Daily Business Report-Sept. 25, 2019
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California businesses gear up for a tax fight
The California Chamber of Commerce is teaming up with the California Taxpayers Association on a project to head off any talk of expanding sales tax to services. The two are spearheading a new coalition called the California Tax and Budget Research Project.
The goal: Dispel the notion that broadening the sales tax will help reduce California’s budget volatility.
Chamber President Allan Zaremberg: “Once you strip away this pretense, you see that a new services tax is just another tax that will simply make services more unaffordable for all Californians.”
Joining the project are industries that would be targeted by an expanded sales tax: the National Federation of Independent Business of California, accountants, Realtors, contractors, architects, engineers, attorneys, finance and entertainment.
Sen. Robert Hertzberg, a force behind the service tax, said the plan he is envisioning is very different from what Zaremberg is challenging. (See below)
Hertzberg: “They’re fighting World War I. We’ve moved on. It is yesterday’s news.”
Where the tax debate is headed
Californians could avoid some costs imposed by President Donald Trump’s 2017 tax overhaul and avert a property tax hike on commercial property proposed in an initiative headed for the 2020 ballot. So says Sen. Bob Hertzberg, the Los Angeles Democrat, who is taking a leading role in the Legislature in the effort to remake California’s tax structure.
Then: Initially, Hertzberg had been contemplating a tax of as much as 5 percent on services. Now: He has pared it back to 2 percent and would levy it on business-to-business transactions done in California. Any increase would have to be put to a statewide vote.
Hertzberg: “We’ve evolved.”
A benefit: The cost of such a tax could be deducted for federal tax purposes, helping to ease costs imposed on Californians by the Trump tax overhaul, which removed many deductions previously used in this state.
Hertzberg believes the concept as now envisioned would generate more money than the so-called split roll initiative headed for the November 2020 ballot. A split role initiative would alter the 1978 initiative, Proposition 13, by levying higher property taxes on businesses than on residential property owners.
Public employee unions and others are pushing the split role initiative as a way of funding schools and other government functions.
What’s next: Hertzberg intends to unveil details in the coming weeks. Part of it could go on the November 2020 ballot as an initiative that would compete with the split role initiative.
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County to recruit new vendors
at Friday’s Small Business Expo
The county, one of the largest buyers in the region, and it will be recruiting new vendors at the Small Business Expo on Friday.
The county’s Purchasing and Contracting Department will set up shop as one of the many exhibitors at the free one-day event. The expo is taking place from 10 a.m. to 5:30 p.m. at the San Diego Convention Center.
The county manages a contract portfolio of more than $9 billion.The department is always on the lookout for vendors to provide the many services and supplies it needs to keep County government running.
The department makes a concerted effort to find local small businesses as well as local businesses owned by veterans and disabled veterans, and regularly holds workshops on how local owners can do business with the county.
“Our job is to secure the highest quality goods and services necessary to support our county departments in a timely and efficient manner,” said Purchasing and Contracting Director Jack Pellegrino. “The more competition, the better contracting results for the county, which in turn allows us to better serve the public and ensure taxpayers’ dollars are wisely spent.”
Expo visitors can learn more about business opportunities with the county at exhibitor booth 513.
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CAL FIRE awards Northrop Grumman
contract for remote sensing data on wildfires
Northrop Grumman Corporation has received a contract award from the California Department of Forestry and Fire Protection (CAL FIRE) for a proof of concept demonstration referred to as FireWatch.
This contract will allow Northrop Grumman’s Computer-Aided Dispatch (CAD) system, installed at CAL FIRE, to receive fire detection and location information from fused remote sensing data, enabling early detection so that first responders can take quicker action against fires as they emerge.
The ability to share remote sensing data aided in the response to California’s devastating fires in November 2018. With support from Northrop Grumman, U.S. government agencies were able to share information rapidly as fires changed course or new flare-ups emerged. This contract will formalize the delivery of these capabilities, thereby enabling CAL FIRE to respond even more proactively and decisively to the threat of wildfires, officials said.
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Lyft launches new scooters in San Diego
Lyft has launched its first scooter model built from the ground up specifically for scooter-share in the San Diego area. San Diego is one of the first markets Lyft is launching these new scooters, distinguished by their pink wheels.
Lyft designed this model with: wider base (20 percent wider than the previous model) for a more comfortable riding stance; thicker, air-filled wheels for a smoother trip on city streets; more durable build to better handle the outdoor elements; more powerful battery that can charge faster and last significantly longer than current models, riding further on a single charge; a hand brake, similar to a bike brake; battery embedded into the base for improved balance while riding; kickstand at the front of the scooter for more comfortable riding.
“The new Lyft scooters take the rider experience to the next level,” said Kyle Zuvella, market manager for Lyft Bikes and Scooters in San Diego. “For the first time, Lyft scooters will also feature our iconic pink wheels, making it undeniably clear that scooters are central to Lyft’s vision for a future where cities are built around people, not private cars.” ____________________
SDG&E seeks to eliminate seasonal
fluctuations in electricity pricing
San Diego Gas & Electric’s residential customers could see lower electric bills next summer under a proposal the company filed with the California Public Utilities Commission (CPUC) to eliminate seasonal pricing changes, which often creates bill spikes during hot summer months.
If approved by the CPUC, a typical residential customer would see their summer bills reduced by about $7 per month. Under the existing seasonal pricing structure, the pricing per kilowatt hour is adjusted twice a year. During the summer months, June-October, rates are adjusted higher to encourage conservation because energy demand tends to be higher during hot months. Winter rates are lower and in effect from November to May.
By eliminating seasonal changes in pricing, SDG&E’s proposal is intended to reduce bill volatility in the summer and provide customers with more consistent bill amounts throughout the year, so it’s easier for them to budget for household energy expenses.
