Board of Supervisors

Up against ICE

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› sarah@sfbg.com

The San Francisco Immigrant Rights Defense Committee, a newly formed coalition of more than 30 community groups, is asking Mayor Gavin Newsom and the Board of Supervisors to sign a pledge supporting San Francisco’s immigrant community.

By signing the pledge, city officials would agree to uphold the city’s sanctuary ordinance, ensure that San Francisco police officers don’t act like immigration agents, and denounce racial profiling. They would also agree to denounce Immigration and Customs Enforcement (ICE) raids and ensure that immigrant youth get due process, that funding for immigrant communities continues, and that the city announce a specific date for implementing San Francisco’s municipal identification program.

The move could put Newsom in an awkward situation — the mayor doesn’t want to appear to be snubbing immigrant-rights leaders, but he also has moved in the past few months to distance himself from the city’s liberal sanctuary law.

So far the coalition has not heard back from Newsom, but some supervisors-elect and returning supervisors have already signed it, and the Mayor’s Office has signaled that the municipal identification program will kick in Jan. 15.

The move to get elected officials to sign a pledge comes at the end of a difficult year for the immigrant community. In May, the federal government challenged San Francisco’s sanctuary ordinance after immigration agents stopped a city juvenile probation officer in Houston.

The officer, who was repatriating a group of Honduran youths who had been busted for selling crack, believed he was acting in accordance with city’s policy. The federal agents, who took the young people into custody, eventually released the officer.

And it wasn’t long before US Attorney Joseph Russoniello, a staunch opponent of the sanctuary ordinance, convened a grand jury to see whether the city used the sanctuary policy to harbor immigrant felons from federal prosecution.

The city countered this attack by hiring high-powered criminal defense lawyer Cris Arguedas. But by then the damage to the city’s sanctuary policy had already been done: in June, someone leaked the details of confidential juvenile court cases to the San Francisco Chronicle. One day after the story hit the newsstands, Newsom — who until then was a staunch sanctuary ordinance supporter — did an about-face, announcing that he would require city officials to refer youth suspected of being undocumented and of having committed a felony to Immigration and Customs Enforcement (ICE) even before they have a hearing.

Immigrant rights groups decried Newsom’s new direction, calling it an overly broad policy that had the potential to lead to deporting innocent people who may not have family or relatives in their county of origin.

As Angela Chan of the Asian Law Caucus pointed out, based on Juvenile Probation Department data, in 2006 there were 288 petitions filed against Latin American juveniles, but only 211 were sustained. Had Newsom’s policy been in place, 77 juveniles who weren’t actually found to have committed a felony in San Francisco could have been reported to ICE when they were booked and might have been wrongly deported.

While Newsom’s gubernatorial ambitions were blamed for his sudden change of heart, critics also pointed the finger at his criminal justice director, Kevin Ryan. A Republican loyalist, Ryan was the only US Attorney to be fired for cause during US Attorney General Alberto Gonzales’ infamous purge of the Justice Department in December 2006.

His December 2007 hiring by Newsom was seen as a calculated move to make the mayor-who-would-be-governor look tough on crime and immigrants — cards that play well among voters in more conservative parts of the state.

It didn’t help that Ryan’s hiring coincided with Russoniello’s second term as US Attorney for the Northern District of California.

Public records obtained by the Guardian show that as the Chronicle series unfolded, Ryan and Newsom’s communications director, Nathan Ballard, began to question whether the city should even fund programs or organizations that serve undocumented youth.

With ICE raids intensifying — May 2 at El Balazo Taqueria, Sept. 11 at a private residence — and the community accusing the police of racial profiling, the San Francisco Immigrant Rights Defense Committee chose Dec. 18, International Migrants Day, to publicize its pledge.

As of press time, Newsom has refused to meet with the committee, and Chan from the Asian Law Caucus, told us that members are "feeling snubbed."

But Chan reports that SFPD Chief Heather Fong, who announced Dec. 20 that she will be retiring in April, 2009, did meet and listen to the coalition’s concerns. "She reiterated her position that the SFPD only collaborates when ICE is seeking a specific list of people," Chan said.

With Fong under attack from within her own department for her refusal to let officers collaborate with ICE, the community is now abuzz with rumors that a hardliner could now be handed the chief’s reins.

Meanwhile, Supervisor-elect John Avalos and Sups. David Campos and Chris Daly have signed the pledge, while Supervisor-elect Eric Mar and Sup. Bevan Dufty have signed modified versions. And at the Dec. 18 Migrants Day protest, Sups. Jake McGoldrick and Ross Mirkarimi and Supervisor-elect David Chiu (who noted that Sup. Carmen Chu, while absent from the rally, is an immigrant rights supporter) joined gay rights and labor and religious leaders in announcing support for the coalition’s platform, which seeks to make dignity, equality, and due process a reality for all San Franciscans, including immigrants.

As Eric Quezada, Dolores Street Community Services executive director, told the crowd, "We’re here to defend the fundamental human rights of all immigrants." *


P.S. The San Francisco Immigrant Rights Defense Committee is a growing alliance encompassing immigrant rights advocates, labor groups, faith leaders, and LGBT activists. The committee includes the ALDI, Arab Resource and Organizing Center, Asian Law Caucus, Asian Youth Advocacy Network, Bay Area Immigrant Rights Coalition, Central American Resource Center, Chinese for Affirmative Action, Communities United Against Violence, EBASE, Global Exchange, H.O.M.E.Y., Filipino Community Center, Instituto Familiar de la Raza, La Raza Centro Legal, La Voz Latina, Legal Services for Children, Mission Neighborhood Resource Centers, Movement for Unconditional Amnesty, Mujeres Unidas y Activas, PODER, POWER, Pride at Work, SF Immigrant Legal & Education Network, SF Labor Council, SF Organizing Project, St. Peter’s Housing, Tenderloin Housing Clinic, and Young Workers United.

Powerless

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> amanda@sfbg.com

GREEN CITY Sup. Sophie Maxwell, who represents a disproportionately polluted district that is host to the city’s only fossil fuel-burning power plant, has introduced legislation to change the way energy flows into and around the city.

The ordinance collates some past resolutions already affirmed by the Board of Supervisors — to close the Mirant Potrero Power Plant as soon as possible and to request that the San Francisco Public Utilities Commission conduct a transmission-only study to update the city’s Electricity Resource Plan (which is currently based on building a new peaker power plant in the city in order to shutter Mirant’s older, more polluting facility).

Maxwell’s legislation further calls on the city to provide 100 percent clean energy by 2040 — a mandate lifted directly from Proposition H, a clean energy and public power act that was voted down in November.

But the three elements of the ordinance, which was co-signed by outgoing Sup. Aaron Peskin, are somewhat lacking.

The clean energy goals outlined by Maxwell only apply to the SFPUC — not to anyone who gets a Pacific Gas and Electric Co. bill — and SFPUC power is already almost 100 percent clean, consisting mostly of Hetch Hetchy hydroelectric, solar, biomass, and a small amount of cogeneration. (Large hydro and cogeneration do not meet the state’s definition of renewable, but they are considered among the greenest kinds of "brown" power.)

Prop. H would have required the city to conduct an energy study, and specifically stated that the option of city-owned and operated power be considered as part of the study. Subject to board and mayoral approval, the city could have public power if it was determined to be the most efficient and economic way to provide 100 percent clean energy to all citizens by 2040.

Neighborhood and environmental activists, including Julian Davis, who ran the Prop. H campaign, Tony Kelly of the Potrero Boosters, and John Rizzo of the Sierra Club, said they weren’t consulted or even clued in that the Maxwell legislation was being introduced. Rizzo called the clean energy goals "window dressing," and said, "It doesn’t accomplish what Prop. H does."

"I was surprised by the Maxwell ordinance," said Sup. Ross Mirkarimi, one of the authors of Prop. H, which Maxwell, Peskin, and six other supervisors endorsed. "We hadn’t learned of it until the day it was introduced. I believe it’s going in the right direction but I’d like to see it more committed to its insistence on public power — not just elements of Prop. H, but public power so that we are able to be clear about what forms of energy independence, clean energy, renewable that the city should administer."

Maxwell’s aide, Jon Lau, said they did reach out to Mirkarimi’s staff, as well as Mayor Gavin Newsom’s office, and the legislation was written broadly so that there was "something here for everybody if you’re interested."

"The ordinance she introduced is sort of agnostic toward public power," he said. "But it could and should be part of the analysis to the extent that we study residential needs in the city. It’s totally relevant to have a public power analysis." He called public power a "flash point," and said, "The whole conversation would be about that."

Rizzo said the legislation doesn’t demand anything of PG&E, in terms of clean energy goals, but Lau said they don’t have the authority to legislate a private company’s energy procurement. "We can’t just dictate goals for PG&E."

The board doesn’t have the authority to close Mirant either — the gas and diesel power plant operates with a Reliability-Must-Run contract and the state’s grid operator, California Independent System Operator (Cal-ISO), has said Mirant must run or be replaced by some other in-city, instantly available power generation.

The plant also operates with a water permit from the Regional Water Quality Control Board, and though City Attorney Dennis Herrera, Maxwell, and Peskin recently sent a letter urging no renewal of the permit, which expires Dec. 31, the water board seems to be waiting for the plant to close by some other means rather than taking up the issue. "I’m currently reworking the permit reissuance schedule without Potrero because Potrero’s status is really more like ‘to be determined’ at this point," wrote water board staff member Bill Johnson in an e-mail to the Guardian. Because the board hasn’t acted on it, the permit will automatically be extended on Jan. 1, 2009, meaning the plant will be operating indefinitely until the water board makes a final decision or some other way to close it is found.

There’s almost unanimous approval throughout the city that beefing up transmission lines would be better than building a power plant or allowing Mirant to keep operating. Transmission is also one way the city could gain more control of energy resources and potentially save, and even make, some money.

On Dec. 15, Barbara Hale, assistant general manager for power, sent a request to Cal-ISO asking that two new SFPUC transmission proposals be considered as part of the state’s regional planning. They include upping the voltage of existing lines between the Hetch Hetchy dam and Newark, and adding a new line between Newark and Treasure Island, which would allow Hetch Hetchy power to travel exclusively on city-owned lines. The city currently pays PG&E $4 million per year to carry Hetch Hetchy power from Newark into the city — a fee San Francisco has been paying since 1925 when the city, during construction of the transmission lines between Yosemite and the Bay, mysteriously ran out of copper wire just a few miles shy of PG&E’s Newark station.

The new line would run under the bay, using an existing SFPUC water pipeline right-of-way. "This pathway will allow transmission lines to traverse the environmentally sensitive Don Edwards Regional Wildlife Preserve [in Newark] that is likely to be a bottleneck between PG&E’s pivotal Newark substation and the substation serving the Peninsula," the letter states. The SFPUC also predicts some possible cost recovery from Cal-ISO for building the Newark line because it would improve regional reliability. The agency also says it’s exploring partnerships with other municipal utilities for joint ownership.

New board, old pain

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› sarah@sfbg.com

One of the first tasks awaiting the new Board of Supervisors in January 2009 is to make unprecedented cuts to the city budget as San Francisco seeks to balance a $125 million mid-year shortfall and address a projected $450 million deficit for the fiscal year that begins July 1, 2009.

"It’s hard to understand the magnitude of what lays at our doorstep," termed-out board president Aaron Peskin told the incoming supervisors when it became clear that he lacked the votes to enact a proposed package of cuts before his last day in office (see "Sharing the pain," 12/17/08).

"This is going to require a huge amount of selflessness, of sharing the pain among those who can share it the most and the least," warned Peskin, whose last day on the job is Jan. 6.

Newly sworn-in Sup. David Campos cited the magnitude of cuts as one of the reasons he voted not to move Peskin’s legislation out of a committee last week.

"I need more time to understand the proposal", said Campos, who took office in early December, only to find himself confronting "the worst crisis since the Depression," as Mayor Gavin Newsom called it during a visit to the board.

"And this way, the new board gets to weigh in," added Campos, who joins seven returning supervisors — Michela Alioto-Pier, Carmen Chu, Chris Daly, Bevan Dufty, Sean Elsbernd, Sophie Maxwell, and Ross Mirkarimi — and three new supervisors: John Avalos, David Chiu, and Eric Mar.

The decision to delay budgetary cuts until 2009 also secured an extra month of grace for community service providers. Peskin and the Mayor’s Office agreed that cuts scheduled for mid-January won’t kick in until Feb. 20.

But, as Daly noted as he urged the board to kill Newsom’s million-dollar, Tenderloin-based Community Justice Court, the 409 pink slips that were recently issued predominantly to front-line city workers have not been rescinded.

"And folks will have to find many more millions to avert terrible community cuts," Daly observed. Peskin warned that the CJC could cost $2 million annually if the federal government isn’t willing to fund it next year.

Daly argued that defunding the CJC was a "no-brainer," citing the project’s lack of community support and the fact that the services it aims to divert people to — substance abuse, mental health, and homeless programs — are up for cuts.

But Daly failed to get a veto-proof super-majority after Sup. Gerardo Sandoval, who was elected to the Superior Court in November, recused himself, and Sup. Bevan Dufty, who has his eye on Room 200, voted in favor of the mayor’s project.

"I don’t see this as a new program, but one that tries to tie together what’s already in the community justice system," Dufty said.

With the bad fiscal news expected to snowball in 2009, Daly says he plans to call for hearings to examine the possibility of more cuts to upper-level city managers.

"It’s incumbent upon us to make sure there is not fat left in the city budget, especially when it comes to upper-level managers, as we are trimming the resources available to those who are more vulnerable," Daly explained.

Conservatism’s last stand?

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As Tom Ammiano moved from the San Francisco Board of Supervisors to the California Assembly at the start of the month, he went from the budgetary frying pan right into fiscal fire, a place where the Republican Party’s "no new taxes" pledge has finally turned the political heat up to an unbearable level.

"I think the state’s road is very, very difficult, and the city’s road is very difficult," Ammiano told the Guardian. "There is a failure of leadership on [Gov.] Arnold [Schwarzenegger’s] part. I’m not giving [Mayor Gavin] Newsom an A+, but he at least came to the board."

