The Burlingame Voice

Local real estate update - The Ups & Downs

Two tidbits of B'game real estate news came in today from Zumper and the County assessor's office.  First the Zumper rental update shows B'game in the middle of the pack at $2,300 for a one-bedroom--up 1.82% year-over-year.  Two-bedrooms were a bit of a surprise with average rent off 11.6% at $2,830.  That's the only noticeable decline of all 20 cities surveyed.  Not sure what is going on, but the wave of For Rent signs on El Camino has subsided a bit yet there are still many available.  It's a good thing we don't have rent control.

On the assessed property value side, the DJ is reporting

San Mateo County’s property assessment roll increased year over year by $22.2 billion, or 8.34%, to a record high of over $288 billion in assessed value, San Mateo County Assessor Mark Church announced Tuesday.  San Carlos had an increase of 12.64%, South San Francisco was up 12.53%, Burlingame saw a hike of 10.77%, Millbrae increased 9.43% and East Palo Alto was up 9.29%.

The property tax revenue generated is approximately 1% of the annual property assessment roll and this year will increase to $2.88 billion. Approximately 45% of the revenue will go to schools within the county, 25% to the county, 18% to cities, 10% to special districts and 2% to former redevelopment agencies.

One factor in the growth of the San Mateo County secured roll is new commercial development. In all, 64.6 million square feet of new construction are expected to be completed in the county over the next six to eight years. A total of 9.12 million square feet are under construction, 13.9 million square feet have planning approval, and 41.6 million square feet are under review. Approximately 17 million square feet of new construction have been completed in the last five years, according to the Assessor’s Office.

That puts numbers to our collective amnesia about the drought.  And who knows, a lot of this new real estate may be underwater as John Horgan notes in his column:

According to Dave Pine, chair of the OneShoreline Board of Directors and a member of the county’s Board of Supervisors, projects to counter climate change along the shore could take decades to finish.  And, even then, they might not be enough to ward off the worst aspects of what could be coming. “This will take generations,” he predicted.  To that end, OneShoreline and the county are examining the need for an ultralong-term parcel tax to help to finance the myriad construction efforts under discussion.

You knew where that was headed, right?

Minimum Wage: San Mateo backpedals hard

There is plenty of herd mentality in city councils up and down the Peninsula as the hue and cry to "Do Something" drowns out common sense.  The herd mentality can trample on all sorts of issues.  Think back about two years when this happened

On September 21, 2020, the Burlingame City Council adopted an ordinance to establish a minimum wage of $15.00 per hour for all Burlingame businesses beginning January 1, 2021.  On January 1, 2022 and every year thereafter, the minimum wage will be adjusted based on Consumer Price Index (CPI) percentage increases. A negative CPI will not lower the minimum wage. There are no exceptions for tipped employees.

That has led B'game to a planned January 1, 2023 minimum wage of $15.60+ 2022 CPI.  We won't know the final CPI kicker for another 6 months, but figure it will be 7+%.  Now San Mateo is preemptively backpedaling hard on their formula as noted in the DJ

To help small businesses coming out of the pandemic struggling with rising costs, San Mateo’s City Council will cap its current minimum wage amid rising inflation.  At its June 20 meeting, a council majority recommended setting a Consumer Price Index cap at 3.5% for its minimum wage.  The current minimum wage is $16.20 an hour. The council cited the need to help struggling businesses stay afloat, guard against inflation and provide long-term budget stability.  Cities use CPI because it is predictable for employers and workers and keeps pace with the rising cost of living.

Someone should tell Janet Yellen about the CPI's predictability.  Here is the herd mentality on full display in San Mateo

Mayor Rick Bonilla disagreed with the council majority on a 3.5% cap, calling it too low and suggesting higher rates of around 5%. Bonilla noted minimum wage workers are most affected by a CPI cap and have the most challenging time.  “The businesses will take care of themselves. The workers don’t have any other way. There’s nobody else to help them.” Bonilla said. “It’s us. If we don’t, nobody else will.”

Translation:  I get to pick the winners and losers in my city and consequences be damned.  San Mateo's website does not mention if Bonilla has ever signed the front of a paycheck.

Here's the math on a 7% jump in B'game.  $16.70/hr - no ifs, ands, or buts.  Happy Independence Day.

