Board of Supervisors

Fisher fails

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› news@sfbg.com

The crowd at El Rio, the Mission Street dive bar, was reaching capacity election night when Sup. Aaron Peskin climbed onto an unstable bar stool to announce a political victory that had been very much in doubt just a few weeks earlier.

“They said it could not be done. We drove a Hummer over Don Fisher!” Peskin said, referring to the Republican billionaire and downtown power broker who funded the fight against progressives in this election, as he has done repeatedly over the years.

Indeed, the big story of this election was the improbable triumph of environmentalists over car culture and grassroots activism over downtown’s money. The battleground was Muni reform measure Proposition A, which won handily, and the pro-parking Proposition H, which went down to resounding defeat.

It was, in some ways, exactly the sort of broad-based coalition building and community organizing that the progressives will need to help set the city’s agenda going into a year when control of the Board of Supervisors is up for grabs.

“I just felt it at El Rio — wow, people were jazzed,” said campaign consultant Jim Stearns, who directed the Yes on A–No on H campaign. “We brought in new energy and new people who will be the foot soldiers and field managers for the progressive supervisorial candidates in 2008.”

Maintaining the momentum won’t be simple: many of the people in El Rio that night will be on opposite sides next June, when Assemblymember Mark Leno challenges incumbent state senator Carole Migden, and they’ll have to put aside their differences just a few months later.

Downtown, while soundly defeated this time around, isn’t going to give up. And some parts of the winning coalition — Sup. Sean Elsbernd, for example, who helped with west-side voters, and the San Francisco Planning and Urban Research Association (SPUR), which helped bring more moderate voters into the fold — probably aren’t going to be on the progressive side in Nov. 2008.

But there’s no doubt the Yes on A–No on H campaign was a watershed moment. “I’ve never seen this kind of coalition between labor and environmentalists in the city,” Robert Haaland, a union activist who ran the field campaign, told us. “New relationships were built.”

During his victory speech, Peskin singled out the labor movement for high praise: “This would not have happened if it were not for our incredible brothers and sisters in the house of labor.” He also thanked the San Francisco Bicycle Coalition and environmental groups — and agreed that the labor-environmental alliance was significant and unique. “This is the first time in the seven years that I’ve been on the Board of Supervisors where I have seen a true coalition between labor and the environmentalists,” he said.

It’s not clear what we can expect in 2008 from Mayor Gavin Newsom, whom the latest results show finishing with more than 70 percent of the vote, better than some of his own consultants predicted. Newsom endorsed Yes on A–No on H, but he did nothing to support those stands, instead focusing on defeating Question Time proposition E, which narrowly failed.

Will Newsom continue to pay fealty to the biggest losers of this election, the San Francisco Chamber of Commerce and Fisher, who funded No on A–Yes on H and became this year’s antienvironmentalism poster child?

Or will Newsom — who has said little of substance about his plans for 2008 — step to the front of the transit-first parade and try to drive a wedge in the labor-environmentalist-progressive coalition that achieved this election’s biggest come-from-behind victory?

 

MONEY AND PEOPLE

The Yes on A–No on H campaign was a striking combination of good ground work by volunteers committed to alternative transportation and solid fundraising that allowed for many mailers and a sophisticated voter identification, outreach, and turnout effort.

“We worked the Muni a lot in the last days, particularly in areas where we thought there were a lot of young people,” Stearns said.

Polls commissioned by the Yes on A–No on H campaign showed that Prop. H, which would have deregulated parking and attracted more cars downtown, was winning by 54–39 percent as of Aug. 30. By Oct. 25 that lead had narrowed to 40–41 percent, a trend that gave the campaign hope that a big final push would produce a solid margin of victory, particularly given that more detailed polling questions showed support dropped fast once voters were educated on the real potential impacts of the measure.

Prop. A was much closer throughout the race, particularly given that both daily newspapers and left-leaning Sups. Gerardo Sandoval and Jake McGoldrick opposed it and even the Green Party couldn’t reach consensus on an endorsement.

“This could have meant a lot of arrows from a lot of directions,” Stearns said.

Campaign leaders Peskin, Haaland, and Stearns were so worried about Prop. A being defeated — and about not having the money for a big final telephone canvas in the final days — that they decided to make last-minute appeals for money.

“I’ve been a nervous wreck about this,” Haaland said of the campaign on election night.

On the evening of Nov. 3, he placed an anxious call to Peskin, suggesting that the latter make an appeal for money to Clint Reilly, a real estate investor who has often helped fund progressive efforts.

Peskin agreed and asked Stearns to help him make the pitch — and the two men drove to Reilly’s Seacliff home at 10 p.m. on Nov. 3.

“Prop. A just struck me as a nice, decent, positive message,” Reilly told the Guardian at the election night party, which he attended with his wife, Janet Reilly, a former State Assembly candidate.

Sharing Peskin and the campaign’s concerns that Prop. A was in trouble, Reilly cut a check for $15,000, which was enough to keep the phone banks going and help give the measure a narrow margin of victory.

But the money alone wasn’t enough for this mostly volunteer-run campaign.

“The push we made on the last five days of this campaign was just incredible,” campaign manager Natasha Marsh told us. “We had close to 500 volunteers on that last four days.”

 

A DIFFERENT CITY

The campaign also developed an extensive list of potentially supportive absentee voters — fully half of them Chinese speaking — who were then contacted with targeted messages.

Rosa Vong-Chie, who coordinated the voter outreach effort, said the messages about climate change, clean air, and Fisher’s involvement worked well with English-language voters. Chinese speakers didn’t care as much about Fisher, so campaign workers talked to them about improving Muni service.

The absentee-voter drive (and the push among Chinese-language voters) was unusual for a progressive campaign — and the fact that Prop. A did so well among typically conservative absentee voters was a testament to the effort’s effectiveness.

Elsbernd, one of the most conservative members of the Board of Supervisors, crossed many of his political allies to support the Yes on A–No on H campaign, and his involvement helped win over west-side voters and demonstrated that environmentalism and support for transit shouldn’t be just progressive positions.

“It’s great for public transit riders. It reinforces that this is a transit-first city…. Public transit is not an east-side issue,” Elsbernd told us, adding that the election was also a victory for political honesty. “It shows that people saw through the campaign rhetoric.”

The Fisher-funded rhetoric relied on simplistic appeals to drivers’ desire for more parking and used deceptive antigovernment appeals, trying to capitalize on what he clearly thought was widespread disdain for the Board of Supervisors.

“The attacks against the board didn’t work,” Peskin said, noting that in election after election the supervisors have shown that they “have much longer coattails than the chief executive of San Francisco.”

“I think it’s a pretty thorough rejection of Don Fisher’s agenda. He was not able to fool the voters,” said Tom Radulovich, director of Livable City and a BART director, who was active in the campaign. “This was about transit and what’s best for downtown. We should be very proud as a city.”

 

NOW WHAT?

The day after the El Rio party, at the monthly Car Free Happy Hour — a gathering of alternative-transportation activists and planners — there was excited talk of the previous night’s electoral triumph, but it quickly turned to the question of what’s next.

After all, progressives proved they could win in a low-turnout election against a poll-tested, attractive-sounding, and well-funded campaign. And given that the number of signatures needed to qualify an initiative for the ballot is a percentage of the voters in the last mayor’s race, it suddenly seems easy to meet that standard.

Some of the ideas floated by the group include banning cars on a portion of Market Street, having voters endorse bus rapid-transit plans and other mechanisms for moving transit quicker, levying taxes on parking and other auto-related activities to better fund Muni, and exempting bike, transit, and pedestrian projects from detailed and costly environmental studies (known as level of service, or LOS, reform to transportation planners).

“There’s a lot of potential to move this forward,” Haaland said later. “We can talk about creating a real transit-justice coalition.”

There’s also a downside to the low turnout: downtown can more easily place measures on the ballot or launch recall drives against sitting supervisors, which would force progressives to spend time and money playing defense.

But overall, for an election that could have been a total train wreck for progressives, the high-profile victory and the new coalitions suggest that the movement is alive and well, despite Newsom’s reelection.

Editor’s Notes

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› tredmond@sfbg.com

I called labor activist Robert Haaland a few days after the election to chat about what the victory of Proposition A meant, and I wound up interrupting his vacation in Maui. I shouldn’t feel so bad — anyone who takes his cell phone on vacation and returns calls from political reporters has nobody to blame but himself … but still, I wanted to get off the phone quickly and let him get back to his sun and sand and Bikram yoga.

It wasn’t happening. Even from Hawaii, even with all of us in a celebratory mood over the way the progressives stomped Don Fisher, Haaland had a somber note to share.

"Queer progressives were missing in action on Props. A and H," he told me. "I think they were spending all their time fighting over Mark and Carole."

What he meant, of course, was that people active in the LGBT community spent their energy these past two months in organizing (and bickering over) the Harvey Milk Lesbian, Gay, Bisexual, Transgender Democratic Club’s endorsement for the June 2008 State Senate race. The two candidates, Assemblymember Mark Leno and incumbent Carole Migden, are both, generally speaking, progressive politicians. They both have active, loyal groups of LGBT supporters, and they have both poured considerable effort into getting the Milk club endorsement, which puts a stamp of progressive legitimacy on the winner.

But if you’ve followed the whole mess on the www.sfbg.com politics blog, you know it’s been nasty and bitter. The meeting at which the club decided (or maybe didn’t decide) when to schedule its formal endorsement vote was a mess of procedural questions, shouting, alleged violations of Robert’s Rules of Order, utter confusion at the end, and recriminations afterward. A lot of people who used to like one another are still steaming about it, using epithets we typically save for the Republicans in Washington DC.

I’ve said this before, and I’m going to do it again, as loud as I can:

Knock it off. All of you.

Look: Leno is running against Migden. You can think that’s a bad and divisive political idea or you can think that he has every right to seek office in a democracy and hold an incumbent accountable. It doesn’t matter; the race is on. Next June we’ll all be voting for one or the other.

And five months later control of the San Francisco Board of Supervisors will be in the balance, and we will desperately need a united progressive front to make sure that Gavin Newsom’s allies don’t win. We can’t afford to be mad at one another. We can’t afford an ugly progressive split. We can’t afford to let the Leno-Migden race devolve into personal attacks. We can’t be demonizing one another.

Don’t start with your he-did-it-first-she-did-it-first stuff either. Nobody’s completely innocent here; both sides have said and done things that have inflamed the situation.

I’m an idealist and an optimist; that’s how I survive. I actually believe that this city, and this movement, is mature enough politically to have a race like Migden vs. Leno without leaving lasting scars that will hurt all of our causes for years to come.

But when I mentioned to a downtown operative the other day that I was worried that people like Debra Walker and Howard Wallace will wind up hating each other, he told me gleefully that "Don Fisher would happily pay money to see that."

Think about it.

The Yes on A victory

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Lots of celebration at the Yes on A/No on H party at El Rio. Robert Haaland, who ran the field campaign, was justifiably exuberant — the passage of A and defeat of H, which appears all but certain, was a demonstration that even in a low-turnout election, progressives can prevail. The labor-and-environmental-backed campaign did an extensive absentee-voter effort, extensive get-out-the-vote and effective mail. It helped that Sup. Aaron Peskin helped raise more than $400,000 for the battle.

Peskin said the results were a great victory for the battle against global warming, which is true — but it was also a victory for the president of the board — and for the idea that policy in San Francisco remains centered at the Board of Supervisors.

The polls that political consultants rely on show that the board’s popularity is low compared to the mayor — but on the ground, where it mattered, that wasn’t the case tonight.

More from City Hall

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Gavin Newsom has obviously won re-election, although we don’t know his total yet. But the other winners tonight are Aaron Peskin and Chris Daly.

Peskin’s Prop. A is an almost certain winner — it’s ahead 51-49 in the absentees and that’s the most conservative of the votes, so it will win handily. His Prop K, the measure limit new billboards, is winning, too, overwhelmingly (60-40).

What this means is that Peskin defeated a rather vicious campaign by Don Fisher to smear him and the Board of Supervisors; in fact, the attacks on the Board didn’t seem to work. And the measure Newsom and his allies really wanted to stop — Daly’s Question Time — is behind by only two points, and will more than likely win. Again, the Newsom campaign was an attack on the supervisors, particularly Daly — and it doesn’t appear to have worked.

Results — big surprise!

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Early results are in, and the mayor’s race is no real surprise — Gavin Newsom’s at 77 percent, which is just the absentees, and that will drop. But the big news: In the very conservative absentees, Prop. A is just slightly behind — and Prop. H is actually LOSING. That’s over, and it’s over big — in the most important race for progressives, it looks like a clear and convincing victory. You can take this one to the bank — Don Fisher has lost, big, and Prop A, the competing transit measure, has won.

The other big surprise: Prop. E, the measure that wll require — and I said WILL require — Gavin Newsom to appear before the Board of Supervisors for “question time” looks like it’s going to pass. So Newsom wins — but he’s going to have to answer to his critics.

Bechtel and Newsom: a fine pair

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What do Newsom and Bechtel have in common?

They both oppose Prop. E, which requires the next Mayor of San Francisco to appear before the Board of Supervisors for public policy discussions.

Up until now, Newsom has been framing Prop. E as work of Sup. Chris Daly that will only lead to “political theater.”

Then, boom, four days before the election, Bechtel goes and plonks down $5,000 to defeat Prop. E, on top of the last-0minute plonking down of $10,000 from Republican Warren Hellman, $20,000 from the San Franciscan Association of Realtors, $25,000 from the Committee on Jobs Government Reform Fund, and $1,000 from socialite Dede Wilsey.

