BUDGET STALEMATE CONTINUES TO CONTINUE

Six weeks into the new fiscal year and the budget that runs the governmental infrastructure for the world’s sixth largest economy still hasn’t been passed. There hasn’t even been an initial vote. Legislators continue to plug away at the thousands of bills they have introduced, but arguably their most important job, keeping the state fiscally healthy, atrophies.
 

INDUSTRY SUPPORTED GREEN BUILDING MEASURE MOVES

SB 1473 (Calderon; D - Montebello) strongly supported by the business community has passed both houses of the legislature and is one step away from the Governor’s desk.

The bill clarifies that the Building Standards Commission is the primary state agency responsible for proposing and adopting non-residential Green Building Codes. Although the BSC has traditionally worked on commercial building codes, there has been pressure in recent years from the environmental community to shift that authority to the Environmental Protection Agency and/or the Integrated Waste Management Board.

Lastly, in order to generate the necessary resources to perform these tasks, a special fund is created for use by the BSC with the revenue being generated via a permit valuation fee of $4 for every $100,000 dollars for residential and commercial construction permits. This fee has a direct nexus to our projects and will provide clarity to businesses and building officials to the rush of green building codes that are rapidly being adopted.
 

GOVERNOR AND SENATOR SUPPORT WATER BOND; FEINSTEIN LOBBIES SACRAMENTO

 As you are aware, Governor Schwarzenegger and Senator Dianne Feinstein proposed a compromise plan to the Legislature to update California's water system by increasing storage, improving conveyance, protecting the Delta’s ecosystem, and promote greater water conservation. Senator Feinstein came to Sacramento to lobby her Democratic colleagues in an effort to move the measure along. No action has been taken yet by the Legislature. CBPA applauds the actions of the Governor and the Senator and fully supports this water plan and calls on the Legislature to put such a measure on the ballot.

California’s growing population, drought, federal court restrictions on water operations, and global warming all present critical challenges to our water infrastructure, environment and economy. While there is little disagreement that California needs a comprehensive water plan, there has yet to be a consensus on exactly how to achieve it. This bipartisan, $9.3 billion bond proposal is offered as a compromise that puts California on a path to restore water ecosystems, provide new water storage, and boost conservation efforts that can ensure clean, reliable water supplies for California. The need for a comprehensive water plan is immediate and the time to act is now.
 

CALIFORNIA HAS MORE THAN ONE BUDGET MESS

Another veteran budget observer, columnist Dan Walters, has some thoughts about the budget mess. “If you've been paying attention to California's chronic budget problems, you know that they fundamentally stem from a disastrous decision in 2000 by then-Gov. Gray Davis and legislators of both parties to squander a one-time windfall of revenue on permanent spending increases and tax cuts that could not be sustained over the long haul. It was, however, just one of three similarly irresponsible decisions during Davis' governorship, which was cut short by his recall in 2003.” Click here to read the full column.
 

WIGGINS’ WIG-OUT

In a possible sign that nerves are raw in the Capitol as the budget stand-off continues to drag-out, a California State Legislator, Pat Wiggins (D-Santa Rosa) states to Pastor Robert Jones, who was in the Capitol to ask that impact on poor communities be considered as greenhouse gas regulations are drafted, “Excuse me, but I think your arguments are bulls**t.” Click here to see the video on YouTube. Although you never actually see Wiggins in the video, you do get to see an excellent “save” by her colleague Senator Christine Kehoe (D-San Diego), who never skips a beat as she bails out her colleague for making stunningly a rude comment. Well, at least she says “excuse me.”
 

IS YOUR BUILDING OPTIMIZING ITS INCOME?

It’s budget season. Are your operating expenses too high? Is your building optimizing its income? What's the average cost for utilities, cleaning, repairs and maintenance for buildings of the same class and size? And how does your building compare to those?

BOMA’s 2008 Experience Exchange Report (EER) can help you evaluate your operating expenses, compile accurate budgets and benchmark against similar buildings. With 8 income and 12 expense line item categories, and 65 detailed subcategories for US and Canadian cities, the EER is the best source for building your budget.
 

TODAY’S POLITICAL CHUCKLE

Finally, in news that can only be categorized as hilariously ironic, an icon of the anti-war movement, Cindy Sheehan, has qualified to challenge House Speaker Nancy Pelosi for her seat in Congress. Reports that conservative PACs are lining up to support Sheehan’s candidacy are as yet unconfirmed, but we will follow this one closely…
 

2008 INDUSTRY AWARDS ANNOUNCED – GALA IN OCTOBER

Winners of the 2008 CBPA Industry Awards have been announced. Industry Awards are given to leaders in the commercial, industrial, and retail real estate industry that have significantly contributed to the advancement of the profession.

Champion of the Industry Award Honorees
Retail: Brian Smith, Regency Centers
Industrial: John Hagestad, Sares-Regis Group
Office: Steve Soboroff, Playa Vista

Ernie Hahn Memorial Award Honoree
Building Owners and Managers Association California (BOMA California)

John Caldecott Award Honoree
Kim Winston, Starbucks

The Industry Awards Dinner is scheduled for October 23, 2008 at The Island Hotel in Newport Beach. This event is not to be missed as it is a chance to recognize the unwavering leadership of individuals and companies dedicated to our industry. Click here for more information about the honorees and for sponsorship information.
 

BOMA CALIFORNIA 2008 CALENDAR

OCTOBER 23 —
COMMERCIAL/INDUSTRIAL/RETAIL REAL ESTATE INDUSTRY AWARDS DINNER
The Island Hotel (formerly the Four Seasons), Newport Beach, CA
5:30 p.m. – 9:00 p.m.

OCTOBER 24 —
BOMA CALIFORNIA BOARD MEETING & ELECTION OF 2009 OFFICERS
Newport Beach (The Irvine Company)
10:00 a.m. 3:00 p.m.