Budget

Stopping PG&E’s fraudulent initiative

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EDITORIAL A ballot measure that could spell the end of public power in California is headed for either the spring or fall 2010 ballot — and so far, the opposition is missing in action. This is a profoundly important issue, and every elected official, city council, board of supervisors, and utility agency in the Bay Area needs to immediately come out in opposition and start organizing to defeat it.

The source of the proposition, of course, is Pacific Gas and Electric Co. PG&E is facing political wildfires all over the state as communities rebel against bad service and high rates. In Marin County, a community choice aggregation (CCA) plan is moving along, full speed. In San Francisco, CCA is a little slower, but still on track. These efforts could turn two of PG&E’s most profitable territories into public power beachheads. Meanwhile, in San Joaquin County, a public power movement is trying to take over part of PG&E’s service area, and PG&E just spent millions of dollars fighting a similar effort in Davis.

So the utility has decided to fight back — not just in the local communities where activists can beat PG&E back, or in the state Legislature, where the giant company has fewer and fewer friends, but with a ballot initiative that has a misleading name, a misleading political message — and tens of millions of dollars to back it up.

Signature-gatherers are out in force already, collecting names for a measure called "New two-thirds requirement for local public electricity providers." The paid petition crews are describing it as a "right to vote" measure, giving the public a chance to weigh in on government action.

What the measure would really do is require a two-thirds affirmative vote before any public power agency could add new customers, or any local agency could get into the power business. It would force the existing CCA movements to get two-thirds of the local voters to approve their efforts.

That’s an almost impossible standard — particularly when PG&E spends millions to block public power efforts everywhere they appear.

The two-thirds voting requirement is increasingly being assailed as undemocratic. The state Legislature has been paralyzed by its own two-thirds requirement for passing a budget, and there are multiple moves to reduce that threshold. The two-thirds mandate for passing local taxes has been widely blamed for driving cities and counties to the brink of fiscal ruin.

And yet PG&E is trying to add a new, crushing mandate — aimed entirely at snuffing out public power advances. The impact on the state will be enormous. As Megan Rawlins reports on page 8, high PG&E rates and the lack of public power cost the San Francisco economy alone as much as $2.8 billion a year. Multiply that by a factor of 10 or 20, and you see what a devastating financial blow this PG&E move would be to California’s crumbling economy.

So where, exactly, is the opposition?

Sup. Ross Mirkarimi called a meeting last week at the offices of the Utility Reform Network (TURN) to try to get other public power communities involved in a statewide campaign. But it’s been slow going.

That’s not going to work. Every elected agency in the Bay Area needs to get this on the agenda — now. Every city official (starting with Mayor Gavin Newsom, who wants to be governor) and every state official (starting with Attorney General Jerry Brown, who also wants to be governor) needs to loudly and publicly denounce this move, help establish a high-level coalition to beat it back, and start raising money for the campaign.

There may be a legal strategy, too. The law that authorized cities and counties to set up CCAs bars PG&E and other private utilities from interfering with local CCA efforts — and it’s pretty clear that this initiative is designed to do exactly that. City Attorney Dennis Herrera needs to immediately investigate the possibility of suing to get this disastrous initiative off the ballot. *

A new California tax revolt

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OPINION Don’t miss the struggle underway over the future of the University of California.

Some see it as just another chapter in the unfolding story of the state’s economic decline. That’s partly true. But what’s really interesting is what it could become.

If it’s played right, the showdown over university fees and salaries could inspire a revival of sorts of the California tax revolt. Except this time, the rebels wouldn’t be tax-haters, like we saw in 1978 with Prop. 13. This time, the protests would be coming from parents and future parents of UC kids, and future employers of UC graduates. They’d be protesting, alongside UC students and employees, the ever-steeper fee hikes — essentially an education tax — that threaten to make our public universities cost as much as any private school.

This pro-tax movement would force a rewrite of state law, arguing that higher education is a public good so important that property-owners and corporations are morally and economically obliged to chip in.

You already know the back story. The state and global financial crises have pushed the UC system into intense contraction, compounding years of rising student costs. Top UC administrators receive bonuses while issuing pay cuts, layoffs, mandatory furloughs, and sharply increasing student fees (undergraduate costs are rising by $2,500, to more than $10,000 next year, with more hikes likely soon).

Many people believe the fee hikes are inevitable. Is it true? Or have we been merely well-trained by the Thatcherian promise that there’s no alternative to a shrinking public sphere? In fact, the administration’s budget claims are impossible to verify because much of the university budget is, literally, a state secret.

What’s clear is that the UC system is less and less accessible to everyday Californians, who are already languishing in a flailing public school system. Meanwhile, the state’s economy depends heavily on UC graduates, who are both innovators and laborers in every economic sphere.

We know how we got here. Prop. 13’s budget-starving effects have intersected effectively with the prevailing inclination to privatize just about everything. The global financial crisis — and California’s particularly harsh variation of it — created the opening for long-imagined cuts across the board.

But the latest budget moves have jolted faculty and students awake. Bit by bit undergraduates, who are typically fairly mono-focused on their grades and individual futures, are paying attention. Graduate students from departments as diverse as English and chemistry are convincing colleagues to drop their dissertations (momentarily) to organize demonstrations.

If you know anything about academic life these days, in an age of constant budget cuts, economic restructuring, and individualistic competition, then you know how unusual this is. Widespread political mobilization on campus is rare. But on Thursday, Sept. 24, faculty are staging a systemwide walkout from classes. That same day, rallies, marches, direct action, and union pickets are planned in what could be the beginning of a season of protest on all ten campuses.

Let’s be real. In isolation these protests will simply be a marker on the steep downhill slide of our educational system.

But with broad and consistent community support, the campus insurrection could merge with tax-reform efforts already underway to form a California pro-tax revolt, a movement for property tax and budget reform to reverse Prop. 13’s ill effects. Pro-taxers could harness campus activism, arguing — perhaps even for the sake of the economy — to save public education in California. *

Rachel Brahinsky is a PhD candidate in the geography department at UC Berkeley. For more information, visit www.gradstudentstoppage.com/news-and-events.

Prison report: What the state really wants

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By Just A Guy

Editors note: Just A Guy is an inmate in a California state prison. His dispatches appear twice a week.

I guess this is sort of a continuance from my last blog, which was, What Plan?My sentiment hasn’t changed — what the California Department of Corrections and Rehabilitation has offered the three-judge panel is a “plan” that will surely get rejected.

The political rhetoric indicates that the state will fight — but it really is weak rhetoric, spoken just between the ears of constituents by politicians who want to appear tough on crime.

For those who that don’t deal directly with lawyers and politicians on a daily basis, the “we-will-fight-the-feds” speech really is weak. They have to say that — to appear tough on crime and strong for public safety (in their minds anyway). But I believe a good percentage of them are silently grateful for the escape granted to them by the feds. Ultimately, the court will reject their weak plan and take over long enough to release dozens of thousands of us .

If CDCR and the politicians who say they’re against releases felt as strong as they would have you think, a much more robust, pragmatic, well-thought-out process to deal with overcrowding would have been presented.

The Republicans claim to be against big government. If they really thought that way about the release scenario, they would have pushed for a plan that would have been acceptable to the courts and kept the big federal government out of the California prison system.

The Democrats who speak against releases and federal interference are just hypocrites scampering for a way to ride out the potential political fallout they perceive if they don’t “speak out” against releases.

Meanwhile, the ones who are speaking up for sanity are not getting the shaft that the others so feared.

The long-term results of the current budget cuts for health care, welfare and education are not seen as threats to public safety. But its so right in front of everyone to see and it’s not too complicated to explain nor to understand:

— Cuts to welfare mean more people have to find a way to feed themselves and their families. Consequently, they may steal or deal drugs.

— Cuts to health care mean less money to pay for you and your family’s health — consequently people will steal or deal drugs to pay for health care.

— Cuts to education mean a less-educated workforce that can’t get jobs because the economy sucks so they get on welfare …. oops, there is no welfare. Consequently, they steal or deal drugs to pay for food or healthcare or both.

Of course, there are those that wind up on drugs because it’s easier to worry about the next high than your next meal.

40,000 now — or what, 400,000 in five years?

MisterMayor? Is anybody home?

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By Rebecca Bowe


Video by Sarah Phelan

SEIU Local 1021 paid a visit to Mayor Gavin Newsom at his City Hall office yesterday, but his doors remained closed and locked. It won’t be the last time Newsom will hear from them, however. The union is launching an aggressive campaign to “dog the mayor,” organizer Robert Halaand told the Guardian, to pressure him to uphold the city’s commitment to comparable worth.

In 1986, San Franciscans approved Proposition H to enshrine the principal of comparable worth — ensuring pay equity for jobs that are held predominantly by women and people of color in an effort to combat institutional sexism and racial discrimination. Since certified nursing assistants (CNAs) and unit clerks employed in San Francisco’s public hospitals fit that description, their pay was gradually increased in the years following the passage of Prop. H.

However, budget cuts made in recent months resulted in those hospital employees getting cut and simultaneously reclassified into lower-paying positions. From SEIU’s perspective, the downgrades signify a form of discrimination and the reversal of a hard-won gain for women and people of color in San Francisco.

Editor’s Notes

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Tredmond@sfbg.com

I’m really glad that you can watch the state Legislature on streaming video, because it gave me something to do Friday night. For a couple of hours, I sat there transfixed, flicking from the Assembly channel to the Senate channel, as the exhausted and somewhat punchy leaders of our state government blazed through about 100 different bills.

I think my favorite moment was when the Assembly Republicans tried to derail AB 962, a bill by Assembly Member Kevin De Leon (D-Los Angeles) that bans the sale of mail-order ammunition. De Leon tried to explain how reasonable the measure is — you can still order ammo on the Internet, but it has to be delivered to a licensed gun store, someplace where a clerk can check to make sure you’re over 18 and not a felon. He spoke of teenagers in his district ordering thousands of rounds of deadly bullets and getting them delivered to their doorsteps.

But oh my, the GOP was outraged. One Assembly Member announced that this was a violation of the Second Amendment and started chanting "let my people go." Another described a letter she received from a senior citizen who apparently had trouble getting around but needed a thousand rounds of live ammo for a "cowboy reenactment." The guy can’t drive to a gun store, but he can shoot live bullets at other old cowboys? What a great country.

At any rate, the Assembly passed the bill, with the minimum 41 votes, and the governor will now get to decide once again if he’s with the gun nuts or reasonable law enforcement.