The difference lies with the anti-tax pledge by the influential right-wing group Americans for Tax Reform that all Republican legislators have signed. Combined with the requirement for two-thirds of the Legislature to approve state budgets, the pledge has made it impossible to close a state budget deficit pegged at $40 billion over the next 18 months, a gap that could shut down state government by March.

"No matter how nice the Republican next to me is, or how gay friendly, they’re doctrinaire and they have everyone by the cojones," Ammiano said.

Senator Mark Leno says now is the time for Democrats to aggressively fight back against an inflexible anti-tax stand that has eroded critical government services for a generation and has now finally reached a crisis point. The conservative crusade has been led largely by ATR head Grover Norquist, who once famously said he wants to shrink government to the level where he can drown it in the bathtub.

"Every Republican has signed a pledge to someone who wants to drown government in a bathtub — Grover Norquist. So nothing will happen until we rip up those pledges," Leno told me, noting that the two-thirds vote margin is just three Republicans each in the Assembly and Senate. "Six human beings are bringing us to our knees."

Even the conservative editorial page writers of the San Francisco Examiner (who endorsed John McCain for president) on Dec. 15 wrote, "the deficit has become so overpowering that — hate it all we want — California cannot continue functioning in 2009 without at least temporary tax raises."

Yet Norquist and the Republican legislators in his thrall haven’t softened their position one bit and instead hope to win deep cuts with this game of brinksmanship. "Now it’s up to the governor to come up with a budget that doesn’t borrow money and doesn’t raise taxes," Norquist told the Guardian.

He said the problem is that California hasn’t adopted a system of making a searchable, detailed list of all government expenditures available to the public, as they have in states like Texas, Missouri, Kansas, Oklahoma, and Alaska.

"Ralph Nader and I have joined in sending three letters to your governor asking them to go transparent," he told us. "To say you’ve cut the budget as much as possible without having 30 million Californians help look at what makes sense and how to cut the budget is not serious. There’s not been a serious effort in California to scrub the budget, period."

Norquist did not return Guardian calls with follow-up questions about the fact that few credible government watchers think the budget gap can be closed with cuts alone or whether the current standoff — which even Schwarzenegger blamed on legislative Republicans — could hasten the demise of conservatism. But for now, conservatives are standing firm.

Senate Republican leader Dave Cogdill put out a statement saying, "Raising taxes doesn’t solve the underlying problem of California’s budget, which is the state spends more than it takes in." His statement may not be true — after all, raising taxes does indeed address that problem — but his caucus is sticking to it for now.

"Republicans remain strong against tax increases and that’s particularly important now when the nation is facing a recession," Sabrina Demayo Lockhart, press secretary for the Senate Republican Caucus, told the Guardian.

Leno called the tax pledge "childish and irresponsible," and akin to Democrats saying they won’t consider any spending cuts. "What kind of honest negotiations can there be when they’ve signed that pledge?" Leno said.

Lockhart countered that, "we’re bargaining in good faith for California taxpayers." Asked about the potentially devastating impact to the economy of shutting down all state spending and projects, Lockhart denied the Republicans were being irresponsible: "The responsible thing to do is project California taxpayers and jobs."

The Legislative Analyst’s Office last year put out a report entitled California’s Tax System: A Primer in which it wrote "California’s tax burden is about average," and in fact less than the industrial states’ average of under $12 for every $100 of personal income. And US tax rates are about 15 percent less than those in the European Union.

Leno has reached out to business leaders to have them try to talk some sense into the Republicans. Ironically, despite the Republicans rationalizing their pledge in the name of not wanting to hurt economic growth, the collapse of the bond market combined with the budget impasse threatens to cut off all state spending and send the already weakened economy into a nose dive.

"I wouldn’t think that anyone with a business mind or business concerns would in any way support the status quo right now," Leno said.

Leno said that even the Chambers of Commerce in San Francisco and Los Angeles are advocating for a reinstatement of the vehicle license fee, something that Schwarzenegger has voiced openness to even though his crusade against it helped sweep him into office five years ago. LAO figures show the lack of a VLF, by the end of the current fiscal year, will have cost the state $43.3 billion since it was repealed.

Leno said the Democrats are planning ballot measures for next year to raise revenue and repeal the two-thirds budget vote requirement, which only California, Rhode Island, and Arkansas have. As the state’s budget crisis devastates state services as well as those at county and city levels, Leno hopes this will be Norquist’s final stand.

"No one expects we can make $40 billion in cuts," said Leno, who hopes that the situation illustrates the intellectual bankruptcy of the right-wing stance.

"We do know there’s opportunity in crisis," Leno said. "It’s getting really ugly now and everybody knows it."

Editor’s Notes

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› tredmond@sfbg.com

San Francisco’s not ready to make $118 million in budget cuts.

I realize the city can’t operate at a deficit, and if payment due exceeds accounts received, something has to be done. But it can wait a few weeks. In fact, the final decisions ought to wait for the new Board of Supervisors to take office in January. The city won’t go broke in the meantime.

But Mayor Gavin Newsom is rushing his cuts through, demanding 400 layoffs and taking a hatchet to the Department of Public Health. There are all sorts of alternatives — our editorial in this issue looks at how the city can bring in more revenue. There’s also a lot more sanity needed as the board and the mayor look at what could be devastating reductions in essential public services.

For example: I like the 311 program. It’s convenient. But I’d rather wait longer for my non-emergency call to be answered than to have public health workers lose their jobs. And the 311 budget hasn’t been touched.

Police and fire are, of course, essential — but it’s insane to give the cops and firefighters, who are among the best-paid city workers, a 7.5 percent pay hike this year while social service workers are getting laid off.

It’s lovely to have more fire stations per square mile than any other big city in California, but there are nowhere near as many fires as there were when the system was designed, and closing some down would save millions.

How come the mayor still has seven people in his press office, most of whom are paid to keep the press from finding out what’s going on?

Why are we talking about cutting the $800,000 Small Business Assistance Center, which actually helps the most important sector of the economy, when there’s $10 million, much of it redundant, in the mayor’s Office of Economic Development?

Why is Dean Macris, the former city planning director, still hanging around and getting paid?

Wouldn’t an across-the-board wage freeze be better than layoffs? What about capping the pay for city employees at $150,000 a year? What about capping police overtime?

What about having all these discussions in public, before the mayor sends out pink slips?

Or would that just make too much sense?

Sharing the pain

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› sarah@sfbg.com

When Mayor Gavin Newsom walked across City Hall to the Board of Supervisors Chambers last week to announce that the city is facing a $576 million budget deficit, it looked as if he was putting political differences aside and genuinely inviting the board to "share the challenge" of bridging the 2008-09 budget chasm.

For years, voters and supervisors have urged Newsom to appear before the board for monthly policy discussions. And for as many years, Newsom has refused, claiming such invites were "political theater." Now that he’s finally made the trek, critics say the context makes the gesture more theatrical than substantive.

Within minutes of Newsom’s unannounced Dec. 9 visit to the board, City Hall insiders began to fear that the Newsom was only pretending to walk the unity talk: details of his $118 million in proposed mid-year solutions were not made available before the appearance, giving the two sides little to discuss and raising questions of due process.

"If the mayor was interested in real collaboration with the board, he would introduce his mid-year proposal to the board for our deliberation, just like the annual budget," Sup. Chris Daly told the Guardian. "But after we asked in three different ways, we found that he will be making over $70 million in cuts unilaterally — without the board’s approval. Now we have to figure out how to get the public a seat at the budget table."

Unlike during the normal budget process, the mayor has tremendous power to make cuts mid-year. But with details slow to emerge, the legislators weren’t the only ones left in the dark about the proposal, which includes slashing the Department of Public Health’s budget by 25 percent, cuts that DPH director Mitch Katz told the supervisors is going to require fundamentally changing how government runs.

Several City Hall workers told the Guardian how, in the days after Newsom made his budget deficit announcement, Controller Ben Rosenfield was seen running from department to department, trying to track down the program-level details.

Supervisor-elect John Avalos, who has a deep understanding of the budgetary process from his years as a legislative aide to former Budget Committee chair Daly, confirmed that the mayor’s $118 Million proposal "doesn’t tell you much."

"There is $47 million in increased revenue that has come in that offsets the shortfall, and there’s a higher-than-expected census at San Francisco General Hospital that allows us to recoup some money. But although there are all kinds of service/non-service cuts in Newsom’s proposal, we have no details to work with," Avalos told the Guardian.

Two days after his board appearance, Newsom penned an op-ed for the San Francisco Chronicle in which he again appeared to be holding out his hand to the board. But Avalos, a candidate for president of the board, observed that Newsom continues to protect his own pet projects, which include the 311 Call Center, the Community Justice Center, and the Small Business Assistance Center.

"The pain needs to be shared and minimized all round," Avalos warned. "The mayor needs to come forward and help us, not simply cut all the programs that the Republicans want to see cut. There is this huge backlash from folks saying, ‘Why do we spend $1 billion on our public health system? Maybe we don’t need public health.’ But our services are there for a reason."

Avalos said he worries that if we cut all these programs now, it will be very hard to get them back down the line. "When revenue is back, the focus will be on things that are important, but not on services that help the most vulnerable folks," Avalos predicted.

Within three days of Newsom’s appearance before the board, Peskin had figured out a mechanism whereby the public could weigh in on Newsom’s cuts: he introduced legislation that combines the mayor’s $118.5 million proposal with an alternative $8.5 million in cuts that Peskin has proposed.

"So, now there’s a de facto collaboration," Peskin told the Guardian. Peskin’s package of alternative cuts — which has since been pared back to $5.5 million because duplication with the mayor’s list was found — includes budget reductions in the Mayor’s Office of Economic and Workforce Development, Emergency Management Department, Fire Department, Police Department, Mayor’s Office of Criminal Justice, the 311 call center, and city grants to the opera, ballet, and symphony. Peskin is also proposed wage freezes that could save another $35 million.

Peskin’s counter-move allows the public to weigh in on the combined proposals. It requires department heads to publicly defend cuts to programs, services, and personnel — cuts that were developed, per Newsom’s request, behind closed doors. Or as Daly put it: "The mayor’s and the board’s proposals need to be deliberated not through a staff member to the mayor, but in full view of the public."

The board also wants to publicly discuss the layoffs, which Newsom said would total 399, a number that rose to 409 when the list was actually released. Peskin’s legislation also provides an avenue for fired workers or their representatives to publicly air discontent. A list of eliminated positions obtained by the Guardian shortly before press time shows that most of the positions were service providers making less than $70,000. Although union officials have complained that the ranks of highly paid managers has grown sharply since Newsom became mayor (visit sfbg.com for the complete list and more analysis).

SEIU’s Robert Haaland estimates that 75 percent of layoffs targeted line workers in service jobs. "As far as we can tell, the pain is all at the bottom," Haaland told the Guardian.

And while Haaland didn’t openly support Peskin’s counter-proposal — a citywide sliding scale of pay cuts in which the highest earners take a bigger hit and an across-the-board union wage freeze — he acknowledged that at least the proposal targets the powerful Police Officers Association and the Municipal Executives Association, and not just SEIU workers.

Haaland claims that under Newsom’s behind-closed-doors method, "the institutional bias of department heads tends to come into play" in making layoff decisions.

"It’s human nature. No one talks about it, and I don’t know that there’s a grand conspiracy," Haaland said, expressing his belief that it’s easier for managers to cut people they don’t work with than those around them or people at the top. "They also tend to target the union activists, the members who are a pain in the butt, and who they don’t like."

Newsom told the Chronicle in a Dec. 15 article that "labor is going to be a principal part of the solution." Tim Paulson, executive director of the San Francisco Labor Council, told the Guardian that "the SFLC is listening to its affiliates to see if there are any collective strategies." But Haaland observed that the city is "contractually obligated to the unions," which may further complicate ongoing negotiations.

With Sup. Bevan Dufty advocating to restore more than $500,000 in HIV/AIDS funding cuts and Sup. Sophie Maxwell is trying to avoid cuts at the Small Business Center, newly sworn-in Sup. David Campos stressed the need for a meaningful vetting process.

"It’s important for us to have a process that sheds light on the human impacts of the proposed cuts so we have a better sense of what it means to citizens of San Francisco," Campos said at a Dec. 12 board committee hearing.

Campos also made it clear that he is not afraid to target the arts, arguing that deep-pocketed patrons can help ease their pain, even as advocates countered that attacking entertainment will further deplete the city’s coffers by potentially hurting tourism. "As much as we appreciate the need to support the arts, we’re going to have to look at other avenues some of those folks can turn to, to get the funding that is needed," Campos warned. "People who have the greatest needs don’t have those options. "

With repeated rounds of painful cuts predicted in the next six months, Peskin told a Dec. 12 Government Audits and Oversight Committee hearing that it’s critical for the board to express its priorities. "These include keeping Rec and Park facilities open, providing basic mental health services, and preserving public sector jobs," Peskin said. "It’s also important that everyone share the pain, but not necessary that everyone share the pain equally."

Outside the meeting, laid-off worker Allanda Turner described her pain and the devastation she feels at being let go in the midst of a recession. "I’m a parent. I just purchased a home. I’m feeling almost no hope at all," said Turner, who fears she will be applying for the medical services, unemployment, and food stamps that she refers clients to as part of her job with the city’s Human Services Agency.

"The mayor always says he advocates for the poor, but we are the most underpaid," she said. Meanwhile, while her colleagues claim that their department "gave Newsom what he wanted" by adding layoffs to an original list of cuts that included fewer jobs.

"These are unit clerks, employment specialists, eligibility workers, and line workers," said Sin Yee Poon, a DHS contract manager. "Eight of them are child-protection workers."

There will be one last meeting of the current Board of Supervisors in January, and both incoming and outgoing members are already specuutf8g that unless Peskin’s legislation passes with a veto-proof majority, the mayor will veto it and this period of symbolic unity will come to an abrupt end.

"We have the capacity, the ingenuity, and the spirit to solve this," Newsom told the board. "It’s going to take all of us working together. It’s in that spirit that I am here. The mid-year solution — difficult and painful as it is — it’s the easy part. The difficult part comes in the next four months."

