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March 19, 2009 Volume 14, Number 8
This Issue of the BOMA San Francisco Advocate Is Brought To You By:
THE SWIG COMPANY
BOMA NEWS
BOMA SAN FRANCISCO MEMBER SURVEY 2009 – COMPLETE BY MARCH 24
With the San Francisco Board of Supervisors still contemplating a special election to increase and create new taxes, your BOMA Advocacy team needs to know what resources our membership (that's you!) possesses.
You should have received BOMA San Francisco's 2009 Member Survey via email on March 4, 2009,
which queries your intellectual and technical capabilities, as well as your personal connections (elected or non-elected public policy makers or key staff members) to those in local, state, and federal government.
Please take a few minutes to complete the survey and submit it by March 24, 2009.
If you did not receive the survey, please contact John Bozeman, BOMA's Legislative Assistant, at (415) 362-2662, etc. 116, or johnb@boma.com.
Helping BOMA helps you, and our industry.
BOMA SAN FRANCISCO'S NEW ADVOCACY BLOG!
Your BOMA San Francisco advocacy team has a new web-based tool to keep you in
the loop on up-to-the-minute updates in the wild world of San Francisco politics:
The all-new BOMA SAN FRANCISCO ADVOCACY BLOG! The new blog will will allow you to stay
in touch with BOMA's advocacy work as it happens. We'll be updating the blog
with information and pictures from our meetings with San Francisco politicians,
our dealings with the movers and shakers in the City's government departments,
and issues that affect the commercial real estate industry. Stay tuned...more
often!
BOMA EARTH AWARDS RECEIVED 45 ENTRIES – A NEW RECORD!
BOMA San Francisco has received 45 entries for our 2009 EARTH Awards competition—a 26% increase from 2008! Thank you to everyone who submitted their building for consideration in this significant program.
The EARTH Award program rewards members with the best overall conservation efforts, including recycling programs, energy and water conservation efforts, air quality and toxic reduction programs, support for public transportation, and effective use of tenant education programs geared to promoting sustainability practices in commercial office buildings. BOMA San Francisco Environment Committee created the EARTH Award program as an opportunity for members
to consider the entire spectrum of programs and practices that constitute an
effective "sustainability program" for office buildings including what policies
and procedures should be adopted that can help move a property toward becoming "green".
Please make sure to attend BOMA San Francisco's 2009 EARTH Awards luncheon
on April 22nd from 11:30 a.m. to 1:30 p.m. at Hotel Nikko, 222 Mason, between
Ellis & O'Farrell. Scott Moran, Director of Project Management, at the California
Academy of Sciences will provide the keynote address. The new Academy
of Sciences building has achieved a LEED Platinum rating from the U.S. Green
Buildings Council.
BOMA'S SUSTAINABLE "GREEN" BUILDINGS SUPPLEMENT IN THE SF BUSINESS TIMES
BOMA San Francisco will have a special supplement featuring San Francisco's
sustainable office buildings in the April 24th edition of the San Francisco Business Times (SFBT). The supplement will also carry the listing of all the entries in BOMA San Francisco's 2009 EARTH Awards competition, as well as pictures and descriptions of the winning buildings. We are looking for members who would like to advertise in this special publication that will reach over 100,000 readers (BOMA members get a discounted rate). The deadline to reserve space and submit your artwork is April 8, 2009. For more information, click here.
REMEMBER! THE BOMA EXPERIENCE EXCHANGE REPORT DEADLINE IS APRIL 15!
The commercial real estate industry's best benchmarking tool, the Experience Exchange Report (EER) is now available online for BOMA members.
Developed in conjunction with well-respected industry research firm, Kingsley
Associates, the new EER's data will be available via the Web as the book and
CD versions will no longer be available. This new Web-based resource is easier
and faster to use, completely interactive and offers tremendous flexibility.
BOMA members will be able to submit and locate data more quickly and efficiently
than ever before. Please be aware that the deadline for submitting data is APRIL 15! Click here to start submitting data now!
BOMA CALIFORNIA'S FEBRUARY 2009 CONSTRUCTION CODES & STANDARDS
RESEARCH REPORT
Please click here to view BOMA California's most recent research report, which summarizes BOMA's activities with regard to Construction Codes and Standards at the state level.
