Ron Conway

D5 shakeups flip the dynamics of that wild race

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[UPDATED AND CORRECTED] Wild and unsettling political dynamics have rocked the District 5 supervisorial race, with three major candidates having prominent endorsements withdrawn, the most significant being this week’s mass exodus of support from the campaign of Julian Davis following his bad handling of allegations that he has mistreated women.

Those withdrawing their endorsements of Davis since Saturday include Sups. John Avalos, David Campos, and Jane Kim, Assembly member Tom Ammiano, the Bay Guardian, the Examiner, and the League of Pissed-Off Voters. The Harvey Milk LGBT Democratic Club has scheduled a vote for Monday on whether to withdraw its sole endorsement of Davis.

Avalos gave his endorsement to Sup. Christina Olague over the weekend, and she seems to be getting more progressive support in the wake of Davis’ flame-out and her Oct. 9 vote in favor of reinstating Sheriff Ross Mirkarimi. That vote triggered a strong backlash against Olague from Mayor Ed Lee and his allies, with San Francisco Police Officers Association withdrawing its endorsement.

But former Mayor Art Agnos reached out to Olague – who he didn’t know previously – after the Mirkarimi vote and is rumored to be considering offering her his endorsement and support. Agnos didn’t confirm or deny the rumor, but he did tell us, “I was very impressed by her commitment to the progressive issues we share.”

Olague has a long history of progressive activism and was a consistently good vote during her tenure on the Planning Commission, but many progressives were concerned by her early support for Lee, who then appointed her to the District 5 seat vacated by Mirkarimi’s election as sheriff, and by some of her votes and behaviors since then.

But now that she’s been viciously attacked by Lee’s staffers and allies over the Mirkarimi vote – and iced out by Lee himself, who she says won’t return her calls and who bailed out on a planned campaign appearance – Olague seems to have a newfound independence. “At the end of the day, we serve constituents and the city, and that’s who we should answer to,” Olague told us, agreeing that she feels freed up by recent developments, as difficult as they’ve been. “You don’t become an indentured servant.”

She told us that her decision last year to co-chair the “Run, Ed, Run” campaign to convince Lee to break his promise and run for a full term to the office he’d been appointed to was based on her belief that “we’d see an infusion of new energy and some more diversity” of both ideology and demographics in the Mayor’s Office.

“Sadly, I’m not seeing those changes happening really. I didn’t sign up for another four years of Gavin Newsom and those thugs, and I’ve seen a lot of that same behavior,” she said. “People who played prominent roles in the Newsom administration continue to play prominent roles in this administration.”

Olague said the schism with the administration began this summer when she supported Avalos in trying to bring in new revenue as part of the business tax reform measure that became Prop. E, which Lee had insisted be revenue neutral before compromising with progressives. That was when Olague said she got her first nasty message from Tony Winnicker, the former Newsom press secretary who now works for Lee and wrote Olague a text during the Mirkarimi hearing telling her “you disgust me and I will work night and day to defeat you.”

Some prominent progressives privately worried that schism was an election ploy designed to help Olague win the race for this progressive district given that Davis had captured most of the influential progressive endorsements. But with Lee and his allies continuing to be openly livid over the Mirkarimi vote – and with solid progressive John Rizzo running a lackluster campaign that has less than $5,000 in the bank – there is growing progressive support for Olague.

The big fear among many progressives is that London Breed will win the race, a concern that has been exacerbated by the support that Breed has been receiving from real estate and development interests, both directly and in independent expenditures by the Association of Realtors, which has spent more than $225,000 in this election cycle hoping to knock out progressives in Districts 1 and 5 and tip the balance of power on the board.

Breed told us that she doesn’t know the Realtors or why they’re offering such strong support, pledging to be an independent vote. “I’ve never made any promises to anyone that I would help anyone or that I would be this way or that,” she told us. “I’m not here to do anyone’s bidding, whether it’s Aaron Peskin or Willie Brown or anyone else.”

Brown helped launch Breed’s political career by [CORRECTED recommending then-Mayor Gavin Newsom] appoint her to the Redevelopment Commission, where Breed supported Lennar and other big developers, but she had a falling out with him earlier this year and made impolitic comments about him to the Fog City Journal, causing US Sen. Dianne Feinstein to withdraw her endorsement of Breed.

Brown, Lee, and Chinatown power broker Rose Pak helped raise money for Olague, who has received the maximum $500 donation from such powerful inside players as venture capitalist Ron Conway (and his wife, Gayle), Michael Cohen, Victor Makras, Lawrence Nibbi, Mark Mosher, and John Whitehurst.

But that was before the Mirkarimi vote, which Lee’s allies seem to see as a litmus test on Olague’s loyalty to them. As Tenderloin Housing Clinic director Randy Shaw, who helped engineer the progressive split that brought Lee to power, put it on his Beyond Chron blog, “Olague’s vote was an act of profound disloyalty not only to the mayor who appointed her, but also to those who pushed the mayor to do so.”

Olague says she’s disturbed by that viewpoint, and by those so blinded by their efforts to demonize Mirkarimi “and exploit and politicize issues around domestic violence” that they have failed to consider the price he has already paid for his actions or the legal standards for removing an elected official. “On something like this, it’s not a question of loyalty. It’s about principles,” she said.

Breed says that she has seen an increase in support since the Mirkarimi vote and the Davis meltdown, but she said that she doesn’t want to talk about those cases or exploit them politically. “I don’t take pleasure in the misery of someone else,” she said, adding her hope that the furor about Mirkarimi will die down. “The decision has been made and it’s time for the city to come together.”

Progressive leaders have made similar calls, but Mirkarimi’s critics are showing no signs of letting the issue go. San Francisco Democratic County Central Committee members Zoe Dunning and Matt Dorsey have put forward a resolution condemning the reinstatement vote and calling for Mirkarimi’s ouster, which the DCCC will consider on Wednesday evening, Oct. 24.