Steelhead goes vegan with a new patio

Some developments in Buildingame are better than others.  I'm not a big vegan - not opposed to it, I just like a little meat or fish with my greens - but I like the looks of the new back patio that is being added to the new vegan restaurant going into the old Steelhead brewery space.  You can just see the steel framing for the covered patio going in against the wall on the right.  That is a nice location looking at the sunset on an active block with several restaurants and an excellent wine bar.  Dine B'game.

Lessons from Stanford: Get a Generator

As Santayana is credited with saying “Those who cannot remember the past are condemned to repeat it.”   So let's learn from Stanford's "100% Green energy" experiment and the impact the nearby Emerald Hills fire has had on the campus.  With new construction happening all over Buildingame that must be all-electric because we have a "reach code", Santayana is in play here.  The bottom line is many B'gamers will be reaching for back-up generators.  The Chronicle is chronicling the mess down on the Farm:

In normal times, Stanford powers its campus with 100% renewable energy — a milestone it achieved this year. Most of it is solar power.  But only a small portion of the solar — less than 10%, according to Stanford civil and environmental engineering Professor Mark Jacobson — is on campus, on building roofs. The rest comes from two massive solar plants in Kern and Kings counties.  Because the power is not produced right on campus, Stanford relies on the state power grid to transport the electricity.

Stanford has been able to turn on some power. It’s using a few hundred diesel generators for key services, Jacobson said.

Wow.  I bet every Home Depot in the Bay Area is sold out of Hondas and Generacs.  That has to be really good for the environment, but there's more

Fixing a transmission line is “delicate work,” noted Michael Wara, an energy expert with Stanford’s Woods Institute for the Environment. “The standards are very precise for how things have to be done, so it takes time.”  Wara said he would have been even more concerned had damage to the PG&E substation on the edge of the fire occurred, since substation parts can be hard to replace.

Translation:  If a substation is badly damaged, expect it to be down for weeks to months.  But how will we get the horse back in front of the cart?

Wara said that the era of wildfires shows the importance of new thinking about the grid — especially how to get power to somewhere via multiple routes, and also self-sufficiency, though that can be expensive.  Jacobson said that the prolonged outage shows the need for more batteries to store power — and microgrids that can stay powered using the batteries when the main grid is not functioning.

This week Elon Musk was blunt about Tesla's battery problems as they transition from the 2170 lithium-ion battery cells to the new 4680 cells and different packaging.  That is with billions of dollars per month on the line, so don't expect the less-in-demand microgrid batteries to be fast-tracked through design, manufacture, deployment to utilities and finally energized.  I figure we are on at least a ten-year forced march through unreliable grid performance; if PG&E doesn't go bankrupt first.  But at least the Stanford students got a stipend

“Emergency Funds available! Resident students who have been impacted by the power outage may apply for support,” a tweet from Stanford’s vice provost for graduate education said. “$100 stipends will be provided to help with expenses related to food spoilage and eating out.”

Who will issue the B'gamers' stipends?  Those of us with grandfathered gas ranges and barbeques can cook the meat and seafood before it spoils.  C'mon over.

7/3  Update:  Who'd a thunk it?  The Examiner accepted an advertisement for a stinky, polluting, global warming generator.  You get a 7 year warranty by which time they will be illegal.

Worrying About Wildfire (Up the Hill)

Yesterday was the longest day of the year and it was especially long if you lived in the Emerald Hills section of Redwood City or the surrounding parts of Woodside.  In addition to the County text alert, I got a couple of texts from friends who were under evacuation orders that didn't last too long, but according to the DJ piece, the fire was not contained last night:

The seven-alarm Edgewood Fire in the hills of San Mateo County is at 25 acres and was not contained as of Tuesday evening, according to a spokesperson for Cal Fire.  There was one injury to a firefighter and no structures were damaged. A Pacific Gas and Electric substation was threatened and had units on it to ensure fire stayed away from it, Cal Fire CZU Deputy Chief Jonathan Cox said.  Large swaths of San Mateo County were out of power due to a downed PG&E transmission line, the utility said.

I've been worrying about this for sometime as I learn more about woodland management from my experience in Tahoe.  As a member of an HOA in Tahoe, we have put a good amount of time, effort and money into carving out a buffer zone.  Then I drive up Chateau Dr. or Black Mountain Rd in H'borough and I wonder what the Town of H'Borough is doing about all that fuel laying around on the ground.  It's pretty much everywhere you look.  Are we just one lightning strike or foolish act (or crazy arsonist) away from a real problem here "down the hill"?  It sure feels like it.

