Bulletin MARCH/APRIL 2003 www.bomasf.org

BOMA advances the commercial real estate industry through advocacy, professional development, and information exchange Why Gavin Newsom Should Be San Francisco’s Next Mayor By Todd Robinette, Equity Office Properties Trust

an Francisco is experiencing one of board thus allowing MUNI to be run in a Save the dates its worse economic times in many much more business-like manner, free 2003 BOMA Luncheons Sdecades. 20% of the office space in from the day to day political pressures it the city is vacant, business activity has had endured before. Gavin supported March 27 Real Estate Panel slowed to a crawl, and many firms are pioneering measures to restore the city’s April 16 Gavin Newsom being forced to lay off employees, thus parks, and to reform its assistance May 22 Oz Erickson, creating an even greater need for locally- programs for the homeless. It was his run social services, already pressed by courage to push for the passage of the Emerald Fund Federal and state budget cuts. The city’s Care Not Cash initiative last fall that September 25 TBD budget faces a $350 million deficit at the really showed October 16 Annual Meeting moment. We are a city in crisis, to be the public that November 19 TBD blunt. Newsom had what it takes to To top this off, the city’s government is be our next overstaffed, and over-paid for a city of our Mayor. Newsom On the Inside size, yet continues to berate the business wants to get the community, while not making any attempt job done, to address the serious quality of life issues whether it is that are plaguing our town. ENERGY STAR UPDATE deciding how to Then along comes a young man named use city money ••• 4 ••• Gavin Newsom. Gavin Newsom was more efficiently appointed to the Board of Supervisors by for homeless CONVENTION KEYNOTE Mayor Willie Brown in 1996. As a local services or revising graffiti vandalism SPEAKER ANNOUCED businessman, Gavin quickly established laws to make the penalties harsher for those who destroy our environment with ••• 7 ••• himself as a politician who wanted to get things done, no small accomplishment in paint and etching acid. a city where process so often prevails over CALENDAR Gavin Newsom has also showed his solution. support for our industry by opposing the •••8 ••• Gavin has consistently voted conserva- recent attempt by other Board of tively on matters involving the city’s Supervisor members to double the city's ADVOCACY UPDATE expenditures. He has called for strict property transfer taxes, and he supported •••10 ••• financial accountability of all city depart- a ballot measure to allow more conver- ments and has insisted they adopt a sions of rental units to condos to increase MEMBERS ON THE MOVE customer service plan to facilitate a posi- home ownership in San Francisco (only 34% of residents are homeowners; the •••15 ••• tive interaction with the public. Gavin Newsom supported city charter reform national average is 68%.) This is a man which included placing the city’s trans- who understands the economics of the portation system under an independent free enterprise system, and how the best Article cont. on pg.14 LEADERSHIP

EXECUTIVE COMMITTEE Todd Robinette, RPA, CPM, President Equity Office Properties Trust

Steven Colvin, RPA, SMA, CPM, President Elect Boston Properties, LP

Mary Wiese, RPA, Treasurer CAC Real Estate Management Co. Inc. We pride ourselves on supplying a competitively priced, personal service that is Kennard Perry, Immediate Past President tailor made to our clients’ needs. The Swig Company Year after year, The Wackenhut Corporation delivers unrivaled business services to a growing list of commercial, industrial and government organizations. Marc Intermaggio, CAE, Exec. VP & Secretary Fortune Magazine's list of "America's Most Admired Companies" in 2001, and Forbes Magazine's most recent "Platinum 400" list of "America's Best BOMA San Francisco Big Companies". These distinctions are testament to Wackenhut's reputation for excellence and its continuing pursuit of quality and professionalism. DIRECTORS The growth of its client base and high customer retention, in both public and private sectors, is the result of the unmatched integrity, professionalism and Mara Brazer quality associated with Wackenhut's service offerings. Brazer Communications Physical Security: Custom Security Services, Uniformed security officers (on permanent or temporary assignments), High level elite Security Services, VIP Tom Cashin Protection. Shorenstein Realty Services, L.P. Please contact us for a free consultation on how we can analyze, streamline and administer cost-efficient, effective security services. Wackenhut will allow you the freedom to focus on your core business objectives while leaving Security Services Manuel Fishman in the hands of a world-class company. Bartko, Zankel, Tarrant & Miller (415) 503-0981 • Voicemail (925) 998-8854 Paul Grafft, RPA ASK FOR SHARON SCHUYLER Shorenstein Realty Services, LP THE WACKENHUT CORPORATION 1145 MARKET STREET # 403, SAN FRANCISCO, CA 94013 Mary Huss Operating out of 80 countries throughout the world. Wackenhut is the U.S.-based division of Group 4 Falck, the World's second largest provider of security and San Francisco Business Times security-related services. Katherine Mattes, CPM, CCIM Flynn Properties, Inc.

Scott Stephens, RPA Wilson Meany Sullivan LLC BOMA San Francisco Salutes Fred White, RPA Cushman & Wakefield

Lisa Vogel RREEF/Citicorp Center BOMA STAFF

Marc Intermaggio, CAE Executive Vice President & Secretary

Ken Cleaveland, CAE Director of Government & Public Affairs

Tory Brubaker Member Services Director

LaMata Lewis Director of Accounting Cushman and Wakefields’ support of Gil Martinez Education Program Administrator BOMA San Francisco as a 2003 Silver Corporate Sponsor demonstrates its belief in the value of Mary Anne Bogue Executive Assistant/Office Manager BOMA’s advocacy, professional development and information services for Francine Anderson Administrative Assistant commercial real estate professionals.