[CORRECTED At that meeting, the DCCC will also consider a motion] to reopen the D5 endorsement process, hoping to change the DCCC’s previous “no endorsement” vote, and sources tell us there is currently a strong backroom effort to give the endorsement to Breed. That vote will be a big test for progressives, which lost their majority control over the DCCC in the June elections.

Meanwhile, D5 candidate Thea Selby – who snagged one of the three endorsements by both the Guardian and the Examiner – continues to run a strong and well-funded campaign that has avoided the carnage taking place in the other campaigns. “I feel like I’m in the middle watching out for flying beams,” she told us, adding that both she and Rizzo have been “the grown-ups in the room, so there’s an opportunity there and I’m hopeful.”

But unlike Rizzo, who has seems strangely absent and didn’t return Guardian phone calls [see UPDATE below], Selby has plenty of money in the bank – nearly $60,000 as of the last official report two weeks ago – and could benefit from voter disgust with the ugly politics at play. “It’s my experience that is driving this,” says this small-businessperson, “and not my lifelong desire to be a politician, and that may ring some bells.”

How the ranked-choice voting system will play out in this mess is anyone’s guess, and even Davis seems to be hoping that he still has a shot, resisting calls by the Guardian and others to withdraw from the race. Poorly funded candidates Andrew Resignato and Hope Johnson this week announced they were joining forces for the “People’s Ticket” after being excluded from a University of San Francisco candidates forum.

But most political observers seem to think this race will come down to a two-person contest between Breed and Olague – who each have more than $45,000 in the bank with which to make a strong final push – and the distinctions between them are becoming clearer as more progressives get behind Olague and the moderates and monied interests get behind Breed.

Olague said she’s still “willing to work with anybody,” but that, “I’m worried that moderate forces will seize this moment to try to destroy us.”

UPDATE 4:45: Rizzo just got back to us and said he’s been actively campaigning and feeling good about his chances. “We have a great team and we’ll have enough resources to reach voters,” Rizzo said. He said that he’s had a stong fundraising push in the last couple weeks since the last campaign financing statement was released, and he noted his endorsements and active support by influential progressives including Ammiano, Campos, and Carole Migden. “We’re doing a lot of retail campaigning, meeting voters and getting the message out.”

Lee appoints Santos, a staunch development advocate, to CCSF board

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Rodrigo Santos, a structural engineer who heads the pro-development advocacy group San Francisco Coalition for Responsible Growth, had already raised an unheard of amount of money in his race for the City College of San Francisco Board of Trustees, $113,153 in just six months, mostly from real estate and development interests.

Today, he got another big boost when Mayor Ed Lee appointed Santos to fill the vacancy on that board created by the recent death of Milton Marks, giving the ambitious Santos a big advantage in the fall contest and perhaps signaling Lee’s support for making deep program cuts to satisfy the accrediting commission’s demand that CCSF cut expenditures and beef up its reserves.

“Tough decisions and reform are what City College needs at this time,” Lee said at a press conference this afternoon, calling Santos “someone who shares my vision of reform and will support the tough decisions ahead.”

Although Lee said Santos “is committed and passionate about education,” Santos hasn’t been active on education issues before running for this office. His passions seem to lie mostly with advocating for developers and opposing government regulations in front of the Planning Commission and other bodies, where he regularly testifies, and in helping fellow conservatives gain power on city boards and commissions.

The appointment continues Lee’s pattern of appointing and relying on controversial conservatives in key areas, from his chief fundraiser and economic adviser, venture capitalist Ron Conway, to his recent reappointment to the Planning Commission of Republican Michael Antonini, who gave Santos the maximum $500 contribution in his CCSF race.

“I join an institution that must be saved. I am absolutely committed to that goal,” Santos told a press conference in the Mayor’s Office. He said that he will work to “achieve consensus” around solutions to the troubled institution’s problems, while also declaring, “We must support the interim chancellor, Pamila Fisher.”

But rather than someone who seeks political compromise, Santos’ reputation is as more of polarizing and ideologically conservative firebrand who regularly criticizes government and progressives as part of the downtown alliance that includes Plan C, Committee on Jobs, Building Owners and Managers Association, the SF Chamber of Commerce, and the Board of Realtors PAC

“I actually find him to be pretty divisive in trying to work on issues at [the Department of Building Inspection],” Debra Walker, who served with Santos on the Building Inspection Commission. “He always seems to come into a situation attacking and I hope he doesn’t bring that to this board.”

Walker, a longtime progressive activist and former supervisorial candidate, said that she and her political allies have long endured nasty attacks from Santos and his CRG bretheren.

“They spend all of their time attacking progressives and he gets pretty intense about attacking rather than working with people,” she said. “CRG is about getting people elected who are conservative, that’s their whole reason for existence, perpetuating the real estate industry’s impact of city policies, which has had a negative impact on the middle class.”

Asked about that reputation by the Guardian, both Lee and Santos denied it and refused to answer follow-up questions. Santos said CRG has a “diverse membership” and told us, “I don’t know why you would cast that as polarizing.”

Yet its board is made up almost exclusively of real estate and development interests who have shown themselves to be politically ambitious, winning key mayoral appointments to the Building Inspection and Small Business commissions and working with mayoral staffers to hold onto key leadership positions, edging out supervisorial appointees in the process.

Sup. John Avalos, who was targeted by a CRG independent expenditure campaign in 2008, said that he researched Santos’ background on education issues and was a little surprised not to find anything. “More than anything, the appointment says more about Lee’s pro business leanings,” Avalos told us.

It was also telling that Lee included two of the most conservative CCSF trustees in his press conference, Natalie Berg and Anita Grier, but that more liberal trustees Chris Jackson and John Rizzo were neither consulted nor notified directly about the appointment. “I’m sorry the mayor didn’t involve us more or let us know,” Rizzo told us.

While Rizzo didn’t endorse Santos – instead backing Jackson, Steve Ngo, and Rafael Mandelman (who Rizzo said “really does have the best interests of the district at heart”) – he didn’t want to offer an opinion on Santos, saying that he wants to work constructively with him to solve the district’s problems: “I welcome him to the board and hope he will welcome the work we’ve been doing.”