I was a little worried that the modest prison reform bill would fail. Barely enough Assembly Democrats supported it, and some of the more liberal state Senators said it didn’t go far enough. Which it didn’t, and it doesn’t, and it’s at best a weak plan that could lead to the release of 17,000 nonviolent inmates. But the heart of the original bill, which called for a commission to review the state’s insane and often arbitrary sentencing policies, died. And some Assembly Democrats — including San Francisco’s Fiona Ma — refused to support a proposal to release more inmates to alternative custody, including home detention with electronic monitoring. So an alternative-release bill never made it to the floor.

That means the state is at least $200 million short of the cuts it needs to make in the prison system to balance the budget — cuts that were already included in the fiscal plan approved this summer. And California is still out of compliance with the federal courts, which have ordered the state to release some 40,000 inmates.

Something’s got to give.

The water system isn’t getting any better, either. The five key water bills failed to get approval, so it appears the Legislature will be coming back for a special session on water. Maybe one on education, too. Maybe more prison reform will come up in those sessions. Maybe Fiona Ma will realize that unlike some moderate Dems, she runs no risk of losing reelection over prison releases and can vote the right way next time.

And maybe Tantalus will get to eat some apples. Last I heard, he was still hungry.

Will prison reform survive?

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By Tim Redmond

The governor agreed to cut $1.2 billion out of the California Department of Corrections and Rehabilition budget this summer, but ducked the tough question of how to do it, leaving that up to the Legislature — which also can’t quite reach an answer. A moderate, watered-down bill that Speaker Karen Bass pulled together scraped through the Assembly, but is stuck, like so many other bills, in battles over the final language. As Brian at Calitics puts it:

The Assembly plan doesn’t have enough cost savings (or enough spine) and the Senate seems reluctant to pull the trigger on a half measure

Some weak Democrats, including Fiona Ma, refused to vote for the moderate bill, and now the Senate leaders are saying they want a stronger bill, which gives some of them a reason to vote against it. It takes political courage (and common sense) to recognize that most inmates are getting out anyway, and that early, supervised releases of nonviolent prisoners isn’t going to harm the public in any way.

So if nothing happens here, we’ll be stuck this fall with a big problem: A $1.2 billion hole in the state budget, and no plans to fix it.

Think tanks: Left gains in media expert citations

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New FAIR Study

Right Ebbs, Left Gains as Media ‘Experts’
Think tank balance still skews right

9/3/09

FAIR’s just-released annual think tank study shows think tank citations declining for the fourth year in a row in 2008, as newspaper column space devoted to national and international news continued to shrink. The decline was particularly notable for conservative think tanks’ citations, while progressive think tanks increased in number.

The study, a special online-only feature of FAIR’s Extra! magazine, is available at http://www.fair.org/index.php?page=3857.

Among the study’s findings:

-The overall decline in citations primarily hit conservative or right-leaning think tanks, whose share fell from 36 percent to 31 percent in 2008, while progressive or left-leaning think tanks increased from 17 percent to 21 percent.

-Centrist tanks still dominated with 48 percent, and the centrist Brookings Institution, the top-cited think tank, had more than twice as many citations as its nearest competitor, the conservative American Enterprise Institute.

-Progressives were cited 30 percent less than conservatives, and half as often as centrists.

-Progressive and left-leaning think tanks took a record five spots in the top 15 most-cited list, and had by far the greatest percentage increase of citations in this annual survey. The most notable increase was in progressive think tanks with an economic focus, such as the Economic Policy Institute, the Center for Economic and Policy Research and the Center on Budget and Policy Priorities.

Michael Dolny, author of the study, noted, “Both the economic crisis and the poor showing of conservative candidates in the 2008 elections appear to have raised questions about the role of conservative think tanks.” However, pointing out that despite these gains, progressive think tanks are still underrepresented compared to their centrist and conservative counterparts, he also observed that “we are still a long way from true diversity of news sources.”

Prison report: Playing politics

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By Just A Guy

Editors note: Just A Guy is an inmate in a California state prison. His reports run twice a week.

“We should not play politics with public safety.” That’s what Assembly member Fiona Ma states as part of her argument against the bill that proposed early releases as part of how California will make up for slashing $1.2 billion from the vast coffers of the California Department of Corrections and Rehabilitation. Those coffers, incidentally, have more in them than do the coffers for higher education. Oddly, Ma is a Democrat out of San Francisco.

We live in a state that prides itself for its innovation, its technology and its forward thinking. These characteristics have made California great. But I don’t think that innovators and forward thinkers seem to be running the Assembly or Senate.

We are supposed to be progressive, so we decriminalize pot for medical use — but ban gay marriage and pass laws like three strikes?

Forward thinkers, these politicians, so forward that even their hindsight is not 20-20 — because three strikes is what got California into this big prison mess in the first place.

Don’t you remember all those stories about people getting life sentences for stealing bicycles and pizza?
What they really used three strikes (consciously or not) for is to create an industry out of crime and prisons, an industry in which thousands of families now are able to live the American dream and make their very adequate living – and the politicians can create long political lives for themselves by destroying many thousands of other dreams, at the public’s expense.

If public safety were really the number one priority of politicians and those who proclaim it, they would take off their broken glasses and go get a second opinion as to what the results of their pitiful budget and myopic laws are really resulting in: Less public safety in the future.

Amazing that we can see the results of harming the earth through abuse, that we know that if you smoke you’ll probably die, if you beat your kids they will probably beat their kids, etc …. Yet we can’t seem to see that if you spend more on prisons than on higher education, if you take away further money from K-12, from welfare and from health care, that you will be creating more of that, long term, which you say the public needs protection from.
If they were really concerned about your longterm safety, and not their political careers, they would vote for the lesser of two evils — which is to let those people out now that are costing $50,000 a year, and apply those funds to the future of public safety. (I bet if you release 27,000 people and give them each $50,000 a year, not too many will come back!)

Ahh — but what about the redundancies that would be created and the officers that would be laid off because they had to close seven or more prisons? You see the cycle folks, do you? It’s obvious, it’s plain, you can buy it two for one, 24/7/365 at Lenscrafters.

I wonder if Fiona Ma and the others voting against releases up for reelection next year are running on a tough on crime platform.

We should be tough on some crime, but often toughness is predicated on money (Dante Stallworth) and not on the crime.

We are hypocrites, us Californians. We every day we spend more on prisons than college, or have another person do any other day for a victimless crime.

Lastly …. more hypocrisy: Phillip Garrido may not be charged for some of the crimes he committed because the statute of limitations has passed and those crimes will never be prosecuted. But many in prison are doing life, or getting their sentences doubled or tripled, for crimes that happened 10, 20 or even 30 years ago. Why isn’t there a statute of limitations from your past?

Did you ever forgive the high school bully that picked on you because you had four eyes — or are you going to hold that against him forever?

Move on, California. They have corrective surgery now — and maybe that bully is your ophthalmologist.

Flash: Yee wants to sell the Cow Palace!

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By Tim Redmond

Okay, this is pretty radical:

State Sen. Leland Yee has been a bill that would force the Cow Palace, a state-owned operation, to sell 13 acres of land to Daly City. Okay, we’ve got some problems with that, but basically, the idea is to force the Cow Palace folks to negotiate a deal with a developer for a long-term lease so that neighborhood can get a supermarket and some other amenities.

But now, at the last minute, with only days left in the legislative session, Yee is trying to amend the bill to authorize the sale of the entire site — 63 acres of public land.

“We were hoping for a lease deal, but that hasn’t happened,” Adam Keigwin, Yee’s press spokesperson, told me. “That neighborhood has no grocery store. The land is currently underutilized. The governor wants us to include the entire parcel in the bill.”

So in cooperation with Gov. Schwarzenegger, Yee is preparing to allow the state to sell off 63 acres of public land. That’s a huge site, a vast amount of immensely valuable property in one of the densest urban areas in America.

Joe Barkett, CEO of the Cow Palace, is (not surprisingly) upset: “The Cow Palace is an historic institution with wonderful memories for many people,” he told me. “To try to sell it off in this manner is a disservice to the community.”

Keigwin notes that the bill doesn’t mandate that the Cow Palace be torn down; “all it would do is change the ownership.” And that might not happen right away; “the governor’s office agrees that this might not be the best time to sell.”

But the governor and Yee are also looking for cash to address the horrifying budget deficity, and this is one potential source of millions and millions of dollars.

The problem is that once you sell public land, it’s gone, forever. And with all the needs in San Francisco and Daly City — affordable housing, parks, cultural facilities as well as a supermarket — there ought to be a way to keep this in the public sector. I asked Keigwin about some sort of public development authority, and he agreed that was a nice idea, but “that’s never happened at the state level.”

Folks: This is a bad idea. I’m in full agreement that the site is underutilized, but I have this visceral opposition to selling off 63 acres of land to a private developer.

And if the Assembly goes along, this will happen in a matter of days.

Fiona Ma votes against prisoner releases

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By Tim Redmond

Only a small handful of Democrats voted against the weak prison-reform bill that narrowly passed the state Assembly Aug. 31. Among those joining the entire GOP caucus: Fiona Ma of San Francisco.

Ma’s always been a bit more conservative than her San Francisco colleagues, but this one is over the top: The bill was already watered down to be so mild that it won’t even come close to making the cuts needed to balance the California Department of Corrections and Rehabilitation budget. Proposals calling for the early release of old and sick inmates (people very unlikely to re-offend) were stripped from the bill. Any reasonable approach to the prison crisis would include the early release of tens of thousands of inmates who are serving overly lengthy sentences for nonviolent crimes; all of these inmates will be released soon anyway, and the notion that allowing a drug offender to serve three and a half years instead of four will somehow impact public safety is nuts. But that wasn’t even on the table; the final bill was designed not to scare away moderate Democrats.

Nevertheless, Ma voted no.

I couldn’t reach her on the phone and she didn’t respond directly to my email, which is unusual. But I did get a statement from her press spokesperson, Nick Hardeman, which reads as follows:

“While reducing costs is important to fix our budget crisis, we have to be responsible when it comes to public safety. If effective services are not in place as inmates re-enter society these cost savings will be pointless. As we make these reforms, our top priority should be to decrease recidivism rates and give individuals the appropriate tools to become productive members of society. We should not play budget politics with public safety and I would prefer a substantive, open process when making reforms of this magnitude.”

Wait: “We should not play budget politics with public safety?” That sounds like a press release from the police lobbies.

The water wars

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rebeccab@sfbg.com

When arch-conservative Fox News host Sean Hannity decided to weigh in recently on the contentious — and immensely complicated — issue of California water policy, here’s how he summed it up: "Farmers in California are losing their crops, their land, and their livelihood — all because of a two-inch fish!"