2 MARCH/APRIL 2003 www.bomasf.org BOMA SF Job Bank BOMA’s FREE RESOURCE for employers 2003 & job hunters Management, operations, sales, Corporate Sponsors marketing & supplier positions accepted Thank You to our Corporate Sponsors for their commitment to our Asssociation. www.bomasf.org PLATINUM Able Services GOLD ABM Family of Services Golden Gate Disposal & Recycling Company OneSource San Francisco Electrical Contractors Association SILVER Berding & Weil LLP Boston Properties Cushman & Wakefield Equity Office Properties Trust Metropolitan Electrical Construction/Data Communication Otis Elevator Company Pinkerton/Burns-Securitas Companies Shorenstein Realty Services ThyssenKrupp Elevator BRONZE Allied Security August Supply, Inc. BCCI Construction Company Farella Braun + Martel LLP Marble West The BOMA Bulletin McMillan Security Systems is published bi-monthly. NRG Energy Center San Francisco Scheduled 2003 issues are January, Rossi Builders Incorporated March, May, July, September The Lurie Company and November. The Swig Company Contact Tory Brubaker at Unico Properties, Inc. 415/362-2662 x15 for information on Universal Protection Service FRIENDS OF BOMA • Advertising Opportunities • Article Submissions Bartko, Zankel, Tarrant & Miller • Press Releases for CAC Real Estate Management Co., Inc. Members on the Move City Building, Inc. Hanson, Bridgett, Marcus, Vlahos & Rudy, LLP Ads are due by the 10th of the month R.N. Field Construction, Inc. prior to publication. Sentinel Guard Systems Stuart Dean Company 3 Transwestern Commercial Services MARCH/APRIL www.bomasf.org 2003 INFORMATION EXCHANGE

Energy Star – Environmental Leadership Adds Value to Your Bottom Line and Corporate Reputation By Ken Churchill, ACC Environmental Consultants

he EPA has identified a proven strategy to increase FIVE-STAGE APPROACH TO BUILDING UPGRADES the efficiency of buildings. This strategy has been Tsuccessfully demonstrated through research, pilot Stage 1: Lighting Retrofits projects, and working with thousands of organizations. Lighting alone accounts for 20% to 40% of all energy used The strategy has three key elements: in commercial buildings. Proven technologies such as T-8 1) Planning and benchmarking lamps, magnetic ballasts, occupancy sensors, and LED exit signs can reduce the amount of energy consumed by 2) Using an integrated five-stage approach to building lighting by 50%-70%. upgrades Sage 2: Building Tune-up 3) Communicating success A building tune up insures that the equipment you have is The benchmarking tool is the web-based Energy Star maintained properly and is operating at design efficiency. Portfolio Manager. Portfolio Manager allows you to enter Often only simple adjustments to your existing equipment basic information about your building, such as square are needed, but they can have a dramatic effect on your footage, number of occupants, location, and 12 months of energy bills. energy use. With this information, the system is able to benchmark your buildings energy use and compare it to Stage 3: Other Load Reductions other buildings in your climate zone. The system provides These include reducing the energy used by office equip- you with a score ranging from 0 to 100 with 50 being the ment by encouraging tenants to purchase Energy Star average energy use of a building in your climate zone. equipment and instructing them to turn off lights, If your management company has multiple buildings computers, copiers and printers when they are not under management, Portfolio Manager allows you to needed. It also includes upgrades to the building enve- quickly and easily determine which buildings need to be lope, which includes measures to reduce the need for air evaluated for energy waste and savings potential. conditioning and heating. Portfolio Manager also allows you to enter energy data on Stage 4: Fan System Upgrades a monthly basis to track energy use, monitor the success of Many buildings have oversized fans that use excess energy efficiency measures and alert you to spikes in energy. Energy Star recommends measuring how much energy use, so their cause can be immediately evaluated. fan power your facility needs before you upgrade your Portfolio Manager can be used to set future energy perfor- fan system. mance targets and track progress toward these targets. In Stage 5: Heating and Cooling System Upgrades addition, owners can prioritize properties for energy upgrade investments, and identify successful property By implementing Stages 1-4 you will reduce the energy managers. The web address to Portfolio Manager is requirements of your building and need less air condi- www.epa.gov/buildings/label tioning and heating. To really capitalize on the reductions, you need to measure the exact heating and cooling needs If you are interested in a complementary service available of your facility. These measurements will save $10 to $100 to BOMA members of having your energy and building on new equipment. Armed with this information, you can data entered for you, contact Ken Churchill at ACC install the most appropriately sized heating and cooling Environmental Consultants. His phone number is (510)- systems for your building. 638-8400 ext. 123. His e-mail address is [email protected].

(Continued on page 5) 4 MARCH/APRIL 2003 www.bomasf.org INFORMATION EXCHANGE (Continued from page 4)

COMMUNICATING SUCCESS

If you building scores a 75 or above, you can become an Energy Star Certified building and receive a bronze plaque you can display in your building and demonstrate to existing and prospective tenants that your building has lower energy and operating costs.

