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Daily Business Report-April 2, 2015

Daily Business Report-April 2, 2015

 Gov. Jerry Brown speaks at the San Diego County Water Authority.

Governor’s Order to Cut Water

Usage by 25 Percent Gets Support

Assembly Speaker Toni Atkins and the San Diego County Water Authority said Wednesday they stand behind Gov. Jerry Brown’s order that cities and towns across California implement mandatory restrictions to reduce water use by 25 percent.

“As the drought continues to grow in depth and duration, so must our efforts to increase water conservation and efficiency in every part of the state,” Atkins said.

Brown issued his order in response to the lowest Sierra snowpack ever recorded.

Mark Weston, chairman of the Water Authority Board of Directors, said the snowpack reading showed the urgent need for water conservation, both locally and statewide.

The governor accompanied state officials to the Lake Tahoe area, where water experts measured the snowpack, which is a major source of water for the state but has been severely depleted to the ongoing drought.

“Today we are standing on dry grass where there should be five feet of snow,” Brown said. “This historic drought demands unprecedented action. Therefore, I’m issuing an executive order mandating substantial water reductions across our state. As Californians, we must pull together and save water in every way possible.”

Brown also ordered the replacement of 50 million square feet of lawns throughout the state with drought-tolerant landscaping; the creation of a statewide rebate program for consumers who replace old appliances with more water-efficient models; mandatory reduction of water use at campuses and golf courses; and banning the use of potable water for irrigation at new homes and developments.

Local water agencies were also ordered to implement “conservation pricing,” aimed at penalizing customers who overuse water.

“Our decimated snowpack shows that Gov. Brown is right to put these strong, mandatory steps in place,” Atkins said. “Getting through this drought and future droughts to come will take a combination of immediate, short-range and long-term steps. The governor’s order today is the right step at the right time.”

Weston said the Water Authority, which receives water from the Metropolitan Water District and Colorado River and distributes it to local water districts, is still reviewing the governor’s order but “will do everything possible” to help the region comply with the mandates.

“San Diego County has prepared prudently for drought conditions, but we are entering uncharted territory after four dry years coupled with record high temperatures,” Weston said.

The SDCWA issued mandatory water use restrictions last July, including watering only at certain dates and times, fixing leaks within 72 hours and eliminating runoff from irrigation systems.

City News Service

McDonald’s to Raise Minimum

Wage at Company-Owned Stores

McDonald’s officials said about 10 percent of the restaurants in the country are company-owned, and the new benefits will affect about 90,000 employees.

McDonald’s officials said about 10 percent of the restaurants in the country are company-owned, and the new benefits will affect about 90,000 employees.

Some fast-food workers who took to the streets in a series of protests to call for salaries of $15 an hour could be getting more money, with McDonald’s announcing Wednesday it will give raises and paid time off to some of its employees.

According to McDonald’s, workers at company-owned restaurants will be paid $1 an hour more than the prevailing minimum wage in the communities where the eateries are located, beginning July 1. Full- and part-time workers will also be able to accrue personal paid time off after one year of service.

The benefits, however, apply only to company-owned eateries, since the owners of franchised restaurants can set their own salaries. McDonald’s officials said about 10 percent of the restaurants in the country are company-owned, and the new benefits will affect about 90,000 employees.

The company said it is also hopes to assist all of its roughly 750,000 employees, in both company- and independently-owned restaurants, further their education by expanding its Archways to Education tuition-assistance program.

“We’ve listened to our employees and learned that — in addition to increased wages — paid personal leave and financial assistance for completing their education would make a real difference in their careers and lives,” McDonald’s President/CEO Steve Easterbrook said.

Workers from McDonald’s and other fast-food restaurants have taken part in a series of protests in San Diego and across the country in recent months. Two marches were held in San Diego last year.

The San Diego City Council has been pushing for an increse in the city’s minimum wage, voting twice for the increase, but the measure stalled because of a referendum effort by the business community.

— City News Service

Latitude 33

Latitude 33

Latitude Apartments Sell for $58.5 Million

Latitude 33, a 198-unit luxury apartment projet in Escondido, has been sold to R&V Management Corp. for $58.5 million. The sellers were Escondido Venue,LLC and Escondido Paramount LLC.

The property was developed in 2012 by Lyon Communities. It holds 82 midrise units and 116 townhomes. Amenities include central air conditioning, balconies and patios, in-unit washers and dryers, and garage parking. The complex also has a clubhouse, business center, fitness center as well as a pool and spa.

Cushman & Wakefield represented the sellers.

Teva Pharmaceuticals to

Acquire Auspex Pharmaceuticals

Teva Pharmaceutical said on Monday that it had agreed to acquire Auspex Pharmaceuticals, a developer of drugs that treat people with movement disorders, for about $3.2 billion in cash.

In the latest acquisition in the pharmaceuticals industry, which is in the midst of a flurry of deal-making, Teva will pay $101 a share for Auspex. Including debt, the deal is worth $3.5 billion, and the boards of both companies have approved it.

Based in Jerusalem, Teva is the biggest maker of generic drugs in the world. Auspex, based in La Jolla, does not have any products for sale yet, but is developing several drugs that focus on the central nervous system to treat disorders like Huntington’s disease, tardive dyskinesia and Tourette syndrome.

