A San Diego-based medical diagnostic laboratory will pay more than $4 million to settle claims they traded patient referrals for kickbacks to physicians and physician groups in tests that analyze risks for certain genetic diseases, U.S. District Attorney Laura E. Duffy announced Wednesday.

"Kickbacks to health care providers in exchange for patient referrals undermine the medical judgment of physicians and exploit the trust of patients," said Duffy in a statement. "Kickback arrangements with physicians also place vital taxpayer funds at risk. As this settlement demonstrates, this office will continue to aggressively combat fraud against federal health care programs."

Pathway Genomics Corporation has resolved to pay $4,036,622.74 in the civil settlement regarding the allegations. The company provides analysis of genetic testing kits for a variety of purposes, and some of their tests uses saliva samples to analyze the risk for certain genetic diseases and also to examine responsiveness of certain medications.

Pathway induced health care providers to refer Pathway testing kits and services, offering physicians and medical groups of reimbursements of up to $20 for each saliva kit they collected and submitted, according to the settlement.

"While genomic testing is a valuable and relatively recent medical tool, when specialized laboratories pay for referrals they aren't breaking any new ground but rather engaging in the same old kickback schemes," said Chris Schrank, Special Agent in Charge for the Office of Inspector General, U.S. Department of Health and Human Services Southern California Region, in a statement. "Federal law enforcement will not let new technologies deter them from bringing violators to justice."

Physicians received as much as $13,534 for their referrals, the U.S. alleges, and most physicians never ordered the costly genetic tests before enrolling in the reimbursement program. As referrals increased, Pathway billed cost of the tests to federal health care programs like Medicare and TRICARE, the U.S. alleges.

The reimbursement program has since been voluntary discontinued.

"The defendants allowed greed to corrupt their trusted relationship with their patients and ultimately affect patient care decisions," said FBI Special Agent in Charge Eric S. Birnbaum in a statement. "Today's settlement should make it abundantly clear that the FBI and our law enforcement partners will not allow kickbacks and bribes to influence patient care decisions."

A former Pathway employee first brought up the allegations. 

It may be a far distance from San Diego to New York City but on New Year’s Eve, the massive crowd of revelers in Times Square will get a peek into America’s Finest City via a sunny, new ad campaign.

As thousands upon thousands pack Times Square for the New Year’s Eve countdown, a newly-revamped tourism commercial for San Diego will play on a huge video board at the corner of 44th and Broadway in NYC.

The ad – part of the San Diego Tourism Authority’s newly-revamped “Happiness is Calling” campaign – features photographs of sunny San Diego in all its warm, bright, feel-good glory, from scenic beaches and lush golf courses, to iconic Balboa Park and the “Kiss” statue near the USS Midway Museum.

A banner at the bottom of the ad lists important San Diego stats, such as the average temperature (72 degrees), miles of beaches (70), state parks (18) and, perhaps most importantly, the average weight of a burrito (1.2 pounds).

According to the Tourism Authority, the ad is expected to be viewed by more than one million people on New Year’s Eve. The ad’s debut on Broadway marks the beginning of the Tourism Authority’s campaign in the Big Apple.

The San Diego ad will also run in 6,000 NYC taxi cabs.

The Tourism Authority’s expanded advertising campaign aims to attract more visitors to San Diego from New York and the East Coast as the city braces for another big tourism year in 2016.

The Tourism Authority says 2015 was a record-breaking year for tourism in San Diego, with a total of 34 million visitors to the region, who spent almost $10 billion and generated $266 million in hotel tax revenue.

A local woman is calling Steele Canyon High School Assistant Principal Paul Battle her guardian angel.

Natali Kestenian told NBC 7 Battle saved her life after a violent rollover crash.

Kestenian was driving home on Interstate 8 near Tavern Road on December 16 when another car cut her off. She lost control of her Toyota Camry, and it rolled down an embankment. The force threw Kestenian from the vehicle, and her broken body lay on the road vulnerable to on-coming traffic.

Kestenian said she does not know how she was ejected. According to her and a police report, she was wearing her seatbelt.

“All I remember is [Battle] holding me and holding my head tight onto his, and just holding me down saying everything is going to be alright,” said Kestenian.

