Ron Conway

Big soda explodes on SF, gives $7.7 million to fight beverage tax

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If the soda tax proponents brought a supersoaker to the November ballot showdown, the soda industry brought a tsunami. New campaign finance reports filed today [Mon/6] show the soda industry gave $7.7 million dollars to shoot down the sugary beverage tax in San Francisco, and no, this does not count money spent in Berkeley against our sister city’s beverage tax. 

That number is completely off the charts. In San Francisco local politics, journalists have written screeds against local tech angel investor Ron Conway for throwing $50,000 at an Assembly race, for a point of reference. It may not be record setting though. In 2008, PG&E spent nearly $10 million to take down a clean energy initiative, Proposition H. Still, $7.7 million is simply an absurd amount of money in terms of San Francisco politics, and rarely seen.

And the American Beverage Association still has the entire month of October to outspend PG&E.

“It makes your eyeballs pop,” said Sup. Scott Wiener, a co-author of San Francisco’s sugary beverage tax, along with Sup. Eric Mar. “The rule of thumb is, if you can raise $1 million in San Francisco, you’re in good shape. I don’t even know what you’d do with $7 million.”

The money spent also bests the record set in nearby Richmond. The failed beverage tax was defeated handily with $2.6 million spent against it. It’s that frightening amount that spurred Wiener and Mar to start a grassroots campaign for the sugary beverage tax a year early. The San Francisco measure, on this November’s ballot, would levy a 2-cents-per ounce tax on sugary drinks sold in containers. The money would go directly into health and wellness programs in schools and city recreation centers. 

But the sugary beverage tax proponents have only raised about $225,000 so far, which is nowhere near the ballpark of the $7.7 million mark. San Francisco is awash in carbonated dollars.

Even more staggering is who the money is from. Most campaign finance forms show a long list of donors. Maybe a few firefighters kick in $500 here, maybe a retiree kicks in $100 there. This form has one, single campaign donor: the American Beverage Association, which is primarily funded by Pepsi Co. and Coca Cola. 

What does all that money buy? Well, for starters, a whole lot of political ads. The expenditures listed against Proposition E, the soda tax, list over $3,750,000 spent with GCW Media Services, who make slick campaign ads like the one below.

It also goes toward paying those oh-so-pleasant mailed ads, you know, the ones trying to link the soda tax with the rising cost of living, and evictions? The US Postal Service alone netted $3,500 to send those off.

The Young Democrats, who endorsed No on the Sugary Beverage Tax, got a whopping $20,000 for their troubles. And notably, Chile Lindo, whose owner repeatedly came out to testify against the sugary beverage tax, was paid $812. 

And let us not forget our friends at BMWL and Partners, paid over $161,000 by the American Beverage Association so far. No wonder Chuck Finnie, a flack at BMWL, got so testy with us when we questioned claims by the ABA.

“I was a journalist for 20 years, and this is bullshit,” the ex-San Francisco Chronicle investigative reporter told us. “The gloves are off.”

They certainly are. Big soda isn’t sparing a solitary dime when it comes to flooding our TV stations, our radio airwaves, our streets, and our billboards with a straightforward message: to vote against the sugary beverage tax. 

But the real message behind that effort is much easier to see, now that we know how much money they’ve spent.

They’re scared. 

Sugary beverages contribute much to obesity and diabetes rates in San Francisco and beyond, studies have shown, and the showdown with the soda industry in San Francisco and Berkeley could ripple across the country. Big soda’s big lobbyists are running astroturf campaigns we’ve exposed in previous coverage, and this $7.7 million show just how seriously the big soda companies consider these new taxes a threat to their livelihoods.

The only question is, will their big money succeed in hoodwinking San Francisco?

We’ve embedded the campaign filing below, which you can read for yourself or download.



Ron Conway’s attack on Campos fails to persuade actual feminists

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Remember when deep-pocketed tech investor Ron Conway poured hefty cash into an independent expenditure committee to finance campaign mailers designed to smear Assembly candidate Sup. David Campos, by equating his vote to reinstate Sheriff Ross Mirkarimi with support for murderous domestic abusers?

