Thursday, December 1, 2016

FEEDBACK DUE By December 2, 2016: Bay Area Air Quality Management District New Draft Rule 11-18 to Reduce Health Risks


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BOMA San Francisco Members:


Click here review a presentation offered by the Bay Area Air Quality Management District.

The draft rule proposes to ensure that emissions of Toxic Air Contaminants (TACs) from existing facilities do not pose an unacceptable health risk to people living and working nearby. Air District Staff estimates that hundreds of facilities throughout the Bay Area could be impacted by this new rule.

The Air District will continue to accept public comment until Friday, December 2, 2016. To submit public comment electronically, contact Victor Douglas at vdouglas@baaqmd.gov.

BACKGROUND

Rule 11-18 would apply to all facilities whose emissions of toxic air contaminants may result in a significant risk to nearby residents and workers – this would include petroleum refineries. The purpose of Rule 11-18 is to set caps on risk from toxic air contaminants for those facilities causing the highest health impacts across the Bay Area and to require these facilities to reduce that health risk.

Petroleum refineries are significant sources of harmful pollutants on both the global scale (greenhouse gases) and local scale (toxic air contaminants and criteria pollutants). Many Bay Area residents have expressed concern about the impact of this pollution on the environment and public health. Though refinery emissions have declined over time, it is possible that as refinery operations change in the future, emissions of these pollutants could increase. In response to these concerns, the Board of Directors of the Air District has directed staff to bring forward two draft rules for the Board’s consideration, one that reflects policy recommended by some environmental advocacy organizations, and an approach recommended by Air District staff. Communities for a Better Environment (CBE) and several associated organizations have recommended that the Air District adopt new Regulation 12, Rule 16: Petroleum Refining FacilityWide Emissions Limits (Rule 12-16). This rule would set numeric limits on specific refinery emissions. Rule 12-16 would apply to the Bay Area’s five petroleum refineries and three facilities associated with the refineries. The staff of the Air District has developed a different approach that directly addresses concerns about community health risks. 

The Bay Area Air Quality Management District staff recommendation is that the Air District adopt a new Page 2 Regulation 11, Rule 18 (Rule 11-18): Reduction of Risk from Air Toxic Emissions at Existing Facilities. 


FEEDBACK REQUESTED BY December 5, 2016: San Francisco Legislation Requiring Choice in Internet/Communication Providers for Tenants of Commercial and Residential Properties




You may have read about a proposal from Supervisor Mark Farrell that would allow internet access from any communications service provider for any tenant that asks for it – in both commercial and residential buildings. Thanks to the quick work and expertise of Manuel Fishman and Marty Smith, your Government Affairs Committee Chair and Vice Chair, the measure - while not addressing all of the industry's issues - is still workable for BOMA San Francisco members.

Your feedback is requested no later than December 5, 2016. 

The San Francisco Board of Supervisors will vote on the measure on December 6, 2016.


It has been moving quickly through the legislative process at San Francisco's City Hall and BOMA members thank our San Francisco business community partners for their input. We also thank Supervisor Farrell for allowing our members the opportunity to suggest practical changes to the legislation that allows the tenant to choose their internet/communications service provider AND protects the commercial property owners ability to feasibly accommodate the request.

In fact, our BOMA members already do this. The commercial real estate industry is a tenant driven business and the relationship between a building owner/manager and their tenants is paramount.

Commercial building owners understand that tenants should have the ability to ask for communications access and, like most agreements between a building owner and a tenant, they are considered unless the building owner’s property cannot safely and efficiently accommodate the request. In other words, one of the major considerations by the building owner is if the request is feasible based on the real-world constraints of the built environment.

Please send your comments to johnb@boma.com and kenc@boma.com

Wednesday, November 16, 2016

YOUR IMMEDIATE FEEDBACK IS REQUIRED: Bay Area Air Quality Management District Rule 2-5 - Diesel Generator Retrofit Requirement





We’ve been alerted to a draft amendment to BAAQMD rule 2-5 that may have an impact on the real estate industry.

The changes may affect the commercial/residential building industry as the rule, if implemented, would apply to all diesel generators and retrofitting costs to comply may run as high at $200,000 per unit. Please ask that your chief engineer – or appropriate staff member – to review these documents and let us know if they have any comments at johnb@boma.com and kenc@boma.com

Monday, November 7, 2016

You're Invited: San Francisco Department of the Environment's Electric Vehicle Workplace Charging Workshop





Did you know that the Bay Area has the most electric vehicle sales of any region in the country?

One of the key ways to support the growth of plug-in electric vehicles (PEVs) is by providing EV charging. If you are a building owner, employer or employee interested in developing a residential/workplace charging program at your facility, please join us for a free workshop organized by the City of San Francisco's Department of the Environment on November 9th.

Who: EV Charging in Your Building
When: Wednesday, November 9th, 9am·llpm
Where: SF Department of the Environment, Muir Room
1455 Market St. 12th Floor
San Francisco, CA 94103

Google Map >

Register & Learn More

Advanced registration is required as space is limited. Please contact Zac Thompson (zachary.l.thompson@sfgov.org) or RSVP online. Please bring a photo ID to get into the building.

