Budget

Razor-blade snickers

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Earlier this month at the Toronto International Film Festival, I ran into Dead Channels Film Festival director Bruce Fletcher more than once — not surprising, considering we were both haunting the same Midnight Madness screenings. This is, after all, the local programmer who brought 1975’s Welcome Home Brother Charles — with director Jamaa Fanaka in tow — to the 2007 Dead Channels fest. He’s also the mastermind behind White Hot ‘N’ Warped Wednesdays, a weekly summer series hosting such should-be cult classics as Pakistan’s first (and only?) gore film, Hell’s Ground (2007).

Fletcher’s 2008 main event unspools Oct. 2, with more than a week of films not suitable for the faint-hearted. Making its US theatrical premiere is Puffball, the latest from Nicolas Roeg, known for 1973’s Don’t Look Now and 1971’s Walkabout. Fay Weldon’s son, Dan Weldon, adapted the script from Mom’s 1980 novel — appropriately enough, since the story deals with motherhood in its more terrifying forms. A young architect (Kelly Reilly, prissy enough to have played Caroline Bingley in 2005’s Pride and Prejudice) decides to renovate an Irish country cottage, not knowing the neighbors are baby-obsessed and black magically–inclined. High production values and the participation of Miranda Richardson and Don’t Look Now star Donald Sutherland (in a glorified cameo) lend Puffball a gloss that Dead Channels’ lower-budget selections don’t have. But the story — which treads semi-close to a mix of The Wicker Man and Rosemary’s Baby — never quite came together for me, in a way that was unsatisfying rather than acceptably ambiguous.

Still planning that Irish vacation? The horrors of the Emerald Isle are further explored in David Gregory’s Plague Town, yet another film that exists to remind city folk to NEVER GET OFF THE MAIN ROAD. Seriously. Because you know if you do, you’ll wind up stranded within evil-cackle earshot of the locals, most of whom happen to be hostile mutants.

Better cancel that road trip and hang out at the Roxie instead — Dead Channel’s opening-night flick, Tomas Alfredson’s Let the Right One In, is highbrow enough to be playing the current Mill Valley Film Festival. It involves vampires (totes hip) and picked up a big award at the TriBeCa Film Festival this year; see it now and brag to your friends that you caught the Swedish original when the just-announced remake by Cloverfield director Matt Reeves is eventually released.

Other Dead Channels trick-or-treats include Frank "Basket Case" Henenlotter’s freaky-deaky latest, Bad Biology, which opens with the line, "I was born with seven clits — seven that I know of," and gets more satire-tastic from there. When a seven-clitted girl meets a boy with a "drug-addicted dick with a mind of its own," what do you get? Maybe the first horror film to ever feature a vagina’s-eye-view shot, for one. Also on tap at the fest: Justin Paul Ritter’s A Gothic Tale, whose distinction of being narrated by Rowdy Roddy Piper is enough to intrigue me; San Francisco–spawned nugget o’ zombie weirdness Retardead; and a late-night program of woman-made shorts hosted by Viscera Film Festival director Shannon Lark, herself a filmmaker and Fangoria magazine’s first-ever "spooksmodel." Dead Channel’s other shorts program is comprised of international thrills and chills, including Oliver Beguin’s Swiss import Dead Bones. The setting is the old West; the cast boasts Ken Foree and Ruggero Deodato (that squealing sound you hear is the horror geek next to you, who no doubt worships both). The gory tale — bad taste? Or tastes like chicken? You decide.

DEAD CHANNELS FILM FESTIVAL

Oct. 2–10, $5–$10

See film listings for venues and schedule

www.deadchannels.com

Back to Oakland?

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› jesse@sfbg.com

Big money is flowing into an Oakland City Council campaign, fueling rumors that state Senate President Don Perata might be preparing for a Willie Brown–style move from Sacramento kingpin to Bay Area mayor.

Perata’s former chief of staff Kerry Hamill is vying for the city’s at-large council seat, running against AC Transit board member Rebecca Kaplan. Two independent expenditure committees with possible links to Perata are laying out tens of thousands of dollars on Hamill’s behalf. Sources say Perata has been fundraising for his ex-staffer, as has Oakland City Council President Ignacio De La Fuente, a longtime Perata loyalist. And it appears one of De La Fuente’s efforts to raise cash may have skirted the boundaries of state law.