Well, those ads carried little sway with the National Organization for Women, California’s largest feminist organization. The statewide group’s political action committee sent out a press release Mon/22 to announce its endorsement of Campos for California Assembly District 17. In addition to listing some positive things Campos has done for women, such as creating a 25-foot buffer zone at the Planned Parenthood Clinic near St. Luke’s Hospital to protect women from harassment by anti-abortion activists, NOW’s press release specifically berated his opponents for these “misleading attacks.”

Reached by phone, California NOW President Patricia Bellasalma said the attack mailers qualify as “really outrageous.”

And furthermore, she added, where was this financier when actual protections against domestic violence were being gutted in Sacramento?

“This individual that spent all of this money,” Bellasalma said, referring to Conway, “I didn’t see him in Sacramento when the governor completely got rid of the domestic violence mandate,” a state law mandating law enforcement response to domestic abuse calls, recording of those calls to emergency personnel, maintenance records of protection orders, and incident reports.

“If we want to have a discussion about what the city and county of SF should be doing in the area of violence … it doesn’t belong in this race,” Bellasalma added, “and it has nothing to do with either of them,” referring to Campos and his opponent, Board President David Chiu.

Across California, “The vast majority [of] the progressive women’s organizations are with David Campos,” Bellasalma added. “If you’re a Sheryl Sandberg ‘Lean In’ sort of gal, then David Chiu is more your thing.”

Did Big Soda swing a key endorsement by a progressive democratic club?

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Did the soda industry buy a prominent progressive political endorsement? Sunday’s San Francisco Chronicle raised the question in a story by Heather Knight, who goes on to air a number of rumors propagated by the soda tax supporters against the Harvey Milk LGBT Democratic Club.

First things first: the sugary beverage tax already has a lot of progressive support. Unions, health groups, and loads of other San Franciscans have backed the two cents per ounce tax on sugary beverages, Proposition E, which is slated to appear on this November’s ballot. The endorsement of “No on E” by the Milk Club is certainly a bit out of left field, and rightfully raised eyebrows in political circles.

That’s the argument Knight uses in her Sunday article, using a few quotes from the soda tax’s paid public relations’ people to take a big swing at Sup. David Campos, alleging this is a big ole scheme he’s orchestrated in order to get Coca Cola’s money to fund the Milk Club’s slate card, which would also feature Campos, giving him a boost in his Assembly race against Sup. David Chiu.

It’s a seemingly convincing scenario, and we’re not soothsayers. Maybe it’s true. But there are a number of reasons to not believe the hype.

First, we at the Guardian heard those same rumors and whispers too, but that wasn’t all we heard. One politico told us the beverage industry might be funding the Milk Club with $300,000 in campaign funds for their November ballot fliers. Our reaction was “um, what?!”

That’s more money than techie-billionaire Ron Conway spent backing Mayor Ed Lee’s major pet projects on the June ballot. Hell, it’s more money than some candidates raise in their entire races. That should’ve been the first red flag for the “soda milking the Milk Club” theory, but it wasn’t the last.

Second, though the club did accept money from the American Beverage Association, it wasn’t anywhere within spitting distance of $300,000. Tom Temprano, co-president of the Milk Club, told us they accepted $5,000 from the beverage industry to put on their annual gala. For context, SEIU Local 1021 donated $4,000 to the dinner. This is all data that would come out publicly in a few months through ethics filings anyhow, but long after the rumor of big beverage industry money would’ve caused its damage.

“All you get for sponsoring our dinner is a mention in the program and a plug on the stage,” Temprano told us. “If the [beverage industry] paid us anywhere near what the rumors are, I would’ve flown out Elton John to serenade [Assemblymember] Tom Ammiano in person.”

Though the $5,000 is not chump change to the Milk Club, its leadership doesn’t make endorsement decisions, which are enacted by a vote of the club’s members. In a heated exchange last week, Milk Club political wonks batted soda tax points back and forth like a beach ball. There was hardly a consensus on the matter.

“They didn’t vote the way I wanted but the process was very democratic,” Sup. Eric Mar told us. Mar was one of the authors of the soda tax, and even he doesn’t believe the Milk Club’s palms were greased by big soda’s big money.