Download Emerald Hills fire_062122

This is a bit of video from the television coverage of the fire last night.  We will see if the link works.

The "Build our way to affordability" Fantasy

The City makes certain announcements on NextDoor and then responds to some of the comments people add.  I don't know who writes the responses or how they are vetted by other City staff or even if they are vetted.  It's probably time to find out though.  In response to the announcement about Stage 2 water restrictions that we noted here, the comments were very pointed.  People jabbed at overdevelopment leading to crazy traffic, water restrictions and a lack of respect for the people who "worked our nails to the bone" to afford to live here.  The official city response?

These are good points. Our city is in a state with cyclical droughts so once one drought cycle ends the next one is just around the corner. At the same time, California has a housing shortage and state laws require local governments to adequately plan to meet existing and projected housing needs. If housing development were to stop, not only would this be against state mandates, but it would make our city unaffordable in the long-term. We have heard from residents and businesses that they are concerned about their family members, co-workers, and neighbors who can no longer afford to live in the community. We also hear that local businesses, schools, and service providers are struggling to hire and retain people. Building more affordable housing is a solution to these challenges that may be affecting your neighbor down the street. Additionally, while our population has increased steadily our water consumption is lower now than it was ten years ago which shows that conservation and innovations in water efficiency works. For the data, see our 2020 Urban Water Management Plan available at www.burlingame.org/water.

That answer feels tone-deaf to me.  First, it's non-responsive to the water question and raised the additional issue of how much more water we can squeeze from the stone after what has already been done in the last ten years.  The Law of Diminishing Returns is in play and there are consequences to the flora and fauna in town.  Second, the state mandates that drive the building craze have not been vetted properly according to the state auditor or tested in court.  But most disturbing is this fantasy that we can outbuild the global demand for living in the Bay Area, on the mid-Peninsula and especially in Burlingame!  It's a dangerous fantasy and the disregard for the quality of life for those who are already here after "working their nails to the bone" is palpable.  Has the City heard from those residents and businesses as well?

Rec Center is Up and Running

Last night was the preview opening for donors who sponsored various parts of the new building and its furnishings.  I'll leave the critique of the architecture for another day since this was a great event with a lot of civic pride and gratitude for something getting done in town under supply chain and labor duress too.  The final cost was not mentioned, but that will eventually be known and compared to the $58.3M budget.

Mayor Ricardo Ortiz did the introduction and turned the new stage over to Donna Colson who has done a lot of the work on the project since the very beginning--along with Ann O'Brien and Cathy Baylock (back in the day, about 12 years ago).  Donna had a long list of people to thank and a reminder that there are still some choice sponsorship opportunities to be had.  Here she is on the two-way stage (the doors open fully so the audience can be on either side).  I snapped the green roof and the Elm room upstairs to give you a feel for the lovely design aesthetic.

There is a lot more to see so head on over.  It's a winner.

 

Water restrictions move to Stage 2

Here's the latest addition to the I Told You So file.  B'game is joining the movement to Stage 2 water restrictions while simultaneously approving ever more new construction--residential and commercial.  The DJ reports that

The City Council adopted the restrictions following a call from state water regulators for local suppliers to enact plans preparing for impending water shortages.  The rules, effective June 10, prohibit “residential and commercial landscapes” from being watered more than two days per week, and between 8 a.m. and 6 p.m. Washing vehicles is also banned, except for with recycled water.

I'm not sure where you are going to get "recycled water" with enough pressure behind it to actually wash a car, but good luck.  Here's the big red flag for future restrictions

Meanwhile, Hetch Hetchy, the reservoir that supplies water to 2.7 million people in San Francisco, Santa Clara, Alameda and San Mateo counties, is expected to be full heading into the dry season next year despite below-average snowpack levels, according to the San Francisco Public Utilities Commission, the agency that owns and operates the system. The question is how much of the water will be available, as negotiations continue that could partially divert it to ecosystems and fisheries in the Bay-Delta, among other uses.

Burlingame Public Works Director Syed Murtuza noted “There will be a lot of staff time dedicated to this effort to conduct inspection, do outreach and respond to complaints.”