The stakes for De La Fuente are definitely high. Hamill’s election would help him retain his role as president of the closely divided council. But the scuttlebutt around Oakland is that a successful Hamill candidacy could have bigger implications. It might just pave the way for something many local observers see as inevitable: a Perata run for mayor.

Current Mayor Ron Dellums is reeling from a spike in violent crime, huge budget deficits, and a detached leadership style, all of which is fueling a nascent recall movement. Perata will be termed out of state office this year and has made no secret of his interest in Oakland’s top job, despite allegedly being the target of an ongoing political corruption investigation by the FBI. Having a powerful colleague like Hamill on the council, while keeping De La Fuente in control of the body, could make a run for mayor attractive to Perata (who didn’t return our calls for comment).

"He’s going to run. Everybody knows he’s going to run," Oakland City Attorney John Russo told the Guardian, adding that the flurry of campaigning for Hamill is "absolutely a signal" of Perata’s mayoral ambitions. "That group of people [Perata and his allies] clearly see their interests lying with Kerry."

Reached for comment, Hamill said, "Don’s supporting me because I’m the best candidate…. Whether it is for selfish reasons like making sure the right people for him are on the council or not, I believe he is supporting me because he likes my work."

OUTSIDE INFLUENCE


If you live in Oakland or have spent any time there recently, chances are you’ve seen the pro-Hamill campaign signs promising "Safe Neighborhoods Now" affixed to fences and lampposts all over town. Oakland mailboxes have been stuffed with flyers backing Hamill’s candidacy. The signs and some of the other materials position Hamill in opposition to Dellums more than Kaplan, with one mail piece hammering the current mayor for his handling of the city’s recent crime wave.

Hamill’s campaign did not produce the signs or much of the literature championing her. Instead, two newly formed independent expenditure committees doled out more than $87,000 on her behalf in the first half of this year alone. The groups are not required to disclose their recent spending until Oct. 6, but given the volume of material being generated, there is little doubt their combined outlays will top $100,000 for the year. Hamill told us that outside groups are also aiding her opponent Kaplan, though she did not name them. Our examination of campaign records found that the California Nurses Association paid $24,535 for a pro-Kaplan mailer in May.

"That’s definitely a lot of money," Alameda County supervisor Keith Carson told us, referring to the spending in support of Hamill. "It certainly raises your antenna. In any campaign when you have two separate entrants putting resources in, you pause and ask, ‘What’s behind it?’<0x2009>"

On the surface the two groups backing Hamill appear unconnected. But recent media reports and a Guardian examination of campaign finance records reveal several ties between both organizations and Hamill’s old boss, Perata.

The first group, which calls itself Californians for Good Jobs, Clean Streets, and Outstanding Schools, displays clear Perata associations. The group’s treasurer is Mark Capitolo, who used to be Perata’s director of communications. Many of its donors consistently give to Perata’s numerous political action committees. And its campaign documents list a Sacramento phone number that, as the East Bay Express reported in May, belongs to Perata’s chief political strategist, Sandra Polka.

Polka and employees of her consulting business appear to be deeply involved in the senator’s affairs. When we called Perata’s Sacramento office seeking comment for this story, we were told to contact Paul Hefner, who works for Polka’s firm. Polka, Hefner, De La Fuente, Capitolo, and Californians for Good Jobs president, Hilda Martinez, did not return our calls for comment.

Perata’s links to the second group, known as Oakland Jobs PAC, are not as immediately apparent, and one person involved with the group denied that the legislator is aiding their cause. But an inspection of disclosure forms did yield evidence of the legislator’s potential influence. In mid-May, Oakland Jobs received its first $10,000 from another political action committee known as Vote Matters. As the Contra Costa Times reported, Vote Matters spent more than $175,000 earlier this year trying to pass Proposition 93, which would have allowed Perata and other termed-out state politicians to remain in office. Perata strongly supported the measure, which did not pass.

Robert Apodaca, who called himself a "personal friend" of Perata’s, informed the Guardian that he recommended that Vote Matters provide the money to Oakland Jobs. Apodaca is director of marketing for the architecture and planning firm MVE and Associates, which designed the huge Oak to Ninth Project along the Oakland waterfront. Perata passed key legislation that allowed the project to move forward, though it has yet to be built. Oakland Jobs donor Signature Properties is one of the project’s lead developers and, according to the East Bay Express, Oakland Jobs’ treasurer Sean Welch has worked for Signature Properties in the past. Signature Properties has also been a donor to Perata’s political committees, as have several other Oakland Jobs contributors.

