Board of Supervisors

The commissioner’s conflicts

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› gwschulz@sfbg.com

Before the June 5 special meeting of the San Francisco Planning Commission got underway, Michael Antonini had an announcement.

Dressed in a charcoal suit and red-checked tie, with his white hair combed back over his skull, the longtime commissioner disclosed that he was a part owner of a condominium in the eastern neighborhoods, where a years-long rezoning effort is nearly complete. That means Antonini is among the people who could benefit from increased land values due to zoning upgrades.

As a result, Antonini begrudgingly declared that he would have to recuse himself from hearings involving the eastern neighborhoods until the potential conflict is dealt with.

"Hopefully this can be resolved in the next few weeks and I’ll be able to participate at later hearings," Antonini said at the meeting.

But it was a bit late to be complying with the state’s conflict-of-interest laws: Antonini had already actively taken part in meetings in which the plan was discussed. And Antonini also neglected to mention that after he and his son purchased the condo, he voted on two other projects that appear to be within steps of it.

Public records show that Antonini bought the $515,000 condo at 200 Townsend Street in 2003 with his real estate agent son, John. Commissioner Antonini and his wife own a 25 percent stake in the property through a family trust the couple created in 1997. His son holds the majority interest.

Antonini worked hard to play down his stake in the condo at the June 5 meeting. It’s not an investment property, he made clear to the commissioners. There’s no rent generated from it. He’s a mere minority holder in a family trust that controls the condo, and it was purchased as a residence for his son and his wife.

"Because I did not believe our fractional interest in John’s condo represented a conflict, I did not consider reclusing [sic] myself from projects near the condo," Antonini wrote to the Guardian.

But the laws on this are pretty clear. The state’s Political Reform Act of 1974 prohibits public officials from participating in decisions that will have a "foreseeable material financial effect on one or more of his/her economic interests." It also states that any "direct or indirect interest" worth more than $2,000 poses a potential conflict, for which a 25 percent stake in a half-million dollar condo would seem to qualify.

RECUSE ME


Other public officials in similar situations have recused themselves long before the issue became a potential political liability.

Sup. Bevan Dufty bought into a three-unit residential property on Waller Street with two co-tenants in December 2006. He immediately sought advice from the city attorney, who told him he no longer could vote on the Market-Octavia Plan, a series of land-use changes in Hayes Valley, Duboce Triangle, and elsewhere that was similar in scope to the current rezoning efforts in the eastern neighborhoods. The supervisor also couldn’t vote on a major Laguna Street redevelopment project or on legislation making it easier for seniors to convert rental units to condos.

Antonini told us that "only in the last month" did the city attorney warn some officials involved with plans for the eastern neighborhoods that if they held property in the area, there could be a conflict of interest.

"We’ve been working on [the eastern neighborhoods] for the whole six years I’ve been on the planning commission," he said at the meeting. "It’s a little troubling that this issue of conflict is raised now rather than at the very beginning."

The law does make an exception when the economic interests of the "public generally" could also be enhanced by a government decision such as those that have an impact on a large section of the city like the eastern neighborhoods. But the city attorney’s office concluded for now that the condo indeed may pose a conflict. And in the meantime, Antonini told us that the Fair Political Practices Commission in Sacramento, which helps enforce the state’s Political Reform Act, is being consulted to determine "whether our fractional interest in the condo truly represents a conflict of interest."

The eastern neighborhoods planning process isn’t the only legislation that created a potential conflict for Antonini. The commissioner voted in January 2007 to approve construction of 26 new single-room occupancy units at 25 Lusk Alley, not far from his property at 200 Townsend. The project’s sponsor, Michael Yarne, is a land-use attorney who today works for the mayor’s economic development office. The project was approved, according to meeting minutes.

The project itself relied on a contentious legal loophole in which developers claim their units are "single-room occupancy," a necessity because the area permits residential efficiency hotels where the poor and working-class used to live. Allowing such SRO hotels in areas zoned for light industrial uses enabled the city to preserve some forms of affordable housing. But builders can turn around and lease the opulently large units such as the ones at 25 Lusk, which bear little resemblance to genuine SRO rooms, to well-heeled clients.

"They are allowed where normal residential units are not allowed, because historically SROs were always extremely affordable housing," community organizer Calvin Welch said. "The whole notion of market-rate SROs is a new invention, and that’s why they’re controversial. They’re basically the new version of live-work lofts."

In November 2006, Antonini also voted to approve a liquor license for a new full-service restaurant and wine bar at 216 Townsend, even closer to his son’s condo.

TOO CLOSE FOR COMFORT


State ethics laws say that a public official has a conflict if his or her property comes within 500 feet of a project the official will be scrutinizing and voting on.

Conservatively measuring from the furthest corners of each property, Google Earth puts both the proposed restaurant and SRO within 500 feet.

Bob Stern, president of the Los Angeles–based Center for Governmental Studies and co-author of the state’s Political Reform Act, said a public official could face $5,000 in civil penalties for each conflict-of-interest violation. But it’s not common for the chronically under-resourced FPPC to go after local officials, he said.

Mayoral spokesperson Nathan Ballard wrote in an e-mail that "we take any allegations of conflicts of interest seriously" but added there is a disagreement over whether the "public generally" exception applied to the eastern neighborhoods and that the City Attorney’s Office was seeking additional input from the FPPC.

As for the two projects he voted on near the condo, Antonini apparently told the mayor’s office he had looked into whether 25 Lusk fell inside 500 feet. "Based on his understanding at the time," Ballard wrote, "they didn’t."

That’s a stretch, at best. The projects are in the same block. We walked them off and found that Antonini would have to be splitting hairs to argue that they are outside the boundary — and even in that case, it would be only by a few feet. The rusty red paint job, black trim, and stylish, outsize windows of 200 Townsend are easily viewable from the backside of 25 Lusk.

"If there is a legitimate argument that they did fall within the 500-foot radius, this should be clarified," Ballard stated. "However, given the relative insignificance of the two projects cited in your e-mail and Antonini’s long-standing reputation as an ethical and hard-working commissioner, we don’t have any reason to believe that he would have knowingly and/or willingly violated the state’s Fair Political Practices Act."

But the Lusk Street project was by no means insignificant. "They are highly regulated," Welch said of SROs. "You cannot convert them to tourist hotels without going through a very long and cumbersome process. They are valued for affordable housing so highly that the city regulates their conversion to tourist uses." So instead, the "corporate suites," as Welch calls them, masquerade as SROs. The project was approved in the end, but two commissioners — Christina Olague and Sugaya Hisashi — voted against it.

Antonini told us that he believes 25 Lusk is more than 500 feet away, and as for the restaurant, planning staff recommended approval.

The commissioner told us, "I was the one who brought public attention to the issue of my possible conflict. I believe it is a small issue when compared to my body of work on behalf of San Francisco over the last six years."

The June 5 meeting where Antonini made the disclosure about his son’s condo was part of a long and detailed process that will determine the fate of vast sections of Potrero Hill, SoMa, the Mission District, and Dogpatch. The official planning process for the targeted 2,200-acre area began back in 2001, and the commissioners could approve new zoning plans next month before sending the proposal to the Board of Supervisors.

For much of San Francisco’s history, the city sections poised for rezoning have been home to light industry and blue-collar jobs. But housing has encroached over the last 15 years, and the planning commission is prepared to allow between 8,000 and 10,000 new units over the next 20 years. That will almost certainly increase the value of land in the area.

Residential developers built thousands of pricey condos in the SoMa District during the 1990s, exploiting another divisive zoning loophole that created waves of animosity across the city and aided in a takeover of the Board of Supervisors by a progressive bloc of candidates.

Live/work lofts, as developers called them, were built in areas zoned for light industrial commercial purposes. Wealthy buyers would ostensibly operate businesses out of their homes or live in them as working artists as the zoning required, but few have complied with the letter or — having found ways to narrowly abide by it — the spirit of the law.

"The city turned its head," housing attorney Sue Hestor said. "We have 3,000 units that are supposed to be occupied by artists and probably 90 percent of them are not occupied by artists at all. It’s blatantly illegal."

Antonini has managed to maintain friendships with local moderate Democrats over the years despite being an elected member of San Francisco’s Republican Party County Central Committee. Willie Brown first appointed him to the powerful planning commission in 2002, and he’s been a reliable vote for developers and other large business interests. Mayor Gavin Newsom reappointed him in 2004 and earlier this year tried to engineer Antonini’s election as president of the commission.

Hustlers and peace treaties: This week’s cover

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“It’s something bout a block boy that push that line, ride for the peace treaty and hustle at the same time, looking out for my brah brahs cause life’s too short, especially when the suckas telling and got homies in court.”

-JT the Bigga Figga on the Fillmore neighborhood

For this week’s cover story on the Ella Hill Hutch Community Center, the Guardian did a few things we thought might strengthen the reporting for the piece. We read hundreds of pages of law-enforcement records filed by the city attorney in last year’s gang injunction cases. We also collected extraordinary historical details about Ella Hill Hutch herself, the first black woman elected to San Francisco’s Board of Supervisors.

During the time we worked on the story, journalist Alex Kotlowitz, who’s mostly been missing in action since publishing his ground-breaking 1991 book on public housing in Chicago, There Are No Children Here, happened to write an extensive story on gang intervention efforts for the New York Times Magazine, which is well worth the read.

In the meantime, a little about Ella Hill the supervisor. In 1980, she endured a grueling reelection campaign that drove her literally to the point of exhaustion. She was admitted to the hospital with pneumonia weeks after placing a surprising fourth in a citywide race. Three months later she uncharacteristically missed a Finance Committee meeting on Feb. 25, 1981, and police eventually found her dead of heart failure at her small Scott Street apartment.
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Budget Battle bumps up against Gay Marriage

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bridalmoneybag.jpg
Bridal Money bags are sexy, budget documents ain’t.

As LGBT couples were praising Mayor Gavin Newsom for making legally wedded bliss a reality in their lifetimes, a parallel community inside City Hall was criticizing the Mayor for making potentially fatal cuts to public health programs, many of which have served San Francisco’s LGBT community for decades.

Unfortunately, between all the gay marriage hoopla going on in the marble corridors of City Hall, and the burn out that non-profits are already feeling having suffered crippling mid-year cuts, there was an unprecedented feeling of doom and gloom during this year’s Beilensen Hearing inside the Board of Supervisors’s chambers.

The Beilensen Hearings, which the state requires when cuts are proposed to public health programs and services, have become an annual dance, which goes like this: first the Mayor proposes massive cuts, then the Board tries to restore funds, next competing rallies are held, and finally most of the programs are restored,

Only this year, there is little to no money to be found.

During his June 2 budget annoucement, Mayor Gavin Newsom pointed out that while the City is facing a record $338 million deficit, it is also is seeing healthy increases in tax revenues.

So, why such a massive imbalance this year? Newsom claims we are spending more than we are taking in, but that answer sidesteps the political reality of just why that is happening on such a greater scale, this year.

The answer to that question lies in two directions: Newsom’s approval, and the Board’s largely unflinching support (Sup. Chris Daly was the lone dissenting voice) for union contracts last summer, when the Mayor was up for reelection; and Newsom and the Board’s failure to introduce legislation last year to create new revenue streams to make up for the increasing slice of funds that those same union contracts, predictably, are swallowing up.

To their credit, Board President Aaron Peskin (who celebrated his birthday June 17, just as gay marriage mania was hitting City Hall big time) and Sup. Jake McGoldrick, who chairs the Board’s powerful Budget and Finance Committee, have now bitten the bullet and introduced legislation that seeks to increase property transfer taxes and close the pay roll tax partnership loophole.

But even if these measures are approved, (and that’s a big if, they won’t ease this year’s budget pains.

What could help, on a more immediate level, is the identification of significant savings within the Mayor’s proposed 2008-09 budget. And to that end Budget Committee chair McGoldrick has dug his claws deep into Newsom’s proposed budget document and drawn blood.

This blood letting began ast week, when McGoldrick led the charge against funding the Mayor’s proposed $3 million Community Justice Center. (The proposal got sent back to committee where it will likely fester, and the Mayor has responded by placing a measure on the November ballot that would allocate $1.8 Million in city funds and earmark an additional $984,000 in federal grant money to create the proposed center.)

And at yesterday’s Board meeting, McGoldrick told me that he has identified potential savings of $8-10 million from the San Francisco Police Department, including eliminating over staffing as well as defunding two out of the Mayor’s three proposed police academies.

“Any claims that they are understaffed are not true,” said McGoldrick, who says he came to this conclusion by factoring in 129 civilianized positions into SFPD staffing totals.

“And I’ve already told the Mayor and the Chief of Police that they are not going to get three police academies, and that the Mayor’s 311 Center is not getting 26 new positions,” McGoldrick continued. “We are going to have to figure out a more efficient way to run it. This is all about priorities. My priorities are the sick, the shut-ins, the elderly, children, the mentally ill and the victims of domestic violence.”

Meanwhile, Sup. Chris Daly extracted hollow laughs when he announced that he would not make the exact same speech as he did at last year’s Beilenson Hearing.

Daly was referring to his now infamous speech in which he referred to “allegations of cocaine use,”—allegations that were whispered around town, after it was revealed that Newsom had had an adulterous affair with the wife of his then campaign manager Alex Tourk, but that were never proven and thus would have been better left unmentioned in a public hearing that was seeking to illuminate Newsom’s wacky budget priorities..

But because Daly mentioned them, the media, which doesn’t like covering budget hearings, since there’s nothing sexy about covering hours of testimony in which people describe , over and over, the devastation that proposed cuts will have on their programs, happily refocused its lens on the alleged inappropriateness of Daly’s speech, thereby helping the Mayor get off the hook for proposing cuts to substance abuse treatment programs, in the same year he claimed to be undergoing alcohol abuse therapy.

Or maybe it was because that in this LGBT-friendly town, Newsom will always be remembered as the patron saint of gay marriage, and because of his sainthood voters will largely absolve him of all his other sins, including making decimating financial cuts to public health programs that have helped the LGBT community for decades.

Either way, this time around, Daly, (while complaining that the Beilenson hearing should happen in front of the Mayor), didn’t bother to imply that Newsom had somehow lost his moral compass.

Which was probably a wise l move, given that at that very moment the Mayor was being elevated to international renown for having pushed the gay rights envelope all the way to the wedding altar, at a time when the rest of the Democratic Party, fearing another four years of President Bush in 2004, was whimpering “too much, too soon, too fast.”

Instead, Daly commented that his district will likely look like “the Night of the Living Dead” once Newsom’s proposed budget cuts go into effect,

Daly also introduced the “Treatment on Demand Act,” which “requires that the City and County of San Francisco “maintain an adequate level of free and low cost medical substance abuse services and residential treatment slots commensurate with demand.”

Daly’s act measures demand, “by the total number of filled medical substance abuse slots plus the total number of individuals seeking such slots as well as the total number of filled residential treatment slots plus the number of individuals seeking such slots.”