She later learned Battle had seen her car flip and her body thrown from the vehicle. He immediately started swerving his car to get traffic to slow down. She said he got out of his vehicle, putting himself in danger, and held her head and hand until help arrived.

“He almost lost me for a second because I was passing out. Shivering, he shook my body and said no no no don’t go anywhere, stay with him,” Kestenian remembered.

Battle only let her hand go when the ambulance helicopter flew her to the hospital.

She told NBC 7 Battle then drove to multiple hospitals looking for her and to check if she survived the accident.

Kestenian suffered a fractured skull and two broken discs in her back. She was nearly paralyzed. However, she has remained positive and grateful thanks to Battle.

Eventually, the Steele Canyon High School assistant principal found her and visited her in the hospital with his family.

“He is my guardian angel,” Kestenian said.
 

A water main burst and flooded an intersection near Mira Mesa and Rancho Penasquitos Wednesday.

Black Mountain Road near Mercy Road was closed just after 6 a.m. due to flooding.

Crews with the City of San Diego Public Utilities Department have identified the location of the break and say they shut of water at 7:45 a.m.

There were no customers without water service, officials said.

Black Mountain Road was closed to all northbound traffic at Mercy Road, police said.

Repairs were expected to be completed by 8 p.m. 

Officers are looking for a suspect after a dog was brought into the Humane Society Wednesday with severe cuts from chicken wire tightly wound around her neck.

Melody, a four-year-old spaniel, was found abandoned at a plant nursery at N. River Road in Oceanside.

"The way the chicken wire was tied indicates that this was an intentional act. The injuries she has suffered cut into her flesh all the way to the bone. She's very lucky to be alive," Steve MacKinnon, Chief of Humane Law Enforcement for San Diego Humane Society said. "We've opened an investigation to find the person(s) responsible for her injuries, but we, unfortunately, have very little information about what happened. We're asking the community to please report any information or possible leads so we can find the person responsible, or Melody's previous owners."

Humane Society vets performed immediate reconstructive surgery on Melody. She has been given a positive prognosis regarding her injuries and rehabilitation.

"What happened to Melody is horrific and, unfortunately, we see animal cruelty like this all too often,” Dr. Gary Weitzman, president and CEO of San Diego Humane Society said. “We rely on information from the community to be able to seek justice for these animals who are unable to defend themselves. Fighting animal cruelty is one of our primary missions so we can give animals like Melody the second chance they deserve."

The Society’s law enforcement division has opened an animal cruelty case in the hope of pursuing felony charges.

Crime Stoppers is offering a reward of up to $1,000 for any information that leads to an arrest. Leads can be reported through an anonymous tip line on their website or by calling (888) 580-8477. Information can also be reported to the San Diego Humane Society’s website or by calling (619) 243-3466.

SAN DIEGO -- The bowl season has already begun in College Football, but one of the better matchups kicks off when Pac-12 powerhouse USC (8-5) takes on Big-10 goliath, Wisconsin (9-3), in the Holiday Bowl on Wednesday night from Qualcomm Stadium in San Diego.

Wisconsin brings the nation's No. 1 ranked defense into Southern California to tackle the Trojans high-octane offense. The Badgers have held opponents this year to an average of 13.1 points per game, whereas the Trojans are scoring at a clip of 35 points per game.

Something's got to give on the battlefield on Wednesday night as the age-old question of would you rather have the best defense or the best offense may finally be answered. The game itself, might also lend some foreshadowing to the New Year's Day Rose Bowl matchup between Stanford and Iowa as USC and Wisconsin mirror their Pac-12 and Big-10 champions as far as style of play.

USC head coach Clay Helton had the interim tag removed from his title before the Trojans loss to Stanford in the Pac-12 Championship game and seeks his second bowl win as coach of Southern Cal.

"To be in our second back-to-back Holiday Bowl is exciting for us," Helton said of the bowl game. "I think it shows progress."

Similar to Helton, it's been an up-and-down year for Wisconsin's coach Paul Chryst. Wisconsin's only losses came at the hands of Alabama, Iowa and Northwestern, and a win on Wednesday would mean the Badgers secure a second consecutive double-digit win season.

