BOMA Views Winter 2014 Edition

Get Out Your Measuring Tape for New Codes: See Page 9

Route to:

Is Your Building Making Sustainable Innovations?

Winter 2014

Then Enter BOMA’s New Innovative EARTH Awards The BOMA EARTH Awards program, having stimulated trendsetting excellence in building sustainability for years, is evolving into a new program entitled, Innovative EARTH Awards. The contest is open to members of BOMA San Francisco and BOMA Oakland/ East Bay. “We have shifted the focus from the extensive checklist application of past years and instead we are highlighting the unique, innovative measures members are implementing in pursuit of environmental sustainability,” says Jenna Hattersley, chair of BOMA San Francisco’s Energy and Environment Committee.

“The application is short, easy to complete, and limited documentation is required. Any BOMA member may enter. Innovations should seek to address, at the building level, items such as energy conservation, waste diversion, water conservation, hazardous materials management, transportation, tenant education, or any other new and interesting sustainable practice,” Hattersley continued.

What’s Inside Views...

BOMA SF Goes to DC • Page 2 Members on the Move • Page 5 Meet BOMA Members • Page 7 Your Growth in 2014 • Back Page Mixing & Mingling... Page 11

An example of an Innovation might be a vegetable garden for tenants, or a tenant carpool or vanpool coordinated by the building.

Applications for BOMA’s new Innovative EARTH Award are due March 24, and will be reviewed by the Energy and Environment Committee. Winners will be announced at the BOMA Innovative EARTH Award luncheon on April 24.

“Building owners and property management groups have the opportunity to showcase their efforts and bring environmental stewardship to a new level of excellence,” says Energy and Environment Committee Co-Chair Laurie Rummelhart.

Committee Co-Chair Jessica Handy added, “The Innovative EARTH Award gives those who innovate the opportunity to inspire others, and by making the application brief and specific we hope to encourage all those innovators out there to take the time to inspire!”

Visit www.bomasf.org to download an application for this prestigious award.

2 Thanks to BOMA San Francisco’s 2014 Corporate Sponsors*

Ms. MacIntyre Goes to Washington With Sarah MacIntyre, BOMA San Francisco President

Platinum Sponsor

Able Services Gold Sponsors

ABM NRG Energy Center San Francisco ProTech Security Services, Inc. Recology Golden Gate Universal Protection Service

I have just returned from a tremendous visit to Washington, D.C. for the BOMA Winter Business Conference. Here are my top ten reflections: 1. Great place to go for a run! Jogging up a very flat K Street, I was struck by how each building housed either an International or National Association. It really puts into perspective that every industry is representing their political agenda and if you aren’t doing it well, I am sure you can imagine the outcome.

2. It’s all about me. At all of our local 2014 economic forecast events, San Francisco market leaders assured us that the Bay Area is the center of everything good and growing in business, tech and real estate. While there is some truth to that, our local, state and federal governments are making the most impactful business decisions with or without us. Don’t get caught in the “we are impervious” bubble.

3. Calling all political junkies. BOMA International’s winter business meeting is held in Washington, D.C. every other year. It’s a great way to enjoy our nation’s capital, absorb the air steeped in American tradition and tap the full benefit of your BOMA membership. Consider sending one company representative each time to hear what your colleagues are doing around the nation, to better understand the BOMA International resources, and be educated on the top political fights that are happening right now.

4. BOMA International does what? Every year at the BOMA conferences, I am tutored on government affairs, emergency preparedness, changing building codes and standards, and many other industry issues and trends. This year BOMA International calculated that their actions saved $2.50 psf by blocking costly, unnecessary codes from being put into law.

That’s on top of $3.50 psf saved through successful codes and regulatory advocacy from 2010–2012.

5. Shame on us. We need to financially support the political fights that BOMA International is taking on. The negative financial impacts of “TRIA” (Terrorism Risk Insurance Act) not being renewed and the need to establish a permanent 15-year Leasehold Depreciation schedule for our industry are relevant to everyone reading this article. If you are a property owner and are not generously funding BOMA International and BOMA SF PAC’s, shame on you. Your contribution would make a difference.

6. Valuable Partnerships. We could not have had such a successful conference without our Associate Partners. They provided event sponsorships, focus groups and brought clients together from different markets, which enhanced our overall experience. Thank you.