But for now, it’s budget hearing season, and advocates like Bill Hirsch of the AIDS Legal Referral Panel are telling the Board how they believe the Mayor’s proposed cuts amount to “a dismantling of a system of care that has taken over 25 years to put together.”

“We’re terribly disappointed with the mayor’s Budget,” Hirsch said, against a soundtrack of whoops of joy as gay couples celebrated their weddings outside the Board’s chambers.
“Hopefully, the Board can help prevent the worst of this.”

Others, like Connie Ford of Office Employees Local 3, which represents 800 non-profit workers, called the 22 percent cuts that the Department of Public Health is facing, “the most chaotic, unstrategic and ill-advised cuts” she’d ever seen.
“We’ll hurt people and the cuts will actually cost us more money” Ford said. “There is no rhyme or reason to these cuts.”

FelicianHouston, program director of a Woman’s Place, said that the proposed cuts are a “reflection of the dismantling of the continuum of care.”
“Just don’t do it.” Houston said.

And the list of speakers went on and on, including representatives for suicide prevention, crystal meth intervention, and mobile assistance patrol programs.

“Studies show that for every one dollar spent on substance abuse treatment seven dollars are saved at the law enforcement level” said several speakers. It’s a comment that brings us full circle to the insanity of proposing to start new programs, like the Community Justice Center, while proposing to slash the programs that would serve that center.

Stay tuned for move coverage of this and other budget insanities, between now and the end of July, when the annual budgetary approval cycle is scheduled to be resolved.

Another shelter down

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› amanda@sfbg.com

Inside the front door of the Marian Residence for Women, a small handmade sign by a former resident advises newcomers, "Don’t compare this place to any others."

But I’ve stayed in the city-funded homeless shelters, and after a night at Marian, it’s hard not to rave about the differences. I’m given an actual bed to sleep on, with freshly laundered sheets, blankets, and a pillow. The bathrooms and showers are clean, and I’m offered every toiletry I could possibly need — as well as pajamas. Dinner is a wholesome meal of turkey, potatoes, and steamed greens — not the mystery meat on Wonder bread I received at the city’s MSC South shelter.

And unlike the tension I’ve witnessed at other shelters, the atmosphere inside Marian is close to pacific. After dinner, the 29 other women shower, read, rest on their beds, work on their laptops, or talk quietly while sitting at small tables in the common area. After my mandatory shower, I sit with an employee who explains the rules — be respectful of others, no drinking or drugs, and don’t forget to do my chore, which is assisting with dinner service. As long as I’m home by 7 p.m., I can have my bed as long as I need it.

That is, she clarifies, until the end of August — when they’re closing the shelter. For good.

Marian is a casualty of a plan by St. Anthony Foundation to cut $3 million from the foundation’s operating budget. In addition to closing the $1.2 million Marian facility, which houses 30 women in the emergency shelter and 27 in a transitional program, St. Anthony also will shutter its 315-acre organic dairy farm in Petaluma, currently used as a rehabilitation program for homeless addicts. Its Senior Outreach and Social Services [SOSS] is also losing staff and office space as it consolidates with the Social Work Center.

Five of the foundation’s 11 programs face cuts, the result of a two-year sustainability study that St. Anthony’s executive director, Father John Hardin, said will keep the charity out of a fiscal tailspin.

"We’re not in a financial crisis," he told the Guardian. "The reason we’re doing this is so we won’t be in a financial crisis."

He said the closures reflect the organization’s desire to get back to basics.

But, as one of the 40 soon-to-be-laid-off employees said, "They’ve said they want to refocus on basic services, but I see shelter as a basic service."

St. Anthony receives no city money for the work it does, but the closures are occurring in what’s already a war zone of budget cuts for social services in San Francisco. The loss of any of St. Anthony’s programs affects the city as a whole.

"Are we concerned? Yes," said Dave Knego of Curry Senior Services, which frequently refers seniors the group can’t help to St. Anthony’s SOSS program. "Unfortunately, we already have a waiting list, and the city’s cutting our funding back by 10 percent."

The closure of Marian is yet another sign of the slow erosion of shelter space in San Francisco. Since July 2004, 364 shelter spots have disappeared. By the end of August, Marian’s 57 beds and Ella Hill Hutch’s 100 mats will be gone as well. "You can’t afford to lose 57 beds, especially in a place where women are being treated like human beings," said Western Regional Advocacy Project’s Paul Boden, who’s worked with homeless services in the city since the 1980s. "What I thought was really ironic was there wasn’t any attempt to build a community effort to discuss how to save this facility. These beds are an incredibly important community resource."

Some of the women who live in the transitional program at Marian wanted to rally and save the shelter. "First and foremost was to try to save Marian Residence for Women," said Leticia Hernandez, a two-year resident of the transitional program who still hasn’t lined up a place to go when the shelter closes. "Even if we couldn’t save it, we thought it was still worth a try because any money that would come would go back to them." The women drafted a letter asking for help, which they’d hoped management would distribute to the press and public.

The foundation, Hernandez said, had a "thanks, but no thanks" response.

Hardin told us that St. Anthony’s wasn’t facing a financial crisis, so "we’re not going to get up and cry wolf. We want to go back to some of the basics. We’re turning people away from the clinic," he pointed out.

He agreed that shelter was a basic service, but said, "We can’t do it all."

The foundation wouldn’t detail its intentions for the building once it’s vacated Aug. 31, beyond affirming that it would be rented. "That’s going to be an income generator," said foundation spokesperson Francis Aviani. "We are hoping to get a social service agency to use the space in the way it’s designed for, helping folks."

Multiple St. Anthony employees said they were told the facility would be used for medical respite — beds set aside for people who aren’t in critical condition, but are too ill or fragile to mingle with the general population and have nowhere else to go — and a St. Anthony board member confirmed that was the only plan presented to the board.

Marc Trotz, director of the San Francisco Department of Public Health’s Housing and Urban Health division, which oversees its $2.5 million, 60-bed medical respite program currently housed in two facilities, told us the city is looking for a new respite site. He confirmed that the Marian building is a facility the agency has seriously considered. "We’re not looking to push one program out in favor of another or anything like that." But, he said, "It’s a potential site that would work well."

While St. Anthony is cutting $3 million in programs, foundation staffers have been working for several years on a $22 million capital campaign for a new administrative building at 150 Golden Gate Ave. The building will replace a facility at 121 Golden Gate, where offices, the clinic, an employment center, and a dining room are currently housed. The popular dining room — which serves 2,600 meals a day — will ultimately move back to 121 Golden Gate after the building is razed and rebuilt to meet modern earthquake safety standards. The project is part of another $20 million campaign that includes a partnership with Mercy Housing to build affordable rentals on the upper floors.

St. Anthony staffers say the types of donors who will contribute to a new building are very different from those who will fund ongoing programs.

Meanwhile, food costs in the dining room have increased 18 percent in the last three months, and St. Anthony staffers expect another 25 percent increase during the coming quarter. At the same time, other free food programs in the city have closed, which means St. Anthony is seeing new faces in the dining room.

Aviani confirmed that donations have increased 8 percent to 10 percent, but the group receives very few "unrestricted" funds. Most of the money is earmarked for the dining room. In a way, she said, "that’s the community deciding what they want."

A third of the organization’s $19.7 million budget comes from bequests — a form of donation that has waxed and waned in recent years. According to Aviani, the foundation has yet to receive a single bequest this year.

The group has increased grants and deployed new fundraising methods, but she said that "The amount of grants out there for shelters and women’s programs are few and far between." She acknowledged that shelters are needed, and said St. Anthony has been "pretty outspoken about that."

The foundation has kept a tight lid on talk about the closures. None of the employees contacted by the Guardian would speak on the record — for fear, they said, of losing their severance packages.

Aviani said severance packages — which include pay and personal job coaching — are not on the line. "We asked them not to create a gossip chain, to stay focused on their work, and when people have questions, direct them to me. We didn’t say they couldn’t talk to anyone at all. That wasn’t the message at all."

Whether or not the gag order was intentional, it has had an effect and created suspicion about the foundation’s true intentions.

Even the city deferred to the organization when questioned about the potential plan to rent the Marian building and use it as a medical respite facility. "We’re not going to talk about that," said DPH spokesperson Eileen Shields. "We’re going to let St. Anthony talk about that at this point because it’s St. Anthony’s call."

On Feb. 14, Newsom — who has said shelters don’t solve homelessness — announced he would like to redesign the city’s shelters and called on the community to come up with suggestions. One of his specific suggestions was to create more medical respite centers.

In May, the Local Homeless Coordinating Board, which is chaired by Hardin, released a report outlining a number of detailed suggestions for improving city-funded shelters and services. It specifically stated that shelter beds shouldn’t be sacrificed to make room for respite.

The Mayor’s Office has yet to formally respond to the report, but at the June 2 LHCB meeting, Kayhan said there were a few things he felt confident the mayor would endorse.

"We heard loud and clear: more senior beds," Kayhan said. "And I’ll add to that women’s beds." He said that respite care would be "moving and co-locating with another location. We think that could free up space at one of the shelters." And, he added, that space could be allocated to women or seniors.

Which makes it sound like more beds for women and seniors are in the works — but considering the elimination of Marian and a shelter at Ella Hill Hutch Community Center, the city is still looking at a net loss of places for the homeless to sleep at night.

Board member Laura Guzman, who runs the Mission Neighborhood Resource Center, said she heard Hardin announce the Marian closure at a May 5 meeting. "He said it was a very difficult decision. I believe he said we’re going to try to open some medical respite beds," Guzman said. "All along we’ve said we don’t want to replace shelter with medical respite beds, but that’s exactly what’s happening."

Shuttering Marian is just one more loss in an environment of dwindling resources for women. Buster’s Place, the only 24-hour drop-in center for men and women, closed in March, and was replaced by a smaller facility that only allows men.

Five of the city’s other shelters have sections for women, but one of them is slated to close as well and none can offer a women-only safe space like Marian. A Woman’s Place is the only other all-female facility, and its 15 mats on the floor are always full. "With Marian closing, there’s going to be more of a demand on the total system," said Janet Goy, executive director of Community Awareness and Training Services, which runs A Woman’s Place. "It’s a loss, no question."

Emily Murase of the Commission on the Status of Women said it’s difficult to accurately count homeless women because women tend to take more measures than men to stay off the streets, though they may not necessarily be safely housed. Women are more prone to couch-surf, stay in abusive relationships, or settle for some other kind of compromised situation.

Murase’s group now funds a special women-only program at Glide Memorial Church, whose director, Willa Seldon, said, "We’re certainly seeing an increase in volume of women in the city to our programs. In October, we were seeing 11 in our support groups. That increased to 18 by March. It could definitely be related to Buster’s Place closing."

Hardin acknowledged the need for women’s shelters but said the city ought to take on the burden. "Maybe closing the Marian is a tipping point," he said. "As I said in front of the Board of Supervisors, it’s the government’s responsibility to provide the safety net. We’re the hands beneath the safety net."

Sandy Van Dusen has been living in the transitional program for a year and a half since her husband was murdered. She’s been told that she is about to get a studio apartment. She’s visibly excited about the move, and grateful to the foundation. But, she says, she’s still been crying every day since she heard Marian is closing. "They saved my life," she says, crying a little now. "They’re doing what they told me to never do — throw in the towel."

*

A heart once nourished

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› gwschulz@sfbg.com

Community court, every second Thursday at 10 a.m. Narcotics Anonymous on Wednesday. Apprenticeships for construction workers, Monday, bright and early.

The ancient letter board just inside the entrance of the Ella Hill Hutch Community Center tells much of the story of this neighborhood institution. Since 1981 it’s been a crucial hub for the Western Addition, a mostly level stretch of terrain west of downtown that rivals the Mission District and Bayview–Hunters Point as the source of the most despair from senseless gun violence.

For decades Ella Hill was a safe haven, a place where kids and seniors felt comfortable, where people could learn and teach and talk and work together, a little oasis in the world of urban hurt.

A placard affixed to one wall of the entryway honors Thurgood Marshall, the nation’s first African American US Supreme Court justice. In a small office nearby, a tutor assists a young girl with the multiplication table. Elsewhere, a list of rules forbids profanity, play-fighting, and put-downs.

There’s also a poster of Ella Hill Hutch, the first black woman elected to San Francisco’s Board of Supervisors, where she served from 1978-81.

But in 2006, a man was murdered during daylight hours in the center’s gymnasium before dozens of witnesses. That slaying was one of at least five brutal incidents that took place in the shadow of Ella Hill between 2006 and 2007; three more murders occurred within blocks. Many remain open cases today.

And now the center is having serious problems — troubles that reflect those of the city’s African American population, which has been plagued by violence and socioeconomic changes that are closing opportunities and forcing longtime residents out the city.

Several census tracts in the neighborhood that at one time contained between 3,000 and 6,000 black residents are down to 1,000 or far less, according to a San Francisco State University study commissioned by the city last year. The report showed that between 1995 and 2000 San Francisco lost more of its black population than 18 other major US cities.

Ironically, the city is now preparing to close the final dark chapter on 50 years of federally subsidized redevelopment in the Western Addition. But the displacement that the bulldozers set off half a century ago continues today, unabated.

That exodus has compounded structural problems at the center just when its remaining clients need it most. The nonprofit late last year underwent an organizational shake up and brief takeover by the Mayor’s Office to save it from imminent financial collapse. The center’s executive director of two years, George Smith III, was fired with little public explanation last year, and a permanent head was named only recently.

As with many aspects of this troubled community, it was unaddressed violence that fed the fire. Simply subsisting in the heart of a violent neighborhood was strain enough for Ella Hill. But suffering an attack from within seemed too much to bear for an institution some call "San Francisco’s Black City Hall."

The 2006 killing took one man’s life, but Ella Hill itself — still facing an uncertain financial future — felt the searing rounds too. Now some wonder if the nonprofit can survive the very violence and poverty it was created to help end in a neighborhood that’s changing forever.

In Ella Hill’s noisy gymnasium at the building’s east end, two teams of middle schoolers practice basketball.

"My job is to be in the best position to box him out for a rebound," their coach says as they crowd around the free throw line.

The kids are radiant and attentive now. But from this same basketball court on April 27, 2006, the Western Addition briefly edged ahead of the rest of the city in extreme bloodshed.

Donte White, 22, was working part-time at the center. As he supervised a basketball game, two unidentified males entered Ella Hill. One brandished a firearm and shot White at least eight times in the face, neck, and chest as several kids looked on in utter horror. Among them was White’s young daughter.

Police arrested 25-year-old Esau Ferdinand for the attack five months after White’s murder. But within two weeks prosecutors decided they could no longer hold him and declined to press charges when a key witness disappeared on the eve of grand jury proceedings.

Even with other witnesses filling the gym, police gathered few additional leads, an all-too-common story in a neighborhood where residents often prefer to avoid both law enforcement and vengeful criminal suspects.