Looking at all these “No on E” money bags, it’s hard not to conclude that what Newsom’s No on E “Let’s Really Work Together Coalition” is really working together on is avoiding having to publicly debate tough issues, like the lack of affordable housing, or the rising tide of violence, or mental health issues among the homeless–issues that folks who aren’t millionaires and realtors would like to see their elected representatives hash out with the Mayor, but that rich folks can chat privately with the Mayor over fund raising dinners.

What’s bizarre about all this is that when you actually get Newsom talking, he seems perfectly capable of carrying out a well-argued and coherent debate.

So why don’t his handlers want their boy to be drawn into public debates? Could it be that they understand that once you get drawn into an argument, and express your opinion, people will take sides? That’s it safer to maintain a remote, inaccessible position, while you prepare for the next big thing, like governor, senator, or President?

But this is San Francisco, where people thrive on debate. So here’s hoping that the next Mayor of San Francisco spares us the fake question time and does as voters requested last fall: show up before the Board and answer their gosh darn questions.

Endorsements: Local offices

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Mayor

1. QUINTIN MECKE


2. AHIMSA PORTER SUMCHAI


3. CHICKEN JOHN RINALDI


Let us be perfectly clear: none of the people we are endorsing has any real chance of getting elected mayor of San Francisco. Gavin Newsom is going to win a second term; we know that, he knows that, and whatever they may say on the campaign trail, all of the candidates running against him know that.

It’s a sad state of affairs: San Francisco has been, at best, wallowing helplessly in problems under Newsom, and in many cases things have gotten worse. The murder rate is soaring; young people, particularly African Americans, are getting shot down on the streets in alarming numbers. The mayor has opposed almost every credible effort to do something about it — he fought against putting cops on foot patrol in the most violent areas, he opposed the creation of a violence-prevention fund and blocked implementation of a community policing plan, and he’s allowed the thugs in the Police Officers Association to set policy for a police department that desperately lacks leadership. The public transportation system is in meltdown. The housing crisis is out of control; 90 percent of the people who work in San Francisco can’t afford to buy a house here, and many of them can’t afford to rent either. Meanwhile, the city is allowing developers and speculators to build thousands of new luxury condos, which are turning San Francisco into a bedroom community for Silicon Valley. Newsom only recently seems to have noticed that public housing is in shambles and that the commission he appoints to oversee it has been ignoring the problem.

The mayor is moving aggressively to privatize public services (including turning over the city’s broadband infrastructure to private companies), and he’s done little to promote public power. He’s cracking down on the homeless without offering adequate alternatives to long-term housing. Much of the time, he seems disconnected, out of touch with the city; he won’t show up and take questions from the Board of Supervisors and won’t even comply with the Sunshine Ordinance and release his daily calendar so the voters can see what he’s doing all day. He rarely appears in public, unless his handlers have complete control of the situation.

In fact, almost all of the significant policy discussions and initiatives that are happening in San Francisco today (including the universal health plan that Newsom likes to take credit for) have come from the Board of Supervisors.

There are good things to say about Newsom. We were among the huge number of San Franciscans who applauded when Newsom directed the city to start issuing marriage licenses to same-sex couples. He did more than make a political statement, more than allow hundreds of couples to get married; he put one of the leading civil rights issues of our time on the center stage of the political agenda. And he made all of us proud to be San Franciscans. We were happy to see him stand up against the big international hotel chains and support striking hotel workers. In some ways, he’s brought modern management to the city — the 311 system, which connects callers directly to the proper city services, actually works, and sometimes works well.

But San Francisco is one of the world’s great cities, and it’s in serious trouble, and the person in charge isn’t offering much in the way of leadership — and he certainly isn’t offering the sort of progressive agenda that this city ought to be showing the nation. Newsom doesn’t deserve another term.

And yet the progressives in the city, who have come so very far since the return of district elections in 2000, were unable to field an electable candidate. We could spend pages dissecting why that happened. Matt Gonzalez should have made a decision much earlier in the process. Ross Mirkarimi should have run. The entire movement needs to be better about developing and promoting candidates for citywide office. But right now the issue on the table is this: who should the progressives, the independents, the neighborhood activists, the tenants, the people who have been dispossessed during the Newsom years, who don’t like the prospect of this mayor waltzing into another term atop a landslide majority, vote for Nov. 6?

We aren’t in the habit of endorsing for a big-league elective office people who haven’t put in their time in the minors. And Newsom’s challengers are not exactly a varsity squad. But many of them are raising important issues that Newsom has ignored, and we commend them all for taking on the difficult task of mounting a campaign against a mayor who most observers say is unbeatable. Our endorsements are, to be honest, protest votes — but we hope they’ll send a message to Newsom that there are issues, communities, and ideas he can’t just ignore after his coronation. The smaller the mayor’s margin of victory and the more votes the candidates who are pushing the progressive agenda collect, the less of a mandate Newsom will take into a second term that could be a truly frightening time.

Quintin Mecke has the strongest progressive credentials and by far the best overall approach to issues facing the city. He’s never held elective office (and had never run before), but he’s been involved in local politics for a decade. A volunteer with Tom Ammiano’s campaigns for supervisor and mayor and with Gonzalez’s mayoral campaign, Mecke went on to serve on the civil grand jury and the task force on redistricting, where he helped stave off attempts to chop up progressive supervisorial districts. He helped organize the South of Market Anti-Displacement Committee and now runs the Safety Network Partnership, a nonprofit that works to fight crime and violence in the city’s neighborhoods. He’s on the committee that monitors the city’s homeless shelters.

Mecke told the Guardian that "it’s hard to find an innovative, non-PR-type initiative out of the Mayor’s Office." He supports community policing, a progressive gross-receipts tax that would exempt small businesses, and a moratorium on market-rate housing until the city can determine how it will build enough affordable units. He complains that there’s no standard of care in Newsom’s homeless shelters. He opposes the privatization of public programs and resources.

Mecke tends a bit to bureaucratspeak; he talked about "horizontal conversations" instead of taking some issues head-on. And we’re concerned that he didn’t seem serious or organized enough to raise the modest amount of money it would have taken to qualify for public financing and mount a more visible campaign. But he’s a solid candidate, and we’re happy to give him the nod.

Ahimsa Porter Sumchai is a remarkable success story, an African American woman who grew up in the housing projects and wound up graduating from UC San Francisco’s medical school. She’s running primarily on the issue of environmental justice for southeast San Francisco — and for years has been one of the loudest voices against the flawed Lennar Corp. redevelopment project at and the reuse plan for the contaminated Hunters Point Shipyard. Sumchai says the shipyard can never be cleaned up to a level that would be safe for housing, and she suggests that much of it should be used for parks and open space and possibly maritime and green-industry uses. She’s highly critical of the low levels of affordable housing in market-rate projects all over the city, arguing that the developers should be forced to provide as many as 25 percent of their units at below-market rates. Sumchai is a physician, and she talks like one; her scientific language and approach sometimes confuse people. She suggested that one of the main causes of the homicide rate in the city is mental illness. "You can medically address people who are violent," she told us, saying the first step is to properly diagnose and treat depression in men. "Just as we looked at AIDS as an epidemic," she said, "we should look at violence as an epidemic." Which is, at the very least, an interesting approach.

Sumchai has some innovative ideas, including a universal child-care program for the city, paid for with a "fat tax" on unhealthy food. She’s a strong supporter of public power and a longtime critic of Pacific Gas and Electric Co.

She can be abrasive and temperamental, but she’s talking about critical issues that almost everyone else is ignoring. She deserves support.

Chicken John Rinaldi is the political surprise of the season, an artist and showman who has managed a traveling circus, run a bar in the Mission, put on unusual performances of every kind — and somehow managed to be the only person running for mayor who could qualify for tens of thousands of dollars in public funding. On one level Rinaldi’s campaign is a joke — he told us repeatedly he has no idea what he’s doing, and that if by some wild chance he were elected, he would hire people like Mecke and Sumchai to run the city. He’s the Dada candidate, with his entire run something of a performance art piece.

But Rinaldi has a real constituency. He represents a dying breed in the city: the street artists, the writers, the poets, the unconventional thinkers with economically marginal lifestyles, who were once the heart and soul of San Francisco. It’s hard to pin him down on issues since he seems to disdain any policy talk, but in the end, the very fact that he’s running speaks to the pressure on artists and the lack of support the unconventional side of the art world gets in this increasingly expensive city.

Rinaldi is the protest candidate of all protest candidates, but he’s going to get a lot of votes from people who think San Francisco needs to stop driving some of its most valuable residents out of town — and if that leads to a more serious discussion about artist housing, affordable housing in general, arts funding, and the overall crackdown on fun under Newsom, then it’s worth giving Chicken John a place on the ticket.

There are several other candidates worthy of consideration. Josh Wolf, a video blogger, served 226 days in a federal prison rather than turn over to the authorities tape of a demonstration he was filming. It was a bold and courageous show of principle (anyone who’s ever done time knows that spending even a week, much less month after month, behind bars is no joke), and it speaks to his leadership and character. Wolf is talking about some key issues too: he’s a big supporter of municipal broadband and sees the Web as a place to promote more direct democracy in San Francisco.

Lonnie Holmes, a probation officer, has roots in the African American community and some credible ideas about violent crime. He favors extensive, direct intervention in at-risk communities and would fully fund recreation centers, after-school programs, and antiviolence education in elementary schools. He thinks a network of community resource centers in key neighborhoods could cut the crime rate in half. He’s a little conservative for our taste, but we like his energy, commitment, and ideas.

Harold Hoogasian, a third-generation florist, registered Republican, and small-business activist, is a self-proclaimed fiscal conservative and law-and-order guy who complains that the city budget has skyrocketed while services don’t seem to have improved. Yet somewhat to our surprise, he told us he supports the idea of a moratorium on market-rate housing and a ballot measure that would force developers to build housing more in tune with San Francisco’s real needs (even if he wants to start with ownership housing for cops). He supports public power, wants more sunshine in government, and opposes privatization. He also brings a much-needed critique of the remaining vestiges of machine politics in this one-party town and speaks passionately about the need for outsiders and political independents to have a seat at the table. We’re glad to have him in the race.

In the end, though, our picks in this first ranked-choice vote for San Francisco mayor are Mecke, Sumchai, and Rinaldi — on the issues, as a political statement, and to remind Newsom that his poll numbers don’t reflect the deep sense of distrust and discontent that remains in this city.

District attorney

KAMALA HARRIS


We’re always nervous about unopposed incumbents. And since Kamala Harris unseated Terence Hallinan four years ago, running as an ally of then-mayor Willie Brown with the backing of a corrupt old machine, we’ve been nervous about her.

In some ways she’s been a pleasant surprise. Harris quickly showed that she has courage and integrity when she refused to seek the death penalty for a cop killer despite the fact that the police rank and file and much of the brass excoriated her for it. She remains one of the few district attorneys in the nation who oppose the death penalty in all situations. She’s created a public integrity unit and aggressively filed charges against Sup. Ed Jew. She’s made clear to the Police Department that she won’t accept sloppy police work. She talks constantly about making crime and criminal justice a progressive issue.

But there are plenty of areas in which we remain nervous. Harris hasn’t been anywhere near as aggressive as she could be in prosecuting political corruption. She doesn’t pursue ethics violations or Sunshine Ordinance violations. The San Francisco DA’s Office could be a national leader in rooting out and prosecuting environmental and political crime, but it isn’t.

Meanwhile, the murder rate continues to rise in San Francisco, and Harris and the police are pointing fingers back and forth without actually finding a workable solution.

And lately, Harris, to her tremendous discredit, has been stepping up the prosecution of so-called quality-of-life crimes — which translates into harassing the homeless. She’s made sure there’s a full-time prosecutor in traffic court, pressing charges for things like public urination, sleeping in the park, and holding an open container of beer. That’s a colossal waste of law enforcement resources.

We expect a lot more from Harris in the next four years. But we’ll back her for another term.

Sheriff

MIKE HENNESSEY


Mike Hennessey has been sheriff for so long that it’s hard to imagine anyone else holding the job. And that’s not a bad thing: Hennessey is one of the most progressive law enforcement officers in the country. He’s turned the county jail into a center for drug rehabilitation, counseling, and education (the first charter high school in America for county prisoners is in the SF jail). He’s hired a remarkably diverse group of deputies and has worked to find alternatives to incarceration. He’s openly critical of the rate at which the San Francisco police are arresting people for small-time drug offenses ("We’re arresting too many people for drugs in the city," he told us). He took a courageous stand last year in opposing a draconian and ineffective state ballot initiative that would have kicked convicted sex offenders out of San Francisco and forced them to live in rural counties without access to support, services, or monitoring.

We’ve had some issues with Hennessey. We wanted a smaller new jail than he ultimately decided to build. And we really wish he’d be more outspoken on local law enforcement issues. Hennessey told us he wants to stick to his own turf, but if he were more visible on police reform, criminal justice, and law enforcement, the city would benefit immensely.

Hennessey’s only opponent is David Wong, a deputy sheriff who was unable to make a case for replacing the incumbent. We’re happy to endorse Hennessey for another term — but since this might be his last before retirement, we urge him to take his progressive views and push them onto a larger stage.

Don Fisher attacks the supes

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The Chron story Sunday portrayed the battle over transportation policy in San Francisco as Don Fisher vs. Aaron Peskin, but actually, Fisher is going further. He’s mounting an all-out attack on the Board of Supervisors — and a pro-Newsom campaign committee is helping out.

Fliers that went to the west side of town attack the supervisors as childish — and attack Prop. A as “another transportation solution from the Board of Supervisors.” The first flier is from the campaign against Prop. E — that’s question time, the measure that would require the mayor to appear before the board once a month. The second is from Fisher’s campaign against Prop. A.

