Board of Supervisors

Rival condo conversion measures finally up for board vote

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Controversial condominium conversion lottery bypass legislation is finally headed for a vote by the full Board of Supervisors this Tuesday. Befitting legislation that has stirred strong emotions and traveled a twisting political path over the last six months, there are new dramas and uncertainties cropping up at the last minute, including the lingering unknown of where Mayor Ed Lee stands.

Originally co-sponsored by Sups. Mark Farrell and Scott Wiener, the legislation was intended to allow 2,000-plus tenancy-in-common owners to buy their way past the city’s lottery that allows 200 conversions to condominiums each year. But tenant groups and their progressive allies strenuously opposed the idea, and it was amended by Sups. David Chiu, Jane Kim, and Norman Yee working with tenants to couple the bypass with a 10-year moratorium on new conversions, thus clearing the backlog without opening the door to speculators taking more rent-controlled apartments off the market.

The Land Use Committee voted June 3 (2-1, with Chiu and Kim voting yes and Wiener opposed) to send the tenant-supported legislation to the full board and keep a Wiener-backed rival measure stuck in committee. But since then, Wiener invoked a board rule allowing four supervisors to pull the stalled legislation out of committee, getting Farrell and Sups. Katy Teng and London Breed to place that rival measure on Tuesday’s agenda as well.

Tenant groups decried the move and have put out the call for supporters to flood City Hall for the 2pm meeting, but Wiener told us that the differences in the two pieces of legislation are minor. One difference deals with whether transfers of ownership interest will affect an applicant’s spot in the queue and the other involves the so-called poison pill inserted by tenant groups, which would freeze the conversion process if anyone challenges the legislation in court, as real estate interests have threatened to do.

Wiener said the tenant-backed legislation’s changes to condo conversion eligibility, such as a 10-year wait period and banning future conversions of buildings with more than five units, that would remain in place after a successful legal challenge is an unfair overreach. But Chiu said tenant groups have already compromised as much as they can and they need this protection: “This is a carefully constructed compromise, and for the first time tenants groups are supporting thousands of condo conversions.”

Breed’s concerns about the poison pill provision — which was why she said she went along with Wiener’s play to bring up the rival measure — go even beyond Wiener’s. While most concerns involved a lawsuit from real estate interests, Breed worries about a pro-tenant litigant who wants to stop all condo conversions.

“If anyone chose to sue, it would help renters by shutting down everything completely. Where is the incentive not to sue?” Breed told us, noting that she still doesn’t have a solution to the problem, but she wanted the leverage of rival measures in order to address the issue. “I’m hoping it’s a win-win for renters and TIC owners,” she said. “Everyone else is not my concern right now.”

But the real estate interests will almost certainly try to preserve an ability for speculators to continue funneling more rent-controlled apartments into the real estate market, and just yesterday, the San Francisco Association of Realtors announced the hiring of an influential new point person on lobbying and housing issues: Mary Jung, a former spokesperson for then-Mayor Gavin Newsom before moving over to represent PG&E, and who was last year elected chair of the Democratic County Central Committee.

That could make a difference when it comes to Mayor Lee, who has resisted efforts by both sides to weigh in on the issue, saying only that he supports both tenants and TIC owners and that he understands the concerns about opening the door to a flood of new conversion requests.

“The one wild card here is no one know where the mayor is,” Wiener told us, noting that neither side is likely to get the eight votes that would be needed to override a veto. “The mayor, if he wanted to, could have significant leverage in crafting a compromise.”
Chiu said that he’s confident that his version of the legislation has the six votes needed to pass, but that it is still unclear what Mayor Lee will support, despite Chiu asking Lee to weigh in publicly in February and privately during a meeting yesterday. As Chiu told us, “We’ll see.”

Airbnb is still snubbing SF, even after a NY judge rules it illegal there

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Now that a judge in New York has ruled that Airbnb is illegal there, a model that violates city tenant laws and state law, that should put pressure on the San Francisco-based company to finally stop snubbing cities and find a way to exist within local regulatory frameworks and finally start paying its taxes.   

It was good to hear KQED’s Forum discuss Airbnb this morning – it was getting lonely as the only local reporter highlighting the company’s open defiance of San Francisco’s ruling that it should be paying the city’s Transient Occupancy Tax, just like hotels – and to finally question an Airbnb executive on an issue the company has been refusing to address publicly (yes, they still aren’t returning my calls).

But the answer that David Hantman, Airbnb’s global head of public policy, gave this morning was pretty astounding in its hypocritical arrogance. He acknowledged the tax ruling by San Francisco and the company’s lack of compliance, and said the company was waiting for clarification on the various issues related to the questions of the legality of some of the short-term rentals it facilitates before paying its taxes.

In other words, this company is making tens of millions of dollars annually in San Francisco alone on a business model that it developed – one that often runs afoul of local land use and tenant laws, and in violation of people’s leases – and it’s up to city officials to find a solution to this company’s problems before it will pay taxes?!?

To his credit, Board of Supervisors President David Chiu has been trying to do just that for months, slogging through a number of complex and difficult issues that arise from this business model, and he has been clear throughout that Airbnb should be paying its taxes to the city, which it isn’t.

“It’s reasonable to ask people who benefit from the economic transactions we’re talking about to pay their fair share,” Chiu reiterated on Forum, citing the cost to the city of serving the 16 million tourists who visit the city each year.

Coincidentally, there’s a German television crew from ARD (Germany’s equivilent of the BBC) in San Francisco this week doing a story on Airbnb and the shareable economy, interviewing me about my coverage of the company, as well as others, including Airbnb co-founder Nathan Blecharczyk.

The ARD reporter told me this afternoon that Blecharczyk was animated and expansive when discussing how wonderful his company is and how it’s changing the world, but he became terse and unresponsive when she raised the issue of local taxes and regulations.

As I said on camera today, Airbnb and other shareable economy companies are cool, I’ve used them myself, and they’re certainly here to stay. But I just don’t understand their unwillingness to be good corporate citizens and to pay the taxes they owe to support the city services that their customers use.

Chiu has clearly said that Airbnb should pay the TOT — which my reporting has shown would bring $1.8 million annually into city coffers — and that paying its taxes will be a part of the regulatory package he’s working on. But sources have also told me that negotiations have been hard slog, largely because of Airbnb’s unwillingness to play by the rules and because of the unqualified support the company has from Mayor Ed Lee, whose main political fundraiser, Ron Conway, is also a major investor in Airbnb.

Hopefully the New York ruling and growing media scrutiny will prompt the young executives at Airbnb to finally become good faith partners in a city that has been so good to them — a city whose leaders seem anxious to return the favor and legalize Airbnb’s operations in San Francisco.

 

Commission approves soccer project but pushes the city to restore habitat

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The California Coastal Commission today upheld San Francisco’s plan to replace the Beach Chalet grass soccer fields at the west end of Golden Gate Park with artificial turf and high stadium lights after an emotional five-hour hearing, but not before voicing concerns about the loss of natural terrain and urging the city to do wildlife habitat restoration work on adjacent land.

The soccer project has been repeatedly approved by city agencies despite strong opposition from some neighbors and environmentalists, who say it conflicts with a Local Coastal Plan that calls for it to be a “naturalistic” setting. Their appeal to the commission — which enforces the California Coastal Act of 1976 and regulates development in the coastal zone statewide — was supported by commission staff, giving hope to opponents.  

But the dearth of playing fields in the city and bad conditions on this often soggy, gopher-ridden site drove the local approvals of the project, and advocates for soccer and youth dominated public testimony at today’s hearing, which was held in San Rafael. Supportive speakers made arguments ranging from the exodus of families from the city to the need to combat youth obesity and diabetes to concerns that the woods surrounding the field is now “a fornication playground for gay men, it’s a shooting gallery for drug users, and it’s a toilet for the homeless,” all ills they say the turf and lights will help dispel.    

“I urge you to reject the appeal and allow San Francisco to manage our park system,” Sup. Scott Wiener testified to the commission, adding, “San Francisco has a crisis in that we are losing our families and losing our children.”

Former Sup. Aaron Peskin took the opposite position, calling the commission’s staff report “well-reasoned” and telling commissioners they have an obligation to protect coastal areas on behalf of all Californians: “It is the role of the commission not to succumb to political pressure.”

After public testimony and before a lunch break when he needed to leave, Commissioner Steve Blank made a motion to adopt staff recommendations and deny the city’s project, rejecting the various arguments made by supporters as irrelevant to whether this project complied with the Coastal Act and should be built so close to the ocean.

“Our review is based on the needs of 38 million Californians. One of the reasons our coastline looks the way is does is because of this commission,” Blank said, later adding, “This project looks like an industrial sports facility which is the antithesis of a naturalistic setting.”

He acknowledged arguments that the site has been soccer fields for more than 60 years and that many San Franciscans want them there. But he analogized it to the city’s one-time embrace of the Embarcadero Freeway before decades later realizing it wasn’t an appropriate waterfront use and tearing it down.

After a lunch break, the commissioner who seconded his motion, Esther Sanchez, continued Blank’s arguments against the project. “Our purview is different than the city and county of San Francisco,” she said. The commission’s role is ensuring compliance with the Coastal Act and LCP — which was developed by the city and approved by the commission decades ago — and its call to “emphasize naturalistic land use qualities of the western part of the park for visitor use,” saying the city should use other parks if it wants artificial turf fields.

But Commissioner Steven Kinsey called for the commission to defer to the city process and argued that turf and lights don’t necessarily violate the vague language in the LCP. “Grass alone does not make the site naturalistic,” Kinsey said, making a motion to approve the city’s project.

Commissioner Martha McClure then strongly sided sided with Kinsey and the city, and Commissioners Robert Garcia and Wendy Mitchell followed suit, saying how they personally liked turf more than grass. “It’s great for the environment, it’s water reducing, it stays green,” Mitchell said, noting that she’s replacing the lawn at her Southern California home with turf, calling the staff report “arrogant,” and saying, “I’m disappointed that we’re hearing this item.”

Garcia said the project will improve the public’s access to the coastal zone, which is something the Coastal Act also encourages.

“Artificial turf has become a savior for us, we can keep all our fields in play,” Commissioner Carole Groom, a member of the San Mateo County Board of Supervisors, later said, making her the fifth solid vote for the city’s project.

That left four swing votes on this 11-member commission who all said this was a difficult decision. They were inclined to let the project go through, but they were bothered by converting seven acres of real grass to artificial turf and wanted to mitigate that loss of wildlife habitat.

