory buildings.
The board passed a resolution to identify the geographic areas of the July 2018 Wildfires disaster and make affected residents eligible for plan check review and rebuilding permit fee waivers for legal structures destroyed or damaged in the fire. The fee waivers would only apply for those homes in the unincorporated area or areas that require County permitting.
The resolution also authorizes the County Assessor/Recorder/County Clerk to issue free replacement of marriage, birth, and death certificates as well as some real estate documents that were destroyed in the fire.
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Personnel Announcements
Don Bufalini named product innovation manager
DuChâteau, a San Diego-based company involved in the design and manufacture of luxury architectural finishes from custim flooring to wall coverings, has named Don Bufalini its first product innovation manager.
Bufalini will play a critical role in helping the company bring new products to market. He will primarily be responsible for product design and development, quality control, researching product and industry developments and monitoring trends.
Bufalini joined DuChâteau in 2007 when it was just forming and has 15 years of experience in the flooring industry. He has been promoted to several roles within the company during his career, including developing product samples, outside sales, strategic planning, marketing, account management and customer service. He most recently served as West Coast regional sales manager.
Prior to joining DuChâteau, Bufalini spent two years with a regional flooring company based in Southern California. He earned his bachelor’s degree in fine and studio arts from Long Beach State and his Bachelor of Business Administration from the University of Phoenix.
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Jessica Pride named board president
at The Center for Community Solutions
The Center for Community Solutions (CCS) has inducted attorney Jessica Pride of The Pride Law Firm as board president. Pride has devoted the last seven years at CCS empowering survivors of sexual violence with legal counsel. In past years, she has served as vice president on the CCS Board of Directors, on the CCS Executive Board and as co-chairperson of the annual CCS Tea & Tonic fundraiser.
CCS helps more than 23,000 victims of sexual assault each year by providing counseling, advocacy, education, and legal services. CCS is San Diego’s only rape crisis and domestic violence center.
Jessica Pride is the managing partner at The Pride Law Firm, which assists victims of sexual assault.
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California may be first state to require
public universities to offer abortion pills
Elizabeth Castillo | CALmatters
A bill advancing in the Legislature would make California the first in the nation to require that abortion pills be available at on-campus health centers. The legislation, which has passed the Senate and is advancing in the Assembly, would mandate that all California State University and University of California campuses make the prescription abortion drug RU 486 available at their on-campus student health centers by Jan. 1, 2022.
Funding, at least for the first year, would be provided not by taxpayers but by donations from a private foundation.
Advocates say making the drug available on campus is an essential part of guaranteeing access and ensuring that college women are able to terminate a pregnancy, if and when they choose.
But opponents say the proposed law is a solution in search of a problem, and that it could endanger women’s health and potentially saddle public universities with additional ongoing costs. They note that campus health centers currently refer students to off-campus abortion providers, and that UC and CSU campuses are located an average of less than 6 miles from such facilities.