But as legislators explore the possibility of adding to their budget tools in the future through charter amendments and special elections, one aide stressed the importance of taking an active role now.

"It’s important for the board to set the stage now for the budget discussions in the spring."

7.5 better ways to balance the budget

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OPINION In Mayor Gavin Newsom’s seven-and-a-half-hour YouTube series on the state of our city, he spends barely 30 seconds addressing the budget deficit.

Newsom’s mid-year budget cut plan is completely out of touch with the fundamental priorities of our city. At a time when residents are feeling the impact of the recession in their daily lives, the mayor’s plan guts our public health safety net by slashing programs that serve seniors on fixed incomes and by reducing frontline healthcare workers.

What’s more, the mayor’s mid year cuts leave untouched his bloated senior staff and protects management-heavy departments around City Hall.

So, in response to the effort to balance the budget by slashing tens of millions in health services for the city’s neediest, a coalition of health workers, health providers, and patients are putting forward alternative ways to address the city’s budget problem that are worth our time and thought.

Among the ideas offered by the Coalition to Save Public Health are the following:

1. Start at the top, not at the bottom. Since the mayor first took office, the number of highly paid managers has skyrocketed while the number of employees providing basic city services has stagnated. It’s time to tighten our belt at the management level and eliminate all but the most essential positions that pay more than $100,000 per year.

2. Practice what you preach. In November 2007, the mayor announced a non-essential hiring freeze to deal with the budget crunch. Newsom then promptly spent hundreds of thousands of dollars hiring new senior staff including highly paid and duplicative special assistants for climate control initiatives, "neighborhood empowerment," and a new greening czar. All new staff hired since November 2007 who are paid more than $100,000 should be cut.

3. Cut duplicative programs. The city spends more than $10 million per year on small business outreach and economic development. The Mayor’s Small Business Assistance Center duplicates those services and costs nearly $800,000 every year.

4. Listen to the voters — cut the Community Justice Court. Proposition L was rejected by more than 57 percent of the San Francisco electorate. It’s time to listen to the voters and preserve revenue by cutting current-year funding for the CJC.

5. Save on spin, spend on substance. A recent controller’s report found that the city spent more than $10 million in salaries for public relations and public information staff, including funding for seven people in the Mayor’s Office of Communications last year. The mayor should cut all unnecessary PR staff and reduce his spin operation to two people.

6. Cut the fat, not the bone. Both police and fire unions are due for 7 percent pay increases. As the city cuts salaries or lays off staff across the board, the mayor should work with the board to reopen fire and police contracts.

7. Eliminate unnecessary drivers. For years, the Fire Department’s battalion chiefs have relied on "chief’s aides" to chauffer them around the city. The estimated cost for these positions is more than $2 million.

7.5 Cut in half the city’s contribution to the opera and symphony. In the current year, the city is contributing close to $4 million in General Fund revenue to the operation of the opera, symphony, and ballet. We can’t afford to subsidize organizations with enormous endowments while we slash services for people in need.

Aaron Peskin is president of the Board of Supervisors.

Tap dreams

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› amanda@sfbg.com

On Dec. 2 two water conferences were held in San Francisco, attended by very different groups of people.

Downtown, in a room deep within the Hyatt Regency hotel, executives from PepsiCo, Dean Foods, GE, ConAgra, and other major companies gathered for the Corporate Water Footprinting Conference. The agenda that the conference made public included a presentation by Nestlé on assessing water-related risks in communities, Coca-Cola’s aggressive environmental water-neutrality goal, and MillerCoors plan to use less water to make more beer.

But what these giant corporations, which are seeking to control more and more of the world’s water, really discussed the public will never know. Only four media representatives were permitted to attend — all from obscure trade journals not trafficked by the typical reader — and both the Guardian and the San Francisco Chronicle were denied media passes.

The event was sponsored by IBM, and tickets were $1,500 — out of reach for many citizens and environmentalists who might have liked to attend.

And why might people take such a keen interest in the kind of corporate conference that probably occurs routinely in cities throughout the world?

Because there’s almost universal agreement that the world is in a water crisis — and that big businesses see a huge opportunity in the privatization of water.

Only one half of 1 percent of all the water in the world is freshwater. Of that, about half is already polluted. Although water is a $425 billion industry worldwide — ranking just behind electricity and oil — one in six people still don’t have access to a clean, safe glass of it. If the pace of use and abuse remains, the 1.2 billion people living in water-stressed areas will balloon to more than 3 billion by 2030.

That includes California. On June 4, Gov. Arnold Schwarzenegger declared a statewide drought after two lackluster seasons of Sierra snowfall. Scientists are predicting the same this winter. You can see how the state is mishandling the issue by looking at some recent legislation. Schwarzenegger and Sen. Dianne Feinstein have proposed a $9.3 billion bond to build more dams, canals, and infrastructure. At the same time, the governor vetoed a bill that would have required bottled water companies to report how much water they’re actually drawing out of the ground.

In that context, while the big privatizers were hobnobbing at the Hyatt, activists were attending a very different event, the "Anti-Corporate Water Conference," held at the Mission Cultural Center. It was free and open to the public and the media. More than 100 people gathered to hear a cadre of international organizations share information on how to keep this basic human right — water — in the hands of people.

Speakers included Wenonah Hauter, director of Washington, DC-based Food and Water Watch; Amit Srivastava of Global Resistance, a group that works to expose international injustices by Coca-Cola; Mark Franco, head of the Winnemem Wintu Tribe, which lives among water bottling plants near Mount Shasta; and Mateo Nube, a native of La Paz, Bolivia, and the director of Movement Generation Justice and Ecology Project.

Nube spoke about water as a commons, requiring stewardship, justice, and democracy. "We’re literally running out of water. Unless we change the way we manage, distribute, and consume water, we’re going to have a real crisis on our hands," he said. Nube’s remarks tied together the tensions of control and revolt, democracy and privatization, ecological balance and human need — all enormous issues, all related to water and water scarcity, which the Worldwatch Institute has called "the most under-appreciated global environmental challenge of our time."

BASIC NEED, INFINITE MARKET


Water is a basic human need, perhaps even more important than clean air, food, and shelter. People will never strike against water and stop drinking.

And that means, from a capitalistic point of view, it’s a perfect, nearly infinite market. "As water analysts note, water is hot not only because of the growing need for clean water but because demand is never affected by inflation, recession, interest rates or changing tastes," wrote Maude Barlow in her 2007 book Blue Covenant.

If scarcity drives price, anyone with a stake in the water industry stands to gain from an increasingly water-stressed world. As Barlow also reported, "In 1990, about 51 million people got their water from private companies, according to water analysts. That figure is now more than 300 million." By controlling the resource and choosing when and if they engage with the public it allows some of the biggest water abusers to set the terms of a critical ongoing debate.

The fact that humans need water raises important questions: should water be classified as a basic human right available to everyone? Is water part of the commons? If so, should corporations be allowed to control the taps or bottle it, mark up the price, and sell it for profit?

Not much polling has been done on people’s opinions of water, but during 35 informal on-the-street interviews conducted by the Guardian, 31 people said it is a basic human right. The other four said it was subject to the laws of supply and demand.

This week marks the 60th anniversary of the United Nations Universal Declaration on Human Rights, and Barlow, who has been appointed special advisor on water to the UN, will be addressing the General Assembly on the fact that water is still missing from the original 30 Articles.

"The reason that water was not included in the original 30 Articles in the Universal Declaration of Human Rights is that no one at that time could conceive there would be a problem with water," Barlow told the Guardian. "It’s only in the last 10 years that the concept of water as a human right has come to the fore."

The problem has its roots in the inherent conflict between conservation and profit. Saving water is relatively cheap, but there’s no money to be made by eliminating waste. Developing expensive new water sources, though, is a potential private gold mine.

As Barlow points out in her book, technology is becoming an integrated part of the solution to the water crisis. Desalination plants, water recycling facilities, and nanotechnology are all being thrown at the problem — in some cases before a full assessment of use and abuse has occurred.

While technological solutions may be warranted in some places, Barlow worries that relying on them bypasses any true attempts at efficiency and conservation. "I’m not going to say there’s no place for water cleanup," she told the Guardian. "What I’m concerned about is we’re going to put all the eggs in the cleanup basket and not nearly enough in the conservation and source protection basket. What I’m concerned about is the idea that technology will fix it. Meanwhile, don’t stop polluting, don’t stop the over-extraction, allow the commercial abuse of water, allow the agricultural abuse of water because what the heck, there’s tons of money to be made cleaning it up. I think that’s the wrong way of coming at it."

The technological fix is one way the state’s water crisis may slowly seep into private sector control, and a couple of examples show what can happen when private companies don’t play nice with the public, how citizens constantly battle with state agencies to enforce regulations, and how the public process could and should be honored.

GET THE SALT OUT


In theory, California has plenty of water — its 700 miles of coastline border the giant reservoir known as the Pacific Ocean. But humans can’t drink salt water — and some companies see a nice industrial niche in that dilemma. Build a plant that takes out the salt, and suddenly there’s plenty for all.

Several small desalination facilities already exist throughout the state, mostly cleaning water reservoirs brined by agriculture. But another 30 desalination plants have been proposed for the coast as a way to deal with future water shortages.

One is in Carlsbad, near San Diego, where Poseidon Resources is constructing the only large-scale desalination plant that the state has permitted to date. It’s a 10-year-old project that, so far, doesn’t even have a pipe in the ground.

Despite Poseidon’s ability to grease the wheels with local officials, the facility is controversial. It sits next to a fossil-fuel burning peaker power plant, and will be desalinating the power plant’s discharge water, thus shielding its negative environmental impacts by claiming its the power plant that’s sucking up seawater and damaging marine life — the desalination plant is just making use of the wasted water.

That argument doesn’t sit well with Joe Geever of the Surfrider Foundation, who pointed out that part of the power plant is scheduled for a retrofit to air-cooling, and talk is of a potential state ban on using water for this type of cooling system. There are other more environmentally benign seawater extractions, he said, like drilling and capturing subsurface sources, that the desalination plant could have used.

Mostly, he contends, the plant subverts conservation. "Per capita consumption of water in San Diego is much higher than other places," he said. "In southern California we waste an enormous amount of water on growing grass. There’s a lot to be saved."

Poseidon, a private company, is footing the bill for the plant’s construction, but the financing scheme is predicated on a future increase in the cost of water. As Poseidon’s Scott Maloni explained to the Guardian, the contract with the San Diego Water Authority states that the cost of desalinated water can never be more than the cost of imported water. It can, however, walk in lock-step with it — and by all accounts the price to pipe water to sunny southern California is going to increase. Maloni said his company was taking an initial loss but would start paying itself back as imported water costs increase. Eventually rates will be set halfway between the real cost of desalinated water and the higher cost of imported water.

What kinds of guarantees are there that this will happen? Nobody knows. "They’ll say anything, but when it comes to showing you a contract, we’ve never seen anything," said Adam Scow of Food and Water Watch. "There’s a lack of regulation with a private company controlling the water."

The plant now has no less than three lawsuits hanging over it, all filed with state agencies in charge of permitting and oversight — the Coastal Commission, the State Lands Commission, and the San Diego Regional Water Quality Control Board. All basically contend that the state didn’t do enough to require Poseidon to implement the most environmentally sound technology that’s least harmful to marine organisms, as required by state law.

Geever stresses that desalination is an energy-intensive way to get water. "Every gallon of water you conserve is energy conserved," he said. "Not only could San Diego do more conservation, but they don’t recycle any wastewater to potable water standards. That’s much less energy intensive."

Poseidon counters by saying that it invested $60 million in energy efficiency measures for the plant and will be installing solar panels on the roof. Perhaps most telling is that the company sees itself as vending reliability. "It’s not the current cost of water the San Diego Water Authority is concerned about, but the future cost for an acre-foot," Maloni said. "There’s a dollar figure you can put on reliability. Public agencies are willing to pay us a little more for that."

Which gets back to a comment Barlow made about capitalizing on crisis. "We are frightened half to death and everyone who looks at it, right-wing or left-wing, sees that. … They use the crisis to say we have no alternative except to go into massive desalination plants."

And, as Peter Gleick, president of the Pacific Institute pointed out, San Diego wasn’t calling for proposals to bring it more water. "Poseidon wanted to build a desalination plant and it came to San Diego. That’s one way to do it. The other way is for a municipality to say we want a desalination plant, we’re opening it up to bids, let’s have a competition. That didn’t happen, and instead we have one contractor."

Geever added, "Poseidon has been really successful at lobbying politicians and convincing regulators to give them permits."

Which points to one of the chronic ills of managing water systems, particularly in California where water has always been political. "In the 20th century decisions about water were made by white males in back rooms," said Gleick. "It solved a lot of problems, but it led to a lot of environmental problems. The days when water decisions made in back rooms should be over. And they aren’t over, and that’s part of the problem."

DELTA BLUES


Nowhere is that more obvious than the delta, where the state’s two most prominent rivers — the Sacramento and the San Joaquin — meet the Pacific Ocean just north of San Francisco. It’s ground zero for one of the most charged political fights in the state.

Two-thirds of California’s water comes from the delta. About 80 percent of it goes to cropland, watering about half of the state’s $35 billion agricultural industry, much of it through historic water rights that have been granted to a small lobby of powerful growers who sell their surplus rights for profit. Another 18 percent goes to urban water needs, and — in spite of the fact that this is the largest estuary on the west coast of North and South America — only 2 percent of the water remains for natural environmental flows.

Delta issues are legion and begin at the headwaters of the Sacramento River, near Mount Shasta, a land Mark Franco describes as an Eden. "The deer, salmon, and acorns that we eat — everything that we need is there," Franco told the Guardian. "It’s such a beautiful place. Now they’re drying it, that Eden."

Franco is head of the Winnemem Wintu, or "little water people" tribe, and is fighting the first phase of water diversions from the Sacramento River, 200 miles north of the capitol where companies like Coca-Cola, Crystal Geyser, and now, potentially, Nestlé, pump millions of gallons a year into small plastic bottles and ship it around the country to sell in groceries and convenience stores.

