Daily Business Report-Jan. 3, 2019
A participant in the Get Fit San Diego Challenge last year. (Credit: SD Regional Chamber of Commerce)
Chamber launches the 2019
Get Fit San Diego Challenge
The San Diego Regional Chamber is bringing a focus on health and wellness to the new year through the annual Get Fit San Diego Challenge. The Challenge is a fun and friendly fitness competition that gives participants a helping hand on their health-related goals while underscoring the importance of a healthy, happy workforce. Sponsored by Kaiser Permanente, registration is now open for the 30-day challenge, which begins Jan. 14.
“The Get Fit Challenge is the perfect opportunity for businesses — and everyone throughout San Diego — to focus on fitness in a fun way,” said Jerry Sanders, chamber president and CEO. “When employees are healthy and happy we see decreased absenteeism which results in more productivity and that’s something that benefits our entire business community.”
The Get Fit Challenge is open to everyone – chamber members and nonmembers, individuals, and teams of five to 10 people. There is no cost to participate. Participants and teams can choose between three levels of competition based on their perceived fitness level: “Back on the Wagon,” “Average Joes,” and “Fitness Buffs.” Those interested in taking part can sign up now by visiting www.getfitsd.org.
In celebration of the start of the Get Fit Challenge and to offer participants an opportunity to network, all Get Fit participants are invited to a chamber mixer on Jan. 24. To help Challenge participants meet their goals and connect further, chamber members will host free fitness events and activities throughout San Diego over the duration of the 30-day event.
For more information or to register for Get Fit San Diego, visit www.getfitsd.org. Businesses in the health and fitness industry interested in participating should email GetFitSD@SDChamber.org.
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Cubic acquires GRIDSMART for $87 million in cash
Cubic Corporation announced the acquisition of GRIDSMART Technologies Inc., a technology-driven business with a differentiated video tracking offering in the Intelligent Traffic Systems market, for approximately $87 million in cash. GRIDSMART, based in Knoxville, Tenn., specializes in video detection at intersections utilizing advanced image processing, computer vision modeling and machine learning along with a single-camera solution providing best-in-class data for optimizing the flow of people and traffic through intersections.
For full calendar year 2019, GRIDSMART is anticipated to contribute approximately $35 million in sales and $8 million of Adjusted EBITDA. Cubic anticipates the transaction will be accretive to cash earnings per share in the first full year of operations, exclusive of transaction fees. Cubic will finance the transaction from its existing credit facilities.
According to Cubic, GRIDSMART has counted and classified more than 43 billion vehicles through 54 million hours of real-world video processing in 7,000 intersections spanning across 1,200 cities around the world.
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H1N1 is primary flu virus
circulating in San Diego, nation
Pandemic H1N1 is the primary influenza virus circulating this season in San Diego and across most of the nation, the County Health and Human Services Agency announced Wednesday.
Of 1,730 lab-confirmed influenza cases reported so far this season in San Diego, nearly 94 percent are influenza A. Influenza A has several subtypes, including Pandemic H1N1 and H3N2. During a typical year, the primary influenza virus is H3N2 or “seasonal” flu. This season, there are 10 cases of Pandemic H1N1 for every case of H3N2.
The Centers for Disease Control and Prevention (CDC) has reported that Pandemic H1N1 is the main influenza virus making Americans sick across the nation. Local and national flu reports show that adolescents and young to middle-aged adults are more affected than other age groups.
The CDC has investigated why H1N1 virus sickens more young people compared to children and older adults, who are typically hit hardest by other flu strains because of their weaker immune systems. Two factors seem to play a part: younger and middle-aged adults have not been exposed to the H1N1 virus as much as older adults, and these groups typically have the lowest vaccination rates in the nation.
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Argo Program achieves milestone
with 2 million ocean measurements
The international Argo network of ocean-observing robots just recorded its two millionth profile, marking a major milestone for the 20-year old observation program.