“I feel that there are rumors being spread to undercut the integrity of the Harvey Milk Club, the strongest progressive voice and political leadership in the city right now,” he said. “I stand behind them even though they voted no on [the soda tax].”

Laura Thomas, co-president of the Milk Club, told us she is actually in favor of the soda tax. It’s easy to see why. As Deputy State Director of the Drug Policy Alliance, she has day-to-day experience with public health, and she sees the far reaching affect of soda’s loads of sugar on San Francisco’s kids.

“I do support [the tax], and I’ve spoken passionately for it in our meetings,” Thomas told the Guardian. “I’d say it’s something we’re passionate on all sides about.”

The last stickler in the money-influence theory is a bit trickier. Many we talked to traced some of these rumors back to Chiu’s campaign spokesperson, Nicole Derse. When we spoke to her, she pounced on the subject like a hyena on carrion.

“The Harvey Milk Club has sold out to the soda industry,” she told us. “What would Harvey Milk think of this gross display of hypocrisy? David Campos needs to answer some serious questions on his position on the soda tax and his campaign.”

Notice how she shifted the Milk Club assertion, which we asked her about, straight into a Campos critique. She’s affable, she’s smart, but in that moment, Derse also sounded gleeful.

We then asked Derse if the rumor about the Milk Club and Campos came from her.

“I am not the person that started this rumor. But do you really think it’s a coincidence David Campos is broke and needs a vehicle to fund his campaign? I think it speaks for itself, if it happens,” she said. “If the Milk Club does not take hundreds of thousands of dollars from the American Beverage Association, I will happily be wrong.”

Actually, when it comes to spreading rumors through news outlets, being right or wrong doesn’t really matter. All you need to do is raise the question of impropriety, proof or no. It’s grandma’s classic recipe for a good political smear, as old as the hills, and very, very easy to do.

Update [8/26]: This story stirred up quite a bit of controversy, and folks called, emailed, Facebooked and Tweeted at us with one point: sure the Milk Club didn’t take all that much money from the American Beverage Association for the gala, but what about the future? Would they take a large sum from the ABA? Tom Temprano answered: “I find that completely unlikely. I’m going to say that’s not a situation we’re going to be in. But I haven’t had a conversation with anyone with anybody about money yet. Our entire board and PAC chair make decisions on fundraising.”

So there you are. If a donation in the tens of thousands of dollars should land on the Milk Club’s doorstep, Temprano is now on the record.

Taxing speculators

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steve@sfbg.com

Political tensions over evictions, displacement, real estate speculation, and rapidly rising housing costs in San Francisco are likely to heat up through the summer and autumn as a trio of November ballot measures are debated and combated by what’s expected to be a flood of campaign cash from developers and other real estate interests.

Topping the list is a tax measure to discourage the flipping of properties by real estate speculators. Known generally as the anti-speculation tax — something then-Sup. Harvey Milk was working on at the time of his assassination in 1978 — it was the leading goal to come out of a citywide series of tenant conventions at the beginning of this year (see “Staying power,” 2/11/14).

“To be in a position to pass the last thing Harvey Milk worked on is a profound opportunity,” AIDS Housing Alliance head Brian Basinger told us, arguing the measure is more important now then ever.

The measure has been placed on the ballot by Sups. John Avalos, David Campos, Jane Kim, and Eric Mar and is scheduled for a public hearing before the Board of Supervisors Rules Committee on July 10 at 2pm.

“It’s an absolutely key issue for San Francisco right now. Passing this measure will create a seismic shift in what we’re seeing with evictions and displacement in the city,” Sara Shortt, director of the Housing Rights Committee, told the Guardian.

The measure creates a supplemental surcharge on top of the city’s existing real estate transfer tax, a progressive rate ranging from a 24 percent tax on the sale of a property within one year of its purchase to 14 percent if sold between four and five years later.

In addition to levying the tax, the measure would also give the Board of Supervisors the power to waive that tax “subject to certain affordability-based restrictions on the occupancy of the real property,” giving the city leverage to expand and preserve deed-restricted affordable housing.

