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FloQast Raises $100 Million, Eyes IPO

Leader: Mike Whitmire is the co-founder of FloQast. (Photo by David Sprague)

When Mike Whitmire co-founded accounting workflow automation platform FloQast Inc.
in 2013, he wanted to address and streamline
the pain points of business accounting work that he had experienced firsthand.

The Sherman Oaks-based company has since grown to serve about 2,800 clients and recently reported a post-money valuation north of $1.6 billion. FloQast closed a $100 million series E round this month and is now charging towards an initial public offering.

When managing financial operations at a business, an accountant must handle tasks such as month-end closes, compliance and risk management, daily processing treasury, procurement, reporting and balance sheet reconciliation. FloQast’s tools include a collaboration workflow software platform that supports processes such as month-end close and reconciliation automation, reporting and compliance management, as well as free professional education and development courses.

Its products are used by public and private clients, including Twilio Inc., the Los Angeles Lakers, Shopify Inc., the Golden State Warriors, Docusign Inc. and Snowflake Inc. The platform is offered on a SaaS model which is priced based on a clients’ company and team size. Additional revenue for FloQast comes from implementation-related service fees.

Background in accounting

Team: FloQast’s Cullen Zandstra, left, Mike Whitmire and Chris Sluty. (Photo by David Sprague)

As a licensed certified public accountant, Whitmire previously spent three years as a senior accountant at Santa Monica-based software provider Cornerstone OnDemand Inc. While there, he worked extensively on Cornerstone’s IPO in 2011, which he said was executed in a 12-month period. Cornerstone later went private in 2021 through a reported $5.2 billion acquisition by Santa Monica-based Clearlake Capital Group.

Whitmire said that his time with Cornerstone allowed him to learn about how a sales department interacts with customers, the go-to-market side of a business, how a SaaS company operates and the best operational times to hire new staff.

“For those not in the accounting world, I would just stress (12 months) is a psychotic timeframe to try to go … from zero to IPO,” Whitmire said. “But I got to learn so much about everything that we had going on in my time at Cornerstone, and I really heavily attribute that to the success of FloQast. Not just the product, (but also) the collaboration workflow and, on the nerdier side, the tie-out and reconciliation process automation.”

He later co-founded FloQast with Chris Sluty and Cullen Zandstra, who now respectively serve as chief product officer and chief technology officer. The platform originally focused on integrating with Excel and streamlining “pain points” within that software. It has evolved to offer broad integrations from Excel and cloud storage to enterprise resource planning and bank integrations. Whitmire said FloQast’s internal mantra is to go down the balance sheet and automate as much as possible, including workflows, reconciliation, audit request lists and compliance.

“There’s a massive talent crunch inside of audit, so anything we can do to automate the mundane work between the auditors and the accountants, I think, is a really big value add,” Whitmire said. “That has certainly landed with our customers and our prospects, and that product is doing extremely well.”

FloQast later noticed that some clients – such as Zoom Video Communications Inc. – were using its software for unintended purposes, such as managing payroll processing and other non-close related workflows. FloQast decided to pivot its platform to accommodate this unexpected user activity. In late 2020, it began to roll out a tool called FloQast Ops. This allows users to view the status of all accounting operations, including accounts payable, payroll and Securities and Exchange Commission reporting, from one dashboard.

‘Customers aren’t just helped, they’re deeply understood’

Offices: FloQast is based in Sherman Oaks. (Photo by David Sprague)

FloQast’s post-money valuation has grown 33% since a 2021 valuation of $1.2 billion, and it announced $100 million of annual recurring revenue earlier this year. Whitmire repeatedly referred to his focuses and forward-looking missions at FloQast as “maniacal.” However, the growth tactics and manners of operation that he describes are metered and intentional: for example, the company hires carefully, has maintained a steady rate of growth and has a “strong culture” of internal promotions. Whitmire said that these strategies helped FloQast to avoid implementing any layoffs in the last few years. Its team size has still grown considerably in the last decade – FloQast’s current headcount is 649, up from 40 in 2017.

“On the one hand, yeah, I would love to grow 300% one of these years, but (our current growth) makes the business way more predictable and allows us to not get out in front of our skis with hiring,” Whitmire said. “We’ve been able to preserve cash and really be smart about things.”

One unique strategy that FloQast has stuck to is hiring accountants into customer-facing roles – 35% of its employees are former accountants, and all its sales engineers and implementation team members are trained accountants. FloQast promotes its platform as technology that is built “by accountants, for accountants,” and it said that hiring accountants themselves has been an “important metric” for its success.

“FloQast capitalizes on accounting institutional knowledge and it’s been a driving force in our competitive differentiation,” Whitmire said. “Customers aren’t just helped, they’re deeply understood … most of the pain points (that) customers experience or look to solve are ones our team has experienced firsthand.”

Whitmire said investors initially pushed back against the strategy, calling it a decade-long “battle” that he personally fought for.