BOMA Member Buildings Top ENERGY STAR List

Congratulations to the following BOMA members that are ENERGY STAR labeled buildings. Energy management is an important aspect of environmental management which will show healthy dividends for your business. ENERGY STAR has the strategies to make you a leader and set your organization apart. For more information on how your building can achieve this certification, visit www.energystar.gov. April Deadline for "Power Savers" - Department of Environment's Lighting 350 California Retrofit Program Available to 400 California Street Small Building Owners 50 Fremont Street 245 Market Street – PG&E Power Savers needs motivated building owners and 455 Market Street property managers ready to use our incentive money 525 Market Street now. The program helps you save money, reduce elec- tricity use, improve the appearance of offices and 201 Mission Street common areas, while increasing tenant comfort, 505 productivity and occupancy. April 2003 is the last 100 Pine Street month building owners can take advantage of this cost 343 Sansome Street saving program. 475 Sansome Street The survey authorization form is available at www. 100 Spear Street bomasf.org/committees, and click on Energy 49 Stevenson Street Committee to see the list of rebate programs. Complete West the form and fax back to Department of the McKesson Plaza Environment. The program is expected to be fully National Center committed with 4,000 customers by April, so we encourage you to contact Alena Gilchrist, Small Post Montgomery Center Building Coordinator, at 415-355-3708 today.

5 MARCH/APRIL www.bomasf.org 2003 INFORMATION EXCHANGE Why Are My Risers of Concern Now? By: Kirsten Walraven, Seagate Properties, Inc.

lthough we no longer have the telecommunica- If you have existing tenants relocating to another floor tion providers pounding on our doors for within your building, the cross-connects from the orig- Aaccess, it is still important for us to manage our inal floor should be removed, just like all their other infrastructure capacity. Ask yourself personal property. this one question, "Can I lease my vacant suites if I cannot provide tele- What else can be done? The next step is phone service to it?" What is your firm to strategically plan when to remove the doing to ensure that new tenants can old cross-connects that are from tenants get service to their suite? that left your building years ago. Are you renovating a vacant floor? This The copper infrastructure within your would be the time to remove those building has a finite amount of capacity. ancient cross-connects from the tele- Once that capacity has been exhausted, phone closet as well. When managed the building owners will need to pay properly and over a period of time, this for more infrastructure to be installed, expense can certainly be placed in an or so many believe. It is certainly more operating expense account that can be cost effective, especially if the tenant passed on to the tenant base. pays for it, to manage the infrastructure now to ensure you have the capacity available for your The point here is this: Do not ignore your riser infra- new tenants. structure. This is a good time to implement policy that ultimately can help save the owners thousands of The recommended program is to require tenants that dollars. are leaving your building to remove the cross-connects from the telephone closet on the floor from which they reside and the MPOE. That will ensure the new tenant moving into that suite can get phone service. It’s that easy and the owner does not even need to pay for it! This would apply to relocating BOMA San Francisco Salutes existing tenants as well.

Metropolitan Electrical Construction & Data Communications’ support of BOMA San Francisco as a 2003 Silver Corporate Sponsor demonstrates its belief in the value of BOMA’s advocacy, profes- sional development and information services for 6 commercial real estate professionals. MARCH/APRIL 2003 www.bomasf.org CONVENTION NEWS Police Chief Charles Moose to Address BOMA International Convention in June

ontgomery County, MD Police Chief Charles Other major conference speakers include futurist and A. Moose has just been added to the roster Spielberg advisor Peter Schwartz and Newsweek’s Mof keynote speakers for BOMA Fareed Zakaria. Schwartz will address the Opening International’s Annual Conference and The Office Luncheon/BOMI Graduation on Sunday, June 29. Building Show®, June 28-July 1 in San Francisco. Zakaria, described as the most influential foreign policy Moose’s address will be scheduled on Sunday, June 29 advisor of his generation, will address the Keynote at a special session just prior to BOMA’s Opening Luncheon on Monday, June 30. Luncheon at the Moscone Center. Moose’s appearance is sponsored by Allied Security. The conference will also feature over 35 education sessions and The Office Building Show®, the industry’s Moose gained international notoriety for his involve- largest exhibition. The conference will kick off on ment in the investigation of the sniper killings last fall Saturday night, June 28 with a Welcome Party on the that terrorized the Washington, DC, Maryland, and Pacific Belle hosted by BOMA/San Francisco. Northern Virginia region. Moose will customize an address for the BOMA audience on security prepared- For complete program and event details and registra- ness and response; teamwork; leadership; and commu- tion information, visit www.bomaconvention.org nicating with the community, the media, and govern- ment, law and safety/emergency officials. Thank you to our 2003 BOMA International Local Convention Sponsors