Meanwhile, there’s been a flurry of backroom negotiations surrounding the City Housing Balance Requirement measure sponsored by Sup. Jane Kim, which would require market rate housing projects to get a conditional use permit and be subjected to greater scrutiny when affordable housing falls below 30 percent of total housing construction (with a number exemptions, including projects with fewer than 24 units).

That measure is scheduled for a hearing by the Rules Committee on July 24 and, as an amendment to the City Charter, it needs six votes by the Board of Supervisors to make the ballot (the anti-speculation tax is an initiative that requires only the four supervisorial signatures that it now has).

Mayor Ed Lee and his allies in the development community responded to Kim’s measure by quickly cobbling together a rival initiative, Build Housing Now, which restates existing housing goals Lee announced during his State of the City speech in January and includes a poison pill that would invalidate Kim’s housing balance measure.

Together, the measures will draw key battle lines in what has become the defining political question in San Francisco these days: Who gets to live here?

 

COMBATING SPECULATORS

In February, Mayor Lee and his allies in the tech world, most notably venture capitalist Ron Conway, finally joined housing and other progressive activists in decrying the role that real estate speculators have played in the city’s current eviction and displacement crisis.

“We have some of the best tenant protections in the country, but unchecked real estate speculation threatens too many of our residents,” Lee said in a Feb. 24 press release announcing his support for Sen. Mark Leno’s Ellis Act reform measure SB 1439. “These speculators are turning a quick profit at the expense of long time tenants and do nothing to add needed housing in our City.”

The legislation, which would have prevented property owners from evicting tenants using the Ellis Act for at least five years, failed in the Legislature last month. So will Lee honor his own rhetoric and support the anti-speculation tax? His Communications Director Christine Falvey said Lee hasn’t yet taken a position on the measure, but “the mayor remains very concerned about real estate speculators.”

Peter Cohen of the Council of Community Housing Organization said Lee and his allies should support the measure: “It seems so clearly aligned with the same intent and some of the same mechanics as Ellis Act reform, which had the whole city family behind it.”

“I think it would be very consistent with their position on Ellis Act reform to support the anti-speculation tax,” Shortt told us. “If the mayor and tech companies went to bat for the anti-speculation tax, and not against it, that would show they have real concern about displacement and aren’t just giving it lip service.”

Conway’s pro-tech group sf.citi didn’t returned Guardian calls on the issue, nor did San Francisco Planning and Urban Research Association, but their allies in the real estate industry strongly oppose it.

“As Realtors, our goals are to increase housing availability and improve housing affordability,” San Francisco Association of Realtors CEO Walk Baczkowski told the Guardian. “We don’t believe the proposal from Sup. Mar, which is essentially a tax on housing, will accomplish either of those goals.”

But supporters of the measure say real estate speculation only serves to drive up housing costs.

“We have been successful at bringing people around on the issue of real estate speculation,” Basinger told us. “But of course, there will be financed opposition. People will invest their money to protect their interests.”

“We know it’s going to be a fight and we’ll have to put in a lot of resources,” Shortt said, adding that it’s a fight that tenant activist want to have. “Part of what fuels all of this [displacement] is the rampant real estate speculation. We can’t put profits above people.”

 

MAYOR’S MEASURE

Falvey denies that Lee’s proposal is designed simply to negate Kim’s measure: “Build Housing Now specifically asks the voters to adopt as official city policy the Mayor’s Housing Plan to create 30,000 new homes by 2020 — the majority within reach of low, moderate, and middle income residents. This is not a reaction, but a proactive measure that lets voters weigh in on one of the mayor’s most important policy priorities.”

Yet the most concrete thing it would do is sabotage the housing balance measure, an intention it states in its opening words: “Ordinance amending the Planning Code to prohibit additional land use requirements such as conditional use authorizations, variances or other requirements on housing projects…based on a cumulative housing balance ratio or other similar criteria related to achieving a certain ration of affordability.”