“There was one board meeting where I presented these statistics around the success rate of sales executives that we hired who did not have a background in accounting, versus those that we promoted and did have a background in accounting,” Whitmire said. “The analysis I put together was so damning that we agreed that we should not be hiring externally, we should be promoting internally.”

Planning to go public

The company’s previous fundraises include a $110 million series D funding round in 2021 and a $40 million series C round in 2020, on top of its 2013 participation in the Venice-based Amplify.LA accelerator program. Whitmire said that most of FloQast’s recent funding will go towards laying the “groundwork” to become a publicly-traded company, as well as to support international expansion and product development.

While an IPO has been a dream for Whitmire since high school, he said that FloQast is still a “couple years out” from that. He added that FloQast intends for the recent series E funding to be its final investment round before heading into an IPO.

“I would like to be able to grow the revenue number, land in more geographies, expand up market (and) build more of our solutions before we head into that IPO,” Whitmire said. “(Once) the foundation for the business is in that situation, then we’ll be ready to operate like a public company and really focus on consistent growth, earnings before interest, taxes, depreciation and amortization, margins and all that good stuff. There’s still some more groundwork to be laid with venture capital money that’s a little more open to those types of investments.”

WeWork Amends Lease in NoHo

Office: WeWork’s space at 5161 Lankershim Blvd.

Nearly six months after filing for bankruptcy, flexible space provider WeWork Inc. has filed a motion to assume its lease at 5161 Lankershim Blvd., a four-story, 205,000-square-foot office building located in North Hollywood’s Arts District.

The property, which boasts close proximity to some of the biggest players in film and television, features modern private offices, lounges, a boardroom and two classrooms which can host upwards of 80 people.

WeWork was able to work with the landlord to amend its lease terms to reach a new, mutually beneficial agreement, according to a WeWork spokesperson.

“We’re excited to reaffirm our commitment to providing flexible workspace solutions in Los Angeles through our assumption of 5161 Lankershim Boulevard, a location in the heart of the North Hollywood Arts District,” a WeWork spokesperson wrote in a release. “With this new agreement, we’re pleased to strengthen our partnership with our landlord and continue delivering premier spaces, products and services to our members well into the future.”

The motion marks the second lease WeWork has assumed in Los Angeles, the first being its lease at Constellation Place, a 35-story skyscraper in Century City.

The company has announced substantial progress in its portfolio optimization, with a goal of assuming 90% of its global portfolio and reducing its total future rent commitments by over $8 billion, or more than 40%, according to a company statement.

Coworking sector remains strong

And while WeWork might’ve had an easier time handing over its properties, its strong hustle to maintain its portfolio signifies its continued faith in the coworking business.

“Coworking is a great solution for companies that have smaller employee headcount and are able to allow more flexible workplace opportunities for shorter term means,” Marin Turney, an executive vice president and office leasing expert at Jones Lang LaSalle Inc., said. “Whereas the bigger the company, the less nimble they are and the more permanence there is to their office needs.”

As opposed to traditional offices, coworking spaces tend to be great alternatives for individuals and smaller businesses that aren’t looking for a long-term property commitment. Due to the current office market fluctuation, multiple companies have turned to this approach due to the flexibility coworking provides.

“In terms of activity in the market, coworking has remained a lot more consistent,” Jackie Benavidez, a vice president and office broker at CBRE Group Inc., said. “But with that, there are ins and outs. You have tenants that sign month-to-month, you have some that do longer term. There’s definitely a higher turnover, but it seems to be pretty stable. I think it’s because they find a way to cater to each unique individual.”

Los Angeles, in specific, is leading the curve in terms of location count.

In the first quarter of this year, the Los Angeles market gained two more coworking spaces, reaching 270 coworking spaces and continuing to lead at the national level, above the Manhattan market which lost four locations in the past three months, according to a recent report published by CoworkingCafe.

Earlier this month, coworking company Industrious signed a 10-year lease agreement for a full floor of space at Century City’s Watt Plaza.

The newly signed 19,000-square-foot coworking space comes in addition to two other floors occupied by Industrious in Watt Plaza – one of its most successful locations in the U.S.

“The demand is still there, which is great,” Benavidez said. “I think it’s good for the market and I think it’s good to see that level of interest remain consistent.”

“I think coworking follows the trend of return to office,” Turney added. “We’re seeing people coming back to the office and deciding that, for whatever reason, their work from home scenario no longer works for them. I think we would probably see the same trend in a coworking operation as well.”

Tutor Perini Firms Score Contracts

Project: Terminal A at Newark International Airport.

Subsidiaries of Sylmar-based civil construction company Tutor Perini Corp. have snagged contracts worth $127 million, the company announced last week.

Tutor Perini subsidiary Roy Anderson Corp., which is based in Gulfport, Mississippi, has been awarded a $72.7 million contract by the city of Pensacola, Florida, for construction of hangar space at Pensacola International Airport.

The contract value was included in Tutor Perini’s project backlog for the first quarter.