The center installed cameras and an alarm. A buzzer was placed on the front door. But the new security measures cut against Ella Hill’s image as a demilitarized zone, and the center remains shaken by White’s murder. Some parents began barring their children from going there.

"Can you imagine something like that, someone coming into a rec center in the middle of the day with a firearm and shooting and killing a guy?" asks Deven Richardson, who resigned from Ella Hill’s board in 2007 to focus on his real estate business. "That really set us back big time in terms of morale. It really was a dark moment for the center."

Sup. Ross Mirkarimi, whose district includes Ella Hill, says that after he took office in 2004, he learned that the police weren’t stationed at the center during prime hours and had never created a strategy for attaching themselves to the center the way they had at other safe-haven institutions in the city, like schools. He told us he’s had to "really work" to get the nearby Northern Station more integrated into Ella Hill.

"Before the murder of Donte White, there had also been a series of incidences inside Ella Hill Hutch," Mirkarimi said over drinks at a Hayes Valley bar. "Nothing that resulted in anybody getting killed, but certainly enough indicators that really should have been taken more seriously by the mayor."

In June 2006, shortly after White’s shooting, the San Francisco Police Commission and the Board of Supervisors held a tense public meeting at the center. Residents, enraged over the wave of violence that summer in the Western Addition, shouted down public officials, including Chief Heather Fong, who was forced to cut short a presentation on the city’s crime rate.

That same month, the supervisors put a measure on the ballot to allocate $30 million over three years for violence-prevention efforts like ex-offender services and witness relocation. But Mayor Gavin Newsom, following a policy of fortifying law enforcement over community-based alternatives, opposed the measure because it excluded the police department. Prop. A, designed to finance groups like Ella Hill with connections to the neighborhood that the police will never have, lost by less than a single percentage point.

Meanwhile, four homicides in the neighborhood that year joined frequent anarchic shootouts in the Western Addition, including many that never made headlines because no one was killed. The fatalities led to promises by City Hall that the area would be saturated with improved security, including additional security cameras that have mostly proved useless in helping the police solve violent crimes.

On June 3, 2006, 19-year-old Antoine Green was standing on McAllister Street near Ella Hill early in the morning when he was shot to death in the head and back. On Aug. 16, 38-year-old Johnny Jackson’s chest was filled with bullets as he sat in the front seat of a Honda Passport on Turk Street not far behind Ella Hill. A woman next to him in the car suffered a critical gunshot wound to the head.

Two more killings occurred further east at Larch Way, a popular location for murder in the neighborhood.

Burnett "Booski" Raven, a 32-year-old alleged member of the Eddy Rock street gang, was found bleeding at 618 Larch Way early Oct. 7, his body laying halfway in the street and containing at least 10 gunshot wounds. On July 22, police found 23-year-old John Brown, another purported Eddy Rock member, wedged under a Chevy pickup truck, dead from up to seven gunshots.

Brown had reportedly survived two prior shootings, but the Western Addition’s cultural condemnation of "snitching" to police has so infected the neighborhood that he allegedly told police not to bother investigating either of the attacks.

Loïc Wacquant, a sociology professor at the University of California, Berkeley, says neighborhoods like the Western Addition that once contained stable black institutions — schools, churches, and community centers that glued residents together — have been overwhelmed by the rise of a white-collar, service-based economy, the decline of unions, and the withdrawal of meaningful social safety nets.

Cities have responded to the resulting marginalization with more police officers, more courts, and more prisons. But the failure of those institutions to cure rising violence "serves as the justification for [their] continued expansion," Wacquant quoted Michel Foucault, the famous late UC Berkeley sociologist, in the academic journal Thesis Eleven earlier this year.

The roots of the Western Addition’s tragedy go back to the early post-World War II era. In 1949, Congress enacted laws giving cities extraordinary powers to clear out land defined as "blighted." In San Francisco, that meant neighborhoods where low income people of color lived.

The Western Addition was devastated. Huge blocks of houses were bulldozed. Clubs, stores, restaurants — the heart of the black neighborhood — were wiped out. Many residents were forced out of the neighborhood and sometimes the city forever; others lost their property and their livelihoods (see "A half-century of lies," 3/21/2007).

By the 1970s, neighborhood activists were hoping that at the very least the Redevelopment Agency would pay for a recreation facility for kids. But city officials wouldn’t put up the money, recalls the Rev. Arnold Townsend, a longtime political fixture in the city and associate pastor of the Rhema Word Christian Fellowship.

Townsend said activist Mary Rogers — whom he calls "the greatest champion kids ever had in this community" and a famous critic of redevelopment — gave up on City Hall and went to Washington DC, where she sat in at a meeting that happened to include Patricia Harris, Secretary of the Department of Housing and Urban Development under President Jimmy Carter. Rogers, joined by a group of colleagues from San Francisco, bumped into Harris afterward.

"[Harris] shook Mary’s hand like politicians do, and Mary wouldn’t let her hand go until she had a meeting," Townsend said. "They were having a tug-of-war over her hand."

Rogers’ determination paid off, and enough political channels opened up that money for the center became available. Then-Mayor Dianne Feinstein cut the ribbon for the $2.3 million Ella Hill Hutch Community Center four months after the supervisor’s death, complete with outdoor seating for seniors, a gymnasium, tennis courts, and child-care facilities.

A young counselor named Leonard "Lefty" Gordon who worked at the Booker T. Washington Community Service Center, one of the city’s oldest black institutions — it was founded in 1919 on Presidio Avenue, where it remains today — was named executive director of Ella Hill three years later and led the center to wide acclaim for 17 years.

A recreation coordinator at Ella Hill started a reading program for young athletes after discovering that a local high school football star wasn’t aware he’d been named the city’s player of the year: the teenaged boy couldn’t read the newspaper to find out. Other programs for tutoring and job training targeting young and old residents were likewise started under Gordon.

Many of the people we interviewed recalled the "kitchen cabinet" meetings convened by Lefty Gordon at Ella Hill as among their fondest memories. Everyone from the "gangbangers to police" attended Gordon’s meetings, Townsend said, and made them a repository of complaints about what was happening in the neighborhood.

Alphonso Pines, a former Ella Hill board member and organizer for the Unite Here! Local 2 union, eagerly showed up at the meetings for months after attending 1995’s Million Man March in Washington.

"I hate to see brothers die, regardless of whether it’s at Ella Hill," Pines said of Donte White’s 2006 killing. "But that was personal for me, because that was the place where I had sat on the board for years. That was real shocking."

Lefty’s son, Greg Gordon, said that his legendary father — who died of a heart attack in May of 2000 — worked so hard for the center that he allowed his own health to deteriorate.

Most beneficiaries of Ella Hill’s social services now live in the southeast section of the 94115 ZIP code, roughly bordered by McAllister and Geary streets to the south and north, and Divisadero and Laguna streets to the west and east.

The majority of Ella Hill’s approximately $1.4 million annual budget comes from government sources, either through grants or nonprofit contracts.

Newsom, through his community development and housing offices, has given $860,000 over the past three years to Ella Hill to help job-ready applicants obtain construction work and other general employment in the neighborhood. The center launched its JOBZ program in 2006, targeting formerly incarcerated young adults and others with a "hard-to-employ" status.

Caseworkers must convince some participants to leave gangs, deal with outstanding warrants, pay back child support, expunge criminal records, or eliminate new offenses, all of which can exacerbate a desire to give up. Sometimes the center has to buy people alarm clocks.

"None of these other programs that are being funded in this community want to deal with the kinds of kids or people who come to Ella Hill…. [It] is the last stop for everybody," said London Breed, head of the African American Art and Culture Complex on Fulton Street and a Western Addition native. "That’s where people go who have no place else to go, which is why it’s so important."

Most nonprofits working for the city must regularly report their operational costs or show how program funds are being spent on graduation ceremonies and trips to university campuses. The required forms are mind-numbingly bureaucratic and reveal little about what a place like Ella Hill might face on a practical level each day. But last year, former executive director George Smith betrayed a crack in Ella Hill’s veneer.

"Once again violence has impacted the community with three incidents in close proximity to the complex this month alone," he wrote to the San Francisco Department of Children, Youth and Their Families, which supports the center with college preparation grants. "One of the victims was a young man scheduled to graduate from high school in June."

On May 25, 2007, 19-year-old Jamar Lake was leaving a store on Laguna and Eddy streets, northeast of Ella Hill, when a teen suspect opened fire on him. Paramedics were so worried about security in the neighborhood that they fled before attempting resuscitation, according to a report from the San Francisco Medical Examiner. Lake died at General Hospital that day.

Weeks later, a manic 12-hour long feud erupted between several gunmen on McAllister Street. Seven people were wounded during two daytime shootings that took place in the Friendship Village Apartments, across the street from Ella Hill.

Then in July, a suspect randomly and fatally stabbed 54-year-old Kenneth Taylor in the neck as he sat on a park bench near sundown at Turk and Fillmore streets, within easy view of the SFPD’s Northern Station. Police didn’t respond until Taylor stumbled to the sidewalk and collapsed; a witness had to flag down a patrol car.

Following the Lake shooting, the mayor and police department promised, as they had the year before, that foot patrols would be increased in the 193-unit Plaza East Housing Development and other public housing projects in the Western Addition.

But the city’s most visible response has bypassed Ella Hill — which has some street credibility — altogether. Instead, City Attorney Dennis Herrera went to court to get injunctions against street gangs in June 2007.

Herrera’s initial filing came days after the wild shootout on McAllister Street, but the timing was coincidental. The city attorney also had been preparing injunctions against gangs in the Mission and Bayview-Hunter’s Point for months. For the Western Addition, the city attorney noted a "recent rise in violent crimes perpetrated by the defendants," and asked that the members of three gangs be banned from associating with one another inside two "safety zones" marked along the contours of their respective territories, a 14-square-block area that straddles Fillmore Street and rests just north of Ella Hill.

"The conditions within the two safety zones have become particularly intolerable in 2007 as the deadly rivalry between the Uptown alliance and defendant Eddy Rock has intensified," Herrera’s office told the court. "In 2007 alone, this rivalry is the suspected cause of at least three homicides and numerous shootings within the two safety zones."

Some critics viewed barring people from congregating with one another a civil rights violation. And worse, they feared it would merely shove more African Americans and Latinos out of the Western Addition, which would benefit the city’s wealthiest white residents.

"All of this stuff about gang injunctions is a bunch of malarkey," said Franzo King, archbishop of the Saint John Coltrane African Orthodox Church on Fillmore Street. "You don’t really have gangs here…. [In San Francisco] they’re a big club."

Herrera nonetheless convinced a Superior Court judge to issue the injunctions after filing 1,200 pages of evidence arguing that the three "clubs," which include only about 65 people named by the city, are endless public nuisances and force organizations like Ella Hill to battle with them for the affections of Western Addition youth.

Police admit that the injunctions since last year have, in fact, led people to simply leave the neighborhood. Still, they insist the injunctions have reduced trouble in the Western Addition. The Knock Out Posse, for instance, is evaporating, they say.

Paris Moffett, a 30-year-old alleged Eddy Rock leader, told the Guardian in a separate story on the gang injunctions last November that he and others were organizing to quell violence in the neighborhood and would do so in defiance of the gang injunctions (see "Defying the injunction," 11/28/07).

But on the day that story ran, Moffett hampered his new cause when, according to a March 27 federal indictment, police arrested him in Novato for possessing a large quantity of crack and MDMA, as well as a Colt .45 semiautomatic.

After Lefty Gordon died, the center went through a couple of directors in relatively short order. Robert Hector, a second-in-command to Lefty Gordon, helmed the center briefly; he was replaced with George Smith III, who left in 2007.

Meanwhile, problems at Ella Hill grew.

"The seniors just stopped their participation," Anita Grier, a former Ella Hill board member who first ran for the San Francisco City College Board of Trustees in 1998 at Gordon’s encouragement, told us. "Things were never excellent, but they just got much worse once [Gordon] was no longer director."

The center, a standalone nonprofit, had long struggled financially in part because it relied so much on contracts and grants from the city rather than pursuing funds from private donors. Mirkarimi says Ella Hill’s structure is unlike any other community center in the city. Many other centers are directly maintained by the San Francisco Recreation and Park Department.

Contract revenue from one Ella Hill program, such as providing emergency shelter to the homeless, was often diverted to keep another on life support or to simply cover the center’s utility bills.

By early 2007, the center faced a financial catastrophe. Donald Frazier joined Ella Hill’s board as president in January 2007 and embarked on a reform effort to turn the center around. He commissioned what came to be a blistering audit that revealed the nonprofit owed over $200,000 in state and federal payroll taxes. As a result, the center faced $63,000 more in penalties and accrued interest.

Mirkarimi blames community leaders in his district for refusing to acknowledge a crisis at the center and for not turning to City Hall for help when Ella Hill appeared to be slowly rotting from the inside out.

The mayor’s staff, he adds, wanted to believe Ella Hill was working on its own and should’ve continued to do so because, despite its financial reliance on the city, it was technically an independent nonprofit. In reality, Mirkarimi said, "They were afraid to piss off black people, is what it comes down to. They were afraid to tell it like it is — that things weren’t working."

Sending delinquent invoices to the city, failing to institute reasonable accounting standards, and falling far behind on its payroll taxes all threatened the government contracts and grants that kept San Francisco’s Black City Hall afloat. By extension, the audit concluded, that meant Western Addition residents who relied on Ella Hill were "victimized" by the center’s improper use of its limited resources.

Aside from the audit, which Ella Hill instigated itself, there’s no indication in the records of agencies funding the center that any problems were occurring, which implies the city wasn’t paying attention.

"As far as I’m concerned," Mirkarimi said, "we had a renegade institution, and the only reason it wasn’t renegade in an illegal sense was because the lease allowed them to have a parallel governance structure. But it was renegade in the sense that the city neglected to supervise properly."

In November 2007, just after residents hijacked a chaotic board meeting with an extended public comment period, Frazier told the directors in closed session that the Redevelopment Agency was planning to restrict future funding for the center due to its management problems.

One month later, the mayor dispatched an aide, Dwayne Jones, along with redevelopment agency director Fred Blackwell, to a meeting at Ella Hill with an ultimatum. Jones told the assembled that new interim appointees would be taking over the center’s bank books, recreating its bylaws, and electing a new board and executive director. The old board would essentially be dissolved. According to observers at the meeting, Jones told them that if they resisted the plan, funds received by Ella Hill from various city agencies would be jeopardized, as would its low-cost lease of city property.

Two defiant board members viewed the move as a "hostile takeover" of a private nonprofit organization by the mayor and voted against it, but the rest of the board agreed to the restructuring. Mirkarimi says there was simply no alternative.

"Right now it needs to be shrunk to what it can do really well, instead of doing what they had to do in the last five years, an incremental sloppy way of programming," he said.