"I feel fortunate to come into the group that I was able to come in with," Chryst said of taking over the reigns of Wisconsin this season. "USC is explosive and dynamic and present a lot of challenges to us."

USC and quarterback Cody Kessler are playing in their second straight Holiday Bowl, and the fifth-year senior QB would love nothing more than to end his collegiate career on a high-note before heading to the NFL. In order for that to happen, Kessler might have to win the game with his arm as Wisconsin's greatest strength is its run defense.

That means gaudy numbers for the Trojans receivers as the Badgers will try to bottle up JuJu Smith-Schuster, Steven Mitchell Jr, Darreus Rogers and Adoree' Jackson. The "fearsome four" receiving corps is one of the tops in the country, with Sophomore Smith-Schuster leading the group as the No. 7 receiver in the nation.

The Trojans have struggled with elite defenses before this season, but have the weapons on offense to score against anybody. The Trojans defense is better than the Badgers offense, and while we know Wisconsin will be able to slow down the Trojans, the better question will be can they score themselves.

The game kicks off at 7:30PM PST on Wednesday December 30, 2015 from Qualcomm Stadium in San Diego, CA. It will air live on ESPN and can be live streamed with Watch ESPN app.

2015 @HolidayBowlGame: @USC_Athletics vs. @BadgerFootball https://t.co/WfVcsHy3YX pic.twitter.com/w7WLZ1YSMK

— Holiday Bowl (@HolidayBowlGame) December 6, 2015

A woman was injured in Carlsbad Tuesday night when a man attacked her with a machete and attempted to steal her car, just as she was getting inside her vehicle.

The Carlsbad Police Department said the brazen carjacking attempt happened just before 7 p.m. near an apartment complex in the 1300 block of Laurel Tree Lane, with several bystanders around.

Police said the victim was about to get into her car to go shopping when an unknown man approached her, threatened her with a machete and demanded her car keys.

The woman refused to hand over her keys and began screaming for help. The suspect and victim then struggled, and the man eventually fled the scene.

Police said the woman suffered a cut to her hand in the fight, and, though badly bleeding, drove herself to the hospital for treatment.

One witness told NBC 7 he recognized the suspect as the same person who tried to steal a motorcycle last week near the same apartment complex on Laurel Tree Lane.

“He's been trying to steal the motorcycle and the car. You know he might just come back again and try to steal something else,” witness Job Gonzalez said.

Carlsbad police described the suspect as a dark-skinned man approximately 65 years old, standing at 5-foot-6-inches, weighing around 160 pounds. He was wearing a yellow and white helmet, a dark blue
jacket and jeans at the time of the attack.

The neighborhood was on high alert Tuesday night as the suspect remained at large.

Jeb Bush’s campaign is shifting gears in an effort to ramp up its ground game ahead of the first primary votes being case.

The GOP candidate’s campaign will cancel planned advertising buys in Iowa and South Carolina, and shift its Miami headquarters, NBC News reported.

The decision is based, partly, on the fact that the super PAC backing Bush’s bid has spent $40 million on advertising so far, compared to the campaign's mere $1 million, the campaign said.

Bush has spoken frequently about his faith in advertising, but the ads have had little impact as he continues to languish in the polls. 

An adorable kitten who survived a traumatic injury that led to the amputation of one of her front legs earlier this month is being adopted by a kindred spirit.

Born with a rare form of cancer, 2-year-old Scarlette Tipton also had to have an arm amputated when she was just 10 months old.

Wednesday afternoon, Scarlette will get to take little Holly, as the kitten was named, to her furever home.

Matt and Simone Tipton of Orange County, California, had sought out a kitten for Scarlette, who is now cancer-free, and went searching specifically for one that had an amputation to be paired with their daughter, according to the Riverside County Department of Animal Services.

When Scarlette first met 3-month-old Holly she told her mother "Owie," and pointed at the kitten's missing limb, according to a statement from the agency.

"Yes, an owie. Just like you. But she's OK -- just like you are, too," her mother said.