Beyond that, it would have voters validate Lee’s housing goal and “urge the Mayor to develop by December 31, 2014 a Housing Action Plan to realize this goal.” The measure is filled with that sort of vague and unenforceable language, most of it designed to coax voters into thinking it does more than it would actually do. For example, it expands Lee’s stated goal of 30 percent of that new housing being affordable by setting a goal of “over 50 percent within reach of low and middle income households.”

But unlike most city housing policies that use the affordable housing threshold of those earning 120 percent of area median income (AMI) and below, Lee’s measure eschews that definition, allowing him and his developer allies to later define “middle income households” however they choose. Falvey told us “he means the households in the 50-150 percent of AMI range.”

The measure would also study the central premise of Mayor Lee’s housing policy, the idea that building more market rate housing would bring down the overall price of housing for everyone, a trickle-down economic argument refuted by many affordable housing advocates who say the San Francisco housing market just doesn’t work that way because of insatiable and inelastic demand.

“Within 60 days of the effective date of this measure, the Planning Department is directed and authorized to undertake an economic nexus analysis to analyze the impact of luxury development on the demand for middle income housing in the City, and explore fees or other revenue sources that could help mitigate this impact,” the measure states.

Shortt thinks the mayor’s measure is deceptive: “It’s clever because for those not in the know, it looks like a different way to solve the problem.” But she said the housing balance measure works well with the anti-speculation tax because “one way to keep that balance is to make sure we don’t lose existing rental stock.”

And advocates say the anti-speculation tax is the best tool out there for preserving the rental housing relied on by nearly two-thirds of city residents.

“It’s the best measure we have going now,” Basinger said of the anti-displacement tax. “Mayor Ed Lee and his tech supporters were unable to rally enough support at the state level to reform the Ellis Act, so this is it, folks.”

City agencies defend their slow response to Airbnb’s illegal rentals

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More information has been coming out about how Airbnb is used to convert San Francisco apartments into tourist rentals — including an interesting study reported by the San Francisco Chronicle last weekend — in advance of next month’s hearings on legislation to legalize and regulate short-term rentals.

But questions remain about why the city agencies in charge of regulating such “tourist conversions,” which have long been illegal under city law, have done so little to crack down on the growing practice. For more than two years, we at the Guardian have been publicly highlighting such violations, which have finally caught fire with the public in the last six months.

Even Mayor Ed Lee — who has helped shield Airbnb from scrutiny over its tax dodging and other violations, at least partially because they share an investor in venture capitalist Ron Conway — has finally said the city should pass legislation to regulate the company, as Sup. David Chiu is trying to do.

But attorney Joseph Tobener, who has represented clients evicted to facilitate Airbnb rentals and has brought a number of such lawsuits on behalf of San Francisco Tenants Union, still can’t get city departments to issue notices of violation even for the most egregious offenders that he’s suing, an administrative prerequisite to filing a lawsuit.

“The Department of Building Inspection and the Department of Planning need to start shutting these violators down by enforcing the existing laws, or we need stricter laws that allow us to pursue our claims without City approval.  Two months ago, we sent our requests to pursue landlords on behalf of the SFTU.  Then, radio silence.  Two months of utter inaction. Someone in charge does not want to see us close the loophole that is allowing landlords to take units out of our housing stock,” Tobener said.

The Chronicle investigation found that in San Francisco, 1,278 Airbnb hosts in San Francisco were managing multiple properties (Chiu’s legislation would limit hosts to their primary residence for just 90 rental nights per year), including 160 entire homes that tourists appear to be renting out full-time. Overall, the paper counted 4,798 properties for rent in San Francisco through Airbnb, 2,984 of which were entire homes, belying the “shared housing” label favored by the company and its supporters.

And even though groups like the San Francisco Apartment Association and SFTU say they have been actively trying to get the city departments to crack down on such illegal uses over the last year, representatives for DBI and the Planning Department say they’ve received few complaints and therefore issued few violations, while also saying they need more resources to regulate the problem, something Chiu’s legislation would begin to help address.

“Our enforcement process is complaint based and we investigate each complaint that is received by our Department (more than 700 per year).  Complaints regarding short term rentals that result in the loss of housing are prioritized for enforcement,” Planning Department spokesperson Gina Simi told the Guardian.

