Ken Cleaveland
Government & Public Affairs

Political Challenges Abound for BOMA San Francisco in 2008: Contribute to the BOMA SF PAC

BOMA Partners with San Francisco Business Times on Earth Awards Edition

BOMA California Energy Advocacy Results in a Win for Tenants

Community Choice Aggregation – Just Say No!

Is Congestion Pricing Coming to San Francisco?

San Francisco Supervisor Carmen Chu Visits with BOMA

CA State Senate Candidate Joe Alioto Veronese Addresses BOMA

Upcoming Events of Interest


Direct all inquiries regarding
The BOMA San Francisco

Government and Public Affairs
Ken Cleaveland, CAE
415/362-2662 x11

February 1, 2008                                                         Volume 14, Number 1

This Issue of the BOMA-San Francisco Advocate Is Brought To You By:
Boston Properties

Political Challenges Abound for BOMA San Francisco in 2008: Contribute to the BOMA SF PAC!

2008 brings many political challenges for property owners in San Francisco, and potentially statewide. There are a number of races in the city's supervisor districts that will be "open seats" due to term limits, which will give the voters an opportunity to elect more moderate, practical voices to the city's top legislative body. There will be a number of local propositions aimed at raising taxes, potential bond measures to build affordable housing and rebuild/seismically upgrade the city's General Hospital. There is always the chance last minute measures may be placed on the ballot that would be bad for business and real estate. Here's how it looks at the moment:

SF Board of Supervisors Elections will occur in seven districts in 2008
The battle to elect moderate, business-friendly Supervisors to the San Francisco Board of Supervisors will occur in four districts where there will be open seats (no incumbent running for re-election). This is the first real chance since 2000 for common sense to make a come back at City Hall. The district supervisor races to watch:
District 1 (Richmond) – Jake McGoldrick is termed out. It is a moderate district which should elect a moderate rep.
District 3 (North Beach/Downtown/Nob/Russian/Telegraph Hill) – Supervisor Aaron Peskin is termed out. There is an excellent opportunity here for residents to elect a moderate Supervisor.
District 4 (Sunset/Parkside) Newly-appointed Supervisor Carmen Chu will be running to complete former Supervisor Ed Jew's term, which ends December 2009. She is a moderate voice. (See BOMA interview below.)
District 5 (Haight/Western Addition) - Incumbent Supervisor Ross Mirkarimi will likely only have token opposition, and will continue to be a leading voice for the city's "progressive left", along with Supervisor Chris Daly. (District 6)
District 7 (West Side/St. Francis Woods/West Portal) – Incumbent Supervisor Sean Elsbernd is the leading fiscal conservative on the Board, and is a moderate voice on the Board. He should easily win re-election.
District 9 (Outer Mission/Bernal Heights/Portola) – Supervisor Tom Ammiano is termed out. The district leans left, but you never know...the right kind of moderate candidate could be elected.
District 11 (Excelsior/Ocean Beach/Crocker Amazon) – Supervisor Gerardo Sandoval is termed out. This district represents middle class homeowners and should elect a more moderate voice as its next Supervisor.

San Francisco Ballot Measures to Expect (and there will be others we don't yet know about!)
1. Bond measures for low income housing and to rebuild SF General Hospital.
2. A doubling of the transfer tax on real estate sales exceeding $2 million.
3. A redefining of payroll tax to include monies distributed as dividends and/or bonuses in partnerships.
4. A new gross receipts tax that will hit real estate interests particularly hard.
5. A carbon tax that may attempt to offset some employers' payroll taxes but will end up costing those who generate carbon emissions (buildings) more money.
6. A parcel tax that would be dedicated to local public schools.
7. A measure re-directing $50 million from the UMB seismic upgrade bond fund to loans for solar installations on SF.
8. A measure approving Lennar Corporation's plan to re-build the Bayview/Hunter's Point shipyard with housing.

How You Can Help: Contribute to the BOMA SF PAC!
BOMA San Francisco's political action committee recently won a lawsuit against the City's limit on contributions to our Independent Expenditures PAC. Now is the time for Members to make a contribution of any amount to help us fight to return the Board of Supervisors to a more moderate, business-friendly status, and to protect our industry against unfair new taxes or assessments. Let's take San Francisco back from the anti-business, anti-property owner activists! Send your donation to: BOMA-SF-PAC, c/o Ken Cleaveland, BOMA San Francisco, 233 Sansome Street, 8th Floor, San Francisco, CA 94104. Please note: Contributions are not tax deductible but can be corporate or individual donations.

BOMA Partners with San Francisco Business Times on Earth Awards Edition
BOMA will again work with the San Francisco Business Times to produce an insert in their April 25, 2008 edition highlighting our industry's sustainability efforts, and profiling the winners of our association's second Earth Awards program. This program recognizes commercial buildings which have the most effective sustainable practices in place, and who are the most efficient in the use of the earth's natural resources. Criteria for the awards include energy efficiency, water conservation, renew, reuse, and recycling initiatives, toxics reduction, indoor air quality controls, promotion and use of public transportation, and the like. The special insert will also be available to BOMA members for advertising their products and services that forward sustainability and a "greener" environment. Articles are also welcome that fit in to our message of promoting the best sustainable practices in commercial office buildings.