BOMA SAN FRANCISCO LEADERS MEET WITH SUPERVISOR ERIC MAR
BOMA San Francisco leaders and staff met with Supervisor Eric Mar (District 1) on March 5, 2009 to introduce him to the association and to discuss the current state of commercial real estate in San Francisco. The meeting was very productive. BOMA representatives emphasized that its members house the majority of the city's small business community, and legislation and/or taxes that are assessed on commercial property owners invariably also get passed on to these same small business tenants.
SF BOARD PRESIDENT DAVID CHIU IS NOT SUPPORTIVE OF CONGESTION PRICING
In a KCBS In Depth interview recently, San Francisco Board of Supervisors President David Chiu (District 3) stated that he is not supportive of any immediate or short-term implementation of congestion pricing. Mr. Chiu is, however, open to studies of the long-term affects of the proposition.
BOMA San Francisco opposes congestion pricing
and we are pleased that Supervisor Chiu has taken a "go slow" position on it.. Please click here for the details. You can also view this posting on our new BLOG!
TENANTS LEAVING ITEMS BEHIND? BOMA SPONSORED LEGISLATION
MIGHT HELP
Please be aware that in 2008, BOMA sponsored legislation (AB 2025, Silva), which increased the dollar amount for determining whether a commercial landlord must dispose of a departed tenant's unclaimed property via public sale, or dispose of the property themselves, from $300 to the lesser of $750, or $1 per square foot.
SAN FRANCISCO IS SECOND IN TOP 25 LIST OF ENERGY STAR CITIES IN AMERICA
Congratulations to those buildings in San Francisco who were EPA ENERGY STAR Rated in 2008! Indeed, almost all are BOMA San Francisco members! San Francisco was second in country—Los Angeles was first, but they are geographically much larger than San Francisco—with the number of Energy Star qualified buildings. Click here for the full list.
This incredible accomplishment would not have been possible without the hard work of the BOMA San Francisco membership. Thank you for staying ahead of the curve and for making benchmarking a priority for your building.
REMEMBER TO TURN OFF YOUR LIGHTS FOR EARTH HOUR 2009 ON MARCH 28th
BOMA San Francisco asks for your participation in the symbolic Earth Hour 2009 event. Cities around the world, with San Francisco as one of the flagship cities, will participate in this event by doing one simple thing: turning off the lights for one hour in commercial buildings, small businesses, and homes.
Please make sure to turn off all non-emergency lights in your building (as well as those in your home) on March 28th from 8:30 p.m. to 9:30 p.m.
as a sign of your concern about global warming, and to show your support for reducing carbon emissions. Please click here to view the motivational Earth Hour 2009 movie.
Please note that the Earth Hour 2009 event is part of a larger effort, the Earth Hour 24 x 7 Challenge,
to make everyday changes that reduce energy consumption and combat global warming. Click here to learn how you can help with this new San Francisco initiative.
GENERAL NEWS
2009 CITY BEAT POLL: SAN FRANCISCO ELECTORATE OPPOSES TAX MEASURES
The San Francisco Chamber of Commerce's 2009 CITY BEAT Poll—sponsored in part by BOMA San Francisco, confirms that San Francisco voters are in opposition to proposed tax measures that would may appear in a future city election this year. Specifically, the numbers show that:
* 64 percent oppose an increase in property tax or parcel tax on homeowners;
* 57 percent oppose a new gross receipts tax on rental income; and
* 54 percent oppose a new fee on downtown business for Muni.
Please click here for the full poll results.
DOWNWARD IS THE CURRENT TREND FOR COMMERCIAL REAL
ESTATE
While we all are hopeful that the economy will spring back soon, it can be difficult
to stay optimistic with the mid-quarter (from the first quarter 2009) Class A
data from CB Richard Ellis (courtesy of the San Francisco Center for Economic Development's February Economic Summary): Class A asking rates have dropped by more than a dollar since January 1, 2009; vacancy east of Van Ness Avenue is 13.6%; and, the asking rental rate east of Van Ness Avenue is $41.60. There is a total of 6.3 million square feet of vacant space in the area east of Van Ness Avenue (direct and sublease Class A space).
