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December
31, 2003 Volume 9, Number 11
This issue of the BOMA San Francisco Advocate
is brought to you by
Trust Constructive Solutions
Happy
New Year to all BOMA San Francisco Members!
2003 BOMA Advocacy Year-In-Review Issue.
BOMA’s
advocacy and political action efforts on behalf of the commercial
real estate industry were non-stop in 2003. Although the economy
was still in the doldrums through most of the year, the legislative
and regulatory action in Sacramento and at San Francisco’s
City Hall continued to play a pivotal role in the future value
of commercial office buildings in the state and city. Political
forces hostile to property owners have made it increasingly
difficult for owners to build, improve, expand, rent, or maintain
their properties through laws and regulations that make it
more complicated, expensive, and time-consuming to do business.
It’s no wonder that Governor Arnold Schwarzenegger
won in the recall, or that Supervisor Gavin Newsom
won election as our next Mayor in San
Francisco: voters in both the state and our city wanted a
change in government that will produce results, not rhetoric,
and measurable improvements, not more utopian ideological
promises. Kamala Harris won election as the
new District Attorney for San Francisco on the platform of
taking crime seriously in the City, and prosecuting it, not
excusing it, as had been the case under Terence Hallinan.
BOMA members can take heart that these are new changes that
will be good for the city’s business community, and will help
us to generate new jobs, add more tenants, begin to reduce
the cost of doing business in this expensive city, and state,
and finally, to do something about the deteriorating quality
of life in our town. It will be our challenge in 2004 to ensure
the will of the voters is not disregarded or diluted by political
leaders who want to tax and spend and regulate rather than
help grow our economy. BOMA and its advocacy efforts will
remain the major means for commercial property owners to voice
their support or opposition to future proposals from our elected
leaders. Your support of our PAC and our association will
remain critical to our future success. Here is what BOMA accomplished
for you in 2003:
1.
Supported several city propositions (C, D, K, M),
which all passed, that would ban aggressive panhandling, require
better accountability for city departments responsible for
maintaining our streets and parks, continue a local transportation
sales tax, and create a stronger small business commission.
2. BOMA was the first city-wide organization to endorse Gavin
Newsom for election as our next city Mayor, and the
organization and its members held numerous events to raise
funds for his campaign. Newsom won 53 to 47%.
3.
BOMA endorsed Bill Fazio for District Attorney,
and then vigorously backed Kamala Harris
for DA, when she made the run-off, and ultimately prevailed
against current DA Terence Hallinan, whose
past performance in prosecuting crime was the worst in the
state, according to published SF Chronicle investigations.
4.
BOMA co-sponsored (with SFAA) a fundraising luncheon for Assembly
Member Leland Yee, our Westside state legislator
who has been sensitive to property owner issues, which netted
over $15,000 for his re-election campaign this coming year.
5.
BOMA’s Political Action Committee and Associates Council jointly
sponsored our 3rd Annual Pac Bell Park/Giants Game Fundraiser/BBQ
which raised over $5,000 for our political action committee’s
coffers.
6.
BOMA’s Building Codes Task Force successfully worked with
the City’s Department of the Environment (and very capable
Director Jared Blumenfeld) to create a new
tracking program for the city’s construction and demolition
debris to be recycled without causing problems with the current
building permit system.
7.
BOMA’s Building Codes Task Force worked successfully with
the city’s Department of Building Inspection (and their very
capable Director Frank Chiu) to develop and
publish a “Path of Travel Certification” permit bulletin which
will allow building owners to certify their common areas for
disabled access compliance for a period of three years, and
avoid costly duplication in tenant renovation plan submittals.
8.
BOMA’s Government and Public Affairs Committee issued an updated
Land Use Policy Statement that encourages
the city to carefully consider the impacts on existing property
owners of increased restrictions that may push tenants elsewhere.
BOMA has called for a reform of the city’s conditional use
permit process, the discretionary review process, and for
a more proactive, better funded Planning Department, which
would create pre-zoned/approved areas in town for specific
types of future developments.
9.
BOMA’s Government and Public Affairs Committee held meetings
with City Supervisors Sophie Maxwell, Fiona Ma, Matt
Gonzalez, Bevan Dufty, Tony Hall, City Treasurer
Susan Leal, and City Controller Ed
Harrington.
10.
BOMA’s Government and Public Affairs Committee reviewed and
commented on many local proposals that – in most cases – continue
to be issues we will track in 2004 including:
Permit
Expediter Registration (oppose)
Slip-Resistant Manhole and Sub-sidewalk Basement Covers
(oppose)
Formula Retail Stores Restrictions (oppose)
Large Retail Stores Restrictions (oppose)
Underground Utility Vault Fees and Assessments (oppose as
proposed)
Graffiti Abatement Requirements (opposed as proposed)
Care Not Cash Proposal (support as approved by voters)
Reauthorization of the Union Square Business Improvement
District (support)
Sign Ban Legislation (support)
11.