(Continued on page 10)

Silver Sponsors Alliance Roofing Company, Inc. AT&T BNBuilders CBRE Hines Kilroy Realty Corporation Metropolitan Electrical Construction, Inc. Pacific Gas and Electric Company Paramount Group, Inc. San Francisco Electrical Contractors Assn., Inc. Unique Elevator Interiors, Inc. Waxie Sanitary Supply

Bronze Sponsors Biagini Waste-Always Green Cassidy Turley Deutsche Asset & Wealth Management Equity Office Georgia-Pacific, LLC Hathaway Dinwiddie Construction Co. Hudson Pacific Properties Impark Marble West McMillan Electric Co. RiverRock Real Estate Group Securitas Security Services USA Shorenstein Realty Services, L.P. The Swig Company, LLC Township Building Services, Inc.

Friends of BOMA American Asphalt Boston Properties Capital Building Maintenance CBF Electric &Tel/Data Cole Supply CTC-California Technical Contracting, Inc. Cushman & Wakefield of CA GCI General Contractors LAZ Parking R.N. Field Construction, Inc. Rossi Builders, Inc. The Lawson Roofing Co. Inc. ThyssenKrupp Elevator Corporation Transwestern Wilson Meany Young Communications *For sponsorship opportunities, please contact Tory Brubaker at toryb@BOMA.com

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5 Members on the Move McKesson Corporation announced that Bonnie Kalbrosky joined the company as the new General Manager for One Post Street.

Bonnie has over 20 years of experience in the San Francisco high-rise real estate management industry, the majority of which was at Shorenstein Realty Services.

Bonnie is an active BOMA member and serves on the Emergency Preparedness Committee.

Raul Plascencia was promoted to Project Manager by McNevin Cleaning Specialists. He is the direct point of contact for the Northern Peninsula, SOMA and Marin markets. Raul graduated from DeVry University with a BS in Business Administration with an emphasis in sales and marketing. He serves on BOMA’s Member Services Committee.

Craig Van Dorp is now General Manager at Gachina Landscape Management, where he will further develop its growing portfolio of Bay Area accounts.

He brings 10 years of experience with a leading area landscaper and a deep knowledge of the art and science of horticulture.

Craig will focus on operations, customer service and quality.

255 California Street, owned by Prudential Real Estate Investors and managed by CBRE, has been awarded LEED EB Gold Status by the United States Green Building Council. A project team consisting of building staff and vendors, with the assistance of Envision Realty Services, was able to achieve this designation by adopting several lowcost or no-cost sustainable operating programs and procedures.

In Memoriam...Sarah Marantette passed away on December 19, 2013 as a result of a brain aneurysm. Sarah worked for Cushman & Wakefield and for several years she served on BOMA’s Emergency Preparedness Committee. She was a very dedicated team player who will be greatly missed.

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7 Principal Member Profile

Wesley Powell, Managing Director Jones Lang LaSalle

What is the biggest challenge facing commercial property management today and what can BOMA do to meet it?

As a lot of property managers are nearing retirement, there is a real need for new talent.

Through the BOMA SF Foundation and its partnership with SF State and soon other universities, BOMA is meeting the challenge of training the next generation of leaders and helping them get on the fast track. It’s also linking other real estate associations in this effort.

Describe your BOMA involvement over the years and comment on the value of your participation to your company and your personal career.

When I was a property manager, I became involved with BOMA early in my career and relied on its EER and other resources. As I advanced in my career, I was able to learn from good mentors I met through BOMA. Years ago, I served on the Government Affairs Policy Advisory Committee and now serve on the Board of Directors. I believe that BOMA is the organization that does the most good for real estate.

What advice do you have for new BOMA members?

Get involved and realize the many facets of BOMA’s service to the industry. It will help your Wes Powell wakeboarding company, career and tenants. Whatever your role in real estate, you will be able to create on the Colorado River. more value for your owners, due to the opportunities and knowledge base BOMA offers.

What do you enjoy doing during your off-hours?

I love sailing and wakeboarding. Every year I go on a wakeboarding trip on the Colorado River with a group of friends from high school. In my leisure time, I enjoy spending time with my family doing sports, community and church activities.

Associate Member Profile

Nick Dutto, CEO Metropolitan Electrical Construction

What are the two biggest challenges facing electrical contractors working in commercial buildings?

This industry has changed so much over the years. It has become very competitive.

The days of everyone knowing everyone else and business being done via a handshake are long gone. While relationships are still a critical factor to being successful in this industry, outside corporate giants and business school money driven negotiations combined with the litigious society we now live in has forced all electrical contractors to evolve with the times. This is not necessarily a bad thing, it is just the way the construction business is in 2014 and creates new challenges every day for all of us.