The hangar construction is part of a larger $210 million overhaul and expansion of hangar space at the Pensacola airport.

The other set of contracts was awarded to a joint venture including Tutor Perini subsidiary Black Construction Corp., which is based in Tamuning in the U.S. territory of Guam; Tutor Perini acquired Black Construction in 2008. The other joint venture partner is Mace International, a unit of London-based Mace Group.

The contracts, worth a combined $54.5 million, were awarded by the U.S. Naval Facilities Engineering Systems Command, Pacific District, for a trio of projects at the U.S. naval support facility on the island of Diego Garcia in the Indian Ocean. The biggest of the three projects, at $43.5 million, is for repair of a parking apron and taxiways at the facility’s airfield. The other two projects consist of repair work for an incinerator and a road.

The Diego Garcia naval facility provides support for U.S. operational forces around the Indian Ocean and the Persian Gulf.

The road repair project is expected to be finished next year, while the other two projects are set for completion in 2026.

AI Use Grows at Hospitals

Surgery: A robot used by UCLA.

No longer just characters in your favorite science fiction thriller, robots and artificial intelligence are already playing an increasingly significant role at local hospitals, and many stakeholders expect their importance within the health care industry to expand dramatically in coming years.

According to a Morgan Stanley report released in August, 94% of the health care companies surveyed said they are now employing artificial intelligence or machine learning in some capacity. That Morgan Stanley report also projected the health care industry’s average estimated budget allocation for AI and ML will increase from 5.7% in 2022 to 10.5% this year.

“Every major academic medical center in the country is busy developing, evaluating and implementing AI for the clinic,” said Jason Moore, who chairs the Department of Computational Biomedicine at Cedars-Sinai. “Every single one.”

From autonomous robots that transport critical medications to AI systems capable of accurately predicting emergency room wait times and the probability of life-threatening infections in cancer patients, Los Angeles-area hospitals are making use of robotics and artificial intelligence in a variety of ways – not only to positively impact patient care but also to improve the efficiency of their businesses.    

“The human mind and brain are amazing, but there are examples in which technology can do things people may not be able to,” said Omkar Kulkarni, the Chief Transformation and Digital Officer at Children’s Hospital Los Angeles. “Technology can pick up on little details that just the nature of the human mind may not remember or may have forgotten to incorporate. … So efficiency and effectiveness – I think those are the two real values we’re going to see out of AI and robotics.”

High spending expected

The global health care market is poised to spend $20.9 billion on artificial intelligence this year, according to a MarketsandMarkets study released in January. The same report also forecast spending on artificial intelligence within the global health care space will soar to more than $148 billion by 2029.

Still, Cedars-Sinai’s Moore cautioned that while there has been terrific excitement about AI’s potential within the health care industry, actual implementation of many of those technologies has been somewhat slow. 

“To demonstrate that an AI is truly effective and safe for health care is a heavy lift,” Moore explained. “Just validating that an AI model works in a patient population takes time and resources and experience, and not all AI models are going to validate and be shown to be clinically useful.”

Moore said there are also companies pitching AI technologies for clinical care within the health care space that just aren’t very well thought out, which has led to further delay.

“But I think the process should be slow because we’re talking about patients’ lives,” Moore said. “You don’t want to put something that could harm patients into clinical practice, and so that’s why everybody’s being so careful. But at the same time, everybody’s ramping up to do what they need to do to move AI into the clinic.”

City of Hope

City of Hope’s Executive Director of Applied AI and Data Science Nasim Eftekhari manages a team of 20 scientists, who focus their work on applying artificial intelligence to the hospital’s business operations, research and real-time clinical care.

One of her team’s accomplishments that Eftekhari is particularly proud of is a real-time clinical decision support tool that uses AI to predict sepsis infections in cancer patients who’ve received bone marrow transplants.

“When these patients get sepsis, which is a very bad infection that finds its way into their bloodstream, they don’t present with normal signs and symptoms of sepsis,” Eftekhari said, explaining that after a bone marrow transplant the patient’s immune system is often very weak or compromised entirely.

“They don’t have a fever because they have no immune system,” she continued. “Oftentimes, this goes unnoticed, and clinicians have a very hard time of saying if someone is at risk of sepsis. Unfortunately, because they don’t have an immune system, when these patients get sepsis, oftentimes they have a very little chance of staying alive. A lot of times when you hear someone had a bone marrow transplant and died, unfortunately, it’s because of sepsis. And sepsis, in general, is the leading cause of death in the hospital in the U.S.”

Eftekhari said City of Hope’s sepsis prediction model uses AI to monitor patients and pick up on subtle changes in their vitals in real time while also examining what she described as “hundreds of different data elements,” including the patient’s health history, details of their disease and medications they’re taking.

If the patients’ data patterns suggest they may be reaching a high risk of sepsis, Eftekhari said the AI tool sends an alert notification to doctors and nurses that features a risk-quantification figure and typically provides hours of crucial lead time to intervene. 

