Volume 42 Number 03

October 17 – October 23, 2007

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Google’s gentrification shuttle

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OPINION Cari Spivek thought it was wasteful that so many employees like her were driving to work in different cars. Her idea became the Google Shuttle, a private transit network made of biodiesel-powered, wi-fi-enabled, air-conditioned buses transporting employees from around the Bay Area to Google headquarters in Mountain View, south of San Francisco.

At first it was used by a hundred employees from the entire area. But Google has been growing and now shuttles more than 1,200 Googlers every day, many from the Mission District, which has recently added a second bus.

Anyone who has ever taken a population class knows that every migration has a countermigration. In addition to all of the Google employees already living in the city and doing less environmental damage by taking the shuttle, many employees are choosing to move to the city because there is now a comfortable shuttle to take them to work. And many want to be a short walk to one of the stops.

When one takes into account the cost of gentrification, which is destroying the arts in San Francisco and forcing many low-income workers out of the city, the Google Shuttle no longer looks so environmentally friendly. Low- and middle-income wage earners are forced to commute to the neighborhoods they can no longer afford to live in. Their commute can take more than an hour, and they can’t afford environmentally friendly cars.

It’s very possible the Google Shuttle is doing as much harm to the environment as good. And the young Google employees, many making well over $100,000 a year, who move to places like the Mission for the art and diversity, are unintentionally devastating the neighborhood they love. Soon there will be no economic diversity in the Mission, and the young rich who have driven the rents so high will wonder how they ended up living in a place that resembles Greenwich, Conn.

Ending the Google Shuttle is not the only solution. It’s not even the best solution. A much better alternative would be for Google to make substantial investments in low- and middle-income housing in the areas it’s transforming, like the Mission and the Tenderloin, where its employees are clustered.

Google could give back to the community by donating $5,000 per employee living in the Mission to a fund that offsets the costs incurred by tenants forced from their homes by owner move-ins or loss of primary leaseholder, with the rest of the money going to fund neighborhood artists and new middle-income housing. Annually, we’re talking between $5 million and $10 million, a cost Google could easily afford. It would be good for Google in other ways, keeping this an area its creative employees still want to live in, before they follow the rest of the artists to Portland, Ore., or Detroit.

It’s hard for people to admit that their mere presence is doing damage, that their ability to pay exorbitant rent is destroying the neighborhood they love. But the Mission cannot endlessly absorb renters with six-figure incomes. In many ways, including the use of biodiesel shuttle buses, Google has behaved like a responsible profitable corporation should. Now it has a responsibility to help the Mission maintain its diversity. Otherwise, Google needs to stop shuttling its employees from 24th and Mission and stop encouraging them to live in a neighborhood that simply can’t afford them.

Stephen Elliott

Stephen Elliott is the author of six books. He has lived in the Mission for eight years.

Green City: Meeting the Climate Challenge

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› news@sfbg.com

GREEN CITY It is easy to become discouraged by environmental problems, but a few San Franciscans are reminding us that we have collective power to make positive change. And we might even have a little fun along the way.

Paul Scott came up with the idea of the San Francisco Climate Challenge, a citywide contest to reduce household energy consumption. Scott is a lawyer and founding member of One Atmosphere — a nonprofit created by North Beach neighbors concerned with sustainability and conservation. "I think a lot of folks are concerned about climate change, but frustrated by the seeming inaction by the government to solve the problem," Scott told the Guardian. "The purpose of the San Francisco Climate Challenge is to give people something they can do right now."

A joint project by One Atmosphere, the Sierra Club, and SF Environment, the Climate Challenge officially starts Oct. 25 and registration ends the day before. Two top prizes of $5,000 (cash!) will be awarded for greatest overall energy savings and greatest percentage reduction in energy use. Winners will be determined by comparing last November’s Pacific Gas and Electric Co. bill with this November’s bill, so participants must pay their own utility bill and have lived in their current home — apartment, condo, or house — for at least a year.

Private residences account for about 20 percent of San Francisco’s carbon emissions, so the SF Climate Challenge is specifically focused on reducing household emissions. "Hopefully, this contest will increase people’s awareness of what they can do and the environmental damage done by normal activities," said Jonathan Weiner of One Atmosphere. "Simple changes can have significant impacts."

And what are some of these simple changes to make at home? Turn off lights when you leave a room, replace incandescent lightbulbs with compact fluorescents, wear a sweater instead of turning up the heat. And something that people often forget is that appliances use energy even when they’re turned off. So plug your television and stereo into a power strip and, when you’re done watching TV or listening to music, turn that power strip off.

"Eliminating unnecessary, wasteful use and being more efficient with the energy we do use is important," said Aaron Israel of the Sierra Club’s San Francisco chapter. "But you don’t have to eat in the dark or live like a monk. There are very easy things you can do if you’re just a little bit more aware."

Contest participants can sign up for the Climate Challenge as individuals or teams. So far, there teams have been created by neighborhoods, social groups, and sports teams. Even the Board of Supervisors has formed a team, with supervisors Michela Alioto-Pier, Aaron Peskin, and Sean Elsbernd already committed to participating. Word on the street is that even the Mayor’s Office may compile a team.