In addition to his work for MVE and what he deemed his "unpaid advisor" relationship with Vote Matters, Apodaca is listed as a paid campaign consultant for a now-defunct committee called the "California Latino Leadership Fund" (CLLF). CLLF employed Polka as well as Apodaca in 2006 and 2007. Polka is now working on behalf of the other committee backing Hamill this year, Californians for Good Jobs, Safe Streets, and Outstanding Jobs.

DEVELOPERS’ DEEP POCKETS


Apodaca told us he could not remember why he pushed for Vote Matters, which normally supports state candidates and initiatives, to give money to a local committee like Oakland Jobs. But he was certain that Perata played no part in it. "He’s not involved in [the committee’s decisions]. He’s not even in the room."

But a well-placed East Bay source told us Perata was in the room with Oakland Jobs–affiliated figures while money was being sought to support Hamill. The source, who asked not to be identified, said Perata was part of a breakfast meeting several months ago at the downtown offices of the Oakland law firm of Wendel, Rosen, Black and Dean, at which De La Fuente asked a group of prominent developers to give large sums of money to an independent expenditure committee that would back Hamill.

The source could not recall if the committee was named by De La Fuente or anyone else at the meeting. But according to the source, pro-development activist Greg McConnell was there. McConnell told us he is involved in running Oakland Jobs. His business, the McConnell Group, has received funding from the group. The source also said representatives from Signature Properties and developer Forest Hill, another Oakland Jobs donor, were in attendance and that De La Fuente expressed an interest in raising "over a hundred grand" for the race.

A second source confirmed that Perata was at the meeting in question but did not recall De La Fuente asking for the funds, though the second source did say De La Fuente has subsequently called seeking money for Hamill’s campaign.

Reached for comment, McConnell asserted that Perata is not involved with Oakland Jobs. He said a morning meeting did take place at the Wendel, Rosen firm "a couple of weeks ago," during which Perata asked the developers in attendance to contribute directly to Hamill’s campaign. But according to McConnell, Perata left the room before De La Fuente made a pitch to fund independent expenditures. Direct contributions to candidates are limited to $600 per donor in Oakland. Independent groups like Oakland Jobs are not subject to those restrictions.

‘NOT KOSHER’


In addition to learning of De La Fuente’s alleged fundraising pitch at a recent developers’ meeting, the Guardian has obtained a letter from De La Fuente to potential Hamill donors asking them to attend a $600-a-head event Oct. 2. Nothing in the letter itself, dated Sept. 16, appears to violate any campaign finance rules. But it is printed on what appears to be official City of Oakland letterhead, complete with the official seal. That could mean trouble for De La Fuente.

"That’s not kosher," Mark Morodomi, the supervising deputy in the Oakland city attorney’s office, told us. State law prohibits the use of government resources for political campaigning. Before coming to Oakland, Morodomi spent 10 years at the California Fair Political Practices Commission, the state’s campaign-finance watchdog.

A line in small type on the bottom of the letter reads, "Not printed or mailed at public expense." Morodomi said the phrase "comes close" to making the use of city letterhead permissible, but he added, "It doesn’t inoculate him. Magic language doesn’t automatically make it okay … those words have to be true."

According to Morodomi, if any part of generating and disseminating the missive involved taxpayer-funded resources — from printing costs to paper, envelopes, or stamps — De La Fuente would be in violation of the law. Using Oakland’s official seal could also be problematic.

Hamill dismissed concerns that the invitation tested the limits of the law: "I’ve been around for 20 years, and I’ve seen council members use that kind of stationary for fundraisers all the time."

But City Attorney Russo, Morodomi’s boss, that even if the letter turns out to be technically legal because no public resources were used, he is uncomfortable with De La Fuente’s decision to mix fundraising with official city documentation: "It’s not great form. You have to be really mindful as to how it would appear."

Guardian interns Katie Baker and Anna Rendall contributed to this report.