"Here in the US, people have become soft. They’ve become so used to just having things directly handed to them that they no longer understand where their water comes from," he said at the anti-corporate water conference. "Realize this: those springs on Mount Shasta are not an infinite supply of water."

After the Sacramento feeds the bottled-water companies, what remains wends its way south, with more diverted directly to farmers and into the State Water Project, which pipes it to drier southern regions. What’s left empties into the delta.

A lack of fresh water, flagging environmental preservation, increasing agricultural needs, and leveed island communities that are seismically unsafe and sinking, all mean the delta is failing as an ecosystem, and has been for some time. Chinook salmon and delta smelt populations are collapsing to such an extent that court orders have halted a percentage of water diversions and salmon fisherman were forced to dock their boats this year. Levees are crumbling, causing islands to flood and raising ire among landowners. Farmers with historic water rights are fiercely protective of them, while environmentalists are lobbying them to use more conservation and efficiency.

Nearly all stakeholders agree that the status quo won’t hold.

The challenge is finding a solution. Ending exports seems impossible, limiting them means massive investments in other resources. No one agrees on what will really save the endangered salmon and smelt or improve conditions for the 700 other native plants and animals.

In 2006, the governor convened a seven-member Delta Vision Blue Ribbon Task Force, which released a strategic plan in October calling for balancing co-equal goals of ecological restoration and water reliability.

The plan also specifically recommended a dual conveyance system similar to what was proposed in a study by the Public Policy Institute of California. It combines some through-delta pumping with a peripheral canal around the delta. PPIC crunched the numbers and determined that the canal was economically better than any of the four options they had weighed.

The peripheral canal idea isn’t new, but it’s been controversial since it was first proposed almost three decades ago. The plan was ushered by then-Gov. Jerry Brown, but defeated by voters in 1982 after a major organizing effort by environmentalists. (Whether voters will cast ballots on it this time remains to be seen, though the Attorney General’s Office, now headed by Brown, has counseled the Department of Water Resources, which is charged with implementing whatever plan is decided upon, that a vote of the people isn’t required.)

Shortly after its release in July, the PPIC report was criticized by five elected Congressional Democrats — Reps. George Miller, Ellen Tauscher, Doris Matsui, Mike Thompson, and Jerry McNerney. "The PPIC report should not be used to ignore the many things that can be done today to restore Delta health, including providing necessary fish flows, undertaking critical ecosystem restoration projects, and making major investments in water recycling and improved conservation measures," Miller said.

Numbers used by the PPIC report have also been criticized by Jeffrey Michael, a business professor at the University of the Pacific in Stockton. In an analysis of PPIC’s work, Michael said the group had used inflated population figures, as well as high costs for desalinated and recycled water, therefore resulting in a report that made it look like it was too expensive to end delta exports altogether and replace them with other water sources.

The PPIC said the state’s population would be 65 million by 2050, that desalinated water costs $2,072 per acre-foot, and recycled water goes for $1,480 per acre-foot — numbers that were scaled to 2008 dollars from 1995 figures. Michael contends that if the numbers were adjusted to reflect actual costs, the peripheral canal wouldn’t look like such a sweet deal.

Maloni, of Poseidon Resources, said the desalinated water cost would be $950 per acre-foot for San Diego, including a $250 subsidy. A similar plant the company is hoping to construct in Huntington Beach will be about $50 more per acre foot.

When asked if $2,100 per acre-foot was a reasonable figure for desalinated water in California, Maloni said, "That’s nuts."

What does all this illustrate? That even among a small cast of purported experts there’s little consensus on several fundamental issues.

Adding more fuel to the fires of public skepticism is that a third of the funding for the PPIC report came from Stephen D. Bechtel Jr. — heir to the Bechtel Corp., which has come under tremendous criticism for its moves to privatize water around the world.

"That is very upsetting to us. They would stand to gain a lot with a contract to build a peripheral canal," said Barbara Barrigan-Parrilla of Restore the Delta.

PPIC’s Ellen Hanak said the funding didn’t affect their findings. "It’s really much more linked to the fact that the foundation is really interested in the environment and water is a part of that."

Linda Strean, the PPIC’s public affairs officer, told the Guardian that it was Bechtel himself who wrote the check, not the foundation. It’s the first time Bechtel has given to PPIC.

But considering Bechtel’s past performance managing water, it doesn’t inspire much confidence.

BECHTEL’S BIG ADVENTURES


In April, Cesar Cardenas Ramirez and César Augusto Parada, traveled from Guayaquil, Ecuador, to San Francisco. The two men were on a fact-finding mission: they wanted to know more about the company that owns Interagua, the company that is supposed to deliver the drinking water that only occasionally comes out of the taps in their homes.

One of the first things they discovered is that 50 Beale St. doesn’t necessarily advertise itself as the home of Bechtel — one of the world’s largest private corporations, with global construction and infrastructure contracts amounting to billions of dollars annually.

In Guayaquil, water service has been problematic for decades. During the 1990s the country received a loan from the Inter-American Development Bank to improve basic infrastructure. The money was given directly to the government, but like many World Bank and International Monetary Fund loans granted throughout Latin America at the time, it was predicated on an eventual privatization of the water service contract.

The money helped — water conditions improved, and the city seemed to be on track to bring service to outlying areas. But in 2000, the city, abiding by the loan conditions, requested bids to run the water and sewage systems. No bids were received. Leaders scaled back provisions that kept some control in the hands of the government, and they got one response. In 2001, Interagua, a company owned by Bechtel, took over water service.

"Since the contract, nobody has been able to drink the tap water," Cardenas, who represents the Citizen’s Observatory for Public Services, a watchdog group formed in Guayaquil to monitor the water contract between the government and Interagua, told the Guardian. "Prior to the contract you could drink the tap water, although there were some sections of the city where the plumbing was old and inadequate."

Even though Interagua is managing a public service, because it’s a private company, information about its exact responsibilities have been elusive. The Observatory does know that Interagua pays nothing for the water it draws from the local river, is guaranteed a 17 percent rate of return, and that it has a minimum mandate to expand service. What’s also known is its citizens’ experience — during the first six months of the contract, some rates were increased 180 percent.

Bechtel’s SF office refused to meet with the two men or answer their phone calls, e-mails, and letters, which highlights the inherent problem with corporate control of water — a lack of accountability. Bechtel didn’t answer any of the Guardian‘s detailed questions regarding the Interagua contract, and only provided a three-page letter originally drafted to the World Bank in December 2007, that paints a rosy scene of productivity and accomplishment in Guayaquil.

"At present, over 2.1 million residents of Guayaquil (84 percent of the population) are connected to the municipal potable water system, and more than 90 percent of the customers have 24-hour per day, uninterrupted service." The letter goes on to state that coverage is expanding with new connections, water quality meets public health standards, prices have decreased, and procedures are in place to help customers who have higher than average bills.

"There are things that have improved, yes," said Emily Joiner, who spent last summer in Ecuador and is author of the book Murky Waters, a history of water issues in Guayaquil published by the Observatory in 2007. But the bottom line is that citizens pay for the service, but they can’t drink the water.

"You still don’t drink the water anywhere in the city at any time," said Joiner. People buy bottled water or boil it. "Bottled water is expensive, as a percentage of income," she said.

Whereas water service was previously priced more like a progressive income tax, with the lowest consumers paying the lowest rates, Interagua has flattened out the rate structure and now big water consuming businesses are paying the same as residents. "It’s pricing some families out of the market," Joiner said. "It’s great for business. It’s not great for people who don’t have enough water to bathe or wash their clothes."

The Observatory would like the water system turned back over to the government. The local authority, which once ran the water service and is now charged with overseeing Interagua, fined the company $1.5 million for not meeting goals for expanding service. According to Joiner, there’s been no follow-up on whether the company is meeting those goals now.

The Observatory also filed complaints with the World Bank, which attempted a settlement, but, according to Joiner, representatives from Interagua refused to sit down at the same table as Cardenas. "The process stalled," Joiner said. "Interagua said the issue had become too politicized. César [Cardenas] has a reputation for rabble-rousing, and at the time he was lobbying for constitutional amendments outlawing privatization. Interagua considered it negotiating with a hostile party."

A new constitution was passed in September that does, in fact, outlaw privatization, but still allows existing contracts to be honored if they pass a government audit.

In the meantime, the local rumor is that Bechtel is arranging to sell Interagua to another company. Bechtel wouldn’t confirm this, and no one could say more beyond what was reported in speculative articles in Guayaquil’s local newspapers.

It wouldn’t be the first time Bechtel bailed on an international water contract. In what was part of a massive privatization of a variety of Bolivia’s national services, in 1996 the World Bank granted the city of Cochabamba a $14 million loan to improve water service for its 600,000 citizens. Like Ecuador, there were strings attached: a future privatization of the city’s water service. It was sold to Aguas del Tunari, the sole bidder — also a subsidiary of Bechtel. Almost immediately rates increased by nearly 200 percent for some families. In January 2000, people stopped paying, started rallying, and the water war began.

Led by La Coordinadora for the Defense of Water and Life, organizers shut down the city, physically blockading roads and demanding the regional governor review the contract. The battle went on into February, resulting in injuries to 175 people and the death of one. Originally the government announced a rate rollback for six months, but the Bechtel contract remained. "The [Bechtel] contract was very hard to get a hold of," Omar Fernandez of the Coordinadora told Jim Schulz of the Democracy Center. "It was like a state secret." Once they did examine a copy of it, Bechtel’s sweetheart deal for a guaranteed 16 percent profit was exposed and people demanded a full repeal.

Eventually, the residents got it, and though decent water service in Cochabamba is still elusive, the water war has become the poster child for successful grassroots activism.

"One of the most inspiring struggles around community control of water happened in Cochabamba, Bolivia, in the year 2000, when international corporation Bechtel — based here in San Francisco — privatized the municipal water system and hiked the water rates for citizens by 30 to 40 percent. Thankfully, there was a popular upsurge. It was a very bitter struggle and people succeeded in turning control back to public hands.

"This success changed the public debate in Bolivia," said Mateo Nube, a native of La Paz, Bolivia, who spoke at the anti-corporate water conference. "People said ‘enough’ to privatization, enough to corporate control. We need to seize control of our government."

You don’t have to go to Bolivia to find water-privatization battles. In 2002, catching wind that the city of Stockton was on the brink of privatizing its water services, the Concerned Citizens Coalition rallied signatures for a ballot measure against the idea. Weeks before the vote, the Stockton City Council narrowly approved one of the west’s largest water privatization deals — a 20-year, $600 million contract with OMI-Thames. The ballot measure still received 60 percent approval, and activists took the issue to court arguing there hadn’t been a proper CEQA process. In January 2004, according to the Concerned Citizens Coalition Web site, "San Joaquin County Superior Court Judge Bob McNatt ruled in our favor — we won on all points. The judge ruled that privatizing, in and of itself, needed environmental review." The city appealed, but eventually dropped the suit and OMI walked away in March 2008.

PUBLIC AGENCY, PUBLIC PROCESS


Bechtel also failed to hold on to a more local contract, a $45 million deal with the SFPUC to manage the first phase of its multibillion dollar Water System Improvement Project. After a 2001 story by the Guardian exposed Bechtel’s exorbitant billing for services that resulted in few gains (see "Bechtel’s $45 million screw job," 9/12/01), the contract was revoked by the Board of Supervisors and granted to Parsons, which runs it now.

Years later, in 2007, when the SFPUC released a draft of the Environmental Impact Report for the $4.4 billion project, massive public outcry arose against it. The plan outlined major seismic upgrades for miles of aging water infrastructure between San Francisco and Yosemite National Park, where the headwaters of the Tuolumne River are captured by a giant dam in Hetch Hetchy Valley and gravity-fed to the city. While the EIR projected little additional water use for San Franciscans, it called for diverting an additional 25 million gallons of water per day from the Tuolumne to meet the needs of 23 wholesale customers in San Mateo, Santa Clara, and Alameda counties.

The Pacific Institute and Tuolumne River Trust collaborated on a study showing that 100 percent of the anticipated water increases were for those wholesale customers — most of it for outdoor water use. The SFPUC hadn’t factored in any increased conservation, efficiency, or recycling measures, nor had it independently questioned the growth numbers.

The EIR received upwards of 1,000 public comments, more than any other document ever generated by the SFPUC. Environmental groups rallied, writing editorials, flooding public meetings, and asserting a different vision of the Bay Area’s water future and stewardship of its primary, pristine water resource.

And it worked. "We got about 95 percent of everything we wanted out of the WSIP process," said Jessie Raeder of the Tuolumne River Trust. "We do consider the WSIP a huge win for the environmental community … because we were able to organize and get a seat at the table and discuss this with the PUC." She said the Bay Area Water Stewards, a coalition of environmental groups, met with the PUC nearly every month and slowly the initial additional river diversions were pared down to a possible 2 million gallons. Also, a cap has been placed on any diversions until 2018, which gives agencies time to implement conservation and efficiency measures.

The SFPUC feels positive about it, too. "We are really thrilled that the program EIR was approved by the Planning Commission, approved by the PUC, and not appealed," said spokesperson Tony Winnicker. He said there were really controversial elements and the trick was balancing the competing interests of wholesale customers and environmental groups. "It took a really hard-nosed look at our demand projections and what we could really do for conservation." He concedes there are still controversies, in particular over the Calaveras Dam, which the Alameda Creek Alliance opposes. "It would be hubris for us to say it’s been a complete success."

"This is a process that would only occur through a public agency," Winnicker added.

"What we saw with the WSIP was a solution where everything was fully transparent," Raider added. "It was all a public process, and there was plenty of opportunity for public input."

Which is really what a public water utility should be doing. "When you’re talking about public water, it isn’t them, it’s us," said Wenonah Hauter, director of Food and Water Watch. "A public water system is only as good as the people involved with it."

DRINK LOCALLY


"This conference isn’t a public event," organizer Andrew Slavin told the Guardian when we tried to gain admittance to the Corporate Water Footprinting Conference. While water activists rallied outside deriding the corporations inside for greenwashing their images, Slavin said that the fact that the conference wasn’t open to the public proved that the corporations weren’t trying to do environmental PR. "If they’re trying to do greenwashing this isn’t the place to do it. The aim is to try to share information."