The nearly identical messages aren’t a coincidence — the fliers have the same return address (150 Post St. Suite 405, the office of campaign lawyer Jim Sutton) and both were done by Rich Schlackman, a campaign consultant who is working with both No on A and No on E.

The plan, clearly, is to make people think the supes are idiots — then saddle Prop. A with that image. The fact that Schlackman, who is one of nation’s top direct-mail experts and who also works with Nathan Nayman and the Committee on JOBS, has adopted this strategy signals downtown’s continuing effort to go after the district-elected board. Expect more of this crap in the months to come.

BY THE WAY: The battle over Props. A and H is still close. Labor and environmental groups had 250 people out on the streets talking up Yes on A and No on H over the weekend, but if people don’t turn out to vote, Don Fisher could get his way.

The Yes on A/No on H party is Tuesday night at El Rio.

Transit or traffic

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Click here for the Clean Slate: Our printout guide to the Nov. 6 election

› steve@sfbg.com

San Francisco is at a crossroads. The streets are congested, Muni has slowed to a crawl, greenhouse gas emissions are at all-time highs, and the towers of new housing now being built threaten to make all of these transportation-related problems worse.

The problems are complicated and defy simply sloganeering — but they aren’t unsolvable. In fact, there’s remarkable consensus in San Francisco about what needs to be done. The people with advanced degrees in transportation and city planning, the mayor and almost all of the supervisors, the labor and environmental movements, the urban planning organizations, the radical left and the mainstream Democrats — everyone without an ideological aversion to government is on the same page here.

The city planners and transportation experts, who have the full support of the grass roots on this issue, are pushing a wide range of solutions: administrative and technical changes to make Muni more efficient, innovative congestion management programs, high-tech meters that use market principles to free up needed parking spaces, creative incentives to discourage solo car trips, capital projects from new bike and rapid-transit lanes to the Central Subway and high-speed rail, and many more ideas.

In fact, the coming year promises a plethora of fresh transportation initiatives. The long-awaited Transit Effectiveness Project recommendations come out in early 2008, followed by those from the San Francisco County Transportation Authority’s Mobility, Access, and Pricing Study (an unprecedented, federally funded effort to reduce congestion here and in four other big cities), an end to the court injunction against new bicycle projects, and a November bond measure that would fund high-speed rail service between downtown San Francisco and Los Angeles.

But first, San Franciscans have to get past a few downtown developers and power brokers who have a simplistic, populist-sounding campaign that could totally undermine smart transportation planning.

On Nov. 6, San Franciscans will vote on propositions A and H, two competing transportation measures that could greatly help or hinder the quest for smart solutions to the current problems. Prop. A would give more money and authority to the San Francisco Metropolitan Transportation Agency while demanding it improve Muni and meet climate change goals.

Prop. H, which was placed on the ballot by a few powerful Republicans, most notably Gap founder Don Fisher (who has contributed $180,000 to the Yes on H campaign), would invalidate current city policies to allow essentially unrestricted construction of new parking lots.

New parking turns into more cars, more cars create congestion, congestion slows down bus service, slow buses frustrate riders, who get back into their cars — and the cycle continues. It’s transit against traffic, and the stakes couldn’t be higher.

"If we are serious about doing something about global warming, it’s time to address the elephant in the room: people are going to have to drive less and take transit more" was how the issue was framed in a recent editorial cowritten by Sup. Sean Elsbernd, arguably the board’s most conservative member, and Sup. Aaron Peskin, who wrote Prop. A.

Peskin says Prop. H, which Prop. A would invalidate, is the most damaging and regressive initiative he’s seen in his political life. But the battle for hearts and minds won’t be easy, because the downtown forces are taking a viscerally popular approach and running against city hall.

The San Francisco Examiner endorsed Prop. H on Oct. 22, framing the conflict as between the common sense of "your friends and neighbors" and "a social-engineering philosophy driven by an anti-car and anti-business Board of Supervisors." If the Examiner editorialists were being honest, they probably also should have mentioned Mayor Gavin Newsom, who joins the board majority (and every local environmental and urban-planning group) in supporting Prop. A and opposing Prop. H.

The editorial excoriates "most city politicians and planners" for believing the numerous studies that conclude that people who have their own parking spots are more likely to drive and that more parking generally creates more traffic. The Planning Department, for example, estimates Prop. H "could lead to an increase over the next 20 years of up to approximately 8,200–19,000 additional commute cars (mostly at peak hours) over the baseline existing controls."

"Many, many actual residents disagree, believing that — no matter what the social engineers at City Hall tell you — adding more parking spaces would make The City a far more livable place," the Examiner wrote.

That’s why environmentalists and smart-growth advocates say Prop. H is so insidious. It was written to appeal, in a very simplistic way, to people’s real and understandable frustration over finding a parking spot. But the solution it proffers would make all forms of transportation — driving, walking, transit, and bicycling — remarkably less efficient, as even the Examiner has recognized.

You see, the Examiner was opposed to Prop. H just a couple of months ago, a position the paper recently reversed without really explaining why, except to justify it with reactionary rhetoric such as "Let the politicians know you’re tired of being told you’re a second-class citizen if you drive a car in San Francisco."

Examiner executive editor Jim Pimentel denies the flip-flop was a favor that the Republican billionaire who owns the Examiner, Phil Anschutz, paid to the Republican billionaire who is funding Prop. H, Fisher. "We reserve the right to change on positions," Pimentel told me.

Yet it’s worth considering what the Examiner originally wrote in an Aug. 2 editorial, where it acknowledged people’s desire for more parking but took into account what the measure would do to downtown San Francisco.

The paper wrote, "Closer examination reveals this well-intentioned parking measure as a veritable minefield of unintended consequences. It could actually take away parking, harm business, reduce new housing and drive out neighborhood retail. By now, Californians should be wary of unexpected mischief unleashed from propositions that legislate by direct referendum. Like all propositions, Parking For Neighborhoods was entirely written by its backers. As such, it was never vetted by public feedback or legislative debate. If the initiative organizers had faced harder questioning, they might have recognized that merely adding parking to a fast-growing downtown is likely to make already-bad traffic congestion dramatically worse."

The San Francisco Transportation Authority’s Oct. 17 public workshop, which launched the San Francisco Mobility, Access, and Pricing Study, had nothing to do with Props. A and H — at least not directly. But the sobering situation the workshop laid out certainly supports the assessment that drawing more cars downtown "is likely to make already-bad traffic congestion dramatically worse."

City planners and consultants from PBS&J offered some statistics from their initial studies:

San Francisco has the second-most congested downtown in the country, according to traffic analysts and surveys of locals and tourists, about 90 percent of whom say the congestion is unacceptably bad compared to that of other cities.

Traffic congestion cost the San Francisco economy $2.3 billion in 2005 through slowed commerce, commuter delays, wasted fuel, and environmental impacts.

The length of car trips is roughly doubled by traffic congestion — and getting longer every year — exacerbating the fact that 47 percent of the city’s greenhouse gas emissions come from private cars. Census data also show that more San Franciscans get to work by driving alone in their cars than by any other mode.

Traffic has also steadily slowed Muni, which often shares space with cars, to an average of 8 mph, making it the slowest transit service in the country. Buses now take about twice as long as cars to make the same trip, which discourages their use.

"We want to figure out ways to get people in a more efficient mode of transportation," Zabe Bent, a senior planner with the TA, told the crowd. She added, "We want to make sure congestion is not hindering our growth."

The group is now studying the problem and plans to reveal its preliminary results next spring and recommendations by summer 2008. Among the many tools being contemplated are fees for driving downtown or into other congested parts of the city (similar to programs in London, Rome, and Stockholm, Sweden) and high-tech tools for managing parking (such as the determination of variable rates based on real-time demand, more efficient direction to available spots, and easy ways to feed the meter remotely).

"As a way to manage the scarce resource of parking, we would use pricing as a tool," said Tilly Chang, also a senior planner with the TA, noting that high prices can encourage more turnover at times when demand is high.

Yet there was a visceral backlash at the workshop to such scientifically based plans, which conservatives deride as social engineering. "I don’t understand why we need to spend so much money creating a bureaucracy," one scowling attendee around retirement age said. There were some murmurs of support in the crowd.

Rob Black, the government affairs director for the San Francisco Chamber of Commerce, which is the most significant entity to oppose Prop. A and support Prop. H, was quietly watching the proceedings. I asked what he and the chamber thought of the study and its goals.

"We have mixed feelings, and we don’t know what’s going to happen," Black, who ran unsuccessfully against Sup. Chris Daly last year, told me. "The devil is in the details."

But others don’t even want to wait for the details. Alex Belenson, an advertising consultant and Richmond District resident who primarily uses his car to get around town, chastised the planners for overcomplicating what he sees as a "simple" problem.

Vocally and in a four-page memo he handed out, Belenson blamed congestion on the lack of parking spaces, the city’s transit-first policy, and the failure to build more freeways in the city. Strangely, he supports his point with facts that include "Total commuters into, out of, and within San Francisco have only increased by 206,000 since 1960 — more than 145,000 on public transit."

Some might see those figures, derived from census data, as supporting the need for creative congestion management solutions and the expansion of transit and other alternative transportation options. But Belenson simply sees the need for 60,000 new parking spaces.

As he told the gathering, "If someone wants to build a parking lot and the market will support it, they should be able to."

The San Francisco Planning and Urban Research Association (SPUR) is generally allied with the downtown business community on most issues, but not Props. A and H, which SPUR says could be unmitigated disasters for San Francisco.

"SPUR is a pro-growth organization, and we want a healthy economy. And we think the only way to be pro-business and pro-growth in San Francisco is to be transit reliant instead of car reliant," SPUR executive director Gabriel Metcalf told me in an interview in his downtown office.

He agreed with Belenson that the free market will provide lots of new parking if it’s allowed to do so, particularly because the regulatory restrictions on parking have artificially inflated its value. "But the negative externalities are very large," Metcalf said, employing the language of market economics.

In other words, the costs of all of that new parking won’t be borne just by the developers and the drivers but by all of the people affected by climate change, air pollution, congested commerce, oil wars, slow public transit, and the myriad other hidden by-products of the car culture that we are just now starting to understand fully.

Yet Metcalf doesn’t focus on that broad critique as much as on the simple reality that SPUR knows all too well: downtown San Francisco was designed for transit, not cars, to be the primary mode of transportation.

"Downtown San Francisco is one of the great planning success stories in America," Metcalf said. "But trips to downtown San Francisco can’t use mostly single-occupant vehicles. We could never have had this level of employment or real estate values if we had relied on car-oriented modes for downtown."

Metcalf and other local urban planners tell stories of how San Francisco long ago broke with the country’s dominant post–World War II development patterns, starting with citizen revolts against freeway plans in the 1950s and picking up stream with the environmental and social justice movements of the 1960s, the arrival of BART downtown in 1973, the official declaration of a transit-first policy in the ’80s, and the votes to dismantle the Central and Embarcadero freeways.

"We really led the way for how a modern dynamic city can grow in a way that is sustainable. And that decision has served us well for 30 years," Metcalf said.

Tom Radulovich, a longtime BART board member who serves as director of the nonprofit group Livable City, said San Franciscans now must choose whether they want to plan for growth like Copenhagen, Denmark, Paris, and Portland, Ore., or go with auto-dependent models, like Houston, Atlanta, and San Jose.

"Do we want transit or traffic? That’s really the choice. We have made progress as a city over the last 30 years, particularly with regard to how downtown develops," Radulovich said. "Can downtown and the neighborhoods coexist? Yes, but we need to grow jobs in ways that don’t increase traffic."

City officials acknowledge that some new parking may be needed.

"There may be places where it’s OK to add parking in San Francisco, but we have to be smart about it. We have to make sure it’s in places where it doesn’t create a breakdown in the system. We have to make sure it’s priced correctly, and we have to make sure it doesn’t destroy Muni’s ability to operate," Metcalf said. "The problem with Prop. H is it essentially decontrols parking everywhere. It prevents a smart approach to parking."

Yet the difficulty right now is in conveying such complexities against the "bureaucracy bad" argument against Prop. A and the "parking good" argument for Prop. H.

"We are trying to make complex arguments, and our opponents are making simple arguments, which makes it hard for us to win in a sound-bite culture," Radulovich said.

"Prop. H preys on people’s experience of trying to find a parking space," Metcalf said. "The problem is cities are complex, and this measure completely misunderstands what it takes to be a successful city."

When MTA director Nathaniel Ford arrived in San Francisco from Atlanta two years ago, he said, "it was clear as soon as I walked in the door that there was an underinvestment in the public transit system."

Prop. A would help that by directing more city funds to the MTA, starting with about $26 million per year. "I don’t want to say the situation is dire, but it’s certainly not going to get better without some infusion of cash to get us over the hump," Ford told the Guardian recently from his office above the intersection of Market and Van Ness.

The proposed extra money would barely get this long-underfunded agency up to modern standards, such as the use of a computer routing system. "We actually have circuit boards with a guy in a room with a soldering iron keeping it all together," Ford said with an incredulous smile.

The other thing that struck Ford when he arrived was the cumbersomeness of the MTA’s bureaucracy, from stifling union work rules to Byzantine processes for seemingly simple actions like accepting a grant, which requires action by the Board of Supervisors.

"Coming from an independent authority, I realized there were a lot more steps and procedures to getting anything done [at the MTA]," he said. "Some of the things in Prop. A relax those steps and procedures."

If it passes, Ford would be able to set work rules to maximize the efficiency of his employees, update the outdated transit infrastructure, set fees and fines to encourage the right mix of transportation modes, and issue bonds for new capital projects when the system reaches its limits. These are all things the urban planners say have to happen. "It should be easy to provide great urban transit," Metcalf said. "We’re not Tracy. We’re not Fremont. We’re San Francisco, and we should be able to do this."