Germane to your interests, the Financial District is currently sitting at 12.6% vacancy, with an average asking rate of $43.00. The South Financial District is at 12.2% vacancy with an average asking rate of $41.60.
Although times are tough, we can get through this together. Remember that BOMA San Francisco is your commercial real estate resource. Contact our office at (415) 362-8567 to inquire as to how we can help you!
CHANGES TO SF REAL ESTATE TRANSFER TAX ORDINANCE IS MORE THAN JUST A RATE INCREASE
In November 2008, San Francisco voters approved an increase of the property tax transfer rate to 1.5% for property valued at $5 million or more. This measure, as you might have guessed, has a direct impact on commercial real estate property transfers. In fact, transfer taxes may be applicable to transfers that were not previously subject to the transfer tax! Please click here to read more on the updated ordinance and how it might affect you.
SFPUC PROPOSAL: WATER AND SEWAGE RATES TO INCREASE
The San Francisco Public Utilities Commission (SFPUC) will most likely increase water and sewage rates over a five year period to both residential and commercial customers to pay for the Water System Improvement Program (WSIP)—mostly for seismic improvement projects. The final vote is expected to take place on May 5, 2009.
The impact to commercial interests would be a 13% increase in water rates; sewage rates would go up by 1%.
Please click here for more information on the proposal. New rates would be effective July 1.
POSSIBLE MARKET STREET BAN ON CARS? SEND US YOUR THOUGHTS ON THIS ISSUE!
You may have heard that the Board of Supervisors recently approved a study to determine the affects of both restricting and banning cars on Market Street from the Embarcadero to Van Ness Avenue (a map of which can be viewed here).
Your BOMA advocacy team would like to hear your thoughts on this issue!
Please send your feedback to BOMA San Francisco's Legislative Assistant, John
M. Bozeman, at johnb@boma.com.
CAL-OSHA MAINTENANCE REQUIREMENTS FOR PERMANENT SCAFFOLDING
Due to a number of incidents, as well as the lack of adequate inspection records
involving permanently installed window washing platforms and exterior building
maintenance systems, CAL-OSHA has distributed a letter detailing the annual maintenance requirements for permanently installed scaffolding systems. The letter can be viewed here. The California Code of Regulations noted in the letter, under Title 8, can be viewed by clicking on the following section numbers: 3296; 3297 ; and 3328(b).
So what's the bottom line to building owners and managers?
Site inspections are no longer adequate. Annual maintenance will include removing hoists from the building to be shop tested—to the manufacture's specifications—and to have routine maintenance performed. A detailed account of this maintenance will need to be documented in the building's records.
As such, there is a need for BOMA San Francisco members
to be aware of the possible increased maintenance costs
from the CAL-OSHA requirements. Scaffold Inspections & Testing (S.I.T.) companies may charge more for inspections, and some manufacturers have started restricting sale of parts to other S.I.T. licensed contractors, which might require a hoist manufacturer to travel from outside the Bay Area to service the particular type of equipment. If you plan to start the bidding process for a new exterior building maintenance system, make sure your RFP includes a line item for maintenance that included the new
additional maintenance requirements.
PG&E ELECTRICITY RATE INCREASE AVERAGES 9.1%!
You read that right; PG&E has increased its electricity rates for E-19 and E-20S customers by an average of 9.1% as of March 1, 2009 in response to regulatory agency requirements. But wait! There is the possibility of additional increases in January 2010! A large part of the increases are being blamed on high cost energy contracts that the state's Department of Water Resources signed during the energy crisis in 2001. Details can be found here.
NEW PG&E WORK PROCEDURES FOR ARC FLASH HAZARDS
As of March 1, 2009, PG&E has implemented new work procedures for employees who may be exposed to Arc Flash Hazards. PG&E now requires contractors, third-party agents, and all sub-contractors working for the company to wear Flame Retardant (FR) clothing for access to areas designated by "FR Required" signage. For questions or concerns, please email AFH Program Committee@pge.com.