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Civita honored as ‘Best Urban
Master-Planned Community of the Year’
Civita, the 230-acre, urban-infill village in Mission Valley, was acclaimed the “Best Urban Master-Planned Community of the Year” at the San Diego Building Industry Association Icon Awards on Saturday. Civita, which welcomed its first residents in 2013, is transforming a 70-year-old sand and gravel quarry into a community where residences, village retailers and businesses are interspersed with parklands, open space, pedestrian-friendly streets and walkways.
Developed by Sudberry Properties in partnership with the Grant family, which mined the property since the early 20th century, Civita has become a national example of sustainability, walkability and sophisticated architectural design.
The Civita Recreation Center, a 2.5-acre resort-style rec center with lagoon pool and lap pool, a fitness center and several multi-use areas, was honored as the “Best Community Amenity” by the Icon Awards. The center was designed by Bassenian Lagoni Architects.
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Aethlon announces collaboration to identify
exosomes involved in cancer progression
Exosome Sciences, a subsidiary of Aethlon Medical Inc., announced a research collaboration to identify and characterize exosomes derived from patients with solid tumors such as pancreas cancer, as well as from families with genetically high risk of developing cancer. These cancer-derived exosomes may serve as early markers for cancer diagnostics, cancer progression and treatment resistance.
Click here for more information.
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Cubic rolls out world’s geographically
largest contactless payment project
Cubic Corporation’s Cubic Transportation Systems business division successfully completed the implementation of Sydney’s new Opal contactless payments system, with final installations happening this week across the bus network.
Millions of commuters are now tapping their way across the huge transport network of buses, ferries, trains and light rail in Australia’s largest city by simply using their contactless credit or debit card, mobile phone, mobile device or Opal card.
1.4 million unique contactless credit and debit cards have been used so far on the Opal network. In geographical terms, it’s the world’s largest contactless system covering 40,000 square kilometers – as big as Switzerland, Denmark or the Netherlands.
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Illumina, Adaptive Biotechnologies partner
on IVD test kids for immune sequencing
Adaptive Biotechnologies announced a non-exclusive partnership with Illumina to develop distributable in vitro diagnostic test kits for Adaptive’s ClonoSeq and ImmunoSeq Dx assays. Under the terms of the agreement, Adaptive will develop the next-generation sequencing-based IVD assays to run on Illumina’s NextSeq 550Dx system. Adaptive will be responsible for obtaining the necessary regulatory approvals for each kit and for commercializing them.
The partnership comes as San Diego-based Illumina is expanding the clinical applications of its NGS platform. Last year, Illumina CEO Francis deSouza said he expects clinical
sequencing to soon account for more of the firm’s business than the research market. And
in 2018, the company signed deals to develop companion diagnostics to run on its NextSeq 550Dx with Bristol-Myers Squibb and Loxo Oncology.
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Composting system enables city to
process 40,000 tons of organics yearly
SCS Engineers (SCS) working with the city of San Diego has designed and constructed a covered aerated static pile (ASP) composting system at the Miramar Landfill Complex. The ASP composting system can process more than 40,000 tons of organic waste per year.
“This unique system diverts more organic material to composting, and helps the city of San Diego achieve its goal to reduce the waste flow into the landfill while achieving environmental objectives,” said Pat Sullivan, senior vice president at SCS. “The SCS team for this project had the design, engineering, and construction experience to complete the project and achieve the city’s objectives.” The team was led by Project Manager, Vidhya Viswanathan, who has extensive experience leading SCS’s work in San Diego.
There are two key components to the city’s organic waste diversion effort, which include a program to divert 60,000 tons of edible food to food-rescue nonprofit organizations integrated as part of the city’s holistic plan. Including the composting system, San Diego is efficiently diverting 100,000 tons of organic waste from the landfill.
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San Diego ranks in top 20 for flexible
office space markets in the U.S.
San Diego is the 17th largest flexible office space market in the U.S., according to a new report from CBRE. The market’s flexible-space inventory jumped to 1.19 million square feet by the end of the second quarter 2019, an increase of approximately 563,000 square feet or nearly 90 percent, since 2016.
Flexible space accounts for 1.5 percent of San Diego’s total office inventory. This ratio compares with the U.S. average of 1.8 percent, indicating that there still is room for growth in the San Diego market. Flex space in the region is now present in 55 locations across the area, operated by 25 different operators.
“While growth of coworking space in Downtown San Diego remains strong, flexible space operators are beginning to penetrate into lab space, allowing them to tap into the robust life science and biotech industry in areas like UTC and Torrey Pines,” said John Frager, executive managing director at CBRE’s San Diego office. “Because of the high upfront costs associated with lab equipment, more biotech companies are turning to flexible space operators as a more scalable and affordable solution.”
The central San Diego area boasts the highest concentration of flex office space, accounting for 41.5 percent of the county’s total inventory and has also been home to 51.5 percent of the total transactions in this space over the past year, according to the CBRE report.
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Pardee Homes opens Solmar townhomes
at Playa Del Sol in South County
Pardee Homes has opened its new Solmar townhomes at Playa Del Sol in south San Diego. The residential neighborhood’s first phase will feature 12 townhomes starting in the high $300,000s.
Solmar offers five floorplans, which include up to four bedrooms, and three and a half bathrooms with spacious two car garages. Ranging between 1,310 to 1,915 square feet, Solmar provides large living areas and outdoor decks, as well as customizable options to personalize the home.
The neighborhood also includes a new recreation center with amenities, a fitness center, large pool and joint use spaces for entertaining or relaxing.
Solmar is part of Pardee’s master-planned Ocean View Hills community.