Unfortunately, there are political barriers to such a reasonable approach to improving public transit. And the biggest hurdles for those who want better transit are getting Prop. A approved and defeating Prop. H.

"It’s clear to people who have worked on environmental issues that this is a monumental election," said Leah Shahum, director of the San Francisco Bicycle Coalition and an MTA board member. "San Francisco will choose one road or the other in terms of how our transportation system affects the environment. It will really be transit or traffic."

Shahum said the combination of denying the MTA the ability to improve transit and giving out huge new parking entitlements "will start a downward spiral for our transit system that nobody benefits from."

"We are already the slowest-operating system in the country," Ford said, later adding, "More cars on the streets of San Francisco will definitely have a negative impact on Muni."

But even those who believe in putting transit first know cars will still be a big part of the transportation mix.

"All of it needs to be properly managed. There are people who need to drive cars for legitimate reasons," Ford said. "If you do need to drive, you need to know there are costs to that driving. There is congestion. There are quality impacts, climate change, and it hurts transit."

"There are parking needs out there, and the city is starting to think of it in a more responsive way. We don’t need this to create more parking," Shahum said. "If folks can hold out and beat down this initiative, I do think we’re headed in the right direction."

Yet the Yes on A–No on H campaign is worried. Early polling showed a close race on Prop. A and a solid lead for Prop. H.

Fisher and the groups that are pushing Prop. H — the Council of District Merchants, the SF Chamber of Commerce, and the San Francisco Republican Party — chose what they knew would be a low-turnout election and are hoping that drivers’ desires for more parking will beat out more complicated arguments.

"The vast majority of San Franciscans call themselves environmentalists, and they want a better transit system," Shahum said, noting that such positions should cause them to support Prop. A and reject Prop. H. "But they’re at risk of being tricked by a Republican billionaire’s initiative with an attractive name…. Even folks that are well educated and paying attention could be tricked by this."

For Metcalf and the folks at SPUR, who helped write Prop. A, this election wasn’t supposed to be an epic battle between smart growth and car culture.

"For us, in a way, Prop. A is the more important measure," Metcalf said. "We want to focus on making Muni better instead of fighting about parking. We didn’t plan it this way, but the way it worked out, San Francisco is at a fork in the road. We can reinforce our transit-oriented urbanity or we can create a mainly car-dependent city that will look more like the rest of America."

Money and politics

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› sarah@sfbg.com

The upcoming election hasn’t generated much voter interest, with only a couple of measures that seem likely to have an impact. But corporate interests in San Francisco and beyond are still spending big money — in ways that are secretive, suspicious, and sometimes contradictory — to influence the election and win the gratitude of elected officials.

Although the final preelection campaign statements were due Oct. 25, the money continues to roll in. And perhaps most ominously, many campaign committees are spending far more than they are taking in, effectively using this accrued debt to hide contributors until after the election.

And almost invariably, the person at the center of such schemes — who facilitates the most creative and unsettling spending by downtown political interests — is notorious campaign finance attorney Jim Sutton, who also serves as Mayor Gavin Newsom’s treasurer (and didn’t return our calls for comment by press time).

Political donations are supposed to be transparent and reflect popular support for some campaign. But once again, this election is showing the disproportionate influence that corporations have on local politics and the difficulties faced in trying to accurately trace that influence.

There are "No on K" billboards all over San Francisco, showing a giant image of a man’s empty pocket alongside the dubious claim that "Proposition K will cut $20 million from Muni." The signs were created and funded by Clear Channel Outdoor.

Prop. K is an advisory measure that the Board of Supervisors placed on the ballot this fall to ask whether voters want to restrict advertising on public spaces like bus stops. But it was aimed at Clear Channel Outdoor’s contract to maintain 1,100 city bus shelters and sell advertising on them, which was approved by the Board of Supervisors on Oct. 23. In exchange, the CCO agreed to pay the Metropolitan Transportation Authority $5 million annually, plus 45 percent of its annual revenues from shelter ad revenues.

Nonetheless, the measure would put city voters on record as opposing the CCO’s basic business model, so the company fought back. The "No on K — Citizens to Protect Muni Services" filing suggests that there is no citizen involvement in the No on K campaign. So far, No on K has only received donations from Clear Channel Outdoor, including $120,000 in cash and $55,750 in in-kind contributions of radio time and ad space.

Maybe Clear Channel really is trying to help Muni get more money, rather than pad its own profits. After all, its parent corporation, Clear Channel International, donated $20,000 to support Muni reform measure Proposition A — authored by Board of Supervisors president Aaron Peskin — on Oct. 15, just days before Clear Channel Outdoor won its big bus transit deal with the city.

Yet following the corporate money even further makes it clear that altruism isn’t what motivates corporate spending. No on K also benefited from independent expenditures by the San Francisco Chamber of Commerce 21st Century Committee, a general-purpose committee created in 1999, which received major funding this year from the Gap ($10,000), Pacific Gas and Electric Co. ($7,500), Bechtel ($5,000), Catholic Healthcare West ($5,000), and Clear Channel Outdoor ($1,000).

The 21st Century Committee also spent $716 for newspaper ads opposing Prop. A, which would net the MTA at least $26 million per year from the city’s General Fund. Sutton — a former chair of the California Republican Party — and his associates effectively control the 21st Century Committee, which is also helping Newsom, his top client, avoid facing the Board of Supervisors in public. The committee has made independent expenditures opposing Proposition E, a charter amendment that would require the mayor to make monthly appearances before the board, something voters approved last year as an advisory measure. According to Newsom spokesperson Nathan Ballard, defeating that measure is the mayor’s top priority this election.

"I think he’s focused on his own race and also Question Time. There’s where he’s spending his resources," Ballard said when asked why Newsom isn’t campaigning or fundraising for the Yes on A and No on H campaigns, even though he supports those positions.

The 21st Century Committee has also made independent expenditures in support of Proposition C (which would require public hearings for measures that the board or the mayor places on the ballot), Proposition H (see "Transit or Traffic," page 18), Proposition I (which would establish an Office of Small Business), and Proposition J (Newsom’s wireless Internet advisory measure).

Each of these ballot measures has a committee dedicated to raising funds, but as of Oct. 25, only the Small Business Campaign (Yes on C) appeared to have no outstanding debts, or accrued funds, as they are called in campaign finance circles. Maybe that’s because the Small Business Campaign got $10,000 from the 21st Century Committee, $5,000 from PG&E, $2,500 from AT&T, $8,500 from the SF Small Business Advocates, and $1,000 from the Building Owners and Manufacturers Association of San Francisco’s political action committee.

Yes on C also got a $7,500 contribution from the Committee on Jobs Government Reform Fund, which has ties to Clear Channel, the MTA, and efforts to influence local transportation policy. Records show that on Nov. 4, 2005 — just before the election — the Committee on Jobs Government Reform Fund reported a $6,900 "loan" for radio airtime and production costs from Clear Channel to help defeat a measure that would have split the MTA appointments between the mayor and the Board of Supervisors.

Fast-forward to Oct. 3 of this year, when the Committee on Jobs, which reported its "loan" as accrued funds for almost two years, reported that this debt has now been forgiven. Which is odd, given that, as of Oct. 25, the Committee on Jobs had a cash balance of $778,000 — and had just received $35,000 from financier and Committee on Jobs board member Warren Hellman, $35,000 from AT&T, and $50,000 from the Charles Schwab Corp.

Equally interesting is the fact that the day after the Oct. 25 preelection filing deadline, the Committee on Jobs gave $25,000 to the Sutton-controlled No on E: Let’s Really Work Together Coalition. Such large late contributions require a notice to Ethics that can often escape notice by the media and voters.

The donation perhaps went to help balance the committee’s books; despite receiving $85,084 in monetary contributions, including $10,000 from attorney Joe Cotchett and society maven Dede Wilsey, No on E spent $110,244 before Oct. 25, leaving it with $26,610 in accrued debt.

No on E isn’t the only Sutton-controlled committee whose spending has outpaced donations received: as of Oct. 25 the Yes on H–No on A pro-parking committee and Newsom’s WiFi for All, Yes on J committee, not to mention the Gavin Newsom for Mayor campaign, were all registering large amounts of accrued debt.

Having these debts isn’t illegal. And it’s not unusual for a campaign to have a pile of unpaid bills at the time of its last preelection finance filing. But as Ethics Commission director John St. Croix told the Guardian, accrued funds "shouldn’t be used to hide who your contributors are. The idea of disclosure is to let voters know ahead of elections who is trying to influence their vote."

St. Croix points to the fact that committees are required to make reports every 24 hours in the 16 days before an election "so you know what they are spending on…. But if committees don’t report campaign contributions and people fundraise after the election, that could be a de facto way to hide who the contributors are."

And while Sutton has been characterized by many, including the Guardian (see "The Political Puppeteer," 2/2/04), as the dark prince of campaign finance, St. Croix says he doesn’t automatically suspect something is wrong just because a campaign has a lot of accrued debt.

"But if people suspect that to be the case and they file a complaint, Ethics investigates," St. Croix said, adding that for him, "really massive accrued funds would be a red flag."

Asked what he meant by massive, St. Croix said, "It depends on the office. You might expect a lot more to accrue in a mayor’s race or large campaigns that tend to do a lot of last-minute spending."

As of Oct. 25, Gavin Newsom for Mayor had received $1.1 million and spent $1.3 million, had a cash balance of $457,994 — and was reporting $97,548 in accrued debt, with $46,500 owed to Storefront Political Media, the company run by Newsom’s campaign manager, Eric Jaye.

Noting that Ethics’ job is "to get people to file on time and chase after those who don’t," St. Croix said that those who don’t file and are making major expenditures right before an election are the ones who will face the biggest fines. "They could face $5,000 per violation, which could be $5,000 for every contribution that was made to finance a smear campaign and wasn’t reported," he said.

The biggest fine the Ethics Commission has ever issued was $100,000 for Sutton’s failure to report until after the 2002 election a late $800,000 contribution from PG&E to help defeat a public power measure.

Compared to other years, the amounts of accrued debt in this election may look small, but former Ethics commissioner Joe Lynn points to a disturbing pattern in which Sutton-controlled committees were insolvent before the election, then raised funds later or, as in the case of the Committee on Jobs, magically saw their debts forgiven.

"If I am a candidate running for mayor, like Gavin Newsom, and I personally rake up $100,000 in debt and have a big financial statement, then that means there’s a creditor willing to advance me those funds," Lynn said. "But if the debt has been raked up by a ballot measure committee, then who is responsible? Why would vendors spend $10,000 for that committee unless they knew that debt was wired from the get-go?"

But the result is the same: voters don’t know who donated to the campaign until after the votes have been cast. A clear historical example of this debt scheme can be seen in the June 2006 No on D Laguna Honda campaign. In its last preelection report, No on D had $59,750 in contributions, $18,664 in expenditures — and $130,224 in debt.

But during the 16 days before the election, No on D suddenly got $110,000 in late contributions from the usual suspects downtown, including $2,500 from Hellman, $15,000 from Turner Construction, $10,000 from Wilsey, $2,000 from the San Francisco Chamber of Commerce, and $2,500 from the Building Owners and Manufacturers Association of San Francisco.

As Lynn explains, campaign finance laws only require disclosure of contributions, not expenditures, made in the 16 days before an election — and only $64,000 worth of the contributions used to pay off No on D’s accrued expenses were disclosed, with $10,000 each from the California Pacific Medical Center and Kaiser Permanente trickling in on or after Election Day.

This year campaign finance watchdogs like Lynn note that the Sutton-controlled Yes on H–No on A committee has been hiding its contributors. In its first preelection report, filed Sept. 22, Yes on H showed $113,750 in contributions, $111,376.18 in expenditures, and $69,806.98 in accrued debt.

A month later it has doubled its contributions, tripled its expenditures — and had increased its accrued debt to $77,509. Lynn predicts that Yes on H’s accrued debt will be paid down by late contributions after the election or forgiven later on.

"The solution to the debt scheme is twofold," Lynn said. "Prosecute people doing the scheme and pass a law prohibiting campaigns from making more expenditures than they have contributions. Technically there is nothing illegal about reporting more debt that you have the cash or contributions to pay, but no businessperson regularly offers services in situations where it isn’t clear that they will be paid."

Since the Oct. 25 filing deadline, late contributions have continued to pour into No on E big-time, for a total of $59,500. That includes $25,000 from the Committee on Jobs, $2,500 from Jonathan Holzman, $6,000 from Elaine Tsakopoulos-Kounalakis, $1,000 from Chris Giouzelis, $1,000 from Nick Kontos, $1,000 from Farrah Makras, $1,000 from Victor Makras, $1,000 from Makras Real Estate, $5,000 from John Pakrais, $1,000 from Mike Silva, $1,000 from Western Apartments, $5,000 from Maurice Kanbar, and $5,000 from the San Francisco Apartment Association PAC.

The Yes on A committee hasn’t used the accrued debt scheme, but it has been the second-largest recipient of late contributions. It received $57,000 in late contributions, with donations from Engeo ($1,000), Singer Associates ($2,500), Trinity Management Services ($10,000), Elysian Hotels and Resorts ($5,000), Luxor Cabs ($1,000), Marriott International ($15,000), the SF Police Officers Association ($2,000), Sprinkler Fitters and Apprentices ($1,500), Barbary Coast Consulting ($2,500), and SEIU International ($3,397.14).

No on H (Neighbors Against Traffic and Pollution) received $4,500 in late contributions, with donations from Norcal Carpenters, Alice and William Russell-Shapiro, and Amandeep Jawa. And in what looks like a classic case of hedging bets, Singer Associates has made a $2,500 late contribution to both Yes on H and No on H.