The interim board in April named a former Ella Hill employee and Park and Rec administrator, Howard Smith — unrelated to George Smith — to be the center’s new executive director. But after all the changes Ella Hill made to fix its leadership problems, there are no assurances the city won’t leave Ella Hill without the money it needs to keep the doors open next year.

It’s noon on a recent Friday and Ella Hill’s new executive director is scrambling to keep things together. An employee wants him to glance at a form. Another man wants to come in and play basketball. Smith has a board meeting minutes from now, but he’s scheduled an interview with the Guardian at the same time.

Smith’s a well-built man dressed in a pressed suit, polished shoes, and a sharply-knotted tie. He’d mostly avoided our calls for weeks. Word spread in the neighborhood that the Guardian was planning some sort of hit piece on Ella Hill.

But it won’t be a newspaper that capsizes the center.

A significant portion of the center’s funding will be threatened over the next year. The redevelopment agency is scheduled to end its 45-year reign in the Western Addition by then, a blessing of sorts since so many people in the neighborhood feel it’s done nothing but upend the lives of black residents. But the end of the agency means that redevelopment funds for Ella Hill’s job placement programs, about $400,000 annually, will disappear.

In addition, about $300,000 more a year will dry up since the San Francisco Human Services Agency hasn’t renewed an emergency homeless shelter contract with the center. Mirkarimi believes the mayor, too, will try to stop providing Ella Hill with funding through his community development office next year.

If Newsom does back away, Mirkarimi warns, there will be "a very loud showdown."

"What I’m worried about is that the Newsom administration is basically cutting and running on this, and I’m not going to allow that to happen, at least not without a fight," he said.

The alternative is for Rec and Park to take over managing Ella Hill’s facilities with DCYF continuing to fund youth programs there while the Redevelopment Agency commits community benefits dollars from a legacy fund to the center — the least it can do after a half-century of transforming the neighborhood, locals be damned.

An interagency council made up of the center’s primary funders could collectively watchdog its performance, Mirkarimi says. Once Ella Hill’s leaders prove that the center has fully returned to its original mission, it can consider expanding to serve other populations in the neighborhood, or even seek a plan to detach further from the city.

The mayor’s spokesperson, Nathan Ballard, did not respond to an e-mail containing detailed questions, and his aide, Dwayne Jones, did not return several phone calls. But Smith said during a later lunch interview at the Fillmore Café that he agrees with Mirkarimi’s idea.

"There are so many programs out there that say they’re doing something on paper, but they’re really not doing it," Smith said. "They’re running ghost programs. So what I’ve been saying at Ella Hill since I got there is, ‘We will do exactly what we said we were going to do.’<0x2009>"

In the meantime, Smith is determined to prove that Ella Hill’s history has only just begun. The mural of Lefty Gordon outside the center received a fresh coat of paint recently, and the color pops. The sidewalk is being repaved and new handrails installed. The walls inside are clear of the aging posters and letter board that hung there a few months ago.

Before heading off to his board meeting, Smith teasingly asks an adolescent boy meandering in the center’s entryway for 75 cents. The boy’s always hitting him up for pocket change.

"I don’t got any," the boy responds.

"You don’t have any," Smith corrects.

Smith suddenly realizes what time it is.

"Hey, why isn’t this guy in school?" he wonders aloud.

At that moment, only the Ella Hill Hutch Community Center was asking the question. *

Sunshine Task Force shoe-in shot down

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Chalk this one up in the “take nothing for granted” category.

The Board of Supervisors at today’s meeting gave an empty seat on the Sunshine Task Force to James Knoebber, rather than David Waggoner — the candidate recommended by Rules Committee. The switch came from Sup. Sean Elsbernd, who happens to be sitting on the opposite side of the courtroom as Waggoner in a case currently before the Ethics Commission.

Yet, there was no discussion about the amendment from Elsbernd to vote in Knoebber over Waggoner. The supes voted 9-1 in favor of Knoebber, ignoring the recommendation from the Rules Committee.

As one witness told us, “Nobody said anything except Elsbernd. They just voted. It smacked of an insider deal. The proper thing to do would be to send it back to Rules.”

On May 15, the Rules Committee (comprised of Ammiano, Dufty, and Daly) recommended Waggoner to the seat — an attorney with experience using the Sunshine Ordinance and who other task force members had looked forward to working with.

Waggoner expressed some shock at the news. “I don’t really know the back story yet. I don’t know why the supervisors changed their votes,” he told us. “At the Rule Committee, the conversation was about former chair Doug Comstock [the incumbent for the seat] and myself. They barely discussed the other candidate.”

“Supervisor Daly in particular mentioned I was very well qualified,” he recalled.

Daly is apparently the only one that stuck to his guns and was the lone dissent on the vote (though Maxwell was out of the room.)

A call of Ammiano on why he changed his vote has not been returned.

But here’s the back story:

Politics and sausage

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hungarian-sausage.jpg
Last night, I was reminded of the old joke that people who like sausage and appreciate politics shouldn’t watch either one being made.
Less than a week after winning a majority of the seats on the San Francisco Democratic County Central Committee, the progressive-minded “Hope Slate” candidates (all of which were endorsed by the Guardian) descended into bitter infighting over who to back for the powerful chair of the DCCC.
The acrimony began when Board of Supervisors president Aaron Peskin, whose 23,049 DCCC votes was second only to David Campos (whose run for supervisor this fall would conflict with running the DCCC), resisted calls to run for the chair, much to the consternation of progressive stalwarts such as Chris Daly and Robert Haaland.
Some Hope Slate candidates, such as Laura Spanjian, were apparently supporting a play by Assembly member turned Senator-to-be Mark Leno to have moderate Scott Wiener continue as the DCCC chair, despite the fact that he wasn’t part of the winning slate and he finished in 10th place in the DCCC District 13 race.
And for awhile there, Peskin seemed to be going along the Leno’s play, arguing that progressives should adopt a conciliatory posture. So the candidates gathered together last night at the 500 Club to hash out their differences, and I had a front row seat for a discussion that turned nasty – with Daly shouting at Peskin and Spanjian and then storming out of the room.
But today, as cooler heads prevailed, Peskin has decided to run, telling me, “Yes, it is true, I am running.”

Newsom’s power play

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› amanda@sfbg.com

GREEN CITY Mayor Gavin Newsom finally outlined what he calls a "more promising way forward than the current proposal" of building two publicly owned power plants in San Francisco.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while simultaneously shutting down Mirant’s most polluting smokestack, Unit 3.

Newsom wrote a letter to the Board of Supervisors just before a June 3 hearing on the power plants, describing a May 23 meeting that he convened with SFPUC General Manager Ed Harrington, City Attorney Dennis Herrera, California Independent System Operator President Yakout Mansour, California Public Utilities Commission Chair Mike Peevey, Mirant CEO Ed Muller, and Pacific Gas & Electric Co. CEO Bill Morrow.

"In the meeting, we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative," Newsom wrote. The board then voted to shelve the power plant plan until July 15 so the retrofit option can be vetted.

Most significant, Newsom’s meeting with top dogs at energy companies, who stand to lose a lot from San Francisco owning its own power source — and the resulting correspondence elicited a new response from Cal-ISO, the state’s power grid operator, about exactly how much electricity generation San Francisco needs.

For the first time, Cal-ISO said it will allow Mirant’s Unit 3 to close as early as 2010, when the 400-MW Transbay Cable comes online, saying that the city no longer needs to install a combustion turbine peaker plant at the airport.

Sup. Sophie Maxwell expressed frustration that the questions she, her staff, and other stakeholders have been asking for the past several years are suddenly getting different answers. "I think we’re seeing a big movement by Cal-ISO. This is huge. Before, we asked all these questions, [but] they weren’t saying what they’re saying now," she told the Guardian after the hearing.

When asked why she thought this was happening now, she simply pointed to PG&E. "Who stands to benefit from us not generating our own power? Who sent out all that stuff?" she asked, referring to the flyers depicting filthy power plants that PG&E has been mailing to residents in an effort to drum up public sentiment against the city’s plan to build peakers. "Have they been concerned about what’s clean, about our people?"

Some environmental activists are hailing the change as a triumph. "David has just moved Goliath, but we need to keep pushing," said Josh Arce of Brightline Defense, which sued to stop the city’s plan to build the two power plants. He said his organization’s goal is ultimately to have no fossil fuel plants in the city. But when asked about the retrofit alternative, he said, "We don’t support it; we don’t not support it."

Cal-ISO has insisted that San Francisco needs 150 MW of electricity to stave off blackouts. This grid reliability is currently provided by Mirant-Potrero, but the plant’s Unit 3 is the greatest stationary source of pollution in the city. Bayview residents, who have borne a disproportionate share of the city’s industrial pollution, have been agitating for more than seven years to close the plant. Much of the leadership has come from Maxwell, who represents the district and has championed the plan to replace the older Mirant units with four new ones owned and operated by the city.

That vision was integrated into San Francisco’s 2004 Energy Action Plan, which Cal-ISO has used as a guiding document for the city’s energy future. The plan outlines a way to close Mirant by installing four CTs and 200 MW of replacement power. "Cal-ISO has consistently said in writing, in verbal instructions, and at meetings, that the CTs are the only specific project that was sufficient to remove the RMR [reliability must-run contract] from Mirant," said SFPUC spokesperson Tony Winnicker.

As San Francisco’s energy plans have evolved over recent years, SFPUC staff have been instructed at numerous public hearings in front of the Board of Supervisors to ask Cal-ISO if all four CTs are still necessary. Letters obtained by the Guardian show Cal-ISO has never said the airport CT isn’t necessary until now. When asked why, Cal-ISO spokesperson Stephanie McCorkle said, "The questions are not the same. That’s why the answers are different."

When pushed for more details on what’s different, she said, "We feel the introduction of the Mirant retrofit fundamentally changes our approach to the fourth peaker. I think it’s the megawatts. It’s basically the retrofit that changes the picture."

Mirant’s peakers currently put out 156 MW, an amount that may be reduced by retrofitting. The city’s three peakers would produce 150 MW. Winnicker couldn’t explain why the story is changing, telling us, "We’re really deferring to the leadership of the mayor and the board because they’ve been able to get a really different view from Cal-ISO than we’ve been able to get."

"We’ve always said we’re open to alternatives," McCorkle said. "We can only evaluate what’s presented to us and the Mirant retrofit was only presented in mid-May." Opponents of the peaker plan say the new position indicates SFPUC officials haven’t been pushing Cal-ISO hard enough or asking the right questions.

"The city hasn’t done its due diligence insisting on different configurations of the peakers," Sup. Ross Mirkarimi told us. "What we’re learning now we could have learned two years ago." He went on to add, "With the abundant paper trail, one can only surmise or conclude there may have been a presupposed bias on the part of the PUC to the answers expected from Cal-ISO."

The SFPUC has been instructed by the mayor’s office to determine if Mirant retrofit diesels would be as clean as the city’s CTs. Until that can be proved, some are withholding support.

"I haven’t seen any information that a Mirant retrofit is as clean as the peakers," City Attorney Dennis Herrera told the Guardian. "From my perspective, I want the most environmentally clean solution."

To that end, some would like to see a formal presentation to Cal-ISO of a "transmission-only" alternative, which would outline a number of line upgrades and efficiencies that would obviate the need for any in-city power plants. Sup. Maxwell introduced a resolution urging the SFPUC to put such a proposal before Cal-ISO and to enact strict criteria for any alternative to the city’s CTs.

"We need to remember that Mirant was a bad actor. Mirant is not to be trusted," Maxwell said. "We sued them and we won our suit," she added, citing litigation brought by the city against the private company for operating the power plants in excess of its permitted hours and for market manipulation during the 2001-02 energy crisis.

Maxwell’s legislation, cosigned by six other supervisors, lays those concerns out and cautions, "In view of this history, the city should be cautious and vigilant in taking any steps that expand the operation of Mirant’s facilities in San Francisco."

The legislation also reminds policymakers that San Francisco’s Electricity Resource Plan identifies eight specific goals — one of which is to "increase local control over energy resources." It goes on to say, "City ownership of electric generating supplies can reduce the risk of market power abuses and enable the city to mandate the use of cleaner fuels when feasible or to close down any such generation when it is no longer needed."

Maxwell’s resolution also outlines a series of conditions that any alternative to the city’s peakers would have to meet. The alternative would have to be as clean or cleaner than the city peakers, have the same comprehensive community benefits package that was attached to the city’s peaker plan, have no impact on the bay’s water, and only be run for reliability needs.

The City Attorney’s Office said these criteria are not set in stone — it’s a resolution and therefore requires some level of enforcement or action. Mirkarimi, who signed on to the resolution, is still uncomfortable with it as it stands, saying it should include discussion of the city’s new community choice aggregation (CCA) plan for creating renewable public power projects.

Some environmentalists cautioned that the transmission-only approach still leaves too much control in the hands of others. "We shouldn’t let PG&E be the ones to solve this problem," said Eric Brooks, a Green Party rep and founder of Community Choice Energy Alliance. He’s urging city officials to put all the city’s energy intentions — from the CCA plan for 51 percent renewables by 2017 to an exploration of city-funded transmission upgrades — into a presentation for Cal-ISO.

Brooks noted a conspicuous absence from the May 23 meeting with the mayor: "CCA and environmentalists weren’t at the table, as usual."

Election as prologue

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› steve@sfbg.com

San Francisco politics shifted June 3 as successful new coalitions altered the electoral landscape heading into the high-stakes fall contests, when seven of the 11 seats on the Board of Supervisors are up for grabs.
Progressives had a good election night even as lefty shot-caller Sup. Chris Daly suffered a pair of bitter defeats. And Mayor Gavin Newsom scored a rare ballot box victory when the southeast development measure Proposition G passed by a wide margin, although voters repudiated Newsom’s meddling with the San Francisco Public Utilities Commission by approving Prop. E.

But the big story wasn’t these two lame duck politicians, who have served as the two poles of local politics for the past few years. It was Mark Leno, who handed Sen. Carole Migden her first electoral defeat in 25 years by bringing together progressives and moderates and waging an engaged, effective ground campaign. In the process, he may have offered a portent of things to come.

The election night speech Leno gave just before midnight — much like his entire campaign — didn’t break along neat ideological lines. There were solidly progressive stands, like battling the religious right’s homophobia, pledging to pursue single-payer health care, and blasting Pacific Gas & Electric Co. for funding sleazy attack pieces against him, reaffirming his commitment to public power.

But he also thanked Newsom and other moderate supporters and heaped praise on his political consulting firm, BMWL, which has run some of downtown’s nastiest campaigns. "It was clean, it was smart, and it was effective," Leno said of his campaign.

The Migden campaign, which had the support of Daly and many prominent local progressives, often looked dirty by comparison, marred by past campaign finance violations that resulted in Migden getting slapped with the biggest fine in state history and by Daly’s unethical misuse of the Guardian logo on a mailer that made it appear as if we had endorsed Migden.

