Ken Cleaveland
Director
Government & Public Affairs
kenc@boma.com
IN THIS ISSUE

BOARD OF SUPERVISORS PRESIDENT DAVID CHIU MEETS WITH BOMA SAN FRANCISCO BOARD OF DIRECTORS AND THE BOMA SF-PAC

SAN FRANCISCO ASSESSOR PHIL TING SPEAKS TO BOMA SAN FRANCISCO PAC MEMBERS

REX HIME - PRESIDENT AND CEO OF THE CALIFORNIA BUSINESS PROPERTIES ASSOCIATION SPEAKS TO BOMA SAN FRANCISCO MEMBERSHIP

CALIFORNIA STATE BOARD OF EQUALIZATION CHAIRWOMAN BETTY YEE SPEAKS TO BOMA SAN FRANCISCO MEMBERS

SUBSCRIBE TO BOMA SAN FRANCISCO’S NEW ADVOCACY BLOG!

SAN FRANCISCO CONTROLLER BEN ROSENFIELD'S BUDGET UPDATE

SUPERVISOR SEAN ELSBERND SPEAKS AT THE CHAMBER OF COMMERCE

IMPRESSIVE GATHERING OF LEADERS CITE BAY AREA AS INNOVATION LEADER AT SF BUSINESS TIMES SUMMIT
 
TO SPLIT ROLL OR NOT TO SPLIT ROLL TAX – THAT IS THE QUESTION

NO NEW TAXES BUT FIVE BALLOT MEASURES SET FOR NOVEMBER

BOARD OF SUPERVISORS & PROPERTY OWNERS APPROVE EXPANSION OF THE UNION SQUARE BID

SAN FRANCISCO BUSINESS TIMES' STRUCTURES BREAKFAST

MID-MARKET BALLOT MEASURE: SUPPORT THE ARTS AND RENEW MARKET STREET

SAN FRANCISCO DEPARTMENT OF BUILDING INSPECTION PRESENTATION: WHAT IS A HISTORIC BUILDING?

UPDATE: EXISTING COMMERCIAL BUILDINGS EFFICIENCY TASK FORCE

PUBLIC HEARING ON NEWLY PROPOSED FIRE DEPARTMENT ADMINISTRATIVE BULLETINS - SEPTEMBER 25

H1N1 SWINE FLU - LETTER TO BUSINESSES & ORGANIZATIONS FROM THE SAN FRANCISCO DEPT. OF PUBLIC HEALTH

UPDATE: MANDATORY COMPOSTING AND RECYCLING ORDINANCE

THE BOMA 2009 ONLINE EXPERIENCE EXCHANGE REPORT IS AVAILABLE NOW!

ADDITIONAL RISKS LANDLORDS SHOULD CONSIDER WHEN TAKING LETTERS OF CREDIT FROM COMMERCIAL LEASE TENANTS 

DEPARTMENT OF BUILDING INSPECTION: 10 MOST COMMON ERRORS DURING PLAN CHECK

SAN FRANCISCO BUILDING CODES – NOW ONLINE!

SFPUC’S FREE WATER-WISE EVALUATION


Direct all inquiries regarding
The BOMA San Francisco
ADVOCATE to:

Ken Cleaveland
415/362-2662 x111
kenc@boma.com

August 20, 2009                            Volume 15, Number 8
This Issue of the BOMA San Francisco Advocate Is Brought To You By:

 WAXIE SANITARY SUPPLY



BOMA NEWS

BOARD OF SUPERVISORS PRESIDENT DAVID CHIU MEETS WITH BOMA SAN FRANCISCO BOARD OF DIRECTORS AND THE BOMA SF-PAC

BOMA San Francisco’s leaders welcomed the San Francisco Board of Supervisors President, David Chiu, to a special luncheon held in the Bechtel Dining Room at the City Club, for the purpose of establishing a dialogue between Supervisor Chiu and the city’s commercial real estate industry. Chiu, a Harvard graduate, managed a high tech company before winning the District 3 Supervisor seat in November 2008.Supervisor Chiu shared his thoughts and observations on local governance. He identified several things he felt could be done to make government work better and provide for a sustainable economic future, including:

* Streamline onerous overregulation of local business
* Examine where we might streamline and perhaps consolidate City departments
* Address how the City contracts for services, with the aim of local sourcing wherever possible
* Tackle San Francisco’s growing pension liability and address the disparity between public and private sector wage and benefit packages
* Institute a 2-year budget cycle, complimented with a 5-year financial forecast
* Reform our tax system in a way that does not penalize job creation and growth

For the details, please click here to view our blog post on the meeting.