Steven Mele, who is treasurer for Yes on A and No on H, told the Guardian, "There’s some people that time their contributions, but their names are out there, reported on public sites. A lot of corporate money comes in prior to the last deadline, then some afterwards. If campaigns are running with a lot of accrued debt, then those people must have an idea of what money is going to come in."

Unlike the campaigns controlled by the Sutton Law Firm, Mele’s committees, which work with Stearns Consulting, are not carrying massive loads of unpaid debt. Yes on A had received $302,452 and spent $279,890 and had $17,749 in debt as of Oct. 25. No on H had received $134,458 and spent $124,088 and had no debt as of Oct. 25.
Mele also believes that while campaign finance rules were written to make the money trail more transparent, "They’ve resulted in the public being inundated with so much information that they tend to glaze over."

Campaign sewer overflows

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› amanda@sfbg.com

The flow of election cash is often a filthy river that you wouldn’t want to drink from, and a recent local lawsuit, coupled with a new bit of state legislation, has muddied the waters even more.

On Sept. 20, US District Court Judge Jeffery S. White granted a preliminary injunction preventing the city from enforcing key sections of its Campaign Finance Reform Ordinance.

Two local groups with a sordid history of influencing elections with large chunks of cash — the Building Owners and Managers Association and the Committee on Jobs — argued in court that campaign contribution limits violate the First Amendment by financially curbing the ability to communicate a message (see "Pressing the Scales," 8/22/07). The contribution limits of independent-expenditure committees stumping for candidates were set by the voter-passed Proposition O in 2000 after the 1999 reelection of Mayor Willie Brown, in which deep-pocketed business interests backed the mayor in exchange for preferential treatment by city hall.

Prop. O capped contributions to IEs at $500, and people and corporations are allowed to give no more than $3,000 total (e.g., $500 each to six committees).

Those caps are no longer enforceable.

Similar injunctions have been granted in San Jose and Oakland, also destroying local contribution caps in those cities. San Jose appealed to the 9th Circuit Court of Appeals and is waiting for a ruling. Ann O’Leary, a lawyer in City Attorney Dennis Herrera’s office, told us San Francisco is waiting to see what happens in San Jose before making the next move, though an appeal is planned regardless of that outcome. In the past the Supreme Court has ruled that the appearance of corruption in elections is sufficient grounds for restricting campaign contributions, and San Francisco’s history provides ample examples from which to draw to support that decision.

"We don’t know if it will get back to court before November 2008," O’Leary said of the case, "but it’s certainly something to watch in that election."

Meanwhile, over in Sacramento, legislators on cruise control recently passed a bill that may make it impossible for San Francisco to write its election laws anyway. Gov. Arnold Schwarzenegger just signed Assembly Bill 1430, and according to the legislative digest, the new law "prohibits local governments from adopting campaign finance ordinances that restrict communications between an organization and its members unless state law similarly restricts such communications, or by regulation by the Fair Political Practices Commission."

Proponents say the new law will resolve conflicting interpretations of campaign finance regulations, but opponents say it preserves wide-open loopholes in the Political Reform Act that local jurisdictions have tried to close. For example, a person may be prohibited by the city from giving more than $500 to support a certain candidate. That person can, however, give as much as $30,200 to the Democratic Party, which can then "communicate" a message of support for that candidate to its members.

A recent and egregious example: in San Diego the county Republican Party spent almost $1 million on local races in 2006.

The bill was authored by Carlsbad Republican Martin Garrick and flew through the State Assembly unopposed. Assemblymember Mark Leno told us it came to the Elections Committee, on which he sits, with no vocal opposition, so he gave it an aye. One of his aides, however, became concerned and started making calls. Eventually, Common Cause and the League of Women Voters rallied against it, but it only hit a speed bump in the State Senate. There was still too much support from the Democrats to kill it. Leno said, "It’s an uncommon situation to have the left and right supporting something that in fact runs counter to local election laws."

Only nine senators opposed the bill, including Carole Migden and Leland Yee. "She thought it was an end around campaign finance laws," Migden aide Eric Potashner told us.

San Francisco’s Ethics Commission also took a look at the bill and gave it a 5–0 thumbs-down, resolving to send a letter to both the mayor and the Board of Supervisors urging them to speak against it. Neither did. "The Mayor supports AB1430," his press secretary, Nathan Ballard, told us by e-mail. "He has some concerns about the local control issue, but ultimately those concerns are overridden by his belief that groups like labor unions and the Democratic Party should be allowed to communicate directly with their members."

The governor’s signature now makes it more difficult to pass future measures like Prop O.

Neither the injunction nor the new law seems to be affecting the Nov. 6 election — the FPPC won’t be ruling on AB 1430 until January, though the commission is holding a hearing for interested people to speak in Sacramento on Nov. 2.

Though BOMA and the Committee on Jobs stated in their filing for the injunction that the law harms their ability to raise and spend money for candidates in this November’s election, nothing on record with the Ethics Commission shows they’ve been putting up a lot of money for Newsom, Kamala Harris, or Michael Hennessey. But there’s always next year.

Mayor moving on peaker deal

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The Board of Supervisors had a little shake-up today in the middle of a conversation on the city’s deal to build a new peaker power plant.

One of the biggest selling points from proponents of the $230 million natural gas fired power plant has been that it will receive the “Reliability Must Run” contract from CA-ISO, the state energy agency that dishes out those kinds of things. Right now the Mirant Potrero plant has that RMR, and city officials and activists have been trying for several years to get that plant to close down because it spews more filth into the air than a newer one would. Without an RMR, which essentially pays the power plant owner to NOT run unless needed during peak energy hours, it becomes financially dicey to keep the lights on, but Mirant has never definitively said they’d pull the plug if the city built its own power plant. Some folks, including us, have expressed concern that we could end up with two power plants.

Supervisor Tom Ammiano was intending to slap a couple of amendments onto the resolution the board heard today regarding the peaker plant, one of which would have urged the PUC to get an iron-clad guarantee from Mirant that they’d shut down. In the middle of the supes grilling the PUC on the peaker contract, Sup. Aaron Peskin interjected with the late-breaking news that Mayor Gavin Newsom was at that very moment negotiating with Mirant for a signed agreement that the plant would shutter for good if their RMR is removed.

Some of the supes seemed a little surprised by the news, if not miffed. (Gav’s got a bit of a thing for trumping.) Rumors outside the chamber were that the Mayor’s office has been working on this for awhile, and part of the negotiation may have to do with some city assistance with cleaning-up of the old power plant site and maybe a little fast-tracking of the permitting process for Mirant to put it to some other, more lucrative use. (Condos, anyone? Anyone around here need another $2 million condo?)

No one from the Mayor’s office got up to speak about it (nor the Mayor himself, though it was his day to shine in front of the supervisors. More on that after Prop E passes.) They haven’t issued a press release yet, and I swung by the press office but no one there knew anything about it. Supes Mirkarimi, Daly, and Alioto-Pier voted still voted against the resolution.

UPDATE:

Sup. Ross Mirkarimi tells us we got it wrong — he introduced the resolution amendments, not Tom Ammiano. Sorry about that — we missed the beginning of the hearing, and got the amendments through a fax from Ammiano’s office. The hearing isn’t up on SFGTV yet, so we’ll take Mirkarimi’s word that the amendments are part of the resolution.

They urge the SFPUC to do two things:
1. secure the closure of Mirant as a condition before operating the peakers. (Mayor’s on that one.)

2. “…stipulate a controlled operating regimen that reduces the usage of the CT’s as renewable in-city generation capacity comes on-line consequent to implementation of City’s renewable energy plan under Community Choice Aggregation and other renewable power sources.” (So, essentially, curb the peakers as we put up the solar panels.)

Also, here are some PDFs which prove the point commenter Eric Brooks makes below that the peakers will spit out about the same amount of pollution as Mirant does now:

Testimony of Bay Area Air Quality Management District’s engineer Barry Young at 10/23 SFPUC hearing

Images that quantify the testimony

The peaker problem

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San Francisco is finally moving forward on a plan to put four small electric power plants into operation, three of them in Southeast San Francisco. In theory, there’s merit to the idea: The plants would be owned by the city, and thus part of a future public-power infrastructure.

They came as a settlement in a lawsuit against William[S] Power Co., so they aren’t supposed to cost much. And city officials say that when the plants are operational, the smoke-belching Mirant power plant will shut down, eliminating a major source of pollution in the city’s most environmentally beleaguered region.

But the devil is in the details, and if the San Francisco Public Utilities Commission and the Board of Supervisors aren’t careful, this could turn out to be the project from hell.

The power plants are known as combustion turbines, or CTs. In effect, they’re just large jet engines. The city’s owned them since 2003, but is only now figuring out how to get them up and running.
It’s been a complicated process: Although the city paid no cash for the turbines, they need to be placed in a specially constructed facility, which needs special wiring and plumbing. The state was supposed to pay some of that cost, but now has backed down, leaving the city with an estimated $61.4 million tab.

The SFPUC’s solution: Cut a deal with a Japanese outfit called JPower, which has agreed to put up the cash to build the facility if it gets to run it and sell the power for the next 13 years (30 years for the turbine that will run at the airport) The actual terms of the contract remain secret – although the city’s Sunshine Ordinance clearly states that sole-source contracts like this one must be released to the public, the SFPUC hasn’t responded to our public-records request for the documents. Which doesn’t tend to instill confidence.

Then there’s the Mirant issue. Community activists have been trying to shut down the plant for years, but the state won’t allow it. State regulators insist that some generation capacity be sited in San Francisco, and they won’t allow the plant to be shut down unless there’s an alternative.

However, Mirant has a lucrative state contract to fulfill that capacity needs, and state officials have agreed in writing that if the CTs are on line, they will terminate the deal. That ought to give Mirant an economic incentive to turn off the switch – but the company hasn’t made any promises and remains very vague about its future plans.

The politics of the plant siting are complicated, too. There’s an Astroturf coalition, entirely sponsored by Pacific Gas and Electric Company, that opposes the plants and is claiming that they will add more fossil-fuel generation and noxious fumes to the southeast. A nonprofit called the Brightline Defense Project is suing to stop the plants, on behalf of the A. Philip Randolph Institute – and that organization received $135,000 in funding from PG&E over the past three years, $85,000 of it in 2006, according to PG&E’s annual statement to the California Public Utilities Commission. PG&E doesn’t want the competition from another energy provider – and really, really doesn’t want the city to build power generation that could be used in an effort to create a municipal utility. So some of the most visible critics have little credibility.

On the other hand, some legitimate environmental justice advocates and some longtime residents of the neighborhood fear that the worst of all possible outcomes could happen – the CTs AND the Mirant plant could wind up operating at the same time. The CTs, also known as peakers, would generate less pollution that Mirant in part because they’re designed to be operated only a few hours a day, during peak times of electricity demand. But the state license actually allows each plant to be run as much as 11 hours a day. And JPower will be trying to recoup its money as fast as possible, and will have every incentive to keep the juice flowing.
The combined impact of three new fossil-fuel power plants, running at maximum capacity, and the exiting Mirant plant would be an unacceptable burden for southeast San Francisco – and the SFPUC and the supervisors have to do more than rely on Mirant’s vague statements to prevent that from happening.

Ideally, we’d prefer no new fossil-fuel plants in the city at all, and we’re not convinced that San Francisco even needs the peakers. Conservation, along with new solar, wind and tidal power, could easily fill the rather modest gap between what San Francisco has now and what it will need in a Mirant-free future. But that decision is in the hands of California Independent System Operator, which controls the grid, and the CAISO insists that Mirant will stay open unless the peakers are running. That agency needs to be reformed, and the state Legislature should take it up next session. The CAISO should be required to consider increased efficiency, conservation and alternative generation as a viable alternative to building and running fossil-fuel plants.

In the meantime, there’s a simple solution here: The SFPUC should refuse to give the peakers a green light unless the city controls the on-off switch. Specifically, the contract should limit the number of hours the turbines can operate – and must state specifically that they can never be turned on until Mirant is shut off for good.

In a September, 2007, environmental assessment, the SF Department of Public Health noted that “it’s imperative that the city … obtains an agreement from Mirant to secure closure of the [Potrero] plant before the final approval of the SFPUC to site the new CTs.” That may not be possible, since Mirant isn’t cooperating – but the city has every right to set rules about when the CTs can run.

It’s simple: When Mirant throws the off switch, and that plant is cold and dead forever, JPower and the city can turn the peakers on. Not one minute before.

The story of Q

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› sarah@sfbg.com

With just a couple of weeks to go until San Franciscans elect their next mayor, Quintin Mecke, the 34-year-old program director of the Safety Network, has emerged as Gavin Newsom’s top challenger.

Since declaring his candidacy, the fresh-faced Mecke has been endorsed by almost every significant progressive entity in the city, including supervisors Chris Daly and Ross Mirkarimi, BART board member and Livable City director Tom Radulovich, the Harvey Milk LGBT Democratic Club, the San Francisco Tenants Union, and the Guardian.

"Of all the mayoral candidates, Quintin has the longest record of working in the community and on important issues facing the city," said Daly, who was the first to publicly endorse the Pennsylvania native, shortly after Mecke declared his candidacy in August.

But despite his solid list of endorsers, Mecke hasn’t managed to raise much money. He didn’t come close to taking advantage of the mayoral public financing program created by Mirkarimi and approved by the most liberal members of the Board of Supervisors. Mecke said his late entry made it impossible to raise the required $25,000 (from at least 250 donors who could prove San Francisco residency) by the Aug. 28 deadline.