Slavin pointed to representatives speaking from the Environmental Protection Agency, the SFPUC, and NGOs like the World Wildlife Fund. From an environmental perspective, if these companies are going to be using water, isn’t it worth working with them to reduce their impacts?

"There are companies I call water hunters," explained Maude Barlow. "They destroy water to make their products and profit. Unfortunately, some of the companies that are leading this conference are bottled water companies. I don’t know how you can become ‘water neutral’ if your life’s work is draining aquifers."

Many water activists consider bottled water the low-hanging fruit as far as getting people to change behaviors. San Francisco banned the use of tax dollars to buy it, and the SFPUC has been promoting its pristine Hetch Hetchy tap water, gravity-fed from Yosemite National Park. "Bottled water companies are basically engaged in a multiyear campaign. Their marketing approach is you can’t trust the tap, your public water isn’t safe," Winnicker said.

Slavin said he thought it was weird to protest the conference, because the corporations are genuinely trying to avoid conflicts. He pointed to a company called Future 500 that has created a business out of mediating between corporations and communities. "It’s hard for companies to speak to people so they use other companies to do it," Slavin said.

In fact, representatives from Future 500 appeared to be the only conference attendees who stepped outside to watch the protest.

"I think it’s great," Erik Wohlgemuth of Future 500, said of the protest. "I think press should have been there. I think more of these voices should have been there. My personal view is they need to come up with some sort of reduced rate to allow these nonprofits to attend these kinds of conferences."

Jeremy Shute, a representative from global infrastructure company AECOM who was standing with Wohlgemuth, said, "There’s a tremendous amount of research and thought going into these questions and it would be great if that knowledge could be shared."

But is that going to happen when private companies cite "proprietary interest" as a reason for not sharing more information about their businesses? Or when they don’t have to abide by public records laws, leaving their contracts shielded from public scrutiny? Or when they refuse to answer calls from their constituencies and the media? In which case, should those advocates be in the same room as some of the biggest water users in the world? When pressed with the question, Slavin seemed stumped. "Why didn’t we invite them?" he asked. Then, after a long, thoughtful pause, he said, "I don’t know."

————————

WATER, BY THE NUMBERS

One-half of 1 percent of the world’s water is fresh. [1]

Of that .5 percent, about 50 percent is polluted. [2]

One in 6 people don’t have access to clean, safe water. [3]

Five food and beverage giants — Nestlé, Unilever, Coca-Cola, Anheuser Busch, and Groupe Danone — consume almost 575 billion liters of water per year, enough to satisfy the daily water needs of every person on the planet. [4]

The average human needs about 13 gallons of water each day for drinking, cooking, and sanitation. [5]

An average North American uses about 150 gallons of water each day. [6]

An average African: 1.5 gallons. [7]

An average San Franciscan: 72 gallons. [8]

The average Los Angeles resident: 122 gallons. [9]

About half the water used by a typical home goes for lawns, gardens, and pools. [10]

50 percent of US water comes from non-renewable groundwater. [11]

86 percent of Americans get their water from public water systems. [12]

80 percent of California’s homes get water from public systems. [13]

The 20 percent of CA households receiving water from privately-owned systems pay an average of 20 percent more for it. [14]

Of the 4.5 billion people with access to clean drinking water worldwide, 15 percent are buying it from private water companies. [15]

It takes 3 liters of water to produce 1 liter of bottled water. [16]

Tests of 1,000 bottles of water spanning 103 brands revealed that about one-third contained some level of contamination. [17]

The bottled water industry is worth $60 billion a year. [18]

Water is the third biggest industry in the world, worth $425 billion, ranking just behind electricity and oil. [19]

About 70 percent of CA’s water lies north of Sacramento, but 80 percent of the demand is from the southern two-thirds of the state. [20]

[1] www.gwb.com.au/gwb/news/mai/water12.htm

[2] Maude Barlow, interview with SFBG

[3] foodandwaterwatch.org/world/utf8-america/water-privatization/ecuador/bechtel-in-guayaquil-ecuador

[4] The Economist magazine

[5] www.ens-newswire.com/ens/mar2002/2002-03-22-01.asp

[6] www.canadians.org/water/publications/water%20commons/section4.html; environment.about.com/od/greenlivinginyourhome/a/laundry_soaps.htm

[7] montessori-amman-imman-project.blogspot.com/2008/01/in-news-interview-with-ariane-kirtley.html; answers.yahoo.com/question/index?qid=20080304195801AAnrv4Y

[8] sfwater.org/mto_main.cfm/MC_ID/13/MSC_ID/168/MTO_ID/355

[9] www.nwf.org/nationalwildlife/article.cfm?articleId=928&issueId=68

[10] American Water Works Association

[11] www.canadians.org/integratethis/water/2008/May-28.html

[12] www.foodandwaterwatch.org/water/private-vs-public

[13] California Public Utilities Commission

[14] Black and Veatch’s 2006 California Water Rate Survey

[15] www.canadians.org/water/publications/water%20commons/section2.html

[16] www.pacinst.org/topics/water_and_sustainability/bottled_water/bottled_water_and_energy.html

[17] Natural Resources Defense Council study, "Pure water or pure hype?" (1999)

[18] www.bottlemania.net/excerpt.html

[19] www.timesonline.co.uk/tol/money/article4086457.ece; thegreenblog.leedphilly.com

[20] www.energy.ca.gov/2005publications/CEC-700-2005-011/CEC-700-2005-011-SF.PDF

Ricky Angel and Katie Baker assisted with research.

Newsom’s shocking Board appearance

2

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WTF?! Mayor Gavin Newsom shocks everyone by making a surprise “Bad News” visit to the Board.

Photos by Luke Thomas
Text by Sarah Phelan

For years, voters have been asking Mayor Gavin Newsom appear before the Board of Supervisors for monthly policy discussions. And for years, MGN has refused, claiming that such invites were “political theater.”

So, eyeballs understandably popped and jaws dropped when Newsom showed up at today’s Board meeting.
What could have possibly got the Mayor to come and talk to the Board?

A $576 million budget deficit, as it turns out. That’s almost half the City’s $1.2 billion in discretionary funds.

“That arguably makes it the most daunting crisis since the Great Depression,” Newsom observed.

But while the Mayor claimed he had come to the Board to “share the challenge”, he did not share copies of his proposed solution, until hours later at a press conference he did not attend. In other words, no one could ask the Mayor hard questions about his proposed plan in real time. And that was a tad frustrating.

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The media try to make sense of the Mayor’s proposal as Dr. Mitch Katz talks about what it means for the City’s Public Health Department.

Instead, Newsom did what he seems to do best: he stood there, hair and nails immaculate, spouting numbers, percentages, and statistics about his package which he dubbed, ” $118 million in proposed mid-year solutions.”

Somehow,he didn’t get to the part about the 399 pink slips that will be sent to City workers on Friday, or the 313 vacant positions that will also be eliminated.

Those details were left to Controller Ben Rosenfield and Budget Director Nani Coloretti to share with the press, as we stood in the International Room, surrounded by glass cases filled with signed memorabilia from the likes of “Their Royal Highnesses” Prince Charles and his wife Camilla.

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The Mayor’s “dream team” address media questions in the International Room,

It also fell lto the Mayor’s financial team to spell out that this mid-year proposal only addresses $100 million of the problem, meaning 2009-2010 will likely look four times worse.

Meanwhile, some supervisors were left wondering of there will there be any meaningful collaboration between Newsom and the Board, or whether it will take the form of the usual feral faction versus manicured tribe?
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Sup. Chris Daly wonders aloud about “real collaboration.”

“We have the capacity, the ingenuity and the spirit to solve this,” Newsom told the Board, looking painfully alone as he stood in their chambers this afternoon.”It’s going to take all of us working together. It’s in that spirit that I am here..The mid-year solution–difficult and painful as it is–its he easy part. The difficult part comes in the next four months.”
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His appearance was a good first step, but will he follow it up with regular monthly visits, so that the Board can engage him in policy discussions, as per their voters’ requests?

It looks as if the Board isn’t banking on it: Peskin and his fellow supervisors have put together their own package of solutions–an ordinance deappropriating $8.5 million in alternative cuts from the General Fund.

As one aide told me, “It’s important for the Board to set the stage now for the budget discussions in the Spring.”

But it would be great if there was a silver lining to the global crisis-in which the SF Board and Mayor started acting as equal partners in their efforts to save what they can from the economic wreckage.
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Newsom swears in Campos

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By Steven T. Jones

A day after appointing David Campos to fill the Board of Supervisors seat vacated by new Assemblyman Tom Ammiano (which Campos won in last month’s election), Mayor Gavin Newsom marveled at the huge and enthusiastic crowd that showed up at City Hall for Campos’s swearing in ceremony.

camposswearin1208.jpg

“Thanks for coming here on remarkably short notice,” Newsom said. “I’m impressed with his ability to raise a crowd, which is a cautious warning as well.”

Indeed, after an election in which progressives such as Campos consolidated their legislative power, Newsom does have something to fear if he continues with his autocratic attacks on progressive priorities, as we could see more of tomorrow when he is scheduled to announce a package of mid-year budget cuts.

But for today, they were just one big city family, a tone strongly set by Campos, who pledged to work well with Newsom, fellow supervisors, and those who supported other candidates in his race. And he singled out Ammiano for special praise, telling him, “I’m going to do my best to make you proud.”

Transforming traffic analysis

0

› news@sfbg.com

GREEN CITY A court injunction against new bicycle projects in San Francisco (see "Stationary biking," 5/16/07) could get lifted next year, thanks to environmental studies released Nov. 26 and headed to the Board of Supervisors next month. But it’s a subtle, technical change in how city officials analyze traffic impacts that could have a more far-reaching implications.

It’s called Level of Service Reform and it would change the triggering mechanism for when projects need to conduct full-blown environmental impact reports, an expensive and time-consuming requirement that led to the three-year bike project injunction. And LOS reform has been rattling around the city bureaucracy long before the Guardian wrote about it two-and-a-half years ago ("The slow lane," 5/17/06).

"It’s either wonderful that I started working on this in 2002, or it’s embarrassing," Rachel Hiatt of the San Francisco Transportation Authority told a Nov. 19 meeting of TransForm (formerly the Transportation and Land Use Coalition) on the subject.

The California Environmental Quality Act of 1970 requires EIRs for projects with potentially significant environmental impacts, as is the case when the level of service (LOS) at an intersection could be changed. LOS is measured by the amount of time it takes a car to pass through a given area. The time consumed by the car is often referred to as control delay. Measured by grades A through F, control delay per motor vehicle times of up to 30 seconds (E grade) are acceptable in San Francisco.

Designating sections of certain busy streets to accommodate a bike lane would affect the control delay, thereby earning the area a lower LOS grade. Since cars now essentially have priority over alternative forms of transportation, many potential bike lanes have been stranded by the LOS standard.

City officials are working to replace the LOS measure with a new one based on auto trips generated (ATG), using 1 ATG as the threshold for an EIR. Projects that generate no car trips will not be seen as having any environmental impact, thereby moving through the approval process quicker and cheaper.

"LOS needs to be taken out of the picture," Hiatt said.

The argument for LOS replacement is not solely about the need to accommodate other transit modes, but about lowering costs and making government more efficient. Hiatt outlined other problems with the current measure as the failure to accurately gauge environmental impact, failure to reflect the city’s "transit-first" policy priorities, and an inefficient CEQA review process.

Development advisor Mike Yarne of the San Francisco Mayor’s Office of Economic and Workforce Development said that if the city wants to topple LOS, the Transit Authority has a case to make. "What the TA needs to show is that ATG is a more effective proxy to calculate environmental harm," Yarne said.

The city is also considering instituting a mitigation fee to be paid by project sponsors to compensate for environmental impact. Proceeds from the fee will be used to enhance all existing modes of transit, pedestrian safety, and could even include planting trees.

"The fee will go toward making people move faster," Yarne said.

Yarne admits that it could be a little difficult to make both changes at once. San Francisco will be the first city in California to create a mitigation fee, so other cities are taking notes.

"It would be quite an accomplishment if we could make it happen. It’s never been done," explained Yarne, noting that most cities have come to recognize that CEQA does not work well in urban areas. "The irony of ironies is the stopping of the bike plan."

Last week the TA released a Draft Environmental Impact Report for the San Francisco Bicycle Plan. With almost 900 days since the last new bike lane was constructed, the new bike plan will allow a roughly 75 percent increase to the current network..

San Francisco Bicycle Coalition Executive Director Leah Shahum expressed hope in the potential of the new EIR, slated to be approved this spring, after which the plan will be finalized and the city can go back to court to try to get the injunction lifted.

"The draft EIR is definitely a big step toward completion, but more needs to be done," she said. "The ridiculous exercise of slowing the bike plan down is a great case for why we need environmental review reform."

Editor’s Notes

0

› tredmond@sfbg.com

I was out of town the day Tom Ammiano appeared at his final meeting as a San Francisco supervisor. Too bad; I would have gone, no matter how busy I was, just to be a part of history.

I know that sounds silly. The Barack Obama inauguration will be part of history. The election of Harvey Milk was part of history. Ammiano’s last day? Hey, the guy’s moving on to Sacramento. Take a bow, everyone says thanks, and another local politician takes another political job. History?

Well, yeah, actually. Because when the history of progressive politics is written in this town (and I hope some other poor sucker takes on that job so I don’t have to) Tom Ammiano will go down as a central figure in the movement that turned San Francisco around.

It’s worth noting that the movie Milk, celebrating the life of the gay pioneer, opened around the same time Ammiano was clearing out his City Hall office. The connection goes deeper than the fact that they were both queer men fighting for basic human rights and dignity at a time when that was a huge uphill struggle.

Milk was part of an urban movement that came out of the 1960s and came of age in the 1970s that sought to wrest control of San Francisco from a cadre of military and big business leaders who had been running it since World War II. The agenda of the crew that we collectively refer to as "downtown" was turning the sleepy port city of the 1930s into the financial headquarters for Pacific Rim trade. They wanted San Francisco to be another Manhattan; they laid plans, they put the machinery in place — and they never asked the people who lived here whether that was the future we wanted.