Old alliances seemed to crumble around this election, leaving open questions about how coalitions will form going into an important November election that’s expected to have a crowded ballot and huge turnout.

UNITY AND DIVISION


There are things that unite almost all San Franciscans, like support for public schools. In this election that support came in the form of Prop. A — a measure that will increase teacher salaries through a parcel tax of about $200 per property owner — which garnered almost 70 percent of the vote.

"These numbers show that people believe in public education. They believe in what we’re doing," school superintendent Carlos Garcia told a jubilant election night crowd inside the Great American Music Hall.

Also uniting the city’s Democrats was the news that Barack Obama sewed up the party’s presidential nomination June 3, ending a primary battle with Hillary Clinton that had created a political fissure here and in cities across the country.

"The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory," Leno said on election night, triggering a chant of "Yes we can" from the crowd at the Upper Market bar/restaurant Lime.

Local Clinton supporters were already switching candidates on election night, even before Clinton dropped her campaign and announced her support for Obama four days later.

"As a strong Hillary person, I’m so excited to be working for Obama these next five months," DCCC District 13 member Laura Spanjian, who won reelection by placing fourth out of 12 slots, said on election night. "It’s my number one goal this fall."

Leno also sounded conciliatory themes. In his election night speech, Leno acknowledged the rift he created in the progressive and LGBT communities by challenging Migden: "I know that you upset the applecart when you challenge a sitting senator."

But he vowed to repair that damage, starting by leading the fight against the fall ballot measure that would ban same-sex marriage and overturn the recent California Supreme Court decision that legalized it. He told the crowd, "I invite you to join together to defeat the religious right."

A day later we asked Leno about whether his victory represented a new political center in San Francisco and he professed a desire to avoid the old political divisions: "Let’s focus on our commonalities rather than differences," he said, "because there is real strength in a big-tent coalition."

But this election was more about divisions than unity, splits whose repercussions will ripple into November in unknown ways. Shortly before the election, Daly publicly blasted "Big Labor" after the San Francisco Labor Council cut a deal with Lennar Corporation, agreeing to support Prop. G in exchange for the promise of more affordable housing and community benefits.

On election night, Newsom couldn’t resist gloating over besting Daly, whose affordable housing measure Prop. F lost big. "I couldn’t be more proud that the voters of San Francisco supported a principled proposal over the political proposal of a politician," Newsom told us on election night, adding, "Today was a validation of community investment and involvement over political games."

While Daly and some of his progressive allies have long warned that Leno is too close to Newsom to be trusted, one of the first points in Leno’s speech was the celebrate the passage of Prop. E, which gives the Board of Supervisors more power to reject the mayor’s appointees to the San Francisco Public Utilities Commission. "As an early supporter I was happy to see that," Leno said.

Susan Leal, the former SFPUC director who was ousted by Newsom earlier this year, said she felt some vindication from the vote on Prop. E, but mostly she was happy that people saw through the false campaign portrayals (which demonized the Board of Supervisors and erroneously said the measure gave it control over the SFPUC.)

"This is one of the few PUCs where people are appointed and doing the mayor’s bidding is the only qualification," Leal told us on election night.
Sup. Tom Ammiano, who will be headed to the Assembly next year, agreed: "It shows the beauty contest with the mayor is over and people are willing to hold him accountable."

ANALYZING THE RESULTS


On the day after the election, during a postmortem at the downtown office of the San Francisco Planning and Urban Research Association, political consultants Jim Stearns and David Latterman sized up the results.

Latterman called the Prop. E victory "the one surprise in the race." The No on E campaign sought to demonize the Board of Supervisors, a strategy that clearly didn’t work. Firing Leal, a lesbian, helped spur the city’s two major LGBT groups — the Harvey Milk and Alice B. Toklas Democratic clubs — to endorse the measure, which could have been a factor when combined with the high LGBT turnout.

"This may have ridden the coattails of the Leno-Migden race," Stearns said.

In that race, Stearns and Latterman agreed that Leno ran a good campaign and Migden didn’t, something that was as big a factor in the outcome as anything.
"Migden did too little too late. The numbers speak for themselves. Leno ran a really good race," Latterman said, noting how Leno beat Migden by a large margin in San Francisco and came within a few thousand votes of beating Joe Nation on his home turf of Marin County.

"It was a big deal for Leno to get so close to Nation in Marin," Stearns said.

Leno told us the polling his campaign did late last year and early this year showed he had a strong advantage in San Francisco, "so with that, I invested a lot of time and energy in Marin County."

Stearns attributed the big Prop. G win to its large base of influential supporters: "The coalition-building was what put this over the top." Daly chalked it up to the $4 million that Lennar spent, saying it had bought the election. But Stearns, who was a consultant for the campaign, didn’t agree: "I don’t think money alone ever wins or loses campaigns."

Yet he said the lack of money and an organized No on G/Yes on F campaign did make it difficult to stop the Lennar juggernaut. "You need to have enough money to get your message out," Stearns said, noting that "Nobody knew that the Sierra Club opposed [Prop. G]."

In the one contested judge’s race on the ballot, Gerardo Sandoval finished in a virtual dead heat with incumbent Judge Thomas Mellon. The two will face off again in a November runoff election because a third candidate, Mary Mallen, captured about 13 percent of the vote.

"How angry is Sandoval with Mallen now?" Latterman asked at the SPUR event. "If that 13 percent wasn’t there, Sandoval wins."

Both Latterman and Stearns agreed that this election was Sandoval’s best shot at unseating a sitting judge. "He’s going to face a tougher test in November," Stearns said.

The other big news was the lopsided defeat of Prop. 98, which would have abolished rent control and limits on condo conversions in addition to its main stated aim of restricting the use of eminent domain by local governments.

"It just lost bad," Latterman said of Prop. 98, the second extreme property rights measure to go down in recent years. "It just needs to go away now…. This was a resounding, ‘Just go away now, please.’<0x2009>"

LOOKING FORWARD


Aside from the Leno victory, this election was most significant in setting up future political battles. And progressives won a big advantage for the battles to come by picking up seats on the city’s two Democratic County Central Committees, a successful offensive engineered largely by Daly and Peskin, who were both elected to the eastside DCCC District 13.

"On the DCCC level, we took back the Democratic Party," said Robert Haaland, a progressive who was reelected to the DCCC District 13.

"The fight now is over the chair. The chair decides where the resources go and sets the priorities, so you can really do a lot," Haaland told us.

Many of the fall supervisorial contests feature races between two or three bona fide progressives, so those candidates are going to need to find issues or alliances that will broaden their bases.

In District 9, for example, the candidates include housing activist Eric Quezada (who lost his DCCC race), school board president Mark Sanchez, and Police Commission member David Campos — all solid progressives, all Latino, and all with good bases of support.

Campos finished first in his DCCC District 13 race just ahead of Peskin. Speaking on election night at the GAMH, Campos attributed his strong showing to walking lots of precincts and meeting voters, particularly in the Mission, an effort that will help him in the fall.

"A lot of Latino voters are really eager to be more involved [in politics]," Campos said. "Speaking the language and being an immigrant really connects with them."

Campos thinks public safety will be a big issue on voters’ minds this fall, an issue where he has strength and one that progressives have finally seized. "Until Ross Mirkarimi came along, progressives really weren’t talking about it," Campos said.

So, does Campos’ strong DCCC showing make him the front runner? When I asked that question during the SPUR event, Latterman said he didn’t think so. He noted that Sanchez has always had strong finishes on his school board races, citywide contests that includes the Portola area in District 9 but not in DCCC District 13. In fact, Latterman predicted lots of acrimony and close contests this November.

"If you like the anger of Leno vs. Migden, we’ll have more in the fall," Latterman said of the competitive supervisorial races.

Leno hasn’t been terribly active in local contests since heading to Sacramento, and he told us that his focus this fall will be on state ballot fights and the presidential race. He hasn’t made endorsements in many supervisorial races yet, but his two so far are both of progressives: Ross Mirkarimi in District 5, and David Chiu in District 3. And as he makes more supervisorial endorsements in the coming months, Leno told us, "I will be fighting for progressive voices."

Sarah Phelan contributed to this story.

And so it begins

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› sarah@sfbg.com

Mayor Gavin Newsom chose a telling site for the June 2 release of his budget: the San Francisco Police Department’s Special Tactical Operations Center at Hunters Point Shipyard. And if its relationship to Proposition G, the mayor’s plan to let Lennar Corporation develop the southeast part of the city, wasn’t clear enough, Newsom made it explicit.

"You’ll have the opportunity to support Proposition G and reject Proposition F, the one that is getting in the way," Newsom told department heads and the press as police, who warned budget protesters that it is illegal to campaign on city property, looked on in silence. It is also illegal for the mayor to campaign for ballot measures on city property.

In his speech, Newsom labeled as the "heroes" of this year’s budget the unions that have agreed to unpaid days off, including the Laborer’s Union, the Deputy Sheriff’s Association, Firefighters Local 798, and the Municipal Executives Association. Conversely, he vowed to remember that the police, nurses, and lawyers unions wouldn’t amend the contracts Newsom negotiated last summer.

Sounding more like a gubernatorial candidate intent on winning over Orange County voters than the leader of the most progressive city in the nation, Newsom said, "We are living within our means and being fiscally prudent, without out-of-control borrowing and without tax increases. But we still have a $338 million shortfall."

But there has been widespread criticism of the mayor’s plan as details emerge of its massive cuts to health and human services, while increasing the city’s budget for street repaving, pothole repair, and police academies.

"It’s the least democratic, least transparent budget process in many years, in terms of lack of information from the Mayor’s Office to the city departments and the community-based organizations that are affected," said Coleman Advocates for Children and Youth organizer Chelsea Boilard. "In the past, programs were given a heads-up. This year it continues to be a frantic scramble."

According to Boilard, city departments were still finding out the extent of the cuts even after Newsom made his presentation, including the news that the budget addbacks approved by the Board of Supervisors last year are not being continued in the 2008-09 budget.

"A nightmare," was how Debbi Lerman of the San Francisco Human Services Network described the budget.

"If we listen to mayor’s presentation, everything is rosy, revenue-wise. It’s just a spending problem. But from the community’s perspective, it’s shocking," Lerman said, citing $15.5 million in cuts to the Department of Public Health, $3.5 million in cuts to the Human Services Agency, and a 20 percent cut to domestic violence programs.

"And [the cuts] have been a constantly moving target," Lerman added. "We’re mere weeks away from the implementation of this budget, but no one knows which clients, programs, or services will be lost, though we are sure that there will be a lot of layoffs in our sector. The mayor should not balance his budget on the backs of the poor."

She believes the city needs to look at some non-essential services during a bad budget year and see what can be deferred to the future — and find ways to increase its revenue.

"The mayor is not a stone. He does get it to some degree. But it’s unfortunate that he’s not chosen to put forth revenue measures at this point," Lerman said.

Robert Haaland of Service Employees International Union Local 1021 agrees that the city has a revenue problem. He also believes that it’s not OK to ask the city’s lowest-paid workers to make concessions, again and again: "[SEIU 1021] has repeatedly stepped up to the table, we’d like to see some others do it."

Jonathan Vernick, executive director of Baker’s Place, which is facing the prospect of having to close one floor of its medical detox program, argues that many of the mayor’s proposed cuts are in conflict with Newsom’s stated goal of getting the homeless and inebriated off the street. "Ironically, this budget seems to fail to meet a simple criteria — that the proposed cut actually saves money," Vernick said. "All I can see is cuts that by end of fiscal year will have dismantled a system that’s been working for 35 years."

John Eckstrom of the Haight Ashbury Clinics believes the budget cuts will decimate the model of integrated services. "These are very deep cuts," said Eckstrom, who expects to lay off 40 to 50 of his 170 employees.

"It’s a testament to the willpower of the nonprofits that we are able to stay alive," Eckstrom said. "But what are the mayor’s priorities? There’s his rhetoric that says it’s not a revenue problem, and then there’s the reality."

With the Board of Supervisors set to conduct public budget hearings throughout June, Board President Aaron Peskin sees Newsom’s proposal as a "law and order budget."

"Domestic violence programs have lost $750,000 in funds, substance abuse programs have been taken to the woodshed, and mental health programs are being cut by 25 percent," said Peskin, criticizing the mayor for "introducing and extolling new programs while failing to protect the safety net of human and health services that San Francisco has put together over many years."

"Last time we had a budget like this, Mayor Willie Brown was much more forthright and honest about its disastrous impact on the poor," Peskin added. "This administration has cloaked this disaster in a press blitz. But any way you dress it, it’s a pig."

As chair of the Board’s Budget and Finance Committee, Sup. Jake McGoldrick was equally blunt in his criticisms as he set about deciphering the details of Newsom’s proposal

McGoldrick refuted as "a deception" Newsom’s claim of having cut 1,085 jobs. "The real number is 99.08 positions," McGoldrick said, factoring in preexisting vacancies, Newsom’s three proposed police academy classes, and the 26 staff positions for Newsom’s 311 program, not to mention other new proposed programs and initiatives.

Upset that Newsom has budgeted $500,000 for a Community Justice Court that will divert people to the kinds of programs that Newsom’s budget is undermining, McGoldrick told the Guardian that he "aims to identify at least $30 million to $40 million in deceptions and redirect these funds to top priority human needs and services that are already woefully underfunded."

"The mayor is trying to pump all the problems over to the Board of Supervisors," McGoldrick said. "It’s going to be a labor of love to figure out how to direct money to folks who are hurting now."

Peskin said he expects the supervisors to discuss three new revenue proposals in the next month in order to avoid another slash-and-burn budget next year. These proposals include a property transfer tax, closing a payroll tax loophole on partnerships, and preserving the city’s 911 fee, which is under legal attack.

As of press time, the Mayor’s Office had not returned calls about revenue creation. Maybe Newsom’s handlers were busy figuring out how to deal with a budget protest slated for 6 p.m. June 11 outside the his residence in the Bellaire Tower building, 1101 Green St.

Organized by Jennifer Friedenbach, executive director of the Coalition on Homelessness, the protest aims to draw attention to what Friedenbach calls "Mayor Newsomator’s plans to terminate the poor."

These plans include closing the Ella Hill Hutch Homeless Shelter as well as the Tenderloin Health Homeless Drop-in, and the almost total elimination of the SRO Families United Program. The Board has until July 31 to adopt a revised budget.

Uh-oh: Lennar’s $25 million shipyard funding gap

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Sup. Chris Daly wants an immediate hearing into the fiscal health of Lennar’s construction project at Hunters Point Shipyard, (you know, the one where they repeatedly messed up the asbestos dust monitoring).

Daly made his request at the June 10 Board of Supervisors meeting, following the discovery that the San Francisco Redevelopment Agency has applied for, but has so far been denied, a $25 million grant to subsidize infrastructure costs at the site.