Golden Gate Sponsors Coit Tower Sponsors Able Services August Supply Shorenstein Realty Services Bartko, Zankel, Tarrant & Miller BCCI Construction Company Nob Hill Sponsors BOMA Chicago Allied Security Leo Epp Company BOMA Silicon Valley Marble West R.N. Field Construction, Inc. Pacific Heights Sponsors Terwilliger Management Company ABM Family of Services Cousins Properties Equity Office Properties Trust In Kind Services Norcal Waste Systems, Inc./ Golden Gate California Technical Contracting, Inc. (CTC) Disposal & Recycling Co. Gardener’s Guild, Inc. Cable Car Sponsors Sentinel Guard Systems Barton Protective Services Additional sponsorships are still available. BOMA Oakland-East Bay Contact Lisa Vogel at 415/391-0909. Boston Properties LP To volunteer for the youth/spouse program CAC Real Estate Mgmt. Co., Inc. contact Kirsten Walraven at 415-392-8844. Cushman & Wakefield Farella Braun + Martel LLP The Swig Company ThyssenKrupp Elevator Unico Properties, Inc. Wilson/Meany Sulivan LLC 7 MARCH/APRIL www.bomasf.org 2003 CALENDAR Calendar of Events, Committees and Task Forces Register for these events and confirm date and times at www.bomasf.org March 11 4 Education Committee, Tues., 12-1:00 p.m. Membership Development Task Force, 9-10:00 a.m. The Education Committee helps develop programming for semi- nars, informal "brown bag" sessions and membership luncheons The Membership Development Task Force identifies non- to provide timely, quality and useful information to the member- member buildings and planned developments in San Francisco, ship. BOMA Boardroom. For more information contact Chair San Mateo, Sonoma & Marin counties. The task force's goal is to Kirsten Walraven at [email protected]. successfully recruit new members to BOMA San Francisco and encourage those new members to become involved in the 12 Association. BOMA Boardroom. For more information contact Chair Agnes Wyman at awyman @swigco.com. Security Committee, Wed., 9:30-10:30 a.m. The Committee identifies exemplary security, emergency 5 preparedness and incident prevention practices in the commer- cial property field, and educates members about the security Peninsula Membership Luncheon, Wed., 11:30 a.m.-1:30 p.m. assessment tools and range of preparedness options available to Reduce Traffic Congestion & Save Money: Affordable Commute them. For more information contact Chair Joe Chiamparino at Incentives for Peninsula Employers and Their Employees. The [email protected]. Peninsula Traffic Congestion Relief ALLIANCE is dedicated to addressing the challenges involved in getting to and from work 13 in San Mateo County. Their goal is to help people find ways to get to work that are faster, cheaper, and/or easier through Facilities Planning and Project Management, Thurs. – Sun. Mar 16. commuter information, employer programs, and city transporta- This course teaches how to assemble and manage facilities teams tion demand management partnerships. The group’s Executive and how to plan and implement facilities projects, including Director and Programs Manager will present the benefits of methods to control key elements of the process. In this course ALLIANCE programs to employers and employees. We encourage you will examine case studies on SFP models, project manage- you to invite your tenants and clients to this informative presen- ment methods, and outcomes. You will also study how to close tation that can assist in relieving traffic congestion in San Mateo out projects, how to complete and use a facilities annual report, County. For information/registration visit www.bomasf.org or and how to read and interpret architectural drawings. For more contact Francine Anderson at 415/362-2662 x10. information contact BOMA Education Program Administrator Gil Martinez at 415/362-2662 x12. . *(Qualifies for 30 hours 6 CPD/DRE credits).

Solid Waste Recycling Task Force, Thurs., 12-1:00 p.m. 24 The Task Force educates members on ways to support effective waste reduction, recycling and hazardous waste materials in BOMA-SF-PAC, Mon., 12-1:00 p.m. commercial properties. Meeting location: Ghirardelli Square, 900 The BOMA-SF-PAC is the separately incorporated political Northpoint, Suite 100. For more information contact Chair action arm of the association. The BOMA-SF-PAC endorses and Kathleen Hennesey at [email protected]. supports local candidates for public office, local ballot initiatives and independent expenditures of behalf of issues or candidates. 6 Due to State and local regulation of meetings are open to BOMA members as observers only. If you would like to be considered Design, Operation & Maintenance of Bldg. Systems, Part I, Thurs. – for a board position, please contact the Chair Bob Spicker at Sun. Mar 9. [email protected] This course teaches how to manage the ongoing operation and maintenance of building systems, gaining insight into the many 25 issues that affect building efficiency and cost-effectiveness. You will acquire the skills to perform life-cycle costing on building GAPAC, Tues., 12-1:00 p.m. projects, gain the knowledge to assist a design team on construc- Government and Public Affairs Committee represents BOMA tion and renovation projects, and learn to develop sound service members' interests before every government body or public contracts and effectively monitor the performance of contractors. policy forum as required. BOMA Boardroom. For more infor- For more information contact BOMA Education Program mation contact Chair Tim Falvey at [email protected]. Administrator Gil Martinez at 415/362-2662 x12. *(Qualifies for 30 hours CPD/DRE credits).

