AIR 1. in What May Eventually Come to Be Seen As a Major Victory for Air

AIR 1. In what may eventually come to be seen as a major victory for air- pollution sufferers and what is now a victory for san Diego employers of more than a hundred employees, County Supervisor Brian Bilbray announced Thursday that he was able to convince the state Air Resources Board to reduce the San Diego region's air quality designation from "severe" to "serious". The downward reclassification marks the progress that San Diego has made in improving its air quality over the past several years . There are a number of benefi ts to the region of this reclassification. First, air quality is one of the measures used by relocation specialists in comparing a region's attractiveness to new businesses. Previously, although San Diego residets know that their air quality is basically good, the higher classification had placed it in the "top ten" List of dirty air regions. Most important to smog sufferers, is that Bilbray has helped refocus attention on the real cause of smog - first, "transport smog" carried from the Los Angeles basin on days when the Santa ana winds blow it South, and on those vehicles whose smog devices have been removed, whose engines are out-of tune, or vehicles produced before catalytic converters were introduced in 1981? The San Diego Air Pollution Control District has identified thi s class of vehicles, called "Gross Polluters", as producing fully fifty percent of the mobile source smog, while making up only ten percent of the number of vehicles. Speaking at the press conference, CONNECT Director Bill Otterson said, "you can't begin to solve a problem until you have properly identified it. Now we know that "gross polluters" are the main target, and we can begin to create solutions to this problem. Trying to blame and penalize businesses wouldn't prove effacacious, accoeding to CONNECT's Terry Bibbens, who has been spearheading this issue. "Even if the Trip Reduction Plan program had been completely successful, it would have reduced pollution by only 1 per cent, but it would have cost employers $1,000 - $1200 per employee per year - an amount that exceeds the cost of workers ' compenst i on. Some of the high-tech solutions that might help with the "gross polluter" problem include retrofitable catalytic converters for older cars, smog sensors that can identify polluters while the car is under-way and high precision photo devices that can identify drivers and License numbers of effendi ng cars. "Terry has been working on this problem almost full time, since January, bringing together the Greater San Diego Chamber of Commerce, Economic Development Corporation, the San Diego County Economic Development Committee, the Mayor's Council on Economic Development, the Biomedical Industry Council (BIC), the Biocommerce ?/ (Biocom) the Sierra Club and CONNECT," said Otterson, "and the results are clearly worth the effort. CONNECT members and sponsors with more than a hundred employees could save from $100,000 to $1 million per year!"

UCSD CONNECT 2. CONNECT would Like to thank ...... XXXXXX for generously underwriting the 1994 CONNECT Directory. 3. The Career Services Center at UCSD, can be used for recruiting UCSD undergrads and grads, including engineers, programmers, biologists, marketing types, etc .. CONNECT wants all members and sponsors to keep their Literature on file in the Center ' s Library for access by job applicants. E~loyer Relations Coordinator, Marcy Swain, says there are still plenty of recent grads in teh availability pipeline. Call her at 534-3750 to List job openings or to send Literature. Mention that you are a CONNECT member. 4. Applications are now being taken for CONNECT's Most Innovative Product Award competition. To be eligible, products must have been developed in San Diego and had their first sales betwen Sept. 16, 1992 and Sept. 15, 1993. Categories are: biotech/biomedical, high tech, software and "Other". The Award Luncheon is scheduled Dec. 8. Call 534-6114 for information or an appplication. WARD VALLEY

1 AIR QUALITY CONTROL - TRIP REDUCTION PLANS

1. In what may eventually come to be seen as a major victory for air-pollution sufferers and what is now a victory for San Diego employers of more than a hundred employees, County Supervisor Brian Bilbray announced Thursday that he was able to convince the state Air Resources Board to reduce the San Diego region's air quality designation from "severe" to "serious." The downward reclassification marks the progress that San Diego has made in improving its air quality over e past several years. There are a number of benefits to the ion of this reel · tion. · s · by lac ·o

Most important to smog sufferers, is that Bilbray has helped refocus attention on the real cause of smog- first, "transport smog" carM· from the Los Angeles basin on days when the Santa Ana winds blow it South, and seco . , ose vehicles whose smog devices have been removed, whose engines are out-of-tune, r ehicles produced before catalytic converters were introduced in 1981. The San Diego ir Pollution Control District has identified this class of vehicles, called "Gross Polluters, .. as producing 50% of the mobile source smog, while making up only 10% of the number of vehicles.

Speaking at the press conference, CONNECT Director Bill Otterson said, "you can't begin to solve a problem until you have properly identified it. Now we know that "gross polluters" are the main target, and we can begin to create solutions to this problem." Trying to blame and penalize businesses wouldn't prove efficacious, according to CONNECT's Terry Bibbens, who has been spearheading this issue. "Even if the Trip Reduction Plan program had been completely successful, it would have reduced pollution by only 1 %, but it would have cost / employers $1,000- $1200 per employee per year- an amount that exceeds the cost of workers' compensation.