San Francisco’s 14 billionaires

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The new Forbes 400 list of the richest Americans is out, and San Francisco seems to be doing just fine, thank you. This city — which can’t fund decent services for the homeless, which runs a structural budget deficit every year because it can’t raise enough revenue to cover basic city functions — has 14 billionaires.

They run from Larry Page (Google) at $15.8 billion to poor old Walter Shorenstein, who barely makes the cut at $1.3 billion.

And they are a reminder that this is a very rich city that can afford to do a lot better for its poorest people.

Here’s the list:

Larry Page (Google)
Steven Roberts (leveraged buiyouts)
Riley Bechtel (Bechtel)
Steven Bechtel Jr.(Bechtel)
Ray Dolby (Dolby)
Gordon Getty (oil)
William Randolph Hearst III (Hearst)
John Pritzker (hotels)
John Fisher (Gap)
Robert Fisher (Gap)
Thomas Steyer (finance)
William FIsher (Gap)
Don Fisher (Gap)
Doris Fisher (Gap)
Walter Shorenstein (real estate)

Let’s remember those names next time the mayor says the city doesn’t have enough money.

Newsom’s problem with affordable housing

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OPINION No mayor in modern San Francisco history has opposed more affordable-housing initiatives than Gavin Newsom. It’s time to make him pay the political price.

Newsom is the primary foe of Proposition B, which would create an affordable-housing fund in the city’s budget. At a time when fewer than 1 in 10 San Franciscans can afford the cost of a median-priced home and some 40 percent of all tenants spend 50 percent or more of their income on rent, the mayor’s position is a civic tragedy.

There’s currently only about $3 million permanently budgeted to affordable housing in the city’s $6 billion budget. Proposition B would increase that to about $30 million. Half of the funds would go to the construction of homes of two bedrooms or more for families with dependents, and 40 percent would be earmarked for homes affordable to people earning $18,000 a year or less (including seniors, people with AIDS, people at risk of homelessness, and our neighbors with other special needs).

The measure is supported by the Democratic Party, the Labor Council, the Sierra Club, and more than 50 other neighborhood, community, and environmental organizations.

Newsom’s opposition to Prop. B has to be placed in the context of his opposition to every major affordable-housing initiative proposed by either the Board of Supervisors or neighborhood residents over the past five years. Newsom and his administration opposed affordable-housing mandates for the Hunters Point Shipyard, proposals to increase affordable-housing fees for market-rate developers in the Market/Octavia Plan area, and increased affordable-housing fees for developers of the high-rise luxury condos at Rincon Hill. And, in a stunning display of arrogance and indifference, he refused to allocate some $30 million appropriated for affordable housing by the Board of Supervisors last year — and then held a campaign-style rally in support of that refusal, arguing that the city already spent enough on affordable housing!

Last month, Newsom’s Planning Commission passed on to the Board of Supervisors an Eastern Neighborhood Plan under which less than a quarter of the new units would be affordable to anyone earning less than $120,000. The city’s own General Plan says San Francisco needs nearly two-thirds of all new units to be affordable if the city is to house its own workforce — a key requirement in any green, "smart growth" development policy of the type the mayor says he favors.

Newsom claims his opposition to Prop. B stems from his concern about set-asides in the budget. Yet Newsom, as mayor and supervisor, has supported every other set-aside placed on the ballot. It’s just affordable housing that he opposes — even though Prop. B, which sunsets after 15 years, would account for less than 2 percent of the budget over that period and would leave some $47 billion in discretionary funds on the table.

The fact that Newsom has paid no political price for his continuous opposition to affordable housing is stunning. It’s time to change that — pass Proposition B with a resounding yes vote this November.

Calvin Welch is a member of the campaign for San Francisco Housing Fund — Yes on B and a longtime affordable-housing advocate.

An economic locavore policy

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EDITORIAL Local food is all the rage in San Francisco these days. The locavores and the slow-food people held a conference at Fort Mason a couple of weeks ago that drew huge crowds. Mayor Gavin Newsom is on board, and he loves to talk about creating a sustainable San Francisco. There are people in town who talk about energy independence, who talk about shopping locally, about building a city where people can live and work without using private cars.

We’re all for it — but in the wake of the wrenching meltdown in the financial markets, San Francisco needs to take a broad approach to the city economy. It’s time to develop a comprehensive plan to turn San Franciscans (and their government, businesses, and institutions) into economic locavores.