Chair Mary Shallenberger took issue with Mitchell’s comments. “I think they is absolutely properly before us,” she said. “This is how the process is supposed to work. Staff ended their presentation by saying this is a judgment call,” commending project opponents for filing the appeal.

“This was a very hard one for me,” Commissioner Dayna Bochco said, raising doubts that “seven acres of plastic would be a natural and healtful condition.”

Commissioner Jana Zimmer shared the concern and seized on a comment that SF Recreation and Parks Director Phil Ginsburg made earlier expressing a desire to restore as a naturalistic setting a long-neglected four-acre site next to Beach Chalet that used to be the city’s old wastewater treatment plant, noting that $6.5 million in the city’s last parks bond was set aside for habitat restoration in Golden Gate Park.

“I’d like to find a way to link the finding here to that requirement,” Zimmer said, asking Ginsburg whether he could make that commitment.

Ginsburg said that would be the top staff recommendation for the bond money, but that a public process and environmental review would be needed and he couldn’t make the commitment.

“I do believe mitigation is required here,” Bochco said. “We’re taking away seven acres of habitat and I want it replaced with something.”

A majority of commissioners, those for and against the project, strongly urged Ginsburg to follow-through on his pledge to pursue habitat restoration on the adjacent site. But with concerns expressed about tying the two projects together — which raised both legal and local control issues — the motion to do so failed on a 5-6 vote.

With Ginsburg’s pledge and the writing on the wall, the commission then voted unanimously to approve the project, clearing the way for the city to break ground as early as this summer.

More SF restaurants settle with the city over fraudulent employee health surcharges

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City Attorney Dennis Herrera today announced another batch of settlements with restaurants that have been fraudulently using surcharges on customers’ bills to cover their city-required employee health coverage and using some of that money to simply pad their profits.

Seventeen San Francisco restaurants that took advantage of Herrera’s partial amnesty offer — settlements are half of what the violators should owe, based on voluntarily submitting records by last month’s deadline — will be paying tens of thousands of dollars each to the employees’ they ostensibly collected the money for, joining two other restaurants that had settled with the city earlier this year.

Among this latest batch of restaurants is Burgermeister, whose $134,088 settlement is the largest of this group; and Burma Superstar, whose $10,045 is the smallest. Other restaurants paying up as part of the settlement are 5A5 Steak Lounge, Amber India, B Star, Bix, Cafe Bellini, Calibri Mexican Bistro, Citizen’s Band, Cafe Flore, Fresca, MarketBar, Nob Hill Café, Press Club, Skool, Tony’s Pizza Napoletana, and Venticello Ristorante.

In total, Herrera’s office has recovered about $844,000 that will be split among about 1,500 employees.

Another dozen restaurants suspected of misusing the surcharges were given a clean bill of health: Bluestem Brasserie, Cafe Claude, Cupola Pizzeria, Firefly Restaurant, Gitane Restaurant and Bar, Lark Creek Management LLC, Lark Creek Steak, NOPA, One Market Restaurant, Plant Cafe, Ristobar, and Twenty Five Lusk.

There are still more than 30 restaurants that responded to the amnesty offer that remain in negotiates with Deputy City Attorney Sara Eisenberg, with more settlements expected in the coming weeks and the possibility of lawsuits being filed against restaurants that won’t settle.  

The full press release follows:

 

 

Restaurant workers net $844K restitution in 19 surcharge enforcement settlements so far

Herrera praises good faith efforts by restaurants ‘to do right by their employees’; announces ‘clean bills of health’ for 12 other establishments targeted in investigation

SAN FRANCISCO (May 8, 2014) — City Attorney Dennis Herrera today announced settlement agreements with 18 local restaurant businesses that voluntarily took part in his office’s surcharge enforcement and amnesty program, which seeks to remedy shortfalls between amounts collected from customers to cover the cost of complying with San Francisco’s universal healthcare law, and funds actually expended to provide health care benefits to employees.  Together with an earlier settlement announced in January, Herrera’s restaurant surcharge enforcement effort has now netted a total $844,644 to be distributed among approximately 1,500 eligible employees by 19 different companies.

The program announced in January included a one-time 50 percent amnesty offer for establishments with significant shortfalls — provided they fully cooperate with city investigators; agree to good faith compliance with the employer spending requirement of San Francisco’s Health Care Security Ordinance moving forward; and directly compensate their current and former employees who were the intended beneficiaries of the surcharges paid by customers.  All agreements announced today resolve potential disputes with the City over collected surcharges without admissions of liability.  

“I commend these businesses for working cooperatively with us so early in the process, and for understanding our duty to enforce the law even-handedly,” said Herrera.  “Today’s settlements reflect good faith efforts by restaurant owners and managers to do right by their employees, and to honor the intent of fees charged to their customers.  I recognize that complying with groundbreaking programs like Healthy San Francisco can sometimes present new and unique challenges.  So, I’m grateful to these businesses for their cooperation in reaching settlement agreements with us.  I’m glad to continue patronizing these establishments, and I hope other San Franciscans and visitors will join me in doing so, too.”

Some of the 19 establishments that reached settlements under the program include: 5A5 Steak Lounge, Amber India, B Star, Bix, Bugermeister, Burma Superstar, Cafe Bellini, Cafe Flore, MarketBar, Mina Group, Nob Hill Cafe, Patxi’s Chicago Pizza (announced in January), Press Club, Skool, and Tony’s Pizza Napoletana.

Twelve establishments receive ‘Clean Bills of Health’ following investigation
Herrera also announced that 12 businesses targeted for investigation on the basis of the health care expenditure shortfalls they reported to San Francisco’s Office of Labor Standards Enforcement had received “clean bills of health.”  Recipients of such letters were informed by Herrera’s office that after extensive review of additional evidence provided in the course of the City Attorney’s investigation, surcharge-related consumer fraud did not appear to have been committed during the relevant time periods.  In most instances, shortfalls reported to OLSE by businesses that received “clean bills of health” were attributable to their inadvertent reporting or accounting errors.

Establishments so far issued “clean bills of health” are: Bluestem Brasserie, Cafe Claude, Cupola Pizzeria, Firefly Restaurant, Gitane Restaurant and Bar, Lark Creek Management LLC, Lark Creek Steak, NOPA, One Market Restaurant, Plant Cafe, Ristobar, and Twenty Five Lusk.

Surcharge Fraud Enforcement Program background
Herrera announced the program at a City Hall news conference on Jan. 25 with Assemblymember Tom Ammiano, Supervisors David Campos and David Chiu, and representatives from San Francisco restaurants and the Office of Labor Standards Enforcement.  Ammiano first authored legislation in 2005 as a member of the Board of Supervisors that would ultimately lead to the City’s Health Care Security Ordinance, or HCSO, which passed in 2007 with policy input from then-Mayor Gavin Newsom.  Board President Chiu and Supervisor Campos have both been active in subsequent proposed amendments to strengthen and improve the law.  In launching the enforcement and amnesty program, Herrera lauded the Golden Gate Restaurant Association for working productively to share its helpful input, even after years of legal disputes over the law that ultimately ended in the U.S. Supreme Court.  

Status of enforcement efforts and investigation
In addition to the establishments involved with today’s announcement, more than 30 other businesses applied for Herrera’s amnesty program before the April 10, 2013 deadline.  The City Attorney’s Office expects a significant number of additional settlement agreements in the coming weeks, pending further analysis of surcharge funds that establishments collected and expended over the relevant time period.    

Herrera’s one-time offer of 50 percent amnesty has now expired, and the favorable settlement terms are no longer guaranteed to non-participating establishments with significant shortfalls between health care-related collections and expenditures.  Announcing his enforcement and amnesty program in January, Herrera said that restaurants and other businesses found to have committed HCSO-related surcharge fraud during the years 2009 to 2011 that failed to come forward before the deadline voluntarily would risk being sued for full restitution of the amount of surcharges collected during that period, together with potentially substantial penalties, costs and attorneys’ fees.  A small number of defiant, non-participating businesses remain under consideration by the City Attorney for further enforcement action or litigation.

“For restaurants that haven’t yet come forward, it’s still very much in their interest to do so voluntarily,” Herrera said.  “I can’t guarantee the same favorable terms reflected in today’s settlements, but cooperative engagement is better and more cost-effective than lawsuits.”  

Behind the attacks on City College

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OPINION Last year the Accrediting Commission for Community and Junior Colleges harshly sanctioned City College of San Francisco and gave us just nine months to shape up or face the consequences. This was pushed on the community even though the quality of education provided at City College was never in question.

Since then, CCSF has changed student assessment metrics and addressed the governance, institutional planning, and enrollment management issues cited. We have done so even as we have also documented disquieting information about the ACCJC’s damaging role at CCSF and at community colleges throughout California.

Our research into ACCJC found that the commission failed to respect the law and public policy of the state and violated federal common-law due process and California common-law fair procedure. Further, at CCSF and in districts around the state, the ACCJC often acts arbitrarily, capriciously, unfairly, and inconsistently in evaluating colleges, thereby harming the schools and their communities.

San Francisco has shown valiant support for City College despite the drumbeat of negative publicity around our accreditation status.

Recently, the San Francisco Board of Supervisors voted unanimously in support of preserving the quality and diversity of education at City College of San Francisco, of tackling the achievement gap and ensuring equitable opportunities for students, and of utilizing Proposition A funds as intended.

In the age of the 24-7 corporate news cycle, educators and unions are too often portrayed as the opposition in attempts to push austerity, undermine the public sector, and efface the important educational work we do for students. We will not apologize for resisting the downsizing of our students’ educations, for saving jobs, and for protecting educational programs that benefit our students—particularly our most vulnerable students. We will not apologize for attempting to sustain employees’ health, working conditions, and well-being.

When San Franciscans passed Proposition A overwhelmingly last November, it was a ray of light for those of us who have devoted our lives to City College and its students. Providing $15.2 million, the tax was designed to reverse the cuts to classes and employees in our starved public educational system, helping sustain our college for San Franciscans. Now the administration is diverting millions of these dollars and pumping additional money into consultants, lawyers, computers, and maintenance. Under the administration plan, next year less than a third of that money will go toward the educational purposes voters were promised.

Meanwhile, the race to downsize continues. At the negotiating table and in the press, the administration uses the need to retain the college’s accreditation—something all of us agree is crucial—as reason, excuse, and threat. It has shirked its duties at the bargaining table, imposing pay cuts and implementing premature and damaging layoffs of staff and faculty.