She said that property owners are given the opportunity to correct a violation before being cited, something that she said happens in about 80 percent of cases.

“A case is opened for every complaint received. Since March 2012, we have had approximately 120 enforcement cases for Short Term Rentals.  In each case, notices were sent to the property owner and approximately half (54) have been abated and half (66) are active cases.  Many of these (approximately 30) were received since the beginning of April 2014,” she told us when we inquired about the issue last month.

As for Tobener’s charge that city agencies are dragging their feet and making it difficult for his clients to pursue relief from the courts, she said, “The ability for interested parties to pursue the matter through civil action (for injunctive or monetary relief) following the filing of a complaint and determination of a violation is a process outlined in Chapter 41A, which is enforced by the Department of Building Inspection.  Enforcement under the Planning Code does not allow for interested parties to seek civil action.”

But DBI spokesperson William Strawn said his department hasn’t received many complaints, claiming to have gotten just three total through the end of last year.

“A few weeks ago, per Mr. Tobener, we did receive seven complaints, with documentation, that the Housing Division is still reviewing; and, per [DBI Chief Housing Director Rosemary] Bosque, we also recently received an additional seven complaints – for a current total of 14 – that also are under review and being scheduled for administrative review hearings, as required by Chapter 41A,” Strawn told the Guardian.

But he also pointed his finger back at the Planning Department as the agency that should be handling problems related to the short-term stays facilitated by Airbnb.

“Given that these ‘duration of stay’ issues are Planning Code matters – a point we have made to Supervisor Chiu, and which I know you discussed with the Planning Director {John Rahaim] during Supervisor Chiu’s media availability on this issue a few weeks ago – the role of the Building Department in the enforcement of these types of complaints in our relatively new Internet Age will require guidance from the City Attorney,” Strawn told us.

Indeed, in response to a Guardian question about why the Planning Department seems to have ignored violations facilitated by Airbnb, Rahaim said that his department hasn’t had the resources, tools, and authority to address the problem, even though, “This is an important issue we’ve been hearing about for quite some time.”

DCCC calls against Prop B did not have desired effect, did raise questions

Chairperson Mary Jung of the San Francisco Democratic County Central Committee, a highly influential political body that governs the San Francisco Democratic Party, has come under fire for “misuse of funds” after authorizing the use of DCCC dollars to make calls to voters just before the June 3 election.

The funds in question, according to DCCC members who raised concerns, came out of a $25,000 check from billionaire venture capital investor Ron Conway, received by the DCCC May 30.

In a June 16 letter – signed by DCCC members Kelly Dwyer, Hene Kelly, Sup. Eric Mar, Sup. David Campos, Sup. John Avalos and Petra DeJesus – Jung is taken to task for directing $11,674.48 from this donation be used for phone calls placed to voters in opposition to Proposition B, which appeared on the June 3 ballot, just before the election.

As previously reported, a complainant cried foul on this action in a filing with the San Francisco Ethics Commission, because callers seemed to be intentionally misleading voters by implying that the No Wall on the Waterfront Campaign, which backed the measure, was opposed to it.

When we phoned Jung for comment on that complaint, she said she did not have the call script and could not comment on the charge that the calls were misleading. She also said Conway’s contribution was not necessarily put toward the No on B calls. Instead, she told us, she could not link any single donation with any single expenditure, because the DCCC had been conducting broad fundraising efforts leading up to the election.

In their letter to Jung, the dissenting DCCC members argued that her decision to authorize the use of funds for the No on B voter calls violated the organization’s bylaws, because “there was never a vote by the members to expend $11,674.48 to make calls for No on B.” 

The letter points to an article within the board’s bylaws, stating that “Disbursements of SFDCCC funds … shall be authorized by a majority vote of the voting members present and voting at a regular meeting.” 

In the end, San Francisco voters overwhelmingly approved Prop. B, which requires voter approval before building heights may be increased above established limits for new waterfront development projects. However, the measure was not popular among real-estate development interests.

In addition to being chair of the DCCC, Jung is employed as a paid lobbyist for the San Francisco Association of Realtors, making her professionally positioned at the center of the San Francisco real-estate community.