There are three basic reasons why the housing, credit, and financial markets are in the worst crisis since the Great Depression. The first two are related: The complexity of the financial instruments and securities being traded has increased so dramatically that even the heads of big investment banks didn’t know exactly what they were buying and selling. And the regulatory system under the George W. Bush administration has been unable and unwilling to keep up.

There’s not a lot San Franciscans can do locally to fix either of those problems (other than work to elect Barack Obama in November).

But the third factor in the current crisis is the globalization of money — and that’s something San Francisco can address.

For years, most famously in Seattle in 1999, protesters in this country have clashed with major institutions like the World Trade Organization over globalization issues. For the most part, they’ve focused on trade — on America losing jobs to low-wage companies, on big American chain stores selling goods made in third-world sweatshops, and on American money going to multinational corporations that prey on impoverished people and foul the environment. All of those are crucial issues — but so is the globalization of finance, which has received less attention.

And we’re not just talking about the stock market. The money San Franciscans deposit every day in local banks, the payments on mortgages and credit cards, the insurance premiums … all that cash goes into a financial system that instead of reinvesting in communities is buying and selling complex international securities like credit default swaps and derivatives. The traders and top executives who make these markets get colossal paychecks and bonuses — and most of us get nothing. Now that the whole house of cards is starting to topple, the small businesses and the people who need credit to buy cars or washing machines or bicycles or a house — the ordinary residents of cities like San Francisco — are the biggest losers.

The plan the White House has put forward is one of the grossest examples of corporate welfare in a generation — and even the Democrats in Congress are hesitant to oppose it.

But if San Francisco is serious about building a sustainable city, the mayor and the supervisors ought to start working, now, to create a citywide policy for economic localism. Among the elements:

•Banks that do business with the city should be required to set aside a significant amount of their loan portfolio for local small-business and housing loans. (The Treasurer’s Office can start with Bank of America, which currently holds the city’s deposit and payroll accounts.) The Community Reinvestment Act is far too weak and rarely enforced; San Francisco, with the leverage of a $6 billion city budget, can do much better.

•Most city contracts go to companies outside of San Francisco. Local businesses need to get a strong preference.

•The San Francisco controller needs to start looking at the city’s balance of trade — what do we import, what do we export, and how can we use more local products?

•The city needs to use tax policy to encourage local enterprise and discourage the out-of-town chains that use San Francisco as a strip mine.

There’s much more on the agenda, and there are plenty of people with good ideas. The crisis will define our political era; the city ought to be moving now to be in the lead.

Kink dreams

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› molly@sfbg.com

When it comes to BDSM porn peddlers Kink.com, apparently size does matter. At least, that’s how it seems now that the steamy studio has purchased the 200,000-square-foot San Francisco Armory. Suddenly, everyone wants to know: What’s the carnal concern going to do with all that space?

The answers are more diverse and ambitious than one might expect — ranging from creating a racy reality show to starting a perfectly PG-13 public community center. And thanks to the lascivious and lucrative imagination of Kink.com founder Peter Acworth, it might all be possible.

CONCEPTION AND CONTROVERSY


Though Kink.com has been producing independent niche fetish sites like Hogtied.com, WiredPussy.com, and FuckingMachines.com for the Folsom Street Fair crowd for more than 10 years — first from Acworth’s rented Marina District apartment and then from the Porn Palace on Fifth and Mission streets — it wasn’t until Acworth purchased the historical landmark in the Mission District, and was met with opposition, that the provocative porn empire really made it onto the public’s radar screen.

The armory, which was a training ground for the National Guard prior to its decommissioning 30 years ago, has been the center of controversy before. But that was mostly in-fighting between potential developers. Stringent zoning requirements and necessary but cost-prohibitive renovations discouraged buyers, leaving the Moorish behemoth on 14th and Mission streets vacant and outside public scrutiny.

But everything changed when Acworth got involved. His intended commercial use, for shooting scenes for all of Kink’s Web sites, complied with planning codes. And he didn’t need to do expensive renovations before he could start using, and profiting from, the building: what could be more perfect for bondage shoots or movies about women fucking machines than dungeons in disrepair? The only thing more ideal than the structure itself, according to Acworth, was its location in the heart of America’s most fetish-friendly city. "You couldn’t have dreamt up a more perfect place than a castle in the middle of San Francisco," says Acworth, who purchased the armory for $14.5 million in 2007 and started operations in January of this year. "It’s like divine intervention."