The Climate Challenge is also about building community. "This is an initiative to bring together a bunch of folks around how we, as residents in the city, can do things differently," said Mark Miller of One Atmosphere. "The more we see how we’re connected, the more we see how much we affect each other."

Making simple, painless changes at home is a great place to start taking responsibility for the health of our communities, city, and planet. Hopefully, the San Francisco Climate Challenge will inspire people to think about the environment in terms of the positive changes we can make instead of the overwhelming problems we feel helpless to fix.

"We need to paint a vision of our own lives that is better in the future than it is right now, so we are all motivated to take action," said Cal Broomhead of SF Environment. "How can we transform our neighborhoods so they’re more sustainable? We have collective power to make change."

To register for the San Francisco Climate Challenge, or to see a list of sponsors, prizes, and energy-saving tips, go to www.sfclimatechallenge.org. Or attend this upcoming event to learn more: ClimatePalooza, Fri/Oct. 19, 7 p.m., $12 or free with sign up for the SF Climate Challenge, at the Swedish American Hall, 2170 Market, SF. Live music by Ryan Auffenberg, Hyim, Valerie Orth, Sheldon Petersen, and Pixie Kitchen. Call (415) 861-5016 for more information. *

Comments, ideas, and submissions for Green City, the Guardian‘s weekly environmental column, can be sent to news@sfbg.com.

41st Anniversary Special: Connect the Connects

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› steve@sfbg.com

Mayor Gavin Newsom has created an entirely new branch of city government that is private, funded by undisclosed corporate donations, staffed by volunteers who are often city employees or his campaign donors, and unaccountable to any internal controls or outside scrutiny.

Yet rather than being a cause for concern, Newsom has touted San Francisco Connect and its four subprograms — Project Homeless Connect, Tech Connect, Green Connect, and Project Children and Families Connect — as his proudest achievement, a model he is actively exporting to other cities.

According to its Web site, "The mission of SF Connect is to mobilize residents and sectors for a stronger San Francisco. SF Connect is about engaged residents volunteering their talent and time for the City, as well as innovative partnerships between the private, public, and social [nonprofit] sectors."

Green Connect (and "partners" that include Pacific Gas and Electric Co. and Oracle), does cleanup and tree planting. Tech Connect (and partners Netgear.com and Hewlett Packard) works on "digital inclusion." And Project Homeless Connect (Gap, Visa, AT&T, Blue Shield, IBM, the Hotel Council, and Charles Schwab among its partners) does homeless outreach events.

During his endorsement interview with the Guardian, we asked Newsom about the programs and how they allow the private sector to take a more active role in delivering public services on behalf of city government, sometimes with the help of public resources. Is that a model he likes?

"Oh, you’d better believe that!" Newsom said. "Am I for actual responsibility and civic service and duty? You’d better believe it. I think it should be mandated for everyone who graduates from our public education system. I think they should be forced to give back and contribute in community service. What the Connects are all about is community service and connecting the dots. The Rec Connects, which may be what you’re referring to, is a way of leveraging resources and getting more of our [community-based organizations] involved."

All of those involved with SF Connect also seem to sing its praises. But there’s another side to Newsom’s feel-good approach to delivering public services: they often displace social services delivered by qualified providers, supplement underfunded city services with private providers rather than simply fixing and funding them, provide wedges for corporations to take over public spheres (as the Google-EarthLink wi-fi deal through Tech Connect very nearly did), and allow corporations to buy influence with unregulated contributions to a politician’s pet program.

"If you look at the ways of privatizing, volunteering is one, and it sounds nice," said Margot Reed, an organizer with Service Employees International Union Local 1021.

Yet that volunteerism sometimes replaces services that previously were provided by government or nonprofit agencies whose contracts and performance could be scrutinized. But Newsom’s approach through SF Connect doesn’t allow that kind of transparency.

To illustrate the problem, the Guardian made a Sunshine Ordinance records request to the Mayor’s Office, asking for a complete breakdown of the budgets of all the Connect programs. The office refused to provide the information, referring us instead to SF Connect, but that organization has a history of refusing to provide the Guardian and other media organizations with its budget and donor lists.

Last year the San Francisco Chronicle fought the Newsom administration for two months to get it to reveal the donor list, finally winning the release of the names of donors who had agreed to be disclosed (some asked for their money to be returned instead). SF Connect’s donors included PG&E, which gave $25,000; Google investor Ron Conway, who gave $100,000; Wells Fargo Bank, which gave $20,000; and Carmen Policy (the former 49ers top dog who was recently named to push a June ballot measure on a new stadium that Newsom wants to build), who gave $2,500. Other donors included Newsom appointees, contributors, and companies that do business with the city.

When we tried to get a current list of donors, staffers didn’t respond to Guardian phone calls or e-mails.

We also asked Newsom’s office for a complete breakdown of city staff time, money, and other resources that have gone into supporting the Connect programs, knowing that city staff have been involved in their events and e-mails have gone out from city offices.

"There is no line item in any budgets nor any reporting within our office on time spent coordinating with SF Connect," Joe Arellano from the Mayor’s Office of Communications responded by e-mail after repeated requests for answers.