BOMA’s San Mateo Government and Public Affairs Committee held
several important meetings, one with Christine Maley-Grubl,
Executive Director of the Peninsula Traffic Congestion Relief
Alliance, one with state Assembly Member Gene Mullin,
and one with Carl Guardino, President and
CEO of the Silicon Valley Manufacturers Group.
12.
BOMA’s Commercial Recycling Task Force continued to work with
the City’s Department of the Environment and Golden Gate Disposal
and Recycling to implement the best, most innovative and successful
recycling practices in office buildings anywhere in the country.
2004 Challenges: We have many,
but here are the major ones we see on the horizon for local
commercial property owners…
1.
Seeing positive reforms initiated by the Newsom mayoral administration
being passed and implemented by the Board of Supervisors,
city departments, and city employees.
2.
Seven (out of 11) City Supervisorial districts will be up
for election in November (Districts 1, 2, 3, 5, 7, 9, and
11). Which incumbents or challengers have or will sincerely
attempt to reach out to the city’s business community, address
our need for help in reducing bureaucratic hurdles and restrictions
to job growth, and, rather than attempt to increase taxes
on the private sector, push to reduce the size of city government?
3.
Supervisor Gonzalez’ proposal to (again) increase the Local
Property Transfer Tax, this time on properties costing $2M+,
may also be on the November 2004 ballot.
4.
The new threat of a state ballot initiative to increase commercial
property taxes, which would be an unequal and unfair action
pitting one type of property owner against another. Such action
would also threaten the very future of Proposition 13.
5.
The continued need to create a united voice in the business
community that can make a difference at City Hall, and to
forge those relationships with grassroots organizations representing
moderate voters.
6.
A possible new gross receipts tax threat by the City aimed
at real estate businesses.
7.
A continued effort to streamline local government costs and
to increase its efficiencies by upgrading its city services
website, particularly at Planning and Building, to create
a 311 information hotline citywide, and promote easier commerce
with our city government via the internet.
8.
Make meaningful reforms to the city’s conditional use and
discretionary review appeal processes.
9.
Support efforts to create more homeownership opportunities
in San Francisco for the middle/working classes.
New
Leadership for BOMA Advocacy Committees in 2004
Jim Christian of the Shorenstein Company will assume
the Chair of the BOMA-SF-PAC in 2004, with Margot
Crosman of Unico Properties becoming the Vice-Chair.
Gene Valla of the Lurie Company will continue
as Treasurer, and Mike Freeman, of the McCarthy-Cook
Company steps up to be Assistant Treasurer. Tim Falvey
of the Hanford-Freund Company joins the PAC Board. Rick
Buziak of Boston Properties takes over as Chair of
the BOMA-SF Government and Public Affairs Committee, with
Angelica Ting of Landmark Exchange Management
becoming its Vice Chair. Gordon L’Estrange,
of Ottolini, Booth & Associates, Architects, will continue
as Chair of the Building Codes Task Force, with Brad
Tardy of Boston Properties stepping up to Vice Chair.
Warren Mead of Cushman & Wakefield will
become the new chair for the Commercial Recycling Task Force
with Chris Wong of the Swig Company continuing
as Vice Chair. Harout Hagopian of Equity
Office Properties, and Denise Faleschini
of Glenborough Realty Trust, will continue as Chair and Vice
Chair of the San Mateo Government and Public Affairs Committee.
The BOMA San Francisco Energy Committee (under Bob
Worthen’s excellent leadership for the past two years)
has been eliminated for 2004. Its inception was based on the
energy reforms created under AB 1890 in 1998, which allowed
the creation of a BOMA Power Pool. However, direct access
is now no longer permissible under state law and the major
action on setting commercial energy rates is at the state
level (CPUC). Therefore, BOMA San Francisco has proposed BOMA
California establish a permanent Energy Committee,
to protect and represent our interests in this area. The BOMA
SF GAPAC will monitor our interests locally on city energy
matters and proposals.
SF
Public Works Proposes $12/Sq. Ft. Annual Assessment for Utility Vaults
in Public Right-of-Way
At several hearings recently, an administrative
officer heard the San Francisco Public Works Department call
for a new annual assessment fee to be charged to building
owners who have utility vaults under the public right-of-way
(sidewalks, streets, etc.). BOMA objected to the initial $25
per square foot rate (based on the average parking space rental
rate) and continues to oppose the $12 per square foot amount,
most recently proposed by DPW. The decision of the administrative
officer is still pending, but must be ratified by the Board
of Supervisors. BOMA contends the fee should be based on unimproved
dirt rent, which is what the spaces were before the vaults
were built by the owners to house PG & E transformers.