Because all that downtown development meant higher rents, more evictions, gentrification, budget deficits, too many cars, the death of small businesses … and by the mid-1970s, the activists had figured out how to fight back. It started with electing supervisors by district so that big money didn’t always carry the day.

Milk was elected supervisor as part of the progressive push that put George Moscone in the Mayor’s Office. And if Moscone and Milk had lived, it’s possible that the tide could have turned right then. But the assassinations derailed district elections, turned the city back over to downtown, and sentenced the San Francisco left to more than 20 years of tough political dark ages.

Ammiano got elected in that era, when the developers called all the shots, when tenants and environmentalists and neighborhood people were lucky to get two or three votes on the Board of Supervisors. His pro-tenant and anti-development proposals never even reached the desks of mayors who would have vetoed them anyway.

But he didn’t give up, and in 1999, in the bleak days of the dot-com boom, he took on a long-shot campaign for mayor that, in one six-week period, reenergized the San Francisco left. With his help, district elections came back; and with his leadership, a decidedly progressive board took office in 2001. Living wage, sick pay, universal health care, bike plans, real estate transfer taxes, tenant protections … these are all products of that change.

Ammiano was an odd sort of leader, someone with a sense of humor who didn’t take himself anywhere near seriously enough. He would be the first to credit the movement, not the man — and he’d be right. But when we needed him, he was there.

SF slowly pedals forward

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By Steven T. Jones

City officials finally released the Draft Environmental Impact Report for the San Francisco Bicycle Plan, and while I’m still working my way through this 1,353-page tome, the pre-ordained conclusion seems painfully obvious: bicycling is good for the environment, and facilitating more bicycling is even better for the environment.

Why exactly did we need to spend two and a half years and over $1 million on this again? Oh yeah, because anti-bike zealot and occasional also-ran supervisorial candidate Rob Anderson sued the city for not adequately studying bicycling before proposing to complete the bicycle network and almost double the city’s current 45 miles in lanes, leading the courts to impose an injunction against any new bike projects until we can get this EIR certified.

“So far, it’s just a black hole for money, time, frustration… and cyclists are paying the price,” Leah Shahum, executive director of the San Francisco Bicycle Coalition, told me.

But the good news is that by next year at this time, the city’s burgeoning population of regular cyclists — which an SFBC-commissioned study placed at about 16 percent of the city’s population and growing rapidly — could start seeing new lanes, bike racks, and safety markings known as “sharrows,” assuming that Anderson and his ilk don’t stall this process further after the public hearings for the DEIR begin in January.

Meanwhile, activists and city officials have been quietly working on reforming how the city analyzes traffic impacts (known as LOS reform, which I wrote about here and which we’ll have another story on in our next issue), which could spare bicycle and pedestrians projects from this expensive, ridiculous EIR process. And I’ve heard from people inside both the Mayor’s Office and Board of Supervisors that they’re excited about moving it forward, so perhaps our creation of a more sustainable transportation system could soon move into high gear.

Now what with this power plant, Mayor?

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By Amanda Witherell

The Board of Supervisors voted unanimously against Mayor Gavin Newsom’s proposal to retrofit Mirant Potrero power plant at their Nov. 25 meeting.

Everyone’s been calling this political theatre, as the legislation was originally tabled, then dragged off the table at the last moment by Sup. Aaron Peskin. At the Board’s Nov. 18 meeting Peskin and Sup. Sean Elsbernd rattled sabers over whether or not tabling equaled death to the legislation and all it contains. The supervisors agreed with Peskin to take it off the table and vote it down properly, in a 7-4 vote (sans Elsbernd, Carmen Chu, Michela Alioto-Pier, and Chris Daly, who, in an aside to the press box, said he voted ‘no’ on everything related to the power plant. “If I keep voting ‘no’ there will be no power plant.”)

Anyway, the big, bad ‘no’ vote happened yesterday. But that doesn’t mean the issue is dead as the Mayor will still need board approval for a contract or any kind of deal with Mirant.

The other political undercurrent is the mayor’s introducing of the legislation in the first place. If you read the actual language [PDF], it would have given him, his staff, and the SFPUC sole authority to negotiate a retrofit with Mirant. If it had passed it would have essentially given the mayor pre-approval for what ever crackpot plan they come.

And, as Peskin and Maxwell uncovered in committee hearings on the issue, retrofitting Mirant is pretty crackpot. It’s something that’s never been done to any similar power plant and may actually be technologically impossible.

So. they moved the Mayor’s legislation forward in order to forcefully kill it. It was Alioto-Pier who called for tabling it. The board went along with the idea, thinking that tabling is effectively killing legislation. but, as Maxwell said yesterday at the hearing, “Originally on this item, I asked for a no vote. Sup. Alioto-Pier asked for a table, and it was tabled. This is just an assurance that no is no. This is not about the Mayor. I’m voting no on this issue, not the Mayor.”

The other day I spoke with Elsbernd about a different issue, but he mentioned the tabling thing and told me, “You can only pull it off the table the week after it’s been tabled.”

Mary Red, clerk for the Rules Committee, told me this is true, but also said tabled legislation can be brought back for up to 12 months — but if more than a week lapses after the tabling, then it has to go back to committee and all the way through the legislative process again.

This is really a minor legislative distinction and its very likely we’ll see a new proposal to retrofit Mirant at some point, but there is a certain kind of message that gets out there when a piece of controversial legislation gets voted down unanimously. For example, the SF Chronicle headline on the story reads, “S.F. supervisors kill mayor’s power plant plan.”

Sounds like a done deal, right?

Eastern Neighborhoods moving forward

4

by Amanda Witherell

The Board of Supervisors, at their Nov. 25 meeting, moved the Eastern Neighborhoods plan a little farther along in the legislative process. The political peregrinations that occurred at the previous meeting, during which the legislation was splintered into several pieces for political reasons, were resolved and the entire package is once again unified

As we reported in this week’s issue, Sup. Aaron Peskin had made some last minute amendments to add more accountability to parts of the plan. Sup. Sean Elsbernd didn’t like the move and severed them – effectively making them their own individual pieces of the legislation and vulnerable to line-item vetos from Mayor Gavin Newsom. Why would Newsom veto them? Why would speculating developers want to be required to start building within three years? Right.

Additionally, with Sup. Tom Ammiano outbound for Sacto and Sup. Chris Daly recused from voting because he owns property in the plan area, the board majority on this issue withers to six, with already suspicious intentions coming out of Sup. Gerardo Sandoval.

Anyway, yesterday the Board agreed to mend fences and move forward by rolling all the amendments back into the original legislation, which no longer allows Newsom to target specific parts of it. Most of the amendments still weren’t favored by Elsbernd, Chu, and Alioto-Pier, and Sandoval was the sole vote against a “use it or lose it” provision to reduce speculation (See above link, and our story that details his own precious amendment designed to benefit one developer in particular.)

The legislation will get its last read and vote at the Dec. 9 meeting.

New member of the SFPUC?

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by Amanda Witherell

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From left, Juliet Ellis with Manuel Pastor from UC Santa Cruz and Lori Reese-Brown with the city of Richmond

The San Francisco Public Utilities Commission has had two empty seats for months, but Mayor Gavin Newsom has finally made another appointment to the body that oversees the city’s water and power infrastructures. Juliet Ellis has been offered the “advocacy” seat on the five-member board.

For the past seven years she’s been executive director of Oakland-based Urban Habitat, a non-profit social and environmental justice organization that works on affordable housing, transportation, and land use planning issues throughout the Bay Area, though mostly in the East Bay. The organization has been around since 2004, and receives most of its funding from grants. [PDF of its most recent 990.] (A quick check of grants made by Pacific Gas & Electric since then showed none to Urban Habitat, unlike other purported community groups.)

Ellis told the Guardian she’s interested in joining the SFPUC because it will bring her focus back toward San Francisco, where she’s been living since 1995. She currently resides in Bernal Heights.

When asked how her experiences have prepared her to be a public utilities commissioner, she said, “I have a long track record of working with folks who are often the most left out of the process,” she said, and that would continue at the SFPUC. If appointed, she plans to keep her job at Urban Habitat.

“Our organization is really interested in justice components,” she said, and in particular, climate justice. “What are the implications for low income communities if sea levels rise? If air pollution increases?” And, she pointed out, what kinds of mitigations can protect more vulnerable communities when it comes taxation through congestion pricing or the continual siting of power plants in areas where people live, with their pollution and carbon offsets occurring elsewhere?

That relates intimately to long term water and power issues under discussion in San Francisco, like the 51 percent renewable energy projections for the Community Choice Aggregation plan and what to do about the Mirant Power Plant that’s still operating in the mostly black, mostly low-income, and, consequently, most cancerous part of town, as well as how to move the city toward more affordable energy bills.

Ellis didn’t have much to say on specific issues like Mirant or CCA, admitting that she hasn’t “gone deep enough, I haven’t learned all the information” about these heavily nuanced and political issues.

But, her thinking seemed to fall along the right lines of public accountability and control, citing “the more obvious benefits of having more control than when it’s privatized. It seems like CCA would provide more clean energy and control and that in and of itself makes it something that’s attractive.”

Ellis said she sees real opportunities to connect the SFPUC with the communities she’s been helping at Urban Habitat. “The main issues I’m excited about are job opportunities and thinking through how to position those,” she said, pointing out that the SFPUC is projecting 24,000 jobs through the Water System Improvement Plan. She would like to see some of those jobs go to people who are low-income and jobless now. She’s also interested in “out of the box thinking for mitigating impacts for communities like Bayview Hunters Point and Potrero on water and energy issues.” She said most people don’t understand the scale of work undertaken by the SFPUC and she’d like to build a better relationship between it and low income and communities of color.

She said the recommendation to join the SFPUC came from Fred Blackwell, a former Urban Habitat board member who was appointed by Newsom to head the Redevelopment Agency in 2007. So far she’s met with several members of the Board of Supervisors and her appointment will be heard by the Rules Committee during their Dec. 4 meeting.

“The Board without Ammiano is like the Vatican without the Pope.”

3

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“The man. The myth. The legend.”

That’s how Board President Aaron Peskin introduced Sup. Tom Ammiano, as he bid farewell to the longest serving member of the San Francisco Board of Supervisors at today’s Board meeting.

Headed to Sacramento to serve in the State Assembly, Ammiano has a 14-year record as SF supervisor that simply can’t be beat now that 8-year term limits have been introduced at the Board. And it will be difficult for other supes to touch his record in terms of legislation, service, attitude, wit and, of course, stark raving popularity.

Recalling Ammiano’s arrival at the Board a decade and a half ago, Peskin said, “Tom was a voice in the wilderness.”

“He managed to got living wage and domestic partnership legislation passed, long before either concept was popular. He succeeded in prevailing on district elections,” Peskin said. “He gave voice to the modern Board of Supervisors—for which I’ll never forgive you, Tom.”

“We love you, we miss you and I’ll come volunteer in your district office, now that I’m not going to have a job come December 8,” Peskin added.

Then it was the turn of Sup. Bevan Dufty, who has sat elbow to elbow with Ammiano for the past two years, to explain why he believes that he had “the best seat in the house.”

According to Dufty, this close proximity helped prevent Ammiano, who also happens to be a wickedly biting stand-up comic, from making jokes about him to the reporters that are corraled directly behind Ammiano in the press box.

Sup. Chris Daly praised Ammiano for ushering in district elections, bringing in a progressive Board and making a historic run for mayor in 1999.

“‘When you get termed out in Sacramento, we’ll be waiting for your return,” Daly promised.

Sup. Michela Alioto-Pier explained why she is going to miss Ammiano a lot.

“We never ever vote together on anything,” Alioto-Pier admitted, describing Ammiano as a “people come first” type.

“You always listen to me, and you’ve given me some of the best advice I’ve gotten since I got here,” Alioto-Pier said, further recalling how Ammiano once screamed at someone, something about, “When you walk a mile in my pumps,” an incident that inspired her to admire this famously flamboyant supervisor even more than ever.

Sup. Mirkarimi recalled how he was working as aide to Sup. Terence Hallinan, when Ammiano was first elected

“Tom really changed the entire climate of this instituion,” Mirkarimi said. “He swifty became the archangel, if you will, of the progressive movement. He is a rain maker, a king maker, a visionary.”

Acknowledging that it’ll be impossible to replace Ammiano’s wit, Mirkarimi suggested that he consider providing courses for would-be politicians.

Sup. Jake McGoldrick said “ Tom Ammiano has changed the world.”

Sup. Carmen Chu found it fitting that Ammiano is going to the State Assembly, since ” he’s such a statesman.”

The wittiest line of the afternoon belonged to Sup. Sean Elsbernd.

“The Board of Supervisors without Tom Ammiano is like the Vatican without the Pope,” Elsbernd said.

And the best warning belonged to Sup. Sophie Maxwell.

Recalling Ammiano’s grace and integrity, his ability to get testy and angry one minute, to lash out and then let matters drop the next, Maxwell said, “Look out Sacramento, they just don’t know what’s coming.”

Then it was Ammiano’s turn to say goodbye.

“It’s been a great time,” he said, recalling how district elections heralded a return to populism and admitting how he has only recently been getting in touch with how much Harvey Milk inspired the city, and how “terrifically special and strong” Milk was.

Calling San Francisco “a crazy indefinable city,” Ammiano said, “Elvis may have left the building, but never the City.” Then, turning to the press box, tears in his eyes, he said, “And thank you, press.”

And then he was gone in a blaze of bouquets and flowery accolades, leaving the running dogs of the press wondering just exactly how we are going to survive Board meetings, without those joking asides that Dufty rightly feared and that Ammiano frequently tossed out for us, like biscuits for naughty puppies that he somehow still manages to love, no matter how many times we chew on his favorite slippers.

After the bubble

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› amanda@sfbg.com

Speculators will be able to sit on tracts of San Francisco land until the market improves. Development impact fees will be set too low to cover the costs of neighborhood improvements like parks, streets, and transit. Affordable housing development is intimately tied to a busted market rate-housing boom.