“We have shown we are decreasing (intensive care unit) admissions because of sepsis, and sepsis mortality is being decreased over time since the model went live,” Eftekhari said. “We’ve shown we have improved patient care, and we have saved lives.”

Antelope Valley Medical Center

Antelope Valley Medical Center’s Director of Pharmacy Services Le Du first heard about the idea of a robot that could autonomously deliver medications throughout a hospital a few years ago.

“We all thought it was a cool concept, and it was an interesting idea,” Du said about her initial reaction. “But we never thought in a million years that we would have robots here delivering our meds.”

Fast forward to today, and Antelope Valley Medical Center now has two robots that deliver medications from the pharmacy to designated nursing locations throughout the hospital; they also transport patient specimens to the lab for testing.

In use now at hospitals across the country, Moxi is a 4-foot-tall robot designed by Austin-based Diligent Robotics Inc. that Antelope Valley Medical Center leases on a subscription-based model and began using for medication and lab deliveries late last year.

“The biggest benefit of having Moxi is really cutting down the amount of time that our (pharmacy) staff spends on deliveries,” Du explained. “The same is true for our nurses. They’re there to take care of the patient, and frequently they were interrupted and had to come down to the pharmacy to pick things up. Having the Moxi around has been really helpful in cutting down the amount of time needed to go pick up meds and labs.”

Outfitted with a secure storage bin that opens only with a security badge, Moxi operates with a system of sensors and moves about autonomously through a hospital setting; it can even make deliveries on multiple floors.

“Moxi actually has this arm extension that’s sort of like a finger at the end of the arm, and when it reaches the elevator, it actually maneuvers its arm and pushes the elevator button,” Du said. “So that’s how it uses the elevator.”   

Cedars-Sinai

Cedars-Sinai officials are excited about a free, patient-facing generative AI app called CS Connect that the hospital launched about six months ago.

“The AI behind the app is a chatbot, like ChatGPT,” explained Jason Moore, the chair of Cedars-Sinai’s Department of Computational Biomedicine. “What it does is interact with the patient, asks them questions. The patient answers the questions about what symptoms they’re having, what health issue they’re having, and the chatbot understands what the patient’s saying and can then help the patient schedule an appointment here at Cedars-Sinai to see a doctor.”

Moore said the AI technology in the CS Connect app is also helping the hospital’s physicians by analyzing what the patient told them, generating a summary for the doctor and even providing some potential diagnoses. 

“So when the doctor meets with the patient, they’ve already read the summary,” Moore said. “They’ve already read the potential diagnoses, and they’re not starting from ground zero, so they can have a much more informed encounter with the patient and get to the problem much more quickly.”

A longtime artificial intelligence expert, Moore’s own research at Cedars-Sinai covers a lot of territory, but his team’s work using machine learning to combat AI bias certainly stands out. 

“AI models often don’t treat all patients equally,” Moore said. “They don’t treat men and women equally. They don’t treat Black and white patients equally or rich-versus-poor patients equally. The reason for that is there are biases in health care – discrimination biases that then can create biased data.”

As an example, Moore pointed to a recent study that found Black patients wait, on average, 40 minutes longer in the emergency room than white patients.

“If patients who need urgent attention in the emergency room are waiting 40 minutes longer, or more, then their health outcomes are going to be different – they’re going to have worse outcomes,” Moore said. “So if you’re building an AI model to predict patient outcomes after emergency room visits, that model’s going to be biased. … AI doesn’t know any different, right? It’s just working with the data that’s there. But if the underlying data’s biased because there’s a discriminatory practice at the health care level, that’s going to show up in the AI models as a bias.”

UCLA Health

It’s not uncommon for Dr. Mark Girgis, the director of UCLA Health’s Robotic Surgery program, to encounter patients who are concerned by the idea of being operated on by a robot.

“The thing I tell patients, and what they need to realize, is the robot is not autonomous,” Girgis said. “It is 100% controlled by the surgical provider.”

An oncology specialist, Girgis said he’s conducted “thousands” of robotic surgeries over his career, and he explained that he also tries to encourage his skeptical patients to think of the robots he works with as being tools.

“These tools of the robot just happen to not be straight,” Girgis said. “They happen to have wrists and elbows associated with them. So the functionality of these tools are much greater and are controlled by my hands through a computer to the robot. But they are still controlled by my hands.”

Girgis said robotic surgery was introduced in the early 2000s and has been an integral component of patient care at UCLA Health for more than seven years. About 80% of the surgeries Girgis conducts today are done using a robot, and his work focuses often on oncology procedures involving the pancreas, liver, stomach and esophagus. But robotic surgery at UCLA Health is used for a range of specialties, including thoracic, cardiac and neurologic procedures.   

“Cardiac surgeons are doing valve replacements robotically now,” Girgis sad. “That’s something that was unimaginable for many years.”

Girgis made it clear that robotic surgery, which makes use of 3-D cameras and much less invasive incision sites, provides a host of positives for patients.