AeroVironment, Northrop Grumman

Selected to Develop Naval Drones

U.S. Defense Advanced Research Projects Agency (Darpa) has selected AeroVironment and Northrop Grumman as prime contractors for the second phase of a program to design an unmanned aircraft system capable of operating from small naval ships. The agency will choose one of the two contractors for the program’s third phase to build a full-scale demonstrator, initially for ground testing.

CyberKnife, Oncology Therapies and

Pacific Readion Oncology Join Scripps

CyberKnife of Southern California at Vista, Oncology Therapies of Vista and Pacific Radiation Oncology in Encinitas have joined Scripps Clinic Medical Group in an agreement completed Wednesday.

The agreement expands Scripps’ radiation oncology services in North County and adds another specialized treatment option — CyberKnife stereotactic radiosurgery — to Scripps Health’s comprehensive cancer treatment offerings.

CyberKnife surgery is a non-invasive alternative to traditional surgery and conventional radiotherapy. It delivers high doses of radiation with extreme accuracy and is established as an effective treatment for cancers and tumors located in the brain, head and neck, lung, pancreas, prostate, spine, liver and kidneys.

Carl DeMaio Takes a Talk Show Job

Failed mayoral and congressional candidate Carl DeMaio has taken a job with Radio 600 KOGO to appear in a weekday afternoon talk show.

DeMaio and Bob Sully Sulivan will host the “DeMaio-Sullivan Report,” which the sation said “will combine investigative journalism with inside knowledge of politics and an eye on advancing solutions.” It airs from 1-4 p.m. beginning today.

DeMaio served a single term on the San Diego City Council. He lost to Bob Filner in the 2012 San Diego mayoral election and lost to Congressman Scott Peters in 2014 in the 52nd District Congressional race.

Personnel Announcements

Tri-City Medical Center

Selects Chief Operating Officer

Kirkpatrick Conley

Kirkpatrick Conley

OCEANSIDE — Health care professional Kirkpatrick “Kapua” Conley has accepted the position of chief operating officer at Tri-City Medical Center. Conley has more than a decade of experience in health administration and general management.

Most recently, Conley served for three years as CEO of Fallbrook Hospital in North County. Fallbrook Hospital was managed by CHS Affiliated for the Fallbrook Healthcare District. Conley was directly responsible for oversight of all hospital, clinic and skilled nursing operations and was able to improve operational efficiency, decrease staff turnover and help earn a 2013 Top Performer on Key Quality Measures rating from the Joint Commission.

From 2010 to 2012, Kirkpatrick was CEO of Mesa View Regional Hospital in Mesquite, Nev. and, from 2008 to 2010, assistant CEO at Oro Valley Hospital in Tucson, Ariz.


Colliers International Names

Managing Director of Region

Andy La Dow

Andy La Dow

Andy La Dow has been hired by Colliers International as managing director of the San Diego region. La Dow will oversee operations in the Carlsbad and San Diego offices of Colliers International and its approximately 100 commercial real estate professionals.

La Dow has more than 31 years of commercial real estate experience in San Diego specializing in representing office building and institutional landlords and corporate office users. Most recently, La Dow was senior managing drector at DTZ, formerly Cassidy Turley. La Dow is a graduate of Northern Arizona University.



Hecht Solberg Adds 2 Associates

Sara Vakulskas

Sara Vakulskas

Talon Powers

Talon Powers

Hecht Solberg Robinson Goldberg & Bagley LLP has named Sara Vakulskas and Talon Powers as associates of the firm.

Vakulskas will provide support to all practice groups, which include real estate, business and finance transactions; land use, planning and entitlements; common interest developments; and litigation and risk management. Vakulskas, who was admitted to the State Bar of California in 2014, graduated magna cum laude from University of Minnesota Law School in Minneapolis where she was honored with the Peterson and Dean Distinguished Full Tuition scholarship; Best Brief in Section Award; and Honors designation in Legal Writing and Research.

Powers will work in all firm practice areas, with particular emphasis on litigation, risk management and transactional matters in real estate, business and finance. Powers, who was admitted to the State Bar of California in February 2014, earned his Juris Doctor, cum laude, from University of Minnesota Law School in Minneapolis. While attending he was article submissions editor and staff member for the Minnesota Law Review. He was also a Walter J. Trogner Scholar (Full Merit Scholarship).

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Voice Your Opinion

We Want Your Opinions on San Diego’s Big Issues In the coming months, Probosky Research (one of California’s leading opinion research firms) will continue its partnership with SD METRO to survey San Diego residents about topics of interest to our readers. We’d like to throw open the door for suggestions for topics. What do you want to know? What do you think you know, but aren’t sure? What are you certain you know, but want to prove it beyond doubt? Ideally, we’d like to see questions that have to do with public policy.

Some areas may include Mayor Filner’s first 100 days job performance, should the city be responsible for economic growth and the creation of new jobs, how important are infrastructure improvements to our daily lives (streets and bridges, etc.), how important is water independence, how satisfied are residents with public transit or how do city residents value Balboa Park and other open spaces? Do you believe the City Council should revive the Plaza de Panama plan for Balboa Park?

You can email Probolsky Research directly with your ideas: