December 21, 2009 Volume 15, Number 12
This Issue of the BOMA San Francisco Advocate Is Brought To You By:
Shorenstein Realty Services LP
CALL TO ACTION! Tell San Francisco Supervisors to Stop the Waste and Inefficiency!
San Francisco has turned from the best managed city in America into, according to the SF Weekly, The Worst Run Big City in the U.S. Mayor Gavin Newsom needs everyone's support when he tries to reform entrenched city service rules, Board of Supervisor power grabs, and union MOUs that have brought our city to the brink of disaster. More specifically:
- The members of the San Francisco Board of Supervisors vote to spend money they don't have;
- Pay and benefit for city employees are excessive and unsupportable by the private sector;
- City government employees and city-supported non-profits are not accountable for results, only good intentions;
- San Francisco is hamstrung by excessively restrictive rules limiting the contracting out of any city services to the private sector, even when it would be done using union labor at a lower cost to the taxpayer.
The city government's long-term egregious waste of taxpayer money needs to end. We ask that you email the members of the San Francisco Board of Supervisors by clicking here to inform them of how you feel about the City's inefficiencies.
BOMA California Government Affairs Representative Matthew Hargrove Talks with BOMA San Francisco Codes and Regulations Committee Members
Matthew Hargrove, Sr. Vice President of Government Affairs for BOMA California (which is federated with the California Business Properties Association) updated the BOMA San Francisco Codes and Regulations Committee members at the SPUR Urban Center on December 9, 2009 on his efforts to protect the commercial real estate industry from egregious public policy at the state level.
Mr. Hargrove spoke to the BOMA San Francisco Government and Public Affairs Committee on December 2, 2009 where he covered the same topics; click here to view the highlights from both meetings on our blog. Also please click here for comments by the California Business Properties Association, California Building Industry Association, BOMA California and the Commercial Real Estate Development Association on the proposed Green Building Standards for Commercial Occupancies (Part 11, Title 24, California Code of Regulations) as proposed by The California Building Standards Commission.
BOMA California Names 2010 Leadership
Leaders from the eight metropolitan Building Owners and Managers Associations have chosen the following individuals to helm their statewide organization, BOMA California, for 2010:
PRESIDENT: Cindi Langendoen, Senior Director of Strategic Accounts, CB Richard Ellis (BOMA Greater Los Angeles)
VICE PRESIDENT: Ray Magnussen, Principal, Paragon Services (BOMA San Diego)
SECRETARY: Tod McKelvy, Executive Director, Berding & Weil, (BOMA Oakland/East Bay)
TREASURER: Sandra Boyle, Executive Vice President of Development, Glenborough (BOMA San Francisco)
BOMA California is the statewide professional association representing each of California's eight regional Building Owners and Managers Associations (Greater Los Angeles, Inland Empire, Orange County, Sacramento, Oakland/East Bay, San Diego, San Francisco, and Silicon Valley), in statewide legislative and regulatory matters.
Members of BOMA California represent all facets of the commercial real estate industry, including property managers, facility managers, owners, asset managers, engineers, and leasing brokers. BOMA California is dedicated to professional and ethical property management and provides members with legislative advocacy, industry information, and professional education opportunities.
Newly elected BOMA California President Cindi Langendoen is a National Strategic Accounts Senior Director responsible for the CBRE Investors – CalSTRS portfolio in excess of 12 million square feet of Class A office and industrial product. She provides services through single-point accountability, focusing on the client’s long-term goals, while assisting with operations, transitions, management, leasing, investment sales, and financial reporting on real estate assets worth $3 billion. Ms. Langendoen has more than 20 years of commercial real estate experience and has been on the Board of BOMA California since 2002.
BOMA California engages directly in the legislative, regulatory, and political processes, to protect the interests of the commercial real estate industry. In 2009 our organization tracked more than 500 bills with a potential impact on the commercial real estate industry, and worked on broad range of issues from tax code changes and Workers’ Compensation to energy policy and green building regulations.
For more information about BOMA California, please click here.
BOMA San Francisco Welcomes San Francisco Police Chief George Gascón
BOMA San Francisco was honored to welcome George Gascón, San Francisco's new Police Chief, to our November luncheon at the City Club to hear his thoughts on the future of San Francisco's Police Department.
Please click here for our blog post on Chief George Gascón's address to the BOMA membership.
San Francisco Director of Economic and Workforce Development - Michael Cohen - Receives Public Official of the Year Award from BOMA
At BOMA San Francisco's November Membership Luncheon, the association was proud to not only welcome George Gascón, San Francisco's new Police Chief, but to also recognize Michael Cohen as our 2009 Public Official of the Year. Mr. Cohen serves as the Director of the City of San Francisco Office of Economic and Workforce Development (OEWD) and has extensive expertise in economic development and working with communities to promote investment, innovation and business growth in the City.
In accepting his award, Mr. Cohen offered up a few comments on San Francisco's current economic situation and what he saw for the City’s future. Please click here to read our blog post for the details.
Supervisor Michela Alioto-Pier Speaks to San Francisco Chamber of Commerce Members
Your BOMA Advocacy Team attended the San Francisco Chamber of Commerce's Supes for Lunch meeting recently with Supervisor Michela Alioto-Pier. Supervisor Alioto-Pier represents District 2, which includes the Presidio, Cow Hollow, Marina, Pacific Heights as well as part of the Richmond neighborhood. She also serves as a member of the San Francisco Disaster Council and is the Board Representative on the State Legislative Committee.
Please click here for our blog post on the meeting.
BOMA International Winter Business Meeting and National Issues Conference - February 1-4, 2010
Please consider attending the BOMA International Winter Business Meeting and National Issues Conference with your BOMA San Francisco Advocacy Team and fellow BOMA San Francisco members on February 1-4, 2010 in Washington D.C. This annual event provides an opportunity to share ideas, learn from your peers, be a part of shaping the future of BOMA and the commercial real estate industry and to take our message to legislators and regulators in our nation’s capitol. Join us for inspiring general sessions, exciting networking receptions and important business meetings. This is your chance to speak out and make a difference!
Please find more information about the Winter Business Meeting and National Issues Conference, here, and a detailed schedule of events, here.
If you are planning on attending, please contact Ken Cleaveland, BOMA San Francisco's Director of Government and Public Affairs at firstname.lastname@example.org. We'll see you there!
San Francisco Existing Commercial Buildings Efficiency Task Force Recommendations
In February 2009, Mayor Gavin Newsom created the Existing Buildings Efficiency Initiative Task Force (Task Force) to recommend policies and actions to improve the energy efficiency of existing commercial buildings in San Francisco. The Task Force continues the work of the 2007 Green Buildings Task Force that was convened by the Mayor to develop expanded green building standards for major new private construction projects in San Francisco.
Please click here to access the Task Force's recommendations for the existing commercial building stock in the City and County of San Francisco, released last week. The city's goal is to reduce total energy consumption in existing buildings by 50% by 2030, or an average of 2.5% reduction per year.
We welcome your feedback on these recommendations. Please email Ken Cleaveland, Director of Government and Public Relations for BOMA San Francisco, with your comments. Legislation will follow that will implement many of these recommendations; we'll post the measure on the blog when it is introduced.
Please click here to view our blog post on the Task Force's recommendations.
California DIR Elevator Unit Meetings - Fee Increase Discussion & Code Clarification
The California Department of Industrial Relations Division of Occupational Safety and Health, Elevator Unit, will be holding two meetings to discuss potential fee increases and code clarifications:
Stakeholders Meeting - Fee Increase Discussion
Where: Elihu M. Harris 1515 Clay Street Suite # 113, Oakland, CA. 94612 (In the Auditorium)
When: December 29, 2009, 11:00am
Discussion Meeting - Code Clarification, Scheduling Issues and Open Forum
Where: Elihu M. Harris 1515 Clay Street Suite # 113, Oakland, CA. 94612 (In the Auditorium)
When: December 29, 2009, 1:00pm-3:00pm
This will be a follow up to the September 29th meeting. the Elevator Unit would like to further provide clarification of the Code, answer your questions, resolve scheduling issues and have general open forum. Your attendance and participation are welcomed.
Also, please visit the Elevator Unit's re-launched website which offers a great deal more information and assistance here.
Apply for California's FIRST Citizens Redistricting Commission
Every 10 years, after the federal census, California and every state in the country – must redraw the boundaries of its Senate, Assembly and State Board of Equalization districts to reflect the new population data. How these boundaries are drawn affects how people are represented. Previously, these boundaries were drawn by lawmakers, but when voters passed Proposition 11 (the Voters FIRST Act) in the November 2008 general election, that responsibility transferred to the people in the form of a new Citizens Redistricting Commission.
Now it's YOUR chance to draw the lines! As such, BOMA San Francisco and BOMA California members should strongly consider applying for the Commission between December 15, 2009 through February 12, 2010. For detailed information on the Commission including: who can serve, how many commission members there will be, the selection process, the length of service on the Commission, etc., click here!
San Francisco Board of Supervisors - Proposed June 8, 2010 Charter Amendments
At the December 15, 2009 board meeting, the San Francisco Board of Supervisors had their last opportunity to introduce amendments to the City Charter for the San Francisco electorate's consideration on the June 8, 2010 ballot. Your BOMA San Francisco Advocacy Team will be monitoring the proposals as they traverse through City Hall and detail the association's position and analysis on each proposed amendment in short order.
Please click here to view the proposed Charter Amendments on our blog!
San Francisco Government Economic Barometer for October 2009
The Office of the Controller has released the local Government Economic Barometer for October 2009. You can access the full report, with analysis, here,
RED ALERT – Split Roll Property Tax Initiatives Filed
The hammer has finally dropped and two initiatives have been filed for Title and Summary with the Attorney General’s Office to change Proposition 13 and end tax protections for commercial real estate by enacting a Split Roll Property Tax. It is reported from multiple sources that the California Teachers Association (CTA) is the source for both of these measures.
These two initiatives join one other measure introduced last month, and come after successfully defending Proposition 13 in several different venues this past year, including legislative measures, in the state budget, and at the Tax Commission.
As we have discussed there are several different approaches that can be taken to enact a split roll. One of CTA’s measures increases all commercial taxes by .55%. The other requires continuous reassessment and bases taxation on current value.
Both of CTA’s measures have political “sweeteners” thrown in like doubling the homeowners property tax exemption, doubling the renters tax exemption, and increasing the types of agricultural properties that are not subject to the commercial assessment. One of the measures lists a whole bunch of benefits to education, meant not only as a way to fully control the monies raised from this tax increase, but to also sway voters who naturally want to support their public schools.
Although this is the beginning of the official process, we are already taking actions to prepare for the battle, such as meeting with those responsible for writing the ballot analysis, analyzing the economics of the measures, formulating an opposition campaign, and beginning our fundraising efforts to defeat these measures.
In addition to these three measures, we are also expecting to see split roll measures from at least one public employee union and from the SF Assessor Phil Ting led group “Close the Loophole,” which was registered this year specifically to pursue a proposition.
These measures seek ways to allow California State Government to continue spending your taxpayer dollars without addressing the issues of realistically setting wages and benefits for state employees and dealing with overspending and regulatory inefficiency, such as not allowing workers to put in 40 hours a week in four days, if they desired, instead of requiring overtime for any hours worked over 8 in a single day.
If you have any doubt about the negative impacts of a split roll, please click here to read the study entitled "The Economic Effects of California Adopting a Split Roll Property Tax."
These propositions are clearly an immediate threat to anyone who owns commercial property in this state. BOMA members will need to step up and be counted if we are to defeat these ill-conceived measures.
Click here for our blog post on this issue with provisions and links to the filed measures.