That’s probably because there seems to be no clear line drawn between where the private SF Connect ends and where the public-sector Mayor’s Office begins. Call the phone number on the San Francisco Connect Web site for Project Homeless Connect, and it rings at the desk of Judith Crane in the Department of Public Health.

Even getting a list of privatization proposals by Newsom hasn’t been easy. The Mayor’s Office cited technical inadequacies when we asked it to search all of Newsom’s speeches, press releases, e-mails, and other documents for the words "public-private partnership," a favorite Newsom phrase.

We know that he’s unsuccessfully sought to privatize jail health services, security at the Asian Art Museum, and the city’s golf courses (see "Bilking the Links," page 22) and to create a citywide wireless Internet system run by Google and EarthLink.

But ask Newsom about it, as we did, and you’ll hear his semantic gymnastics: "Privatization is failing, so I’m not pro-privatization. I don’t look to privatize. I look for ways to manage more creatively and more efficiently."

John Barleycorn must die

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› molly@sfbg.com

"There was three men come out o’ the west, their fortunes for to try,

And these three men made a solemn vow, John Barleycorn must die.

They plowed, they sowed, they harrowed him in, throwed clods upon his head,

And these three men made a solemn vow, John Barleycorn was dead."

From an old English folk song

It’s a dark, rainy Friday night, and Larkin Street is eerily quiet except for one beacon of light: the John Barleycorn pub. Inside this almost 40-year-old watering hole, logs crackle in a fireplace built with cobblestones from old San Francisco streets.

Neighbors, law students from a nearby university, and longtime regulars cluster together on cable car benches and onetime church pews, tippling and talking quietly beneath a ceiling made from the beams of an old Petaluma chicken coop.

Behind the bar, owner Larry Ayre, with rosy cheeks hugged by a pair of spectacles, serves drinks and good cheer the same way he has for more than three decades. Some of his customers have been coming here for just as long.

"There’s only one bar you call your home bar, and somehow, they have to take you in," Ayre said. "In here, you can be whoever you want to be."

Unfortunately for the Barleycorn, its lease is up, and it’s part of a building that was recently purchased by Louisa Hanson, a controversial local entrepreneur who owns several other properties in the area, including Louisa’s on Union Street and Delaney’s in the Marina. Hanson refuses to renew the Barleycorn’s lease, and it’s rumored she plans to turn the building into a new restaurant.

So tonight the mood is bittersweet. Ayre’s birthday is tomorrow, and neighbors are already stopping by. But no one’s forgetting that the pub’s doom is imminent, and unless a miracle happens the beloved bar will shut its doors October 26. For good.

Pub supporters nonetheless began appealing to Hanson last December when they heard of her plans not to renew the ‘Corn’s lease. They tried to make the case that the popular pub is the right size and scale for the neighborhood, that any other venture would be hard to support in such a tough retail environment, and that the bar is so well loved, Hanson would alienate potential future customers by closing it.

But the notoriously elusive Hanson — who’s obtained licenses for more than 22 businesses in the past two decades, most of which closed within two years or never opened at all — wouldn’t discuss the future of the ‘Corn, much less consider their pleas.

In an effort to save it, weekend bartender and longtime patron Tony Antico helped found the Save the John Barleycorn Coalition. Volunteers gathered more than 4,000 signatures from friends and fans in 30 countries and 20 states. They staged a demonstration outside Hanson’s Union Street restaurant. They lined up formal support from the SF Appreciation Society, the Polk Corridor Business and Middle Polk Neighborhood associations, Lower Polk Neighbors, and Sup. Aaron Peskin, who represents the district. The Board of Supervisors even passed a resolution commending the pub and recommending it be kept open.

"In America you can be a mean nut, and if you own property, the law protects you," Peskin told the Guardian.

Despite all the effort, Hanson is heavily invested in the property and appears to have little incentive to back off now. Public records show that she first bought it for $2.3 million in autumn 2005 and then took out two loans against it totaling $2.5 million.

She seems so eager to develop the property, in fact, that in June city building inspectors found ongoing construction work being conducted at Barleycorn’s neighbor, the former Front Room, without a permit, including taking out a wall and removing fixtures.

But Hanson is no stranger to conflict. Superior Court records show that she’s been the target of a fairly steady stream of litigation since the 1980s, ranging from allegations that she refused to pay contractors or employees to charges that she disregarded contractual agreements with business partners.

One case, brought against Hanson in 2003 by the former owners of her Marina restaurant, alleged that she agreed to a purchase but then withheld payments in hopes of forcing a better deal when the sellers grew desperate. According to the suit, the "alleged secret intent" of Hanson "constitutes an intentional misrepresentation, deceit, or concealment of a material fact that has caused injury" to the former owners. A judge ruled against Hanson and demanded that she pay the plaintiffs $183,674.

That case didn’t surprise Vickie Hall, who had a similar experience when she tried to sell her coffee shop in Amador County to Hanson earlier this year. After agreeing to pay full price for Hall’s homegrown business, Hanson allegedly held the deal in escrow, and therefore off the market for sale to someone else, until Hall would agree to a lower purchase price.

Hall claims that when she begrudgingly agreed but asked for a higher deposit, Hanson simply never responded to the counteroffer. Hall says Hanson couldn’t be reached for six weeks to sign over the original deposit money.