We face a host of other dramatic changes that cut into our ability to serve student needs, including a reorganization that pushes faculty expertise and voices further into the background and a shocking lack of substantive dialogue or transparent processes. Our trustees now preside over meetings that squelch public speech, restricting access to a too-small meeting room with the windows literally papered over so that no one can see in or out.

Thankfully, we are not alone in this fight. In Chicago, in Seattle, and in communities around the country afflicted with disingenuous “reforms” and diminished access, we are gathering strength and allies and standing up for the principles that inform our work as educators, responsible for defending and improving quality, accessible public education for the public good.

To join the fight to save our City College, email aft@aft2121.org

Alisa Messer is an English instructor at City College of San Francisco and president of AFT Local 2121, which represents instructors, counselors, and librarians at the college.

 

Condo bypass legislation now before the full board

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Controversial condominium lottery bypass legislation — sponsored by Sups. Mark Farrell and Scott Wiener but substantially modified by tenant group that strongly opposed the original legislation, with the help of Sup. David Chiu, Jane Kim, and Norman Yee — is finally coming to the full Board of Supervisors today (Tues/7, starting at 2pm).

Those involved in the negotiations say the legislation will likely to be returned to the Land Use Committee because of amendments being introduced today that the City Attorney’s Office has deemed substantial enough to require another public hearing. [UPDATE: The board voted unanimously to send this back to committee, which will consider it on Monday the 13th].They include a provision pushed by tenant groups that would scuttle the lottery bypass if the 10-year lottery moratorium is challenged in court. 

That moratorium was pushed by tenants and their supporters as a tradeoff for letting a backlog of around 2,000 tenancy-in-common owners buy their way out of the city’s lottery for the annual allowed conversion of 200 TICs into condominiums, which are more valuable and easier to sell and finance than TICs.

Farrell told the Guardian late last week that he was still negotiating with both sides and hopeful that he might be able to support the legislation, despite the hostile amendments that Chiu made which were opposed by Farrell and Wiener in committee.

San Francisco Tenants Union head Ted Gullicksen told us that the tenants’ side was willing to accept a couple of the technical amendments that Farrell proposed during negotiations with them, including exempting from the bypass fee the 19 building that have awaited conversion the longest and allowing some owner-occupier changes as the bypass is phased in over six years.

He said Farrell also proposed that if less than 2,000 condos opt for the bypass, then the difference in numbers would be added to the allowable number of condos in the first year that the lottery is restored, which the tenants’ groups haven’t yet agreed to.

Farrell and Wiener are also expected to offer other amendments, but the tenant groups have said they’ve gone as far as they’re willing to in allowing any increase in condo conversions, and they seem to have six solid votes lined up on the board.

Yet it’s still an open question how new amendments might affect those political dynamics, how the real estate industry (which simply wants as many condo conversions as possible) will respond, whether Mayor Ed Lee (who has avoided taking a position on the legislation) will sign or veto whatever emerges, and whether whoever is left unsatisfied by this deal will try to go to the ballot.

In other words, there may be some tricky political maneuvering ahead, so stay tuned. 

The warriors arena: How are you going to get there?

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The Warriors and the all-star lineup of nearly every political consultant in town launched a new public relations offensive this week with the release of a new, spiffy set of drawings and a rewritten plan for a waterfront arena. And opponents of the project pretty much shrugged and said: So, what?

Sure, it looks nicer than it did before. Sure, there’s a pedestrian walkway around the arena. Yeah, there’s glass on the inside that will give spectators a nice view of the Bay. Oh, and there’s room for a cruise ship terminal, to give the whole thing a veneer of maritime use.

But the problems with this project have never been the architecture of the 12-story structure or the inevitably dubious links to the water. “The design was never the point,” Randy Shandobil, a spokesman for the Waterfront Alliance, told us. “Is this the best place to put a big arena?”

The new plan calls for a slightly smaller arena — 125 feet high instead of 135 — with slightly less retail space and seating inside. The glass sides will not only allow fans to look out, but allow people walking around the outside to view in and see something going on inside. The scoreboard will probably be visible; the actually play on the floor less so.

The visuals presented by the architects, Snøhetta and AECOM, indicate that the arena will perch on a large pad raised significantly above the level of the current Piers 30-32. From the ground level, the arena looks like a giant flying saucer, taller than AT&T Park, that’s plopped down below the Bay Bridge.

Craig Dykers, a representative of the architects, told a Board of Supervisors committee May 6 that the arena will fill a need for some sort of project along the open stretch of waterfront from the Ferry Building to AT&T Park. His presentation made it sound as if that undeveloped area was by nature a blight; thousands of joggers, walkers, bicyclists and people enjoying the unimpeded views of the Bay might disagree.

In fact, the project will change more than the two piers; it will create a busy residential and commercial shopping district that will increase foot and vehicle traffic even when there are no games or concerts scheduled.

This is, by any standard, a very different project from what the Warriors first proposed back in November, 2012. That’s why the Waterfront Alliance is asking that the scoping sessions for the environmental impact report on the project ought to go back to square one.

No matter what you think about the design, or the views, or the impact on the city’s priceless waterfront, there’s a problem that’s glaringly obvious, and Sup. Scott Wiener made the point very clearly:

This absolutely has to be a transit-first arena. There’s no way that part of the city can handle even half of the 5,000 cars that have been counted at the Warrior’s current home, Oracle Arena in Oakland. And much of that impact is going to fall on the subway, or light-rail vehicle system.

“It absolutely has to have good LRV service,” Wiener said.

The problem: “Our current system is not even meeting our current needs. I have a lot of constituents who say, when there’s a Giants game you just don’t take the subway because there’s not going to be any capacity. We’re close to a breaking point now, even past it. and our ten-year capital plan puts to the side most of Muni’s unmet capital needs.”

Jennifer Matz, the Mayor’s Office point person on waterfront development, said she agreed with Wiener. “I recognize this challenge,” she said. “There needs to be more of a holistic approach.”

But Wiener wasn’t backing down. Adding the capacity that will be needed to serve the new arena, and the new Giants development, and the new residents moving into the waterfront neighborhood, is not going to be cheap. “Where,” he asked, “is the money going to come from?”

Peter Albert, who works for the Municipal Transportation Agency, is looking into the number of passengers that will be riding Muni — and BART, and Caltrain — and the capacity those systems plan to add. But he had no answer to Wiener’s question.

That’s because there is only one answer: The taxpayers will have to come up with something in the range of a billion dollars to solve Muni’s capacity problems in the next few years — or else the developers will. And right now, there’s not a lot of political will at City Hall to ask for either.

Students celebrate SF resolution to divest from fossil fuels

Famed environmental writer and 350.org founder Bill McKibben wore a short-sleeved T-shirt as he stood on the steps of San Francisco City Hall this afternoon and addressed a crowd of energized student climate activists.

“It’s a pretty day here, but it’s a little warmer than it should be,” he remarked of the hot afternoon with temperatures creeping above 80 degrees F. “This is the hottest May 2 ever recorded in the city of San Francisco.”

McKibben was there to celebrate a recent victory for his organization’s fossil fuel divestment campaign, which came last week when the San Francisco Board of Supervisors voted to adopt a resolution by Sup. John Avalos urging the San Francisco Employee Retirement System to divest from companies that hold fossil fuel reserves.

McKibben’s organization, 350.org, has been urging colleges, universities and city governments across the country to enact similar measures. “This is pretty simple math. The math is, if you’re invested in the fossil fuel industry, then you are profiting from the wreckage of the climate,” McKibben said. You are making a bet that nothing will ever be done to stop or slow down climate change, because if anything ever is done, it will put those investments at risk. The perversity of that is stunning.”

Students across the country have organized campaigns to divest, borrowing a tactic from the anti-apartheid movement. Over the last couple days, “The students at the Rhode Island School of Design had gone and occupied their president’s office, because they were getting no attention to their demand for divestment,” McKibben noted. “And they dropped a banner out the window. And the banner said, ‘We may be art students, but we can still do the math.’”

He went on: “There’s no absolute guarantee that we’re going to win this fight. But I do know … that we’re at the very least going to fight. And fight hard.”

Sup. John Avalos also delivered comments at the rally. When he first contemplated introducing the resolution, “I thought, oh no, just another advisory measure that we’re going to do as a Board of Supervisors,” Avalos admitted, “but I also saw the real value of it. That if San Francisco could take a stand like this, it could have a real impact on all the other cities around the country.”

He added that the most compelling argument for divestment was that, “We know that we cannot take all of the fossil fuel out of the ground that those corporations are seeking. And eventually … they’ll be stranded assets that we’ll have no return on in the future.”

Asked after the rally whether he thought SFERS would indeed divest as a result of the nonbinding resolution, McKibben told the Bay Guardian, “I have no doubt that they will. … I think that that’s starting to happen all over the country, and I think people like Supervisor Avalos are serious about making sure that it’s for real. You know, in Washington we make rhetorical statements with nothing behind them, but hopefully in San Francisco,” things will turn out differently, he added.

Earlier in the day, Norm Nickels of SFERS noted that the resolution has not yet been added as an agenda item for the Retirement Board to take up, because it has not yet cleared the final hurdle for official Board of Supervisors approval.

SFMTA chief hopes to calm the parking meter furor at supervisorial hearing

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San Francisco Municipal Transportation Agency director Ed Reiskin faces a tough challenge tomorrow (Thu/2) at the Board of Supervisors Neighborhood Services and Safety hearing that Sup. Mark Farrell has called on expanding parking meters into new neighborhoods, where Reiskin is expected to face a hornet’s nest of SFMTA critics stirred up by the loss of free street parking and perceptions that the agency is mismanaging public spaces and transit. [UPDATE: Read what happened here.]

Reiskin needs to quell some of the anger that is erupting in the northeast Mission District, Potrero Hill, and other areas slated for new meters enough to prevent increased supervisorial intervention into his independent agency and ensure a transit improvement bond measure planned for next year has a chance of passing – which the agency desperately needs to make improvements to Muni.

“We appreciate the opportunity to share information on how we’re trying to create more parking availability and ease congestion,” SFMTA spokesperson Paul Rose told us.

Jay Primus, who manages the SF Park variable price meter program for the SFMTA, told us he’s seen the presentation that Reiskin will be giving and finds it compelling, even though he knows better than anyone that, as Primus said, “Parking is always a difficult subject, particularly in an area as dense as San Francisco.”