The agency filed its grant application with the California Department of Housing and Community Development in April 2008. During that same period, Lennar spent an estimated $5 million to successfully persuade voters to support Proposition G, which will allow Lennar to develop luxury condos at Candlestick Point, as well as at the Shipyard.

(At the last minute, Lennar appeared to sweeten Prop.G’s terms, by negotiating a community benefits deal with the San Francisco Labor Council, including promises of 32 percent affordable housing and job creation investment. But tthe deal stretches the definition of “affordable” to way above what your average Bayview Hunters Point resident earns. And it only becomes legally binding, if, and when, something gets built at Candlestick/Hunters Point.)

Holding up a big fat binder, stufed with spreadsheets, financial data and grant applications, Daly read aloud to his fellow supervisors from documents that suggest that there is a serious financial shortfall at the Parcel A site, where Lennar graded an entire hillside in preparation for developing a 1,500 unit condominium complex.

“This raises questions about Parcel A and the mixed use project,” said Daly, citing from documnents that claim that the receipt of gap funding, “will restore the ability of the SFRA and the Developer to continue the development.g

As the agency’s own grant application states, “The Gap Funding in the amount of $25,021,079 provided by the infill infrastructure grant will enable the San Francisco Redevelopment Agency and the land master developer to continue the development of the Shipyard.”

“The infill infrastructure grant will be instrumental in moving forward the Capital Improvement Project in light of exisiting market conditions and increased construction costs.”

“Without the receipt of the grant, it will face delays in the timing of the completion of the infrastructure and creation of much needed parks.”

Hmm.

Daly’s cache of documents also reveal that the Shipyard Legacy Fund has shrunk from $30 million to $5 million. This raises serious doubts about the City’s ability to deliver on a list of promised community benefits at the Shipyard.
According to the SFRA’s own documents, “The Legacy fund is charged with reinvestment of the Agency’s proceeds from net land sales back into the BVHP community with an emphasis on employment, housing and financial/asset development, youth development, elder services, arts/culture & recreation and environment/safety.”

Stay tuned.

Interfaith demonstration challenges Newsom to remember homeless

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By Marianne Moore

At the foot of the rotunda stairs in City Hall, a young bride in a short white dress shifts her weight from side to side, holding a bouquet of bright yellow lilies. Maybe she’s watching intently as the solemn procession of roughly 120 clergy and activists winds slowly up the steps and towards the bronze bust of Harvey Melk. Or maybe she’s just annoyed at being made to wait.

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The demonstration, which began in the South Light Court at 10:30 on Thursday, June 5, was organized by Religious Witness for Homeless People, an interfaith organization that pushes for policy change on behalf of San Francisco’s homeless. Though Religious Witness has been responsible for hundreds of actions during its 15-year existence, including a much-publicized 1996 campaign to preserve the Presidio’s Wherry housing for low-income tenants, today’s protest was specifically directed at the ongoing budget process. The city is facing a $338 million dollar deficit, and Mayor Newsom is expected to balance the budget by cutting city funding to key service organizations. “The proposed budget is a disaster for San Francisco’s homeless,” said Sister Bernie Galvin, the founder of Religious Witness and a Catholic nun. She cited the 137 documented homeless deaths in San Francisco in 2007, suggesting that if the mayor and the board of supervisors cut crucial services, homeless deaths could rise this year.

The demonstrators processed through the corridors of city hall, singing softly, past signs reading “Silence: meeting in progress.” The procession halted outside the office doors of each of the city’s 12 supervisors, and each time Sister Bernie rapped loudly on the glass. As the door opened, retired Catholic priest John “Fitz” Fitzgerald spoke each supervisor’s name loudly, and the crowd responded in unison: “we call on you to remember that our moral compass always points in the direction of compassion.” Sister Bernie presented the supervisor with a plaque (usually accepted with an embarrassed smile by an aide) and the slow marching and singing resumed, punctuated by the sound of the heavy wooden doors slamming shut. When the demonstration reached the office of Gerardo Sandoval, the 11th district supervisor, a grinning Sandoval joined the procession, chatting with the clergy, shaking hands and clapping backs. “I’m with you one hundred percent,” he said, addressing the crowd.

Beyond the budget spin

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OPINION Local government is frozen. The mayor’s office and the Board of Supervisors have been engaged in open warfare for months. This week, Mayor Gavin Newsom announced that in order to balance San Francisco’s budget, city services and community-based organizations will have to undergo draconian cuts.

In a preemptive move against embarrassing protests, the mayor’s press office did not reveal the location of the annual budget presentation to the news media until late Friday afternoon. Even the supervisors, who will be debating and voting on the budget during the month of June, were left in the dark until then.

While the mayor didn’t blame city workers for the financial crisis, he did suggest that Service Employees International Union Local 1021, which represents the low-wage, frontline, service-providing city workers, should "help out."

Well, we have. SEIU members stepped up to "help out" in fiscal years 2003–04 and 2004–05 by agreeing to wage freezes and self-funding our pensions. All the recent midyear cuts were in public health agencies and among SEIU-represented nonprofits.

Most recently we stepped up by helping draft and vigorously campaigning to pass Proposition B, which freezes city workers wages for two years and tightens eligibility for retiree health care benefits in exchange for a modest increase in city pension benefits.

The mayor’s budget director repeatedly has said that this is a spending problem, not a revenue problem. Talk about spin.

Moreover, in his June 2 budget presentation, the mayor made no mention of raising revenue as an answer to our fiscal problems. You could almost hear Gov. Schwarzenegger’s voice as Newsom presented a slash-services budget with a "no-new-taxes" slogan waiting in the wings for his next campaign.

Everyone knows it’s expensive to live in San Francisco. Paying city employees a wage that allows them to stay in the community they serve isn’t a budget "problem." It ought to be a basic part of what City Hall does and cares about. And if that means looking at bringing in new sources of money, we should have that conversation.

We believe there are various revenue sources that make more sense to explore than some of these service cuts, including a real estate transfer tax increase for high-level properties.

Fortunately, the mayor’s proposal is just a starting point. Soon we will be proposing specific alternatives.

Toward that end, the San Francisco Human Services Network and Coleman Advocates for Children and Youth have organized a citywide forum on the mayor’s proposed budget cuts. SEIU 1021 is cosponsoring this event. The San Francisco budget and revenue town-hall meeting will be held June 9 from 2-4 p.m. in the San Francisco Main Library’s Koret Auditorium, 100 Larkin (at Grove)

Don’t get angry. Get organized.

Robert Haaland

Robert Haaland is a longtime San Francisco activist who works for Local 1021.

Leno celebrates tough win

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Lime on Market Street near Castro was crowded with Mark Leno supporters when the candidate took the microphone just before midnight. He had already taken the concession calls from Carole Migden and Joe Nation and was primed to celebrate his victory over an incumbent senator, whom Leno supporter Bevan Dufty had just taken a couple subtle digs at as he introduced Leno, suggesting that Migden didn’t listen to her constituents or play by the rules.
Leno then gave a speech that demonstrated the unique package of issues, enemies and allies that he has turned into a winning coalition. “Tom Ammiano, it’s gonna be a helluva lot of fun serving with you,” Leno said of the man who will succeed him with his endorsement. “I just heard Prop. E passed,” Leno continued, referencing the measure that will submit the mayor’s SFPUC appointments to Board of Supervisors approval. “As an early supporter, I was happy to see that.” That stand was already a hopeful sign of his independence from Mayor Gavin Newsom and PG&E, but then he really went after the company, which had funded a hit piece mailer by a group calling itself Californians to Protect Children, trotting out some old sleaze about Leno being soft on pedophiles because he resisted right wing efforts to capitalize on crime fears.
“When you attack one gay man like this, you attack all gay men,” Leno said. “All gay men should be outraged with PG&E tonight.” He thanked Dennis Kelly of United Educators of San Francisco for giving his campaign early credibility. Then Leno returned to the LGBT community, promising to heal the rift his challenge of Migden opened by leading the fight against the fall ballot measure that would ban same sex marriage. “I invite you to join together to defeat the religious right,” Leno said.
He then thanked a long list of leaders who endorsed him, from Mayor Gavin Newsom and House Speaker Nancy Pelosi to District Attorney Kamala Harris and former SFPUC director Susan Leal to members of the late night entertainment community, which rallied for Leno with signs on nightclubs all over town. And then he thanked his campaign consultants, the downtown darlings BMWL, affectionately naming a list of people from there and saying of the campaign they created: “It was clean, it was smart, it was effective.”
And Leno’s final name check was to the presidential candidate he supports, who also had a good night: “The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory.”

Cal-ISO totally changes tune on power plants

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Oh my. For all you folks that have been following the controversy around building new power plants in San Francisco, it just got even better.

Mayor Gavin Newsom sent a letter to the Board of Supervisors today outlining a “more promising way forward than the current proposal” to build two natural gas-burning “peaking” power plants in the city.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while at the same time shutting down Unit 3, the most polluting part of the power plant, as soon as the Transbay Cable comes online.

“On Friday, May 23, Ed Harrington [General Manager of the SFPUC], City Attorney Dennis Herrera and I met with president of Cal-ISO – Yakout Mansour, the chairman of the CPUC – Mike Peevey, the CEO of Mirant – Ed Muller, the CEO of PG&E – Bill Morrow, and our respective staffs. In this meeting we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative,” Newsom wrote to the Board.

For anyone who’s been closely following the nuances of this argument, this is a significant change in position from the California Independent System Operator [Cal-ISO], and it should be noted that it took — not just the Mayor sitting down at the table — but top dogs from PG&E and Mirant (who both stand to lose money by the city building its own power plants), as well as the CPUC’s Peevey, who’s never expressed a positive opinion about the true need for more power plants in the city.

Now, suddenly, Cal-ISO is departing significantly from all previously expressed demands that we build power plants.

The background: The state, through Cal-ISO, has for the last several years insisted that San Francisco needs 150 megawatts of peak electricity at the ready. We currently get this from Mirant-Potrero, but Unit 3 of that facility has a bad rep as the greatest single source of pollution in the city. People in the Bayview neighborhood, which have carried more of their fair share of pollution, have been waiting a long time for the plant to close. Stakeholders have been meeting for over seven years, working on ways to close the plant, and much of the leadership on the issue has come from Sup. Sophie Maxwell, who represents the Bayview district.

Cal-ISO has insisted that the only way to close Unit 3 is to build new peakers, which would be owned and operated by the city, run cleaner and more efficiently, and still supply that 150 MW of peak power. Even when the 400 MW Transbay Cable was approved, Cal-ISO insisted San Francisco would still need the peakers.

But in a June 2 letter, Cal-ISO suddenly had a different response for the Mayor.

Mayor’s plan for changing homeless shelters

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At today’s Local Homeless Coordinating Board meeting, Mayor Gavin Newsom’s homelessness “czar,” Dariush Kayhan, briefed the group on new ideas for improving city-funded shelters that he and the mayor have been hashing over.

There were just a few, and most of them seem like they need coordination more than cash, but they all answer, to some extent, some of the calls for help that have been coming from the city’s homeless shelter system.

All of this comes from a Feb. 14 announcement by Mayor Newsom that he’d like to redesign the city’s shelters, (the day after SFBG published an expose on conditions inside.) At the announcement, Newsom discussed possibly consolidating shelters into larger facilities, offering more medical respite care, and bringing Project Homeless Connect into the shelters. Ultimately, he called on the people working in San Francisco’s homeless services industry to come up with for how to make shelters better.

Since then, a series of long, comprehensive meetings have been held to gather ideas from homeless people, shelter clients and employees, non-profit groups, medical and mental services providers, and advocates. Meetings were held at shelters and other places convenient to the homeless population (though at all the meetings I attended there was a lot of criticism that the forums weren’t drawing in enough actual homeless people.) Topics tackled included problems accessing the shelters and the quality of medical and other support services — and suggestions were plenty. The Local Board pulled together a report, outlining the most frequent, concrete, and consensual, the most repeated being: don’t reduce the number of beds. (Too bad: The Human Services Agency cut the shelter at Ella Hill Hutch from their budget, which means, as of June 30, 100 fewer mats will be available every night unless advocates rally the Board of Supervisors to put the funding back.) The other biggest cry was for more services in general, made more easily accessible, and a number of really smart ideas came out for how to do that and are included in the report [PDF].

Kayhan said he and the Mayor would be putting together an official response to the report with more concrete details of their vision. In the meantime, he threw a few ideas to the meeting.

They include:

Mayor uses Shipyard to announce budget, Monday

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It’s 4 PM on a Friday afternoon, that hour when most employees are counting the seconds to the weekend—and wishing that Monday morning wasn’t only 65 hours away.

But does the Mayor’s Office know what time it is?

And if so, why have we only just found out that Mayor Gavin Newsom is planning to make his Monday morning budget announcement, at 10: 30 am, June 2, at the Hunters Point Shipyard?

The announcement will be made at
View Larger Map“>606 Hunter’s Point Shipyard.
(Unless, Newsom is planning a repeat of his disappearing Olympic Torch stunt.)

The location happens to be the San Francisco Police Department’s Tactical Operations center. Press are being asked to present press credentials for entry.

Could it be that this announcement is being made at the very last minute because the choice of location gives Newsom the appearance of impropriety? Newsom backing Prop.G on the June 3 ballot, the measure that developer Lennar has spent over $3.5 million in an effort to grab even more of San Francisco’s waterfront real estate, adding highly desirable land at Candlestick Point to the shipyard’s wastelands, so it can develop even more luxury condos?

Or could it be because he didn’t want to tip of supporters of Prop. F, the competing measure on the June 3 ballot that requires that 50 percent of development in the Bayview is affordable to people who actually live there—households that tend to make $68,000 and under and can’t afford to buy $500,000 condos and million-dollar townhouses?

Whatever the reasons, the running dogs of the press weren’t the only ones left in the dark about the budget locale.

No one on the Board of Supervisors was informed until 4PM, Friday afternoon, either. That’s when a mayoral aide came by the office of Sup. Ross Mirkarimi, who sits on the Board’s Budget and Finance Committee, to deliver the news of this hitherto top secret location.

Normally, Board members get an invitation at least 10-14 days beforehand.

Mirkarimi calls the move “highly unorthodox and outrageous.”

“What’s really unforgivable is that we are facing the worst budget deficit in San Francisco’s history,” Mirkarimi said. “The Mayor needs to be fostering collaboration, and enlisting the support of everyone he can, especially those who have influence on the budget process. It’s unfortunate that the casualty in all this is our desire to work together.”

Assessing the deal

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› sarah@sfbg.com

Mayor Gavin Newsom stood with San Francisco Labor Council executive director Tim Paulson, flanked by Sup. Sophie Maxwell and representatives from megadeveloper Lennar, the San Francisco Organizing Project, and the Association for Community Organizations for Reform Now (ACORN) May 20 to announce "a historic community benefits agreement."