Describe your BOMA involvement over the years, and comment on the value of your participation to your company and your personal career.

I serve on the Political Action Committee. Participation in many of BOMA’s political events and the numerous other BOMA functions have not only created lasting Nick Dutto overseeing the 24/7 relationships for us, but have also allowed us to stay connected in San Francisco, which operations at Metropolitan. is so important to us as a San Francisco–grown company. As a San Francisco native who still lives here, I have always valued being a part of the San Francisco business community, and it has given back to me as much as I have given to it.

What advice do you have for new BOMA members?

Get involved, get to know the people in BOMA and what we are all working for together.

What do you enjoy doing in your off-hours?

What off hours? Running a $50 Million Company is a 24/7 gig! But when I do get free time, which is critical to staying fresh and keeping a healthy perspective and balance, I enjoy spending time with my family and friends, as well as vacationing at my house in Tahoe.

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9 Get Out Your Measuring Tape for New Building Codes A few inches might not seem a lot to someone who’s not handicapped, but they can mean the difference between being able to lead a more normal life or suffer embarrassing and unnecessary inconveniences to disabled people, says plaintiff attorney Celia McGuinness. And

(or is not) ADA compliant and, if not corrected, could face a future lawsuit. This form is available from the San Francisco Small Business Commission’s website.

• Elevators in existing buildings must be 48” x 54,” instead of the current minimum of 48” x 48.”

NOTE: Federal ADA law states that “readily achievable” is one of the criterion to be used in determining if something is an ADA violation or not, and making an elevator shaft wider would likely be considered not “readily achievable,” and thus exempt, according to the panelists.

“Compliance up front is much easier than facing a lawsuit later down the road.” – Ken Cleaveland

yet, those inches can also cost property owners a lot of money in lawsuits if not accommodated.

She and other expert speakers detailed those allimportant inches and much more at BOMA San Francisco’s recent annual Building Codes Seminar. Skip Soskin of Huntsman Architectural Group described the new combined California Building Code Title 24 requirements with the 2010 American with Disabilities Act (ADA), saying, “There are actually very few new requirements.” He also noted that San Francisco, however, will add its own regs, and no one yet knows what they will be.

The pros and cons of the Certified Access Specialist program were debated, with some saying getting a CASp report carries little weight, while others felt it demonstrates a building operator’s intent to comply with the law — as long as the owner is prepared to follow through on what the CASp report found and puts a schedule together to address any deficiencies.

Here are some details: • New SF leases of 7500 s.f or less must now include a form signed by both tenant and landlord verifying that the tenant understands that the space he/she is renting is

• There must be room for van parking every six spaces — instead of eight.

• Shower rooms must include a toilet and sink.

• Ramps that change direction between runs must have an intermediate landing of at last 60” wide and 72” long in the direction of travel.

• Toilets must be 17” to 18” from side walls, instead of the current 16” and 18” space to provide more space for a wheelchair to maneuver.

• Yet other changes affect lavatories, sinks, water fountains, showers and signage.

Ken Cleaveland, BOMA’s vice president, public policy, said, “It’s important to have competent architects always review any designs for tenant spaces as how ADA laws are interpreted and enforced do vary from jurisdiction to jurisdiction. Compliance up front is much easier than facing a lawsuit later down the road.”

In other news from the codes seminar, San Francisco adopted new local building codes effective January 1, 2014 that will include the ability for owners of fully sprinkled buildings to install non-rated demising walls in tenant spaces. This is a significant cost savings change for both tenant and landlord. New buildings will also be allowed to substitute a firefighter service elevator in place of installing an air replenishment system (ARS) for firefighter use.

For more details about topics covered in the Codes Seminar contact Ken Cleaveland, BOMA San Francisco Vice President, Public Policy at kenc@boma.com or check out the BOMA SF blog at bomasanfrancisco.blogspot.com.

10 COLLABORATION, ORGANIZATION, EXECUTION

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President’s Column

(Continued from page 2)

7. Where’s Ring? Or Peterson, Gille and Court? This is sort of like Where’s Waldo, D.C style. Marc Intermaggio trying to keep the team together from committee meetings to networking events and eventually on to Capitol Hill. Let’s just say that it isn’t easy being the Executive Vice President.