SAN FRANCISCO ASSESSOR PHIL TING SPEAKS TO BOMA SAN FRANCISCO PAC MEMBERS

San Francisco Assessor Phil Ting met with BOMA San Francisco PAC members on July 28th to discuss his push to modify Proposition 13 to create a split roll property tax. BOMA San Francisco and BOMA California strongly oppose a split roll tax, and the BOMA SF PAC Board questioned the wisdom of increasing taxes on businesses (which a split roll tax would do) during these tough economic times instead of reducing the size of state government.

For the details, please click here to view our blog post on the meeting.


REX HIME - PRESIDENT AND CEO OF THE CALIFORNIA BUSINESS PROPERTIES ASSOCIATION SPEAKS TO BOMA SAN FRANCISCO MEMBERSHIP

BOMA San Francisco welcomed Rex Hime, President and CEO of the California Business Properties Association (CBPA) to our July member luncheon recently. Mr. Hime spoke about how your BOMA dues are being put to work for you in Sacramento. Specifically, how real estate interests are faring under the new state budget and the grave threat of a split roll property tax.

California Business Properties Association is the recognized voice of all aspects of the commercial retail industrial real estate industry in California - representing the largest commercial real estate consortium with almost 12,000 industry members.

CBPA is the designated legislative advocate for BOMA California, ICSC, the California chapters of NAIOP, IREM, CREW, RILA and the California Downtown Association.

For the details, please click here to view our blog post on the meeting.


CALIFORNIA STATE BOARD OF EQUALIZATION CHAIRWOMAN BETTY YEE SPEAKS TO BOMA SAN FRANCISCO MEMBERS

California State Board of Equalization (BOE) Chairwoman Betty Yee spoke with BOMA San Francisco Government and Public Affairs Committee members yesterday about the State's economy, California's tax reform efforts and the BOE.

For the details, please click here to view our blog post on the meeting.


SUBSCRIBE TO 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 allow you to stay in touch with BOMA’s advocacy work as it happens. We are updating the blog with information and pictures from our meetings with San Francisco politicians, and the movers and shakers in City government departments, as well as cover the issues that impact the commercial real estate industry.  We encourage every BOMA member to sign up to automatically receive our blog updates via ONE daily email or news reader on our blog’s website.  Plug into the BOMA blog today!

 

GENERAL NEWS

SAN FRANCISCO CONTROLLER BEN ROSENFIELD'S BUDGET UPDATE

Your BOMA San Francisco Advocacy Team attended a presentation by San Francisco Controller Ben Rosenfield today for an update on the City's local economy and FY 2009-2010 budget. 

For the details, please click here to view our blog post on the presentation.
 

SUPERVISOR SEAN ELSBERND SPEAKS AT THE CHAMBER OF COMMERCE

Supervisor Sean Elsbernd addressed the San Francisco Chamber of Commerce recently, and reviewed the City’s fiscal status and future financial challenges with San Francisco business leaders.

For the details, please click here to view our blog post on the meeting.


IMPRESSIVE GATHERING OF LEADERS CITE BAY AREA AS INNOVATION LEADER AT SF BUSINESS TIMES SUMMIT
 
Gathering at the UCSF’s newest campus at Mission Bay, Speaker of the House Nancy Pelosi, SF Mayor Gavin Newsom, Sean Randolph, President and CEO of the Bay Area Council Economic Institute, Dale Bonner, California’s Secretary for Business, Transportation and Housing, John Kao, author of ‘Innovation Nation’ and ‘Jamming – The Art and Discipline of Business Creativity’ and a host of others discussed why the Bay Area was a leader in the world of innovation and would continue to be so in green tech, biotech, digitech, environmental stewardship, and high tech creativity.

Please click here for our blog post on the summit.


TO SPLIT ROLL OR NOT TO SPLIT ROLL TAX – THAT IS THE QUESTION

Phil Ting, San Francisco Assessor/Recorder, recently visited with BOMA San Francisco’s Political Action Committee Board to discuss his support for creating a split roll property tax in California. Ting said Proposition 13 needed to be amended to allow commercial property to be taxed at a higher rate, or higher rate of increase, or through more frequent re-assessments than residential property. Ting said the state’s continuing annual budget crisis demanded major reforms, one of which should be the creation of a split roll tax. Ting estimated such action could generate an additional $6-7 billion in annual revenues to local and state governments.