*CPD = Continuing Professional Development credits, 18 credits required per 3 year period to maintain designation. DRE = Dept. of Real Estate – contact DRE for license maintenance requirements. 8 MARCH/APRIL 2003 www.bomasf.org 26 of negotiation. Often the problem isn't what's in the lease, but Building Codes Task Force, Wed., 12-1:00 p.m. what's mission, and Mr. Cherry will go over many examples of The task force monitors the current trends in Code Enforcement missed issues. For information/registration visit www.bomasf.org that may affect the commercial real estate industry at the city or contact Francine Anderson at 415/362-2662 x10. and state level and educates the membership on code related *(Qualifies for 2 hours CPD credits). issues. BOMA Boardroom. For information contact Chair Gordon L’Estrange at [email protected]. 15 Ethics is Good Business-One Day Short Course, Tues., 8:30 a.m.-5:30 27 p.m. Membership Luncheon, Thurs., 11:30 a.m.-1:30 p.m. Ethics Is Good Business helps you understand the impact that A panel of local real estate leaders will present their views on ethical behavior can have on your professional performance and current market conditions and their predictions for the next 18 your property’s bottom line. This course is available as a six- months. Palace Hotel, 2 New Montgomery St. For hour, interactive seminar or in a self-study format. Through information/registration visit www.bomasf.org or contact video presentations of real-life scenarios and case studies, you Francine Anderson at 415/362-2662 x10. will identify and resolve ethical dilemmas that can occur on the job. For more information contact BOMA Education Program Administrator Gil Martinez at 415/362-2662 x12. . *(Qualifies April for 6 hours CPD/DRE credits). 16 3 Membership Luncheon, Thurs., 11:30 a.m.-1:30 p.m. Solid Waste Recycling Task Force, Thurs., 12-1:00 p.m. Supervisor and mayoral candidate Gavin Newsom. Co-spon- The Task Force educates members on ways to support effective sored with CREW SF. Palace Hotel, 2 New Montgomery St. For waste reduction, recycling and hazardous waste materials in information/registration visit www.bomasf.org or contact commercial properties. BOMA Boardroom. For more informa- Francine Anderson at 415/362-2662 x10. tion contact Chair Kathleen Hennesey at [email protected]. 23

7 Building Codes Task Force, Wed., 12-1:00 p.m. The task force monitors the current trends in Code Enforcement Facilitated Group Study, Mon.– Thurs. Apr 10. that may affect the commercial real estate industry at the city Facilitated Group Study is a format similar to Accelerated and state level and educates the membership on code related Review in that it consists of a combination of Self-Study and the issues. BOMA Boardroom. For information contact Chair classroom environment. Unlike the Accelerated Review format, Gordon L’Estrange at [email protected]. FGS does not include instruction or lectures. Rather, students are paired up or put into groups to study together. During FGS class, 28 pairs or groups of students registered for the same course review BOMA-SF-PAC, Mon., 12-1:00 p.m. the course textbook, including the key concepts, to prepare for the exam. The facilitator is available to answer questions and The BOMA-SF-PAC is the separately incorporated political facilitate group discussions. For more information contact BOMA action arm of the association. The BOMA-SF-PAC endorses and Education Program Administrator Gil Martinez at 415/362-2662 supports local candidates for public office, local ballot initiatives x12. *(Qualifies for 30 hours CPD/DRE credits). and independent expenditures of behalf of issues or candidates. Due to State and local regulation of meetings are open to BOMA 8 members as observers only. If you would like to be considered for a board position, please contact the Chair Bob Spicker at Education Committee, Tues., 12-1:00 p.m. [email protected] The Education Committee helps develop programming for semi- nars, informal "brown bag" sessions and membership luncheons 29 to provide timely, quality and useful information to the member- GAPAC Meeting, Tues., 12-1:00 p.m. ship. BOMA Boardroom. For more information contact Chair Kirsten Walraven at [email protected]. Government and Public Affairs Committee represents BOMA members' interests before every government body or public 10 policy forum as required. BOMA Boardroom. For more infor- mation contact Chair Tim Falvey at [email protected]. SEMINAR: Negotiating & Improving Problem Lease Clauses, Thur. , 8:45 a.m. – 11:00 a.m. Edward Cherry, Partner, Farella Braun + Martel LLP will give his expert advice on how property managers can make negotiating leases easier and more effective by analyzing the purpose and potential problems in lease clauses that are most often the subject

*CPD = Continuing Professional Development credits, 18 credits required per 3 year period to maintain designation. DRE = Dept. of Real Estate – contact DRE for license maintenance requirements. 9 MARCH/APRIL www.bomasf.org 2003 ADVOCACY What Happened at BOMA International’s Winter Business Meeting and National Issues Conference?