This is the future of the eastern South of Market, Potrero Hill, Central Waterfront, and Mission District neighborhoods as laid out in the Eastern Neighborhoods Plan, a community rezoning effort that began in 2001 that now fills a binder thicker than a weightlifter’s bicep.

After more than 30 public hearings, the plan is approaching final approval by the Board of Supervisors. While some are lauding all the heavy lifting that’s been done to get it to this stage, there are still some noticeable shortcomings.

"The plan itself is despicably deficient in terms of affordable housing," housing activist Calvin Welch told the Guardian. That sentiment was echoed by spokespeople from the Mission Anti-Displacement Coalition and the South of Market Community Action Network, who may join together in a legal challenge of the plan’s Environmental Impact Report for failing to properly consider socioeconomic impacts.

"There will be environmental impacts in terms of displacement, increased amounts of traffic and cars, increased levels of noise," said April Veneracion, SOMCAN’s organization director. "The Board of Supervisors could have addressed these inadequacies in the EIR with amendments."

Some last minute amendments were added that would audit the financing of projects and reduce land speculation — but due to a tricky legislative maneuver, even these concessions could be axed by a veto from Mayor Gavin Newsom.

The bulk of the plan rezones vast tracts of industrial land on the eastern flank of the city for housing, mixed urban use (including retail and commercial sites), and a light industrial category called "production, distribution, and repair" (PDR) that protects many of the working-class jobs remaining in San Francisco.

Building height limits will increase in some areas and remain at 40 feet in others. Between 7,000 and 10,000 new units of housing are anticipated, with affordable housing rates between 15 to 25 percent, depending on the location and project.

However, the one method of financing affordable housing — known as inclusionary housing, which requires market-rate developers to include a certain percentage of affordable units — is entirely linked to a now-waning economic boom. "Events have rendered it meaningless," said Welch. "The Eastern Neighborhoods Plan is a plan predicated on a red-hot real estate market. Planning has no ability to shift with the market and the market, since mid-September, has changed radically."

The Controller’s Office recently readjusted the city’s revenue projections, suggesting a $90 to $125 million budget shortfall in the current fiscal year, with 40 to 49 percent of that directly connected to flagging real estate transactions.

Yet housing in the Eastern Neighborhoods Plan remains primarily composed of market-rate units, fetching upward of $700,000 apiece, with "middle-income" units discounted to half that, and below-market-rate apartments still costing over $200,000 each. Development impact fees are set for $10 per square foot of construction — not enough to cover the proposed improvements that would make these industrial areas pleasant and safe for everyday residential living and working.

"In order to support the population that’s expected to move in, you need transit improvements, park improvements, street improvements," said Tony Kelly of the Potrero Boosters, a neighborhood group. "Less than half [of these] have been funded by the project."

He characterized the approved parts of the plan as "pretty weak." "They’re rezoning 500 acres of industrial land for housing — predominantly market-rate — right at a time when no one’s building market-rate housing," Kelly said. He also said the plan lacked many creative financing ideas. "When the area plans were presented to our neighborhood back in 2006, the Planning Department outlined all the things a neighborhood needs. There was a chart with 18 different ways to pay for it. How many are now in the plan? One."

Ways to ensure that developer fees are used well and land doesn’t sit fallow were introduced at the last minute. Amendments to the plan, made by Sup. Aaron Peskin, require audits of the neighborhood improvement fees and forcing developers to actually build rather than speculate — but they received a potentially fatal last-minute blow.

The Board’s first vote on the plan occurred during the Nov. 18 meeting and the bulk of the plan received unanimous support (minus Sup. Chris Daly, who is recused from voting because he owns property in the plan area).

But late in the game, a standoff arose between Peskin and Sup. Sean Elsbernd, who opposed blindly rubberstamping the last-minute amendments offered by Peskin during the previous night’s Land Use and Economic Development Committee hearing.

"We saw the actual language of this if you looked in your e-mail in the last two hours," Elsbernd said during the heat of the Board hearing. "I’d like a week to read the changes made by you last night."

The Board voted to continue the matter for a week, but then, at the end of that day’s business, Peskin rescinded the vote and forced the issue. As promised, Elsbernd severed the four Peskin amendments — a legislative tactic that allows one supervisor to slice out parts of legislation and place them into individual files for separate votes.

Peskin countered by severing another amendment, added by Sup. Gerardo Sandoval, which would have allowed special height increases for two lots on Mission Street, where the New Mission Theatre and the Giant Value store currently sit. Gus Murad, who owns the properties as well as the adjacent restaurant Medjool, has been lobbying to convert the properties to commercial and residential space.

The supervisors shot down the "spot zoning" amendment that would let future buildings on the two sites to be built higher than what’s currently allowed on Mission Street. MAC spokesperson Nick Pagoulatos later applauded the move: "It would have been a ridiculous exception to make and one that clearly favored one developer."

Despite Elsbernd’s move to sever the amendments, all four passed, but didn’t receive enough votes to block a veto from Newsom. Supervisors Carmen Chu and Michela Alioto-Pier voted with Elsbernd.

The mayor’s ability to line-item veto some key protections sought by neighborhood activists was at the heart of the move. "That’s absolutely right," Elsbernd told the Guardian, who added that although he hadn’t spoken with Newsom and didn’t know his intentions, "These are issues that absolutely concern me."

The amendments add "metering" and "use it or lose it" provisions to the plan. Metering is essentially an audit performed by the board every five years to ensure that collected developer impact fees are used properly. Peskin said that while they couldn’t meet all the requests of neighborhood groups and housing rights activists, "this was something that we could do that made good public policy sense."

Elsbernd told the Guardian he didn’t object to the concept of metering but would like oversight by the Controller’s Office. "Metering gives the Board of Supervisors full power and takes the executive out of the mix," he said of the plan as it stands now, adding that it should be viewed as a long-term protection. "This is not about Mayor Gavin Newsom. It’s about Mayor Mirkarimi or Mayor Peskin."

The "use it or lose it" requirements are designed to reduce speculation by mandating that a developer with a project that has received a green light from the Planning Department must procure a building permit within three years, after which they have one year to break ground. Currently, there’s no limit to the amount of time a developer can sit on a property, which becomes more valuable after receiving city approval.

Elsbernd said, "Three years is just not fair," but again, he said he thought there was a middle ground and would like to see project developers given opportunities to make cases for extensions. However, if the developer has one of those grandfathered projects that doesn’t have to meet the new, stricter inclusionary housing regulations or pay public benefits charges, they should "have to pay full fare, full affordability, full fees," said Elsbernd.

A second vote on the plan and its amendments is scheduled for the Nov. 25 Board meeting, after Guardian press deadline, but Elsbernd expressed optimism about a compromise as part of last-minute dealmaking. "I would say there’s a possibility, as colleagues realize the potential mayoral veto."

Still, Welch pointed out that resistance to a "use it or lose it" protection is proof that San Francisco’s real estate market is in no way immune to the economic crisis afflicting the rest of the country. "The assumption built into the Eastern Neighborhoods Plan was this robust growing market for condo development and I think the bubble has burst," said Welch. "If that isn’t the case, then why would developers care about a requirement that says you have to build in three years? The Mayor’s Office told me the phones were melting after Monday night’s amendments passed."

But Welch said one of the great ironies of a market-rate housing crash is that it makes nonprofit housing development even more competitive. "That’s why we pushed so hard for ‘use it or lose it.’ It forces developers to say to the city ‘we’ll do it,’ or ‘would you like to buy the site?’<0x2009>" He said the city should be poised to buy those sites in order to build affordable housing and suggested the city lobby Barack Obama’s administration for the funds to do it as part of the large infrastructure improvements planned by the president-elect.

"I think the way housing is financed is going to be totally transformed and the federal government is going to play a bigger role," said Welch. *

Editor’s Notes

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› tredmond@sfbg.com

The Board of Supervisors passed the Eastern Neighborhoods Plan last week, in what seemed to be an awful rush. If it had been my call, I’d have left the transformative rezoning to the next board, which will have to deal with the impacts of it. But that wasn’t to be. The meeting was marked by Board President Aaron Peskin pushing a series of crucial amendments that Sup. Sean Elsbernd wanted to delay — and that Mayor Gavin Newsom may veto. That will force an override vote, and it will be close.

So one of the most important land use decisions in the history of San Francisco is going to be coming down during the holiday season, during the last few weeks that the outgoing board is in place, and possibly after Sup. Tom Ammiano — a solid progressive vote — has left for Sacramento.

This is not good.

The plan itself is a bit out of date — it was designed for a time when developers were champing at the bit to build market-rate housing in southeastern San Francisco. And while housing demand in this city is still strong, the market has dropped a bit, and the notion that fees on high-end condos will be paying for affordable housing and infrastructure is a lot more shaky these days.

I was never that thrilled with the rezoning anyway — it allows way too much expensive housing, nowhere near enough affordable housing, and the fees that developers will pay are utterly inadequate to fund the level of transportation, parks, schools, water and sewer pipes, and other facilities the area needs.

But at least the amendments add some sanity to the plan. One of Peskin’s proposals would mandate that developers who get a conditional use permit for their projects actually start building within three years — or lose their right to special zoning. That not only makes sense, it’s an anti-speculation measure — you can’t just buy up land, get special permission for additional height and density, and then sit on it until you can flip the property for more cash.

Of course, the Mayor’s Office is getting flooded with calls from developers who think this is just an outrage. The builders are also unhappy with another amendment, which requires the city to monitor the payment of building fees to make sure they’re coming in on time and going to the right places.

So if the mayor holds true to form, he’s going to veto those parts of the plan, and right now, progressives don’t have eight votes to override him. If that’s how it goes down, then the new board needs to take up the issue again in January. And while the new supes are at it, maybe they can try to raise the development fees.

The good news is that the lower the housing market goes, the more competitive nonprofit developers can be. And if the Obama administration comes through with some federal affordable housing money, the community-based organizations could be the ones driving the new wave of construction.

It sucks that Prop. B didn’t pass, because this is a rare opportunity for the public sector and the nonprofits to grab building sites. The supervisors can still allocate money for affordable housing in the next budget. And if there’s federal money to match it, Newsom, who refused to spend the last allocation, should be hammered by every part of the city if he screws up this sort of chance.

Fueling change

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EDITORIAL As a lame duck Board of Supervisors winds down, and the economic crisis and bloody budget cuts absorb most of the political focus at City Hall, there’s a major environmental issue creeping toward a January deadline — and city officials need to present a united front.

At issue is the Mirant power plant in Potrero Hill, an aging fossil fuel dinosaur that has been belching pollution into the southeastern part of the city for years. It’s been hard to shut down — the California Independent System Operator (Cal-ISO), the regulatory agency that controls the electric grid, wants some sort of generating facility inside the city lines. Sup. Aaron Peskin, backed originally by Mayor Gavin Newsom, sought to replace the Mirant plant with city-owned combustion turbines — so-called peakers — that would run only when needed. But Pacific Gas and Electric Co., fearing city ownership of power production, fought that proposal, and some environmentalists, arguing that the city should build no new fossil fuel plants at all, also opposed the plan.

On May 5, seven PG&E lobbyists descended on the Mayor’s Office and gave Newsom his marching orders: drop the peakers proposal or we’ll spend whatever is necessary to kill it. Newsom suddenly decided he didn’t like the peakers after all, and started pushing a PG&E-backed alternative: the Mirant plant, which runs on diesel and natural gas, could be converted to run entirely on natural gas, thereby reducing emissions.

The emissions numbers are pretty complicated. If the city ran the natural-gas-fired peakers for only a limited amount of time, they would emit less pollution than the Mirant plant. Obviously neither option is pollution-free; neither is sustainable; and neither is perfect.

Still, the worst of all possible alternatives would be allowing Mirant to continue to operate a private plant. At least the peakers would be city-owned and city-run. The city would have some control over how often they were fired up and could shut them down when more renewable technology becomes available. The Mirant plant — even after a retrofit — would continue burning fossil fuels; the private company would continue to profit; and the city would have no control at all.

Besides, it’s not clear that the plant even can be retrofitted for natural gas. The project that Newsom, PG&E, and Mirant are proposing has never been done before. Mirant may not be able to get the financing; the technology may not exist.

Which means that it’s entirely possible nothing will change. If all goes the way PG&E wants, the city will abandons the peakers, the dirty Mirant plant will continue to run without a retrofit, and the people of southeast San Francisco will continue to suffer.

But there’s a problem facing Mirant, and it could potentially change the whole picture. The plant sucks 200 million gallons of water out of the bay every day for cooling — and its Regional Water Quality Control Board permit expires at the end of this year. The board has said it’s not inclined to renew the permit, since the plant can’t meet modern water-quality standards. So as of January, Mirant could be forced to shut the plant anyway — unless the company, and Cal-ISO, find a way to force the water board to back down.

That’s where the city comes in. The mayor, the supervisors, and City Attorney Dennis Herrera should publicly inform both the water board and Cal- ISO that San Francisco does not want the permit renewed for the current Mirant plant. Even if Newsom thinks the facility can be upgraded, it’s hard to argue that the existing plant is anything but a disaster. And unless and until there’s a credible, peer-reviewed retrofit plan, Newsom has no business siding with Mirant and PG&E.

The water board could force the issue. If the Mirant plant has to close, the city either needs to come back with a peaker plan that environmentalists can accept or find a way to meet Cal-ISO’s mandates without new fossil fuel generation. That sounds like an excellent outcome to us. *

Clean energy

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EDITORIAL Pacific Gas and Electric Co., its political hacks, and to a great extent, the San Francisco Chronicle all seem to take the same line on the defeat of Proposition H: It’s done. The people have spoken. Public power has been on the ballot 11 times, and it’s never passed.

And — as is always the case with a losing campaign — supporters of the Clean Energy Act are discussing what went wrong, looking at how the measure was written, the details, the language, the scope to see if there was something that could have been done differently.

But that ignores the central reality of the campaign for Prop. H: PG&E spent nearly $10.3 million to kill it. And it’s very, very hard to fight that kind of money.

The truth is, there was nothing wrong with the language or scope of Prop. H. If it had passed, it would have given the city the tools to create a sustainable energy portfolio that would be the envy of the nation. In fact, there is little doubt that the Clean Energy Act was well ahead in the polls when it was first placed on the ballot.