It’s hard to imagine what might satisfy the SFMTA’s staunchest critics, who have created websites blasting and lampooning the agency’s every action and formed opposition groups that use militant rhetoric.

Mary Eliza is the spokesperson for Eastern Neighborhoods United Front, which has whipped up critics of the parking plans with calls to “FILL THE HALL. Raise your flag and wear your colors.” Speaking to the Guardian, she cited a litany of complaints and deep, conspiratorial suspicion of the SFMTA and its agenda, which is why she said critics have appealed to the supervisors.

“We’re not dealing much with the MTA anymore, we’re dealing with the supervisors because we think it’s our best chance to get anything accomplished,” Eliza told us.

They seem to have found a sympathetic audience with Farrell, a conservative from the westside, where pro-car ideologies are strongest. “Even as a transit first city, San Franciscans deserve to have reasonable parking situations in their neighborhoods. With plans under discussion to expand SFMTA’s number of parking meters citywide, every potentially affected neighborhood deserves to have extensive input into and thorough understanding of SFMTA’s upcoming plan,” Farrell wrote in calling for the hearing.

Primus said the SFMTA does try to be responsive to community concerns, noting that when its plans for new meters in the northeast Mission, Potrero Hill, and Mission Bay ran into strong community opposition in 2011, officials delayed the plans to gather more data and do more community outreach, separate the proposals, and remove them from the SF Park pilot program.

They are now finishing work on the Mission plan, which should come out this summer, after they do more work on solving issues raised by car repair and other light industrial businesses. But Primus said parking scarcity and good transit access in the area make it “an area where good parking management is all the more important.”

Then comes Potrero Hill, where the anti-meter furor appears to be strongest. But with increased development planned for the area, Primus noted that the community and Board of Supervisors have already called for more active parking management by the SFMTA: “All these parking policies were called for in the Eastern Neighborhoods plan, so it was already approved by the supervisors.”

A call to arms

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OPINION No one can deny that the San Francisco of the new dot-com boom is a scary place to live. Rents are astronomical: $2,353 is the median rent for a one-bedroom in the Bayview, an area that has never had high rents. Ellis Act evictions are up 68 percent from last year, and buyouts and threats of Ellis (de facto evictions) are skyrocketing. Longterm rent-controlled tenants live in absolute dread that their buildings will be sold to a real-estate speculator who will decide, a month later, to “go out of the business of being a landlord.”

Neighborhoods are being transformed, and not for the better. The once immigrant Latino and working-class lesbian area of Valencia Street is now mostly white, straight and solidly upscale. The Castro has more baby strollers per square foot than a suburban mall, not to mention a high rate of evictions of people with AIDS. Along Third Street and in SOMA and other areas, people of color are being pushed out, and the working-class is being replaced by middle-income condo owners. The African American population of the city is down to 6 percent.

Small businesses, too, are being decimated, as landlords demand higher and higher rents and chain stores try and creep into every block. If the demographics of the city continue to change and become more moderate, many longstanding political gains could be lost.

Resistance is not futile.

During the Great Depression, the Communist Party in the Bronx and elsewhere successfully mobilized the working class to block doorways when the marshals arrived to evict tenants. In the 1970s here in San Francisco, the “redevelopment” of the Fillmore and the I-Hotel was met with widespread protests. Then-sheriff Richard Hongisto went to jail rather than evict the working-class Filipino tenants at the I-Hotel. In the late 1990s, organizing to fight the evictions and displacement happening in the wake of the first dot-com boom culminated in a progressive takeover of the Board of Supervisors.

These days, there’s no mass movement to fight the evictions and displacement. Occupy Bernal, ACCE and others have successfully stopped the auctions of foreclosed homes, and even twisted the arms of banks to renegotiate some mortgages. Tenant organizations have been holding back efforts to weaken rent control for years.

Where is the building-by-building organizing of renters? Where is the street outreach in every neighborhood? Where are the blocked doorways of those being forced out of their apartments by pure greed? Where are the direct actions against the speculators and investors who are turning our neighborhoods into a monopoly game? Where is the pressure on the Board of Supervisors to pass legislation to curb speculation and gentrification rather than approve tax breaks for dot-com companies? Where is the pressure on state legislators to repeal the Ellis Act and other state laws that prohibit our city from strengthening rent control and eviction protections?

Every moment we wait, more people are displaced from their homes, more neighborhoods become upscale, more small businesses are lost. Progressives wake up.

It’s time to take back what’s left of our city.

Tommi Avicolli Mecca is a longtime queer housing activist who works at the Housing Rights Committee. He is editor of Smash the Church, Smash the State: the early years of gay liberation (City Lights).

 

On 8 Washington, it’s No, No

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The November ballot may contain not one but two measures addressing super-luxury condos on the waterfront. And that could pose a serious problem for the developer of the 8 Washington condominium project.

The Board of Supervisors approved that proposed 134-unit complex, which would be the most expensive condos ever built in San Francisco, in June, 2012, but immediately opponents gathered enough signatures to force a vote of the people. The referendum would overturn the increased height limits that developer Simon Snellgrove wants for the site.

That, it turns out, is a popular notion: “If Snellgrove is looking at the same polls we’re looking at, the public is not interested in raising building heights on the waterfront,” Jon Golinger, who is running the referendum campaign, told us.

So Snellgrove is now funding his own initiative — a ballot measure that would essentially approve the entire project, allowing 136-foot buildings along the Embarcadero and giving the green light to start construction on housing for multimillionaires.

The paperwork for the initiative was set to be filed April 23, allowing Snellgrove’s team to begin collecting signatures. They’ll need more than 9,000 valid ones to make the November ballot — and that’s not much of a threshold. If the developer funds the signature-gathering effort — which he’s vowed to do — he’ll almost certainly get enough people who are fooled by the fancy name of his campaign: “San Franciscans for Parks, Jobs, and Housing.”
That, presumably, suggests that there are San Franciscans who are against Parks, Jobs, and Housing, although we don’t know any of them. We just know people who think this particular project provides housing the city doesn’t need without paying nearly enough for affordable units.

At any rate, the campaign manager for this effort, according to the paperwork filed at the Department of Elections, is Derek Jensen, a 20-something communications consultant who was Treasurer of the Lee for Mayor Campaign. The address for the waterfront initiative is listed as 425 Market St, 16th floor –which, by the way, was the same address used by the Lee Campaign. And since it’s right near our office, we took a stroll over to see what the Snellgrove forces had to say.

Well, it turns out that 425 Market is a secure building, and the 26th floor is the law office of Hanson Bridgette, and you can’t get up there unless your name is already in the computer system, which ours was not. The security guard kindly called up to ask about the 8 Washington initiative, and was told there was nobody who could talk about it today, but to check back later.

The person who answered the phone at Hanson, Bridgette had never heard of Derek Jensen. Transferred to voicemail, we left a message for someone named “Lance.” Perhaps that would be Associate Counsel Arthur “Lance” Alarcon, Jr. He hadn’t called back at press time.

The campaign against 8 Washington, on the other hand, has an office at 15 Columbus. First floor. Walk right in the door. The campaign manager is Jon Golinger, who answers his own phone.

At any rate, we can’t figure out what Snellgrove is up to, since his plan makes zero political sense. The referendum needs a “no” vote to block the project. If voters don’t like increased height limits on the waterfront, they won’t like his initiative, either. And if all that this does is confuse the voters, they’ll tend to vote “no” on both measures. If anything, he’s only hurting himself.

Chiu and Herrera roll up their sleeves for spring cleaning in City Hall

For some time now, oft-labeled “power brokers” with undue influence in San Francisco city government have taken heat for failing to register as lobbyists. At the same time, politically connected insiders are often criticized for manipulating the permitting process for major real estate developments far outside the public gaze.

It’s said that sunshine is the best disinfectant. Yesterday, City Attorney Dennis Herrera and Board of Supervisors President David Chiu introduced a package of reforms designed to shed more light on lobbyists’ practices.

The new set of rules would tighten up lobbying regulations, create new disclosure rules for developers and their lobbyists, create more oversight around city contracting and grant-making, and require the publication of a guide for campaign donors spelling out Ethics laws regarding campaign contributions.

“We’re not demanding of anybody else anything different than we would demand of ourselves,” Herrera said, adding that he and Chiu had been working on drafting the proposal for months.

Chiu and Herrera both vied for the city’s highest office in competition with Mayor Ed Lee in 2011. Since beginning his term as mayor, Lee has drawn sharp criticism for his cozy relationships with former San Francisco Mayor Willie Brown, Chinatown consultant Rose Pak and a handful of others who are not registered as lobbyists.

Without mentioning anyone by name, Chiu noted, “I do think there are individuals who have not registered as lobbyists who probably should.”

The proposed rules would broaden the definition of “lobbyist” under the city’s Ethics regulations. The new definition would include “any individual who makes contact with” an elected official on behalf of an employer or anyone else paying them “for lobbyist services.” If someone makes $1,000 or more per month for lobbying, that person would be considered a lobbyist under the law.

The new legislation would also create new disclosure requirements for “permit expediters,” who work on behalf of developers to hasten the permitting process for major real estate construction. They would have to register with the city’s Ethics Commission and file regular reports about their contacts with city officials. Developers with major planning projects in the pipeline would also have to disclose donations of $5,000 or more to city-based nonprofits.

Chiu noted that he and Herrera had consulted with Friends of Ethics, a group of government accountability advocates that’s been pushing for Ethics reform, for help drafting the proposal.

Chiu and Herrera also acknowledged that better enforcement of existing laws was needed in addition to the proposed legislative reforms. “Our city could be more proactive in enforcing our Ethics laws to the fullest,” Chiu said. “Not just the letter of the law, but the spirit of the law.”

Check, please

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steve@sfbg.com

San Francisco restaurants that have been cheating their customers and employees — charging diners for city-required healthcare coverage that they aren’t fully providing to workers — will finally be exposed in the coming weeks, with some notable names in foodie circles among the likely culprits.

City Attorney Dennis Herrera is working on settlements with dozens of restaurants that responded to his investigation and partial amnesty offer, which had an April 10 deadline. His effort augments the complaint-driven enforcement actions by the city’s Office of Labor Standards Enforcement, which has collected millions of dollars for thousands of employees of negligent local businesses in recent years.

At issue is the Healthcare Security Ordinance, the landmark 2008 law authored by then-Sup. Tom Ammiano that requires San Francisco businesses to provide a minimal level of healthcare benefits to their workers. Businesses are also required to report spending and surcharge figures to the OLSE annually, with the next report due April 30.