"Had I had more time, I don’t think raising the $25,000 is that much of a challenge," Mecke, a former Peace Corps volunteer, told the Guardian at the time. But two months later Mecke has only raised $11,203, with Sup. Tom Ammiano and former mayoral contender Matt Gonzalez respectively contributing $250 and $100, although neither has endorsed him yet.

With Newsom sitting on a $1.8 million war chest, Daly admits that it would take a perfect storm for Mecke to win.

"The incumbent would have to stumble between here and the finish line," said Daly, who toyed with running until Aug. 8, at which point Mecke dove into the race, challenging Newsom’s record on public safety, homelessness, and affordable housing — issues that Mecke has been intimately involved with since moving here a decade ago.

Mecke’s move to California came shortly after he survived a near-fatal climbing accident in Alaska, which shattered all of his teeth when he fell 40 feet off a glacier. The fall also saddled Mecke, who didn’t have health insurance, with $90,000 in medical bills.

"It was a humbling experience, but people have to take responsibility for the situations they find themselves in," said Mecke, who worked for Ammiano on arriving in San Francisco and has since worked on the Ammiano, Mirkarimi, and Gonzalez campaigns.

Mecke also helped found the South of Market Community Anti-Displacement Coalition, served as president of the Mental Health Association of San Francisco, and helped author a report on homelessness that led him to publicly debate then-supervisor Newsom over his Care Not Cash initiative.

"Accountability without support is a form of cruelty," Mecke stated in 2002, a belief he still holds as he tries, as a member of the Homeless Shelter Monitoring committee, to get the city to implement universal shelter standards.

"If you raise the quality of life and safety standards in the city’s shelters, then more homeless people will want to enter them," Mecke said.

Mecke, a Western Addition resident, believes in community-driven responses to crime and violence. While Newsom claims that black-on-black violence has decreased under his administration, Mecke counters that African Americans make up only 7 percent of the city population but constitute 60 percent of the homicide victims. He thinks we need a real community policing program.

"We have 10 fiefdoms, 10 police districts," Mecke said. "That means that the oft-touted and talked about idea of community policing doesn’t really exist."

Newsom campaign manager Eric Jaye claims the only thing he knows about Mecke is that "he opposed Care Not Cash and he is supported by Sup. Chris Daly.

"But his own record? That’s a little bit harder," Jaye continued. "Mecke works for a city-funded nonprofit, but ironically, he’s unhappy with the violence prevention work the city is doing. Presumably he’s running because he thinks he can do a better job, but we’re proud of our progress on universal health care, our work on climate protection, our civic efforts, the fact that the eviction rate has plummeted, and that there’s more housing and affordable housing in the pipeline than [under] any other mayor in recent history."

But Mecke points out that the city’s health care initiative was Ammiano’s brainchild and that Newsom failed to deliver on his "wi-fi for all" promise by stubbornly pushing a flawed proposal and refusing to engage with its critics.

"Newsom’s only successes are initiatives proposed and led by members of the Board of Supervisors," said Mecke, who accuses Newsom of "making every decision within the framework of a national model while promoting some future candidacy."

He faults Newsom for asking for mass resignations this fall and sees the fact that Newsom is raising piles of cash to defeat Proposition E, which would require the mayor to make monthly appearances before the Board of Supervisors, as further evidence of his cowardice.

"San Francisco need to demand of this race that there’s public accountability," Mecke said. "Newsom seems to fear any form of nonscripted public interaction. When you go to his fake Question Time–town hall meetings you don’t actually get to ask the mayor your own question. He selects what he wants to hear."

Needed: a campaign against privatization

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EDITORIAL It’s time for San Francisco to declare war on privatization.

The local threat is very real: as we reported in last week’s special anniversary issue, Mayor Gavin Newsom’s administration has moved to turn over a long list of city services — from housing for the mentally ill to the operation of the public golf courses — to the private sector. Should this happen, if history is any guide, the city would wind up losing millions, the quality of services would decline, and the economy would suffer as hundreds of well-paid, unionized employees lost their jobs.

Equally important, the public would lose control over the institutions that were and are created and run for its benefit.

Privatization is a recipe for corruption. There always has been and always will be some level of graft, corruption, and incompetence in government operations; there will always be the occasional city employee who sleeps on the job, fudges time cards, doesn’t do the job right, and somehow manages to avoid being fired. But that sort of small-time problem amounts to peanuts in comparison to what happens when large amounts of public money are turned over to the private sector.

Private companies are out to make profits — and for the most part they keep their finances secret. Many of the worst scandals in American history have involved kickbacks, backroom deals, and bribery aimed at sending taxpayer dollars into the coffers of big contractors, and these continue today. And the argument that the private sector is more efficient often turns out to be utterly false; the absolute worst waste of money in the nation’s health care system, for example, is the phenomenal overhead involved in private insurance plans. As much as 30¢ of every dollar spent on private-sector health care goes to administrative overhead and profit. The public Medicare system operates on about 5 percent overhead.

Of course, the public has no way of keeping track of where most of the private health care money goes; the insurance companies keep that information to themselves. So do most other private contractors that take public money. And even if you don’t like the way the system is managed, you don’t have much choice — insurance executives aren’t elected by anyone and aren’t accountable to the community.

San Francisco has a history of allowing private operators to take over public resources, and the results have been almost universally bad. One of the reasons the 1906 earthquake caused such devastation was that the private Spring Valley Water Co. — looking only for quick profits and not at long-term maintenance or service — failed to keep its pipes in good repair. When the city really needed water, to put out the postquake fires, it wasn’t available. That fiasco led city officials to develop a municipal water system, which now delivers some of the best, cleanest, and cheapest water in the country.

Of course, Congress gave San Francisco the right to build that water system, which uses a dam in Yosemite National Park, only on the condition that it also develop public electric power. Instead, in the greatest privatization scandal in the history of urban America, Pacific Gas and Electric Co. wound up initially controlling much of the output of the dam, and it still controls the city’s electric grid. The result: some of the highest electric rates in the nation and terrible, unreliable service.

San Francisco officials led the way to the privatization of the Presidio, turning over a national park to an unaccountable quasi-private board that operates as a real estate developer. The results: A giant commercial office complex, built with a $60 million tax break. Plans for high-end condos. Traffic problems, neighborhood problems — and a stiff bill to the city’s taxpayers, who have to subsidize private businesses that operate in a federal enclave without paying local taxes.

And if Newsom has his way, the pattern will continue: the mayor’s signature project this past year, for example, has been an attempt to let a private company control the city’s broadband communications infrastructure. Tens of millions in city contracts go every year to private nonprofits that fight like hell to avoid sunshine and accountability.

Enough is enough — San Franciscans of every political stripe need to organize to fight back. This city needs a new political coalition, a campaign against privatization.

There are all sorts of specific policies and legislation that ought to be on the agenda. For starters, privatization expert Elliott Sclar, a Columbia University economist, argues that any private business that takes city money to provide public services ought to be required to abide by open-government laws. That means every scrap of information related to that contract — including financial projections, executive salaries, profit and loss statements, and operating overhead figures — would be public record. All meetings of boards, panels, or other policy-making entities involved in managing the contract would be open to the public. If a private business doesn’t want to abide by those rules, fine; it can stick to private-sector work and stop bidding on government contracts.

Beyond that, the city needs to set up a task force to look at every private contract San Francisco hands out and determine why the city isn’t doing the work itself. If selling electricity is so profitable (and it clearly is, or PG&E wouldn’t be fighting so hard to keep its illegal monopoly), why can’t the city take over the job and bring in some revenue? If there’s money to be made building bus shelters and selling ads on them — and clearly there is, since Clear Channel Communications, a giant private company, went out of its way to get a contract with the city to do so — why can’t San Francisco make that money for the General Fund? If a private company can make money running the golf courses, why can’t the city?

Sure, there are times when it makes sense to bring in an outside contractor. We’d argue, for example, that the Board of Supervisors needs an independent budget analyst, not tied to City Hall, to monitor budgets and spending. But there are millions of dollars going out City Hall’s door every year to private outfits that aren’t accountable to the public. And there are millions of dollars that ought to be available for badly needed public services that the city is losing because some private operator is making a profit on public resources.

Organized labor has every reason to oppose privatization and ought to play a lead role in creating a new coalition. So should the public-power coalition and the folks who have been demanding sunshine for the nonprofits. But everyone who uses public services and pays taxes in San Francisco is affected when city money gets stolen, wasted, or diverted. It ought to be a broad-based coalition.

There’s an opportunity to turn things around here and make San Francisco the model city that it ought to be. There’s no time to waste.

Editor’s Notes

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› tredmond@sfbg.com

Gavin Newsom will never live down his drunken affair with a close friend’s wife. It’s not a factor in this year’s mayoral race (which shows that San Francisco still has some class), but it’ll come back to haunt him someday, when he runs for governor or senator or wherever he goes next. Bill Clinton’s got the same curse — for all the good and bad things he did as president and everything he’s done since and will do, when he dies the world’s most famous blow job will be in the first paragraph of his obituary. Dumb stuff never goes away.

On the other hand, Clear Channel Communications is one of the most evil corporations in the United States, a sleazy outfit that is trying to destroy radio here and has gone a long way toward monopolizing the industry. Clear Channel treats its workers badly and is notoriously antiunion. It’s the worst sort of unaccountable conglomerate — many of its radio stations operate on remote control, with virtually no local staff, and it’s almost impossible to get through to anyone at corporate headquarters in San Antonio. Lowry Mays, its chairperson, is a big contributor to the Republican Party and to right-wing causes.

And yet none of that stopped the Board of Supervisors from giving Clear Channel tentative approval for a lucrative contract to build and sell ads on bus shelters in San Francisco. The whole thing annoyed me. If there’s so much money in bus shelters, why can’t the city build them and sell the ads and make some cash for the General Fund? But that aside, I have to ask: Why are we doing business with these people? Shouldn’t corporations, which want to be treated legally the same as individuals, be held accountable for their actions and their history?

At least Sup. Tom Ammiano brought up some of Clear Channel’s record. Some labor leaders tried to scuttle the deal. But the bus drivers’ union really wanted the contract approved, because Clear Channel will dump a bunch of money into Muni, so it went through, 9–1, with only Sup. Ross Mirkarimi opposed (and Sup. Chris Daly absent).

Then there’s Sutter Health.

On Saturday, Oct. 20, when nobody read the newspaper, the San Francisco Chronicle reported that Sutter is going to effectively shut down St. Luke’s Hospital in the Mission by turning it into an ambulatory clinic with an emergency room. No hospital beds, no place to put very sick people, nothing resembling the sort of service the district has counted on for decades. Instead, Sutter — which is allegedly a nonprofit but acts like a rapacious and greedy corporation — is going to stick San Francisco General with all of the uninsured sick people in the southeast neighborhoods while it gussies up its properties in the wealthier northern part of town.

The nurses have had to go on strike to demand better care for patients at Sutter. Even Mitch Katz, the city’s public health director, who is not known for blasting the private sector, has complained loudly that Sutter is doing a disservice to San Francisco.

And while all of this is going on, this allegedly nonprofit behemoth wants to build a $1.7 billion, 425-bed hospital at the old Cathedral Hill Hotel site at Van Ness and Geary.

Sutter only likes sick people who have good health insurance or are rich enough to pay cash. Perhaps the supervisors can remember that and hold these assholes accountable when they come to City Hall for a building permit.

Airlines demand corporate welfare

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› news@sfbg.com

The major airlines that serve the Bay Area, with the help of the Hotel Council of San Francisco, are trying to get out of paying millions of dollars in taxes to the city by claiming the right to use a law that was designed to help San Francisco’s poorest residents. And they’re threatening to prevent their employees from staying in the city if the Board of Supervisors doesn’t acquiesce to the corporate welfare demand.

At issue is the city’s 14 percent Transient Occupancy Tax, which is paid by hotel guests. It is the third-largest source of local tax revenue, after property taxes and payroll taxes, bringing in $177 million in the last fiscal year. The only major exemption from the tax is for permanent hotel residents, generally those on the brink of homelessness who live in the run-down single-room-occupancy hotels for months or even years on end.

Major airlines house hundreds of their employees in San Francisco’s hotels each night. They are arguing that because of past court rulings on corporate personhood — in which judges have deemed that corporations have the same rights as individuals — the airlines should be exempt from paying the tax when they rent blocks of rooms for their employees.

The airlines, in collusion with some hotels in the city, have long used the exemption to avoid paying taxes on many of the rooms they rent (about two-thirds, according to the Hotel Council, which translates into millions in lost city revenue every year). A few years ago city officials told the corporations that the exemption didn’t apply to them and that they should be paying the tax.

Enacted in 1960, the Permanent Resident Exclusion exempts from the tax individuals who occupy or have the right to occupy the same hotel room for at least 30 consecutive days. “We looked at the legislative history, and it was clearly put there to help formerly homeless people,” Treasurer José Cisneros told the Guardian. “The city has always said that 30 consecutive one-night stays are not the same as a 30-night stay by an individual.”

The hotels and airlines challenged that interpretation and had their case thrown out of court. So now they’ve turned to the Board of Supervisors in the hope that they can win this chunk of corporate welfare by using threats of an economic exodus.

 

CORPORATE SHAKEDOWN

In October 2004, American Airlines and the San Francisco Hilton filed a lawsuit against the city arguing that airline crew members staying in San Francisco hotels qualified for an exemption from the hotel tax. The lawsuit was dismissed in May 2006 without going to trial, with Superior Court Judge James Warren ruling that the plaintiffs “did not assert and did not present any evidence that any particular room at the Hilton was continuously registered to American Airlines for more than 30 days.”