Television viewers were treated to scenes of the Central Valley, showing a lush field of crops — followed by a dusty, withered almond orchard that has been cut off from water exports from the Sacramento-San Joaquin Delta. A news anchor informed viewers that the nation’s most productive agricultural lands were "threatened by a small, harmless-looking minnow called the Delta smelt."

Because a federal judge ordered cutbacks in the amount of water shipped from the Sacramento-San Joaquin Delta to farms in the valley, a farmer explained on camera, growers have fallen on hard times. After showing a long line stretching around a food bank in the tiny agricultural town of Mendota, the newscasters concluded: "It’s fish versus families, and [the government is] choosing the fish."

It’s a dramatic portrayal, and the poor farm laborers who are out of work are truly struggling. But it isn’t the fault of a fish.

The state Legislature is now struggling with a series of bills to address a problem that sometimes seems to defy political solution, while agricultural interests — which consume the lion’s share of the state’s water supply — are campaigning aggressively to secure even more water for irrigation.
But while the political forces battle, an environmental nightmare is being created in the Delta. Years of massive water diversions are putting the San Francisco Bay-Delta Estuary at risk. Massive projects that take freshwater from the delta appear linked to declines in bay and delta fisheries, threatening not just endangered species but California’s salmon fishing industry, which lost more than $250 million last year as a result of declining salmon runs.

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Delta exports (at left) have increased in recent years, while returning Chinook salmon populations have declined at the end of a three-year spawning cycle. Graph created using data from Porgans & Associates

Meanwhile, climate models predict that California’s tug-of-war over water will only get uglier as the state is hit with more frequent droughts. As lawmakers scramble to find a solution to the state’s water woes, the challenge isn’t just to balance the needs of families and fish — it’s to steer an increasingly crowded state toward smarter management of shrinking water resources.
"It all comes down to climate change," Lt. Gov. John Garamendi noted in a recent interview with the Guardian. "Everything we know about water in California is going to dramatically change."

Critics say the bills in Sacramento are, at best, a duct-tape-and-baling-wire solution to a problem that could define the state’s economy and environment in the coming decades. "The bills … have been slapped together in such a slapdash way that it’s reminiscent of energy deregulation," said Nick Di Croce, lead author of "California Water Solutions Now," a report produced by the Environmental Water Caucus.

As things stand, much of the problem is inherent in the system. The pumps that export water out of the delta regularly pulverize federally threatened and endangered fish, yet the government agencies that operate them are rarely held accountable. The agency that is supposed to monitor and protect the health of the San Francisco Bay and the fragile delta ecosystem also gets 80 percent of its budget from water sales. And the state water projects regularly promise more water than they can deliver.

THE GREAT SUCKING SOUND

California’s water wars stem from a tricky dilemma: two-thirds of the precipitation falls in the north, while two-thirds of the people live in the drier south. The delta, located primarily in Sacramento and San Joaquin counties, is the heart of the state’s water supply, where the freshwater flows of the Sacramento and San Joaquin rivers and vein-like tributaries converge. It boasts the largest estuary on the west coast of North and South America, providing critical habitat for at least a dozen threatened or endangered species including salmon, smelt, splittail, sturgeon, and others.

The delta is also like a superhighway interchange of water for the state. Two vast plumbing networks — the Central Valley Project, operated by the U.S. Bureau of Reclamation, and the State Water Project, operated by the Department of Water Resources — transport water from delta pumping stations to cities and agricultural operations across the state.

Roughly 5.7 million acre-feet of water was exported annually from the delta in recent years, a high that many environmentalists say is unsustainable. (An acre-foot, or 325,853 gallons, is the amount that covers an acre one-foot deep.) Before the Central Valley Project was constructed in the 1930s, only 4.7 million acres of farmland were irrigated statewide. By 1997, the acres of thirsty cropland had climbed to 8.9 million, converting many areas that were once barren desert into lush green fields. Agribusiness dominates the sector, with some farming operations like agricultural empires, spanning tens of thousands of acres.

As cropland has expanded, so has agriculture’s demand for water. State and federal agencies sell delta water by issuing contracts to water districts, and the water is priced substantially lower for agricultural use. A report issued by the Natural Resources Defense Council suggests that delta water allocation has traditionally gone something like this: "Corporate and agricultural interests demanded more and more water, and the state and federal agencies let them have it."

No one can say just how much rain will fall from the sky in a given year, so stipulations were written into the water contracts to deal with allocation during times of water shortage. Depending on a district’s water rights — a status determined by a combination of seniority and a hierarchy of uses — it may get 100 percent of the amount promised on paper during a dry year, or a mere fraction of it.

But the districts continue to promise water to farmers, and the state continues to promise water to the districts.

This latest round of water wars is exacerbated by the drought, which has sapped water supply in California for three years in a row. The dry spell has led to cutbacks in delta water exports, affecting farms throughout the Central Valley and sending unemployment rates up. The drought was responsible for two-thirds of the roughly 1.6 million acre-feet shortfall in water exports, and the remaining third was withheld by federal court order to protect the endangered Delta smelt.

Making matters worse, many growers in water-deprived places like the Westlands Water District, in the Central Valley between Coalinga and San Joaquin, have recently shifted to permanent crops like almonds and pistachios instead of annual crops that might be more adaptable to unpredictable irrigation supply from year to year. It’s a bad time for the San Joaquin Valley to take a hit. The region is already plagued with high rates of unemployment from a loss in construction work, foreclosure, and other effects of the economic downturn.

HELL IN A HANDBASKET

State Sen. Joe Simitian (D-Palo Alto) put the dilemma simply: "The question is, how do you ensure that two-thirds of the state has a reliable supply of clean water while at the same time acknowledging and addressing the fact that from an environmental standpoint, the delta’s gone to hell in a handbasket over the last five years?" Simitian has taken a leadership role in crafting legislation to reform the broken system.

"I just think that things have come together at this particular time to suggest that there ought to be a sense of urgency about all of this," Simitian added during a recent conversation with the Guardian. "But I worry that inaction is always the default mechanism, and in a conversation such as this one, I don’t think we can afford inaction very much longer."
Right now five bills are pending in Sacramento. Backers say they strive to meet two "co-equal goals" that in the past have proven to be at odds: more reliable delta water deliveries, and a restored delta ecosystem. Simitian’s bill would create a Delta Stewardship Council, a powerful body authorized to approve spending for a new system for moving water through the delta that could include a new version of the much-maligned peripheral canal, a hydraulic bypass diverting freshwater from the Sacramento River around the brackish delta to ship south.

A bill introduced by Assembly Member Jared Huffman (D-San Rafael), who heads the water committee, would require a 20 percent reduction in statewide urban per capita water use by 2020. Other objectives in the legislation are to firm up ecological protections for the delta, reevaluate the state’s system of water rights, and establish new water-use reporting requirements.

"Is there a win-win here? I think there is," Simitian told us. "But only if you look at this from sort of a big-picture, comprehensive standpoint, which is why we’ve got five different bills that seek to make sure there’s a balancing of interests. One of the things we’ve talked about was the co-equal goals of a reliable supply of clean water with delta restoration. And that’s going to require not looking at any one of these issues in isolation, but taking it all together."

Gov. Arnold Schwarzenegger has made it clear that he believes building a peripheral canal is the best plan. Variations of this idea have been proposed since the 1940s, but in 1982, Californians voted it down at the ballot (with an overwhelming majority of Northern Californians voting no).

Some groups perceive this as a water grab for Southern California and agribusiness, and delta interests say it would cripple both delta agriculture and the estuary by increasing salinity levels from seawater and preventing the delta from being flushed out by natural freshwater flows. Cost estimates for that project range from $10 billion to $40 billion.

Schwarzenegger has also threatened to veto any package proposed by the Democrat-controlled Legislature that doesn’t include bonds for new dams (in their current form, the bills do not). A bond bill would require a two-thirds majority, while the proposed water bills would only need a simple majority vote to pass.

"I think it’s helpful for the governor to weigh in and share his opinions," Simitian noted cautiously. "However, I did not think it was helpful for the governor to simply draw a line in the sand."

The proposals are being met with skepticism from all sides. Many environmentalists who’ve gone to battle over water policy issues for years have little faith, saying the proposed Delta Stewardship Council would cater to the governor’s agenda because he would have the power to appoint four out of seven members. They’re concerned that environmental issues will play second fiddle as plans are hatched.

Lloyd Carter, an environmentalist who grew up on a raisin farm in the Central Valley, is suspicious the policy will be weighted toward agricultural interests. "What’s most useful is to think of water as cash," Carter told us. "It starts out as cash in the public treasury, and one little segment goes in and scoops out as much as it can. Agriculture accounts for less than 5 percent of the state’s economy and they use 80 percent of the water."

Agricultural interests and the water districts that serve them, not surprisingly, view water cutbacks as a signal of government failure and are hard-pressed to go along with anything that doesn’t include provisions for new dams and a canal. Rather than recognize limits in the amount of available water, they want new projects that will increase the supply.

The Latino Water Coalition, an organization backed by agribusiness that has put together marches and rallies to protest the water cutbacks, is critical of the proposed package of bills because they say it doesn’t go far enough. "For years there’s been committee after committee, board after board. If the best that the legislature can do is propose a new committee, how can that be a good solution?" asked Mario Santoyo, technical adviser to the coalition. "There are people who don’t have jobs, there’s food that’s not being grown. It’s a human rights issue. There has to be a solution, and it has to be real."

Sarah Woolf, media spokesperson for the Westlands Water District, which is among the most vocal advocates for agricultural water, echoed Santoyo’s view. "If you do not have above-ground and below-ground storage and a peripheral canal, then you don’t have a solution," she told the Guardian. "There’s no point in passing legislation that doesn’t solve the whole problem."

But of course, when there’s not enough water to go around, building more dams and canals isn’t going to solve the whole problem, either.

SELLING WATER THAT ISN’T THERE

Patrick Porgans, a Sacramento-based water policy expert, is critical of the proposed package of bills for a very different reason. "We can’t expect the very government that created the problem to solve the problem, because they are the problem," he says.

Porgans arrived at the Guardian office not long ago dressed in a salmon-colored suit with matching snakeskin belt and shoes. The rail-thin 63-year old walks with a bit of a fragile step, but once he gets talking about water, he’s a bundle of uncontrollable energy. For more than two hours, he held a pair of reporters in thrall as he unpacked and held up big armloads of charts, color-coded graphs, and government documents.