Some of the high-tech solutions that might help with the "gross polluter" problem include retrofitable catalytic converters for older cars, smog sensors that can identify polluters and high precision photo devices that can identify drivers and license numbers of offending cars.

"Bibbens has been working on this problem almost full time, since January, bringing together the Greater San Diego Chamber of Commerce, Economic Development Corporation, the San Diego County Economic Development Committee, the Mayor's Council on Economic Development, the Biomedical Industry Council (BIC), the Biocommerce Association (Biocom), the Sierra Club and CONNECT," said Otterson, "and the results are clearly worth the effort.

1 UCSD CONNECT

2. CONNECT would like to thank David Winkler and Ivan Gayler, Del Mar Partnership; Jan Thompson, Drake Beam; Russell Snow, First Interstate Bank; Martina Knee, Heller, Ehrman, White & McAuliffe; John McMahon, Johnson & Higgins; Guy Ianuzzi, Mentus, Inc.; Shelley Hanan, Morgan Stanley; Tom Darcy, Price Waterhouse; and Don Felsinger, SDG&E for generously underwriting the 1994 CONNECI Directory.

3. The Career Services Center at UCSD can be used for recruiting UCSD students including engineers, programmers, biologists, marketing types, etc. CONNECI wants all Members and Sponsors to have their literature on file in the Center's library for access to job applicants. Employer Relations Coordinator, Marcy Swain, says there are still plenty of recent grads in the availability pipeline. Call her at 534-3750 to list job openings or to send literature. Mention that you are a CONNECT Member.

4. Applications are now being accepted for CONNECI's "1993 Most Innovative Product Awards" competition. To be eligible, products must have been developed in San Diego and had their first sales between Sept. 16, 1992 and Sept. 15, 1993. Categories are: Biotech/Biomedical; High-Tech Electronics; Software; and "Category X". The Awards Luncheon is scheduled for December 8. Call 534-6114 for information or an application.

WARD VALLEY

5. Daniel Semick, Senior Evaluator, Energy Issues, General Accounting Office (GAO), met with Ken Widder, Chairman, Molecular Biosystems, Inc.; Bernie Rhinerson, Executive Director, Biomedical Industry Council; and CONNECI Director, Bill Otterson to gain X" information for a GAO report onSlteceaflue• i'A Ward Valley. Semick, a major contributor to the GAO report, "New York's Adherence to Site Selection Procedures is Unclear," has been involved with the Low Level Radioactive Waste (LLRW) controversy for years. He first met with Alan Pasternak, Scientific Director, CalRad, where he learned of the frustrations facing the University and biomedical companies regarding LLRW disposal. During his tour, he visited Gensia, Inc. where he saw and photographed that company's temporary storage trailer in the parking lot. He would also like to get photographs of the Salk Institute and Prizm Pharmaceuticals storage facilities. Jc_ 6. It becomes increasingly clear that LLRW disposal is a national iss...,.;1ilai, ti;;.--:;;;..::~ tfl,, l "'5-att Dlegans, is only now becoming apparent on the national scene\ The above mentio GAO report focussed on New York's problems in siting. e 1 Siting decision five years ago! Another report, "Connecticut's First Site Selection Process for a Disposal Facility," dated April1993, analyzes that stafe's first attempt in selecting a site. With this failure, Connecticut is behind New York in its process. Major institutions, like Memorial Sloan Kettering, the National Institutes of Health (NIH), the Mayo Clinic, etc. have no current alternatives other than the soon-to-close Barnwell, South Carolina, site. Yet, the directors of these prestigious institutions appear to be unaware of the approaching storm. Since it would clearly be to' the advantage of California's project proponents to gain the support of the nation on the basis that we are "the lightening rod" or the "LLRW disposal salient," readers can anticipate more efforts from CONNECI on the national level.

2 FEDERAL FOOD & DRUG ADMINISTRATION (FDA) 7 ' 7. Terry Bibbens is continuing to pull together groups to work on the FD Speed-up rogram. This week Dr. Helene Smith former FDA inspector and Porter Novelli, a tio R firm with offices in Washington and ties to Congressman John Dingell's Office, joined the task force. Bibbens repeats his request to CONNECT Members to send him specific examples of FDA delays.

GENETICALLY ENGINEERED FOODS

8. CONNECT's August Director's Luncheon will focus on the Genetically Engineered Foods revolution, featuring speaker Suzanne Huttner, Ph.D., Director of UC's Systemwide Biotechnology Research & Education Program. The meeting will be held at UCLA as a convenience to CONNECT's many Los Angeles-based Sponsors. Call Carole Ekstrom at 534-6114 for more information.