Holly was found Dec. 17 by two women in Perris. She was bleeding next to some shrubbery, and they rushed her to the county's San Jacinto Valley Animal Campus. While it's not exactly clear what happened to her, the agency said it is possible that she was caught up in the fan belt of a car engine, as it's common for strays to cuddle up inside car engines during cold nights.

The Tiptons learned about Holly when her story was featured in several news articles last week, and the family went to meet her and schedule the adoption for as soon as she was recovered from her surgery, according to Animal Services.

They may be one of the hottest gifts this holiday season, but hoverboards are being linked to more and more injuries.

“We have a large amount of cases related to hoverboard injuries and falls because when a kid falls they automatically try to brace themselves, that's when you see injuries,” Dr. Ahmad Bailony of Sharp Chula Vista told NBC 7.

‘Epic fail’ Youtube videos are everywhere – even taking down celebrities like Mike Tyson, but doctors like Ahmad Bailony say its’ no laughing matter.

“The other big thing we think about today is trauma to the head, especially with all the stuff going on with concussions,” Dr. Bailony added.

Nationwide hospitals are seeing an uptick in hoverboard related injuries.

Sharp urgent care has seen numerous cases since Christmas, including patients with fractures. Rady Children’s hospital has also had a handful of injuries.

As a result of these rising numbers, more San Diego personal injury attorneys are advertising their services. A quick google search turned up several options specifically targeting hoverboard cases.

Bailoney and other doctors are preparing themselves for more patients, but say the best thing to do doesn't involve hospitals or lawyers.

“If you can prevent an injury that's the best kind of health,” Bailony advised.
 

Rafael Gaglianone kicked a 29-yard field goal with 2:27 left to lift No. 23 Wisconsin to a 23-21 victory against Southern California in the Holiday Bowl on Wednesday night.

Gaglianone's third field goal gave Wisconsin (10-3) its first win in seven tries against USC (8-6). The teams hadn't met since 1966, and two of USC's wins in the series were in the Rose Bowl, in 1953 and 1963.

Wisconsin's Sojourn Shelton intercepted Cody Kessler with 1:44 left. Kessler was hit from behind by Jack Cichy.

In the third quarter, Cichy sacked Kessler on three straight plays.

The Trojans got to the 50 in the final seconds before Kessler threw four straight incompletions.

USC, which beat Nebraska in last year's Holiday Bowl, had taken a 21-20 lead on Kessler's 7-yard touchdown pass to Darreus Rogers with 10:19 left.

A small plane crashed Wednesday night near a high school in Republic, Missouri, fire officials told NBC News.

The crash happened between 10:30 p.m. and 11:30 p.m. ET, according to officials.

Witnesses told NBC station KYTV the plane was flying low and sounded as though it was having engine trouble.

Two people aboard the plane were taken to hospital with non-life threatening injuries, the local fire captain said.  

An attorney for Andrea Constand, who accused Cosby of the 2004 sex assault that has become the first case to result in criminal charges against Bill Cosby, praised prosecutors Wednesday for the decision to charge the comedian.

"She feels that they believe her, and to any victim, that is foremost in your mind: 'Are people going to believe me?'" Dolores Troiani said on behalf of Constand on Wednesday, after news of Cosby's aggravated indecent assault charges broke.

Cosby was released on $1 million bail before 3 p.m. and driven home shortly afterward, without offering any comment. His attorneys said hours later that they believed the comedian will be exonerated of the charges, which they called "unjust."

But Troiani offered her thanks for filing the charges to the Montgomery County District Attorney’s Office in a prepared statement, and for "the consideration and courtesy they have shown Andrea during this difficult time."

And while Troiani said that Constand was "gratified with the overwhelming positive response to today's events," and that several other women with "heart-wrenching accounts" of their own had reached out to her, she did lament that the charges took more than a decade to be brought.

"Naturally it is troubling that it took until the eleventh hour for this day to arrive," Troiani said. "She is hopeful that her patience has encouraged other victims to come forward."

Several other women who have also accused Cosby of sexual abuse and assault had mixed emotions at the news of his criminal charges. NBC Nightly News' Kate Snow, who interviewed many of the women for a special earlier this year, said it has been a "long journey" for Cosby's accusers. Some met the charges with relief, while the news stirred past pain in others.