Santos told reporters that he starts every work day with an “open house” at his office from 5:20-8am, discussing various issues with anyone who wants to stop by, before getting into his engineering and administrative work for his firm, Santos & Urrutia. “I will bring that same commitment to City College,” he pledged.

Olague faces her challengers during first D5 debate

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Tonight’s inaugural District 5 supervisorial debate will be a key test for Sup. Christina Olague – who has fallen from favor with many progressives after a series of bad votes and prickly or evasive interactions with one-time allies – and a test for the rival candidates who are seeking to become the main progressive champion in one of the city’s most leftist districts.

The elected incumbents on the Board of Supervisors have ended up with surprisingly easy paths to reelection [8/9 UPDATE: with the exception of Eric Mar in D1], leaving D5 – as well as conservative District 7, where FX Crowley, Norman Yee, and Michael Garcia are part of a competitive field seeking to replace termed out Sup. Sean Elsbernd – as the race to watch this year.

Olague has been trying to execute a tough balancing act between the progressive community that she’s long identified with and the moderates she began courting last year with her early support for Mayor Ed Lee, who returned the favor and appointed her to serve the final year of Ross Mirkarimi’s D5 term. But by most accounts, she hasn’t executed the feat well, usually siding with Lee on key votes, but doing so in a waffling way that has frustrated both sides.

Progressive candidates such as Julian Davis and John Rizzo will have plenty of fodder with which to attack Olague as a turncoat, including her votes on the 8 Washington project and Michael Antonini, her strange antics on repealing ranked-choice voting, and her close ties to power brokers such as Rose Pak, who hosted a fundraiser that provided more than half of the $81,333 Olague has raised this year, much of it from developers and other interests outside of D5.

Matt Gonzalez – the former D5 supervisor, board president (from where he appointed Olague to the Planning Commission), and mayoral candidate – was so frustrated with Olague that he withdrew his endorsement of her last month, a decision that her other progressive endorsers are also said to be mulling.

With Mirkarimi tarnished by his ongoing official misconduct probe, the endorsement of Gonzalez could be the most significant in this race, and he told us that he plans to make a decision by Friday, the deadline for submission of ballot statements and a point at which we may hear about other changed or dual endorsements from prominent progressives. Other key nods in the race so far have been Aaron Peskin endorsing Davis and Tom Ammiano endorsing Rizzo, two candidates each vying to become the favorite of the left, with Thea Selby, Hope Johnson, and Andrew Resignato also courting support from the left.

Yet so far, the strongest challenge of Olague seems to be coming from her right, with moderate London Breed leading the fundraising battle with $85,461 as of late June 30, including the maximum $500 donation from venture capitalist Ron Conway – the main fundraiser behind Lee’s election last year – which may be a sign that Olague’s support among moderates is also soft.

Olague may be trying to get back in good with the progressives, last week introducing pro-tenant legislation sought by the San Francisco Tenants Union. But impressions have formed and the pressure is now on, and so far Olague – who didn’t answer our calls seeking comment, another troubling trend – hasn’t performed well in public appearances, mangling organizations’ names and generally not winning over her audiences.

Will Olague step up now that the campaign in entering its public phase? Will another candidate catch fire with progressives? Find out tonight from 6-7:30pm at the Park Branch Library, 1833 Page Street. It’s sponsored by the District 5 Democratic Club, the D5 Neighborhood Action Committee and the Wigg Party.

Or if you miss it, catch the next one on Tuesday, sponsored by the Harvey Milk Democratic Club, starting at 7pm in the Eric Quezada Center, 518 Valencia Street.

Why should a Republican dentist decide what gets built in San Francisco?

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The Board of Supervisors is almost evenly divided on confirming Mayor Ed Lee’s appointment of Republican dentist Michael Antonini to his fourth four-year term on the city’s powerful Planning Commission. After delaying its decision at each of its last two board meetings, the board is expected to finally decide this Tuesday.

Sup. Malia Cohen appears to be the swing vote between the progressive-to-neoliberal bloc of supervisors that would rather see new blood that is more reflective of San Francisco’s values and priorities, and the board’s moderate-to-conservative bloc that wants to keep Antonini there as a sure vote for whatever developers want (a bloc that strangely includes progressive-turned-mayoral-shill Sup. Christina Olague, a former planning commissioner who said during the July 17 discussion that she doesn’t agree with Antonini’s politics and that more diversity was needed on the commission, but that she’s voting for him anyway while offering this hollow threat: “This may be the last time I’ll support this kind of move that doesn’t support a diverse body.”)

Sup. Sean Elsbernd, who led the charge for Antonini, fairly effectively picked apart some of the vague and misleading “diversity” arguments made by some supervisors who oppose the nomination, a discussion that Examiner columnist Melissa Griffin dramatized in yesterday’s paper. And everyone praised Antonini as a hard worker.

But almost the entire discussion skipped over what should be the main point: Why the hell is San Francisco even considering appointing a Republican dentist with no particular land use expertise to a fourth term on the Planning Commission?!?! Shouldn’t someone else – preferably not a rubber stamp for developers – be given a chance to serve the city? And why isn’t Mayor Lee – whose main political benefactor and economic adviser, venture capitalist Ron Conway, is also a longtime Republican – paying a political price for this ridiculous appointment?

While supportive supervisors praised Antonini as thoughtful and fair, I can’t gauge that for myself because this supposed public servant hasn’t returned my phone calls. But I’m not sure it would have mattered because his voting record shows he is a consistent vote for developers and their interests, as even Griffin acknowledged in an otherwise supportive column.

Board President David Chiu came the closest to telling it like it is when he said, “Every person who has reached out to me from the northeast neighborhoods has asked me to oppose this nominee.” And for good reasons: Antonini is a right-winger who votes against neighborhood interests every single time. Not just neighborhood interests, but city interests as well, as shown by the commission’s approval earlier this year of a CPMC project that was found to have fatal flaws that were then exposed by supervisors.