Of course, the Building Owners and Managers Association and its members at this meeting adamantly disagreed with Ting, and stated any split roll tax model would be inherently unfair and discriminatory. Our members also stated the state (and San Francisco!) first needs to reduce its overall costs before taxes are raised by any means.

Please click here for the remainder of the opinion editorial that we posted on our blog.


NO NEW TAXES BUT FIVE BALLOT MEASURES SET FOR NOVEMBER

While there was much concern that the Board of Supervisors would place several new tax measures before voters in November, thankfully, none of them will actually make it to the ballot. However, there will still be five measures for the San Francisco electorate to consider that will deal with budget reform, the number of aides the members of the Board of Supervisors can hire, and advertising.

The budget reform charter amendment, sponsored by Mayor Newsom and Supervisor David Chiu, would provide for a two year budget cycle, the development of binding budget guidelines, as well as other budget improvements. The other charter amendment would eliminate the restriction of two staff members per supervisor, allowing for the Board to increase their own staffing numbers, ad infinitum. 

Two of the advertising measures would allow for additional ad revenue to be generated in the San Francisco. The first, sponsored by Supervisor Bevan Dufty, would allow the City to sell the naming rights to Candlestick Park, and require a portion of the revenue generated to go to fund activities at the Recreation and Park Department. The second measure would provide for new general advertising signs in a proposed Market Street Theater Sign District between 5th and 7th streets on Market. A portion of the revenue from the advertising would flow to Tenderloin children’s arts programs and additional revenue would act as an incentive for property owners to use the existing buildings for arts and culture purposes. The third advertising measure would restrict the San Francisco’s ability to sell advertising space on new City street furniture or buildings – greatly inhibiting any future expansion of the City’s news rack and bus shelter programs.

Please click here to review all San Francisco November 2009 ballot measures, in detail.
 

BOARD OF SUPERVISORS & PROPERTY OWNERS APPROVE EXPANSION OF THE UNION SQUARE BID

The Union Square Business Improvement District (BID) expansion was approved by the San Francisco Board of Supervisors and the District property owners recently. Started in 1999 as the first BID in the City, the Union Square BID will increase from 10 blocks to 27 blocks and allow all property owners within the BID to collectively benefit from cost effective services such as: sidewalk sweeping, steam cleaning, graffiti removal, landscaping, and increased SFPD patrols.

For more information on the Union Square BID, please click here.
 

SAN FRANCISCO BUSINESS TIMES' STRUCTURES BREAKFAST

Your BOMA San Francisco Advocacy Team and member leadership attended the San Francisco Business Times' 2009 Structures breakfast recently. The guest speakers included:

* Mayor Gavin Newsom
* Michael Covarrubias, Chairman & CEO, TMG Partners
* Oz Erickson, Chairman, The Emerald Fund
* Monique Moyer, Executive Director, Port of San Francisco

With the tumultuous downturn in the commercial and residential real estate markets, the event, which focused on the future of San Francisco from a development standpoint, was informative and timely.

For the details, please click here to view our blog post on the breakfast.


MID-MARKET BALLOT MEASURE: SUPPORT THE ARTS AND RENEW MARKET STREET

As you know, the corridor on Market between 5th and 7th streets leaves much to be desired. Thankfully, an ordinance has been introduced to revitalize this section of Market Street with the intention of creating a vibrant and thriving arts district. The Mid-Market ARTS ordinance will restore--at no cost to the taxpayer--the artistic and cultural haven that once existed in the great theater district of San Francisco. At the same time, the revenue generated will provide a much-needed, stable financing source for arts education programs for children living in the Tenderloin. Please click here for more information and to read the ordinance.

The initiative has qualified to be November 2009 ballot. For more information, or to become a supporter, please contact Daniel Palay at (415) 643-8507.


SAN FRANCISCO DEPARTMENT OF BUILDING INSPECTION PRESENTATION: WHAT IS A HISTORIC BUILDING?

Your BOMA Advocacy Team attended a presentation recently by the San Francisco Department of Building Inspection (DBI) on the designation of historic buildings. The program featured a panel that included:

* Alice Carey, Carey & Co., Inc.
* Tim Frye, Historic Preservation Technical Specialist, San Francisco Planning Commission
* Laurence Kornfield, Deputy Director, Department of Building Inspection

The presentation was informative and addressed historic designation issues germane to the commercial real estate industry. Please click here to read our blog post for the details (you can download the entire presentation, here).