PG&E One Time Credit and January 2010 Rate Changes
All PG&E customers should have received a bill insert with their July 2009 electric bills that indicated PG&E had over-collected for their generation costs and that there would be a year-end alignment to correct PG&E's discrepancy that would yield a January 2010 rate reduction of around 10%. Recently, PG&E announced that they would be giving customers a credit on their November and December 2009 bills of approximately 4% of the annual electric charges to clear the company's oversight. We've received confirmation from the PG&E Rates Department that the 4% credit is a substitute for the expected January rate reduction. In fact, PG&E is now planning a small 0.7% rate increase for January 2010.
BOMA San Francisco members should consider revising their 2010 budgets to factor in this small rate increase as opposed to a large decrease.
Destination-Based Elevator Control System Requirements
Please find the latest iteration of the destination-based elevator controls administrative bulletin from the San Francisco Department of Building Inspection that will govern future installation of such elevators controls in San Francisco, insuring they are completely accessible to the disabled, here.
If you have any questions about this bulletin, please contact Ken Cleaveland, BOMA San Francisco's Director of Government and Public Affairs at email@example.com.
San Francisco’s Building Occupancy Resumption Program (BORP)
The Building Occupancy Resumption Program (BORP) is a program developed by the City and County of San Francisco, Department of Building Inspection, with the cooperation of BOMA San Francisco, the Structural Engineers Association of Northern California (SEAONC) and the American Institute of Architects (AIA). The program allows San Francisco building owners to pre-certify private post-earthquake inspection of their buildings by qualified engineers and specialty contractors upon DBI acceptance of a written inspection program.
BORP consists of three basic phases: The first is the assessment of the building and preparation of a BORP program, including a building-specific post-earthquake inspection plan; the second phase includes annual update and renewal activities, the maintenance portion of the work; the third phase is the post-disaster implementation of the program.
BOMA San Francisco’s goal is to have all buildings within the membership registered for this unique program. Increasing the resiliency of your building to an emergency situation, such as an earthquake, is of the utmost importance to any building owner and manager to ensure business continuity. In a city-wide disaster, there may be a lengthy delay in getting your building back in business as there won’t be enough city engineers to evaluate the scores of buildings that need to be inspected for safe occupation. BORP will ensure that your building will be inspected quickly via private inspection, and that your tenants can resume operations as soon as it is safely possible.
- 104 buildings city-wide are approved participants of the BORP program.
- 93 of these buildings are downtown high-rises.
- 57 BOMA San Francisco member buildings are approved participants of the BORP program
- ~21.2% of all BOMA San Francisco member buildings are approved for BORP.
- ~64.5% of the 93 downtown high-rise buildings in the BORP program are BOMA San Francisco member buildings.
- ~57.7% of the 104 city-wide buildings in the BORP program are BOMA San Francisco member buildings.
Please click here to read more about the BORP program or contact Mr. David Leung at the Department of Building Inspection, (415) 558-6033 or firstname.lastname@example.org.
Attention BOMA San Francisco Members - Energy Star Information Disclosure!
Many of you know that the State of California is the first in the nation with a law, AB 1103, mandating disclosure of Energy Star information upon any major financial transaction of a non-residential property. The disclosure requirement had been scheduled to go into effect on Jan. 1, 2010. However, for a variety of reasons, including the inability of utility companies to overcome questions related to privacy if they released a building’s energy usage information, and our concern that many BOMA members would not be able to fully comply by the original date, our state advocates (CA Business Properties Assn.) sponsored a bill this year to delay the implementation of AB 1103.
That bill, AB 531 (Saldana) has been signed into law by Governor Schwarzenegger, lifting the hard and fast mandate to benchmark buildings by January 1. Our advocates are now working through the regulatory rule writing process and believe that the regs will kick in, at the soonest, for commercial buildings 50K s.f. and larger on 01/01/2011, but that has not been finalized. Smaller buildings will follow, and we are asking that buildings that are not within the target constituency of Energy Star (such as industrial buildings) be exempted.