“The benefit is really enhanced recovery,” he said. “There’s less pain, less trauma to the tissues in the abdominal wall, less blood loss and shorter hospitalizations, while not compromising the conduct of the operation.”

Girgis noted that UCLA Health makes use of the dominant robotic surgery platform available now in the U.S. – da Vinci surgical systems made by the Sunnyvale-based tech company Intuitive.

“There are other platforms out there, and eventually those will be introduced,” he said. “I’m confident the cost of these instruments and the cost of the platform are going to significantly go down as more competition is introduced. … Just like everything else: When you encourage competition, it drives price in a favorable way for hospital systems.”

Children’s Hospital Los Angeles

Emergency room visits are never any fun, but they can be especially difficult for children.

“It’s tough to wait when you’ve got your child – or perhaps multiple children who are with you – and you have no idea how long you’re going to wait,” said Omkar Kulkarni, the chief transformation and digital officer at Children’s Hospital Los Angeles. “So what do you do? You walk up to the nurse and say, ‘How long is it going to be?’”

Kulkarni said Children’s Hospital Los Angeles went live with an AI-driven app called MyVisit at the beginning of this year, created in large part to answer that very question.

Making use of AI to analyze current, historical and even contextual data – meaning the tech considers whether a patient came in for an urgent issue or something less severe – the MyVisit app will provide families with real-time estimates, according to Kulkarni.

“Not of their entire time in the ED,” he clarified. “But how long you’ll be waiting for the next thing. ‘You’ll be waiting this much time to see a nurse,’ and ‘You’ll be waiting this much time to see a doctor.’ The accuracy of this thing is over 95%, which is amazing.”

Kulkarni noted MyVisit has a number of other features, including insight about why certain labs have been ordered or what certain test results mean, as well as perspective about care providers. The app is available in a range of different languages.

“What’s amazing is that’s it’s been used incredibly well,” Kulkarni said. “We’re seeing about 70% of the families in the emergency department use this app … with lots of families using it in Spanish and other languages.”

Teledyne Shares Fall After Q1 Earnings Report

Leader: Robert Mehrabian, executive chairman of Teledyne Technologies Inc.

The release of its first-quarter earnings by Teledyne Technologies Inc. sent its stock price down. The shares of the Thousand Oaks aerospace, marine and digital imaging products manufacturer declined by about 11% on April 24 when it closed at $362.50, down from the previous day’s closing price of $407.06.

On April 25, the stock price climbed 4% to close at $376.98.

The company reported before the market opened on April 24 adjusted net income of $218 million ($4.55 a share) for the quarter ending March 31, a slight increase from the adjusted net income of $217 million ($4.53) in the same period the previous year. Revenue decreased by 2.4% from the first quarter of the prior year to $1.35 billion.The earnings and revenue figures fell short of what Wall Street anticipated, as analysts on average expected earnings of $4.63 on revenue of $1.39 billion, according to LSEG, a provider of financial markets data.

The number of shares traded on April 24 reached just about 1.1 million,  the highest volume for the past 52 weeks. That outpaced the previous high volume of 925,100 reached on May 31.

Strong orders reported in earnings call

In a conference call from April 24 with analysts to discuss the first-quarter financials, Teledyne Executive Chairman Robert Mehrabian said he was pleased with the results, which included record adjusted earnings per share and record free cash flow of $275 million.

While overall orders remained strong, sales were impacted by deterioration in some of the company’s short cycle imaging and instrumentation markets, Mehrabian said.“We have previously assumed no full year sales growth in industrial automation as well as in the test and measurement markets. However, those markets weakened more than planned in the first quarter, and we now forecast full year sales in those product families to decline meaningfully (this year),” Mehrabian said during the call. “Nevertheless, we believe such sales declines with the offset by our marine, aviation and certain defense businesses, resulting in full year flat sales compared to (last year).”

Teledyne revised its outlook for the full year when it came to earnings per share.

For all of this year, the company expects adjusted earnings per share of $19.25 to $19.45, compared with a prior call for $20.35 to $20.68. Analysts expected $20.56, according to LSEG.

For its second quarter, Teledyne expects adjusted earnings between $4.40 and $4.50, lower than analysts’ expected $5 a share.

During the call, Mehrabian said that Teledyne had renewed its stock repurchase authorization and that it planned on beginning to buy back shares during the second quarter.

“At the same time, because of our strong balance sheet, we’re continuing to evaluate a number of acquisition opportunities,” Mehrabian added.

Jim Ricchiuti, an analyst with Needham & Co. LLC, asked during the conference call about the mergers and acquisitions pipeline and if Merhrabian was seeing more opportunities for smaller deals than for larger ones.

“Is that a fair way to characterize the environment right now?” Ricchiuti asked.

Mehrabian said it was, explaining that the company had one acquisition in its pipeline currently and when that deal is completed the company would have spent more than $300 million in acquisitions since it bought Flir in May 2021 for $8.2 billion.