THE ECONOMY

9. The San Diego Economic Bulletin, published monthly by the Greater San Diego Chamber of Commerce; reported that international trade flourished during 1992, with electrical/electronic machinery, non-electrical machinery (including computers) and instruments leading the way. Almost half of the exports went to Mexico or Canada, the nations involved in the NAFT A pact. The Chamber supports NAFTA because it will create new opportunities for San Diego's businesses. NAFTA will create the world's largest open market- 367 million consumers and $6.5 trillion in annual output of goods and services.

$ 10. Employment in the critical manufacturing sectorccontifttieS•to -lag fro1n a year ago by 7. 7%, with total employment down to 116,900. Aerospace is down 16.3% to 19,500 and electronic equipment is down 9.3% to 17,600.

UCSD

11. Although not officially a part of UCSD, the Institute of the America's, headed by Ambassador Paul Boeker has brought favorable comment to the University through its academic work with Mexico and Latin America, most notably, its organization of a binational Cabinet-level meeting on U.S.-Mexico border development in San Antonio July 15-16. Now Ambassador Boeker is planning to expand the Institute and has launched a $2 million building campaign. Boeker hopes to make San Diego a center of the hemisphere's intellectual activity, bringing together leaders from North and South American nations to discuss economic, trade, investment and technology transfer issues.

NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)

12. The Administration filed its expected legal brief to overturn a recent federal court decision to require an Environmental Impact Report on the NAFT A plan. Among the supporters of the Administration was the State of California, who filed an amicus curie. Additionally, the President was expected to name Democratic attorney William Daley as his NAFT A Czar to help the pact through a reluctant Congress.

3 13. Phillip Martin, an agricultural economist at UC Davis told attendees at the Institute of the Americas' third seminar on NAFTA at the Marriott Hotel that Mexican immigration would likely rise in the first years following adoption of NAFTA because of displacements of Mexican workers in the inefficient agricultural industry.

INTERNATIONAL AIRPORT

14. Rep. Randy Cunningham, R-San Diego, entered the Twin Ports fray on the side of Mayor Susan Golding with a letter to Sen. Dianne Feinstein, D-CA., and other members of the Senate Appropriations Committee asking the committee to strike the clause inserted by Rep. Bob Filner, D-Chula Vista, and to ask the Federal Aviation Administration to continue funding the Twin Ports study. Cunningham cited the "broad agreement" that now exists between the Mayor and the City Council for Twin Ports.

LOCAL POLITICS

15. Applications for San Diego City Council positions closed last week, and Councilman Juan Varga was a big winner - no one challenged this incumbant!

16. Mayor Susan Golding was featured in an interview in last Sunday's Union-Tribune editorial section. In a shortened version of the speech covered here that she gave to the Lincoln Club last week, she reiterated the many things she has done for the City since her inauguration: Improvements in the Planning Department, reductions in new regulations, progress in one stop permitting, a proposed re-orientation in thinking for the Port District, a moratorium on new fees, a completed budget, a hundred new policemen, strong leadership in the international airport issue, some progress in privatizing city functions, and in merging city and county functions were mentioned. To this list, she could have added leadership in the critical dispute with the federal Environmental Protection Agency over the absurdity of secondary treatment of effluent pumped into the deep ocean. One fawning local wag remarked, "So this is what leadership feels like!"

17. AI Zieghaus, Partner , Stoorza, Ziegaus & Metgzer has been named senior counselor to the Governor Pete Wilson Committee, according to George Gorton.

18. Recuperating at his Virginia home from triple-bypass surgery is Rep. Ron Packard, R Oceanside. He is expected back in Congress after the Labor Day recess.

PAST WEEK

19. CONNECT's "Meet the Researcher" program met last week to hear speakers fred harris, Professor, SDSU, and Tony Wechselberger, Executive Vice President, 1V/COM International discuss "The Next Revolution in Digital Communications: Digital Signal Processing." Stay tuned for our next meeting on "Advances in Telecommunications."

20. "CFO CONNECT," a new networking group for high-tech company CFOs and controllers met Tuesday to discuss, "The Seven Stages of a CFO's Professional Life." Guest speaker was Adelia Coffman, CFO of QUALCOMM. Moderators were Karin Eastham, CFO,

4 Cytel Corp; Catherine Gauthier, Vice President and CFO, Doctor Design, Inc.,· and Marjorie Sennett, CFO, Amy/in.

UPCOMING

21. Governor Pete Wilson will visit San Diego Wednesday to kick off a new campaign to refocus attention on the desirable facets of doing business in California. Called "California is Back!" Pete will emphasize the new zeal in California's political groups to be "pro-business" and to help create jobs, as shown by such major accomplishments as bringing in a more frugal budget and reforming California's punitive Workers' Compensation system.