"Tears, jumps for joy, thought this day would never come, etc.," accuser Linda Cooper Kirkpatrick told Snow today in a message, according to NBC News. "I feel again, vindication. I've lost friends over my 'coming out' and to them I say I shall forgive."

Cosby and his representatives have previously repeatedly denied all allegations. Prior to this, he had never been charged with any crime regarding the allegations.

In the Philadelphia area, where Cosby has roots, reactions to Cosby's criminal charges varied.

Paul Smith, who grew up in the city, said he recalls "urban myths" about Cosby always swirling.

"Growing up in Philadelphia, there had always been these little stories, urban myths, that these things were going on," Smith said.

Kyra Stauts, who attends Rutgers University in Camden, said she wasn't fully sold on all the allegations against the long-beloved comedian.

"It's hard to believe that all these people were really victims," Stauts said. "But at the same time, some of them have to be telling the truth."

Davonna Parsons, of Logan, said she's still a Cosby fan, and that she doesn't believe the allegations against him.

"I don't think they have evidence for anything," Parsons said. "I think they just try to get people the best way that they can."

Though she said she's also a longtime Cosby fan herself, Deborah Kosak, of Swarthmore, said she tends to believe the accusations.

"I've always been personally a Cosby fan," Kosak said. "But again, legends, themselves, are humans."

His support may be waning, but Republican candidate Ben Carson continues to raise money at an impressive rate.

The campaign raised about $23 million over the last three months, spokesman Doug Watts confirmed to NBC News Wednesday night. That’s up from the $20.8 million Carson raised in the previous quarter.

"We have more than enough money to fulfill all our first-stage primary plans,” Watts said.

Carson has dropped in the polls in recent weeks. Support dropped from 29 percent in a NBC News/Wall Street Journal poll in late October to 11 percent by the middle of December.  

A 24-year-old woman was arrested on suspicion of child neglect after five children — wearing nothing but soiled diapers — were found trying to cross a Florida highway, NBC News reported.

The children, aged 1 to 5, were stopped by a motorist before they tried to enter Route 19 outside Spring Hill, Florida, 40 miles north of Tampa on Tuesday morning. 

Deputies were later approached by Samantha McCarthy, who said she was taking care of the children at a nearby motel. She told officials they disappeared after she fell asleep. 

The children, one of whom had a "severe rash on various parts of her body," were taken to hospital for treatment. It wasn’t clear whether McCarthy had an attorney or what her relationship was to the children.

Four Indiana teens were killed Wednesday night after in a “tragic” crash, NBC News reported.

Their car crossed the median and into the path of a minivan, police said.

“It's tough on these troopers out here that were here as well but our prayers and thoughts are with the families right now these victims,” Indiana State Police Sgt. Curt Durnhil told NBC affiliate WTHR.

A fifth passenger in the car and a family of four in the minivan — all with non-life threatening injuries — were taken to hospital in Morgan County. 

Check out live streams of New Year's Eve celebrations from around the world. Here are times throughout the day to watch events in major cities:

6 a.m. ET: New Zealand welcomes 2016 with a fireworks show in Auckland.

8 a.m. ET: Sydney, Australia, hosts its annual fireworks spectacular.

10 a.m. ET: Japanese revelers countdown to 2016 at an ancient temple in Tokyo.

11 a.m. ET: Hong Kong celebrates with a fireworks display over Victoria Harbour.

11 a.m. ET: Taiwan welcomes 2016 with a fireworks display at Taipei 101 building.

12 p.m. ET: Thailand hosts a New Year's fireworks display in Bangkok. 

3 p.m ET: Fireworks on the Burj Khalifa light up the Dubai night sky in the United Arab Emirates.

4 p.m. ET: Russian crowds celebrate at midnight in Moscow's Red Square.

5 p.m. ET: Cape Town, South Africa, rings in 2016.  

5 p.m. ET: Cairo, Egypt, lights up the pyramids with a fireworks display.

6 p.m. ET: Berlin, Germany, holds its New Year celebrations at the Brandenburg Gate.

6 p.m. ET Paris celebrates the New Year.