It’s just a sampling from what Porgans calls his "database," and he’s got photos: a storage space piled to the ceiling with file boxes containing thousands of pages of documents. This is his life’s work, and it’s easy to wonder how he even has time to eat and sleep.

In the wake of the 1987-92 drought, his consulting firm, Porgans & Associates, publicized the fact that the Central Valley Project and the State Water Project had pumped more water out of the delta during the dry spell than at any other time in their history of operation. The firm is now suing the government for vioutf8g the Endangered Species Act.

Ask Porgans, and he will tell you that "the peripheral canal is a peripheral issue" because it couldn’t possibly address the underlying shortcomings of the water-policy system itself. He pointed out that 80 percent of DWR’s operating budget is derived from water contracts, and noted that many top officials in water-project agencies arrive through a revolving door from the water districts themselves. There’s a conflict of interest, he said, because the agencies are in charge of both selling off delta water and acting as the stewards of the estuary, a natural resource owned by everyone.

Then there’s the underlying problem of the government having sold off contracts for more water than it could actually deliver, a point Porgans highlighted in his notice of intent to sue. In the years following a drought that struck California in the late 1970s, plans were made to expand water storage for the State Water Project — but they fell through at the last minute. Unfortunately, the limited capacity didn’t slow the sale of water contracts.

From 2001 to 2006 alone, the U.S. Bureau of Reclamation signed more than 170 long-term contracts with water districts around the state, promising to increase significantly water deliveries from the Central Valley Project for the next 25 to 40 years.

"Basically, they oversold the project," said Zeke Grader, executive director of the Pacific Coast Federation of Fishermen’s Associations. "We had all these contracts to deliver all this water, but nobody looked to see how much water there was. More importantly, they didn’t look at the minimums that would be needed to protect the delta."

"The shortages are inherent in the project," Porgans said. A court opinion issued by California’s third appellate district court in 2000, plucked from his database, underscores this point. "DWR forthrightly admits that ‘the State Water Project (SWP) does not have the storage facilities, delivery capabilities, or the water supplies necessary to deliver full amounts of entitlement water,’" Judge Cecily Bond noted, citing a DWR bulletin. "There is then no question that the SWP cannot deliver all the water to which contractors are entitled under the original contracts. It does not appear that SWP has ever had that ability."

Grader puts the blame directly on the water districts. The growers, he said, are "innocent third parties affected by the actions of water districts that should’ve known better" because the water contracts specified from the beginning that there would be less water available during times of water shortage.

"We have nothing but empathy for farm workers who are unemployed," said Barbara Barrigan-Parrilla, executive director of Restore the Delta, a 501(c)3 nonprofit representing delta farmers, fishermen, and environmentalists. "But their leadership told them, go ahead and do it. We’ll get you the water."

Farmers have organized rallies and marches to protest the water cutbacks, angrily putting the endangered delta smelt at the front and center of its campaign. A band of farmers traveled up to San Francisco in recent months, chanting "turn on the pumps!" outside Nancy Pelosi’s San Francisco Federal Building office.

Rep. Devin Nunes, a Republican who represents Tulare County and parts of Fresno County, unsuccessfully tried to convince Congress to waive Endangered Species Act requirements to forego protection of the delta smelt and restore irrigation for struggling farmers. (Nunes even attended a Congressional hearing toting a goldfish bowl containing minnows to play up the fish-vs.-families mummery.) The Latino Water Coalition has been particularly vocal, getting airtime on Fox News and publicly appearing with Gov. Schwarzenegger to call for construction of new dams and a canal to ensure a more reliable water supply.

Carter, the environmentalist watching it all unfold from Fresno, shakes his head at the display. If their campaign is successful, he told us, the state will wind up embarking on expensive infrastructure projects that serve an agribusiness agenda at Northern California’s expense. "There’s a sense of entitlement down here," he said. "They say it’s ‘our water.’ But the rivers in California belong to all the people."

DEAD FISH

A series of studies, court decisions, and a Blue Ribbon Delta Vision Task Force convened by the governor have all found that massive water exports out of the delta pose a tremendous environmental problem, and the delta smelt is a mere indicator of the trouble. Failing to ensure adequate freshwater flows through the delta could spell doom for California salmon runs and sound a death knell for the San Francisco Bay-Delta Estuary. And many contend that building a peripheral canal would be the quickest route to the delta’s demise.

According to data Porgans & Associates has collected, excessive delta water exports are aligned with salmon-population nosedives. The numbers tell a tale: high water exports correlate with dramatic decreases in salmon returns after the fish’s three-year spawning cycle. Conversely, fish populations bounce back following years of reduced pumping.

Delta water exports reached an all-time high of 6.7 million acre-feet in 2005, and three years later, the salmon returns were so low that the commercial salmon harvest was cancelled for the first time. It happened again this year.

While Westlands farmers bemoan what they call a "man-made drought," they’re not the only ones facing job loss due to delta water issues — an estimated $255 million was lost last year as a result of low salmon returns, according to California Department of Fish and Game estimates. A report from the Pacific Institute, an Oakland-based environmental research group, estimates puts farm losses due to water shortages at $245 million as of midsummer 2008.

"This closure is among the nation’s worst man-made fisheries disasters," an NRDC report notes. "It is on par with the loss of Atlantic cod fishery, and its economic impact for the fishing industry is comparable to the losses that followed the Exxon Valdez oil spill."

It’s said that California salmon were so plentiful 70 years ago that farmers plucked them from waterways with pitchforks. Now biologists say those salmon runs that haven’t already been listed as threatened or endangered are in a losing battle with worsening water quality and massive water pumps in the Delta.

An estimated 90,000 juvenile salmon die prematurely each year by being sucked into the heavy-duty pumps, according to a U.S. Bureau of Reclamation and Department of Water Resources study. Sometimes the pumping levels are so high it reverses river flows, causing salmon to swim upstream instead of out to sea. "If you or I go out and shoot an eagle, we’ll go to jail," said Barrigan-Parrilla, from Restore the Delta. "But DWR has no accountability to the Endangered Species Act — they’re grinding up fish."

The salmon also suffer from poor water quality, which environmentalists say is a consequence of the voluminous freshwater diversions. If the freshwater isn’t available to flush out the ecosystem, the negative effects of toxins and pollutants discharged into the Delta are amplified, and the water gets warmer, dirtier, and saltier. The ramifications of salmon decline can ripple along the food chain, putting even southern resident killer whales, which feed heavily on Sacramento River salmon in the ocean, at risk.

The impacts of freshwater diversions aren’t limited to the region’s ecology: delta agriculture is taking a hit, too. The construction of a peripheral canal would "destroy the estuary and shift economic problems from one geographic location to another," said Barrigan-Parrilla. "Agriculture in the southern delta would not make it." South delta farmers have already had to contend with increasing levels of salinity due to the massive freshwater diversions, she says. A homegrown bean festival held every year in Tracy has had to resort to purchasing beans, she told us, because it’s become too salty to grow them.

"The estimates are $10 to $40 billion to build a canal," Barrigan-Parrilla said with a note of disbelief. "We’re going to spend that much money on a project when we have just gutted education and welfare?"

As Sacramento lawmakers pull at the threads of this tightly-wound knot, looming uncertainties are waiting in the wings. For one, the delta’s network of 1,100 miles of earthen levees is under increasing strain due to its age, making it susceptible to failure. In fact, some say a peripheral canal could help prevent levee failure. Meanwhile, climate change is a challenge that can’t be ignored because it will affect overall water supply even as the state’s population continues to climb.

"The science makes it increasingly clear that the current system is unsustainable, Simitian said. The scientists are telling us there’s a two out of three chance that in the next 50 years the whole system will collapse, and that serves neither the delta well nor the two-thirds of the state that relies on delta water." Simitian doesn’t endorse the canal, but told us that the system of water conveyance needs to be changed.

Doug Obegi, staff attorney for the Natural Resources Defense Council, told us that thinking about water supply is just as important as thinking about how to move it around. He pointed out that some Colorado River dams just aren’t filling up anymore. If you build a new dam without managing the water supply, he said, "you have a big hunk of concrete that just isn’t doing anything."

Climate change will reduce the Sierra snowpack, an important natural reservoir, anywhere from 15 percent to 60 percent, according to the Department of Water Resources. The warmer air temperatures will also shift the runoff flows to earlier in the year, making major adjustments necessary. Climate change models also predict worsening drought. Water shortages worse than those caused by the 1977 drought could occur in one out of every six to eight years by 2050, and one out of every three to four years by 2100, according to the department’s study. The change in weather patterns will also increase the likelihood of floods.

Rising sea levels will also bring more saline ocean water into the delta, making it necessary to inject more freshwater into the system to maintain water quality and protect native species.

All told, climate change is expected to reduce overall delta water exports from 7 percent to 10 percent by 2050, and 21 percent to 25 percent by the end of the century — a heavy toll that can’t be managed without smarter water management.

Pending water shortages can be addressed in part with what NRDC calls California’s "virtual river," Obegi said, an aggressive system of water efficiency, waste-water recycling, groundwater cleanup and storm-water management that could yield a potential 7 million acre-feet per year.

As for agriculture, the 800-pound gorilla of water consumption in the state, there’s plenty of room for improvement. A report by the Pacific Institute estimates that annual agricultural water savings — with a combination of strategies like smarter irrigation management, modest crop shifting, and more efficient technology — could save up to 3.4 million acre-feet of water per year. The study strongly recommends avoiding expensive infrastructure projects that will burden taxpayers when the state has more budget-friendly options like targeted conservation and efficiency.

It won’t happen without the political will, however. During a discussion about the bills that are currently being debated in Sacramento, Barrigan-Parrilla said she fears the delta will lose out in the end. It’s hard for her to swallow the whole concept of "co-equal goals," she says, because it amounts to putting the environment, which is owned collectively, on equal footing with the interests of a small group of people who consume the vast amount of the state’s water supply.

"It just doesn’t make sense to me," she says. "You can’t have a reliable water supply unless you take care of the environment first."

Supes ask AG to drop last SF8 charges

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By C. Nellie Nelson

Late last week, three members of the Board of Supervisors signed a letter urging Attorney General Jerry Brown to drop the charges against the remaining defendant of the San Francisco 8. The letter, signed by Supervisors Eric Mar, John Avalos and Chris Daly, calls the prosecution misguided: “Based on ‘confessions’ and other testimony extracted by torture and denial of right to counsel, this prosecution has been a disservice to the people of San Francisco.” They point out that the case has cost the city millions of dollars already.