A major issue has arisen in the regulatory process, pertaining to the state agency staff attempting to unnecessarily expand the scope of the law via regulations. CA Energy Commission staff has written regulations that would require you use both Energy Star, and a yet to be written California-specific benchmarking program and that you would be compelled to share all energy data with the CEC by authorizing access to Portfolio Manager. Although we support this law as written, using Energy Star and disclosing the data during the due diligence process to potential buyers or full building tenants, BOMA Cal is strenuously resisting this unauthorized expansion and data collection grab by the CEC. Even the bill’s author agrees with our position.
Click here for a link to a Commercial Real Estate Journal story that explains the issue very well. Please let Ken Cleaveland, BOMA San Francisco's Director of Government and Public Affairs, know if you have any questions, comments, or need more context, or would like to read the letter referenced in the article. He can be reached at email@example.com.
If you would like to personally discuss this with our state advocate, please contact Mr. Matthew Hargrove, Sr. VP., Governmental Affairs, CBPA, 916-443-4676 or via email at firstname.lastname@example.org.
Compliance Manual for 2008 CA Building Energy Efficiency Standards
The Nonresidential Compliance Manual for the for the 2008 Building Energy Efficiency Standards is now available on the CEC website. The new Standards will be in effect as of January 1, 2010.
Please notify anyone in your companies/networks responsible for management of energy, construction, or property management issues. We hope to make sure this is distributed widely as compliance is important for your bottom line, but also to help our industry meet AB 32 goals.
Our industry helped shape and ultimately supported the adoption of these standards. National groups are using this as model for promulgated national guidelines and other states’ codes.
USGBC LEED EBOM Credit For TMASF Members
Nearly 50% of all TMASF (Transportation Management Association of San Francisco) member buildings have applied or are in the pipeline trying to achieve some form of LEED certification through the US Green Building Council (USGBC)/Green Building Certification Institute (GBCI). The requirements for LEED certification vary according to a myriad of factors including building profile, level of certification sought, and, a mix of compliance factors used during the application process.
The USGBC awards points to applicants for participating in approved trip reduction programs depending upon survey findings that define the percentages of commuters who drive alone to work. The TMASF has worked diligently with USGBC, GBCI, and others to obtain certain points for their members. Please click here for more information.
TOOLS YOU CAN USE
BOMA 360 Performance Program™
BOMA International is pleased to announce the development of the BOMA 360 Performance Program, a groundbreaking new program designed to validate and recognize commercial properties that demonstrate best practices in all major areas of building operations and management. A BOMA 360 Performance Building designates that a property is being managed to the highest standards of excellence.
The BOMA 360 Performance Program is an online self-assessment that evaluates six major areas of building operations and management and benchmarks a building’s performance against industry standards. Applicants must achieve the required number of points to be recognized as a BOMA 360 Performance Building. Only occupied commercial office buildings and industrial buildings are eligible for the BOMA 360 Performance Program designation. Additionally, there are four prerequisites that must be met to apply for the designation. Applications for the BOMA 360 Performance Program may be submitted at any time during the year, with designations conferred quarterly. There is an application fee that is tiered based on the property’s total square footage. The designation requires an annual renewal. A nine-member, independent BOMA 360 Performance Program Council has been appointed to confer the designations, provide administrative oversight and to provide continuous review and updates to keep the program current with industry best practices and standards.
Please click here for more information, including the BOMA 360 application, instructions, frequently asked questions, and much more!
If you have any questions about the BOMA 360 Performance Program, please send an e-mail to BOMA360@boma.org.
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. Here are five ways to make the EER work for you:
- Identify and plan for operating improvements, including capital expenditures and planning.
- Use the data to help rebid your building service contracts, by identifying where your contracts are over or under market averages.
- Compare this year’s income and expenses with last year’s for an initial read on overall performance.
- Get a quick picture on market NOI (net operating income)—correlated to occupancy information.
- Roll the data up, and look at the major categories in the aggregate, or drill down and see what comprises each major income and expense category for more fine-tuned planning.