“The power that comes with being the Chair does not mean that you can circumvent Bylaws and advocate and raise money for causes that you happen to also work for,” the authors of the letter stated bluntly. “There is a serious conflict of interest here.”

When the Bay Guardian phoned the DCCC to ask if there was an expert on the organization’s bylaws who might be able to comment on whether the rules had been violated, we were directed to Arlo Hale Smith, a 30-year DCCC member and parliamentarian with a deep understanding of the bylaws.

Smith offered an interesting twist on the matter: He said these funds were indeed “properly expended, under the emergency provision.”

The emergency provision? Yes, Smith explained, the DCCC bylaws contain a provision allowing the DCCC chair and treasurer to authorize the use of funds without first calling a vote, “in the event of an emergency.” This provision has been used in the past, he said, to authorize last-minute expenditures when an election imposes a tight deadline.

Since the money arrived three days before the election, there was no time to call a meeting and vote on it, Smith clarified. That’s why it was perfectly legitimate for Jung to authorize the use of funds. He added that disagreement over the content of the calls warranted a separate conversation.

“Because of when the check arrived – it constituted an emergency,” Smith noted, confirming that he was talking about the check from Conway.

That would be the same check from Conway that Jung told us had nothing to do with the No on B calls.

Sounds like the DCCC is going to have lots to talk about on June 25, when the members who submitted the letter asked for a hearing on this matter.

Here’s the full text of the letter.

DCCC members' letter to Chair Mary Jung

Ethics complaint says chair of DCCC deliberately tried to confuse voters

NOTE: This post has been updated from an earlier version.

Right down to the wire, a complaint filed with the San Francisco Ethics Commission today [Tue/3] – election day – alleges that Democratic County Central Committee elected chair Mary Jung authorized phone calls that were meant to deliberately confuse voters on Proposition B.

The ballot measure, which would require voter approval for waterfront height limit increases, is officially backed by a committee called “No Wall on the Waterfront, Yes on B.”

But according to the Ethics Commission complaint, opponents of Prop. B falsely portrayed No Wall on the Waterfront as being against Prop. B in a bid to confuse voters.

A transcript of the call included in the complaint notes that a live caller opened the communication by saying, “I’m calling about the No Wall on the Waterfront Campaign,” without saying they were calling in opposition to that campaign, and seemingly posing as being affiliated with it. Callers also made statements such as, “Prop B is about environmental loopholes, against affordable housing,” and “No on B endorsements — the Democratic Party, Alice Toklas democratic club, labor.”

“This act by Ms. Jung was a devious and deceptive plan to trick San Francisco voters,” complainant Geraldine Crowley, formerly a DCCC member herself, charged in the filing. “While I realize she employed as a highly paid lobbyist for the San Francisco Association of Realtors – who oppose Prop. B – it crosses the line for Ms. Jung to violate the ethical codes and San Francisco law in this manner.”

We reached Jung by leaving a message on her phone line, listed on the San Francisco Association of Realtors website, next to her job title: “Director of Government and Community Relations.” (Which is really a very convenient arrangement for the real-estate crowd, when you think about it. Who better to relate to the “community” and the “government” than the chair of one of the most politically influential organizations in town, which endorses candidates for elected office?)

When she called us back, Jung confirmed, “We were calling people to vote No on Prop. B.” But what about the allegation that those calls were intentionally deceptive, falsely painting No Wall on the Waterfront as being against Prop. B? “I have not seen the complaint,” Jung told us. She added, “I don’t have a copy of the script” used by callers when they contacted voters. To get a copy of the script, she said, we would have to call political consultant Eric Jaye, who is handling communications for the opposition to Prop. B. We tried calling Jaye but couldn’t reach him.

[UPDATE: Jaye just returned our call. He said Crowley’s complaint is “frivolous” because the callers said they were calling “about” the No Wall on the Waterfront Campaign. “This was what they named their campaign,” Jaye said repeatedly. “It’s not deceptive.” But we asked him multiple times if he would provide a copy of the full call script, and he refused to do so, without offering any reason why he couldn’t.]

What’s more, according to Crowley’s complaint, is that the paid phone calls to DCCC members appear to have originated with venture capitalist Ron Conway, who made a $25,000 donation to the DCCC on May 30. A few days later, Ethics Commission filings show, Jung authorized expenditures totaling $12,281.13 for “membership communication calls.”

Jung denied having had any conversation with Conway about it, and said “the Democratic Party has done a lot of fundraising in the past three months,” and that she could not link a specific donation with a specific DCCC expenditure. She then said she had to go.

Officially, “you can’t give to the party and officially say the donation is for some purpose, but anyone who’s worked in San Francisco politics knows … it’s designed to make something happen,” said Jon Golinger, who heads up the “No Wall on the Waterfront, Yes on B” committee.

He added, “They’re literally using our name to further an agenda that is the opposite” of what the Yes on B campaign has been organizing for.

Some members of the DCCC are reportedly seeking copies of that script, since there seems to have been little awareness of what was being told to voters in the Democratic committee’s name.

But the idea that Jung herself did not know what was being said in the calls, when she authorized the expenditure for membership calls and works in the same office as Prop. B opponents, raises questions about what sort of leadership she’s actually providing.

In the meantime, here’s the Ethics Commission complaint.

Ethics Complaint Against Mary Jung by Rebecca Bowe

An audio interview with protest co-organizer Erin McElroy.

Inside the event, techies dressed in bowties and lavish dresses posed for pictures. Camera in hand, this Guardian reporter was mistaken for an event photographer, and we started to ask attendees (after clarifying we were a reporter) what they thought of the protest outside.

The opinions were decidedly mixed. There were certainly sentiments shrugging off the protest as typical San Francisco antics, but tech workers from outside San Francisco tended to be more sympathetic.

All companies should be civically minded, said Shinta Dhanuwardoyo, CEO and founder of bubu, a tech oriented ad agency. “It doesn’t have to be just tech,” she said.

Tech isn’t responsible for all the city’s ails and ills, another attendee told us, but maybe there’s a middle ground. “Just paying attention, help and not just trying to make cool stuff, maybe they should,” said Aryo Ariotedjo, CEO and co-founder of footwear design website Project Shoe.

But still, some tech folks still aren’t getting the message. They reduce protests to simple ideas, like tech hatred, or think that tech is already doing more than enough to help. Silicon Valley news site Venture Beat said the anger against Conway, for example, was misplaced.

Meanwhile, inside Davies Symphony Hall, Conway delivered a heartfelt speech about the need for tech companies and employees to give back to the community, and pledged $12,000 in matching funds for a fundraiser for nonprofits,” they wrote, calling out the Crappies for not recognizing his civic-mindedness.

Its thesis that $12,000 towards nonprofits could make up for the lost homes of hundreds of San Franciscans, or the painful cost of living increases for middle and low income families affected by the tech boom, is questionable, to say the least. 

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A protester holds a sign asking the tech industry to take responsibility for their impact to San Francisco. Photo by Joe Fitzgerald Rodriguez.

At the end of the day, demonizing tech was not the goal protest organizer Erin McElroy worked towards, she said. Put simply, she just wants tech workers to wake up, to pitch in, and become part of the community. 

“We’re really not trying to pivot ourselves against tech workers, but it’s up to those workers to open their eyes to what’s going on,” McElroy told us after the event. Displacement and rising costs are tied to tech’s presence, and they should pitch in where they can, she said.

“They could protest with us, or come to a tenants’ rights meetings,” she said. “They could make conscious efforts not to move in where someone was evicted. There’s so many things they could do, and that’s one of the things we’re trying to convey.”

The conversation between tech and the community is evolving, and soon there may be hope of real solutions. The Mission District has played host to a series of dinners allowing dicussion between tech and long time residents, and an upcoming Tech Workers Against Displacement Happy Hour touts its goal to “create an open discussion on how improved communication and collaboration can affect reforms needed to stop involuntary displacements of longterm San Franciscans and ensure sustainable, cohesive and diverse communities.”

One can only hope tech workers get the message: join the cause. Unite with the communities of San Francisco, and work together to stop displacement.