The Earth Awards application is available on the BOMA SF website, and can be completed online at  There is no cost to enter. Deadline for submissions is February 29, 2008. The awards luncheon where winners are announced will be Monday, April 21, 2008, and will be held at the Hotel Nikko in downtown San Francisco.

BOMA California Energy Advocacy Results in a Win for Tenants
PG&E has issued 2008 rate schedules (effective this month) that will yield substantial energy cost reductions for the tenants of BOMA members and other commercial building owners. The new rates reflect the terms of a Settlement Agreement that was negotiated by BOMA and other Parties, and approved by the California Public Utilities Commission last fall. The final rates for 2008 also include end-of-year true ups for PG & E's actual revenue requirements. The new rates imply a total annual savings of about $19 million for Northern California BOMA Members and $36 million for the commercial office building sector. That comes out to an average savings of about 27.6 cents per square foot per year. Note that this rate design will remain in place until the next PG&E general rate case (GRC), which will probably be in 2010, so these annual savings should hold except for PG & E's annual revenue requirement true ups.

The average rate reduction, from one year ago, for all customers on the E 20 rate schedule will be about 8.5%. The reduction for all customers on the E 19 rate schedule will be about 7.1%. The tenants in commercial buildings will experience slightly higher savings because of relatively large reductions in demand charges that comprise a large portion of the commercial office building electric bills. Each building will have a slightly different level of savings, because of differing load shapes. BOMA members who wish to calculate the effects of the new rates for their buildings can download the E 19 and E 20 bill calculation spreadsheet programs, plug in their individual monthly load data, and produce estimated bills by click E19 and click E20. For charts showing the details of the new 2008 rate components relative to the March 2007 rates for schedules E19 and E20, click here. Note that the changes in energy charges are somewhat modest but the reductions in peak and partial peak demand charges are very significant. BOMA's main reason for intervening in this rate case was to push for a reduction in these non-coincident demand charges. If members have any questions, contact Bill Roberts, our Energy Consultant with Economic Sciences Corporation at 510-841-6869 or email him at

Community Choice Aggregation – Just Say No!
BOMA San Francisco's Board of Directors has approved a resolution opposing the proposed Community Choice Aggregation plan the City is attempting to put into place that would have the City buying all electric power for the city's businesses and residents in the near future. Our organization does not share the city's desire to gain greater control over local electric power service, and is not convinced it will reduce costs or increase reliability or renewable content of our electricity. BOMA is recommending that its members "opt out" of the city's plan to enroll all buildings, residences, and businesses in this plan. To do so, send a letter to the San Francisco Public Utilities Commission, attention SFPUC General Manager. To download a sample letter, click here. To obtain a copy of the BOMA resolution opposing Community Choice Aggregation, click here.

Is Congestion Pricing Coming to San Francisco?
The San Francisco Metropolitan Transportation Authority is currently conducting a study on whether to charge drivers of automobiles a daily fee to come into the city during the work week. They are pointing to London as the success story and the city for San Francisco to emulate. London drivers must pay a daily $16 to drive into the downtown area there. But wait. How successful has it been in London? A recent story in the London Sunday Times mentioned the fact that over $1.6 billion dollars has been collected in tolls since they instituted this congestion fee, but that almost half of the monies collected went to pay for the administration of the program! Moreover, drive time has not been reduced, and funds anticipated for mass transit have not been realized. To read the complete eye-opening article, click here.

San Francisco Supervisor Carmen Chu Visits with BOMA
Recently the newest member of the San Francisco Board of Supervisors, Carmen Chu, 29, met with our Government and Public Affairs Committee and PAC Board. Chu was appointed to the Board on September 25, 2007 by Mayor Gavin Newsom to replace Ed Jew, who was under investigation for several offenses, and has subsequently resigned. She represents the Sunset and Parkside areas of town (District 4). Chu grew up in Los Angeles. Her father was a small business person, operating a restaurant. His experience of being car-jacked during the LA "Rodney King" Riots propelled her into politics. Chu is a graduate of Occidental College and did post graduate studies at UC Berkeley. Chu has an interest and some expertise in finance and public power, and has worked as a budget analyst through three city budget cycles. Her top concerns for her district revolve around funding its infrastructure needs, its public safety issues, its public transportation needs, homelessness, public education, and the long term fiscal health of city government. The biggest current challenge at City Hall is the budget deficit, and that might worsen if the state's budget deficit is transferred in part down to the state's cities and counties. Chu does not favor raising local taxes because she believes a $6 billion city budget for 715,000 people is large enough, if properly managed. She does not support charging drivers to come into downtown San Francisco, and is wary of the city trying to expand its role into public power. Chu believes San Francisco should keep to its core responsibilities of providing good public safety, public transportation, clean streets, well-maintained parks and libraries, and basic services for the needy. 