Elsbernd argued that the board should give deference to the appointing authority, noting that he’s often voted for nominees whose politics he doesn’t agree with, including Olague. And there certainly is some value to have different perspectives on appointed bodies. But when we grant a Republican dentist tenure in shaping what this embattled city will look like for generations, and pretend that his ideology is less important than his work ethic, we make a mockery of the political system that is supposed to reflect the values and interests of city residents.

Why do Lee, Chiu, and others want to stifle economic growth?

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Why do Mayor Ed Lee, Board of Supervisors President David Chiu, and San Francisco’s two major daily newspapers want to punish success? Because that’s exactly what their proposal to create a new gross receipts tax for businesses – in which corporations would be taxed more as they grow, thus encouraging economic stagnation – would do.

Right now, the city taxes businesses through a payroll tax, levying taxes based on the number of employees the company has. But under a gross receipts tax that would replace the payroll tax, employees have a disincentive to be productive and efficient and increase their companies’ profits because that would expose those companies to more of the city’s onerous tax burden.

Why would investors and employees want to grow a business in San Francisco when that would only submit them to higher taxes. Clearly, this is anti-business measure that is likely to plunge our local economy back into the depths of the recession. Don’t our leaders understand the need to help this fragile economic recovery?

Okay, okay, in case you haven’t guessed it yet, the previous three paragraphs are satire of the ridiculously overblown and misleading political rhetoric used by Lee and other critics of the city’s payroll tax, which they deride as as “job killer” that makes companies not want to hire new employees.

“Mayor Lee and Board President David Chiu proposed a gross receipts tax as an alternative to the City’s current payroll tax, which punishes companies for growing and creating new jobs in San Francisco,” Lee’s office wrote in a press release it distributed last week.

Yet my argument that a gross receipts taxes “punishes companies for growing” is just as logically sound as Lee’s argument that the payroll tax discourages companies from “creating new jobs” – and both arguments are also complete hyperbolic bullshit. But it’s seductively simple and widely parroted bullshit.

“To attract more companies to San Francisco and encourage existing employers to hire more employees, it is past time to do away with this tax,” our new neighbors down the hall, the editors of the Examiner, wrote in their editorial today, a oft-repeatedly refrain from the Chronicle and SF Chamber of Commerce as well. It later added that switching tax methods “wouldn’t penalize companies for employing people or paying them well. And city policy wouldn’t give employers any incentive to shed employees during a downturn.”

But the reality is that the 1.5 percent payroll tax is too small to really be a factor in the decision by corporations to add new employees, something they are already loath to do unless forced to by rising demand. It is simply one imperfect gauge of the size of a company and its ability to pay local taxes, just as the gross receipts tax is.

Health insurance costs, which Lee’s CPMC deal doesn’t adequate contain, is a far bigger factor in a company’s hiring decisions. So is commercial rent, which Lee’s corporate welfare policies are causing to go up downtown and throughout the city.

For decades, conservatives have tried to sell the general public on bogus trickle down economic theories that we all benefit from corporate tax cuts and that people will simply stop working if you tax them, ideas that should have been discarded as they were discredited. But they’re back with a vengeance, in supposedly liberal San Francisco of all places, actively peddled by key Lee supporters like billionaire venture capitalist Ron Conway, who only recently dropped his Republican party affiliation in favor of declined to state.

But it’s time to call out this voodoo economics for what it is: self-serving bullshit that ought to be rejected by citizens of a city that prides itself as being more educated and enlightened than the rubes in the flyover states that have been so thoroughly manipulated by the Republican Party and Blue Dog Democrats, to the detriment of our entire country.

Now, the Examiner’s argument that the business tax reform proposal would broaden and stabilize the tax base is a sound and meaningful argument, which is why the concept enjoys widespread support from across the ideological spectrum and is worth doing (although progressives rightful argue that if the tax base is being broadened then the city should reap some benefits from that, logic that Lee inexplicably resists).

Yet as the City Hall debates that will shape the details of business tax reform begin in a couple of weeks, it’s time to drop this misleading “job killer” label that has been promulgated by Republicans and other fiscal conservatives over the last decade and have an honest debate over what’s best for San Francisco’s private and public sectors.

Restore Hetch Hetchy conjures corporate boogiemen

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The campaign for a ballot measure that seeks to create a plan for tearing down the O’Shaughnessy Dam – San Francisco’s main source of clean water and power – and turning the Hetch Hetchy Valley into a tourist destination must be having a hard time collecting the 9,702 signatures it needs by July 9 because it is resorting to conjuring up unlikely boogiemen to win public sympathy.

Restore Hetch Hetchy just sent out a press release accusing opponents of the measure of preparing a “tobacco industry-style negative ad blitz” funded by venture capitalist Ron Conway and other corporate evildoers.

“Just like the tobacco industry’s big money confused so many people into opposing the Prop. 29 tobacco tax they initially supported, now we’re seeing corporate money flowing like a dirty river right into the coffers of what promises to be yet another nasty negative campaign,” said Mike Marshall, campaign director for the Yosemite Restoration Campaign, which his Restore Hetch Hetchy group is sponsoring.

It cites a statement made by the Bay Area Council – which they helpfully remind us includes “PG&E, Chevron, and Mitt Romney’s former company Bain & Co.” – that Conway has pledged $25,000 to the opposition campaign.

Where do I even begin to unravel this ridiculously hyperbolic and misleading appeal? Let’s start with the fact this has nothing to do with Big Tobacco, Big Oil, Big Capitalists, or Big Utilities. It isn’t corporations that are standing in the way of spending billions of dollars to tear down the dam and replace the lost power and water – it is just about every elected official in the region, from across the political spectrum, and any San Franciscan who has at least as much reason and sentimentality. As for PG&E, I’m sure the utility would just love to see San Francisco’s main source of electricity torn down, which would only expand its monopolistic control of our energy system.

Frankly, the misleading release reeks of desperation, and when I asked campaign consultant Jon Golinger whether the campaign is in trouble, he responded, “We are certainly quite clear this is a David versus Goliath situation, or whatever analogy you want to make.”