Who should attend?

Property Owners, Building Managers, Sustainability Managers, Facilities Managers, Transportation Planners, and others who are interested in learning more about providing PEV charging stations for their organization's employees and tenants.

Why should I attend?

  • Get a general introduction to PEVs and charging infrastructure
  • Find out about resources, including financial incentives available to building owners, employers and employees
  • Learn how EV charging can serve as a valuable tenant/employee incentive, complement sustainability efforts, and signal leadership
  • Hear from PG&E about charging rates, and from an electrician with EV charger installation experience
  • Learn about best practices for residential/workplace charging

Who are the speakers?

  • Spencer Crim (ChargePoint): EV Charging 101
  • Adrian Rosalie (REJ Electric): EV Charger Installation
  • Cal Silcox (PG&E): Time of Use Rates for EV Charging
  • Jason Bradley (CalCAP): EV Charging Station Financing Program

Thursday, November 3, 2016

BOMA California Advocacy Update: 2016 Legislative Report




BOMA California members and staff work diligently every year to protect the industry from legislation that might adversely affect our members' properties.

Indeed, the team at BOMA California have produced their 2016 legislative report in an all new format. It's their hope that the communication is easier to navigate and that the plethora the measures that were worked on are immediately understood: Green means good; red means not so good.  Let us know if you have any thoughts on this by emailing johnb@boma.com and kenc@boma.com.

Unlike in years past, they are not including all 1000 bills they monitored. Rather, they are summing up the session in a report that reflects those bills that were the higher priority for the business community in general and the commercial real estate industry specifically.

CLICK HERE FOR THE FINAL REPORT FROM BOMA CALIFORNIA.

BOMA International Advocacy Update: Presidential Debate Puts Carried Interest in Spotlight




The second U.S. presidential debate brought the issue of carried interest back onto the national stage. Republican presidential candidate Donald Trump was asked what tax provisions he would alter and he replied that he would “get rid of carried interest.” Democratic presidential candidate Hillary Clinton reiterated that she, too, would eliminate the provision.

Carried interest is the often vilified—and more often misunderstood—tax provision that treats gains from a real estate investment general partner as capital gains rather than ordinary income, allowing them to be taxed at a lower rate. The real estate industry uses carried interest to spur development. Taxing carried interest at a higher rate would mean general partners would demand a higher flat fee from their investors, often institutional investors, and fewer deals would get done. BOMA International will continue to follow this issue closely and ensure that the concerns of the commercial real estate industry are heard in Congress.

For more information on carried interest, visit BOMA’s Industry Issues.

BOMA San Francisco Members Meet with California State Senator Mark Leno






BOMA San Francisco Government Affairs Committee members met with California State Senator Mark Leno (D- San Francisco) recently to thank him for his many years of public service. Here are the highlights of the meeting:
  • Our members communicated BOMA’s purpose and VALUE to the City and County of San Francisco and the State of California. We also spoke about the CREATE Workforce Initiative, the BOMA Foundation, and our partnership with San Francisco State University.
  • Three measures sponsored by Senator Leno were also discussed:
    • SB-1460 Community colleges: funding: San Francisco Community College District (HELD in Senate Appropriations Committee)
      • Summary: This bill provides that the San Francisco Community College District (SFCCD) is entitled, for three years beginning in the 2017-18 fiscal year, to restoration of any reduction in apportionment revenue due to decreases in full-time equivalent students (FTES) up to the level of FTES funded in the 2012-13 fiscal year.
    • SB-1413 School districts: employee housing. (SIGNED BY THE GOVERNOR BROWN)
      • This bill establishes the Teacher Housing Act of 2016 and provides that a school district may establish and implement programs that address the housing needs of teachers and school district employees who face challenges in securing affordable housing.
    • SB-1288 Elections: local voting methods. (VETOED BY GOVERNOR BROWN)
      • Would have allowed a number of California cities, counties and school districts to switch to the system that asks voters to rank their top candidate preferences like San Francisco.
It was a pleasure to work with Senator Leno in San Francisco and Sacramento and we wish him well with his future endeavors! 

Bay Area Air Quality Management District: Workshop on New Draft Rule to Reduce Health Risks





The Bay Area Air Quality Management District (BAAQMD) invites BOMA members to participate in a workshop to learn about their latest effort to reduce potential health risks from toxic air emissions at existing Bay Area facilities.

At the workshop, you can view displays, hear about the proposed rule, speak with Air District staff, ask questions, and offer comments on proposed Rule 11-18. The draft rule proposes to ensure that emissions of Toxic Air Contaminants (TACs) from existing facilities do not pose an unacceptable health risk to people living and working nearby. Air District Staff estimates that hundreds of facilities throughout the Bay Area could be impacted by this new rule.