ver 450 delegates braved the cold and convened BOMA Membership Continues to Grow in Washington, DC, January 24-28, for BOMA BOMA International’s President-Elect John Kelly reported a International’s Winter Business Meeting and O 1.65% growth in BOMA International’s membership in National Issues Conference. The record-breaking crowd 2002. BOMA membership now totals 18,907 in 108 local joined in committee, task force, special interest group associations with the addition of the newest local associa- (SIG), and board meetings to discuss security and emer- tion, BOMA/Raleigh-Durham. Forty-eight local associa- gency preparedness, energy, codes, education initiatives, tions were recognized for net membership growth in 2002. advocacy strategies, marketplace issues, and a host of other topics, and to approve BOMA International’s busi- New ISAC Initiative Announced ness plan and budget for 2003. BOMA International’s Vice President Winter Business Meeting Highlights Steven W. Ford, Cushman & Wakefield, East Rutherford, NJ, BOMA/New York, "Showing Our Strength in Lean Times" unveiled a new Information Sharing In his State of the Association address to Analysis Center (ISAC) initiative with the Board of Governors, BOMA the federal government under the International’s President Larry F. auspices of the National Infrastructure Soehren, Kiemle & Hagood Co., Protection Center (NIPC) within the new Spokane, WA, BOMA/Spokane, Department of Homeland Security recounted an impressive performance by (DHS). Enough acronyms to confuse the association in a tough economic year, even Washington insiders! In creating an highlighted by a major victory for the ISAC, real estate associations will coordi- industry with President Bush’s signing nate and disseminate security informa- of terrorism insurance legislation. Both tion from the federal government to state Soehren and BOMA International’s and local networks, and you. More President-Elect John P. Kelly, RPA, Ryan information is posted on the Web site, Companies, Minneapolis, MN, and this new system should be in place BOMA/Minneapolis and BOMA/St. by mid-year. Paul, were present at the signing ceremony. Soehren also On a related front, the GSA is leading a government initia- detailed BOMA’s on-going dialogues with commercial real tive to set new security standards for government tenants estate’s owners through the National Advisory Council, currently housed in 150 million square feet of private Regional Owners Council, and emerging Local Owners office space. BOMA has been providing information Councils, and BOMA’s growing body of information on through focus groups and regular communications with asset management. our GSA colleagues. Final regulations will be distributed Soehren reported partnerships with the Real Estate in the spring. The GSA is also planning to do a series of Roundtable, the General Services Administration, the large national brokerage contracts. These will amount to BOMI Institute and others. A delegation of IFMA officers about 150 million square feet and $3 billion per year, or as and staff attended the Winter Business Meeting and met much as 50% of their business. Each brokerage firm must with BOMA representatives to discuss areas for coopera- do business in all 11 GSA districts. The notice will be tion. posted on Federal Biz Opps. and GSA will conduct a conference once the brokerage firms are selected. In 2002, BOMA reached out to the industry and the membership in significant ways. BOMA International’s New BOMA Publications officers visited over 50 local associations and BOMA was The latest addition to BOMA’s Property Professional’s reported in 522 major media stories. That represents nearly Guide Series, The Property Professional’s Guide to half of all commercial real estate’s coverage. BOMA Managing an AED Program, was launched at the Winter International’s Web site was visited by a staggering Business Meeting. Developed in conjunction with the 750,000 people (over 12,000,000 hits), and brought visi- American Heart Association, this comprehensive guide- bility, new initiatives, and new partners to the association. 10 MARCH/APRIL 2003 www.bomasf.org book explains the main components of setting up an hensive national energy policy legislation. The Board of Automated External Defibrillator (AED) Program. Governors later approved the new policy …Government Another new BOMA publication, the ADA Guidebook: Affairs Committee established the legislative, regulatory 2003 Edition will be launched in March, and focuses on the and codes priority issues for 2003, including taxes, next generation of accessibility rules and regulation. National Energy Policy, Federal Property Act reform, Federal Building Security Standards, state and local model National Issues Conference Report code adoption, ADA/ADAAG revisions, terrorism insur- BOMA International hosted over 250 BAE's and members ance regulation, indoor air quality/mold, and telecommu- in the largest ever gathering for the National Issues nications/forced building access. Conference. Stuart Rothenberg, political analyst and …Telecommunications Task Force received an update on publisher of the Rothenberg Report, was the keynote the latest developments in the Texas Telecomm litigation. speaker on Monday. Also featured during the conference Oral arguments before the Texas Court of Appeals will be were addresses by Senator Chuck Hagel (R-NE), heard on February 5 and a ruling is expected in the Representative George Nethercutt (R-WA) and summer. Previous rulings by the courts seem to favor Representative Phil English (R-PA), Co-Chairman of the BOMA’s position, so we are optimistic …Building Codes Real Estate Caucus. BOMA members then went to the Hill and Voluntary Standards Committee considered potential to participate in dozens of meetings with their revisions to the policy regarding NFPA codes in light of Representatives and Senators during the morning and the NFPA position revealed during a BOMA/NFPA leader- early afternoon before the President's State of the Union ship meeting last fall. NFPA does not intend to hold speech. The issues targeted in these meetings were further discussions with ICC to consider possible coopera- changes to the leasehold depreciation period, capital gains tive efforts to develop a single set of national model codes. tax reductions, the comprehensive National Energy Plan, and revisions to the Federal Property Act giving GSA more flexibility to manage the federal portfolio.

Committee Highlights A summary of all committee discussions and deliberations is included on BOMA’s Web site. Following are high- BOMA SF Forms lights… San Mateo Government …Asset Management Committee set education for Asset & Public Affairs Committee Management Day at BOMA’s annual convention in San Francisco and held a focus group with the BOMI Institute to gauge marketplace interest in new educational offerings …Education Committee confirmed seminars for the annual convention …Medical Office Buildings and Healthcare Facilities SIG continued planning for its program in San Francisco in conjunction with the conven- tion, building upon last year’s record-breaking seminar in Chicago …Suburban Buildings SIG discussed new devel- opments such as tilt-up construction, unused generators, sale vs. lease relationships and tenant trends. …Both the Harout Hagopian, Equity Office Properties Trust, Computer Applications and Technology SIG and the E- Chair of the newly-formed San Mateo GAPAC and Commerce SIG had a thorough review of the online EER BOMA’s Director of Government and Public Affairs, product. Both SIGs offered suggestions for improvements Ken Cleaveland are looking for member volunteers which are being investigated for feasibility. The groups interested in establishing a communications link also agreed to merge for the scheduled meetings in June, between BOMA, San Mateo County government and time and date to be announced major cities on the peninsula. If you are interested in joining the committee, contact Ken at [email protected]. …Energy Committee revised BOMA’s National Energy Policy to emphasize the need for Congress to respect regional competitive advantages and preserve local legisla- tive and regulatory accountability in crafting any compre-