“We can spend up to $1.5 billion, $2 billion (on acquisitions) because we haven’t touched our line of credit at all and we have cash
on hand. So we are looking at acquisitions,”
whe said.

“The issue is that smaller acquisitions, we may be able to complete this year,” Mehrabian added. “Larger acquisitions, even if we find one, with all the various regulatory hurdles that you have to go through, won’t happen until next year.”

Water Agency Gives $182M to Two Projects

Visitor: Los Angeles Mayor Karen Bass tours a water reclamation facility in Van Nuys.

This article has been revised and corrected from the original version.

Two massive local water purification projects set to begin construction within the next 18 months have received up to $182 million from water wholesaler Metropolitan Water District of Southern California.

The regional water agency funds are headed for a $700 million groundwater replenishment project in the San Fernando Valley and a $364 million water purification project in the Westlake Village area. Contractors have been selected for both projects, which are set to begin construction within the next 18 months.

“For decades, investments in local projects have helped strengthen Southern California’s resiliency by reducing demands for imported water supplies and decreasing the burden on our system,” said Nancy Sutley, Metropolitan board’s vice chair of climate action.

“Together, with investments in storage and conservation, these projects have become critical as we face the dramatic impacts of climate change that are threatening water sources across Southern California and the western United States,” Sutley added. 

About $139 million of the water wholesaler funds will flow over the next 25 years to the Los Angeles Groundwater Replenishment Project jointly developed by the Los Angeles Department of Water and Power and the Los Angeles County Sanitation Districts.

The project involves developing new facilities that will purify recycled water to recharge the San Fernando Valley Groundwater Basin aquifer. When completed around 2028, the project is expected to produce 19,500 acre-feet per year, enough to supply water for about 60,000 households. The new facilities will purify the water from the Tillman Water Reclamation Plant in Van Nuys, allowing that water to be put back into the ground to become part of the region’s drinking water supply.

Dallas-based Jacobs has been selected as the prime contractor for the project, which is slated to begin construction in December.

“This is a major milestone for the City of Los Angeles and the region,” said Anselmo Collins, senior assistant general manager at LADWP and the head of the department’s water system.

“This project is one of the key strategies to help reduce the city’s purchase of imported water, increase our local water supplies and improve our water reliability,” Collins added.

Meanwhile, about 20 miles to the west, Metropolitan Water District has committed $42.5 million to a water purification and pipeline project being developed by Las Virgenes Municipal Water District and the Triunfo Water and Sanitation District. The project, valued at around $365 million, involves building a water purification facility that will deliver water to the Las Virgenes Reservoir in Westlake Village. Another component of the project calls for 18 miles of new pipeline to transport that water to customers in portions of Los Angeles and Ventura counties.

The contractor team has been selected; it includes Chicago-based Walsh Construction along with Brown and Caldwell and Carollo Engineers, both of Walnut Creek.

Construction is set to begin late next year and continue through 2028.

OpEd: LA Olympics: Let’s Help Minorities Win

SoFi Stadium will host the Olympics' opening and closing ceremonies.

The Los Angeles 1984 Summer Olympics introduced several innovations, such as the first-ever computerized scoring systems. These Olympics were financially successful, mainly due to corporate sponsorships and limited public funding.

As a result, the 1984 Summer Olympics were a triumph for the United States: They established a legacy of organizational proficiency (expected from the upcoming Paris 2024 games). And they infused the city with a dramatic economic impact.

With the return to Los Angeles of the Summer Olympics just four years away, I share the civic pride of L.A. in the international spotlight. And yet, in terms of equitable impact, it is clear that the 1984 Olympics failed to get all of the city’s economic players into the game. They proved, once again, how the Black community rarely scores a home run, despite demonstrating prowess on the field.

There are specific policy and market-based reasons why my community has been unable to reap the largess of events such as the Olympics. They are part of the institutional handicaps – such as the “redlining” of Black neighborhoods, which stifled generational wealth – that has kept these communities stranded on third base for centuries.

Housing is still a concern

Housing and real estate were instrumental in the concentrated disadvantage of Blacks in all U.S. cities. Government and private actors erected barriers to investment and homeownership in Black communities. According to the 2023 “State of Black Los Angeles County Report,” Black people have the region’s smallest homeownership rate: 33.5%, compared to Whites at 53.9%. Consider the impact on the economic game where the average White home value exceeds Black home values 1.65 times, and where many Black neighborhoods are locked in a downward spiral of devaluation, disinvestment and deterioration.

With the arrival of the LA28 games, I share the concern that infrastructure investments, which hold the promise of elevating property values, will once again strand or even price out many longtime residents.

What needs to be done

I am joining the city’s top business and development experts in “Urban Marketplace 24: From LA84 to LA28 and Beyond,” presented by Urban Land Institute, Los Angeles District Council, on April 24 at the Beehive in South Los Angeles. “Insights and Investments to Narrow the Racial Wealth Gap” will offer examples of how business, community and political leaders can coach investment in historically underserved Black and brown communities.