Lennar had been persuaded to promise more affordable housing and other giveaways in order to win some important new endorsements in their troubled bid to take control of Candlestick and Hunter’s points and cover them with about 10,000 new homes.

"This is a very big deal," Newsom said, plugging the Lennar-financed Prop. G and bashing Sup. Chris Daly for his leadership of the campaign to qualify Prop. F, which would require that half the new units be affordable to households making less than $75,000, a requirement that Lennar casts as a deal breaker.

"Prop. F is a pipe dream that guarantees you only one thing: what you already have," Newsom said. "We have to get the message out what a Trojan horse Prop. F is." Lennar’s top local executive, Kofi Bonner, added that the agreement "enables us to go forward, because now we have new allies."

The Labor Council’s ability to invigorate a campaign makes it an important ally. Yet Lennar’s giveaway of more than it had previously promised and the fact that the agreement comes just two weeks before the June 3 vote seem to indicate that the Prop. G supporters have grown desperate.

Lennar already has spent $3.26 million to promote Prop. G and oppose Prop. F, only to find polls showing Prop. F well ahead despite a campaign that has raised less than $10,000. The weak poll numbers clearly convinced Lennar and its backers in the political power structure that voters would be more likely to support Prop. G if Lennar came up with something that seemed legally binding.

But by supporting a deal that appears to pin down Lennar on levels of housing affordability and community investment, Newsom ironically seems to be validating the concern of Daly and Prop. F’s other backers that Prop. G lacks guarantees on these fronts (see "Promises and reality," 04/23/08).

Not even Newsom could deny that Prop. F’s presence on the political landscape pushed Lennar to seek a community benefits agreement with the Labor Council and ACORN, a group that had been a solid part of Daly’s affordable-housing constituency.

"It probably has," Newsom told the Guardian. "That said, I don’t think Prop. F should suggest the deal is better because of them. Perhaps it’s worse."

Daly dismissed Newsom’s attacks as more attempts to hurt Prop. F’s popularity by trying to attach it to Daly’s personal negatives. Daly also attacked the agreement as overstated in its promises and impossible to enforce.

"I really don’t know if there is any net gain from one deal to the next," Daly said. "And how is it enforceable? We’re not sure anything legally binding is on table now. If there was a development agreement then obviously we would have some surety, as we would if we had a development plan that had cleared the approval process — Lennar’s financial vulnerabilities notwithstanding."

Noting that the city has had "bad luck with big order projects before," Daly recalls how Lennar reneged on building rental units at the Shipyard’s Parcel A, where the developer also failed to properly monitor and control asbestos dust despite promising to do so.

The agreement, which doesn’t include the city or any government agency as a party, is certainly unconventional. But is the deal legally binding? And just who benefits from it?

The CBA purportedly commits Lennar to create 31.86 percent "affordable" housing units in the Bayview, contribute $27 million to provide affordable homes throughout District 10, rebuild the Alice Griffith public housing project, and give down payment and first-time homebuyer assistance on another 3 percent of the homes.

All told, Paulson claims the deal locks in an unprecedented 35 percent affordable housing into Lennar’s mixed-use proposal for the Bayview. The deal also obligates Lennar to invest $8.5 million in workforce development in District 10, hire locally, pay living wages, and allow worker organizing with a card check neutrality policy.

"This legally binding agreement is a way we can insure that our community gets the benefits it needs," said SFOP co-president and longtime Bayview resident Eleanor Williams.

Paulson said May 22 the deal is still being "lawyered up" to ensure its enforceability, and ACORN’s John Eller insists the deal was done with community input. "We have had numerous meetings in which the community was demanding accountability and clear commitments to the workforce and housing, including the possibility of home ownership," Eller told the Guardian.

But Julian Gross, director of the San Francisco–based Community Benefits Law Center, clarifies that the deal only becomes legally binding if Lennar builds a mixed-use project in Bayview/Candlestick Point. "A community benefits agreement gives people a way to work in a coalition," said Gross, who helped negotiate CBAs at Oakland’s Uptown and Oak to Ninth projects, and at Lennar’s development in San Diego’s Ballpark Village in 2005.

Michael Cohen, director of the Mayor’s Office of Economic Workforce and Development, said the city hopes to enter into its own legally binding agreement with Lennar over a mixed-use project by the end of 2009, once environmental reviews on the project are completed.

Given that the project is expected to take 12–15 years to complete, could Lennar change the CBA’s terms after it starts to develop the Bayview? Yes, says Donald Cohen of the San Diego–based Center for Public Policy Initiatives, but only if both sides agree to any changes.

"In a private deal between private parties, those parties can agree to change the terms of the deal at any time," Cohen explained.

That’s significant given the divisions over development within the Labor Council. As Paulson confirmed, the building-trade unions were pushing for outright endorsement of Prop. G and opposition to Prop. F, but he successfully pushed for the negotiations with Lennar, which lasted more than eight weeks and almost broke down several times, Paulson told us.

"I told them, I don’t think that’s where we are coming from because Prop. G doesn’t contain guarantees on affordable housing or jobs," Paulson said of his initial response to Prop. G supporters.

The agreement appears to stretch the definition of "affordable housing," reaching up to those earning 160 percent of area median income, which is essentially market-rate housing for the low-income southeast sector.

Prop. F supporter Alicia Schwartz of People Organized to Win Employment Rights said that what labor’s deal with Lennar means is that only 15.6 percent of the housing will truly be affordable to the folks who currently live in the Bayview. While "3,500 units sounds good," Schwartz observed, "Only 50 percent of them will be for families making 60 percent and less of area median income, while the other 50 percent are for 80 to 160 percent AMI. That means $500,000 condos, which 70 percent of the Bayview can’t afford."

Yet Cohen said it’s understandable that the Labor Council crafted a deal that caters to those with above-average incomes.

"Affordable-housing policies over the last 10 years have tended not to address the needs of many of their members," Cohen said. "Many families make more than $64,000, so they can’t qualify for affordable housing, but don’t make enough to buy. This provides a fantastic and large-scale opportunity to address the problem of the squeezing of the middle class in San Francisco."

Public records obtained from the Mayor’s Office show that prior to this latest deal, Lennar planned to build up to 75 percent market-rate housing at the site, including hundreds of million-dollar townhouses, thousands of high-rise units at $787,483, mid-rise units at $734,400, townhouses at $651,366, and low-rise units at $592,797.

But under the CBA, the top tier of condos that Lennar deems "affordable" cost about the same as the cheapest market rate units it had already planned to build, leaving only 1,566 rental units at rates truly affordable to San Francisco’s low-income workers.

Paulson believes the resulting agreement "ensures that residents, workers, tenants, and future homebuyers have a path to new jobs and housing." He also claims that it is tied to the land, "meaning that it would be transferable to other developers if Lennar pulls out."

Joseph Smooke, executive director of the Bernal Heights Neighborhood Center, said he believes the jobs agreements labor negotiated are good. "It’s the housing stuff where they gave away the store," Smooke said. "Why didn’t they stick to the jobs piece and support Prop. F?"

Pointing to the Board of Supervisors’ passage of policy saying that 64 percent of housing in eastern neighborhoods should be targeted at 80 percent of AMI and below, Smooke added, "There are ways to make 50 percent affordable work. This is free land. It’s not rocket science. But is it city policy to protect a developer’s stated desire for 18 to 22 percent profit?"

Meanwhile, Schwartz hopes SFOP and ACORN are being accountable to their base of low-income workers. "Lennar would like to tell you that if Prop. G doesn’t pass, nothing happens. But in reality, the community’s plan stays, plus now there is a 50 percent affordable-housing requirement," Schwartz said. "That’s a win-win."

"For Newsom and Lennar to say that Prop. F is a poison pill — the irony is not lost on the Bayview," Schwartz added, recalling the city’s failure to hold Lennar accountable for its promises and misdeeds. "We’re looking to change the way business is done in San Francisco." *

Ongoing threat

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› amanda@sfbg.com

The debate over city plans to build and own two combustion turbine power plants, a project Mayor Gavin Newsom has made a last minute effort to alter, shows that public power — and Pacific Gas & Electric Co.’s fear of it — is still a significant issue at City Hall.

Newsom, a past advocate of the project, pulled the plug on its progress May 13. The proposal for the natural gas–fired power plants to handle peak energy demand (called "peakers") was up for approval at the Board of Supervisors until Newsom requested a one-week continuance.

Christine DeBerry, the mayor’s liaison to the board, told supervisors the mayor would use the time to aggressively pursue better options than the peakers, even though it’s an item that spent eight years on the planning block and was approved by the Newsom-appointed San Francisco Public Utilities Commission.

"What can be aggressively pursued in the next week that hasn’t been aggressively pursued in the last few years?" asked Sup. Chris Daly, one of the four supervisors publicly opposed to the plan, questioning DeBerry on why the mayor and his SFPUC hadn’t put forth the best energy project.

"The mayor engaged in a full exploration of the options over the last several years," DeBerry said, but wants to ensure the city is considering all options.

"Are you anticipating there’s going to be a new technological breakthrough in the next several days?" Daly asked before casting the lone vote against granting the continuance. As of the Guardian‘s press time, the plan’s hearing was scheduled for May 20, but sources said June 3 would be more likely. Newsom Press Secretary Nathan Ballard would not confirm whether another continuance would be requested or discuss what alternatives the mayor’s office is pursuing.

But it appears that the new technological breakthrough being pursued by the mayor’s office is actually a retrofit of an older, existing power plant in Potrero Hill, owned by Mirant Corp.

Sam Lauter, representing Mirant on the issue, said the company has been answering questions about a retrofit from diesel to natural gas for its three turbines. Mirant already agreed to close the older natural gas units at its Potrero plant once the $15 million contract, which requires the plant to maintain the reliability of the power grid, is pulled by California Independent System Operator (Cal-ISO). Lauter also said Mirant’s redevelopment of the site for commercial use would still happen if the board decides a retrofit of Mirant is a better deal than building city-owned power plants.

As of the Guardian‘s deadline, no sources could provide any solid numbers on what a retrofit would cost and if pollution would be more, less, or equal to what the city anticipates from the peakers. But, Lauter told us, "The cost is considerably less than the cost of the peakers."

The contract with Cal-ISO could mean that the costs of retrofitting the diesels would be passed on to ratepayers. As for the pollution, Lauter said it’s not an easy answer and depends on how often the units have to run: "It’s not exactly correct to say they’d be less polluting, and it’s not exactly correct to say they’d be more polluting."

Barbara Hale, SFPUC’s assistant general manager of power, agreed there are still many uncertainties about retrofitting Mirant, including permits for the plant, restraints on how much it could operate, exactly how much it would pollute, and if it would even meet Cal-ISO’s demand for 150 megawatts of in-city generation. "I’m told by engineers that when generators go through a retrofit, often their megawatt capacity goes down," Hale told us. Each Mirant diesel unit currently puts out 52 megawatts.

As for other options Newsom requested from the agency, Hale said they’re exploring how to get more demand response and efficiency from the existing grid.

That suggestion comes from Pacific Gas and Electric Co., which actively opposes the city’s peaker plan and sent representatives to meet with Newsom’s staff May 5 (while Newsom was in Israel with Lauter, who said the two did not discuss Mirant or the peakers while overseas), shortly before he sought the delay.

PG&E spokesperson Darlene Chiu confirmed the contents of the proposal as presented to the mayor’s staff, which includes ways to eke more from the grid as well as a new transmission line between two substations.

Tony Winnicker, spokesperson from the PUC, said of PG&E’s plan: "We absolutely support each of these projects, think they’re long overdue improvements to the city’s transmission reliability, and hope they are committing the necessary funding to begin and complete them."

He added that there is little in the plan that differs from a past PG&E proposal that Cal-ISO rejected — except the new transmission line. But, he said, its target completion date of 2012-13 was "very ambitious, given that they haven’t even started the permitting."

PG&E’s Chiu, a former spokesperson for Mayor Newsom, didn’t respond to a question about the time frame for such a project, nor did she comment on whether PG&E considers the city’s ownership of the peakers a threat to its jurisdiction.

She didn’t have to. While City Hall scrambled to come up with an alternative that hasn’t been vetted during the last eight years of community meetings, city studies, and negotiations, PG&E was telling its shareholders that the threat of public power is alive and well.

At the May 14 annual meeting of PG&E investors, held at the San Ramon Conference Center, CEO Peter Darbee assured the assembled, "I, too, am concerned about municipalization and community choice aggregation."

He was responding to a criticism from an employee and member of Engineers and Scientists of California Local 20, who said PG&E shouldn’t be contracting outside the company because it created an experienced proxy workforce ripe for employment by another entity, like a municipality, that would be a threat to PG&E’s jurisdiction.

In responding, Darbee recalled the recent efforts in Yolo County, where the county attempted to defect from PG&E and join the Sacramento Municipal Utility District. "Peter, it’s half-time, your team is down, you better get directly involved with this," he said of the potential loss of 70,000 customers. The company mustered 1,000 employees to volunteer their time, walking from house to house and knocking on doors, prior to the November 2006 vote. "I was one of them," he said. "That vote went overwhelmingly in favor of PG&E."

Beyond knocking on doors, PG&E dropped $11 million on the campaign, outspending the competition 10 to 1.

But Darbee said it was a real victory in a state like California. "There’s always been in the water a desire for public power," he said, adding that 30 percent to 40 percent of the population approves of municipally-owned utilities.

Customer service, Darbee went on to say, is the best defense against threats to PG&E. And for the past two years, PG&E’s corporate strategy has been focused on that. To that end, its ranking in an annual JD Power customer satisfaction survey rose from 51 to 43 last year for the residential sector, and from 46 to a lofty second place for business customers.

But the JD Power survey also ranks municipal utilities, and 2007 results show PG&E was outpaced by three municipalities — the Salt River Project, the Los Angeles Department of Water and Power, and the Sacramento Municipal Utility District, which also took the highest ranking in the nation. *

Disclosure: Amanda Witherell owns 14 shares of PG&E Co. common stock.

We do

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› steve@sfbg.com

Less than two hours after the California Supreme Court announced its 4–3 decision legalizing same-sex marriage, San Francisco City Hall filled with smiling couples and local politicians of various ideological stripes to celebrate the city’s central role in achieving the most significant civil rights advance in a generation.

The case began four years ago in San Francisco when Mayor Gavin Newsom decided to have the city issue marriage licenses to gay and lesbian couples. City Attorney Dennis Herrera and his legal team built the voluminous legal case that won an improbable victory in a court dominated 6 to 1 by Republican appointees.

"In light of the fundamental nature of the substantive rights embodied in the right to marry — and the central importance to an individual’s opportunity to live a happy, meaningful, and satisfying life as a full member of society — the California Constitution properly must be interpreted to guarantee this basic civil right to all individuals and couples, without regard to their sexual orientation," Chief Justice Ronald George wrote in the majority opinion.