In June Sup. Mar introduced a similar resolution urging the attorney general to drop the charges against the seven men (one had had charges dropped previously) to the Board’s Government Audit and Oversight Committee. The Committee opted to send the resolution to be heard by the full Board, but ended up postponing when budget disagreements literally overtook City Hall.

Then in early July, the prosecution agreed to drop the charges against five of the men, and allowed two men to accept much lesser charges, where they were credited with time served and received only probation. The one remaining defendant is Francisco Torres, who declined an offer to plead guilty to a lesser charge.

The case being largely dismissed, the board tabled the resolution. As there is now just one attorney and assistant, compared with an original team of sixteen attorneys, so the next hearing on the case was postponed to October 9.

The Attorney General’s office had not responded to the Guardian’s request for comment by Monday evening.

Live on stage

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Asobi Seksu Oct 2, Slim’s

Atlas Sound Nov 3, Great American Music Hall

Bad Brains Sept 15-16, Slim’s

Beach House Oct 19, Bottom of the Hill

Blues Control Nov 5, Hemlock

Budget Rock Oct 22-25; Bottom of the Hill, Eagle Tavern, and Thee Parkside

Carol Burnett Oct 1, Paramount Theatre

Butthole Surfers Oct 16, Regency Ballroom

Children of Bodom Oct 9, Regency Ballroom

Crown City Rockers Sept 29, Independent

Crystal Stilts Oct 14, Slim’s

Damon and Naomi Oct 9, Independent

Dead Meadow Sept 28, Great American Music Hall

Def Leppard, Cheap Trick Sept 2-3, Shoreline Ampitheatre

Echo and the Bunnymen Oct 22, Fox Theater

Fever Ray Oct 5, Regency Ballroom

Fool’s Gold Sept 15, The Independent

Hammer, Whodini Sept 25, Fox Theater

Health, Pictureplane Sept 10, Bottom of the Hill

Gil Scott Heron Oct 2, Regency Ballroom

Grouper Swedish American Music Hall, Sept 20

Hardly Strictly Bluegrass Oct 2-4, Speedway Meadow at Golden Gate Park

Horrors Oct 3, Independent

Talib Kweli Sept 18-19, Yoshis SF

Cass McCombs, Papercuts, Girls, Sept 9

Kylie Minogue Oct 1, Fox Theater

Mos Def, Erykah Badu, and Jay Electronica Sept 3-4, Davies Symphony Hall and Paramount Theatre

No Age Oct 30, Great American Music Hall

Om Sept 24, The Independent

Pains of Being Pure at Heart Sept 18, Great American Music Hall

Pet Shop Boys Sept 22, Warfield

Peter Bjorn and John, El Perro del Mar Nov 1920, Great American Music Hall

Phoenix Sept 17, Warfield

Pixies Nov 8-9, Fox Theater

The Pogues Oct 13-14, Warfield and Regency Ballroom

Psychedelic Furs, Happy Mondays Sept 17, Regency Ballroom

The Raincoats Oct 9, Mezzanine

Royksopp Nov 19, Regency Ballroom

Shonen Knife Oct 30, Blank Club

Starving Weirdos Swedish American Music Hall, Sept 19

Sunset Rubdown Oct 26, Great American Music Hall

Teenage Jesus and the Jerks Oct 8, Slim’s

The Tubes, Sept 5, Great American Music Hall

Vivian Girls Sept 9, Rickshaw Stop

Wallpaper Sept 4, Uptown

Wavves, Ganglians Sept 6, Rickshaw Stop

Why? Oct 17, Great American Music Hall
Wire Train, Translator Sept 5, Slim’s

SF allowed to join federal challenge to Prop. 8

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By C. Nellie Nelson

U.S. District Court Judge Vaughn Walker has ruled that San Francisco will be added as a co-plaintiff in the federal court challenge to Proposition 8.

“Judge Walker found we were situated differently. We were the only party to put forth the societal and governmental costs of marriage discrimination. The city has a perspective that private parties and even the state do not bring,” City Attorney Dennis Herrera told the Guardian. “In painstaking detail we put forth costs incurred by the Department of Public Health. Tax consequences. Budget consequences.”

But Judge Walker ruled against naming other anti-Prop. 8 legal groups American Civil Liberties Union, Lambda Legal, and the National Center for Lesbian Rights as parties. He ruled that the Campaign for California Families, which seeks to uphold Prop. 8, could not be a party in the case either. The LGBT law blog lawdork.net summarizes Walker’s decisions, “In short, this has moved the LGBT legal organizations to the periphery of a very prominent and potentially landmark case.”

Chronic debate

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sarah@sfbg.com

For decades, proponents of marijuana reform have argued that cannabis is less dangerous than alcohol or cigarettes, has legitimate medical uses, and should be decriminalized on the grounds that prohibition doesn’t work.

In 1996, these arguments helped convince California voters to approve Proposition 215, which allows the use of marijuana for medical purposes. And in March, U.S. Attorney General Eric Holder signaled a major change in federal drug policy when he said that the Justice Department does not plan to prosecute medical marijuana dispensaries that operate legally under California law.

But the federal government still classifies marijuana as a Schedule 1 controlled substance that has no medical value and a high abuse potential. As a result, cultivation, distribution, and sales of pot primarily occur on the black market, a shadowy mix of small-timers and powerful cartels.

Data from the National Survey on Drug Use and Health (NSDUH) suggests that U.S. growers produced 22 million pounds of marijuana in 2006, worth $35.8 billion, and that California accounted for almost 39 percent of U.S. pot production.

Now, with California’s economy in the crapper, the state budget a mess, and federal judges ordering substantial reductions in California’s prison population, reform advocates are making an intriguing argument: if state or local governments legalize and tax even a fraction of marijuana sales in California, the state could see billions of dollars in new annual revenue and reduced enforcement costs.

Assembly Member Tom Ammiano recalls some laughter in February when he introduced Assembly Bill 390, state legislation to regulate marijuana much like alcohol. "But the budget fiasco has made some people who were dismissive take a harder look," Ammiano said.

A recent California Board of Equalization analysis of Ammiano’s bill estimates that if the state charged $50 per ounce, California would generate $1.4 billion in marijuana taxes annually.

Voters in Oakland also advanced the marijuana policy discussion last month when they approved a special tax on the city’s medical cannabis dispensaries. And in August, a three-judge federal court ruled that California must develop a plan to reduce its prison population by 44,000 over two years.

The public also seems to support making a change. In April, a Field Poll confirmed that for the first time a majority (56 percent) of California voters support legalizing pot.

Depite these advances, Ammiano says he wants to be strategic with his bill, gradually building support. "That’s why we made it a two-year bill," Ammiano said. His bill is scheduled for its first hearing at the Public Safety Committee, which Ammiano now chairs, by year’s end.

But some Bay Area activists aren’t waiting on Ammiano. Last month, Richard Lee, who operates four medical marijuana dispensaries in Oakland, filed initiative paperwork with the state and hopes to gather enough signatures to qualify a Tax Cannabis initiative in 2010.

Ammiano’s bill and Lee’s initiative allow recreational use of marijuana, penalize driving under the influence, and charge a $50 fee per ounce. But they differ around regulation and how to deal with the overarching problem of federal law. Ammiano’s legislation assumes a statewide system that mirrors the federal Department of Alcohol Beverage Control. Lee’s initiative leaves regulation to each county, similar to the patchwork approach to alcohol in other states.

Lee believes his initiative gives people more options. "We can’t order people to break federal law — that would be thrown out," Lee said. "Forty jurisdictions already permit medical marijuana cooperatives in California. So we already have that system, and we’ll follow that reality."

Sup. Ross Mirkarimi, who authored San Francisco’s medical cannabis dispensary regulations, believes it’s important to lay the groundwork at the local level. He points to the relative lack of growth in new municipalities that allow medical dispensaries since voters approved Prop. 215, calling it evidence of pot-related NIMBYism.

"Everyone says they support it, but they don’t want it in their own backyards," said Mirkarimi, who wants San Francisco to become the first U.S. city to add marijuana to the list of medicines it dispenses. "But the city Attorney’s Office is shy about pushing this envelope."

Mirkarimi wants to follow Oakland’s example and add a gross receipts tax to medical marijuana dispensaries in San Francisco.

But the legalization push has its fervent critics. At a recent Commonwealth Club debate on the economics of marijuana, El Cerrito Police Chief Scott Kirkland, who led the charge to ban medical dispensaries in his city, tried to discredit arguments that legalization will save money.

"I’m very disappointed with the state," Kirkland said, claiming that the BOE’s analysis drew almost exclusively on the work of Jon Gettman, a former director of National Organization for the Reform of Marijuana Laws.

"We have to have statistics we can rely on," said Kirkland, who then cited the same BOE report — it estimates that pot prices will drop 50 percent and consumption will increase 40 percent — to support his contention that legalization will lead to increased substance abuse.

Kirkland also challenged the notion that Mexican drug cartels will leave once the pot business is legitimized and regulated. "They understand that the money involved is astronomical," he said. "It’s wishful thinking that if you legalize marijuana, all of a sudden the cartels go away."

He also disputed claims that legalization would help empty state prisons. "It’s very common for advocates to associate legalization with reducing the costs of incarceration, but it’s a fallacy," Kirkland said. "It’s very rarely that a person goes to prison for their original offense."

Kirkland topped off his attack by citing the state’s June 19 decision to add marijuana smoke to its Proposition 65 list of substances known to contain carcinogens.

But BOE spokesperson Anita Gore refuted claims that their analysis relied entirely on reform advocates’ research. "Being as this is an underground activity, the resources are limited," Gore said. "But our researchers and economists used econometric models that are generally accepted and looked at all the available resources, which included academic and law enforcement studies."

Gettmann told the Guardian he uses data from NSDUH, the U.S. Drug Enforcement Agency, the Office of National Drug Control, and the Bureau of International Narcotics — sources the prohibitionists also draw on. He admits that it’s hard to quantify a black market.

"But it’s easy for anyone to understand basic regulatory economic theory," Getmann said. "Marijuana use produces costs for society, but is largely untaxed. So users and sellers reap benefits, while taxpayers bear the costs."

He believes many advantages of legalization are qualitative. "It’s a better regulatory system for financial and fiscal reasons and for restricting access on the part of teenagers," Gettman said.

Stephen Gutwillig, state director of the Drug Policy Alliance, points to research by the Center for Juvenile and Criminal Justice in San Francisco, which found that arrest rates for everything in California have declined since 1990 — with the exception of low-level marijuana crimes. CJCJ’s research shows that rates for this group increased 127 percent since 1990, and 25 percent in the last two years.