11 MARCH/APRIL www.bomasf.org 2003 ADVOCACY BOMA San Francisco Delivers Commercial Real Estate Message to Congress

OMA SF representatives, including Marc BOMA members also advocated for Congress to pass a Intermaggio, Ken Cleaveland, and Michael National Energy Policy (see following story) that BOddo, President of Metro Maintenance, briefed respected regional and state differences, and urged our the Bay Area Congressional delegation on several leaders to take steps to reduce U.S. dependence on issues affecting commercial real foreign oil. BOMA suggested estate during the organization’s Congress allow a one time depre- semi-annual National Issues ciation bonus of 75% for capital Conference, held in Washington, improvements made this year in DC in January. Meetings were energy-saving equipment or held with Senators Dianne technologies installed in office Feinstein, Barbara Boxer, buildings. BOMA members Representatives Nancy Pelosi, thanked the Members for their Tom Lantos, Lynn Woolsey, and support of the Terrorism others. BOMA members and staff Insurance legislation in the last conveyed our members’ concerns Congress, but requested they for equitable tax treatment of maintain oversight over the rules commercial real estate invest- Senator Diane Feinstein and Government & the Treasury Department will ments in several specific ways: Public Affairs Director Ken Cleaveland issue that will implement the law • Make permanent the measures to ensure rates are set fairly and included in the objectively by the insurance industry. BOMA members stimulus legislation passed in the 107th Congress also called on our Bay Area Representatives to partici- • Accelerate the tax cuts included in the previous pate in the Congressional Real Estate Caucus, as our stimulus legislation to be come effective in later years industry is one of the largest and most important pieces • Increase the depreciation write-offs for capital in the nation’s economic pie, and warrants their direct improvements by reducing the depreciation involvement. Lastly, BOMA members asked Congress schedule from 39 to 10 years, which more accurately to adopt new legislation that would amend the 1949 reflects the actual period of lease agreements Federal Property Act to allow the General Services • Extend the Brownfields clean-up cost expensing Administration greater flexibility in the ways that it can law passed in 2002 and scheduled to expire in 2004 manage and maintain the Federal Government’s huge • Reduce or eliminate the capital gains tax portfolio of properties.

Ken Cleaveland, Marc Intermaggio, Congresswoman Nancy Pelosi, Brett Davis, Glenborough Realty Trust, and Michael 12 Oddo, Metro Maintenance. MARCH/APRIL 2003 www.bomasf.org PROFESSIONAL DEVELOPMENT Continuing Education Spotlight: Louise Kleiber, RPA candidate Spring 2003 RREEF/Citicorp Center

"My interest in real estate began at a very early age. I received my real estate license when I was 19, at the urging of my father. My family had several real estate holdings and dad wanted to keep the business in the family." Louise Kleiber, property manager for RREEF, Citicorp Center took a few minutes to talk to us about what earning her RPA (Real Property Administrator) designation has meant to her. "I’m a strong proponent Louise Kleiber, RPA candidate of continuing education. While I was earning my Spring 2003 undergraduate degree, it occurred to me that, for the RREEF/Citicorp Center most part, a college education is only good for the 4 years that it took to earn it – you can’t stop there." FACILITATED GROUP STUDY Kleiber, a San Francisco native who resides in Mill Valley, started her career in commercial real estate with a position as project accountant for China Basin Landing. An assistant manager position with the Marin Technical Center which houses aspects of Lucas Film Corporation soon followed. In July of 2000, Louise took on her current position at Take any RPA, FMA, SMT, or SMA Course. Note: Ethics Is Good Business ® ShortCourse™ the Citicorp Center. cannot be taken in the FGS format. "I am truly fortunate that RREEF encourages and supports continuing education for all of its Facilitated Group Study is a format similar to Accelerated Review employees. The value of my RPA benefits both format in that it consists of a combination of Self-Study and the classroom of us. I benefit from the invaluable relation- environment. Unlike the Accelerated Review format, FGS does not include ships I’ve made with my peers, the wonderful instruction or lectures. Rather, students are paired up or put in groups to instruction of Dr. Michael Clevenger who study together. During an FGS class, pairs or teams of students registered teaches the courses, and my partnership with for the same course review the course textbook, including the key con- BOMA San Francisco. cepts, to prepare for the exam. The facilitator is available to answer ques- My employer, any employer who supports the tions and facilitate group discussions. program, benefits from a workforce and profes- sional community that’s been trained by the Instructor: Michael Clevenger, Ph.D., RPA, FMA, SMA, CFM leader in the industry. "You have to dedicate yourself to a lifetime of learning and education, Date/Time: April 7 - 10, 2003, 8:30 a.m. - 5:30 p.m. both professionally and personally. Earning my Exam: April 10, 2003, 3:30 p.m. - 5:30 p.m. RPA is one great step in the journey." Cost: $795 Member Price, $895 Nonmember Price

Know-how to succeed.