Last year’s data show celebrity chef Michael Mina’s Mina Group LLC — which includes the restaurants Michael Mina, RN74, Bourbon Steak, and Clock Bar — to be the top violator, collecting $539,806 in surcharges from customers and spending just $211,809 on employee healthcare.

Herrera used that list to ask more than 70 businesses to show they are in compliance with the law or reach discounted settlements now to avoid punitive fines or criminal charges later, and Herrera told us he received 60 responses and had his inquiry snubbed by fewer than a dozen.

“It’s too early to talk about how large a recovery we’ll be getting for workers, but I’m pleased with the response rate,” Herrera told us. He refused to estimate how many of the respondents were found to be in violation, but in an April 11 message to reporters covering the issue, his spokesperson Matt Dorsey wrote, “Based on our investigation so far, we anticipate that the majority of these establishments will be required to pay money to compensate their workers.”

WHAT THE FIGURES SHOW

The Guardian contacted many of the restaurants that topped the OLSE list. Some wouldn’t respond, some said they’ve changed their policies since the controversy erupted, and some wouldn’t talk until after a settlement is announced — including the Mina Group. That seems to indicate they’re about to pay for past violations.

Nicole Kraft, who handles public relations for the Mina Group, responded to Guardian inquires by writing, “I wanted to let you know that Mina Group will soon be releasing a joint statement with the City Attorney’s office, which should answer many of your questions. We’ll be sure to send it your way ASAP.” [UPDATE 4/29: Mina Group settled its case for $83,617.]

Sources in the City Attorney’s Office say settlements with as many as 10 restaurants that admit clear violations of the HCSO could be announced in the next week or two, while another 10 or so have provided data showing they are not in violation. The rest are more complicated and could take weeks or months of investigations, which are being led by Deputy City Attorney Sarah Eisenberg.

“There are going to be some that are given a clean bill of health,” Herrera told us. Herrera also told us that his investigation is just getting started and that it will look at businesses that haven’t made required annual reports to the OLSE. “When we get to a place where we’re announcing settlements, we’ll have more to say,” he said when asked for details and dimensions of his investigation.

GGRA Executive Director Rob Black has maintained that the OLSE figures don’t accurately reflect whether businesses are in compliance because the reporting requirements are confusing. GGRA held a compliance workshop on April 17, and Black told us about 40 restaurateurs attended.

“It was very informative and we got really good feedback from the restaurants,” Black told us. “We had people saying, ‘knowing what I know now, we should redo my 2011 form because I did it wrong.”

Black was initially critical of Herrera’s focus on the restaurant industry, but told us last week, “He made a commitment that the process would be efficient and fair, and he’s lived up to that so far….I still believe that the majority [of violators] didn’t have a mal-intent…Many people on the list that was reported have done nothing wrong.”

Cheesecake Factory — which was seventh on last year’s OLSE list, allegedly taking in $159,242 more in surcharges than it spent on employee health care — insists that it is in compliance and expects the City Attorney’s Office to confirm that.

“We believe the City Attorney’s initial review was erroneous,” Richard J. Frings, the company’s vice president of compensation and benefits, told us. “We are in full compliance with HCSO. Our healthcare costs in San Francisco have far exceeded the surcharge that we have collected. Once the City Attorney’s office has an opportunity to review our filings, we believe this matter will be closed without any further action.” He refused to provide figures to support the assertions.

THE HSA PROBLEM

Most of the restaurants that have been accused of stiffing employees use health savings accounts, which health officials say is a far worse option than private health insurance or the city’s Healthy San Francisco plan, which was created in conjunction with HCSO. Federal law bars cities from prescribing how health benefits are delivered.

San Francisco’s restaurant industry has always been hostile to the HCSO’s employer mandate, with the Golden Gate Restaurant Association unsuccessfully challenging the law all the way to the US Supreme Court. Controversy then erupted in 2011 with revelations (first in the Wall Street Journal, followed up by local media outlets) that some of the city’s most high-profile restaurants were shirking their responsibilities even as they charged diners 3 percent to 5 percent surcharges, sometimes essentially pocketing that money at the end of each year.

That verges on consumer fraud, but District Attorney George Gascon has refused to investigate, telling the Guardian and other papers that he was deferring to the OLSE and the City Attorney’s Office.

In 2011, a progressive-led majority on the Board of Supervisors passed legislation authored by Sup. David Campos to require that businesses keep the money they are required to spend on employee healthcare — which is currently $2.33 per employee-hour for large companies or $1.55 per employee-hours for businesses with less than 100 employees — for employees to use as needed.

But under aggressive lobbying by the GGRA and San Francisco Chamber of Commerce — which asserted the right of business owners to raid these funds, calling the set-aside a multi-million-dollar annual loss to the local economy — Mayor Ed Lee vetoed the measure. He later signed watered-down legislation requiring the money be set aside for two years, setting standards for letting employees know how to access the funds, and explicitly calling for all customer surcharges to remain in escrow accounts.

The OLSE, which also monitors compliance with the city’s paid sick leave and minimum wage laws, can only investigate businesses when an employee files a complaint. But then complaints trigger investigations that cover all of a given business’s employees, who are often compensated for past violations. To file a complaint, just write hcso@sfgov.org or call (415) 554-7892.

OLSE figures show the agency has investigated more than 100 complaints since 2008, resulting in $8.1 million in health care benefits provided to more than 6,400 employees and $244,000 in penalties paid to the city. Herrera’s office also reached a $320,000 settlement with the owners of Patxi’s Chicago Pizza in January, just before announcing his broader investigation.

“The vast majority of San Francisco employers have complied with their obligation to make health care expenditures pursuant to the HCSO,” OLSE Manager Donna Levitt told the Guardian. “With respect to the minority of businesses who fail to meet their obligations, the OLSE works tirelessly to ensure that workers receive the benefits to which they are entitled and that all businesses compete on a level playing field.”

Among the restaurants near the top of the OLSE list that did not respond to the Guardian inquires are Squat & Gobble, Wayfare Tavern, and Trinity Building Services.

“We are actually in complete compliance,” Larry Bouchard, manager of One Market restaurant, told us, explaining its inclusion on the OLSE list by saying, “It’s my understanding that we reported the wrong information.” He said the restaurant uses health savings accounts, but that they are widely used by employees, who get their expenditures repaid within three weeks.

Scott Carr, general manager of Boulevard — who sources say was one of the first restaurants to use the healthcare surcharges on customer bills, and whose parent company, Reroute LLC, was fifth on the OLSE list, underspending by $169,777 — told us the figures didn’t fully reflect the company’s spending on employee health care.

He wouldn’t say whether the company will be settling with Herrera for any past violations, but he did say that the restaurants decided to abandon health savings accounts in favor of health insurance policies for employees starting on Jan. 1. As he told us, “We feel we’ve made a positive step.”

Making CEQA work

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OPINION In San Francisco, a single person can file an 11th-hour appeal under the California Environmental Quality Act to stop a park, library, transit, or affordable housing project that has broad public support. It’s actually worse: that single person can file the appeal long after the project has been approved and even after it goes into construction. When the appeal is filed, the project must stop construction — creating huge costs — until the Board of Supervisors gets around to ruling on the appeal.

This is government dysfunction at its worst, and it needs to be reformed. Supervisor Scott Wiener is sponsoring legislation to do just that: to allow full public participation and challenges to projects while implementing the common-sense rule that for any project, there must be an end to the process and a clear deadline for filing CEQA appeals. Public participation in decision-making is important, but at some point, the decision is made, the process comes to a conclusion, and the project begins. Open-ended CEQA appeals with no deadlines — San Francisco’s current system — are anti-democratic.

Passed 40 years ago, CEQA is an important state law that requires environmental analysis before approving projects. CEQA has helped stop or modify environmentally problematic projects in our state. Pretty much every project in San Francisco — whether a mega-development or a smaller project, such as a homeowner replacing a rotted-out porch handrail, a playground or library renovation, an affordable housing project, or a bike or pedestrian-safety upgrade — must undergo CEQA evaluation. These myriad CEQA evaluations are then appealable to the Board of Supervisors. Yes, if you are replacing that rotted out handrail or working with your neighbors to renovate your local playground, those projects can be appealed to the Board of Supervisors under CEQA if a single person doesn’t like what you’re doing.

We support CEQA and support the right to appeal projects. What we cannot support is having no firm deadline to file those appeals. We’ve seen excellent projects, with broad public support, get delayed and have dramatically increased costs because of our bad process. A small group abused CEQA to fight the North Beach Library for years. After the Dolores Park renovation underwent dozens of community meetings and attained broad community support, a single person appealed the project, arguing that the dog areas of the park would lead to childhood obesity. San Francisco’s bike plan was delayed for years, costing millions of tax dollars.

By setting a clear deadline to file CEQA appeals — 30 days after the project is approved — and by improving notice to the public, Supervisor Wiener’s legislation will provide opponents every opportunity to challenge a project, but they will have to do so before the project goes into construction. That is a common sense rule, and as a result, the legislation has garnered broad support from affordable housing builders, the San Francisco Bicycle Coalition, Walk SF (our pedestrian safety advocacy group), SPUR, labor unions, and neighborhood associations and leaders.

Supervisor Jane Kim has introduced an alternative to Supervisor Wiener’s legislation. Supervisor Kim’s legislation would make our dysfunctional process even worse. It would allow for multiple CEQA appeals of projects instead of just one and would continue to allow CEQA appeals long after projects are approved and even after they go into construction.

It’s time to bring rationality to our CEQA appeal process. Supervisor Wiener’s CEQA appeal legislation is the right approach and deserves to be passed.

Scott Wiener is a member of the San Francisco Board of Supervisors. Pat Scott is Executive Director of Booker T. Washington Community Service Center in the Western Addition, which provides services and affordable housing to families and youth.

 

CEQA change moves faster in SF than Sacto

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So the Guv says he doesn’t think he’s going to be able to gut CEQA this year. I think he’s right: The party he supposedly leads (but doesn’t tend to follow him) won’t go for it, any more than the party Obama leads will got for cuts to Social Security.

It’s partly that both are hard-fought pieces of progressive history. The late 1960s and early 1970s were a good time for the environmental movement — Congress passed both the National Environmental Policy Act and the Endangered Species Act, and Nixon signed both. The California Legislature passed CEQA in 1970, and Gov. Reagan signed it. Back then, even Republicans thought it was a good thing to be on the side of protecting the planet.