Acworth had to contend with a different kind of intervention — from a neighborhood group called the Mission Armory Community Collective, which opposed Kink.com as a potential neighbor. Though careful not to condemn porn per se, the group said it feared that the company’s presence in an already troubled neighborhood would introduce more problems. Even the Mayor’s Office, potentially bending to pressure, issued the following statement: "While not wanting to be prudish, the fact that kink.com will be located in the proximity to a number of schools give [sic] us pause."

But the sale quietly went through, and even as protesters stood outside, Kink was already filming new scenes for its subscription sites. Since then, the protests have largely died down. As the company removed graffiti from the brick facade of the armory, fixed windows, and generally improved the appearance of its stretch of Mission Street, neighbors began stopping by to congratulate Acworth — or to ask for a tour. (Incidentally, the public is invited to tour the armory on second Fridays. E-mail info@kink.com for an appointment.)

On a September afternoon, the building — mostly nondescript from the sidewalk except for the castlelike rooftop — seems quiet and innocuous. Three boys skateboard on the steps outside, stopping to talk to a woman walking her dog. The only people entering the doors, which are always locked and manned by a security guard, look as though they could’ve been going to the grocery store or the gym, wearing shorts, T-shirts, and sandals. In fact, on first glance inside, the place is almost disappointingly tame.

Acworth himself hardly looks like a porn kingpin. He’s sweetly attractive in an unmenacing, mainstream way, with an easy smile and casual style. His office, a room near the entrance to the armory, is large and comfortable, but bears no hint of his livelihood save for one tasteful bondage statue. Next to his desk are water and food bowls for the armory’s two live-in cats: Rudy and Lala. His assistant, a young girl in a minidress, leggings, and hoop earrings, looks like she could be working at American Apparel. Even the desktop pattern on Acworth’s Dell computer screen is vanilla: rolling green hills beneath a blue, blue sky. This sense of normalcy seems to be Kink’s main point.

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Van Darkholme, Peter Acworth, and Princess Donna in the Armory boiler room. Photo by Pat Mazzera

Acworth remembers getting turned on as a child in England by scenes in movies where women were tied up — and wondering if this signaled violent tendencies within himself. It wasn’t until adolescence that he discovered the relief (and release) of bondage porn. At the same time, he was already a burgeoning entrepreneur, a child who grew vegetables behind his house and tried to sell them to his parents. By the time he read a magazine article about a man making millions from Internet porn, as a Wall Street–bound doctoral student in a Columbia University finance program, it seemed almost inevitable that Acworth would find a way to marry his two lifelong interests: bondage and business. When he founded Kink.com in 1997, the idea was not only to jump on the dot-com money train, but also to demystify and promote fetish porn as an acceptable form of sexual stimulation.

Now, each of Kink.com’s Web sites is geared toward a particular fetish, run by a Webmaster who’s not only an expert on that particular kink but also has an interest in it, just as Acworth started Hogtied.com, which features women tied up, and Fuckingmachines.com, which showcases women having sex with machinery, because that’s what turned him on. These Webmasters act as director, producer, human resources manager, and often participant as well as Web developer.

"It’s hard to guess what people want," he explains, pointing out that it’s easier to make what you know.

Which means models aren’t actors. Just as directors are expected to be interested in the fetish they’re promoting, so are participants expected to enjoy the scenes they’re in. This isn’t about fake-breasted women pretending to like a face full of come. In fact, Acworth has had trouble in the past working with models from Los Angeles, trying to get them not to act. Kink’s sites feature actual people enjoying a private play party that just happens to be taped. Videos are intimate, personal, and disarmingly real — models talk to each other before, during, and after their sessions, just the way they would in their own bedrooms. They’re encouraged to smile on camera. Whether it’s shocking a woman with electric instruments or forcing a man to eat from a dog bowl, you get the sense that these people would be playing out these scenarios anyway — Kink just provides a salary, benefits, and a really nice location.