With an emphasis on wealth enhancement, Urban Marketplace offers achievable means of environmental equity and social justice. We suggest the following steps:

1. Monitoring and Evaluation: Establish a system to assess the impact of the Olympics on low-income communities. This will help identify areas of improvement so that economic benefits reach people and places that most need it.

2. Infrastructure Development: Invest in low-income areas, including transportation, housing and public spaces. This will improve the quality of life and create a foundation for improving the built environment where equitable development is needed, and deployment of capital jump-starts job opportunities during the construction phase.

3. Job Creation and Training: Implement employment opportunities for residents in low-income communities. This can include workforce-development initiatives, apprenticeship programs and partnerships with local businesses and organizations.

4. Small-Business Support: Help ensure that low-income communities can benefit from increased economic activity during the Olympics. This can include access to capital, technical assistance, corporate mentorship programs and marketing assistance to local business improvement districts.

5. Attainable Housing: Develop inclusive housing options in close proximity to Olympic venues to ensure that low-income residents have improved access and benefit from the Games. This can be achieved with community-based housing developers and inclusionary zoning policies. Innovative ownership options must also be designed and deployed.

6. Community Facilities and Programs: Enhance and create parks, recreational centers and youth programs in low-income areas. This will provide opportunities for residents to engage in the many sports, recreational and cultural events associated with the Olympics.

7. Education and Youth Development: Invest in educational programs and initiatives for youth development in low-income communities. This can include programs such the ULI Los Angeles’ UrbanPlan, which introduces high school students to the trade-offs and risks at play in the entitlement and negotiation process associated with real estate development, especially in public/private partnerships. Also deserving support are mentoring programs and after-school activities that promote sports, arts, financial literacy and basic academic achievements.

8. Environmental, Social and Governance Principles: Ensure that all aspects of the Olympic experience are planned and executed with an ESG focus. This can include promoting renewable energy, waste reduction and environmentally friendly transportation options.

9. Community Engagement: Engage with local leaders, organizations and residents to understand their needs, concerns and aspirations, and directly address the specific challenges faced by low-income communities.

By implementing these steps, Los Angeles can ensure that the 2028 Olympics leave a positive and lasting impact on its low-income communities.

Michael Banner was raised in Watts and attended Jordan High School. He is president and CEO of the Los Angeles LDC, a mission-driven community development financial advisory organization. He is a founding member of the ULI Los Angeles Urban Marketplace.

LADWP Congratulates the 2024 Sustainability Awards Winners

On April 17, the Los Angeles Department of Water and Power (LADWP) recognized 19 of its largest customers at the 9th annual LADWP Sustainability Awards event, held at the John Ferraro Building in downtown Los Angeles. The customers—representing commercial, governmental, industrial, and institutional sectors—earned top honors for their significant achievements in energy efficiency, water conservation, transportation electrification and demand response, as a result of participating in our rebate and incentive programs.

Launched in 2016, the Sustainability Awards event presents the chance for LADWP representatives and executives to gather with L.A.’s business community to celebrate the environmental successes they achieved in partnership. It also offers an opportunity to highlight related sustainability endeavors that are shaping the Los Angeles region, with this year’s event featuring a panel on “Electrifying L.A.’s Public Transportation” with representatives from Los Angeles County Metropolitan Transportation Authority (LACMTA), Metrolink, and the Los Angeles Department of Transportation (LADOT).

The event included a panel on “Electrifying L.A.’s Public Transportation,” featuring representatives from local transit agencies.

The 2024 Sustainability Awards winners achieved considerable environmental impacts. In total, actions taken by honorees in energy efficiency and demand response reduced their annual carbon emissions by an estimated 4,688 tons. This has the same impact as removing more than 1,100 gasoline-powered cars from the road for a year. Water conservation winners decreased their annual water use by a combined 3.8 million gallons, while awardees for transportation electrification installed 440 Level 2 electric vehicle (EV) chargers and 21 Level 3 EV chargers.

Greg Reed, LADWP Senior Assistant General Manager of Diversity, Equity and Inclusion, delivered keynote remarks on “The Power of DEI.” Other LADWP executives and Los Angeles Board of Water and Power Commissioners also attended the April 17 event.

These accomplishments were attained by winners’ participation in a number of LADWP’s rebate and incentive programs, among them:

Commercial Lighting Incentive Program
Commercial EV Charging Station Rebate Program
Technical Assistance Program, for water conservation
Commercial Water Conservation Rebate Program
Demand Response Program

LADWP named winners in four categories: Energy Efficiency, Water Conservation, Electrification of Transportation, and Demand Response. Within those categories, the utility presented Leadership Awards to customers who achieved the greatest absolute savings. Impact Awards were presented to customers who achieved the greatest savings relative to their annual usage.