8. BOMA SF Team. Ken Cleaveland, John Bozeman and Marc Intermaggio did a fantastic job of prepping our team on the legislative issues and getting us appointments on Capitol Hill. It was a pleasure seeing Ken in his element, getting fired up about the issues! We are so fortunate to work with these talented individuals.

9. Pinch me. When Representative Nancy Pelosi walked into the room at our legislative meeting, I was unabashedly star struck. First she sent her top three aides, and then she personally prepped us on the status of our chosen issues. As fast as she arrived, she left to vote on the extension of a California water rights bill.

Did that really happen? Good thing Ken got a picture.

Top photo: BOMA Bay Area delegation in the office of Minority Party Leader Nancy Pelosi. Lower photo: BOMA SF VP Ken Cleaveland, Susan Court and Nancy Gille on Capitol Hill.

10. Most Memorable. Late afternoon brunch at The Old Ebbitt Grill—think Tadich Grill on steroids—Eggs Benedict topped with fried oysters at the bar with my husband (and no kids).

11 Mixing & Mingling Scenes from the Annual Holiday party at the Julia Morgan Ballroom.

About BOMA VIEWS Views is published by quarterly by BOMA San Francisco.

Clockwise from top right: Michelle Funkhouser and Liz Henderson; Lisa Rucks, Lawden Golchehreh, Raven Griffin, and Natasha Perstyn; party at the Julia Morgan Ballroom; Leigh Renard, Brooke Barnecut, Madeline Goff, David Starkey, Brooke Dowling, Deborah Cho, Caitlin Kilroy, Kristen Betts, and Mike Sanford; Stefanie Medious and Sarah MacIntyre; John Combs, Anne Hinz, Deborah Boyer, and Wes Powell.

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The Last Word: Marc Intermaggio Are Business Expansion & Personal Growth on Your 2014 Agenda? BOMA Can Help!

Okay, so maybe you’ve let fall by the wayside (or completely forgotten) some of those New Year’s resolutions you made. Perhaps they are worth revisiting right now, before the end of Q1 arrives.

What will you do to grow professionally this year? How will you attain greater business success? BOMA offers many effective ways for you to build your personal skills inventory, expand your connections, and enhance your company’s brand in the commercial real estate marketplace. Making choices right now about which steps to take down any of these paths can increase your chances for personal growth and professional success in 2014.

Build Your Skills. Our timely and topical education programs support efficient, effective property operations and profitability. Want to be more useful to your employer?

Enroll in one of our classes or seminars. This year we’re offering classes to sharpen your skills in the following critical areas: Budgeting & Accounting; Law and Risk Management; Asset Management; Real Estate Investment & Finance; and the Design, Operation and Maintenance of Building Systems.

A number of topical seminars will also take place, beginning with one on Critical Incident Recovery: How Risk Management Strategies Can Reduce Your Liability and Help You Resume Property Operations Faster. We’ll also address how to manage your Lease Escalations, as well as how property managers can plan their career choices should they wish to transition to asset management.

Whether you’re early in your career or a seasoned professional, there is always new knowledge to acquire and skills to sharpen. Let us help match your needs with BOMA’s program offerings.

Expand your Connections. BOMA provides you access to a dynamic network of local, state, national and even worldwide industry contacts —rich with knowledge and experience that supports your professional development as well as your company’s business objectives. Speak with us if you’re interested in tapping into this bountiful ocean of commercial real estate industry contacts. And above all, make plans to attend the BOMA California legislative meeting in Sacramento June 10 and 11, or the BOMA International convention and trade show in Orlando June 22–24. We’d be pleased to chat with you about your opportunities to connect with and learn from your industry peers.

Build your Company’s Brand. We can help your company expand its commercial property marketplace presence — locally and beyond. We invite you to speak with us about how we can connect you to the decision makers operating the buildings in which you work or seek to service. We’ll offer you an efficient and cost-effective way to target your existing and prospective clients. For example, you can promote your company with a “sponsored report” or a display ad in BOMA VIEWS whose print edition goes to more than 3,000 BOMA readers in the San Francisco Bay Area’s buildings community — with a digital edition that reaches even more prospective buyers. Or you can further demonstrate your support for BOMA by sponsoring some of our many activities. It pays off when your customers see how you are helping shoulder our many efforts that benefit commercial property professionals.

How will you grow your personal brand and business in 2014? Don’t overlook the opportunities that BOMA provides! Please give us a call. We’re ready to help.

Marc Intermaggio, CAE, is the Executive Vice President of BOMA San Francisco.