Click here to purchase the new EER now. For questions, please contact email@example.com.
San Francisco Police Department Online Incident Tracking
Please note that the San Francisco Police Department, in conjunction with the Omega Group, has introduced an interactive website called CrimeMapping.com. This site enables citizens of San Francisco to query and to map calls for police services to incidents near an address. CrimeMapping.com also includes a Crime Alerts service that allows users to receive reports regarding incidents of crime near the subscriber’s home or business via e-mail. You can access this new site by clicking here.
CrimeMapping.com is the third of three online sites that are available to the public. Members of the public are invited also to visit CrimeReports.com and EveryBlock.com. All three sites allow the public to access San Francisco Police Department Computer Aided Dispatch (CAD) crime information for a particular address based on a radius the user selects. Each site has its own manner of presentation, but supplies essentially the same information.
Please click here for BOMA San Francisco's Emergency Preparedness Committee website were we continually update the BOMA membership on safety, security, emergency preparedness and incident prevention practices in the commercial property field. BOMA San Francisco recently hosted the San Francisco's new Police Chief, Chief Gascón, at our November 19, 2009 luncheon. Please click here for our blog post on his visit!
Voluntary Certified Access Specialist Program (CASp)
In 2003, California Senate Bill 262 was signed into law and placed the following requirements on the Division of the State Architect (DSA):
the State Architect shall establish and publicize a program for voluntary certification by the state of any person who meets the specified criteria as a certified access specialist [click here for the Certified Access Specialist Program (CASp) Candidate Handbook and here for the CASp regulations].
Furthermore, the State Architect is to make available to the public a list of certified access specialists who meet the specified criteria.
Please click here to read our blog post on the CASp for more information.
Flex Your Power - Best Practices Guide for Commercial Office Buildings
California businesses collectively spend more than $15 billion a year on heating, cooling, lighting and other energy uses. Much of this cost is unnecessary. While high and variable energy costs will continue to impact their bottom line, companies of all types and sizes can take action to reduce these impacts.
Organizations that implement energy-efficient measures outperform their competitors by as much as 10%. To remain profitable and gain a competitive edge, companies need to do more than just turn off unnecessary lights and adjust thermostats. They need to make energy efficiency an essential part of their business plan. By doing so, businesses lower their utility bills and help California ensure a reliable energy supply.
To this end, please take a moment to visit the California's Flex Your Power website for the Commercial sector, and the Best Practices Guide for Commercial Office Buildings (2005) on our blog, here (or come by the BOMA San Francisco office for a tangible copy of the guide), for recommendations on how you can sustain the natural environment while saving some "green" at the same time!
BOMA San Francisco's Environment Committee, one of the largest and most active committees within the BOMA membership, is intimately involved in promulgating environmentally sustainable business practices in the commercial real estate industry. In fact, BOMA has long been a leader in promoting sustainable practices in commercial office buildings - click here for the details!
Please click here to view BOMA San Francisco’s calendar of events—BOMA committee meetings, education events, seminars, social events, and workshops—for 2009.
"Isn't it nice that people who prefer Los Angeles to San Francico live there?"
- Herb Caen
THIS ISSUE OF THE BOMA SAN FRANCISCO ADVOCATE IS GENEROUSLY SPONSORED BY:
Shorenstein Realty Services LP
San Francisco-based Shorenstein Properties LLC is one of the oldest and most successful private real estate investment companies active throughout the United States in the acquisition, development, ownership and management of office and mixed-use properties. Since its beginning in 1924, the company has evolved from a regional real estate operating company to an active national investor and manager of commingled institutional capital. Since 1992, Shorenstein has sponsored eight closed-end real estate investment funds. Shorenstein's substantial co-investment, integrated investment and operating strategy and strong performance have positioned the company as an experienced leader in the value-added arena.
Please click here to visit the Shorenstein Properties LLC website, and here for information about The Historic Russ Building at 235 Montgomery Street.