Okay, how about a Fantasy versus Reality situation? Or a Past versus Present situation? Or San Franciscans versus Dan Lungren, the right wing member of Congress who has been pushing to remove the dam supposedly because he loves Yosemite Valley so much and wants to create another one (or, more likely, because he wants to tweak the San Francisco liberals and get us fighting among ourselves over something pointless and distracting).

I’m sorry, but I just can’t get my head around the appeal of this idea, which the Sacramento Bee editorial writers actually won a Pulitzer Prize for conjuring up in 2004, certainly another sign of the modern decline in journalism standards. I get that legendary conservationist John Muir was right and this dam probably shouldn’t have been built, and that it might be kinda cool to have another beautiful valley to hike in once the sludge dries up over a few decades.

But when we can’t even find adequate funding for public transit, renewable energy sources, and the multitude of other things that really would help the environment – not to mention while we’re heading into an era when water supplies in the Sierras could be depleted by climate change – do we really want to spend billions of dollars to fetishize one valley and destroy the engineering marvel that is one of the best and most energy-efficient sources of urban water in the country?

Or am I just shilling for Big Tobacco and Mitt Romney because that’s how I see it?

Mecke joins crowded District 5 supervisorial race

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Progressive activist Quintin Mecke jumped into the District 5 supervisorial race today, echoing gentrification concerns raised this week by the Guardian and The New York Times and promising to be an independent representative of one of the city’s most progressive districts, a subtle dig at Sup. Christina Olague’s appointment by Mayor Ed Lee.

“The City is at an economic crossroads. As a 15 year resident of District 5, I cannot sit idly by while our City’s policies force out our residents and small businesses, recklessly pursuing profits for big business at whatever cost,” he began a letter to supporters announcing his candidacy, going on to cite the NYT article on the new tech boom that I wrote about earlier this week.

“What we do next will define the future of San Francisco; the city is always changing but what is important is how we choose to manage the change. One path leads to exponential rent increases, national corporate chain store proliferation, and conversion of rent-controlled housing. The other path leads to controlled and equitable growth, where the fruits of economic development are shared to promote and preserve what is great about this City and our district,” Mecke wrote.

Mecke came in second to Gavin Newsom in the 2007 mayor’s race and then served as the press secretary to Assembly member Tom Ammiano before leaving that post last week to run for office. Mecke joins Julian Davis and John Rizzo in challenging Olague from her left, while London Breed and Thea Selby are the leading moderates in a race that has 10 candidates so far, the largest field in the fall races.

Although he never mentioned Olague by name, Mecke closed his message by repeatedly noting his integrity and independence, a theme that is likely to be a strong one in this race as Olague balances her progressive history and her alliance with the fiscally conservative mayor who appointed her.

“Politics is nothing without principles; and it’s time now to put my own principles into action in this race,” Mecke wrote. “District 5 needs a strong, independent Supervisor. I am entering this race to fight for the values that I believe in and to fight to preserve what is great about District 5 and the city. I have brought principled independence to every issue I’ve worked on and that’s what I’ll continue to bring to City Hall.”

In an interview with the Guardian, Mecke said he sees the campaign as a “five-month organizing project” to reach both regular voters and residents of the district who haven’t been politically engaged, including those in the tech sector. He’d like to see the perspective of workers represented in discussions about technology, not simply the narrow view of venture capitalist Ron Conway that Mayor Lee has been relying on.

“Local politics needs new blood,” Mecke said, “it needs to hear from these people.”

Tax equity

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steve@sfbg.com, yael@sfbg.com

A broad consensus in San Francisco supports reforming the city’s business-tax structure by replacing the payroll tax with a gross receipts tax through a November ballot measure. But the devil is in the details of how individual tax bills are affected, which has divided the business community and given a coalition of labor and progressives the opportunity to overcome the insistence by Mayor Ed Lee and other pro-business moderates that any change be revenue-neutral.

Service Employees International Union Local 1021, San Francisco’s biggest city employee union, last month launched a campaign demanding that the measure increase city revenue, setting a goal of at least $50 million, which represents the amount the city has lost annually since 2001 when 52 large downtown corporations sued to overturn the last gross receipts tax. The union is threatening to place a rival measure on the fall ballot.

“This call for it to be revenue-neutral didn’t make a lot of sense given all the reductions in city services in recent years,” said Chris Daly, the union’s interim political director. “It’s fair to at least get the money back that we lost in 2001.”

The union and the city recently agreed on a new contract that avoids more of the salary cuts that SEIU members have taken in recent years, but workers could still face layoffs under a new city budget that Lee is scheduled to introduce June 1. Lee, Board of Supervisors President David Chiu, and business leaders working on the tax-reform proposal have until June 12 to introduce their ballot measure.

But they don’t yet have an agreement on what the measure should look like — largely because the technology sector (led by billionaire venture capitalist Ron Conway, the biggest fundraiser for Lee’s mayoral campaign last year), the traditional businesses represented by the San Francisco Chamber of Commerce, and the small business community are pushing different interests and priorities.

“The technology industry has to realize they have a tax obligation like any member of the business community does,” Jim Lazarus, the Chamber’s vice president for public policy, told us.

Conway is reportedly using his influence on Lee to push for a model that keeps taxes low for tech companies — even if that comes at the expense of other economic sectors, such as commercial real estate and big construction firms, which will likely see their tax obligations increase. Yet some Chamber counter-proposals could end up costing small businesses more money, creating a puzzle that has yet to be worked out.

But one thing is clear: The business leaders don’t want to see overall city revenue increase. “If there’s anything that is unifying in the business community is that it’s revenue neutral,” small business advocate Scott Hauge told us. “We’re not going to increase revenues, that’s just a given, so if we have to do battle then so be it.”

SEIU and other members of progressive revenue coalition that has been strategizing in recent weeks are hoping to exploit the divisions in the business community and arrive at a compromise that increases revenue, and if not then they say they’re willing to go to the ballot with a rival measure.