November 14, 2016 
5:30 p.m. – 8:00 p.m. 
Bay Area Metro Center, 
Ohlone Conference Room 
375 Beale Street
San Francisco

The Air District will continue to accept public comment until Friday, December 2, 2016. To submit public comment electronically, contact Victor Douglas at vdouglas@baaqmd.gov.



Tuesday, November 1, 2016

Benchmark. Compete. Gain Recognition! The BOMA Bay Area Innovative EARTH Award Contest - Deadline is December 16th




Click here to register your property for the Innovative EARTH Awards contest! - It's simple and quick! The deadline is December 16th.

BOMA San Francisco and BOMA Oakland East Bay will recognize winners of the Innovative EARTH Award along with TOBY recipients at the BOMA Awards Gala on February 9, 2017.

The Innovative EARTH Award is presented to Bay Area building management and engineer teams that have implemented a sustainability-related initiative in 2016 that best captures the spirit of creativity and cutting-edge products. Any and all innovations are welcome to apply, from high-cost capital projects using the most advanced technology to no-cost tenant engagement campaigns.

Any and all questions regarding the Innovative EARTH Award contest can be directed to Zachary Brown with CBRE at zachary.brown@cbre.com.

UPDATE: San Francisco 2016 Gross Receipts Tax and Payroll Expense Tax - Important Information for BOMA Members




UPDATE - September 29, 2016

The San Francisco Controller recently announced the 2016 Payroll Expense Tax rate of 0.829% (0.00829) as provided in Business and Tax Regulations Code section 903.1. The Gross Receipts Tax Rate Adjustment Factor is 50% per Code Section 959. They have updated our website with the information here: http://sftreasurer.org/2016-tax-rates

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Original Post -  January 20, 2016

Please take a moment to review this important message regarding San Francisco's Gross Receipts Tax and Payroll Expense Tax.

2015 Return is Live - Due by February 29, 2016

The 2015 Gross Receipts Tax and Payroll Expense Tax Year Online Return is now live at https://etaxstatement.sfgov.org/GrossReceipts2015.

To enter the Online Return you will need:
  • Seven digit Business Account Number
  • Last four digits of your business tax identification number (Federal EIN or SSN
  • Eight digit alphanumeric Online PIN (same as prior year)
Please note the following:
  • Payroll Expense Tax and Gross Receipts Tax returns are due by February 29, 2016. 
  • Online forms must therefore be transmitted before midnight on February 29, 2016. 
  • Payments must be received or postmarked on or before February 29, 2016. 
  • Penalties, interest, and fees will be imposed after February 29, 2016. 
  • Your total tax obligation will be summarized and displayed at the end of the filing.
  • You may review and update your business information through Account Update prior to starting this filing.
The San Francisco Office of the Treasurer and Tax Collector will send out filing notices the week of January 11 that will include the Business Account Number, Online PIN, and other information to assist BOMA members and other taxpayers with filing their Return.

In response to taxpayer feedback, the Office of the Treasurer has added additional help features, including instructions embedded on each page, as well as links to technical advisories. We have also simplified the process to access the residential landlord filing and the Online EZ filing for small businesses. They believe these changes will provide a more streamlined filing experience for taxpayers.

Free Seminar - Gross Receipts Tax Seminar

Thursday, February 11
3 PM- 4:30 PM
SF Public Library
100 Larkin St,
San Francisco, CA
Koret Auditorium

The seminar will focus on the online form, minor changes that have been made to the form, and the ease of use and access.


San Francisco Business Tax Reform Annual Report 2015


Key Information 
  • Two of the largest sectors in the city, Professional and Financial Services, along with Real Estate, paid nearly 50% of all gross receipts taxes in 2014. 
  • Accordingly, since the gross receipts tax and business registration fee collections were smaller than expected, the payroll expense tax rate for 2015 will be larger than the baseline: 1.162% as opposed to 1.125%: a difference of 4%.
    • Given that small variance, and the uncertainty regarding the gross receipts tax based on only one year of data, in our opinion it is too soon to project if the payroll expense tax will be fully phased-out by 2018
  • Audits and other compliance efforts in the coming years will provide more insight into revenue trends seen with the initial filing data.
Please click here to review the report.
  • In November, 2012, San Francisco voters approved Proposition E, which imposed a new gross receipts tax on businesses, began the process of replacing the City's payroll expense tax, and raised and restructured the City's business registration fee. 
  • The gross receipts tax is designed to phase in, with gradually rising rates, over a 5 year period ending in 2018. Based on the amount of gross receipts tax collections each year, the payroll expense tax rate in the subsequent year is reduced, through a formula, to ensure the two taxes together are revenue-neutral to the City. 
  • In August, 2015, based on the results of the 2014 filing, the Controller's Office calculated the payroll expense tax rate for 2015 to be 1.162%, down from 1.350% in 2014. 
  • Proposition E also requires the City Controller, Chief Economist, and Treasurer to annually report on the fiscal and economic impacts of the new tax system, how these compare to expectations, and any implementation challenges and recommendations. 
  • This report for 2015 is the first of these annual joint reports.

Apture