"It was a bad situation with a woman who I think is ruthless and could give a hoot about how her business practices are handled," said Hall, now living in Arkansas, who only sold the business because she and her partner are now on disability.

Look Hanson up on Yelp.com and you’ll find a litany of complaints from former employees, neighbors, business partners, and customers. There’s even a blog dedicated to the "eccentricities and out-and-out weirdness of San Francisco’s worst entrepreneur," located at Luisaconfidential.blogspot.com.

In fact, Barleycorn supporter John Clark, who has lived in the city 25 years and worked in local restaurants for eight years, was warned by peers not to pursue a job in any of her restaurants, so he avoided them.

"She’s a bad businesswoman and unscrupulous," Clark said. And the Barleycorn "is a great little English pub. I’m tired of the character that makes this city what it is getting sucked out of it. This is just another long-standing neighborhood institution being closed because of greed."

So far, Hanson has refused to discuss the Barleycorn, not returning calls from Ayre, Peskin, or the Guardian for this story. Her response to the demonstration outside her Union Street business was to give pub supporters the Italian version of the bird (video posted at savethebarleycorn.org).

In fact, the only thing anyone, including government officials, can do now is make it hard for her to open a new business in the building by changing zoning laws or refusing permits — actions that may hurt Hanson in the long run but won’t change the Barleycorn’s fate.

For now, the ‘Corn’s supporters are trying to maintain their optimism while being realistic. At Ayre’s birthday party Oct. 13, patrons continued to add their names to the petition at the end of the bar while Ayre’s wife explained where in their house the couple would put the historic wooden countertop once the bar closes. But no one will be done enjoying the establishment, or fighting to keep it open, until the last minute of its last day.

"I always believe that little miracles can happen," Peskin said. "I’m waiting for one."

41st Anniversary Special: Bus stop

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› gwschulz@sfbg.com

There’s a money room in the basement of 1 South Van Ness, where the Municipal Transportation Agency, which operates Muni, is headquartered. Workers literally count by hand bags of cash and coins taken in as fares from passengers throughout the day.

When Muni recently needed to pull some of those unionized bean counters away from the money room to staff kiosks around the city where transit passes are sold, its managers hoped to replace them with workers from a private contracting outfit.

The plan unsettled the Service Employees International Union Local 1021, which persuaded Muni against the idea and instead encouraged it to create 10 new full-time city positions to cover the work that was needed. But the MTA’s immediate turn to the private sector is telling.

Powerful local unions would no doubt fight it, but public-transit consultants working with the city have insisted that the outright privatization of San Francisco’s municipal transit system is worth consideration. Advisors to the Transit Effectiveness Project, first unveiled by Mayor Gavin Newsom during a 2006 speech, insist nothing is too controversial for debate.

"There’s nothing we’ve been told to take off the table," a consultant hired by the city told the San Francisco Chronicle late last year.

The Transit Effectiveness Project’s final recommendations are expected next year, when it’s likely Newsom will be starting his second and final term. Big segments of Muni have already been privatized over the years. In fact, Controller’s Office records show the MTA has privatized far more formerly public services over the past two decades than any other city department by far.

In 1983 voters passed Proposition J, authorizing the city to contract out services performed by city workers who’d passed civil service exams to prove their skills as long as the Board of Supervisors passed a resolution certifying a cost savings. The MTA issued $46.5 million worth of private contracts last year covering 689 positions, according to figures maintained by the Controller’s Office.

Muni has used private security guards since 1975, and 400 private workers handle paratransit services, which aid the disabled. Towing, janitorial, meter-collection, and citation-information services have all been privatized. In total, the MTA’s purported cost saving is as much as $20 million per year.

But that’s a sliver of MTA’s $680 million budget, and there are perennial fears of more privatization pushes. This fall’s Muni reform measure, Proposition A, nearly went to the ballot with language that could have allowed millions of dollars in new privatized work at Muni without review from civil service commissioners, but it was removed at the insistence of labor leaders.

San Diego privatized many of its transit services in the ’80s, gradually contracting out services as public employees retired. By last year about half of San Diego’s bus routes were managed by three private contractors, including Violia, an Illinois company that also runs Muni’s paratransit services. Labor leaders say service in San Diego suffered under privatization, and they oppose similar changes here.

"Whenever you contract out a department, whenever you let go of control, then you don’t have control of the product," Cristal Java, an organizer for SEIU Local 1021, told the Guardian.

Prop. A’s language was changed to preserve union jobs if new routes and lines are introduced that may otherwise have been susceptible to privatization, but there are no assurances that city officials won’t eventually point to Muni’s widely bemoaned system deficiencies and claim that further contracting out is necessary.

"We see the same operational problems, and hiring new full-time, permanent people is a way to deal with it instead of contracting out," Java said. "The unions, allies, and MTA got together to make Prop. A something that worked for everyone."

41st Anniversary Special: Privatize the airport?

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› gwshulz@sfbg.com

In August 2006 the five commissioners who oversee San Francisco International Airport discussed renewing a small contract with a consulting outfit called John F. Brown Co.

The contract’s value doesn’t matter as much as the advice the outfit was giving. Brown is helping San Francisco prepare for 2011, when an agreement SFO maintains with several airlines is set to expire.