7 p.m. ET London's Big Ben rings in the New Year for the United Kingdom.

11 p.m. ET Brazilians in Rio de Janeiro welcome 2016. 

A man accused in the carjacking and kidnapping of a teenager and baseball coach in San Diego has pleaded not guilty in the bizarre crime spree, officials confirmed.

Ira Stringer, 45, appeared in court for his arraignment in Orange County, Calif., Tuesday and entered a not guilty plea. Officials with the Orange County District Attorney’s Office say Stringer is slated to appear in court next for a pre-trial hearing on Jan. 7 in the Central Justice Center in Santa Ana.

On Dec. 23, at around 10 a.m., Stringer – armed with a handgun – approached 16-year-old Jack Spencer as he prepared for baseball tryouts alongside his coach, Dylan Graham, 28, at Hickman Field in San Diego’s Kearny Mesa community.

According to detectives with the San Diego Police Department (SDPD), Stringer allegedly forced the teenager and the coach to get into Graham’s Jeep Latitude and then ordered the coach to drive him north from the sports complex to Ramona.

With the coach in the driver’s seat, the teen in the front passenger seat and the suspect in the back, they drove until they reached the mountains near Ramona. The suspect told the pair he would let them go near Ramona, but after making a call, he told them his plans had changed.

Police later said Stringer pretended to make a call to make it appear as if someone was assisting him on the other line. Graham told NBC7 he remembers thinking Stringer was going to kill them, but was just waiting for the right time. He said he began thinking about an escape route to keep himself and the teenage baseball player alive.

When Stringer pulled out a cigarette and began smoking, Graham lunged at the suspect and grabbed his gun.

As they struggled over the weapon, two shots were fired into the roof of the car and the Jeep veered off the road, crashing at San Vicente and Wildcat Canyon roads in Ramona. The coach told the teen to run, and Jack ran up to the road and flagged down a car.

Soon, he ended up at the San Diego Sheriff Department's Ramona Substation.

Meanwhile, police said Graham and Stringer both got out of the car. Graham then ran to another vehicle passing by and asked for help.

As Graham spoke with the passerby in the car, Stringer came up behind him. At that point, Graham fired two shots at Stringer’s feet.

Stringer then ran up to another car that was passing by, this time driven by a 79-year-old woman, and demanded she drive off with him inside. He told the woman he had a gun, police said.

The elderly woman eventually managed to escape from the car, police said, and that vehicle was later found abandoned in a parking lot at Barona Casino in San Diego’s East County.

Stringer was nowhere to be found.

Graham and Jack were eventually reunited with their families, both unharmed but understandably shaken.

For several days, Stringer remained at large. On Dec. 26, San Diego police linked the suspect to another crime: an armed robbery at an Arco AM/PM store in the 2700 block of Lemon Grove Avenue.

According to police, Stringer was in the store only for a few minutes and then went out to his car. When he came back inside, he was armed with a shotgun.

He demanded gasoline in his car and allegedly threatened to kill the gas station clerk if his demands weren’t met, police said. Once the pump was connected to the suspect’s car, the clerk walked back inside. The suspect then drove off.

But Stringer’s alleged crime spree was not over.

Police said Stringer then made his way to the City of Orange. Just before midnight, he walked into a Circle K convenience store in the 2500 block of E. Chapman Avenue and allegedly pointed a gun at three victims inside the store.

The Orange Police Department said Stringer demanded the clerk activate his gas pump and give him a pack of cigarettes. He ordered another victim to go out and pump gas into his Buick Lacrosse and told the third victim to leave.

With his gas tank filled, Stringer drove away from the gas station in the Buick. A security guard then reported the robbery to police, who quickly tracked down Stringer as he drove.

Officers tried to pull him over, but Stringer kept driving, leading police on a 45-minute, high-speed pursuit from Orange County to Riverside County.

Ultimately, California Highway Patrol officers laid out spike strips and successfully disabled Stringer’s car.

A SWAT standoff and two hours of negotiations between Stringer and officials followed. At one point, Stringer threw his gun out of the car. After that, he surrendered to SWAT officers with the Riverside
Police Department, who then turned him over to the Orange Police Department.
 