"It’s a system run amok," Gutwillig said. He notes that of the 74,000 people arrested for marijuana-related offenses, 20,000 are youth. "The marijuana problem is increasingly becoming a mechanism for social control of young black and brown men in California."

"We feel that money is definitely a fine consideration," he continued. "But even if reguutf8g marijuana didn’t produce a dime, these punitive, wasteful laws must end."

Gutwillig’s group has estimated that legalization would save California’s state and local governments $259.7 million annually in court and incarceration costs alone, a figure DPA researcher Betty Lo Dolce said is very conservative.

"I don’t know if folks have a secondary offenses, so I don’t know if marijuana was legalized, if they wouldn’t be in state prison," Lo Dolce said. "Or conversely, if they may not have been arrested for drug-related crimes, but then those charges got dropped and they ended up inside because of secondary drug-related offense."

Bruce Mirken, communications director for the Marijuana Policy Project, believes that advocates of California’s Campaign Against Marijuana Planting (CAMP) should have to justify that the program does some good.

"The idea that enforcing prohibition and seizing 5.5 million plants last year would be less costly than legalizing is crazy," he said.

But what about the public health costs?

UCLA pulmonologist Dr. Donald Tashkin said that the state added marijuana smoke to its Prop. 65 list, based on finding carcinogens in that smoke. "But you cannot translate chemistry into chemical risk because you have to take into account potential opposing effects," Tashkin said.

His research has found no association between heavy marijuana use and increased risk of lung cancer and pulmonary disease. Conversely, he and Dr. Donald Abrams, a cancer researcher at UCSF, have found that THC, marijuana’s main psychoactive ingredient, has an anti-tumor effect.

"The bottom line is that you cannot use pulmonary risk as a justification for not legalizing it," Tashkin said.

Dr. Igor Grant, director of medical cannabis research at UC San Diego, said the question around marijuana smoke is quantity. "It’s not like cigarettes," he said. "Most people don’t smoke 20 joints a day for 20 years. But even if it was declared safe for patients, you wouldn’t want parents filling the room with smoke."

James Gray, an Orange County judge and a member of Law Enforcement Against Prohibition, believes marijuana is here to stay. "Instead of moralizing and punishing people for failing on moral chastity grounds, let’s manage its use," Gray said. "If people are using it, they should be able to know what’s in it."

The most harmful thing about marijuana, Gray contends, is jail. "The remedy is far more dangerous than the disease itself," he said. "There are thousands of people in prison because they did nothing but smoke pot, and a dirty drug test was a violation of their parole…. But I understand that some people in law enforcement stand to lose a great deal, and that the Mexican cartels are going to invest a lot of money in Madison Avenue advertising."

Lee, too, acknowledges the opposition, but remains hopeful. "People are coming out of the closet," he said. "That’s what caused the gay rights movement to take off. It’s starting to happen around marijuana use."

Moving backward

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rebeccab@sfbg.com

San Francisco’s city budget was signed into law Aug. 4, but a group of city workers is pushing the Board of Supervisors to reverse a cut that they say reflects a giant step backward for progressive San Francisco values.

Service Employees International Union Local 1021, about 18,000 strong in San Francisco, has launched a campaign to restore pay cuts to certified nursing assistants (CNAs) and unit clerks who staff the city’s medical facilities, arguing that the demotions reverse a decades-old commitment pay equity between men and women.

Proposition H, approved by voters in November 1986, enshrined the principle of comparable worth in San Francisco. It required the city to ensure that municipal jobs dominated primarily by women provided wages on par with male-dominated jobs that have similar qualifications.

Jobs held by mostly female employees also tend be staffed by people of color, so the move to create equity in pay was meant to address systemic sexism and racial discrimination. Unit clerks and CNAs seem to fit the bill, and their salaries were gradually increased after 1986.

As part of the midyear budget cuts, 88 CNAs who work at SF General Hospital were laid off and simultaneously rehired as patient care assistants, a job with similar responsibilities but only 79 percent of the salary (from an average annual salary of $56,589 down to $45,032). Another group of CNAs is scheduled for similar demotions in November. Cuts to clerical workers’ wages are also pending and most will be reclassified with 15 percent less pay (from $52,845 to $45,266).

"It wipes out the advantage that they had," says Local 1021 health care industry chair Ed Kinchley. "Group by group, they’re wiping out the pay differential."

"This is the first wave of an overall effort to undermine comparable worth," union organizer Robert Haaland charged in a letter to the Board of Supervisors. "We ask you to join with progressives to defend the principle of equal pay for women and minorities."

SEIU held an Aug. 7 forum to discuss the cuts at SF General, with Sups. John Avalos, David Campos, Eric Mar, and Ross Mirkarimi in attendance. CNAs and unit clerks packed the audience — a crowd that was indeed made up of many women of color.

One was Theresa Rutherford, a CNA at Laguna Honda Hospital and Rehabilitation Center. "We’re the first ones to note when a patient is not doing well," Rutherford explained to the supervisors. "It’s a job that requires a lot of commitment." She described the long hours and the bonds that develop with patients, saying CNAs are counted on by "the person who has no family members left — so you become the family member."

"Best-quality care costs," Rutherford added. "It’s not cheap."

Avalos, who chairs the Budget and Finance Committee, said he was infuriated by the pay cuts. He spoke about a possible supplemental appropriation to address the issue. "We have to find the revenue for that to happen," he said. "Push as hard as you can on City Hall, and I’ll fight as well."

Tom Jackson, there representing Sup. Chris Daly, also urged the workers to apply pressure. "As far as labor practices go, this is a test," he said. "You’ve been fighting for decades [for pay equity] … and they’re ready to wipe it away because we have a bad economy."

Department of Public Health Chief Financial Officer Gregg Sass responded to SEIU’s charges by telling the Guardian: "We disagree with the SEIU comparable worth argument. Further, SEIU was not able to get member approval of a tentative agreement that might have prevented layoffs and position conversions during last fiscal year."

Supervisors added $500,000 back into the final budget to stave off some conversions. SEIU members contend that the add-back was supposed to retroactively restore cuts to the 88 CNAs, but Sass told us, "I am not aware of any action at the [Board of Supervisors] to that effect."

A memo that DPH Director Mitch Katz sent to Board President David Chiu noted that "difficult decisions had to be made to reach the financial target," and said the CNA conversions were made "following discussions with the city’s Department of Human Resources and SEIU."

At the forum, Halaand pointed to a report from the Controller’s Office revealing a 20 percent growth in management positions under Mayor Gavin Newsom’s administration. "There’s a lot of padding of their wallets at the top. At the bottom, they’re devaluing," he told the workers. "There seems to be money out there, but it’s just not for us."

Campos told us he plans to request a hearing to examine managerial promotions as well as the ethnic and gender makeup of the city’s highest-ranking positions. As for whether some of these cuts might be restored, he told us, "I think that’s a real possibility. I am hopeful it will happen."

A study released this year by San Francisco’s Department on the Status of Women compares women’s median salaries to average men’s earnings. According to the report, the median annual wage for Latina women is 52 percent of men’s earnings; African American women earn 58 percent; Asian women 63 percent; and white women 88 percent.

Another round of pink slips go out Sept. 16, so SEIU is planning a rally at City Hall that day to demand that the city uphold comparable worth.

G’day sleaze!

0

a&eletters@sfbg.com

In the late 1970s Australia suddenly looked like the new mecca for cinematic art, as movies like My Brilliant Career (1979), The Chant of Jimmie Blacksmith (1978), Picnic at Hanging Rock (1975) and Breaker Morant (1980)achieved unprecedented international critical and commercial success.

Those award-bait films are pointedly mentioned just in passing, for contrast, in Not Quite Hollywood, which is about all the other movies from Down Under during that period — those the tourist boards and arts councils preferred you didn’t know about. Subtitled The Wild, Untold Story of OZploitation!, Mark Hartley’s documentary is one of the best appreciations ever made of some of the worst films ever made.

Actually, they’re not all bad, by a long shot, though it’s measure of Not Quite Hollywood‘s infectious spirit that it induces a potent desire to see a number of films that in fact turn out to be pretty excruciating when seen in anything more than five-second increments. Their likes include 1978’s Stunt Rock — the predictably lame high-concept combination of stunt performers, magic tricks, and a justifiably forgotten band called Sorcery — not to mention extended dirty jokes like 1974’s Australia After Dark, 1981’s Pacific Banana, 1975’s The Love Epidemic, and 1975’s The True Story of Eskimo Nell. (The latter, however, features the following philosophically defining line: "There’s a day comin’ when I’m gonna stick me dick in the heart of the Earth and the bang’ll be heard in Alaska!")

Indeed, it was the belated relaxation of draconian censorship standards that opened the initially very smutty floodgates for Aussie exploitation cinema. While American audiences were enjoying the brief cultural moment known as "porn chic," folks on the other side of the planet were vicariously experiencing the sexual revolution in the softcore form of local snickerfests like 1973’s Alvin Purple ("The Bloke Who Has Everything But Inhibitions!") and 1972’s The Adventures of Barry McKenzie ("Cripes! The Things These Porn Sheilas Will Do On Camera!"). As several older, wiser actors note, any thoughts at the time that showing skin was about "liberation" proved delusional.

Much of Not Quite Hollywood is in a similar mood of bemused recall, reflecting that most endearing national Australian characteristic, an allergy to pretension. Confessed Ozploitation fanatic Quentin Tarantino does most of the on-camera cheerleading here, while folks who actually worked on the films in question typically recount how daft, crass, and/or sometimes plain dangerous to work on these enterprises were.

Unlike the Peter Weir and Bruce Bereford movies that presented Australia’s high-cultural face to the world, Aussie genre films of the ’70s and ’80s were often deliberately origin-blurred, the better to appeal to a North American drive-in audience. (When the most famous of them all, 1979’s Mad Max, first got released here its dialogue was actually redubbed by American actors.)

Washed-up or third-tier international "stars" like Jenny Agutter, Steve Railsback, or Broderick Crawford were flown in for marquee value, often greeted with open hostility by local actors whose jobs they’d "stolen." If war stories recounted here are indicative, many got revenge by behaving very badly: Dennis Hopper, for instance, was so berserk on Philippe Mora’s Mad Dog Morgan (1976) that police finally escorted him to the airport, practically banning him from an entire continent.