But there’s more — and it’s interesting that the state Leg, typically not known as a bastion of progressive thought, is better on this issue than San Francisco, where some sort of changes to CEQA are almost inevitable.

Some background:

What NEPA and CEQA did, first and foremost, was eliminate the problem of “standing” that had plagued environmental lawyers for years. If I couldn’t prove that a horrible development project on the San Francisco waterfront would personally injure me (which would typically mean I had to own adjacent property), I had no right to go to court to oppose it. CEQA mandates a valid, complete environmental review of any major project, which gives anyone the right to sue; I may not be able to describe specific financial damages from a project, but as a citizen, I have a legal right to an adequate Environmental Impact Report.

Likewise, anyone can appeal a development in San Francisco to the Board of Supervisors on the grounds that the EIR was inadequate.

CEQA review slows down projects and costs money. If you “streamline” the process, you make life easier for developers. But there’s a hefty price to pay — because while Sup. Scott Wiener talks about homeowners fixing rotting handrails, very few CEQA suits or appeals are ever filed over that kind of thing. Yeah, there are exceptions; year, one lone bike-hater slowed down the city’s bicycle plan. Yeah, NIMBYs will sometimes slow down affordable housing projects.

But most major CEQA lawsuits and appeals are over big projects, ones that, in San Francisco, tend to slide through the official approval process no matter how horrible they are. Mayors of this city for most of the past half-century have liked developers; mayors appoint the majority of the Planning Commission, and they appoint commissioners who like developers. There’s big money in San Francisco real-estate development, and the savvy builders spread enough of it around that they typically get their way.

CEQA gives the rest of us a way to fight back. Most of the time, it doesn’t work: A CEQA appeal, for example, didn’t stop the atrocious 8 Washington project. CEQA hasn’t stopped developers from building about 50 million square feet of office space in the city since the 1970s. CEQA didn’t stop that hideous Rincon Hill tower. Oh, and it hasn’t stopped a single affordable housing project.

In a city where developers rule and bad decisions are made all the time, for all the wrong reasons, you have to look at tradeoffs. Is it worth accepting a delay in the bike plan and the Dolores Park plan because lone nuts are using CEQA — if that means we can force big commerical projects to mitigate some of the damage their doing? CEQA isn’t perfect, but “reforming” it to make appeals harder is, on balance, a bad idea.

Have at me, trolls. I am a backward-thinking luddite who hates success and never wants anything in the city to change. I am an old curmudgeon. I am whatever you come up with next.

Or maybe I’ve just lived here long enough to see that much of what passes for “progress” in this town does more damage than good.

 

Warriors Arena proposal rouses supporters and opponents

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UPDATED Rival teams have formed in the last week to support and oppose the proposed Warriors Arena at Piers 30-32 as the California Legislature considers a new bill to approve the project, a new design is about to be released, and a trio of San Francisco agencies prepares to hold informational hearings.

Fresh off the collapse of two of the city’s biggest development deals, Mayor Ed Lee and his allies are pushing hard to lock in what he hopes will be his “legacy project.” A new group of local business leaders calling itself Warriors on the Waterfront held a rally on the steps of City Hall today, emphasizing the project’s job creation, community partnerships, and revitalization of a dilapidated stretch of waterfront.

That launch event followed last week’s creation of the San Francisco Waterfront Alliance, made up mostly of area residents and environmental organizations that oppose the project, including the Sierra Club and Save the Bay. The group today released a press release and artist’s rendering of how the 13-story arena and two condo towers may block views of the bay.

Last week, SFWA put out a press release criticizing Assembly Bill 1273 by Assembly member Phil Ting, claiming it would allow the project to avoid scrutiny by the Bay Conservation and Development Commission, which oversees and issues permits for waterfront projects. “One of the primary reasons we have regulatory agencies like the BCDC is so that local jurisdictions don’t run roughshod over the Bay and the waterfront,” group President Gayle Cahill said in the release. “The San Francisco Waterfront Alliance strongly believes that BCDC should retain its jurisdiction in this project to ensure independent oversight for the Bay and for all of us.”

Yet Ting and supporters of the project say the legislation doesn’t change BCDC’s oversight of the project, pointing to language that explicitly acknowledges the agency’s authority. While the legislation would remove the need for the three-member State Lands Commission to approve the project, proponents said approval by the full Legislature is a higher bar that ensures more public scrutiny and accountability.

“It does not waive BCDC. It goes through the same BCDC process,” Ting told us. “By going through the Legislature, you do have more hearings and public process. The idea was to make this more thoroughly vetted.”

The Port’s Brad Benson told us that State Lands staff is also still actively scrutinizing the project. “We’ve been working closely with State Land and BCDC staff to incorporate their concerns,” Benson said. For example, the arena configuration has already been moved closer to shore than originally proposed because of BCDC concerns about maritime access to a deep-water berth at the site.

In addition to approval by the Legislature and BCDC, the project must also be approved by the Port Commission and Board of Supervisors. The latest design for the project is scheduled to be released on May 6 and will be discussed by the Board of Supervisors Land Use and Economic Development Committee that day, said Gloria Chan of the Mayor’s Office of Economic and Workforce Development. The Planning Commission will then hold an informational hearing on the new design May 9, following by a May 14 hearing before the Port Commission. 

The project is proposed to include a 17,500-seat arena that would host more than 200 Warriors games, concerts, and other events per year, starting in 2017, on 13 acres of rebuilt piers. The adjacent, 2.3-acre Seawall Lot 330 would include up to 130 new condos, a hotel of up to 250 rooms, and 34,000 square feet of restaurants and retail space.

The whole project would include just 830-930 parking spaces, making its still-unfolding transportation plan key to the project’s approval. Opponents of the project also criticize the project’s height and its financing package and say this intensive development isn’t consistent with city plans or state laws that protect waterfront lands for maritime and public uses.

“We told the mayor before it was even announced that it is not a legal use of the pier,” Save the Bay Executive Director David Lewis told the Guardian. “There’s no reason that an arena has to be out on the water on a crumbling pier.”

Yet proponents tout the project’s economic benefits to the city and the need for an arena that size to host concerts and conventions, beyond the prestige of luring the Warriors away from Oakland and back to its original home city. “It will be privately financed and turn a crumbling pier and unsafe parking lot into a state-of-the-art venue that generates new revenue for the region and provides a spectacular new facility for the Bay Area’s NBA team.”Jim Wunderman, CEO of the Bay Area Council and an honorary co-chair of Warriors on the Waterfront, said in the press release.

UPDATE: Rudy Nothenberg, who served five SF mayors financing big civic projects and helped found SF Waterfront Alliance, disputes several assertions made by project proponents. “The first version of [AB 1273] unquestionably moved BCDC out of the way,” he said, claiming that bill language was altered after input from BCDC and the consultant to the Assembly Natural Resources Committee. BCDC has not yet returned a call from the Guardian on the issue. Nothenberg also says AB 1273 turns the deliberate fact-finding process required for the State Lands Commission to make its public trust determination into a political process that is a less thorough vetting of the project.

He also took issue with the statements by Wunderman and others that this is a privately funded project, noting that taxpayers will be paying $120 million to rebuild these piers and will give up future property taxes on the site, which will be diverted by a special tax district to help repay the bonds. Nothenberg told us, “Their continued assertion that there is no public money involved in blatantly untrue.”

 

Proposal would halt condo conversions for ten years

San Francisco Supervisors Norman Yee, Jane Kim and Board President David Chiu gathered with a cluster of tenant advocates at City Hall April 15 to unveil a proposal billed as a more equitable alternative to a highly controversial condominium conversion legislation that’s fueled a months-long battle over affordable housing.

Crafted with the input of tenant advocates, the new plan seeks to amend controversial legislation proposed earlier this year by Sups. Scott Wiener and Mark Farrell to allow a backlog of approximately 2,000 housing units to convert immediately from jointly held tenancies-in-common (TICs) to condos.

The proposal would effectively shut down the city’s condo conversion lottery for a minimum of 10 years, a measure aimed toward ending the cycle of real estate speculation that tenant advocates say has given rise to a spike in evictions in San Francisco’s supercharged housing market.

The proposal would still allow a current backlog of TICs to convert to condos without having to wait in a lottery system created to limit the number of units lost from the city’s rental housing stock. The board’s Land Use and Economic Development Committee, which is currently in session, will take up the legislation and proposed amendments later this afternoon.

The 10-year suspension on condo conversions would allow time for permanently affordable units to be built in place of the rental units that would be lost in the one-time conversion, proponents of the alternative legislation said. “If more affordable housing isn’t produced, then units don’t get to convert,” Housing Rights Committee executive director Sara Shortt told the Guardian. 

Chiu stressed that the proposal was crafted to “ensure that as we expedite condo conversions … we protect tenants by suspending the lottery for at least 10 years.”

The 10-year minimum suspension is based on current regulations capping condo conversions at 200 per year. It would last a decade because an estimated 2,000 units would be converted, but could last longer than that.

“For example, if 2,200 units are converted,” Chiu explained, “the suspension would last for 11 years.”

Meanwhile, the proposal would require the conversions that would be intially allowed to be staggered over the course of three years.

The plan “puts the Board of Supervisors on record that we strongly believe in preserving our affordable housing stock,” said Sup. Yee, adding that the package of amendments seeks to “address the risk of speculation that will ensue with a large number of TICs being converted to condominiums.”

The Wiener-Farrell proposal spurred a months-long opposition campaign led by tenant advocates, who said it would permanently remove affordable rental units from the city’s housing stock and incentivize evictions of long-term tenants at a time when Ellis Act evictions are already on the rise. 

“Condo conversions are the number one reason why people are being evicted from the city,” San Francisco Tenants Union executive director Ted Gullicksen said at the April 15 rally and press conference.

Wiener and Farrell’s proposal was presented as a way to remedy TIC owners’ complaints that onerous shared mortgages had left them financially strapped.

But Sup. David Campos, who also appeared at the rally, commented that the real challenge “is for the renters who are finding it very hard to live in San Francisco.”

Campos seemed dubious that a one-time condo conversion should be allowed to move forward at all. “If anything, I think we should be doing more to protect tenants,” he said. “My hope is … if it’s something we cannot live with as a community, we will make sure it dies,” he added, referring to the original condo conversion proposal. 

In an earlier attempt to strike a compromise between TIC owners and tenant advocates, “negotiations broke down quickly,” Shortt said in an interview. At the rally, she said this alternative was “drafted in a way that’s not trying to meet any political agendas.”

For many elderly and low-income tenants who have few options if they are faced with eviction, “there is no price tag that you can put on their units,” said Matt McFarland, a staff attorney at the Tenderloin Housing Clinic, who spoke at the rally. “Their most valuable possession is the long-term rent control on their property. For these tenants, it’s basically a death sentence when you get these eviction notices.”

Checks from mayor’s mysterious breakfast companions mysteriously absent

In less than three months, custom made super yachts will zip around the San Francisco Bay in the ultimate competition for the prized America’s Cup. But San Francisco could wind up spending millions more than originally expected to host this prestigious sailing regatta.

At a March 13 committee hearing at the Board of Supervisors, America’s Cup Organizing Committee CEO Kyri McClellan reported that Mayor Ed Lee was investing an “incredible amount of energy” into helping ACOC with fundraising efforts to avert a city funding shortfall. He was even said to be hosting “breakfasts with CEOs” to solicit funding, McClellan said.

Who are the CEOs? Nobody will say.

How much has each of them pledged to give? Nobody will say.

When the Guardian submitted these questions to Lee, McClellan, and Stefanie Roumeliotes – whose SGR Consulting firm was wheeled in at the last minute to organize fundraising events – none answered directly.

McClellan responded on April 9 with a copy of a letter she sent to Mayor Lee and Board President David Chiu on the day of the hearing, which she indicated was “the most recent update on fundraising.” Roumeliotes, for her part, told the Guardian flat out to stop calling, because her firm was not going to answer any questions.

So far, it appears that none of the mayor’s fundraising meetings, which took place from January 25 to March 4, resulted in his unnamed breakfast companions writing out actual donation checks.

Had they contributed funding, the donation amounts would have been reflected in “behested payment” forms filed with the San Francisco Ethics Commission, required under state law to be submitted 30 days after a contribution is made.

Elected officials are “supposed to file behested payment [forms] for … legislative, governmental or charitable purposes,” Ethics Commission chief John St. Croix told the Guardian, so donations relating to the America’s Cup would fall squarely into this category. Those forms are supposed to filed internally by department, then sent onto Ethics. So far, none have been recorded.

“If there are such forms that the mayor filled out,” St. Croix told the Guardian, “they’re not getting forwarded.”

Meanwhile, McClellan’s March 13 letter suggests that recent fundraising efforts have yielded only $1.4 million – which won’t actually be in hand till next year. That’s a far cry from the estimated $15.6 million funding gap race organizers say is needed to cover San Francisco’s estimated $22.5 million billionaires’ boat race tab. As the fundraising arm of the race organizing committee, ACOC promised in an initial agreement that it would “endeavor to raise” the amount needed to defray city costs. Thus far, it’s paid $6.8 million.

In her letter to Lee and Chiu, McClellan suggested that roughly $13 million of that $15.6 million shortfall would be accounted for in “forecast General Fund revenues.” That translates to additional money harvested from visitors’ pockets via sales and hotel taxes, with some payroll taxes and parking fees sprinkled in, all associated with the America’s Cup events. Little-guy money.

And thanks to the little guys, ACOC’s new fundraising goal is much more attainable. “The SFACOC continues to endeavor to raise the funds,” McClellan wrote. “At a minimum that is $2,670,851 of which we already have $1,400,000 in existing pledges that are to be received by January 2014.”

 

San Francisco has a lot of money tied up in fossil fuels

The San Francisco Employees Retirement System has more than $113 million in holdings in Exxon Mobil. It’s a lucrative investment in a dirty business. On March 29, Exxon’s Pegasus Pipeline ruptured, spilling as much as 7,000 barrels of oil in a toxic slick that coated a residential Arkansas neighborhood and prompted the evacuation of 21 homes.

SFERS also has $60 million invested in Chevron, which has its own checkered history. Environmentalists have long shamed the oil giant for its “toxic legacy” in Ecuador, but closer to home it was recently fined nearly $1 million for workplace violations arising from last year’s Richmond Refinery blaze. That incident sent a column of toxic smoke skyward, and resulted in about 200 hospital visits for respiratory problems from the fumes.

Further down the list of SFERS’ public equities holdings in fossil fuels is $28 million in Royal Dutch Shell, a company whose name, in some circles, is synonymous with human rights abuses in Nigeria. (Shell was also tapped to administer San Francisco’s CleanPower SF program, but that’s another story.)

The retirement system also has about $18 million tied up in Occidental Petroleum, a major player in the fracking industry that was responsible for drilling 675 new oil wells in California in 2011 alone, according to industry data. The retirement system portfolio includes about $5.4 million in BP, the company responsible for the infamous Deepwater Horizon explosion and epic oil spill in the Gulf of Mexico three years ago.

And the city’s retirement portfolio includes more than $1.2 million in Arch Coal, one of the largest coal suppliers in the U.S., which has faced millions in fines for Clean Water Act violations and was sued for firing a miner who complained about unsafe working conditions.

SFERS provided the Guardian with details of its energy company holdings in response to a public records request.

Earlier today, the Budget and Finance Subcommittee of the San Francisco Board of Supervisors took up a resolution, introduced by Sup. John Avalos, to urge SFERS to divest from fossil fuel companies.

The resolution is nonbinding; even if it unanimously passes at the full Board in a couple weeks, SFERS is under no legal obligation to tweak its investment portfolio. But support for such a strategy is gaining momentum as major environmental organizations seek to bring the issue of climate change to the forefront.

Avalos’ resolution was inspired in part by 350.org, an organization that has sowed the seeds for divestment campaigns at 260 colleges and universities nationwide. Celebrated 350.org founder and environmental writer Bill McKibben is betting that the kids are going to win. His campaign hinges on the idea that the planet can only sustain combustion of another 565 gigatons of carbon before things really go off the rails climate-wise; the industry has five times as much in reserve.

Despite San Francisco’s green reputation, change is likely to happen slowly, if at all. According to numbers shared by Retirement Board executive director Jay Huish at the April 10 hearing, SFERS has a total of some $500 million tied up in companies that deal in dirty energy. That’s substantial, and there could be more on the private asset side. “We gave them a list of 200 fossil fuel companies” targeted by environmentalists because they hold underground carbon reserves, noted Avalos aide Jeremy Pollock. “They had stock in 81.”

Avalos’ divestment resolution cleared the way to proceed to the full board, but only after Sup. Mark Farrell requested a couple amendments.

Farrell asked to add language making it clear that the retirement board could receive a lower return on investment if went through with divestment, and inserted another clause to underscore the point that the Board resolution shouldn’t infringe upon SFERS’ “fiduciary responsibility.”

The resolution is expected to go to the full Board on April 23.

New forms

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caitlin@sfbg.com

STREET SEEN What’s in a lookbook? When you’re a styling collective that works with one-of-a-kind vintage items, the question is somewhat challenging. Only one person can buy each outfit in Retrofit Republic‘s newest “Tastemakers” style book, after all.

But co-founder Julia Rhee explains to me in an email that her brand is about way more than call-and-response trend manufacturing. “We could’ve exclusively sourced from the big box stores when we started our business,” she writes. “But we wanted to show clients that we don’t have to live in a throwaway culture that constantly churns out fast fashion with no regard to the environment.”

Rhee and co-founder Jenny Ton counsel clients who make appointments at their private showroom for styling tips that unique pieces that don’t quite fit can be adjusted. “When in doubt, roll it, cuff it, belt it,” she says.

 

“Tastemakers” lookbook: Brown Boi Project founder B. Cole

 

>>CLICK HERE TO READ LAST YEAR’S SFBG PROFILE ON RETROFIT’S STYLE 

Angie Chang, founder of Women 2.0 and Bay Area Geek Girl dinners

 Given the preponderance of grown-and-sexy types at the release party for their newest lookbook on April 13 at the SoMa-sleek Tank18 tasting room, it would seem that SF (a town whose picked-over thrift stores should tip you off on our luv for secondhand) is down for the Retrofit message.

Or maybe there’s another message the party people were responding to. Because instead of populating their campaigns with traditional models, Retrofit is known for making mannequins out of the Bay’s social changers. “Tastemakers” features food justice activist-sustainable chef Bryant Terry, feminist tech networker Angie Chang, founder of genderqueer youth leadership advocates Brown Boi Project B. Cole. Past books have included Supervisors Jane Kim and David Chiu.

Founder of Four Barrell Coffee Jeremy Tooker

“As people of color, we’re not often given the space to be positively highlighted and affirmed that we are beautiful,” Ton writes. “So instead of waiting for that space and change to happen, we decided to take it into own hands, on our terms, to be the change we want to see in fashion and in this world.”

CAN YOU SAY Мишка?

Мишка lookbook photos by Chris Brennan

Five-panel ball caps printed with fresh fruit, outer galaxy scenes, or Harvey Comics panels. A cutely patterned cut-and-sew collection that includes button-downs speckled with astrological signs, classical sculptures interspersed with spray paint bursts, pot leaves and one-eyed skeleton heads arranged in Nordic ski sweater patterns. This is the look of Мишка (pronounced “Mishka,” in case your Cyrillic skills are rusty), the Brooklyn brand that opens its first SF store this week.

Are we really becoming the outer borough to Silicon Valley’s Manhattan? The fact that Мишка, a Greenpoint brand, is opening up its first store in the city next to a tattoo shop on 25th Street in the Mission is one sign that: yep, maybe. Or maybe it says more about how the Internet is globalizing hipster culture — the brand already has stores in Tokyo and Los Angeles.

Мишка is the kind of low brow movie-inspired streetwear brand (read: many hats and t-shirts) that inspires hordes of young enthusiasts so gung ho that the brand’s national marketing coordinator Leigh Barton tells me, her bloodshot eyeball-adorned fingernails lightly gripping a cappuccino cup in a Haight Street coffee shop a few blocks from where she was hosting last week’s warehouse sale, kids will show up to stores ready to work for free, just for good vibes and freebies to further their sartorial addiction.

The company already has a passionate Bay Area fan base, and co-founder Mikhail Bortnik tells me in an email the feeling is mutual. “The art, music, and culture that has been oozing out of the city for decades has influenced our brand and art greatly,” he writes.

SF store manager Chris Brennan actually shot a lookbook last summer featuring the Bay’s new crop of hip-hop heartthrobs: Chippy Nonstop, Antwon, and Trill Team 6 were among the models — which makes sense given that Мишка’s a hybrid project — Bortnik and co-founder Greg Rivera also run Мишка Records, which recently released Cakes Da Killa’s rad sophomore effort The Eulogy and had its hand in Das Racist’s early mixtape glory as well. Keep an eye out to see how the company will be contributing to the ongoing rhythms and melodies here in the Bay.

Мишка SF opening party Fri/12, 7-9pm, free. Мишка, 3422 25th St., SF. www.mishkasf.com


Why CEQA matters

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By Arthur Feinstein and Alysabeth Alexander

OPINION Is now the time to significantly weaken San Francisco’s most important environmental law? When our world is facing the greatest environmental threats ever experienced, why is there a rush to diminish our hard won environmental protections?

That’s the question we should all ask Supervisor Scott Wiener, who has proposed legislation that would significantly weaken the city’s regulations that enforce the California Environmental Quality Act.

Global climate change and extreme weather events are sending a clear message that the world is in trouble. Unprecedented droughts threaten our food supply and drinking water, while floods and sea level rise threaten our homes (the Embarcadero now floods where it never has before). The ozone hole still exists, threatening us with skin cancer, and the critters with whom we share this world are experiencing an unprecedented extinction rate.

Recent region-wide planning efforts, such as One Bay Area, expect San Francisco to provide housing for more than 150,000 new residents, bringing even more impacts to our city.

The best tool available to city commissioners, supervisors, and the public to understand and effectively reduce negative environmental effects of new projects is CEQA, which requires analysis and mitigation of unavoidable environmental project impacts. CEQA mandates that the public be informed of such impacts, and requires decision-makers to listen to the public’s opinions about what should be done to address them. It allows the people to go to court if decision-makers ignore their concerns.

Without an effective CEQA process, the public is helpless in the face of poor planning, and planning based only on the highest corporate-developer-entrepreneur return on the dollar with no regard for environmental consequences, including noise, night-lighting, aesthetics, and transportation — all issues of concern to urban residents. And with current tight real-estate economics, worker safety is at risk if developers cut corners on environmental review, especially with projects built on toxic and radioactive waste sites like Treasure Island, which potentially endanger construction workers and service employees who will work in these areas after projects are completed.

Wiener’s legislation, introduced at the Land Use Committee April 8, makes it much harder for the public to appeal potentially damaging permit decisions, by shortening timelines and establishing more onerous requirements for such appeals. In many instances it would also steer appeals away from being heard by the entire Board of Supervisors, instead allowing small committees to rule on these crucial issues.

A broad coalition of environmental, social justice, neighborhood, parks protection and historic preservation groups, allied with labor unions, is challenging Wiener’s attack on our environmental protections.

Supervisor Jane Kim recently stepped forward to champion these efforts, and work with these groups to draft a community alternative to make the CEQA process more fair and efficient while carefully protecting our rights to challenge harmful projects.

The supervisors need to reject Wiener’s damaging legislation and consider Kim’s community-based alternative in seeking to truly improve our local California Environmental Quality Act process.

Arthur Feinstein is chair of the Sierra Club Bay Chapter. Alysabeth Alexander is vice-president of politics for SEIU Local 1021.

 

Sneaky surveillance

19

steve@sfbg.com

After public outrage stopped the San Francisco Police Department from instituting controversial — and unconstitutional, say civil libertarians — new video surveillance requirements in bars and clubs more than two years ago, the department quietly began inserting that same requirement into new liquor licenses, a move met with concern at City Hall last week.

In late 2010, the SFPD proposed a draconian set of new security requirements for drinking establishments in the city, including requirements that they do video surveillance and take an image of all patrons’ identification cards and make them available to police upon request, without a warrant or any other controls (see “Going to a club — or boarding an airplane?,” 12/7/10).

That proposal ran into a wall of opposition from the American Civil Liberties Union, California Music and Culture Association, progressives on the Board of Supervisors, and others, who said such a blanket policy violates privacy protections in the California Constitution. The Entertainment Commission held a hearing on the proposal in April of 2011 and voted unanimously to reject the proposals.

At that point, they seemed to just disappear, but they didn’t. Instead, SFPD internally decided at that time to begin asking the California Department of Alcoholic Beverage Control to insert a video surveillance requirement in most new liquor licenses in San Francisco, which escaped public notice until Sup. Scott Wiener raised the issue at the April 2 Board of Supervisors meeting.

“If you have an establishment that perhaps has a track record of bad things happening, that’s one thing. But absent that, I don’t believe that this is justified,” Wiener said as he voted against the requirement in a pair of new liquor licenses. Although Wiener was alone in opposing those applications, Sup. David Campos said he shared Wiener’s concern and the pair called an upcoming hearing on the new policy.

Two days later, at the board’s Neighborhood Services and Safety Committee meeting, Wiener again raised the issue and sought to have the new requirement removed from a pair of proposed liquor licenses: Cesar’s Ballroom on 26th and 3rd streets, the latest project of veteran local club owner Cesar Ascarrunz, and Nosa Ria, a market in Hayes Valley that will import gourmet food and wine from Spain.

“It’s the exact opposite of some kind of rowdy bar or nightclub where people are going in and getting drunk and really bad things are happening,” Wiener said of Nosa Ria, for which he persuaded fellow Sups. Eric Mar and Norman Yee to vote to remove the video surveillance condition before approving the application.

That condition stated: “The petitioner shall utilize electronic surveillance and recording equipment that is able to view the outside of the premises, including all entrances and exits, and that is actively monitored and recorded. The electronic surveillance shall be utilized during operating hours. Said electronic recording shall be kept at least 30 days and shall be made available to the Department or Police Department upon demand.”

Mar said he agreed with Wiener that “a broad discussion of electronic surveillance requirements would be important for this committee,” but Mar then voted against removing that condition from the Cesar’s Ballroom application, saying, “I think we need surveillance in certain spots on a case-by-case basis, and I think this is an area that needs surveillance.”

SFPD IS WATCHING

When SFPD first sought new video surveillance tools — back in 2005, when the department asked for 71 video cameras at high-crime intersections around the city — it was rigorously debated in public hearings for months. And when they were finally approved by the Board of Supervisors, they included an extensive set of controls on when SFPD could request footage — the department wasn’t even allowed to control the cameras directly — how it could be used and when it must be erased.

The legislation also required a follow-up study of their effectiveness in deterring and prosecuting crimes. Conducted by the University of California’s Center for Information Technology Research in the Interest of Society (CITRIS) in 2008, the report found the cameras had no impact on violent crime rates but a small deterrent impact on property crimes in the filmed areas.

As a tool for prosecuting crimes after the fact, “There has been limited success with the cameras acting as a ‘silent witness,’ with footage standing in for witness testimony; some anecdotal evidence suggests that the existence of CSC program footage can actually deter witnesses from cooperating under the assumption that the cameras have caught all necessary evidence,” the report said, also noting that twice in the 120 police requests made by 2008, footage resulted in charges being dropped or downgraded.

But today, SFPD apparently believes that times have changed, and that the rigorous oversight and evaluation of video surveillance tactics and their implications on people’s privacy rights — or even the need to notify the public that SFPD is seeking new ways to watch citizens — are no longer necessary.

“Over the last few years, we’ve increased the number of recommendations for video surveillance, for a few reasons,” SFPD spokesperson Gordon Shyy told the Guardian, citing how cheap and ubiquitous the technology has become and the role that video footage can play in solving crimes.

Yet attorney Michael Rischer with the ACLU of Northern California, who actively opposed the SFPD’s proposal in 2011 and was dismayed to hear the department secretly and unilaterally expanded its video surveillance reach after its proposal was rejected, said that reasoning is exactly why there are legal controls on the expanding police state.

“Both of those justifications are exceedingly troubling and they demonstrate why the San Francisco Police Department should not be doing this in some room sealed off from the public,” Rischer said. “The police have this totally backward. The ease and cost of doing this is a reason why these protections are in place.”

PRIVACY PROTECTIONS

Unlike under federal law, Californians have an explicit constitutional privacy guarantee and a body of case law defining that right in great detail. But the SFPD doesn’t seem to be aware of the nuances of that case law, such as the distinction it makes between people’s expectation of privacy on public streets versus in private businesses.

“When you enter a bar or restaurant, you don’t have an expectation of privacy,” Shyy told us.

But Rischer said that just isn’t true under the law. He noted that people do indeed have a reasonable expectation that they can enter a gay bar without being outed, for example, or that police won’t be able to demand video from a gathering in a bar where subversive political ideas are being discussed. And those concerns are exacerbated by SFPD’s policy that bar owners must simply turn over footage “upon demand.”

“The notion that the government is requiring a business to conduct surveillance of its patrons and to turn it over to the Police Department without any judicial oversight or even rules is deeply troubling and probably unconstitutional,” Rischer said.

Shyy said SFPD will “only request them when a crime has been committed,” but he also admitted that the conditions it is requesting on liquor licenses don’t set that limit and the policy hasn’t been reviewed by the Police Commission or other local oversight bodies.

ABC spokesperson John Carr told us his department doesn’t have a position on video surveillance and hasn’t tracked whether other jurisdictions are seeking the condition. As for whether it routinely includes SFPD’s recommended conditions, he said, “ABC reviews each application on a case by case basis.”

There are indications that SFPD sometimes resorts to bullying bar owners into turning over video surveillance without legal authority to do so. Jamie Zawinski with DNA Lounge last month blogged about Officer Simon Chan telling the club that it was required to keep video footage and turn it over upon request, which club operators informed the SFPD wasn’t true. “It’s just another sneaky, backdoor regulation that ABC and SFPD have been foisting on everyone without any kind of judicial oversight, in flagrant violation of the Fourth Amendment,” Zawinski wrote.

Regarding that incident, Shyy would only confirm that most bars aren’t yet required to keep and turn over video footage. And he said SFPD will cooperate with the hearing Campos and Wiener have called. “At this point, we don’t believe we’re violating people’s constitutional rights, but we’re willing to have that discussion,” Shyy said.

Wiener said that on April 3, he discussed the issue with Police Chief Greg Suhr, who indicated a willingness to cooperate with public hearings on the policy. But Wiener said he’s bothered by the fact that SFPD seems to have put this new policy in place right after being unsuccessful in doing this through a public process in 2011.

“I and others expressed opposition to this and I and others thought the Police Department had backed away from it,” Wiener said at the April 4 hearing, noting that “I’m not philosophically opposed to surveillance,” only with how SFPD instituted it. “I have an issue with the Police Department deciding to insert this on its own without a broader policy discussion.”