Congratulations to all the customers honored at the recent event. The environmental contributions of all of LADWP’s business customers play an essential role in meeting Los Angeles’ sustainability goals. The L.A. business community’s support of the city’s clean energy transition and conservation efforts is what will help create a greener Los Angeles, for the benefit of all Angelenos.

The 2024 Sustainability Awards winners are:

Energy Efficiency
Leadership Award
1st Place: City of Los Angeles Street Lighting
2nd Place: University of Southern California
3rd Place: WBCT LLC

Impact Award
1st Place: Colonnade Wilshire Corp
2nd Place: Automobile Club of Southern California
3rd Place: WBCT LLC

Water Conservation
Leadership Award
1st Place: Keck Medical Center of USC
2nd Place: AT&T Services, Inc.
3rd Place: Noemi Dunkelman

Electrification of Transportation
Leadership Award for Level 2 Chargers
1st Place: The Roberts Company
2nd Place: Los Angeles County
T – 3rd Place: Valley Presbyterian Hospital
T – 3rd Place: Douglas Emmett

Leadership Award for Level 3 Chargers
1st Place: EVgo
2nd Place: Los Angeles County
3rd Place: Hilton LAX

Demand Response
Leadership Award
1st Place: LAUSD
2nd Place: Los Angeles World Airports
3rd Place: Brookfield Properties

Impact Award
1st Place: Airgas
2nd Place: LA Cold Storage
3rd Place: Lineage Logistics

Congratulations to the 2024 Sustainability Awards winners!

For more information about the Sustainability Awards, please visit ladwp.com/sap. More information about rebate programs for LADWP’s business customers is available at ladwp.com/nrrp.

TriMed Reaches End Stage In Deal with Henry Schein

Base: TriMed, which is now owned by Henry Schein, maintains its headquarters in Santa Clarita.

Santa Clarita-based orthopedic implant developer TriMed Inc. has been acquired by Melville, New York-based Henry Schein Inc.

The deal, first announced in December, was finalized earlier this month. Financial terms of the transaction were not disclosed.

Privately held TriMed, which was founded by brothers David and Robert Medoff in 1997, makes orthopedic implants that can be used as alternatives to traditional plates and screws to repair injuries to limb extremities, specifically foot and ankle and hand and wrist injuries. The company reported revenue of about $52 million last year and has about 100 employees.

Henry Schein is a publicly traded distributor of medical and dental supplies including vaccines, pharmaceuticals, equipment and financial services for medical providers – generally outside of a hospital setting. The company operates primarily as a distributor network with 25,000 employees worldwide and revenue last year of $12.3 billion.

Under terms of the deal, TriMed’s facility in Santa Clarita will remain and the Medoff brothers will continue to run that operation, which will be part of Henry Schein. David Medoff, who had been chief executive of TriMed, now has the title of chief commercial officer.

“Through our new partnership with Henry Schein, we look forward to working together to identify new opportunities to provide quality care to patients,” David Medoff said.

“TriMed provides unique treatment options for challenging indications and injuries. Henry Schein will help to accelerate our growth and increase our reach within the medical community,” he added.

For Henry Schein, the acquisition will supply its medical provider customers – especially in ambulatory surgery centers – with a wider range of surgical options for patients with injuries to limb extremities.

“With this new partnership, Henry Schein is reinforcing our commitment to meeting the evolving needs of our customers in the orthopedic market and providing health care professionals with the tools needed to deliver outstanding care to patients,” Stanley Bergman, the company’s chief executive, said in the acquisition completion announcement.

“By leveraging TriMed’s established presence and reputation, together we will expand our product offering and provide comprehensive orthopedic solutions to our customers,” he added.

Shares of Henry Schein rose 2% on Dec. 21, the day after the acquisition of TriMed was first announced. The stock showed little movement around April 4, the date the deal’s completion was announced.

Warner Bros, TCM Debut Studio Tour

Cinema: Officials at the Warner Bros. studio tour featuring Turner Classic Movies.

The Warner Bros. Studios Tour Hollywood has kicked off a special tour of its backlot in conjunction with Turner Classic Movies.

The TCM Classic Film Tour is a permanent part of the tour since launching on April 16 and takes visitors to some rarely seen portions of the studio.

Guests can visit new points of interest including the exterior of James Dean’s apartment in which he resided while working on the lot, and the rose garden, which in the early years was Jack Warner’s tennis court and was surrounded by talent dressing rooms.

Visitors will also have the chance to stop at the Property House, which has over a half-million television and movie props, including the pirate chair from “Captain Blood,” a 1935 film starring Errol Flynn, and the Tiffany chandelier from “The Letter.”

Warner Bros. Motion Picture Group’s Co-Chief Executives Mike De Luca and Pam Abdy said that for 100 years Warner Bros. has stood for the very best in moviemaking, adding that TCM has continued to spotlight the legacy of the studio with program offerings.  

“We are thrilled movie lovers from around the world can visit the iconic Burbank lot to experience the TCM Classic Films Tour and celebrate the rich history of the studio’s contributions to cinema,” De Luca and Abdy said in a statement.