WestCon Tribune

January 2004

January News

California Builders Report

Letter of Thanks

New Member

President's Message

Westcon in the News

Senior Architect and General Contractor Position

California Builders Report Most New Houses Built Since 1989

2003 saw the most houses built in California since 1989 and the most apartments since 1990. Experts claim the new construction still isn’t enough to ease the nation’s worst housing shortage.

California builders reported starting 191,866 homes and apartments in 2003, and predict slightly more next year before rising interest rates force a slowdown in 2005.

Only Florida reported more home construction during 2003, starting 205,000 new dwelling units for a population half the size of California’s.

With its 36 million residents, California saw 135,016 new houses go up during 2003, most of them in new subdivisions that stretched from San Diego and Riverside counties to the boomtowns of the Central Valley and the San Francisco Bay Area.

Builders also started 56,850 new apartments statewide, the highest number since 60,494 were built in 1990.

Home builders credit the construction spree to the lowest interest rates in a generation, which gave thousands of people more buying power even as prices surged because of supply and demand. Home values rose an estimated 17 percent during the year, reaching a median price of $369,500, where half the homes cost more and half cost less.

But the percentage of California buyers who could afford such a home also plunged to 25 percent, reported the California Association of Realtors, forcing renters to double up with others and compete for an undersupply of apartments.

“California is probably the only part of the country talking about a housing shortage,” said economist Michael Carliner of the Washington, D.C.-based National Association of Home Builders. “I can’t think of any other state where that’s a topic of discussion.”

State officials have said the state needs to build more than 220,000 new residences a year until 2020 to handle annual population growth of 600,000 and overcome a 1990s construction slowdown.

Builders last passed the 220,000 mark in 1989, when they built 237,747 homes.

The state’s construction record is 314,600 homes and apartments built in 1986.

The new home-building totals were racked up in a climate of slow-growth activism that blocked plans for 3,050 homes on the 2,900-acre Ahmanson Ranch straddling the borders of Los Angeles and Ventura counties. But weeks later, the Newhall Land & Farming Co. won a go-ahead to build one of the last major housing projects in Los Angeles County, a 20,885-home development to be built during the next 20 years.

California builders used the new figures to press for lower fees, mandatory zoning for a 20-year supply of houses in each of the state’s 477 cities and reform of state environmental laws.

“It’s clearly time that our policy makers encourage new housing, not continue to make it harder and more expensive to build,” said Robert Rivinius, chief executive officer of the California Building Industry Association.

Home builders have been among leading contributors to Gov. Arnold Schwarzenegger, and are pressing for legislation to more easily clean up abandoned industrial sites for housing. They’re also aiming to reform the California Environmental Quality Act to prevent opponents from stopping new housing projects in older urban neighborhoods.

JIM WASSERMAN, Associated Press Writer.

Letter of Thanks for Griffith Donation

Westcon received two letters from the Stanford Law School recognizing the $5000.00 donation made by Westcon for the John R. Griffiths Momorial Financial Aid Fund.

In part the letter states, “Your contribution not only honors a great attorney, but will also be instrumental in ensuring the School continues to attract the best and brightest students.”

A card was also received from John’s wife Ann Griffiths expressing appreciation and thanking the organization.

Westcon welcomes new member John Markarian of John Markarian Construction located in Santa Rosa. Mr. Markarian is a general contractor with over thirty years of broad experience in new construction and remodeling. He also works with deck and envelope water intrusion issues, insurance repair, earthquake restraint work flashing and roofing. Markarian Construction offers full-time consulting and technical support for construction defect work, mediation, and remediation.

PRESIDENT’S MESSAGE

Happy New Year!

As I think about our organization, I end up reflecting on all of the people that make the organization run smoothly. One of the key roles at Westcon is that of Program Chair and this transition year we had two people fill that role; Sharon Waterman and Jim Sappington. They both have done an excellent job in recruiting the speakers for our dinner meetings. And thanks to Mark Hunter, the Board’s Secretary, for taking minutes and keeping track of the Board’s actions.

Westcon’s Past President Fred Field, started an evaluation of Westcon’s Operating Procedures in 2002 and recruited Jim Strong to review, critique and improve the Procedures. This task was completed under Fred Field’s tenure as President and the work continues to benefit your Board of Directors.

The highlight of the 2003 year was the Symposium held in November. Chris Nelson pulled together an excellent panel of experts to discuss the issue of Quality Control in the construction industry. Chris literally put in hundreds of hours drafting outlines, meeting and reviewing the panelists’ presentations, rehearsing the presentations and he even put together his own presentation. Providing continuing education to the construction industry is a goal of our Organization and Chris did an outstanding job not just in the organization of the Symposium but in representing Westcon to the construction industry.

And last but not least, the person that makes sure that the Tribune gets published and mailed, the menu for each meeting is planned, that we have a place to meet, that handles everything from membership questions to directory updates, and all the other details of running an organization such as Westcon; Rikki Field.

As an organization we owe a lot to those that serve and are indebted to their giving of their time and energy. When you see them in 2004, be sure to say thank you.

Your President,

Paul Goetz

WESTCON IN THE NEWS

San Francisco Chronicle Includes Westcon as Building Reference

A two part article by Eve Kushner ran on November 15th and November 22nd in the San Francisco Chronicle’s Home and Garden section. The article covered homeowners acting as their own contractor and how to hire a contractor. The article promotes employing a general contractor, architect or project manager for large jobs. If the homeowner is not taking on a large project they recommend a “jack-of-all-trades” or the homeowner being the “owner-contractor” and finding tradespeople who are licensed and insured. Also noted (although not in great detail) were the legal ramifications of acting as one’s own contractor.

Ms. Kushner called Westcon was referred to and spoke with some of the members listed in the Westcon directory. The article listed Westcon in a side bar as a reference for construction referral and since the article has run a number of calls have come in with a myriad of questions. As calls come in, they are being referred to members in the closest geographical area and to those with the requested area of need. If you receive a call from a referral and cannot assist, or do not wish to take on a particular project, please pass it along to another member or recommend an associate you have worked with.

Also, please let any person referred to you know what your fees and expenses are. Homeowners seem very unaware of the costs involved in construction, especially those of a consultant. This was a very large article which is too much for the newsletter. If you wish to have a copy sent to you, please contact Rikki.

Senior Architect and General Contractor Position

Westcon member Fred Walovich has an immediate opening to join his Bay Area based architectural firm. providing professional services in areas including construction defect analysis and reconstruction of residential, commercial and industrial projects.

He is looking for an individual with 12+ years of experience in residential and commercial construction. Applicant should have the ability to analyze and document existing construction conditions. Successful candidates will also be responsible for leading field investigations, preparing reports, and testify as an expert in court. A California Architectural or General Contractors license is required.

If you are interested, fax your resume to the General Manager at (925)924-1495 or email to knoble@walovich.com

IDEAS? If you would like to give a presentation to Westcon, or have ideas or topics you would like discussed, please notify Fred Field, Program Director at (415) 485–5882. All suggestions are welcome!

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