UPDATE: EXISTING COMMERCIAL BUILDINGS EFFICIENCY TASK FORCE

Energy efficiency is cost-effective, but existing buildings are complex.  San Francisco mush balance access to capital, limited public understanding, diverse lease contracts, and city resources.  As such, please take a moment to review some of the Existing Commercial Buildings Efficiency Task Force’s anticipated recommendations:

* Disclose Energy Use: Require sharing summary energy data with the City in real estate transactions, and along with certain other city permitting processes.
* Energy Audits: Require periodic energy audits by qualified facility engineers or appropriate service providers.  This recommendation will ensure that building owners—particularly Class B and C—know the specific cost-effective opportunities in their facilities, and are aware of other mandates (e.g., lighting performance, water, recycling).
* Green Tenant Toolkit: Provide example green lease language, and engage the 10 largest tenants in the city to demand a standard disclosure of green features. 
* Enable Submetering: Require landlords to allow tenants to submeter energy use at their own cost.
* Education, Training, Mentorship, and Marketing are key to enhance workforce capacity and engagement to improve energy efficiency.
* Financial Optimization:  Proposed public/private project to develop real-time tool that finds all incentives, rebates, and financing.  This recommendation will make sure that building owners and managers of existing buildings will know about all available rebates via a web-based information system.
* Public Sector – Lead by Example: Benchmark and disclose energy performance for city facilities.
* SF Clean Energy Fund: Task force will endorse SFCEF.  With SFCEF, and with other actions, the city is educating, setting goals, and providing access to fund, which enable cost-effective and sensible improvements leading to energy use reductions.


PUBLIC HEARING ON NEWLY PROPOSED FIRE DEPARTMENT ADMINISTRATIVE BULLETINS - SEPTEMBER 25

The San Francisco Fire Department will conduct a hearing on two proposed Fire Department Administrative Bulletins on Friday, September 25, 2009, 10:00 a.m., in the Fire Commission Room, Fire Department Headquarters, 698 Second Street at Townsend in San Francisco.

The purpose of the hearing is for the Department to receive public comment on the following two newly proposed Administrative Bulletins:

1. 2.11 Submittal Guidelines for Emergency Evacuation Signs
2. 5.09 Lockbox Program- Guideline for New & Replacement Lockboxes

Please click here for more information.


TOOLS YOU CAN USE

H1N1 SWINE FLU - LETTER TO BUSINESSES & ORGANIZATIONS FROM THE SAN FRANCISCO DEPT. OF PUBLIC HEALTH

The San Francisco Department of Public Health has just issued two very informative documents to assist organizations to be better prepared for the upcoming flu season. The first is a concise two-page overview of the current status on the H1N1 virus. The second document is a more in-depth PowerPoint that may be helpful for any presentations you may have coming up. Please feel free to re-distribute as you deem appropriate.

Please click here for the letter and here for the PowerPoint presentation.


UPDATE: MANDATORY COMPOSTING AND RECYCLING ORDINANCE

As we have posted on the blog previously, San Francisco will have a city-wide mandatory recycling and composting requirement effective October 21, 2009. There are five mandatory areas that property managers need to address in the ordinance:

* Sign-up and pay for adequate recycling, composting and trash service.
* Have the appropriate number, color and size containers placed close together in convenient locations at your site.
* Educate and train tenants and employees on the program.
* Work with the hired janitorial staff or contractors to create an effective program.
* Make sure your building is participating in separating materials.

There could be fines for buildings that do not provide an adequate program (#1-4 above), but there will not be fines for buildings that do not properly separate all materials until at least July 1, 2011.

Please click here to review the ordinance and here for FAQs.

Please contact the San Francisco Department of the Environment at (415) 355-3768 if you need assistance in starting a recycling and composting program to comply with the new law. Your business may also qualify for the Department's Mini-Grant program that can help offset the costs of meeting the City's new refuse requirements. Please click here for more information and to apply.


THE BOMA 2009 ONLINE EXPERIENCE EXCHANGE REPORT IS AVAILABLE NOW!