Office buildings must also comply with the state's requirements for protecting employees and service personnel from the possible exposure to Arc Flash.
SAN FRANCISCO RECYCLING: LESS EFFICIENT THAN MUMBAI?
Chris Levaggi with the Golden Gate Disposal & Recycling Company shared an article recently with BOMA San Francisco's Environment Committee that compared San Francisco and Mumbai's recycling systems (i.e., high-tech vs. low-tech). Would you be surprised to discover that Mumbai's "rag-pickers" do a better job of sorting recyclable than San Francisco (gasp!)? Click here to read the article.
TURNING YOUR LIGHTS OUT...IT'S FOR THE BIRDS
The Golden Gate Audubon Society is working with the San Francisco Department of the Environment and PG&E on "Lights Out for Birds" in San Francisco. The program, which runs from February to May and August to October, asks that building owners, managers and tenants turn off their lights after dusk and leave them off until daylight during these migration months. Please consider volunteering your building for participation in this important program, which will save energy, money and birds! You can find the details here, and the sign-up form here.
SMALL BUSINESS NETWORK'S 2009 SMALL BUSINESS RECOGNITION AWARDS
Are you a small business? If so, consider nominating yourself for the Small Business Network awards this year! The Small Business Network of San Francisco will be holding its 25th Anniversary Gala on May 14, 2009 at the Marines' Memorial Club , San Francisco from 6:00 p.m. to 8:00 p.m.
The deadline to apply is March 30, 2009.
Check out the details on the award entry form, here.
TOOLS YOU CAN USE
SFPUC'S FREE WATER-WISE EVALUATION
At the March 3, 2009 BOMA San Francisco Environment Committee meeting, Susan Tensfeldt, Water Service Inspector with the San Francisco Public Utilities Commission (SFPUC), informed the committee that the SFPUC has a
FREE
program to assist both commercial and residential customers in saving money on their water bill. The Water-Wise Evaluation program—which uses your billing history as a guide—has a water conservation technician visit your site who will provide a comprehensive review of your water usage and will produce a report with water saving (and money saving!) recommendations. With a water rate increase in July 2009 to the tune 13%, it's important to take advantage of this program right now. Please be aware that there is a 2-3 week lead time to schedule an appointment, so call the SFPUC Water Conservation Section today at (415) 551-4730.
WHAT'S YOUR TENANT HANDBOOK LOOK LIKE?
Boston Properties has created an online electronic version of their new Tenant Handbook, a resource for Embarcadero Center building operations, security, tenant amenities, policies, procedures, forms and much more. You can find the handbook here, and perhaps, get some good ideas for improving you building's tenant handbook.
EXERCISE DUE DILIGENCE: HOW TO DETERMINE THE CONDITION OF COMMERCIAL PROPERTY
The American Standards and Testing Methods Society has published a guide to help you determine the condition of commercial real estate before purchase. It is a comprehensive look at all aspects of a property and how to assess its value. For detailed information and to purchase the guide, please click here.
UPCOMING EVENTS OF INTEREST
UPCOMING BOMA EVENTS – CHECK THEM OUT!
Please click here to view BOMA San Francisco's calendar of events—BOMA committee meetings, education events, seminars, social events, and workshops—for 2009.
PG&E'S 6th ANNUAL WATER CONSERVATION SHOWCASE –
MARCH 24, 2009
Many experts believe that water will surpass energy as the most notorious and coveted resource in California. Unpredictable levels of precipitation and other source issues, climate change, population growth, and risks to the infrastructure are some of the water-related concerns facing the state today. This year's showcase will address many of these issues through presentations and table-top displays. Information on water-conserving strategies, the energy and water relationship, policy updates, technological
developments, and case studies will also be included.
The Water Conservation Showcase will be at the Pacific Energy Center, 851 Howard Street, San Francisco, CA from 10:00 a.m. to 6:30 p.m. The keynote presentation will start at 6:00 p.m.
More information on the schedule for this year's presentations is located here.
BOMA SAN FRANCISCO'S MARCH MEMBERSHIP LUNCHEON – DATE CHANGED TO MARCH 31, 2009
BOMA San Francisco will host its monthly Membership Luncheon on March 31st at The City Club. Our special guest speaker is Jana Turner, founder of JT Solutions and a principal/partner in Real Estate Talent Solutions, and she will present on how to retain key employees, key clients and key profits during difficult times. Please click here for more information.