CA State Senate Candidate Joe Alioto Veronese Addresses BOMA
Joe Veronese, candidate for District 3 State Senate, which covers 2/3 of San Francisco, all of Marin, and the southern half of Sonoma counties made his case for BOMA's support at a recent meeting of the BOMA SF PAC Board of Directors. He is running against Carole Migden (incumbent) and Assembly Member Mark Leno for this seat in the June, 2008, Democratic Primary. Whoever wins the primary is assured of winning the general election in November.

Veronese characterized himself as the "common sense" candidate, and both a family man, and business person. He also pointed out he is a property owner, both commercial and residential, and that he owns a winery in Sonoma. He is 35 years old, and the son of former Supervisor Angela Alioto, and the grandson of former SF Mayor Joseph Alioto. Veronese stated he "comes from a very different place than either of his competitors in this race." He is currently on the Police Commission (4 years) and has served as a police detective investigating food stamp fraud under former DA Terrance Hallinan. Veronese said he is the candidate for people who are "looking for a moderate to represent them in the state Senate."

His views on various issues include opposing any new tolls on Doyle Drive, supporting the widening of Interstate 101 at the so-called Novato Narrows, and supporting the construction of a light rail system for the North Bay. He opposes raising taxes but would invest in the economy with incentives that increase employment and grow businesses. He would support a $1 billion bond to purchase solar panels for every home in the state to reduce energy costs and global warming, and pattern it after the successful Stem Cell Bond measure. Under questioning, Veronese said he was not inclined to support any sort of split roll property tax plan. He supports implementation of some type of catastrophic health insurance coverage for all Californians, but also believes this should be a national priority. To learn more about Veronese's campaign, go to:

Upcoming Events of Interest

February 6th - BOMA Meets with Michael Cohen, SF Director of Economic and Workforce Development - 12 noon @ BOMA SF Office.
The association's Government and Public Affairs Committee will hold its February meeting on Wednesday, 2/6, at noon which will feature Michael Cohen, San Francisco's new Economic Director, as speaker. Cohen replaced Jesse Blout, who took a job with Goldman Sachs. Mr. Cohen has been engaged in the city's economic development activities for many years. He will discuss the development of Treasure Island, the Hunters Point Naval Shipyard, the Transbay Terminal, the reuse of the Old Mint, and other possible developments such as the one at Candlestick Point for a new football stadium. Members only. RSVP to Ken Cleaveland directly at

February 21st – 2nd Annual Texas Hold'em Tournament - Presidio Golf Course Clubhouse    
Don't miss the Second Annual BOMA Texas Hold'em community poker card tournament. It will be held at the Presidio Golf Course Clubhouse, 300 Finley Road (off Arguello) with registration starting at 5:30 p.m. and the Tournament commencing at 6:15 p.m. $65 in advance/$85 at the door. First 120 to sign up guaranteed a spot in the tourney. $500 will be donated to the winner's favorite charity. Sponsorships available: contact Mark Kelly, Event Chair, with Able Services at 415-706-6036 or via email at

February 28th – Crab Feast Fundraiser for SF Supervisor Sean Elsbernd – 6 p.m. – Irish Cultural Center
San Francisco Supervisor Sean Elsbernd is running for re-election, and could use your help! Elsbernd has been the fiscal watchdog on the current Board of Supervisors, and has consistently pushed for more accountability from city government departments on how they spend taxpayers' money. He is kicking off his campaign with a crab feast at the Irish Cultural Center (2700 45th Avenue) on Thursday, February 28, 2008, beginning with a VIP cocktail reception at 6 p.m., General Reception and Crab Feast starting at 7 p.m. and continuing until 11 p.m. Live entertainment will be provided for dancing by the Macy Blackman and the Mighty Fines band with a special guest appearance of Warren Hellman and the Wranglers. Sponsorships are available. Tickets are $100. For more details, contact Nichelle Lyons at 415-775-0698 or by email at

February 29th – BOMA Lunch with CA Senator Leland Yee – 12 noon @ BOMA SF Office
A special luncheon has been arranged with State Senator Leland Yee for Friday, February 29th, at noon, at the BOMA office. Come here what has been happening at the state legislature and what Senator Yee has made his top issues. Attendance is limited. Members only. Lunch is provided. RSVP to Ken Cleaveland at


Boston Properties
is a self-administered and self-managed real estate investment trust, and one of the largest owners, managers, and developers of first-class office properties in the United States, with a significant presence in four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997 under the symbol BXP.

The Company acquires, develops, and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco, and Princeton, New Jersey. Its property portfolio is comprised primarily of first-class office space and also includes one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants' needs. The Company has a superior track record in developing Class-A, Central Business District office buildings, suburban office centers and build-to-suit projects for the U.S. Government and a diverse array of high-credit tenants.