A state labor agency has ordered the City of San Diego to bring back defined pensions for employees – a move that raises the prospect of years of further legal wrangling involving several thousand municipal employees and untold millions of dollars.

In 2012, San Diego voters approved Proposition B, which replaced "defined benefits" pensions with 401(k)-style retirement plans.

The Prop. B campaign gathered a record 116,000 signatures, at a cost of more than $1 million, and was passed by a two-thirds majority.

Labor unions challenged the measure on grounds that management had violated a state law known as the Meyers-Milias-Brown Act (MMBA) , requiring the city to engage in good-faith “meet-and-confer “ negotiations.

Critics said former San Diego Mayor Jerry Sanders illegally collaborated with citizen initiative groups to end the traditional pensions for all new hires except police officers.

On Wednesday, the California Public Employment Relations Board (PERB) agreed and ordered the City of San Diego to reinstate traditional pensions, and retroactively reimburse the employees “for the value of any and all lost compensation, including but not limited to pension benefits . “

The city will also owe employees 7 percent interest for any losses since Prop. B took effect, and be required to pay their attorneys’ fees – now estimated as running into seven figures.

The 65-page PERB order included this language: “… the city cannot exploit the tension between the MMBA and the initiative process to evade its meet-and-confer obligations.”

San Diego City Attorney Jan Goldsmith said the ruling -- which upheld an earlier finding by a PERB administrative law judge -- was expected, and will be contested if the City Council follows his legal advice.

“The law does not give labor unions the power to negotiate the terms of a citizens' initiative," Goldsmith said.

A spokesman for Mayor Kevin Faulconer, who backed the measure as a city councilmember at the time, issued this statement on the ruling: “Mayor Faulconer believes the will of the voters should be upheld and is confident that an appellate court will affirm the right of the San Diego people to enact pension reform.”

City labor leaders predicted otherwise – pointing out that the 4th District Court of Appeal had rebuffed an attempt by the city to sidestep PERB administrative proceedings on the unions’ claims of “unfair labor practices”.

“The city will continue to follow (Goldsmith’s) advice at its own risk,” said Michael Zucchet, president of the city’s largest worker bargaining group, the 4,000-member Municipal Employees Association.
“The mayor just simply can’t take off his mayor hat and put on his private citizen hat,” Zucchet told NBC 7.

Said Frank De Clercq, former president of the International Fire Fighters Local 145: “They can appeal whatever they want, but in fact the citizens are going to be on the hook for enormous legal bills on both sides.”

DeClerq said Sanders had reneged on a promise not to subject fire fighters to the terms of Prop. B, and to exempt them along with members of the San Diego Police Officers Assn., who continue to receive traditional pension benefits.

“We tried and tried to get them to meet and confer,” he recalled, “but they refused. They just blatantly shut us down and said ‘No, we’re not doing it’.”

Ed Harris, spokesman for the San Diego Lifeguard Assn., says Prop B has hurt the city’s efforts to recruit and retain employees in competition with other public agencies that offer defined pension benefits.

“Sanders and Faulconer touted this as such a victory for the taxpayers,” Harris said in an interview, “but the reality is, it will end up costing the taxpayers … the savings were all out of the five-year pay freeze.”

In the world of milk and eggs, 2015 was a strange year for grocery stores in San Diego.

After a year of grocery stores opening and then folding, 2016 will see a diversity of markets locally.

Haggen, a Washington state chain, opened 19 stores in San Diego in 2015, but high prices and poor selection forced the company to close its doors and file for bankruptcy.

SDSU professor Miro Copic says that Haggen teaches us that money alone cannot win over shoppers.

“Horrible execution on every level,” he explained of Haggen’s expansion last year.

Some of Haggen's former stores will become Asian and Hispanic markets. Gelson's and Bristol Farms will offer high end choices, but the majority are turning into Smart and Final Extra stores where low prices and bulk sizes shake up the grocery landscape.

“You have a whole slew of new players in the marketplace. You have an expansion of the ethnic concepts,” Copic told NBC 7.

Winco and Aldi are also coming to San Diego and their low prices may push Ralphs and Vons to lower their prices to stay competitive.