This, the folks at the airport realize, is a very big deal — one that could cost the city hundreds of millions of dollars and tempt city officials to try to privatize one of San Francisco’s most lucrative assets.

The contract that will expire four years from now is basically a lease the airlines pay in exchange for using SFO facilities like runways and terminals. The agreement was established in 1981 as part of a legal settlement with the airlines, and it permits the city to draw millions of dollars in concession revenue from the airport into San Francisco’s General Fund. Last year the city received nearly $22 million from the airport.

But San Francisco is one of the few cities in the nation that are allowed to take money that the airlines pay for landing and use it to subsidize other city services. And the airlines have shown little desire to keep paying fees that are above what the airport needs to break even on its operations.

Nobody is talking publicly about what will happen after 2011, but it’s entirely possible that the airlines, with the support of the federal government, will refuse to keep subsidizing San Francisco’s General Fund. So $22 million per year in city revenue could suddenly dry up.

If the mayor is someone like Gavin Newsom, he or she will be looking for an easy answer — and a lot of people will argue that San Francisco should follow the trend set by airports in Chicago, Indianapolis, and Pittsburgh and head toward a private management contract.

The Reason Foundation, a libertarian Los Angeles think tank, concluded in the 1990s that SFO could be worth as much as $888 million to the private sector; that number is almost certainly higher now. Imagine, for a moment, the deal the city would be offered: lose $22 million per year in revenue — or get close to $1 billion in cash by turning over the airport to a private operator on a long-term contract.

But the airport’s past experiments with privatization suggest that giving SFO to the private sector might not be such a good idea.

In 2001, Congress created a pilot program in which five cities, San Francisco among them, privatized their security screening of passenger, checkpoint, and baggage operations. Federal airport officials here hired Illinois company Covenant Aviation Security.

An investigation last year revealed that Covenant and SFO officials relying on surveillance cameras conspired to tip off personnel working at checkpoints when undercover federal inspectors were on their way to test possible security breaches.

A whistle-blower first revealed the scheme. Covenant, which partnered in the security venture with global weapons designer Lockheed Martin, was nonetheless rehired by the federal Transportation Security Administration late last year with a $314 million contract lasting until 2010, signed just weeks after an inspector general for the TSA’s parent bureaucracy, the Department of Homeland Security, revealed the results of its probe.

What is perhaps the airport’s greatest privatization disaster began in 1997 and didn’t end until earlier this year. Managers at the airport formed a private, for-profit company called SFO Enterprises, which they hoped would join a consortium of other airports doing consulting and managing work around the world. The initial consulting contract was with a Honduran airport.

The plan turned into a disaster, leaving the airport in Honduras worse off. By the time San Francisco’s controller caught up with the scheme in an investigation completed in January, he declared the city could lose as much as $1.5 million, with much of it poorly accounted for.

Editor’s Notes

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› tredmond@sfbg.com

These are some of the things that Mayor Gavin Newsom has moved to turn over to the private sector in the past four years:

Housing for the mentally ill

Public golf courses

Camp Mather

The entire city broadband infrastructure

The city’s new power plants

Homeless outreach

Environmental cleanup

Recreation programs

Jail health services

Security guards at public institutions

Development of tidal energy

Reconstruction of public housing

And, of course, Pacific Gas and Electric Co. still controls the city’s power grid (illegally).

Yet when we talked to the mayor about privatization recently, he told us he’s generally against it. "Privatization is failing," he said. "So I’m not pro-privatization. I don’t look to privatize."

What’s going on here?

Well, for starters, the mayor isn’t being entirely candid. Newsom’s administration has been moving aggressively to adopt programs with names like "public-private partnerships" to take over jobs that ought to be in the public sector. Even when there’s something that is clearly the job of government — like building the information highway that will be more important than roads and bridges in the future — the mayor tries first to get the private sector to do it. "I look for ways to manage more creatively and more efficiently," Newsom said.

That’s in part because, for all his talk of bold initiatives, the mayor is a timid chief executive. At a time when politicians of all stripes around the nation are afraid to talk about tax hikes, afraid to talk about the value of the public sector, afraid to do anything that might remind people that Ronald Reagan was wrong, letting the private sector take the lead is easy and painless. As Sup. Jake McGoldrick told us, "I suspect that [Newsom] succumbs to the path of least resistance there because of the tremendous amount of pressure that the private sector puts on trying to gain control over public assets."

It would take a fair amount of effort and public money to keep, say, the golf courses under city control. Giving them to a private company is easy. Maybe the courses ought to be turned into soccer fields; that costs money too. Perhaps the easiest thing is to let the Fisher family, of Gap fame and fortune, pay for it (the way the family paid for the new playing surface at Garfield) — and then put up big "Gap Field" signs with blue jean ads, let the Fishers hold private parties there on Sundays, or charge admission … or something else "creative and efficient."

That’s how it works these days: instead of taxing the rich and spreading the benefits around through a democratic system, we let the rich set the agenda. If Don Fisher’s willing to pay for new soccer fields, then we get new fields. Maybe he (or some other private outfit) wants to save the golf courses; OK, we’ll do that instead.