“We’re working on trying to recover what we lost in the 2001 settlement and then some,” Sup. John Avalos, who has been working with the progressive coalition, told us. “We have to have something going to the ballot that is revenue generating.”

 

 

LABOR’S CAMPAIGN

For labor and progressives, this is an equity issue. Workers have been asked to give back money, year after year, despite the fact that big corporations have been doing well in recent years but haven’t contributed any of that wealth to the cash-strapped city. Labor leaders say that after they supported last year’s pension-reform measure, it’s time for the business community to support city services.

“When we talked about Prop C, we said if our members are doing this with our pensions now, we’ll see next year what businesses do with business tax,” said Larry Bradshaw, vice president of SEIU Local 1021. “Then we read about secret meetings where the labor movement was excluded from those talks.”

Anger over the “secret meetings” of business leaders that Lee assembled to craft the tax reform measure — meetings at which no labor leaders were included — helped inspire the fierce protest campaign that defined the SEIU’s recent contract negotiations.

In the first weeks of negotiations, workers were already up in arms. Protest marches at SF General Hospital and Laguna Honda Hospital brought hundreds of hospital workers to the streets. These hospitals serve some of the city’s poorest populations: Laguna Honda patients are mostly seniors on Medi-Cal and General is the main public hospital serving the city’s poor.

On April 5, city workers got creative with a street theater protest that involved six-story projections on the iconic Hobart Building. Protesters dressed as rich CEOs and handed out thank-you cards to commuters at the Montgomery transit station. SEIU’s “The City We Need, Not Downtown Greed” campaign included a website (www.neednotgreed.org), slick video, and direct mailers portraying CEOs as panhandlers on the street asking city residents, “Can you spare a tax break?”

The most dramatic civil disobedience came on April 18, when more than 1,000 workers rallied outside City Hall — along with several progressive supervisors — and then marched to Van Ness and Market. Protesters blocked the street, resulting in 23 arrests. At that point, increases in health care cuts and pay cuts to city workers were still on the table.

That was followed the next week by hundreds of workers staging noisy demonstrations in City Hall, and then again on May Day when SEIU workers were well represented in actions that took over parts of the Financial District.

In the end, the demands of union representatives were met in the contract agreement. Health care cost increases and pay cuts were eliminated, and a 3 percent pay raise will kick in during the two-year contract’s second year, a deal overwhelmingly approved by union members. Labor leaders hope to use that momentum to force a deal with the Mayor’s Office on the tax reform measure — which some sources say is possible. Otherwise, they say the campaign will continue.

“We may end up on the streets gathering signatures soon,” Daly said. “We need to figure it out in the next few weeks.”

 

 

THOSE DEVILISH DETAILS

The Controller’s Office released a report on May 10 that made the case for switching to a gross receipts tax and summed up the business community’s meetings, and the report was the subject of a joint statement put out by Lee and Chiu. “After months of thorough analysis, economic modeling and inclusive outreach to our City’s diverse business community, the City Controller and City Economist have produced a report that evaluates a gross receipts tax, a promising alternative to our current payroll tax, which punishes companies for growing and creating new jobs in our City'” the statement said. “Unlike our current payroll tax, a gross receipts tax would deliver stable and growing revenue to fund vital city services, while promoting job growth and continued economic recovery for San Francisco.”

Daly and Avalos say progressives agree that a gross receipts tax would probably be better than the payroll tax, and they say the controller’s report lays out a good analysis and framework for the discussions to come. But despite its detailed look at who the winners and losers in the tax reform might be, Daly said, “We haven’t seen an actual proposal yet.”

Lazarus made a similar statement: “Nobody likes the payroll tax, but the devil is in the details.”

But it’s clear some businesses those with high gross receipts but low payrolls — would pay more taxes. For example, the finance, insurance, and real estate sector now pays about 16 percent of the $410 million the city collects in payroll taxes. That would go up to about 21 percent under a gross receipts tax.

“Several industries that could face higher taxes under the proposal, such as commercial real estate, large retailers, and large construction firms, felt the increase was too sharp,” the report said under the heading of “Policy Issues Arising From Meetings with Businesses.”

The report highlighted how the change would broaden the tax base. Only about 7,500 businesses now pay the payroll tax (others are either too small or are exempt from local taxation, such as banks), whereas 33,500 companies would pay the gross receipts tax, which the report identified as another issue to be resolved.

“While some businesses appreciated the base-broadening aspect of the gross receipts proposal, others felt that too many small businesses were being brought into the Gross Receipts tax,” the report said. Hauge also told us that he fears a tax increase on commercial real estate firms could be passed on to small businesses in the form of higher rents. “I don’t want to see the business community split,” Hauge said, although it’s beginning to look like that might be unavoidable. The big question now is whether progressives and labor can find any allies in this messy situation, and whether they’ll be able to agree on a compromise measure that all sides say is preferable to competing measures.

On Guard!

4

news@sfbg.com

 

VICTORY’S MUDSLINGING

Hit pieces are common in San Francisco politics. So, sadly, are negative mailers funded by outside independent expenditure committees that can raise unlimited money.

But it’s highly unusual for an organization devoted to electing queer candidates to fund an attack on a candidate who is endorsed by both leading LGBT organizations and is, by all accounts, an ally of the community.

That’s what happened last week when the Washington-based Victory Fund — the leading national organization for LGBT political candidates — sent out a bizarre mailer blasting City Attorney Dennis Herrera for taking money from law firms that do business with the city.

The Victory Fund has endorsed former Sup. Bevan Dufty, who is the most prominent LGBT candidate in the mayor’s race. That’s to be expected; it’s what the Victory Fund does.

But why, in a race with 16 candidates, would the fund go after Herrera, who has spent much of the past seven years fighting in court for marriage equality? Why try to knock down a candidate who has the support of both the Harvey Milk Club and the Alice B. Toklas Club?