Getting the metrics you need just got easier. The brilliant, new EER takes the industry’s best benchmarking tool to a whole new level…combining the industry’s most comprehensive data on income and operating expenses from U.S. and Canadian markets with sophisticated Web–based technology. During tough economic cycles, those who survive and thrive are the ones who understand the power of information. The new Experience Exchange Report® makes it easy to get the market information you need to drive innovation, implement progressive strategies and streamline your business processes to fortify your asset value. Its so illuminating, no other product can hold a candle to it. Purchase the new EER now.


ADDITIONAL RISKS LANDLORDS SHOULD CONSIDER WHEN TAKING LETTERS OF CREDIT FROM COMMERCIAL LEASE TENANTS

In the last decade, commercial landlords have favored obtaining from tenants standby letters of credit over security deposits because standby letters of credit provided added security in the event of a tenant's bankruptcy. The financial instability of banks that issue standby letters of credit and the erosion of the benefits of standby letters of credit in recent bankruptcy court decisions have reduced some of the benefits of standby letters of credit in the commercial lease context.

This Advisory describes the benefits and risks of standby letters of credit and the prophylactic measures that a landlord can take when obtaining a standby letter of credit as security for a tenant's obligations under a commercial lease.

Please click here to read the entire Advisory. Thank you to Pillsbury Winthrop Shaw Pittman LLP for allowing us to post this information on our advocacy blog.
 

DEPARTMENT OF BUILDING INSPECTION: 10 MOST COMMON ERRORS DURING PLAN CHECK

You'll be one step closer to finishing your project if you avoid these common pitfalls during the San Francisco Department of Building Inspection plan review:

* Incomplete information regarding existing conditions. Such information should include current legal use and occupancy of all related building areas, building construction type, property line setbacks, and abutting property conditions.
* Confusion due to too much information overlaid. Separate plans should be provided for existing conditions, partial demolition, and proposed work. On more complicated projects, provide separate architectural and structural drawings.
* Plans are not coordinated among architectural, structural, mechanical, electrical, and other designs. Also, lack of coordination between views such as plans and elevations.
* Inadequate dimensioning of plans.
* Fire-resistant assemblies are not detailed and do not conform to approved designs.
* Incorrect story count. Detailed substantiation must be provided, including spot elevations of floors and adjacent grade around perimeter and profiles, to allow plan reviewers to confirm story or basement determination.
* Lack of clarity and consistency of plans, including symbols and designations, such as existing vs. new walls.
* Sloppy, illegible, incorrect and incomplete permit application forms and submittal documents such as plans.
* Lack of adequate accessibility documentation and accessibility checklist.
* Failure to provide adequate cover-sheet information, including correct codes being used for design, contact information, design professional's signature, index of drawings, etc.


SFPUC’S FREE WATER-WISE EVALUATION

At a recent 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—will send a water conservation technician visit to your building to review your water usage and give you a report outlining how your property can save water and money.  With a 13% water rate increase coming in July, it’s important to take advantage of this program right away.  Please be aware that there is a 2-3 week lead time to schedule an appointment.  Call the SFPUC Water Conservation Section today at (415) 551-4730.


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.


SAVE THE DATE!  EMERGENCY PREPAREDNESS SEMINAR – OCTOBER 1, 2009

BOMA San Francisco’s Emergency Preparedness Committee will hold an Emergency Preparedness Seminar on October 1st (location and time to be determined) on our recent Ferry Building earthquake preparedness drill that was held on August 19th.   The seminar will review the best practices and lessons learned from the drill for the BOMA San Francisco membership.


SAVE THE DATE!  CODES AND REGULATIONS SEMINAR – OCTOBER 29, 2009

Please mark your calendar for October 29th (location and time to be determined) for BOMA San Francisco’s Codes and Regulations Annual Seminar.   It will be review of all the ‘green’ codes that impact the commercial real estate industry.

 

“The problem with socialism is that eventually you run out of other people’s money.”

—Margaret Thatcher

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THIS ISSUE OF THE BOMA SAN FRANCISCO ADVOCATE WAS GENEROUSLY SPONSORED BY:

WAXIE SANITARY SUPPLY

It is the mission of WAXIE Sanitary Supply to be the industry leader in the distribution of quality sanitary and related supplies and equipment to the commercial, industrial, contractor and institutional markets in the areas we serve. We will strive to provide quality and innovative products, value-added services, and systems that contribute toward a better community through effective communication, education, and training for our valued customers and employees.

For more information, please click here.
 

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