Newsom isn’t Reagan or Grover Norquist; he’s not a rabid ideological promoter of privatization. He’s just a tame elected official who won’t stand up and fight, who won’t make it clear that San Francisco isn’t for sale, who won’t put his immense political capital on the line to preserve the public sector for the public. And for that, he is a failure.

41st Anniversary Special: Blast from the past

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33 YEARS AGO (OCTOBER 5, 1974)


Dianne Feinstein takes off her gloves

By Katy Butler


White gloves still haunt Dianne Feinstein’s political life. She has been wearing them ever since she first went to dancing class, and fellow politicians have accused her of refusing to take them off for politics. Her old political allies bring up the image again and again: those little white gloves seem to crystallize their irritation with her Pacific Heights femininity, the world of the Junior League, the chauffeur and the Goody Two Shoes approach to politics. In 1971 during her disastrous campaign for Mayor, she did her best to reach beyond her background. She promised a Hunters Point crowd she’d never shuck or jive. But she was still wearing those little white gloves.

The white gloves are off now. Feinstein learned from her 1971 defeat and she doesn’t want to lose this time around. She is jostling with state senators Milton Marks and George Moscone for first place at the starting gate in next year’s Mayor’s race, and she is no longer a political dilettante operating on intuition and integrity.

The new Dianne Feinstein is a canny political animal, assiduously cultivating the "homeowner vote" in the foggy reaches of the Avenues while nursing along her original liberal constituency. "She’s dropped the Goody Two Shoes act and she’s willing to play hardball politics," one of her fellow supervisors says admiringly. "She’s moving toward the center and she’s getting very good advice."

"How can you be for the vice squad, for police helicopters, against nude shows and for gay rights?" asks Harvey Milk, a gay former candidate for supervisor. "It doesn’t add up."

31 YEARS AGO (OCTOBER 8, 1976)


Staggering with Bukowski

By William Graham


The beer, the day, whatever the reason, [poet Charles] Bukowski is not reading well — with little enthusiasm, little animation, little inflection in his voice, save the long drawl on certain words. He rarely looks up from his script while reading, as if he hasn’t seen the poems before. Hunched over, his glasses reflect the two spotlights and act as mirrors, blocking the audience from his eyes. At his best he is poetical, distant. At his worst, he is an old man reading the news. And finally the warning, "This is going to be my next-to-last poem." A few say "No, no." Bukowski asks, "Are there any questions?" Again, mixed shoutings answer, a few voices mimic animals, and far from the rear, the high nasal voice says "Bullshit". Bukowski replies, "Lay off that cheeeeeep, rot-gut wine or you’re not going to live a weeeeeeek. If the wine doesn’t get youuuuuuu, I might." The crowd likes this. Shifting gears, the poet says, "Any young girls want my phone number — try Joe Wolberg." Several replies follow, many sound dubious, and the poet says, "Okay, Babe-A."

31 YEARS AGO (OCTOBER 8, 1976)


EVEN COWGIRLS GET THE BLUES. By Tom Robbins. Houghton-Mifflin, $4.95.

Reviewed by Don McClelland


Tragedy ensues but is softened by the cosmic good humor that shines throughout the book. For this world and its languages, Robbins shows an infectious love that is constantly leading him into literary excesses guaranteed to get him hanged in more proper circles. Didactic, discursive, anthropomorphic, loaded with enough outrageous similes to send a basketful to each poet in the American Academy, Even Cowgirls Get the Blues operates on the refreshing premise that the whole world is alive. This book will make you laugh out loud in the elevator. This book should have champagne and tears spilled on it. This book is Cervantes born again. Thank you, Tom Robbins.

31 YEARS AGO (OCTOBER 29, 1976)


The Film Festival

By Robert Di Matteo


The 20th Annual San Francisco International Film Festival, which was held at the Palace of Fine Arts Oct. 13-24, was another one of those Sacred Monster affairs that exist above and beyond almost anything that can be said about them.

For me, there was the added excitement this year of the Guardian‘s Banned-from-the-Festival status (see Guardian 10/8, 10/22/76). Because of our reporting on the Film Festival last year, the Guardian was not allowed to attend this year’s event on the same basis as the 98 acceptable representatives from the press. But we went ahead and bough some tickets on the sly, and on the nights of the showings I slunk in to take my place in the audience, glancing furtively around to make sure I hadn’t been spotted. As something of a natural-born outsider, I found the role of a party crasher to fit like a glove.

Still, my perspective on the festival has not really changed. I doubt that I could ever really resolve my attitudes about culture to fit the festival’s concept of Culture. Movies are still just movies to me, and charging an extra dollar to see them does not alter that fact.

26 YEARS AGO (NOV. 4, 1981)


From the personal ads:

Plug Me In

Says my refrigerator. Very attractive lesbian who lacks only cooking skills would like sympathetic Jewish woman to offer either her knowledge of the art or dinner for the rest of my life. Write P.O. Box 11528 SF CA 94101

Wanted: Wife

Long hours, no pay. For a good-looking San Francisco man, 29. Qualifications: must be beautiful, intelligent, easygoing. No experience necessary. Please, no Republicans.


WM, 38, angry, depressed, timid, gentle, understanding seeks similarly minded F with whom to wait for Godot and/or etc.

My Marriage Was No Fun

Finally my wife and I figured out that we would be happier if we weren’t together. Since then, I have discovered freedom, but it hasn’t been in single bars. It has been squeezing the toothpaste any way I please, or being able to change plans at the last minute. I am 44, nice-looking, secure, and I would be interested in meeting a woman, younger or older, who would like to share her freedom with me.

I am an R.C. priest who takes his religious calling very seriously. But God also made me a man. I have thought about leaving the Church, but feel that that would be very wrong. God didn’t create us to live half lives, He will understand. While I’m sexually inexperienced, I am attractive, accomplished and sincere. Obviously discretion is a must.

Women Are Taught to Say "No"

This one is happy, bright, and attractive, and she is ready to begin saying "Yes." Now, what are the questions?

41st Anniversary Special: The privatization of San Francisco

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› tredmond@sfbg.com

William M. Tweed was one of the greatest crooks in American political history, a notorious Tammany Hall boss in New York who managed in the course of just a few years, starting in 1870, to steal more than $75 million (the equivalent of more than $1 billion today) from the city coffers. The way he did it was simple. As Elliott Sclar, a Columbia economist and expert on privatization, notes, Tweed took advantage of the fact that much of the work of city government was contracted out to private companies. Boss Tweed controlled the contracts; the contractors overcharged the city by vast sums and kicked back the money to Tammany Hall.

This is a rather extreme example, but not, Sclar argues, an atypical one: the worst corruption scandals in American history usually involve private contractors and public money. In fact, he argues, privatization is almost by its nature a recipe for scandal and corruption.

Nothing in the public sector — no incompetence, no waste, no bureaucratic bungling — begins to compare with what happens when private operators get their hands on public money. And the cost of monitoring contracts, making sure contractors don’t cheat or steal, and forcing them to act in ways that reflect the public interest is so high that it dwarfs any savings that privatization seems to offer.

That’s the message of the Guardian‘s 41st anniversary issue.

It’s relatively easy to investigate government malfeasance. The records are public, the players are visible, and the laws are on the side of the citizens.

But when Bruce B. Brugmann started the Guardian in 1966 with his wife, Jean Dibble, he realized that the real scandals often took place outside City Hall. They involved the real powerful interests, the giant corporations and big businesses that were coming to dominate the city’s skyline and its political life. The details were secretive, the money hidden.

One of the first big stories the paper broke, in 1969, involved perhaps the greatest privatization scandal in urban history, the tale of how Pacific Gas and Electric Co. had stolen San Francisco’s municipal power, to the tune of hundreds of millions of dollars. The famous Abe Ruef municipal graft scandals of the early 20th century, the Guardian wrote, were "peanuts, birdseed compared to this."

When I first came to work here, in 1982, Brugmann used to tell me that daily papers, which loved to try to expose some poor soul who was collecting two welfare checks or a homeless person who was running a panhandling scam, were missing the point. "If you look hard enough, you can always find a small-time welfare cheat," he’d tell me. "We want to know about corporate welfare, about the big guys who are stealing the millions."

And there were plenty.

In his new book Supercapitalism: The Transformation of Business, Democracy, and Everyday Life (Knopf), Robert Reich, the economist and former secretary of labor, argues that during the cold war, when American politicians railed against the socialist model of economic planning, this country actually had a carefully planned economy. The planning wasn’t done by elected officials; it was done by a handful of oligarchic corporations and military contractors.

Modern San Francisco was born in that same cauldron. During World War II, captains of industry and military planners took control of the city’s economy, directing resources into the shipyards, collecting labor from around the country to build and repair Navy vessels, and making sure the region was doing its part to defeat the Axis powers. It worked — and when the war ended the generals went away, but the business leaders stayed and quietly, behind closed doors, created a master plan for San Francisco. Downtown would become a new Manhattan, with high-rise office buildings and white-collar jobs. The East Bay and the Peninsula would be suburbs, with a rail line (BART) carrying the workers to their desks. Private developers, working under the redevelopment aegis, demolished low-income neighborhoods to build a new convention center and hotels.

Nobody ever held a public hearing on the master plan. And it wasn’t until the late 1960s that San Franciscans figured out what was going on.

By 1971 the fight against Manhattanization began to dominate the Guardian‘s political coverage. It would play center stage in San Francisco politics for two more decades. The paper ran stories about high-rises and freeways and environmental impact reports, but the real issue was the privatization of the city’s planning process.

Ronald Reagan soared into the White House in 1980, rolling over a collapsing Jimmy Carter and a demoralized, moribund Democratic Party. Reagan and his backers had an agenda: to dismantle American government as we knew it, to roll back the New Deal and the Great Society, to get the public sector out of the business of helping people and give the benefits to private business. "Government," Reagan announced, "isn’t the solution. Government is the problem."

The Guardian was firmly planted on the other side. We supported public power, public parks, public services, public accountability. We had no blinders about the flaws of government agencies — I spent much of my time in the early years writing about the mess that was Muni — but in the end we realized that at least the public sector carried the hope of reform. And we saw San Francisco as a beacon for the nation, a place where urban America could resist the Reagan doctrine.

Unfortunately, the mayor of San Francisco in the Reagan years might as well have been a Republican. Dianne Feinstein’s faith in the private sector rivaled that of the new president. She turned the city’s future over to the big real estate developers. She vetoed rent control and gave the landlords everything they wanted. And when the budget was tight, she ignored our demands that downtown pay its fair share and instead raised bus fares and cut library hours.

When gay men started dying of a strange new disease, there was no public money or service program to help them, from Washington DC or San Francisco. So the community was forced to build a private infrastructure to take care of people with AIDS — and years later, as Amanda Witherell notes in this issue, those private foundations became secretive and unaccountable.

In 1994 we got a tip that something funny was going on at the Presidio. The Sixth Army was leaving and turning perhaps the most valuable piece of urban real estate on Earth over to the National Park Service … in theory. In practice, we learned, some of the biggest corporations in town had come together with a different plan — to create a privatized park — and Rep. Nancy Pelosi was carrying their water. Every detail of the Presidio privatization made the front page of the Guardian — and still, the entire Democratic Party power structure (and much of the environmental movement) lined up behind Pelosi. Now we have a corporate park on public land, with that great pauper George Lucas winning a $60 million tax break to build a commercial office building in a national park.

And still, it continues.

Mayor Gavin Newsom, a rising star in the Democratic Party, who told us he’s no fan of privatization, demonstrated the opposite in one of his signature political campaigns this year: he tried (and is still trying) to turn over the city’s broadband infrastructure — something that will be as important in this century as highways and bridges were in the last — to a private company. That’s what the whole wi-fi deal (now on the ballot as Proposition J) is about; the city could easily and affordably create its own system to deliver cheap Internet access to every resident and business. Instead, Newsom wants the private sector to do the job.

The Department of Public Health is running public money through a private foundation in a truly shady deal. The mayor’s Connect programs operate as public-private partnerships. Newsom wants to privatize the city’s golf courses, and maybe Camp Mather. He’s prepared to give one of the worst corporations in the country — Clear Channel Communications — the right to build and sell ads on bus shelters (and nobody has ever explained to us why the city can’t do that job and keep all the revenue). Housing policy? That depends entirely on what the private sector wants — and when we challenged Newsom on that in a recent interview, he snidely proclaimed that the city simply has to follow the lead of the developers because "we don’t live in a socialist society."

This is not how the city of San Francisco ought to be behaving. Because when you give public land, public services, public institutions, and public planning initiatives to the private sector, you get high prices, backroom deals, secrecy, corruption — and a community that’s given up on the notion of government as part of the solution, not just part of the problem.

You start acting like the people who have been running Washington DC since 1980 — instead of promoting a city policy and culture that ought to be a loud, visible, proud, and shining example of a different kind of America.

San Francisco Whiskyfest

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PREVIEW There’s a reason rich people are so productive: they don’t get hangovers. And it’s not the unlimited access they have to Tylenol PM–Ambien cocktails that keeps them good the morning after. No, it’s the unlimited access to rare and expensive whiskeys. Rich people tell me they can drink near a liquid ton of the handcrafted stuff and still wake up with a fresh-enough head to whip their servants. Yes, it’s true. The best hangover cure is to settle down with a pricey bottle of whiskey the night before.

For the past several months, under the cover of night and in back alleys, the wheels have been set in motion to bring an occasion of drinking such expensive whiskey to the masses. For the not-too-cheap price of $105, attendees of the San Francisco Whiskyfest can enjoy samples of 200 of the world’s finest, rarest, and most expensive single-malt and blended whiskies. Yes, this is supposedly America’s largest whiskey celebration, but there will be high-end rums, tequilas, and beer on hand for the more adventurous. That’s not to mention the expansive buffet and Fiji Water for tasters to clear their palettes. Of course, such an evening would go to waste if there were no knowledge to be gleaned. Besides conducting priceless and slurred give-and-takes with the whiskey vendors, festgoers can attend straight-up presentations from people like Fred Noe, the great-grandson of Jim Beam.

SAN FRANCISCO WHISKYFEST Tues/23, 6:30–10 p.m., $105. Hyatt Regency San Francisco, 5 Embarcadero Center, SF. (415) 788-1234, www.maltadvocate.com/whiskeyfest-sf.asp

The Guardian 2007 Endorsements

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There’s nothing on the state or national ballot, and there’s not much of a contest in any of the three races in San Francisco. That might spell a low-turnout election. But don’t toss your absentee ballot yet or make plans to be out of town Nov. 6: the mayor’s race has some interesting challengers, and there are a number of important ballot initiatives that could change the direction of the city, particularly on transportation, for years to come.

Click below for our endorsements:

>> Local offices
Mecke, Sumchai, and Chicken John for mayor

>> Local ballot measures
YES on Prop. A, NO on Prop. H, more …..

>> Our unedited interview with Gavin Newsom

>> The Guardian 2007 Election Center
Interviews with and information about the candidates, including Quintin Mecke, Ahimsa Sumchai, Harold Hoogasian, and more. PLUS: Interviews with Chris Daly, Aaron Peskin, Jake McGoldrick and others about the issues at stake in the November 6, 2007, election.

>> Who’s endorsing whom?
Endorsements by other local political bodies