Not everything here is craptastic. Gems ripe for rediscovery include the 1978 Long Weekend in which a horribly combative urban yuppie couple going camping attract ambiguous vengeance from a horribly pissed-off Mother Nature. Another deeply buried treasure is 1982’s Turkey Shoot, a Most Dangerous Game spin that Brian Trenchard-Smith turned into a "high camp splatter movie" when the unfortunate last-minute disappearance of half the planned budget x’d out the script’s more expensive ideas. Its zesty offensiveness still riles critic Philip Adams, a plummy-voiced snob who decries "these vulgar films" that "admitted to the wider world we were yahoos."

But what yahoos. Australian exploitation cinema has had a particular penchant for putting protagonists at the mercy of crazy-car-driving, sheila-ogling, unkempt and un-sane rural inbreds. Sometimes they’re the main peril, sometimes just an unfriendly preliminary to the central menace of giant killer hogs (Razorback, 1984), giant killer crocs (Dark Age, 1987), giant punk prisoner camps (Dead End Drive-In, 1986) or psychotic stalkers driving Mr. Whippy ice cream vans (Snapshot, 1979).

There’s a whatever-works (even when it doesn’t) spirit to these films personified by the career of Trenchard-Smith, whose boldly indiscriminate resume has thus far stretched from several Aussie kung fu movies to 1983’s BMX Bandits (with Nicole Kidman!) to 1997’s Leprechaun 4: In Space. It’s a little annoying when Tarantino brags about dedicating Kill Bill‘s Australian premiere to this prestige-resistant director just to piss off the local "snobs." But it’s gold when the man himself cheerfully admits "I am a guilty pleasure footnote." *
NOT QUITE HOLLYWOOD: THE WILD, UNTOLD STORY OF OZPLOITATION! opens Fri/14 in San Francisco.

Editor’s Notes

0

tredmond@sfbg.com

Nobody really thinks the state budget deal is going to hold, and nobody really thinks San Francisco’s budget deficit is actually closed. So while the Legislature is in recess and the supervisors are moving on to other things, it’s worth thinking about what the next few months will bring. It won’t be pretty.

Paul Hogarth, writing for the online publication BeyondChron, pointed out Aug. 6 that San Francisco will lose more money due to state budget cuts than the city will gain from federal stimulus spending. The numbers are complicated and fluid (San Francisco will lose $100 million that the state will "borrow," but the city can immediately go to the bond market and borrow against the state debt — with any luck at the same interest rate the state will pay the city, so that should be a wash. Should — unless the lenders don’t want to gamble on the state’s debt.) But no matter how you slice it, San Francisco will be out something on the order of $18 million in state cuts alone.

There’s also the fact that nobody knows what the economy will do over the next six months. If employment doesn’t pick up, and consumer sales don’t pick up, and enough businesses get away with demanding property tax reductions, the revenue numbers projected by the Newsom administration will be wrong and things will be even worse. Sup. Ross Mirkarimi, who’s on the Budget Committee, told me he’s expecting at least $100 million in red ink for next year’s budget, and some of that will start to show up this fall.

I can’t even imagine what the 2010-11 budget will look like. By the time budget hearings begin next June, Gavin Newsom will either have won the Democratic primary for governor, and will have entirely checked out of City Hall, or he will have lost and will be angry, bitter, and vengeful.

We were mildly critical of Budget Committee Chair John Avalos this summer; he cut a deal with Newsom that requires the supervisors to believe that the mayor will work with them on any midyear cuts. The problem is that Newsom can’t be trusted. He’s already broken parts of this budget deal. So when, as is almost certain, he breaks his promise to work with the board on midyear cuts, the supervisors will have to take a much more aggressive stance than they did this summer.

Newsom will be in the middle of a heated race for governor — he won’t want to cut cops or firefighters, and he won’t even talk about taxes. (Although a recent Gallup Poll shows that only 46 percent of Americans think their taxes are too high, the lowest number to hold that view since 1961.)

It’s going to be war, and the progressives on the board need to be ready for it — or they’re going to get rolled, again. *

TONIGHT: town hall to discuss a California constitutional convention

0

By Rebecca Bowe

A lot has happened since we first reported on a campaign spearheaded by the Bay Area Council to hold a California constitutional convention.

We watched the state-budget drama unfold, a tearjerker with a surprise ending delivered by knife-wielding Governor Arnold Schwarzenegger. (In the sequel, Senate President Pro Tem Darrell Steinberg files a lawsuit against Schwarzenegger for cutting an additional $489 million in health, welfare and other programs through line-item vetoes, a move the lawmaker claims was beyond the governor’s constitutional authority.)

And in the meantime, the Bay Area Council has attracted lots of attention for its call to revamp the system, campaigning under the banner Repair California. The Bay Area business group has even started traveling around the state hosting town-hall meetings to rally support for a constitutional convention.

And tonight, it’s San Francisco’s turn to share ideas on how to fix California. (How about splitting it in pieces?)

Call Nancy Pelosi; fair hearing for single-payer

6

By Tim Redmond

Everybody knows the Democratic leadership has cut its deal, and single-payer health-care reform is off the table. But at least it will get a floor vote. And there’s still a chance for a major breakthrough in the debate: The House Dems could direct the Congressional Budget Office to prepare and release a comparative analysis of the cost of single-payer vs. the cost of all the other proposals.

So far, that isn’t happening, but Rep. Nancy Pelosi — who, as it turns out, represents San Francisco, although you wouldn’t always know it — could change that. Give her office a call and ask for a full CBO analysis of single payer.

District Office: 556-4862
DC Office: (202) 225-4965

I’d say calls are more effective right now than emails, but here’s an email link.

The algae solution

0

The San Francisco Bay may soon host a dramatic new environmental project that backers say could solve three problems at once: clean wastewater, remove carbon from the atmosphere, and produce biodiesel fuel. Yet it’s gotten remarkably little attention.

"For the most part, people are just ignoring me," says Jonathan Trent, a researcher at NASA Ames Research Center at Moffett Field, who is one of the driving forces behind the project.

The new technology Trent and his colleagues have created is called OMEGA (Off-shore Membrane Enclosures for Growing Algae). The idea is to grow large colonies of freshwater algae in what amounts to large plastic bags floating in the bay.

Wastewater from local sewage plants and carbon sequestered from power plants would provide food for the algae, which then produce oxygen and freshwater along with an oil that can be refined into fuel.

The OMEGAs are giant semi-permeable membranes; the design allows freshwater in but keeps saltwater out.

Using algae for biofuel isn’t new — there are a number of algae farms on land. But they require large amounts of real estate and fresh water and enough electricity to keep the water moving.

In this case, light from the sun provides the energy, and the motion of the waves stirs the algae around.

Trent is looking at ways to collect the freshwater that gets released by the OMEGAs — potentially another major breakthrough for a state desperately short of water.

Trent has shopped his project all over the world and many countries have showed interest, but he believes San Francisco is the perfect fit. "The people of San Francisco really have an enlightened attitude and are aware that something needs to be done to fix the problems we’ve created," he told us. "It’s a great place to demonstrate to the world that this is a feasible technology."

The OMEGA project still faces political hurdles. Trent recently survived an internal audit. And U.S. Rep. Bart Gordon (D-Tenn.) has been critical of federal spending for biofuel projects.

But the scientist isn’t discouraged. "Actually I’m glad we have been audited," he said. "I’ve been able to get attention and show that not only does our system not use water, it actually produces clean water."

On July 29 the project received approval for an $800,000 grant from the California Energy Commission. According to Trent, the approval for the grant was ready for approval months earlier, but Gov. Arnold Schwarzenegger wanted to put it on hold because of the budget crisis.

The CEC grant is coming just in time. A previous grant, from Google, was due to run out at the end of September. "We’re optimistic that if people see that the CEC has invested, maybe others will want to invest," Trent said. "But we need more than just financial resources — we need brain power as well. The next step is to find engineers to really make this a workable option."

Trent would like to get a working model up and running within the next 18 months and hopes to see a full-scale operation in place in five years.

San Francisco may be the first city to host OMEGA. San Francisco Public Utilities Commission staffers have met with Trent and are cautiously optimistic. "Although it is just at the preliminary stages of discussion, it doesn’t dampen our excitement about the project," said Tyrone Jue, spokesperson for the SFPUC. "We have to know what good we will get out of it and if it is feasible in this area."

Environmentalists caution that it’s far from a perfect solution to the planet’s problems. Sierra Club staffer John Rizzo notes that "biofuels themselves are not a good solution. It’s a good bridge, but they are still burned and create carbons that are bad for the planet." In the short term, however, it sure beats drilling for oil off the California coast.

The blackout factor

0

news@sfbg.com

459-pge.jpg
This chart shows how customers of Pacific Gas and Electric Co. face far more power outages than customers of any of the public power agencies in the Bay Area

Noel Birbeck makes signs. In a low, nondescript building tucked into a south of Market side street, a printing machine spits out personal greetings and corporate messages in all colors, shapes, and sizes.

Until the power goes out.

"We print things that are up to 50 feet long," said Birbeck, the business manager of Budget Signs. "If the power goes out at foot 35, we have to start the printing process all over and throw out all that time and money that went into the initial printing."

And that, unfortunately, has been happening far too often. In fact, a Guardian review of available data shows that customers of Pacific Gas and Electric Co. lose power much more frequently than customers of municipally-owned and operated utilities.

That costs money and harms the local business climate.

"[Any disruption] is a huge deal," Birbeck said. "If we’re in the middle of a deadline and a customer expects something at a certain time, that can cost Budget Signs a huge amount of money. No one is going to pay you for something that is only kinda done."

The last major outage cost Budget Signs more than $300 in employee and company time as Birbeck and her workers waited for the power to return. It’s a manageable amount, but she insists she can’t put a price on the inconvenience, the uncertainty, and the potential loss of business.

Reliable power is a basic requirement of most businesses. Restaurants and markets need refrigeration, factories need to power production lines, office buildings run large computing systems, retailers need to run cash registers, lights, and credit card machines. An unexpected power outage can cost San Francisco businesses thousands of dollars.

A 2001 study by the Electric Power Research Institute estimates the cost of power disruptions to California businesses is between $11.5 million and $17.8 million annually.

No utility can guarantee year-round power without disruptions, surges, brownouts, or severe weather-related outages. But reliability varies widely among California utilities.

PG&E breaks its service area into districts, and, according to reports it submits annually to the California Public Utilities Commission, San Francisco customers experienced an average of two hours of non-weather-related outages per year over the last six years. (Weather-related incidents are not reported at the district level.)

That’s better than the three-hour average across PG&E’s entire California service area. Still, PG&E customers in San Francisco lose power, on average, 2.5 times as often as customers of other Bay Area utilities.

The Palo Alto Utilities Department, Silicon Valley Power in Santa Clara, Alameda Municipal Power, and the Sacramento Municipal Utility District have dramatically better records, ranging from 82 minutes a year of outage time in Sacramento to only 16 minutes in Santa Clara — and these numbers include all weather-related events.

In other words, the municipal utilities deliver power more consistently and at considerably lower rates — even before factoring in PG&E’s impending rate hike of 3.3 percent to 5.4 percent.

"We consider any widespread blackout a major event," said Larry Owens, division manager at Silicon Valley Power. "Systems can be managed to minimize storm related events — we do [that]."

MONEY FOR MAINTENANCE


There are a number of reasons why these public power sources are more reliable than PG&E: size of the service area, age of the infrastructure, administration of the organization.

"The general concept is that the more complex the topography is and the older the urban areas are … the more unreliable the system is going to be," said Mark Loy, a ratepayer advocate at the CPUC.

"For PG&E there are negative powers of scale," he continued. "They are so large and spread out that being bigger actually makes things more difficult for them to fix. In San Francisco, the circuitry PG&E uses hasn’t even been mapped out in some places, so it is all haphazard and harder to keep on top of."

Public power agencies also have more incentive to invest in maintaining their infrastructure.

Patrick Valath, manager of electric engineering at the Palo Alto Utilities Department, attributes his city’s annual average of only 65 minutes of power disruption to an "aggressive and sustained infrastructure replacement program that is spread over many years."

Alameda Municipal Power’s Alan Hangar said the annual average of only 25 minutes of outage in that city is due to years of building stability and redundancy into the system.

Santa Clara is by far the most reliable utility company in the area, Owens said, and is often ranked second in the nation. "Our current operating philosophy is to load the system with only half of what it is capable of carrying," he said. "That allows us to switch a customer to another circuit quickly, so we restore their power and make repairs on our time, not their time."

He also noted that the vast majority of Santa Clara’s power lines are underground, making them far less susceptible to damage from storms, accidents, and other interference.

Municipal utilities have more freedom than investor-owned companies like PG&E to shift the focus away from profits, revenue, and shareholder returns toward quality and customer satisfaction.

"We are customer-driven," Owens said. "They repeatedly tell us that reliability is the No. 1 priority. The cost of power is second. We have some customers who say they lose $1 million a minute in an outage, and that by far trumps the cost they pay for energy."

THE RIPPLE EFFECT


Business owners don’t need studies to tell them they are losing money because of PG&E.

Arienne Landry, owner of Just for You Café in San Francisco’s Dogpatch neighborhood, faced a blackout during lunch service at her café several months ago.

"The power was out for four or five hours," she said. "During that time I’m paying people to work, but I can’t serve customers without power. I probably lost a couple of grand in sales. It’s not a severe loss, but it takes a little while to catch up."

Birbeck of Budget Signs remembers a power disruption that occurred when she was in the middle of two large printing jobs. She and an employee returned to the shop at 10:30 p.m. after a neighbor alerted her that the power had returned. She said they worked through the night to complete the jobs on deadline.

"They were our two largest jobs for our two largest companies at the time," she said. "Both jobs were over $10,000. Potential loss of either or both of these companies would have been disastrous to a small company. I really couldn’t even put a price on it."

And the cost of an outage doesn’t stop at that initial business. If the power goes out at Birbeck’s sign shop and a sign doesn’t get finished and a deadline isn’t met, Birbeck might lose money or even a client. But that client might have needed that sign for a business event, and that business event may have needed that client … and the losses can go on and on.

Those ripples are larger and go farther in many high tech industries. Larry Owens of Silicon Valley Power said that consistent, reliable power is especially important for the high tech firms located in Santa Clara, including Applied Technologies, Inc., McAfee, Inc., and Intel Corp.

"There are some processes that require a 21-day burn in," he said. "If there is a power outage, they have to start all over again. An outage can cause a company to lose market share or dominance or preferred vendor status. It ripples out a long way."

Some companies have such sensitive systems that a drop in voltage for a mere fraction of a second can shut them down and require rebooting.

"Our customers have become power-quality sensitive," Larry Owens said. "It doesn’t take an outage to harm a business. A fault on a transmission line causes the whole system to dip, a voltage dip. If you have a heavy load, it knocks the voltage down for milliseconds. If it drops enough, companies’ systems drop out."

State Sen. Mark Leno is intimately familiar with the problem — he owns Budget Signs. And he has called on the California Public Utilities Commission to investigate the problem.

"As a San Francisco small business owner, I am personally aware of the lost business I experience as a result of PG&E’s performance failures," Leno said in a press release. A June 18 letter Leno sent to the CPUC noted: "As the commission considers PG&E’s request to upgrade its grid, I would ask you to include both an investigation of these problems and PG&E’s proposed solutions to them."

Almost a month later Michael R. Peevey, president of the CPUC, responded, arguing that PG&E’s reliability rate in 2008 was better in the previous few years. He also pointed out that the utility has a formal process for filing claims and that the commission has no authority over system reliability.

That, Leno said, is unacceptable. "From reading that letter, one would never know that the mission of the California PUC is to be the protector of the ratepayer," he told us. "The ratepayers are being badly served by PG&E and the CPUC."

FILING A CLAIM


In theory, state law requires PG&E to reimburse businesses for losses caused by blackouts. A business owner or manager can find the claim form on PG&E’s Web site or can call the claims office. Each case is assigned to one of the 21 claims investigators who cover the utility’s service area. With the help of supporting documents, investigators look into the occurrence, determine PG&E’s liability and the degree of monetary loss, and compensate the business accordingly. All, according the Web site, within an average of 30 days.

Emily Mitra, owner of Dosa, which operates Indian restaurants in the Mission District and the Fillmore District followed this process — and it wasn’t that simple.

On Dec. 18, 2008, a PG&E transformer blew and both locations of Dosa lost power. Mitra had to contend with food spoilage, staff costs, down equipment, lost business, all of which added up to about $12,000.

"We filed claims, but it was a long process," she said. "A check came for the Valencia Street location immediately but for the Fillmore location, PG&E didn’t even have record of an outage."

After three months of badgering PG&E to no avail, Mitra said she contacted Sup. Ross Mirkarimi’s office and the Small Business Commission.

"I was ready to sue them," she said. "I had dozens of witnesses, but that didn’t seem to faze them. It could have been a coincidence that they found the data right after we talked to the Small Business Commission. But it was a pretty quick turnaround after that."

A check arrived for the full amount of the claim. But Mitra couldn’t claim compensation for the time, energy, and frustration the claims process cost her over its three-month duration.

Birbeck told us PG&E never informed her that there was a formal claims process. "No one ever mentioned a claim to me — that has never been offered at all," she said. That’s a common complaint — although the forms are on PG&E’s Web site, the utility doesn’t widely promote or advertise that fact.

PG&E also asks business owners to provide a slew of paperwork ranging from tax records and bank statements to payroll records, revenue and expense statements, and sales receipts.

"We had to give them a lot of data," Mitra said. Because Dosa’s records are mostly digital and automated, supplying them to PG&E was the least of her problems. But, she conceded, "if you don’t run your business in a way that keeps all that data, it would be a pain in the ass."

Of course, the claims process does nothing to address issues of reliability. Neither does it guarantee that Mitra’s refrigerators won’t fail without notice, leaving her without food to serve.

It is, however, another reminder that San Francisco is not being well-served by its private utility monopoly.

California: Fragmented, or what?

8

By Tim Redmond

Calitics is awash with talk about the new Field Poll on California demographics And although the SF Chron has ignored it, ol’ Dan Walters at the Sacto Bee is all over it, lamenting that the poll shows “the division of a once-cohesive society into its many component parts.”

Robert Cruikshank takes issue with Walters:

California’s society has never, ever been cohesive. Not in the 20th century, not in the 19th century, not even during the dozens of millennia of Native American settlement. Certainly our electorate hasn’t been cohesive. Until the 1950s state politics were defined by an urban-rural split with a crosscutting cleavage (apologies for the poli sci jargon) of intensive racial division. Even after the legal barriers of racial exclusion came down at mid-century segregation and discrimination persisted.

All of which is certainly true. He continues:

Some fragmentation is likely to continue. Californians are continuing to self-segregate according to political preference, leaving only the newer and affordable exurbs as the few places in the state up-for-grabs.

And blames the political structure:

What I see as the main problem facing California is obsolescence. Our government and our politics are still stuck in 1978. We’ve had fragmentation and a well-governed state, and fragmentation and a badly-governed state. That suggests to me we need to look at a system of governance that has remained almost unchanged since 1978 despite all the demographic changes reported in the Field Poll.

Again, true — and getting rid of the two-thirds majority for budget approval would make a big difference. It wouldn’t, however, undo all of the other awful things about state politics, including Prop. 218, which makes it almost impossible for local government to raise taxes, and Prop. 13, which is in many ways the root cause of the state’s total economic meltdown.

Paul Hogarth at Beyond Chron imagines

a California where the state legislature passes a budget by majority rule, and you can register to vote on Election Day. Three Strikes has been reformed to require the third “strike” to be a violent felony, and we have single-payer health care. The wealthy pay a higher income tax rate, and – just like in Alaska and Texas – oil companies must pay a modest tax for the privilege of extracting oil.

And Hogart argues that the progressives need to take back the initiative process to make that happen.

For once, I’m going to be the downer here: I don’t see progressives winning a whole lot of major statewide initiatives that make structural reforms in California government. We can win one or two — we can certainly overturn Prop. 8, and maybe repeal the two-thirds tax rule.

Did Newsom forget to mention COPS cash during budget talks?

6

By Rebecca Bowe

The San Francisco Police Department received $16.5 million in federal funding through the Department of Justice’s Community Oriented Policing Services (COPS) hiring grant program, Mayor Gavin Newsom announced July 28.

That’s a lot compared with the sums allocated to other cities throughout the country, but it’s just a fraction of the $89 million that Mayor Newsom and then-Police Chief Heather Fong requested for the SFPD in mid-April. So did the mayor mention that the city had applied to receive millions for the police from the federal government when the budget talks were going on?

Sup. Ross Mirkarimi told the Guardian that he was never informed that the city had applied for the COPS grant. “If in fact an application was submitted, then in my opinion it’s incumbent upon the mayor’s budget office and the police department to inform us of this,” Mirkarimi told us, adding that in his opinion, it should have come up during the budget talks.