A list of affected properties is available at the BOMA office.
Department
of the Environment Urges Adoption of Stricter Energy Policies
in San Francisco
Cal Broomhead, the Energy
Programs Manager for the City’s Department of the Environment,
recently proposed several major initiatives to change the
city’s codes and standards regarding energy consumption in
commercial and residential buildings. He is urging the San
Francisco Planning and Research Association’s (SPUR) Sustainable
Development Committee to support the following ideas:
1.
Move to adopt the 2005 Title 24 revision for both commercial
and residential projects in 2004. The revision, recently approved
by the California Energy Commission, includes several new
areas including outdoor lighting and post-construction performance
verification. Early adoption would capture many new projects
being developed in Mission Bay, at Hunters Point shipyard,
and other upcoming developments.
2.
Restore the Commercial Energy Conservation Ordinance (CECO).
CECO was instituted in 1989 and, according
to Broomhead, was removed by the Board of Supervisors
in 1996 due to several “institutional problems”. CECO
required energy efficiency measures at time-of-sale or major renovation.
The measures were primarily basic building maintenance measures.
3.
Institute mandatory requirements for large buildings.
The City should require that basic energy-efficiency measures
be implemented by a specific date. For example, most of the
large office buildings in SF have already retrofitted
from inefficient T12 lighting to high efficiency T8
lighting. However, some buildings have not. An ordinance
requiring the few remaining to comply by a date certain could
stimulate reluctant building owners to participate in current
incentive programs, according to Broomhead.
4.
Amend the Residential Energy Conservation Ordinance (RECO)
to require specific energy measures be installed at the time-of-sale
of a residential unit. The new energy measures
would primarily address use of natural gas but could be “upgraded”
to address electricity use.
BOMA
and other property owner groups will review these recommendations
and will work to present a united response with the city.
PG
& E Promotes Critical Peak Pricing Program to Commercial
Users Including Office Buildings
PG & E has instituted a new program that may
benefit customers who have at least one account demanding
more than 200 kW, if they
can reduce or shift their electricity needs during the summer
season away from peak periods (noon – 6 p.m. weekdays) when
power emergencies may occur. Energy rates during a critical
peak period (emergency) are approximately three to five times
higher than during normal peak periods. The program will benefit
single tenant office buildings primarily, as multi-tenant
office buildings have leases and other obstacles which do
not allow for such immediate energy reductions in most cases.
For more information, check out http://www.pge.com/.
If you qualify, and can do it, the building owner and tenants
can save substantially on peak period utility costs.
Worthy
Political Causes For BOMA Members To Support
2004 may be arriving, but several debts
from the recent local elections are still outstanding and
worthy of our support to retire. The first is the Mayor’s
race by City Treasurer, Susan Leal. Anyone
interested in helping her should make checks payable to Susan
Leal for Mayor” and send them to 530 Howard Street, Suite
250, San Francisco, CA 94105. Local contributions are limited
to $500, and subject to aggregation rules, so call BOMA with
any questions. Her ID# is 1251900. The second is a leftover
debt from Proposition K, the measure to continue
the ˝ cent sales tax for local transportation projects and
operations. Members wishing to help this worthy effort (which
BOMA’s PAC supported) should send their contributions to “Keep
San Francisco Moving – Yes on Prop K” c/o Nichelle Lyons at
the San Francisco Chamber of Commerce, 235 Montgomery Street,
12th Floor, San Francisco, CA 94104. There are no limits and
the campaign has sustained a debt of almost $100,000.
Of
immediate need are funds to support Gavin Newsom’s
San Francisco 2004 Swearing-In Committee, a 501 ©4
non-profit corporation established to cover the costs associated
with the January 8th swearing in and transition activities
of the new mayoral administration. These costs cannot be paid
for by the City and County of San Francisco. A voluntary limit
of $15,000 has been established per individual or entity and
contributions are not tax deductible under state or federal
law. Mail checks to the San Francisco 2004 Swearing-in Committee,
c/o Chris Gruwell, 1625 Van Ness Avenue,
San Francisco, CA 94109. (415-995-1770, ext. 511)
TRUST
CONSTRUCTIVE SOLUTIONS
50
California Street, Suite 2500
San
Francisco, CA 94111
415-395-4473
/ Fax: 866-824-7965
www.trustcs.com
Commercial
tenant improvements
Construction
project management services
Facility
upgrades, corporate relocates
Interior
restack projects, moves/adds/changes
Email
Michael Ma at mikema@trustcs.com
for more information!
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