The robotic floats in the network were developed at Scripps Institution of Oceanography in the 1990s. Now that nearly 4,000 of these floats are deployed in the world’s oceans, the network is giving scientists a comprehensive simultaneous view of all oceans that had never been available before. The maintenance and growth of the network has become a global effort on the part of U.S. agencies such as NOAA, the governments of more than two dozen other countries, academic centers, and support entities ranging from the U.S. Navy to private vessel operators.
“The Argo Program is a hallmark of NOAA’s ocean observing systems. It has revolutionized our ability to track changes in our global oceans,” said David Legler, research chief of the NOAA Ocean Observing and Monitoring Division. “In the wake of Hurricanes Michael and Florence, rising sea levels, and with an El Niño on the horizon, ocean information from systems like Argo is paramount for accurate weather and climate predictions.”
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Kratos books new contracts and
renewals worth up to $65 million
San Diego-based Kratos Defense & Security Solutions has booked new contracts and renewals worth up to $65 million combined to support various space and satellite communications programs. The company said it will provide technology platforms for satellite command, cloud computing architecture, signal monitoring and service assurance applications designed to aid space defense efforts of the U.S. and its allies.
Contract work will occur at various company facilities over a one-year period.
Phil Carrai, president of Kratos’ space, cybersecurity and training business, said the company supports a range of space missions with commercial off-the-shelf platforms, mission-specific applications and cloud enablement tools. The company has started to use a global, commercial network of space-based radio frequency sensors built to help clients identify, locate and address interference challenges.
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Sempra Energy subsidiary to sell
natural gas storage assets to ArcLight
Sempra Energy announced that its subsidiary has entered into an agreement to sell its non-utility U.S. natural gas storage facilities to an affiliate of ArcLight Capital Partners (ArcLight) for $332 million in cash, subject to adjustments for working capital. The facilities will become part of the Enstor natural gas storage platform, which ArcLight acquired in 2018.
The gas storage assets included in the sale to ArcLight are the Mississippi Hub storage facility in Simpson County, Miss., with a working capacity of 22.3 billion cubic feet of natural gas, and the Bay Gas storage facility in Southwest Alabama, which comprises five underground caverns with a working capacity of 20.4 billion cubic feet of natural gas.
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BAE Systems to modernize
USS Shoup under $78 million contract
BAE Systems has received a $78.8 million contract from the U.S. Navy for the maintenance and modernization of USS Shoup, an Arleigh Burke-class guided-missile destroyer. The value of the competitively awarded contract could reach $87.6 million if all options are exercised.
Under the depot maintenance availability contract awarded, BAE Systems will dry-dock the ship, perform underwater hull preservation work, upgrade the ship’s Aegis combat system and its command and control equipment, and rehabilitate crew habitability spaces. The work is expected to begin in March 2019 and be completed in May 2020.
The USS Shoup is the 36th ship in the Arleigh Burke class and was commissioned in June 2002. The ship is named in honor of Medal of Honor recipient and former Commandant of the Marine Corps General David M. Shoup.
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Sycuan to open steakouse, cocktail lounge and swimming pools
Sycuan Casino Resort and Clique Hospitality have announced a partnership as a part of Sycuan’s $260 million expansion. Clique is set to open and operate a steakhouse, a luxury cocktail lounge and pools.
Representatives from Clique and Sycuan will be onsite for several job fairs to fill positions for these venues and more on Jan. 15 and 16 from 9 a.m. to 6 p.m. at Sycuan and another round on Jan. 21 from 10 a.m. to 4 p.m., Jan. 22 from noon. to 7 p.m. and Jan. 23 from 9 a.m. to 3 p.m. at the US Grant Hotel in Downtown San Diego.
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Wells Fargo agrees to pay $10 million penalty
Wells Fargo has agreed to pay a $10 million penalty as part of a settlement agreement with the California Department of Insurance. This settlement resolves the department’s accusations alleging improper insurance sales practices related to Wells Fargo’s online insurance referral program. The improper practices resulted in consumers being signed up and charged for insurance products without their consent.
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How a strange accusation caught fire
and took down an Assembly candidate
Voice of San Diego
When Tasha Boerner Horvath won the 76th Assembly District seat in November, people brought up the race as more proof of a blue wave in Southern California — the seat had previously been held as a Republican.