It’s baffled — and infuriated — longtime queer activist Cleve Jones, who is a Herrera supporter. “I have long respected the Victory Fund,” Jones told us. “But I’ve never seen them do what they did here. And it’s going to undermine the fund’s credibility.”

Jones dashed off an angry letter to the fund’s president, Chuck Wolfe, saying he was “appalled that this scurrilous attack, in the waning days of a mayoral campaign, would go out to the San Francisco electorate under the name of the Victory Fund.

“You really screwed up, Chuck, and I am not alone in my anger.”

We couldn’t get Wolfe on the phone, but the fund’s vice president for communications, Denis Dison, told us that the mailer “is all about fighting for our endorsed candidates.”

So how does it help Dufty, in a ranked-choice election, to attack Herrera? (In fact, given the dynamics of this election, the person it helps most is probably Mayor Ed Lee). Dison couldn’t explain. Nor would he say who at the fund decided to do the attack mailer.

But there are a couple of interesting connections that might help explain what’s going on. For starters, Joyce Newstat, a political consultant who is working for the Dufty campaign, is active in the Victory Fund, sits on the board of the fund’s Leadership Institute, and, according to a March 24 article in the Bay Area Reporter, was among those active in helping Dufty win the Victory Fund endorsement.

But again: Supporting Dufty is one thing. Attacking Herrera is another. Who would want to do that?

Well, if there’s one single constituency in the city that would like to sink Herrera, it’s Pacific Gas and Electric Co. And guess what? PG&E Governmental Affairs Manager Brandon Hernandez chairs the Victory Fund’s Leadership Institute. PG&E’s corporate logo appears on the front page of the fund’s website, and the company gave the Victory Fund more than $50,000 in 2010, according to the fund’s annual report.

Dison insisted that neither Hernadez nor anyone else from PG&E was involved in making the decision to hit Herrera and said the money went to the Leadership Institute, which trains LGBT candidates, not directly to the campaign fund.

Maybe so –- but the folks at the private utility, who are among the top three corporate donors to the Victory Fund, have to be happy. (Tim Redmond)

 

 

HERRERA HIT BACKFIRES

Herrera was also the target of another attack on his LGBT credentials last week, this one by the San Francisco Chronicle, which ran a front page story on Oct. 26 in which anonymous sources said he raised doubts in private City Hall meetings about San Francisco’s decision to issue same-sex marriage licenses in 2004. It was entitled, “Fight turns ugly to win gay votes in mayor’s race.”

Despite trying to couch the hit in passive language, writing that ” a surprise issue has emerged” based on accusations “leveled by several members of former Mayor Gavin Newsom’s administration,” it was clear that it was the Chron that made it an issue, for which the newspaper was denounced by leaders of the LGBT community from across the political spectrum at a rally the next day.

“Those who are saying this now anonymously are as cowardly as Dennis and Gavin were courageous back then,” said Deputy City Attorney Theresa Stewart, the lead attorney who defended San Francisco’s decision in 2004 to unilaterally issue marriage licenses to same-sax couples, in defiance of state and federal law, which eventually led to the legalizing of such unions. “We can’t have our community turn on us for petty political gain.”

“WTF, Chronicle?” was how Assemblymember Tom Ammiano began his speech, going on to lay blame for the attack on surrogates for Mayor Ed Lee. Ammiano also called out the mayor for campaign finance violations by his supporters, for undermining the Healthy San Francisco program that was created by Ammiano’s legislation, and for repeatedly ordering police raids on the OccupySF encampment.

“How about some fucking leadership?!” Ammiano said.

Cleve Jones, an early gay rights leader who marched with Harvey Milk, also denounced Lee and his supporters for cronyism, vote tampering, money laundering, and the “fake grassroots” efforts of the various well-funded independent expenditure campaigns, which he said have fooled the Chronicle.

“To the Chronicle and that reporter — really? — this is what you do two weeks before the election? You should be ashamed of yourself,” Jones said. “How stupid do you think we are?”

Yet Chronicle City Editor Audrey Cooper defended the article. “Clearly, I disagree [with the criticisms],” she told the Guardian. “I personally vetted every one of the sources and I’m confident everything we printed is true.” She also tried to cast the article as something other than a political attack, saying it was about an issue of interest to the LGBT community, but no LGBT leaders have stepped up to defend the paper.

Beyond criticizing the obvious political motivations behind the attack, speakers at the rally called the article bad journalism and said it was simply untrue to suggest that Herrera didn’t strongly support the effort to legalize same-sex marriage from the beginning.

“I can tell you that Dennis never once shrank from this fight. I was there, I know,” Stewart said, calling Herrera “a straight ally who’s devoted his heart and soul to this community.”

Sen. Mark Leno, who introduced the first bill legalizing same-sex marriage to clear the Legislature, emphasized that he isn’t endorsing any candidates for mayor and that he didn’t want to comment on the details of the article’s allegations. But he noted that even within the LGBT community, there were differences of opinion over the right timing and tactics for pushing the issue, and that Herrera has been a leader of the fight for marriage equality since the beginning.

“I am here to speak in defense of the character and integrity of our city attorney, Dennis Herrera,” Leno said, later adding, “I do not appreciate when the battle for our civil rights is used as a political football in the waning days of an election.”

Molly McKay, one of the original plaintiffs in the civil lawsuit that followed San Francisco’s actions, teared up as she described the ups and downs that the case took, working closely with Herrera throughout. “But this is one of the strangest twists I can imagine,” she said of the attack by the Chronicle and its anonymous sources. “It’s ridiculous and despicable.”

Representatives for both the progressive Harvey Milk LGBT Democratic Club and fiscally conservative Alice B. Toklas LGBT Democratic Club also took to the microphone together, both saying they often disagree on issues, but they were each denouncing the attack and have both endorsed Herrera, largely because of his strong advocacy for the LGBT community.

Sup. Scott Wiener called Herrera, “One of the greatest straight allies we’ve every had as a community.”

When Herrera finally took the microphone, he thanked mayoral opponents Joanne Rees and Jeff Adachi for showing up at the event to help denounce the attack and said, “This is bigger than the mayor’s race. It’s bigger than me.”