It might be good to come up with an answer to the question "Why are we building all this new 'stuff'?" as staff conducts inspections and does outreach.  And we probably should understand why we are going to underwater our trees when the city Urban Water Management Plan tells us there isn't going to be much of a problem even in a five-year drought.

June 17 update.  You probably got a postcard from the city yesterday about the annual water quality report:  www.burlingame.org/waterquality.  Did you notice the license plate on the sweet '68 Camaro?  SAVEH2O   LOL.

School Budget: State Money Bailout?

As Alice Cooper sang "school's out for summer," but funding questions remain to be worked on over the summer.  The Daily Journal summarized the issue

Burlingame School District’s budget is in the red but officials are hopeful the small funding gaps will be diminished by additional state contributions to the public education system.  “I’m happy that the numbers are getting so close to balanced. Hopefully, I would presume, if some of the good news from Sacramento comes our way we can look at 2023 as a positive, as a black number instead of a red number which would be fantastic,” said Trustee Dan Devoy during the board’s meeting Thursday.

Here are the highlights of the budget as it sits for FY22/23

More than half of the district’s $47 million budget will go toward employee salaries next year with just more than $5 million covering services and operations and about $3 million covering supplies.

Meanwhile, the district is slated to bring in $35 million from the state’s Locally Controlled Funding Formula, $2 million in federal COVID-19 relief that’s slated to diminish over the next two fiscal years, $4.3 million in other state funding and more than $5 million from local revenue in the next fiscal year.

So it all tallies to a $631K deficit for the fiscal year and a shade more in FY23/24.  That leads to the hope that Sacramento will ride to the rescue

Given that state officials are still hammering out deals on how to spend the ($97B) surplus, Amanda Bonivert, the district’s chief business official, said district staff did not account for the proposed increases in the draft budget aside from the LCFF boosts out of concern the distinct would end up overbudgeting for money not received. Without the additional state funds, Bonivert noted the district would still receive a positive budget certification, meaning they will meet their budgeting obligations.

Fingers crossed that the cavalry arrives.

Graffiti Rosetta Stone?

It's been a while since we had a notable (i.e. notably bad) graffiti sighting, but a burst has reappeared on the walkway next to the Walgreens on Burlingame Ave.  Is this a back-and-forth between opposing taggers?  Anyone got a Rosetta Stone on this?  Is it a tribute to Jackson Pollack?  I assume Walgreens itself has been keeping that wall clear and has been doing a great job of it recently.

 

Driver-less Taxis: What could go wrong?

We have to keep an eye on EssEff happenings since some can spill over into B'game.  It wouldn't surprise me if autonomous, robotic, driver-less taxis is one of them.  The Daily Post and Chronicle are reporting on the progress:

California regulators on Thursday issued a first-of-its-kind permit to robot-taxi company Cruise (a GM controlled company), which will make San Francisco the first major city in the country in which people can hail a paid ride from a driverless taxi, officials said.

The California Public Utilities Commission voted unanimously Thursday to grant Cruise its permit, more than six months after the San Francisco-based company first applied to be able to charge for rides in its autonomous vehicles, without a backup driver. The company has been offering free driverless rides since February and will begin rolling out paid rides in its 30 electric vehicles in the coming weeks, officials said.

That's the headline, but the caveats are far more interesting.  Since the taxis are apparently unable to move to the curb for pick-up and drop-off they are being restricted to less dense parts of the city.  They can only operate between 10pm and 6am and must stay under 30 mph and shut down for rain and fog.  A competitor, Waymo, has been offering service in the friendlier driving environs of Phoenix since October 2020, but driving in SF is a tougher task.

The Daily Post offered a reminder of two events last April when a Cruise taxi briefly blocked a fire truck responding to a call and when the SFPD stopped one of the taxis, it drove off before the officer finished ticketing it.  You can read the COO's statement about the new paid service here--and the link to hail one is at the bottom.  Be brave!  In the meantime, my old standby Luxor is still in business serving B'game and you get help with your bags.

Election 2022: Coming into Focus

This summer primary election has been very heavy on the signage with tons of it placed illegally by pretty much every candidate.  But thankfully we only have four more days to go until the blurry races come into focus.  Won't be a minute too soon for me.  You can drop your ballot in the box in front of Walgreen's on B'way.  Why the County would spend good money to put these boxes out and then service them regularly when every ballot is mail-in ready and postage-free eludes my logic.