To clarify any ambiguity in the law, Cisneros in May issued an interpretation stating, “Although an agreement between a person and a hotel may require that the person pay the hotel for a minimum number of ‘guaranteed’ daily reservations for the person’s employees over a period of time longer than 30 days, such an agreement does not create any permanent resident exemption for any guest rooms unless the above criteria are satisfied,” referring to criteria that include “a person is a registered hotel guest” and “that person or any of that person’s employees continuously occupy or have the right to occupy the same room for 30 days or more.”

Yet now, at the request of Sup. Michela Alioto-Pier, the Board of Supervisors’ Government Oversight and Auditing Committee has scheduled a Nov. 19 hearing for the purpose of “explor[ing] the unintended consequences of this decision, including the loss of revenue to the City when the airlines inevitably move their crews to another location in the Bay Area where room rates are more competitive.”

That implied threat comes from Hotel Council executive director Patricia Breslin, who paints a doomsday scenario if the airlines have to pay the hotel tax on every room they rent. Breslin warns that if the Board of Supervisors does not offer concessions to the airline industry, it could bring about an “economic tsunami” that would hit hotels, restaurants, and city government.

Airline employees occupy an average of 1,050 hotel rooms per night in San Francisco, according to Smith Travel Research, an information and data provider for the lodging industry. Given that the tax is collected by the hotels, Cisneros doesn’t have data on how much the airlines should be paying the city. But assuming the airlines negotiate rates of about $100 per night, that would translate into more than $5 million per year.

“We pushed so hard to get them to pay it that they sued us,” Cisneros told us.

Breslin said the airlines have been paying about $1.7 million per year in hotel taxes and that sales taxes generated by airline employees bring another $1.4 million into the city, all money that would be lost if the airlines go elsewhere. She said the airlines have threatened to begin putting their employees in hotels in Peninsula cities near the airport, like Burlingame, San Mateo, and even San Jose, to cut costs. Already Mexicana Airlines has stopped using San Francisco’s hotels for its employees. Other airlines, such as Virgin Atlantic, United, Cathay Pacific, and Lufthansa, have threatened to follow suit.

Breslin said hotels would be forced to lay off cleaners, servers, and other low-income workers due to the loss of business that would accompany the exodus of airline employees. San Francisco, she argues, would “lose a significant revenue stream” if the airlines lose their appeal.

“It will change the economics of San Francisco,” she told us. “This is not a frivolous issue.”

 

CALLING THEIR BLUFF

Granting the exemption would cost the city millions of dollars, but that isn’t the only reason being offered for opposing the gambit. Some city officials simply don’t believe the airlines — or their employees, most of whom are union members, many of whom have contracts specifying their accommodations be in urban centers — will abandon San Francisco.

Sup. Chris Daly, who is on the Oversight and Auditing Committee, is against granting the exemption to the airlines. “They blow smoke all the time,” he told us, referring to major industries such as the hotel and airline industries. “That’s how they get away with not paying taxes.”

Cisneros argues the airlines’ threat to move their employees into suburban hotels isn’t logical, noting that San Francisco hotel rooms are already far more expensive than their suburban counterparts — with or without the hotel tax — and the airlines have always chosen to keep their employees here anyway.

“I just don’t think the threat is realistic at all,” Cisneros said. “If they were basing their decision on which hotels are cheapest, they would have never been staying in San Francisco.”

Recently compiled data and trends in tourism and hotel occupancy rates also suggest that Breslin’s warning of a crippling economic backlash are unfounded. According to an August article in the San Francisco Business Times by Ryan Tate, “Next year promises to be by far the most robust for leisure and business travel in San Francisco since the dot-com boom.”

He continues, “Convention business will reach more than 900,000 hotel rooms in 2008, well above the 740,000 room nights booked by conventions in 2007.” The San Francisco Convention and Visitors Bureau forecasts that overall tourism will top 16 million visitors next year and that visitor spending will exceed last year’s record $7.8 billion.

The taxes the city collects from hotels go toward funding a wide range of public services. Some of the money is earmarked for the Convention and Visitors Bureau and for maintaining convention facilities. Some funds are allocated for low-income housing and rent supplements. The War Memorial Department, the Asian Art Museum, and the Arts Commission all receive funding through the hotel tax as well, with excess dollars poured into the city’s General Fund.

San Francisco’s tourism industry is the city’s largest industry and its second-largest employer, after the city and county government. “You want to make sure your number one industry is protected,” Breslin told us.

Yet the policy that she’s asking the city to enact runs counter to the policies in other major cities, including those thought to be less politically progressive than San Francisco. In Los Angeles, for example, only individuals can be granted exemptions from paying the hotel tax. In Chicago the exemption is even stricter and only applies to people who use hotel rooms as their domicile.

Clear Channel loses a big one

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The San Francisco Board of Appeals did the right thing last week and blocked Clear Channel from using its corporate power to shake down small property owners. The board sided with Cheon Hool Lee, a retired Korean immigrant dentist who owns a building on Market Street, who lost a billboard because Clear Channel yanked it down when he demanded fair rent.

The legal issues were tricky, but the principle wasn’t: The giant conglomerate was acting like the mob. It had to be stopped.

And yet, the Board of Supervisors, usually far more progressive than the Board of Appeals, went along with Clear Channel and gave the evil media barons a twenty — that’s 20 — year contract to sell ads on bus shelters in the city. Only Ross Mirkarimi voted no.

I know it was a tough one for progressives — somehow, Muni management, which wants the money from the bus shelters, convinced the union for the bus drivers to lobby for the contract. And I realize that the estimated $15 million a year Muni will get out of the deal isn’t peanuts.

But I have to ask: How much is Clear Channel making? The company won’t say. All we know is that the contract is very lucrative, because the media barons went to great lengths to get it. Which means the city could have built the shelters itself, brought in even more money for Muni, hired even more bus drivers … and sent a message to Clear Channel.

Nope. DIdn’t happen.

Fisher and his powerful friends

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Why does Republican billionaire Don Fisher have such influence in San Francisco? Why does Mayor Gavin Newsom subvert good planning simply because Fisher tells him to, then sit on the sidelines while Fisher tries to fool voters into creating gridlock in our downtown? Why would Senator Carole Migden want Fisher — who wants to subvert the public education system with vouchers and charter schools — to serve on the State Board of Education, let alone sing his praises in public while appointing him? Why does anyone still listen to the Fisher-sponsored SFSOS, which still draws elected officials to its luncheons? Is our political system so thoroughly corrupted by money that self-proclaimed liberal Democrats are willing to crawl in bed with such an ideological Neanderthal?
At the Yes on A, No on H rally in front of the Gap yesterday, near where they had parked the rented white Hummer (which H deems a “low-emission vehicle,” exempt from parking restrictions), Board of Supervisors president Aaron Peskin framed the issue for those of us who don’t want or need Fisher’s money: “San Franciscans have a clear choice. We can either pursue the Republican policies of the last century and continue to clog our roads and pollute our cities and poison our air, or we can move into the 21st Century.”

Jerry Brown gives City green light to sue Jew

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Photo by Charles Russo

The sun may be shining, but it’s raining legal cats and dogs for suspended Sup. Ed Jew.

On the eve of a preliminary hearing by the City’s Ethics Commission into charges of official misconduct by Supervisor Jew, California Attorney General Edmund G. Brown Jr. has granted City Attorney Dennis Herrera’s application for leave to sue in quo warranto to remove Jew from the Board of Supervisors for failure to comply with the City Charter’s residency requirements .

The ruling comes a little more than three weeks after Mayor Gavin Newsom initiated official misconduct proceedings against Jew and suspended the District 4 supervisor, replacing him, at least for now, with political rookie Carmen Chu.

City Attorney Herrera says that in llight of the Ethics Commission’s preliminary hearing tomorrow, he intends, “to carefully evaluate” the legal options.
“In the coming days, I will decide how best to represent the City’s interest in concluding a crisis that has clouded the legitimacy of San Francisco’s representative government for too long,” Herrera said in a press release.

Tomorrow’s preliminary Ethics Commission hearing takes place at 1:30 p.m. in Room 416, City Hall.

41st Anniversary Special: Bilking the links

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By now, even most nongolfing residents of San Francisco have heard the dire refrain coming from City Hall: San Francisco’s public golf courses are sucking millions of dollars from the city treasury! Dozens of media stories have trumpeted this bleak pronouncement, and city leaders are using the shortfall to push for outsourcing control of the century-old open spaces. But a Guardian review of the Golf Fund shows that the links are not nearly as down-and-out as pro-privatization forces have led us to believe.

Recreation and Park Department accounting documents we obtained show revenues at the city’s six publicly owned golf courses last year were up nearly $1.5 million from 2005 to 2006 and more than $2.2 million dollars from 2004 to 2005, an increase of nearly 30 percent. But the cost of a lavish contract with a large, out-of-state golf-management corporation has risen precipitously over the same time frame and drained most of these new funds.

For the 2006–07 fiscal year the city shelled out more than $3.25 million to Kemper Sports Management to operate the pro shop and clubhouse at the Harding Park Golf Course and its nine-hole neighbor, Fleming. By comparison, in 2004–05, Kemper’s tab at Harding and Fleming was a still eye-popping $2.07 million, but that number is nearly $1.2 million less than what the city had to pay last year. These increased costs, as well as a hefty loan repayment for Harding Park’s botched remodel in 2002 and 2003, have eaten up the links’ improved revenue and forced the city to throw in an extra $1.4 million from the General Fund to keep golf solvent.

"What’s going on up at Harding is a disaster," Bob Killian told the Guardian. Killian ran the city’s golf operations profitably for two decades until 2001. "When I was in charge we had contracts with various managers for the pro shops and the restaurants, and they made us money. They paid us. Now, Harding is run at a deficit. Where the fuck is the money going? What’s it for? Nobody knows. It’s all this big secret…. It’s a scandal."

Kemper’s seven-year deal is unique, to say the least. At every other publicly managed course, the city leases control of the pro shops and clubhouses to outside companies. In exchange for a flat fee paid into city coffers, those companies bear all of the risk and reap most of the rewards of operating the facilities. But at Harding, the city pays Illinois’s Kemper $192,000 per year, regardless of its performance, to act as an on-site manager, plus a 5 percent incentive fee for gross revenues over $6 million. But those guaranteed sums are only the beginning of the bill.

Kemper hires staff, rents golf carts, and orders the supplies to be sold in the pro shop and the clubhouse. Unlike in the city’s lease arrangements at other courses, though, the company bears none of the risk. It simply invoices the city for its expenses, and the city signs the tab. And the tab just keeps growing.

One public-golf insider who declined to be identified for fear of retribution said, "They’ve got this enormous staff there, managers and assistant managers and assistants to assistants of managers. It’s a golf course, not a hospital! I hear the payroll for the restaurant alone is like $600,000. And it’s only open for one shift a day…. They stock their pro shop with top-of-the-line gear that just sits there. If they order 20 Arnold Palmer shirts and only sell two, who cares? The city still pays for all 20."

In an e-mail to the Guardian, Kemper’s general manager at Harding, Steve Argo, told us it has between 60 and 80 employees, depending on the season. Citing this seasonal variability and "competitive reasons," he did not break down those numbers between management and nonmanagement, as we requested.

Both Argo and Katharine Petrucione, Rec and Park’s chief financial officer, attributed much of the added costs at Harding to the opening of a new permanent clubhouse there in late 2005. Argo said the increased revenues from the clubhouse have "more than covered the city’s increase in payments." But while Rec and Park’s ledgers do show that concessions revenues at Harding and Fleming have gone up since the clubhouse opened, the increase in Kemper’s bill has gone up nearly as much. All in all, with Kemper’s multimillion-dollar deal and loan payments for the over-budget remodel at the course, accounts still put the course at more than $500,000 in the red — even though a round of golf there now costs well over $100 and Kemper is still making a handsome profit.

It doesn’t end there. Petrucione said Kemper’s contract costs taxpayers even more than meets the eye. Because the company submits monthly and yearly budget projections as well as reams of invoices and expenses for reimbursement, Rec and Park staffers spend hours examining Kemper’s paperwork and activities — essentially managing the manager. When we asked her for an accounting of how much the Kemper contract costs the city in staff hours for these oversight duties, Petrucione replied, "It definitely requires more time and effort … than a lease agreement [like those at every other course] would."

During a recent radio interview, Sup. Jake McGoldrick called Rec and Park’s deal with Kemper "the worst contract I’ve ever seen." He added, "We don’t have a golfer problem. Golfers are coming out and playing. We have an accountancy problem."

The golf insider we spoke with echoed McGoldrick’s sentiments: "Business is up like 30 percent this year, but Kemper’s contract is jeopardizing the whole department…. If we redid the greens, tees, and fairways [at the other courses], just Band-Aid stuff like that, we would have the premier municipal system in the country. But instead they’ve given this cushy deal to a company from Chicago with no connection to San Francisco. It’s so unfair."

Despite the controversy over Kemper’s all-expenses-paid arrangement, Mayor Gavin Newsom, Rec and Park general manager Yomi Agunbiade, and others at City Hall have been using the deficits largely brought on by Kemper’s contract to push for more private control of the city’s links. In June the Mayor’s Office put forward a plan to outsource not just clubhouse and pro-shop management but all golf operations at the city’s premier courses, including Harding. The proposal was tabled after several contentious hearings at the Board of Supervisors, but many observers expect that it will make its way back to the board in the near future.

"In a perfect scenario, the city could [manage the courses efficiently], but the city has proven that it doesn’t have the ability to do it," Sup. Sean Elsbernd told us in July. Elsbernd has been one of the most vocal supporters of bringing in private golf management.