13 MARCH/APRIL www.bomasf.org 2003 ADVOCACY

President’s Message cont. from pg.1 way to make the City prosper is by making it easier for its That’s why BOMA’s Board of Directors and Political Action citizens to become prosperous. Committee both unanimously endorsed Gavin Newsom for Mayor, and believe he is the best qualified to revitalize our Gavin Newsom will pull everyone together who wants to city of all the candidates in this year’s election. make San Francisco work again. He will insist the city have an economic development plan, that’s funded and followed. He will reform the way City Hall is run. And he will ensure that critical issues such as job creation, increased home ownership opportunities, and a cleaner environment are front and center on his agenda at City Hall.

The Lawson

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14 MARCH/APRIL 2003 www.bomasf.org PROFESSIONAL DEVELOPMENT Members on the Move Linda Novy, President and CEO of Gardeners’ Boston Properties LP, has elevated Steve Colvin, Guild, was honored by the National Association of RPA, SMA, CPM to Senior Vice President of Women Business Owners (NAWBO) as its Property Management for the San Francisco Region. Businesswoman of the Year The Company also promoted Rick Buziak, RPA, during Office Depot’s FMA to the position of Senior Property Manager. "Success Strategies for Colvin is BOMA San Francisco’s President-Elect and Businesswomen" conference Vice President of BOMA California. Buziak serves on in February. Gardeners’ the Government & Public Affairs Committee (GAPAC). Guild is an employee- owned company with 125 Congratulations to Kirsten Walraven, General technicians and crafts- Manager of Street which is managed people providing interior by Seagate Properties, on earning her RPA and FMA. and exterior landscape Ms. Walraven is a vocal advocate of the benefits of management services to continuing education. She also serves as the Chair of Bay Area commercial and BOMA's newly-formed Education Committee. residential customers.

Nation's Top Recycling Plant Opens at Pier 96 BOMA Member Unveils State-of-the-art Facility

ecycle Central, the most modern recycling San Francisco's program makes recycling easy and facility in the United States, opened convenient for residents and businesses. People RWednesday, March 5, 2003 on San Francisco's simply place paper, bottles and cans together in a blue Pier 96. San Francisco Mayor Willie Brown and Norcal cart. No more sorting paper from bottles and cans at Waste Systems, Inc. President Mike Sangiacomo threw home or work. Instead, Recycle Central does the sepa- the switch and powered the 200,000-square-foot plant rating in the most efficient manner possible. capable of sorting and baling up to 2,100 tons of recy- clables a day. San Francisco's Board of Supervisors has set a goal of achieving 75 percent recycling citywide by 2010. Recycle Central brings the most effective mechanical Recycle Central provides the industrial sorting systems for sorting recyclables under one roof. systems necessary for San Francisco to process its own Recyclables in this $38 million facility are separated recyclables and divert hundreds of thousands of tons using a combination of specialized equipment and of recyclable materials from landfill. hand sorting. Clean, baled recyclables are loaded into cargo containers for shipment to paper mills, glass "We are not just recycling," Sangiacomo noted, plants and manufacturing facilities that produce new "Recycle Central and the people of San Francisco are consumer goods from yesterday's discards. demonstrating that environmental practices can meet "This is the premier recycling facility in this country market demand." and it is going to keep San Francisco the leader in recycling," Sangiacomo said. "We are innovators. We are finding ways for recycling to work better in the communities we serve." 15 MARCH/APRIL www.bomasf.org 2003 Negotiating and Improving Problem Lease Clauses

Property managers probably spend some part of every day reviewing or negotiating Building Owners & Managers Association leases. This presentation will Now Available! of San Francisco make that effort easier and Serving San Francisco, more effective by analyzing the San Mateo, Sonoma & purpose and potential prob- Guide to Preparing for Marin Counties lems in lease clauses that are and Managing most often the subject of Media Sponsor negotiation. Often the problem Construction Projects isn’t what’s in the lease, but what’s missing.

This guide provides a fundamental understand- Edward A. Cherry, Partner, Thursday, April 10 Farella Braun + Martel LLP, ing of the tenant improvement and construction structures acquisition, joint 8:45 a.m. Registration/coffee management process. One free copy has been ventures and investment pools provided to every principal BOMA San Francisco 9-11 a.m. Program in the U.S. and abroad for member as of February 28, 2003. Palace Hotel REITs, major developers, wineries and hotel chains and $75 members assists in all aspects of the Additional copies may be purchased at $95 non-members development and ownership www.bomasf.org/publications. 2 hours CPD credit of office buildings, hotels, wineries, shopping centers and multi-and single-family Member Price $50.00 housing projects. Non-member Price $75.00 Register on-line: www.bomasf.org or R.S.V.P.: Francine Anderson at 415/362-8567

BOMA San Francisco 233 Sansome St., 8th Fl. San Francisco, CA 94104-2314

Ph. 415.362.8567 Fax 415.362.8634 www.bomasf.org