BOMA SAN FRANCISCO'S PAC AT THE PARK –
APRIL 8, 2009
BOMA San Francisco will host it's 9th annual PAC at the Park patio party at the China Basin Landing Wharf, 185 Berry Street on April 8th from 4 p.m. to 7 p.m. Attending this event is BOMA's special guest, former San Francisco Giants player and manager, Jimmy Davenport. This is a wonderful opportunity to meet a San Francisco Giants great, mingle with BOMA San Francisco PAC Board Members, and to enjoy some wonderful food and beverages! Please click here for more information.
PRESENTATION: SUBSTANCE THAT NEUTRALIZES TOXIC LIQUID SPILLS–
APRIL 14, 2009
In celebration of Earth Day, Dr. Paul Edmiston, Associate Professor of Chemistry, College of Wooster, Ohio, will present on his patented new substance that restores the environment after catastrophic spills. The substance, whether in bodies of water or on dry land, resembles shavings of ground glass that swells to more than five times its size as it surrounds and "swallows up" various liquids. What's most impressive is that the substance is resistant to water. Once the material is removed, the water
left behind is fresh and clean.
The presentation will be at the San Francisco Federal Building Auditorium, 90 Seventh Street, lower level, on April 14, 2009 from 12:00 p.m. to 1:00 p.m. Be sure to have proper ID for entry
BOMA SAN FRANCISCO'S RECEPTION FOR SF CITY TREASURER JOSE CISNEROS –
APRIL 16, 2009
BOMA and Seligman Western Properties are throwing a reception for City Treasurer Jose Cisneros on April 16th from 5:30 - 7:30 p.m. on the 40th floor of The Pyramid Center. Click here for the invitation.
BOMA SAN FRANCISCO'S GAPAC MEETING –
MAY 6, 2009
BOMA San Francisco's Government and Public Affairs Committee (GAPAC) meeting on May 6, will include two special quest speakers from the San Francisco Public Utilities Commission: Ed Harrington, General Manager; and Laura Spanjian, Assistant General Manager, External Affairs. Please make sure to attend this important meeting!
The GAPAC meeting will be at the BOMA San Francisco Office, 233 Sansome Street, 8th Floor, on May 6, 2009 from 12:00 to 1:00 p.m. For information or to join the committee, please contact the GAPAC Chair, Susan Court, at scourt@cwpmc.com.
CALIFORNIA SUSTAINABILITY MAYDAY WORKSHOP 2009 –
MAY 13, 2009
California Sustainability Mayday is a full day workshop designed to provide the Operation and Maintenance community with results-driven practical tools and strategies for assessing and implementing sustainable business operations within their organizations. Please click here for more information. The California Sustainability Mayday will be on May 13, 2009, from 8:00 a.m. to 5:00 p.m. with a networking reception to follow.
SMALL BUSINESS NETWORK'S 25TH ANNIVERSARY GALA –
MAY 14, 2009
Please be sure to attend the Small Business Network of San Francisco's 25th Anniversary Gala on May 14, 2009 at the Marines' Memorial Club, San Francisco from 6:00 p.m. to 8:00 p.m.
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THIS ISSUE OF THE BOMA SAN FRANCISCO ADVOCATE WAS GENEROUSLY SPONSORED BY:
THE SWIG COMPANY
The Swig Company, LLC, headquartered in San Francisco, is a private investment company with a 70-year history of development, ownership and management of commercial real estate properties in major markets throughout the United States. The Company's diversified portfolio includes 9+ million square feet of office buildings in markets such as New York, San Francisco, and Southern California. The Swig Company also owns and controls approximately 650,000 square feet of industrial space, and an assortment
of other credit-leased properties and land for development. The Swig Company's business plan calls for moderate growth into the future. Its primary investment mission is to add value to its investment portfolio through proactive asset management, acquisitions, dispositions, selective development and redevelopment, and professional property management.
For more information on The SWIG COMPANY, please click here.
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