But McGoldrick, Killian, and other opponents of the idea point out that the city provided quality, inexpensive golf for nearly 100 years. They worry that private managers will find profit in higher greens fees, more part-time workers, and lower salaries and fewer benefits for full-time staff. But beyond those concerns, they see the mayor’s plan as yet another example of publicly owned assets being offered up for private gain.

The courses, McGoldrick told us, are "priceless…. We can’t just dump [them] because you’ve got folks from the Mayor’s Office and his Rec and Park Department who don’t want to be bothered."

In his endorsement interview with the Guardian, Newsom said about the golf courses, "You gotta deal with the reality of where we are and what our core competencies are. Golf courses do not reflect a core competency of government. We’re losing hundreds of thousands of dollars and about to lose over a million dollars a year, and that comes from somewhere. So rather than continuing to do what we’ve done and hope for a different result, we’re looking at best practices across the country and finding ways to manage our assets differently, and I’m not apologetic for exploring those things."

41st Anniversary Special: Private practice

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Low-income tenants cheered late last year when the San Francisco Department of Public Health ended its housing contract with the John Stewart Co. But no one expected the alternative would be a secret $5 million deal between DPH officials and a preferred vendor.

In fact, the DPH has opened a new chapter in privatization by creating a dubiously accountable, quasi-independent nonprofit while paying someone else to operate it with a sole-source contract.

The health department leases several single-room-occupancy hotels in San Francisco that house mental health and substance-abuse patients through a program called Direct Access to Housing, part of a laudable nationwide trend toward deinstitutionalizing such medical clients and changing how the formerly homeless receive services.

The Camelot on Turk Street and Le Nain on Eddy Street were among those managed by John Stewart until last autumn. Mercy Housing oversaw two more. But there were problems; tenants complained about the Stewart company’s management, and political organizers last year charged that desk clerks at some of the buildings prevented them from registering tenants to vote.

"If you’re part of a larger company that just sees themselves as a more generic property-management company," said Marc Trotz, director of the health department’s housing office, "there isn’t necessarily the training and skills development that needs to be there to handle the complexities that come up on a daily basis with the population we’re dealing with."

So the health department’s answer was to broker an exclusive $5 million contract with a nationwide nonprofit based in San Francisco known as the Tides Center. Tides doesn’t do any of the heartwarming outreach we tend to associate with nonprofits. Instead, the outfit handles the boring administrative functions like payroll and human resources for community projects created by others.

The project in this case is Trotz’s brainchild Delivering Innovation in Supportive Housing, which essentially exists as a nonprofit only on paper. There’s no board of directors. There are no federal tax forms outlining expenses and revenue. And Tides doesn’t itemize projects like DISH in its annual financial statements. So there’s no easy way for the public to track the money that goes into the project.

Yet DISH has so far never been forced to compete for property-management contracts like any other nonprofit wanting to do business with the city. That means the DPH gets the best of both worlds, paying someone in the private sector to manage its books and not having to subject its pet project to the competitive atmosphere of contract bidding.

Further, since Tides is technically the employer of record for DISH’s 60 or so employees, they exist in an ethereal world where they don’t fall under the city’s salary and benefits structure, but unions can’t reach them unless they’re willing to organize all 200 projects managed by Tides nationally.

Needless to say, none of this is sitting well with the nonprofits and unions that insist they weren’t informed of the plan until it was off and running.

"I feel like at union nonprofits, the turnover’s much lower, the training’s higher, and if a manager is abusing a tenant, for instance, a union worker can make a complaint to a city agency, write them up, do something without being afraid for their jobs," said Sarah Sherburn-Zimmer, a former organizer for the Tenderloin Housing Clinic. "And we just give better care."

The THC, whose workers are represented by Service Employees International Union Local 1021, says it was never formally invited to bid on DISH, despite the fact that it does extensive work with the city and manages more than 1,500 units of low-income housing.

"All they had to do to find out was send a letter or call us…. The fact that they made the effort to set up their own entity kind of shows that’s what they wanted to do," THC director Randy Shaw said.

The Tides contract so annoyed Board of Supervisors president Aaron Peskin that he drafted a resolution pointing out that Mayor Gavin Newsom signed an executive order in 2004 calling for maximum competition in city contracts.

"This Board of Supervisors has been on record for years in wanting to make sure contracts are competitively and fairly bid," Peskin told the Guardian. "This whole thing seems rather bizarre. The government was in essence contracting with itself."

The health department’s Trotz dismisses this criticism, saying sole-source contracts were designed in the first place to allow for agreements like the Tides deal, which he calls a pilot project. Next time, he promises, the department will open the contract to bids. Trotz added that Tides is responsible if a DISH employee screws up, and it faces an annual monitoring probe by DPH staffers, just like any other contractor.

"I know now that THC and the union seem to be upset by this," Trotz said. "What we’re saying is we’ve heard that and we are doing what we always intended to do, which is run a two-year pilot and put a [request for proposals] out on the street and ready for people to apply to prior to the start of the next fiscal year."

Of course, no one’s suggesting Tides and DISH will necessarily do a poor job handling supportive housing. Shaw said lefties were the first to argue nearly three decades ago that nonprofits could address public health much more sensitively than did Dianne Feinstein’s mayoral administration of the 1980s. Last year the health department did $174 million worth of business with nonprofits. While unions have been slow to organize nonprofits, the trend is growing, but Tides and DISH seem structured to stiff-arm them when covert, sole-source contracts haven’t done that already.

"This obviously was a secret decision," Shaw said. "[The DPH] never consulted with anybody. They just did it. I don’t want to comment on the health department beyond what I’ve said. But this experience has left people very cynical about dealing with the health department [and] the way they handled the whole thing."

41st Anniversary Special: Wrecked park

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The San Francisco Recreation and Park Department has a long history of maintaining parks, community centers, and other recreational offerings. In fact, it controls more land in the city than any other entity, public or private. But after seeing its budget repeatedly slashed during lean fiscal years, the underfunded department has become a prime target for some controversial privatization schemes.

There are ongoing efforts to privatize city golf courses, supported by Mayor Gavin Newsom and Rec and Park general manager Yomi Agunbiade (see “Bilking the Links,” page 22). And there are ongoing fears that the city intends to privatize its popular Camp Mather vacation spot, something the RPD studied a few years ago and Sup. Jake McGoldrick has fought and highlighted.

Rec and Park has identified $37 million in needs at Camp Mather — the product of a private study the agency has been unable to fully explain to the public (see “From Cabin to Castle,” 4/4/07) — but left Camp Mather off a big bond measure planned for February 2008.

“They say $37 million you need up here, and how much you got in there for the ballot measure? Zip, zero,” McGoldrick told the Guardian. “It’s a familiar pattern: you underfund the hell out of something, and then you turn around and say, ‘We, the public sector, cannot handle taking care of this.'<0x2009>”

Rec and Park spokesperson Rose Dennis denies there are plans to privatize Camp Mather or that its omission from the bond measure is telling. “Many people disagreed — including you — with the funding needs and whether we could back it up,” she explained as the reason for its omission from the bond measure.

In his Oct. 1 endorsement interview with the Guardian, Newsom said, “We actually made some commitments just this last week with Sup. McGoldrick to help support his efforts, because he’s very protective of Camp Mather, and I appreciate his leadership on this, to help resource some of the needs up there without privatizing, without moving in accordance with your fears.”

And while Newsom said he hoped to avoiding privatizing Camp Mather, he refused to say he wouldn’t: “I’m not suggesting it’s off the table, because I’m not necessarily sure that the conditions that exist today will be conditions that exist tomorrow, and I will always be open to argument.”

But at least the Camp Mather and golf arguments have been happening mostly in public. That’s what voters intended in 1983 when they passed Proposition J, which requires public hearings, a staff study, and a vote by the Board of Supervisors before city services can be privatized. Yet over the past couple of years, there’s been an effort to quietly shift operations at a half-dozen rec centers away from city programs and toward private nonprofits.

It’s called Rec Connect. Its supporters bill it as an innovative effort to bring much-needed recreation programs to underserved, low-income neighborhoods. “This is a pilot program to see if a collaboration between a community-based organization and a rec center yields a richer program and a more engaged community,” said Margaret Brodkin, director of the Department of Children, Youth and Their Families, which created the program and oversees that and other uses of the city’s Children’s Fund.

But to members of the Service Employees International Union Local 1021 — which includes most city employees and has filed grievances challenging Rec Connect — the program is a sneaky attempt to have underpaid, privately funded workers take over services that should be provided by city employees, who are better paid, unionized, and accountable to the public.

“The city took funds from the city’s coffers and gave them to the Department of Children, Youth and [Their] Families,” Margot Reed, a work-site organizer for the union, told the Guardian. “DCYF is using these funds, through Rec Connect, to contract out to private nonprofits work that rec staff were doing for a quarter of the cost.”

Brodkin was the longtime director of Coleman Advocates for Children and Youth — a perpetual thorn in the side of City Hall and the author of the measure that set aside some property taxes to create the Children’s Fund — before Newsom hired her to head the DCYF. She sees her current role as a continuation of her last one, and she sees Rec Connect as an enhancement of needed services rather than a privatization.

“There is a commitment that no jobs would be lost. I’m a big supporter of the public sector,” Brodkin said, while acknowledging that the RPD is chronically underfunded. “I am certainly aware of the resources issue at Rec and Park…. I’d be a happy camper if the Rec and Park budget was doubled. But I’d still believe in this program and say it offers a richer experience.”

Rec Connect began in 2005 with a study that looked at unmet recreational needs and evaluated facilities that might be good places to bring in community-based organizations to offer specialized classes. The whole program was financed through a mix of public funds and grants from private foundations. The three-year pilot program started just over a year ago.

“The Rec Connects,” Newsom told the Guardian, “are a way of leveraging resources and getting more of our CBOs involved and using these great assets and facilities, instead of limiting use to the way things have been done.”

Rec Connect director Jo Mestelle denied that the initiative is a privatization attempt.

“Rec and Park brings the facilities, the sports, and traditional recreation. The CBOs bring the youth-development perspective and nontraditional programming,” Mestelle said. “Hopefully, together we build a community that includes youth-leadership groups and advisory councils.”

Few would dispute the need for more after-school or other youth programs, particularly in the violence-plagued Western Addition, where some of the Rec Connect centers are. But the means of providing these programs is something new for San Francisco, starting with the fact that even though Mestelle works in the DCYF office, her salary is paid for entirely by private foundations.

That relationship and those funders aren’t posted anywhere or immediately available to the public, but Brodkin agreed to provide them to the Guardian. They include the Hellman Family Philanthropic Foundation ($50,000), the Hearst Foundation ($50,000), the San Francisco Foundation ($128,000), the Haas Foundation ($100,000), and the SH Cowell Foundation ($150,000).

Brodkin and Mestelle characterized those foundations as fairly unimpeachable, and Brodkin defended the arrangement as part of a national trend: “The thing that’s odd about SEIU’s perspective is this is happening all over.”

That’s precisely the point, SEIU’s Robert Haaland says.

“It’s been a strategy since the ’70s to, as [conservative activist] Grover Norquist calls it, ‘starve the beast,'<0x2009>” or defund government programs, Haaland said. “On a national level there is a lot going on that impacts us locally.”

Minutes from a recent Recreation and Park Commission meeting confirm that rec center directors have only about $1,000 each year to cover the cost of buying basketballs, team jerseys, referee whistles, and other basic sports and safety supplies. The SEIU grievance also notes that recreation staff positions have decreased by a third just as senior management positions increased by a third.

“We don’t have enough dollars for $20-an-hour rec center staff who are directly responsible for the kids and are well known to the community. We believe kids deserve great coaches, consistency, longevity, and commitment,” Reed said.

SEIU Local 1021 chapter president Larry McNesby is also the Rec and Park manager who oversees Palega Park, one of the Rec Connect sites. He told the Guardian that while his rec directors are “under pressure from the mayor to show him numbers of people that they are serving,” Rec and Park’s new online registration fails to reflect the “hundreds of drop-ins” that rec staff serve on a daily basis.

But he said the department has been set up to fail by chronic underfunding.

“I’d love Rec Connect and DCYF to be on a level playing field, because my directors could out-recreate theirs any day,” McNesby said. “You can’t just eliminate our jobs and replace them with someone who makes just above minimum wage.”

Actually, Brodkin and Mestelle note that negotiations with SEIU over Rec Connect have resulted in a guarantee that no jobs will be replaced and an agreement by the city as to 250 different tasks that the Rec Connect CBOs can’t perform. Still, they say the program brings innovation to a stagnant city agency.

“Before Rec Connect the rec centers always had a Ping-Pong table and some board games, but some of them were really poor, many were tired looking, none had computers or Internet. So we’ve had to think outside the box. Rec [and] Park is a big department, and it’s not always efficient,” Mestelle said.

Public records show that in 2006, the DCYF, whose primary function is to administer grants, sent $1 million in public money to Rec Connect from the Children’s Trust Fund, a pool of cash the city gathers each year by levying 3¢ per dollar of property tax.

Both Rec Connect and city workers stress the importance of offering a range of good programs to young people. “Our work is at a more social level,” McNesby says. “Every minute a kid spends in a rec center is a minute they’re not breaking into a car or victimizing someone or being victimized.”

The question is who should provide those programs. “It’s society’s value system that controls where the money goes,” Rec and Park spokesperson Dennis said. “It’s a really provocative discussion. There are some very compelling trade-offs argued in convincing fashion by intelligent people on both sides. These aren’t easy decisions.”

But the union people say that when it comes to Rec Connect, that discussion isn’t happening in public forums in a forthright way. As Reed said, “Gavin Newsom never went to the voters and said, ‘Here’s what we want to do: cut the rec staff and bring in private nonprofits.'”

Green City: Meeting the Climate Challenge

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

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

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

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

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

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

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

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

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

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

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

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