But as we’ve seen with so many races over time (and as we saw with Proposition 8 this fall) when a ballot measure it becomes a citywide or statewide race, big money has a serious impact. And we’ve never seen this kind of money in a San Francisco initiative campaign. In the end, PG&E spent about $53 per vote. That’s an outrageous sum, dwarfing any political spending that’s ever happened in San Francisco

Yet despite the barrage, the Clean Energy Act got tremendous grassroots and political support. Clean Energy has a strong constituency in San Francisco, including from the Sierra Club, and the power of this campaign won’t go away. Despite the efforts of downtown and PG&E, progressives still control the Board of Supervisors. Three of the city’s four representatives in Sacramento — Senator-elect Mark Leno, Assembly Member Fiona Ma and Assembly Member-elect Tom Ammiano — supported the legislation and will continue to back efforts to replace PG&E’s dirty power with locally- owned renewable energy. PG&E has money but it’s running out of friends in this town — and its illegal monopoly is the very definition of unsustainable.

There’s now an organized constituency for clean energy and public power, seasoned by this campaign and ready to continue the battle. That’s what needs to happen. There are numerous fronts: the city needs to be moving forward quickly with community choice aggregation, which offers the potential for cheaper, cleaner power. (The downside to CCA is that it doesn’t allow the city to make money; PG&E would still own the transmission lines, and thus make all the profits in the system.) Potentially, however, a CCA agency could begin moving toward creating local generation facilities and eventually toward building a local transmission system. A CCA also could directly access the city’s own Hetch Hetchy power and begin delivering it to local customers (once San Francisco can get out of the contracts requiring it to send too much of that power out of town).

The supervisors need a strong Local Agency Formation Commission to keep monitoring and pushing this, and the new board president needs to be sure LAFCO members are committed to and energized about renewable energy and public power.

Several supervisors — Sean Elsbernd, for example — told us they saw no reason for Prop. H to be on the ballot since so much of what it called for could be done by the board. Fine: Sup. Ross Mirkarimi, one of the authors of Prop. H, should immediately introduce legislation to do everything in Prop. H that doesn’t require a city charter change. Let’s see if Elsbernd and the mayor are really just PG&E call-up votes or if they’re willing to support an energy options feasibility study and strong renewable-energy mandates for the city.

And there are still legal options that the board should look at. City Attorney Dennis Herrera never wanted to go to court to enforce the Raker Act, the federal law requiring San Francisco to operate a public power system, but that’s an area the board can push. David Campos, the apparent supervisor-elect in District 9, is a lawyer who has worked in the city attorney’s office and sued PG&E, so this is an area where he can show leadership.

The bottom line is that this battle isn’t over.

There were other disappointments on what was generally a progressive ballot. Proposition V — the phony measure calling on the school board to reinstate JROTC — passed, narrowly. It was mostly a wedge issue to hurt progressive candidates for supervisor, and has been a horribly divisive issue in the schools. The school board, which cut off JROTC last year, is now pushing for an excellent public service alternative and doesn’t need to go back and reexamine the issue. JROTC is a terrible idea for San Francisco, and the newly elected board members shouldn’t even bring this up again.

Of course we were deeply unhappy about the passage of Prop. 8. The repeal of same-sex marriage was such a blow to San Francisco that it dampened a lot of the enthusiasm over the Obama victory. But that one’s not over, either; it has just begun. Statistics show that voters under 30 overwhelmingly support same-sex marriage — and if the campaign is run differently, and the message is positive, it’s likely that Prop. 8 can be overturned. Marriage equality advocates should think seriously about preparing now for a major campaign in November 2010 to restore equal rights for same-sex couples in California.

Progressive Victory Party in SF

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daly.jpg
Sup. Chris Daly displays finger puppets that look like supervisors-elect John Avalos, Eric Mar, and David Chiu, mocking efforts during the campaign to assert that they would be nothing but his puppets.

By Steven T. Jones

San Francisco progressives celebrated the movement’s election night victories and set their sights on the mayor’s office during a party last night at The Independent sponsored by the San Francisco Democratic Party, San Francisco Labor Council, and the SF Tenants Union.
“The progressives in San Francisco still need the real prize and that’s Room 200,” said Aaron Peskin, who will continue in his role as chair of the local Democratic Party after leaving the Board of Supervisors at the end of the year.
He wasn’t the only one looking forward. John Avalos, who won the Dist. 11 seat on the Board of Supervisor, praised the unified movement’s ability to withstand withering attacks by downtown-funded groups and said, “Together, we can take the mayor’s race in 2011.”

Taxi merger

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› amanda@sfbg.com

A plan to merge the Taxi Commission with the Municipal Transportation Agency will be heard by the Board of Supervisors on Nov. 25. Most city officials and taxi industry bigwigs support the change, but some drivers fear it could signal the end of the semi-autonomous medallion system that has been in place for 30 years.

The merger legislation by Sup. Aaron Peskin is brief, simply transferring duties from the Taxi Commission to the MTA beginning March 1, 2009. But Peskin also helped write another key piece of legislation — last year’s sweeping MTA reform measure Proposition A — that contains a provision allowing the MTA to wipe out all prior taxi regulations.

Skeptics fear that the real target of the merger is Prop. K, the 1978 law that created the current driver permitting system, which requires taxi medallions that are owned by the city to be in every car. With the MTA in control, the door could be open to privatizing taxi medallions. These permits are currently leased by the city for a fee — $658 a year for most cabs — to longtime drivers, but a scheme to sell or transfer them could mean huge profits for the select group of drivers who now hold medallions, with a potentially high transfer fee kicked back to the city.

Reguutf8g San Francisco’s taxi industry involves ensuring cabs are being properly operated, with medallions held by legitimate drivers, and investigating various complaints. But the Taxi Commission barely has enough money to meet its mandate. Proponents of the merger say the MTA can bring more resources and professional attention to the industry. Mayor Gavin Newsom, who as a supervisor in 1998 pushed for formation of the Taxi Commission, has long supported the merger as a way to have all transportation housed in one agency.

“The benefit of merging is the MTA already regulates all surface transportation,” said Jordanna Thigpen, acting director of the Taxi Commission, who was appointed by Newsom after the Taxi Commission ousted Heidi Machen in 2006. “Most cities in the country do incorporate taxis into the common transportation agency.”

Currently, cab companies, medallion holders, and rank and file drivers essentially function as a feudal system, with the serfs driving San Franciscans around in vehicles usually owned by the lording cab companies and permitted by older drivers who hold the coveted medallions. There are only 1,500 of these permits, which are literally tin medallions that correspond to the numbers printed on the sides of cabs. They are owned and regulated by the city, and leased for life to drivers who wait years to move up the list.

Medallion holders make about $20,000 to $50,000 per year leasing their medallions to cab companies, which then charge drivers daily “gate fees” that are set by the city. Drivers pay an average of $96.50 per day to use a cab, but are allowed to pocket all their fares. Drivers usually clear about $150 a day, but that’s before paying gas, tolls, and tickets, and before even sometimes allegedly slipping bribes to dispatchers to get the best assignments. Drivers have no health insurance and are essentially treated as independent contractors.

Drivers have criticized the newly formed Taxi Advisory Group, which has made recommendations to the MTA and is likely to be expanded after the merger into a 15-member council, which would have only three drivers, but seven medallion holders and cab company representatives. Five members of the public would also be seated and their unanimous support would be required for a driver-led initiative or idea to trump the medallion and cab company bloc.

“We want a much greater and fairer representation on this Taxi Advisory Council,” said driver and United Taxicab Workers chair Bud Hazelkorn. “Without that, all the issues that we bring will not be heard.” Those issues include providing health care for drivers and creating a centralized dispatch system so fares are allocated more equitably. He pointed out that drivers are the only people in the system making all their income directly from fares. Everyone else in the industry gets slices from other pies.

And the existing provisions outlined by Prop. K may soon be a thing of the past.

Prop. A included language that allowed for the Taxi Commission merger and stated that once the MTA was in control, “Agency regulations shall thereafter supersede all previously adopted ordinances governing motor vehicles for hire that conflict with or duplicate such regulations.”

During the 2007 election season, this was interpreted by the UTW and Judge Quentin Kopp, a former supervisor who authored Prop. K, as possibly undermining the current medallion system. “The taxicabs CEOs have tried EIGHT times to undo Prop. K, failing each time as voters upheld this good government measure,” Kopp wrote in a paid ballot argument at the time. “Now encouraged by City Hall, Prop. A slips in a deceptive clause undoing 30 years of voter policy.”

Back in 2007, when seeking the Guardian‘s endorsement for Prop. A, Peskin told us, “I have met with the mayor. The mayor has no desire, as do I, to undermine Prop. K, and what we would do if we ever were to transfer the Taxi Commission to MTA, we would transfer upon the condition that they adhere to and embrace by regulation all of the previously voter approved ordinances, such as Prop. K. So I think we have it handled.”

Peskin said he reaffirmed that commitment in a letter, cosigned by Newsom, but neither office could locate a copy of that letter as of Guardian press time.

But at a Nov. 17 Government Audit and Oversight Committee meeting, Peskin asked MTA executive director Nathaniel Ford if it was his understanding that this merger was not to undermine Prop. K. “That is my understanding,” said Ford. “I think it is important to all stakeholders.”

Yet the interpretation is still correct. “The MTA will now have the authority to enact provisions that supersede Prop. K,” City Attorney’s Office spokesperson Matt Dorsey told the Guardian.

This past summer, the Taxi Commission established a Charter Reform Workgroup with a primary goal of reviewing Prop. K. The group is expected to meet for about six months with any recommendations subject to a citywide vote.

Although the workgroup has yet to release any specific statements regarding Prop. K, chairman Malcolm Heinecke believes it’s already making strides simply by opening up public discourse among citizens, companies, medallion holders, and drivers.

“One of the problems with the taxi industry and discussions of reform is that they are very insular,” said Heinecke, who is also an MTA board member. “I believe we have a balanced group of voices [in the group].”

Heinecke said he thinks varied stakeholders are essential because of broad dissatisfaction with Prop. K. “You hear everyone — both inside and outside the industry — bemoaning some aspect of Prop. K. It’s a system we’ve had in place for 30 years; rather than just say it’s bad and not do anything, [the goal of the workgroup] is to look at where we are and revise.”

While it may be true that no one is satisfied, that hardly means members of the factional workgroup agree on how exactly Prop. K should be changed. For some, the problem begins with issues of representation. Not everyone agrees with Heinecke that this is a “balanced group.” Of 12 members, there are just three drivers and three members of the public, with the rest representatives from the upper echelons of the industry.

Driver and UTW member Thomas George Williams pointed out that “companies and medallion holders often have the same interests — most companies are owned by medallion holders.”

Furthermore, Mark Gruberg, a UTW member, told us, “Everyone would say some things can and possibly should be done to improve provisions of Prop. K. But it’s one thing to work around the edges to reform a law and another thing to throw it out the window.”

He pointed out that one proposal before the workgroup would allow medallions to be sold for profit, something he said “would be a complete reversal of Prop. K.” If other cities are an example, medallions could fetch as much as $500,000 apiece, enough for the holder to retire handsomely. “People that have them would clean up at the expense of the next generation of cab drivers,” Gruberg said. “It would be a completely indefensible windfall.”

“This is public property, these medallions,” Hazelkorn said. “They could be misused as a pension, but that’s not a pension that applies to everyone.”

When questioned, Heinecke was vague about concrete changes the workgroup might instigate. “This is a delicate position for me because the whole purpose of the task force is to hear the views of all the stakeholders,” he said.

Taxi drivers, the serfs of the industry, do not have high hopes about the merger. “If the merger happens, the MTA [officials] will be able to do whatever they please,” Williams said. “Everyone knows MTA is always in need of money … they don’t care about drivers or improving industry, only their budget.”

Williams worries that, under the MTA, the commission will lease medallions to companies instead of individual drivers, which would “totally ruin the concept of Prop. K.” Gruberg agreed. He pointed out that some proposals mention levying a tax on the medallion transfers, a potential revenue source the MTA could be eyeing. “It’s a whole new ball game with MTA and if they’re so desperate for cash and they see the taxi industry as a cash cow, they might go for any scheme.”

MTA spokesperson Judson True told us, “We have no intention of looking to taxi revenue to supplement existing Muni operations.”

Judge Kopp said, “By itself that does not disturb Prop. K, but if that’s a fig leaf for some recommendation from this ersatz Charter Reform Workgroup, then it becomes ominous.” He said dressing the changes in a group with a pithy name like Charter Reform “is not reform, it’s subterfuge.”

And, he added, Prop. K doesn’t need reform as much as it needs enforcement. “They’ve been at this for 30 years. Their revisions are always to start to restore the pre-1978 conditions and enable them to treat these permits as personal possessions for sale.”

Peskin, with the approval of other members of the committee, calendared the full board hearing on the merger for a date after the MTA announces the result, expected sometime this week, of its national search for a director of taxi and accessible services. Solid leadership has been elusive: two years ago the Taxi Commission fired executive director Heidi Machen, reportedly for being too tough on cab companies. Machen was replaced by another Newsom appointee, Jordanna Thigpen, who said she has applied to stay on the job but doesn’t know if she’ll be selected.

When asked if the merger would unnecessarily stretch the MTA’s resources, Thigpen said, “On the one hand you could look at it that way. On the other hand, we’re so chronically understaffed. Trying to add staff is so complicated because we’re funded by the taxi industry.”

The taxi industry brings about $1.6 million in revenue to the city, mostly from fees paid by 1,500 medallion holders and about 7,000 drivers. However, “Fees do not currently meet the city’s cost recovery needs,” according to a Taxi Commission merger report. “Both Taxi Commission and Taxi Detail are understaffed and additional enforcement personnel are needed.”

MTA’s True said, “We expect some cost savings or at least increased efficiencies,” when asked how the merger will affect the MTA’s budget. “When it comes to changing Prop. K, raising fees, or adjusting how medallions are allocated,” True said, “I can’t say that it’s not on the table … In the last several months the focus has been on procedural issues. I think that policy questions will largely come post-merger.”