22. UCSD CONNECT's "Defense Conversion Roundtable" will be meeting Wednesday, July 28, at the La Jolla Marriott from 4:00-6:00 p.m. to discuss, "New Transportation Technologies." These Roundtables are designed to introduce executives in the defense industry to new opportunities for their technologies and company capabilities. Speakers will be: Eugene Nishinaga, Manager of Research and Development, BART; Robert Parsons, Principal, ['arsons Transportation Associates; and Jerry Woll, Vice President of Engineering, VORAD Safety Systems, Inc. For more information, call Dr. Abigail Barrow at 534-3435.

NEWS FROM SPONSORS AND MEMBERS

23. CONNECT would like to welcome new Sponsors and Members: McCarthy Western Construction, Coast Business Credit, Porter Novelli, and Bien Logic, Inc.

24. Although Ono Pharmaceutical Co. Ltd. of Osaka will not proceed with further development of OcuNex, Telios' treatment for severe dry eyes, citing competition in the Japanese marketplace, Audrey Keane, Director of Corporate Development, said clinical studies in Japan were positive. Telios will begin clinical trials in the U.S.

25. Citing only marginal results in clinical trials with its Pentyde anti-allergical drug, Cam Garner, President, Dura Pharmaceuticals, announced the cancellation of ten-years of research effort.

26. QUALCOMM Inc. announced revenues were dramatically higher for the past quarter--$49 .1 million compared with $27.1 million during the same period last year. With the advent of its CDMA technology for wireless communication, the company appears well positioned to become San Diego's next "Fortune 500" company.

27 . /DEC Pharmaceuticals announced clinical progress using its pan-B antibodies for targeted lymphoma therapy. The company's genetically engineered pan-B antibldy has completed a 15-patient, single-dose, safety study at Stanford Univeristy Medical Center. Preparations are now being made to begin a Phase I/11 multiple-dose safety and efficacy study for the treatment of relapsed B-cell lymphoma.

28. George Damoose, Partner, Procopio, Cory, Hargreaves & Savitch will discuss, "Employee or Independent Contractor: How Do You tell?" on "Inside San Diego Business" with Rick Amato on KFMB AM Sunday, August 8 at 6:00p.m.

5 6 Bill's Editorial July 27, 1993.

Why We Get Confused

Why do we get confused with budget figures they assume that taxpayers will not seek ways of presented by the Government? Perhaps, according to a local editor, because the Government wants us avoiding these higher marginal tax rates. But, wait to be confused. Two cases in point: a dam minute! Aren't we all starting to receive flyers and brochures on "How to Avoid the Tax There's lots of talk about the budget and whether it Collector's Bite." Just last week, I received one should be reduced by $500 billion or only $490 from my life insurance advisor on using 501K's to billion over the next five years. But never are we defer income to retirement. The stated purpose? To given both the outlays and receipts numbers, which reduce the very taxes that the above chart is make up the deficit. Here are the Government's expecting to receive under "Receipts." No wonder, estimates: we are always "surprised" that actual receipts are short of budgeted receipts. Year Outlays Receipts Deficit A Non-class Act 1993 $1,468 $1,146 $322 1994 1,515 1,251 264 One of the fastest growing industries, which is also 1995 1,574 1,324 246 one of the fastest growing job killers is the class 1996 1,625 1,413 212 action torte attorney group. 1997 1,690 1,476 214 1998 1,781 1,531 250 William Lerach, of Rancho Santa Fe, filed a class action suit claiming fraud against Apple Computer, Sources: Office of Management & Budget Chainnan John Scully, and President Michael Spindler. Many class action firms simply wait for Despite real reductions in military spending, outlays a stock to drop precipitously, and then file a pre increase from $1,468 billion to $1,781 billion, written law suit, hoping to win a big settlement for despite claims of "cost cutting." But then, in themselves. Washington jargon, a decrease in planned increases is called a "spending cut." Seagate Technology, a disk drive manufacturer has been sued three times and has settled once. Since But, more. most public companies are covered by insurance, the only winners are the attorneys.· The losers are Saturday, administration officials reported that the companies and their employees, as the cost of California is expected to gain more than 1.9 million the insurance and the nuisance of the suit drain new jobs as a result of President Clinton's budget needed resources from the company. package. The estimate assumed job growth from new federal investments and social spending, but Legislation to dissuade this practice is badly failed to account for the job losses that could result needed, but since the Trial Lawyers Association from higher taxes and other new demands on were big contributors to President Clinton and to employers! Willie Brown, legislative reform will be hard in coming, and California's high-tech and biotech And more. companies will suffer as a consequence.

When budget planners estimate the increased revenue to flow from higher tax rates on the rich, they assume a so called "static mode.l" That is,