But the blue wave is far too simple an explanation of what really happened in the 76th District race.
In a new investigative piece, Jesse Marx dug into the strange and damning accusation against Republican Phil Graham in the run-up to the June primary, an accusation police later said was false.
What he found sounds like it came from a conspiracy theory swamp: Not only was there a potentially false accusation of assault from a woman with a history of legal problems, but it was amplified by labor groups and anonymous robocalls that were routed through a Mexican company.
“All of this might have remained hidden from public view if Graham didn’t have the means and incentive to keep pursuing the source of the robocalls, thanks in part to his famous stepfather’s connections,” writes Marx. Graham’s stepfather is former Gov. Pete Wilson.
Graham very well may have lost in June or November regardless of the accusation. But it was a major wrench that had nothing to do with Democrats’ overall success.
Read Jesse Marx’s full report…
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Personnel Announcements
Padres promote Erik Greupner
The San Diego Padres have promoted Erik Greupner to the role of president of business operations. Greupner had served as chief Ooperating officer of the Padres since November 2016, handling day-to-day management responsibility for the organization’s business operations. He previously held various posts with the Padres and originally joined the club in December 2010 as senior vice president, general counsel.
Prior to joining the Padres, Greupner worked with the international law firm Gibson, Dunn & Crutcher LLP. He earned his Juris Doctor degree magna cum laude from the University of San Diego School of Law. Prior to attending law school, Greupner held sales management roles with Goldman Sachs & Company. He earned his Bachelor of Arts degree from Wheaton College, Illinois.
Greupner currently serves as the chairman of the advisory board of trustees of Rady Children’s Hospital Foundation and on the board of directors of the San Diego Regional Chamber of Commerce.
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Lori Boucher joins Bank of Southern California
Bank of Southern California, N.A., a community business bank headquartered in San Diego, has named Lori Boucher vice president, branch manager. She will be responsible for sales and service of both consumer and business relationships at Bank of Southern California’s La Quinta branch in Coachella Valley.
Boucher is a results-oriented leader with a strong track record of performance, bringing 38 years of banking experience, including 15 years as a branch manager. Prior to joining Bank of Southern California, she served as the branch manager of One West Bank’s Indian Wells branch.
“Lori is an outstanding addition to our dynamic Coachella Valley banking team,” said Pam Isaacson, executive vice president and chief administrative officer. “Her strong sales and results-driven experience, along with her extensive industry knowledge and commitment to delivering superior service, will play a key role in growing Bank of Southern California’s regional presence.”
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Bridgepoint Education names Greg Finkelstein as COO
Bridgepoint Education Inc. announced the appointment of Greg Finkelstein to the position of chief operating officer, reporting to CEO Andrew Clark. Finkelstein will oversee the operational and marketing aspects of the business.
Most recently, Finkelstein was an executive in residence for the Education Opportunity Fund at Sterling Partners. In this role, he worked with several partner organizations in EOF’s library and was elected C\chairman of the board of Academic Program International (API), a leading experiential learning partner to educational institutions. API supports the study abroad journeys of students from over 400 institutions in 25 countries. Prior to that, he was a founder of Deltak, one of the first online program management partnership businesses. As its chief operating officer and ultimately its managing director, Finkelstein led the business for over a decade on a steep growth trajectory and through acquisition by Wiley in 2012, until his departure from Wiley earlier this year.\
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Ricky Smiles reappointed to Employment Training Panel
Ricky S. Smiles, 57, of Vista, has been reappointed to the California Employment Training Panel by Gov. Jerry Brown. Smiles has served since 2018. He has been a field representative at the Southern California District Council of Laborers since 2018 and an independent real estate agent since 1995. Smiles held multiple positions at Laborers Local 89 from 2010 to 2017, including president, vice-president and field representative. Smiles was a nuclear construction worker at the San Onofre Nuclear Generating Station from 2005 to 2010. He was a laborer and cement finisher at SSC Construction Company from 2004 to 2005. Smiles was a laborer and cement finisher at Bechtel Corporation from 1995 to 2001.
The position does not require Senate confirmation and the compensation is $100 per diem. Smiles is a Democrat.