Newsom cut short a trip to Chicago to return home and make calls to the national media and join Herrera’s press conference, where hundreds of couples who got married in San Francisco City Hall were assembled on the City Hall staircase as a backdrop to the jubilant parade of speakers that took the podium.

"What a wonderful, wonderful day," a beaming Herrera told the assembled crowd, adding, "California has taken a tremendous leap forward."

Some speakers (as well as the next day’s coverage in the San Francisco Chronicle) emphasized the potential of the issue to embolden conservatives and the possibility that a November ballot measure could nullify the decision by, as a prepared statement by Rep. Nancy Pelosi put it, "writing discrimination into the state constitution."

But for most San Franciscans, it was a day to celebrate a significant victory. Herrera praised "the courageousness of the California Supreme Court." He also commended Deputy City Attorney Terry Stewart, who argued the case, legal partners such as the National Center for Lesbian Rights, the eight other California cities that supported San Francisco’s position with amicus briefs — and Newsom, who clearly soaked up the adulation and gave a fiery speech that could easily become a campaign commercial in his expected run for governor.

"I can’t express enough how proud I am to be a San Franciscan," Newsom said, later saying of the decision, "It’s about human dignity. It’s about human rights. It’s about time."

Newsom also emphasized that "this day is about real people and their lives."

Among those people, standing on the stairs of City Hall, was Emily Drennen, a current candidate for the Democratic County Central Committee and the District 11 seat on the Board of Supervisors, who was the 326th couple to get married in San Francisco, taking her vows with partner Linda Susan Ulrich.

"When it got nullified, something was taken away from us. It really felt like that," Drennen told the Guardian, adding that she was thrilled and relieved by the ruling. "I was just holding my breath this whole time, expecting the worst but hoping for the best."

Herrera spokesperson Matt Dorsey, who is gay, was similarly tense before the ruling, knowing how much work had gone into it but worried the court might not overcome its ideological predisposition to oppose gay marriage.

"For everyone who worked on this, it was the case of their lives," Dorsey told us. "Politically and legally, there was so much work that this office did that I’m so proud of, and I hope people understand that." *

Go directly to court

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› news@sfbg.com

After nearly four hours of debate punctuated by boos and cheers from an impassioned audience, the San Francisco Board of Supervisors’ Budget and Finance Committee decided May 14 not to release $500,000 in reserve funds for Mayor Gavin Newsom’s proposed Community Justice Center.

The project, modeled after courts in Manhattan and Brooklyn and touted by Newsom for years, would be a tribunal for bringing in quality-of-life crime violators — usually the homeless or other street denizens — immediately after they’re cited and, in theory, getting them right into social services or community service work.

But the 3-2 committee vote against the project was based on this year’s big budget shortfall, Newsom’s opposition to other expenditures outside the normal budget process, lack of demonstrable savings or benefits from the program, and the fact that the social services it claims to offer are being cut.

"Let’s be clear here. We’re having this discussion while we’re contemputf8g some of the most draconian service reductions, at least that I’ve seen here, in seven-and-a-half years," Sup. Chris Daly said at the hearing.

He cited $3.3 million in cuts to senior services, $17 million in cuts to the Department of Health, closure of the homeless service center Buster’s Place, and a reduction in mental health services as examples.

In early May, Newsom vetoed an initiative sponsored by Sup. Ross Mirkarimi that would allocate $76,000 to record and post the proceedings of various municipal boards and commissions on the city’s Web site. The board voted 8-3 to successfully override that veto on May 13.

At the CJC hearing, Daly read a letter from Newsom dated April 30 saying he wanted to hold out on new spending initiatives like the Mirkarimi measure until new programs could be considered in the larger context of the 2008-09 fiscal year budget deliberations that begin in June.

"This is his veto message based on the dire budget situation," Daly said. "These words are directly applicable to the item in front of us."

Sup. Bevan Dufty and other Newsom allies on the board are expected to try to overcome the committee votes by introducing the proposal to the full board. Dufty told us, "I recognize there are members of the committee who aren’t comfortable with it, but I asked that the full board weigh in because I felt like everybody on the board ought to have a decision whether this moves forward or not."

Newsom Press Secretary Nathan Ballard blasted the committee vote, telling the Guardian, "It was cowardly for Chris Daly and his colleagues to vote against the Community Justice Center. They lack the courage to support this program that will help get low-level offenders back on the right track. Why? Their fear outweighs their capacity to care: they fear the idea of agreeing with Gavin Newsom more than they care about people in the Tenderloin who are suffering and need help. They ought to be ashamed of themselves."

But critics say the proposal is rife with problems. Peter Masiak, lead tenant organizer for the Central City SRO Collaborative, said the CJC plans did not call for enough staff members to handle all the cases on its own. The staff would therefore have to refer people to service providers like his group, whose budgets are on the chopping block.

"It does nothing if you’re creating an expensive mechanism for referring people to services you’re cutting," he said at the hearing. "I’m concerned I’m going to have to tell my clients the only way they can get services is to stand on the street and smoke crack."

Deborah Newman of the City Budget Analyst’s Office said the CJC would cost approximately $2.9 million annually to operate. The $500,000 discussed May 14 originally was set aside for two holding cells — one for men and one for women — subleasing the court space, tenant improvements to the space, and social services.

Newman said that after tenant improvements, social services salaries, new cells, and subleases, new expenses would cost the city $2.4 million, even with a $1 million federal earmark supplied by Speaker Nancy Pelosi. CJC supporters said savings produced by the court would justify these costs.

San Francisco Superior Court Commissioner Ron Albers said San Francisco has used problem-solving and collaborative courts for more than a decade, citing the award-winning behavioral health court for mentally ill offenders as one example of how these courts can stop the courts’ current revolving-door system.

"This is a difficult budget time, but we can target high-end users of expensive programs and save money," he said.

Albers added that under the current system, people charged with misdemeanors must wait two days for an arraignment, while those charged with felonies wait three days. At $152 per day per bed, taxpayers spend thousands of dollars a year on people whose charges are ultimately dropped.

A representative of the mayor’s budget office told the hearing that the CJC could also save money by eliminating the need to build more jail pods, thus lowering the sheriff’s budget. But Harvey Rose of the Budget Analysts’ office said the CJC has failed to document any actual savings.

"Savings means that a budget is going to be cut, and we have seen no cuts in any budget," Rose said.

Some Tenderloin residents said that because crime is so rampant in their neighborhood, it would unacceptable for the city not to take action in some way, and they urged approval of the CJC. Yet others object to the double standard of creating what they dub the "poverty court." *

Peakers delayed 2 weeks

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At the May 20 meeting, the Board of Supervisors agreed to a two-week hold on a plan to build two combustion turbine “peaker” power plants in the city. (Also known as the CTs.) The delayed legislation was also amended by Sup. Sean Elsbernd, who injected a 90-day due diligence period into the process.

Translation: if the Board, two weeks from now, passes the plan to build the peakers, a 90-day due diligence period kicks in. And if, during that period, the SFPUC general manager finds that another plan meets a certain list of criteria (which are included in the amendments and can be read here), then he can kill the city’s peaker plan and put forth the alternative. The alternative would still have to go through all the permitting and planning processes that the city’s peakers have already weathered, but the city’s peaker project would be dead.

Elsbernd’s amendments contain a list of qualifications that any alternative must meet, including an agreement that Mirant’s Unit 3 would still close (so the company can redevelop that site for some other profitable commercial use), and that any other “proposed project” would improve environmental quality and city control over energy supplies.

The language here is pretty careful: nowhere does it say that a new proposal must be as clean, if not cleaner, than the city’s peakers. Nor does it say it must be owned by the city.

Elsbernd asked for the two week continuance when introducing the amendments, to give the Board more time to get comfortable with them and “to make sure that the CTs are either the right thing or the wrong thing.”

Peskin, describing the motion before them, jabbed that the extra time was for any possible alternative “proposed by PG&E and/or Mirant.”

To which Elsbernd took issue, “Actually, I would disagree with your statement,” he said. “This is not a proposal from PG&E.”

After the item passed, with Sup. Chris Daly citing it as a delay tactic and dissenting, Elsbernd told the Guardian the amendments did not come from the Mayor’s staff. “They came from my pretty little head,” he said. “I asked the city attorney to draft them for me.”

RFK Jr. and NRDC part ways on power plants in SF

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On May 12, Robert F. Kennedy Jr, founder of Waterkeeper, senior counsel for the Natural Resources Defense Council, and as big a wig as Al Gore in the environmental hall of fame, decided to weigh in on San Francisco’s plan to build two fossil fuel-burning power plants. He sent this letter to the Board of Supervisors, Mayor Gavin Newsom, the CPUC’s Mike Peevey, and Gov. Arnold Schwarzenegger, urging them to back away from a future hooked to fossil fuels.

“Given the size and impact of this project, I respectfully urge you to listen to the public interest and environmental groups such as Sierra Club and SPUR that are calling for an independent study to determine whether these power plants are truly required in 2008,” Kennedy wrote.

But, lest you get confused about how emphatically concerned an eco-heavy-hitter like NRDC is about San Francisco’s energy future, the group sent another letter three days later saying they don’t have a position on the controversial issue, and don’t plan on taking one. That letter was signed by Ralph Cavanagh, who handles energy issues for NRDC and has been a champion of decoupling — which utility companies love because it separates the profit-making from the energy-consuming, thus ensuring they still take home a pretty penny while encouraging customers to cut back on energy use.

Craig Noble, spokesperson for NRDC, explained the discrepancy by email, writing, “Bobby wasn’t representing NRDC in his official capacity when he took a position on that particular project. It was unclear to some people that he was speaking as a private citizen, so NRDC released a letter of clarification – we have not looked at this project and therefore have not taken a position.” He also wrote they probably wouldn’t, as they tend to focus on broader policy issues rather than individual projects.

A number of environmental and social justice groups have also allied against San Francisco’s plan to build the peakers, strongly urging city officials to step it up with renewables rather than natural gas, and sending letters with their eco-group stamps all over them. They also met with Newsom to express alternatives to the peakers, according to Josh Arce of Brightline Defense, one of the leaders of the environmental front.

But it wasn’t until Newsom’s staff met with PG&E, the quiet giant of the anti-peaker movement, that the Mayor put the brakes on the power plant’s approval process. After that meeting, Newsom intervened last week at the Board of Supervisors, temporarily pausing the approval process of the peaker plan while he called for the exploration of other alternatives.

Yup, Newsom buckles to PG&E on Mirant plant

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By Bruce B. Brugmann

When PG&E spits, City Hall swims. Mayor Newsom to Potrero Hill: Drop dead.

For more than 40 years, the Guardian has watched every San Francisco mayor without exception buckle to PG&E and help the giant utility keep its illegal private power monopoly intact in San Francisco.

The latest to buckle, this time more openly and ignominiously than most, appears to be Mayor Gavin Newsom, who is revving up his campaign for governor and wants to keep PG&E nice and cuddly by his side.
Here’s the story as it leaked from City Hall this weekend. For 40 years, the people of Potrero Hill and the southeastern part of the city have fought to close down the fossil-burning Mirant power plant at the bottom of Potrero Hill. Newsom personally supported the plan to close Mirant and replace it with city-owned peaker power plants. And his Public Utilities Commission has spent years developing a plan to do just this. (Alas, the peakers were the PUC’s only alternative and the PUC demanded that they be sited at the Mirant plant, amongst the long suffering Potrero Hillians, never a serious thought to anywhere more uptown. This rightly agitated the environmental justice community, but that is another story.)

PG&E has been fighting the peakers because they would be PG&Es worst nightmare: a major public power beachhead in San Francisco. As the historic vote neared last Tuesday at the Board of Supervisors, PG&E counted the votes and found it did not have a 6-5 majority. And so it did what it has historically done to protect its illegal private power monopoly in San Francisco, It rolled out its heavy artillery, went directly to the mayor, and started pounding away on a weak and wavering Newsom.

This time, as reported in the Bruce and Tim Redmond blogs, seven lobbyists (you heard me, seven) called on him in his City Hall office and told him to kill the peaker proposal, or else, and offered him a blank check to do a Mirant retrofit. Newsom buckled.

PG&E got Newsom to ask for an extension on the vote, which he got for a week, and he lamely announced that he would be looking for some kind of last minute alternative to the peakers PG&E so dreads. The alternative appears to be the PG&E alternative: junk the peakers and do a retrofit of the existing Mirant plant. This would subject the Potrero Hill neighborhood, and the mushrooming Mission Bay population, to the ruinous plant for the duration.

As a City Hall source put it to me, “This is the dumbest of all options, retrofitting the Mirant plant so that it’s a little cleaner, but still nowhere near as clean as the peakers, way less efficient, and a waste of land to boot. It is the mayor’s choice to avoid upsetting PG&E.” The vote is scheduled again for this Tuesday, but it may be postponed again if neither PG&E nor the peaker supporters don’t have the votes.

Hey, remember Dick Sklar, the former PUC executive director who Newsom recently appointed to the PUC to peddle the mayor’s PG&E policies (and remember Sup. Chris Daly, who cast the deciding vote for Sklar’s confirmation.and said that Sklar was “neutral” on PG&E.) Sklar was right in there as expected, pumping away for PG&E and helping facilitate the latest mayoral cavein to PG&E. As the Guardian has maintained for years, if people at City Hall want to work for PG&E, they should be dispatched to PG&E so they can work for the utility directly, not work for PG&E on the city payroll.

The only real way out of this PG&E uber alles mess is for the people to kick PG&E out of City Hall and bring real public power to the city. As Guardian readers know since 1969, San Francisco is the only city in the U.S. that is required by federal law to be a public power city, because of the Raker Act that allowed the city to dam Hetch Hetchy Valley in Yosemite National Park for the city’s water and power supply.

The best emerging plan is the public power initiative that Sups. Ross Mirkarimi, who opposes the peakers, and Aaron Peskin, who supports the peakers, are working on with public power forces to put on the fall ballot. Click here to read more about the initiative.

Question: Will Hearst corporate allow its reporters and editors to cover the PG@E/Raker Act scandal and the real public power story. Stay tuned for details and how the public can provide input and support.

To repeat: When PG&E spits, City Hall swims. Mayor Newsom to Potrero Hill: Drop dead.

P.S. Deadline summary: The vote lineup at blogtime, according to our check and City Hall sources. For: Peskin, Dufty, Maxwell, McGoldrick. Against: Mirkarimi, Ammiano, Daly, Alioto-Pier. Swinging away: Chu, Elsbernd, Sandoval. Prediction: The vote will be postponed again, probably until July or so, to give the PUC time to study the PG@E alternative put forth by Newsom. So PG@E may win this skirmish, but obviously the battle for public power and to enforce the Raker Act goes on.

B3, who watches the fumes from the Potrero plant every day from my office window at 135 Mississippi Street, courtesy of PG&E and Hearst journalism