He criticized those who would trivialize this issue for petty political gain and said, “It was my pleasure and honor to have been a part of this battle from the beginning — from the beginning — and I’ll be there in the end.” (Steven T. Jones)

 

 

BUYING REFORM

UPDATE: THIS ITEM HAS BEEN CHANGED FROM THE PRINT VERSION TO CORRECT INACCURATE INFORMATION DEALING WITH WHETHER PAST INIATIVES CAN BE CHANGED

October yielded tremendous financial contributions from real estate investors and interest groups for Yes on E, feeding fears that the measure will be used to target rent control and development standards in San Francisco.

Sup. Scott Wiener has been the biggest proponent for Prop E since May 2011. He argues that the Board of Supervisors should be able to change or repeal voter-approved ballot measures years after they become law, saying that voters are hampered with too many issues on the ballot. Leaving the complex issues to city officials rather than the voters, makes the most sense of this “common sense measure”, Wiener calls it.

But how democratic is a board that can change laws approved by voters? Calvin Welch, a longtime progressive and housing activist, has his own theory: Wiener is targeting certain landlord and tenant issues that build on the body of laws that began in 1978, when San Francisco voters first started adopting rent control and tenants protection measures. Yet the measure will only allow the board to change initiatives approved after January 2012.

“That is what the agenda is all about — roughly 30 measures that deal with rent control and growth control,” he said. Critics say  the measure will leave progressive reforms vulnerable to a board heavily influence by big-money interests. Although Wiener denies Prop E is an attack on tenants, who make up about two-thirds of San Franciscans, the late financial support for the measure is coming from the same downtown villains that tenant and progressive groups fight just about every election cycle. High-roller donations are coming straight from the housing sector, which would love a second chance after losing at the ballot box.

Contributions to Yes on E include $15,000 from Committee on Jobs Government Reform Fund, $10,000 from Building Owners and Managers Association of SF PAC, another $10,000 from high-tech billionaire Ron Conway, and $2,500 from Shorenstein Realty Services LP. Then — on Oct. 28, after the deadline for final pre-election campaign reporting — the San Francisco Association of Realtors made a late contribution of another $18,772, given through the front group Coalition for Sensible Government.

Prop. E is organized so that the first three years, an initiative cannot be subject to review. However after four years, a two-thirds majority vote by the board could make changes, and after sevens years, a simple majority could do so.

 (Christine Deakers)

Vote for three but not Ed Lee

16

OPINION Halloween 2011. Next week San Francisco will choose a new mayor. Is this a masquerade? Who is behind Mayor Ed Lee’s mask?

I’ll call it exactly how I see it: I am disappointed in Ed Lee. I’ve known him since before I was first elected to the Board of Supervisors in 2000. I wanted to be hopeful, but I actually can’t say that I’m surprised. Ed Lee has always been a go-along-to-get-along bureaucrat who has moved up the feeding chain by doing the bidding of former Mayor Willie Brown and Willie’s loyal lieutenant Rose Pak. I had a fantasy that maybe Ed would rise to the occasion, become his own person, and emerge as an independent leader free of those that orchestrated his appointment to “interim” mayor.

But in the first year since appointment (in one of the most masterful political plays since Abe Ruef got Eugene Schmitz installed as mayor in 1902), Ed has consistently sided with the powers and their “City Family” that “made” him. Even I was astounded when Ed moved legislation to displace hundreds of hotel workers at San Francisco’s Fairmont Hotel. And I was actually shocked when he did the bidding of the right-wing Restaurant Association and vetoed common-sense legislation to stop the exploitation of local restaurant workers.

His list of disappointments grow. He orchestrated the demolition of more than 1,500 units of rent controlled housing at Park Merced. Then he had the audacity to laud Pacific Gas and Electric Co. as a “great local corporation” on the anniversary of the lethal San Bruno pipeline explosion.

Several pols have been credited with the statement that “money is the mother’s milk of politics.” Well, Willie and Rose and their friends at the Chamber of Commerce got milk! Willie Brown is fundraising for three different committees to get Lee elected, Rose Pak started two different fundraising committees of her own, and right-wing Republican billionaires like Ron Conway and right wing corporations like Pacific Gas and Electric are lining up to throw money into the coffers.

Why? Because Ed is their guy.

The proof is right in front of us. All of Willie’s trademark slights of hand are resurfacing in Ed Lee’s friends’ bag of tricks: money laundering, pay to play politics, allegations of voter fraud. These are all hallmarks of Brown and his cronies, all executed under the visage of the supposedly humble Ed Lee. And voters shouldn’t fall for it. Because if we do, we’ll go back to the days before Gavin Newsom when backroom deals, self-dealing, cronyism and out-and-out corruption were the rule of the day.

It is no coincidence that in a year gripped by the divide between the 99 and 1 percent, the latter is working feverishly to elect Lee. If you don’t believe me, look it up on the Ethics Commission website (sfgov.org/ethics). PG&E alone has contributed at least $50,000 to one such “independent” committee.

I know this is the first race for mayor with ranked choice voting—and it is confusing. That’s a concern. But frankly, at this point all I care about is that voters understand not to mark Ed Lee anywhere on their ballot.

The good news? The outcome of the Mayor’s race is far from a foregone conclusion. San Franciscans are seeing through the millions of corporate dollars being spent on behalf of Lee.

You have a choice—three, in fact. And you should use them strategically, because you can make a difference by voting not just with your heart, but also with your mind. That means making sure you do your research and vote for three candidates who represent your values—and have a chance to win.

The Guardian has endorsed three candidates—Avalos, Herrera, and Yee—who have demonstrated enough of a commitment to progressive values and an aversion to the powers of the once-dormant machine that, like a vampire, is attempting to rise from the crypt. These three candidates also happen to have the best shot to beat Lee. Your votes for all three—in any order—are your best guarantee not to elect Ed Lee.

Vote for three and don’t vote for Lee!

Aaron Peskin chairs the San Francisco Democratic County Central Committee.