THE KINK CASTLE


As for the building itself, Kink has just begun to scratch the surface of its possibilities. The first floor, perhaps the most institutional-looking of the four, houses offices for Acworth, the marketing team, the production team, and the break room, which features a pool table, a disco ball, an espresso machine, a drum set, and a DJ booth (all for parties as well as employee use). Directly opposite the front doors is the Drill Court, a monstrous space that looks something like an airplane hangar crossed with a European train station. This is the space Acworth hopes will become the Mission Armory Community Center (which would unintentionally bear the same acronym as one of the groups that protested Kink.com’s purchase of the armory), a public venue available for sporting events, educational seminars, film festivals, and someday maybe a Folsom Street Fair party. According to MACC coordinator David Klein, a developer who has no affiliation with Kink.com, that dream is a long way off — with plenty of renovations, public meetings, and applications standing between here and there. In the meantime, the Drill Court serves as an occasional event site (such as for the Mission Bazaar craft fair earlier this year) and an employee parking lot. Currently, the most public location is the Ultimate Surrender room, where small numbers of members are invited to sit in bleachers and watch women wrestle each other to the ground on large mats — the winner, of course, gets to fuck the loser.

The armory’s basement is by far the most interesting area. "It’s a wonderland of sets," says Acworth, and it’s hard to argue with him. Some rooms seem perfect as is, such as a former gymnasium whose floor has long since been removed to reveal gothic-looking structural planks punctuated by intimidating bolts. All it took was adding a platform in the center of the expansive room and a pulley above it to make it a perfect bondage set. Next door is an army-style communal bathroom, another favorite as-is set. Other rooms on this floor are a completely furnished 1970s New York loft; a padded cell with an observation room connected by a one-way mirror; a former hermetically sealed gunpowder room that’s been outfitted with all sorts of rings, hooks, and rope pulleys; an office connected by a cage to the "Gimp Room," where ceiling chains hang like some kind of Donkey Kong homage; a hallway storage room chock-full of expected (whips, chains, clamps) and unexpected (mops, long-handled brushes with hard bristles, small boxes with smaller holes in them) toys; the large prop room, where human-shaped cages, monstrous doghouses, and machines like the back breaker and water-torture wheel are kept; the laundry room, where shelves are lined with douches, enemas, latex gloves, and sanitized sex toys; and the former shooting range, which has a Pirates of the Caribbean feel, complete with a river running through it.

And that’s just the start of it. Just when you think every nook and cranny has been used — including an oddly shaped corner off the production gallery that looks like a 19th-century psychiatric ward — you’ll discover a hallway that’s virtually untouched. Hardly any construction has been done on the third or fourth floors, including the officers’ quarters, which occupy one turret. Even the roof, with its castle-y details and flags, seems like a perfect potential shooting location.

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Kink’s porn palace, the San Francisco Armory. Photo by Pat Mazzera

Kink already has plans for several new sets: the military clean room, a stark ’50s-era space, slated for FuckingMachines; an abandoned electrical equipment room for WiredPussy, where dead vintage electrical equipment will line the walls; an Alcatraz-esque prison gallery for BoundGods.com; and an expanded DeviceBondage.com room, which will be clad with cultured stone to look like the basement of an old castle.

Reps won’t say just how much it costs to maintain the armory or to shoot a scene, but Acworth told 7×7 magazine last year that profits were upward of $16 million. And spokesperson Thomas Roche says that the cost of a shoot, including sets, makeup, wardrobe, video and still photo staff, and editing, would be prohibitive if Kink weren’t doing lots of them. Luckily, the armory allows for a volume of shoots that makes it feasible — sometimes four or five in a single day. And it’s good variety for viewers too, who get used to seeing the same sets over and over in various porn films — even ones by different companies.

FLIRTING WITH THE FUTURE


Perhaps the most advantageous thing about moving into the armory, though, has been the increased possibilities for Kink’s growth. With so much space, an almost infinite number of sets can be created without tearing any old ones down. Since multiple shoots can go on at once, multiple sites can be developed and maintained. And buying the building has started attracting directors, models, and Web developers on a scale Acworth hasn’t seen before.

"It was initially difficult to find people," says Acworth, who conjectures that it’s not just the publicity from the building but also the exciting prospect of working there that’s turned the tide. "Now they’ve started to approach us."

One of those who approached Acworth was Van Darkholme, a Shibari rope bondage expert, a porn performer, and the proprietor of fetish film studio Muscle Bound Productions, who was living in LA. Darkholme saw an article about Acworth and the armory in a magazine and contacted him immediately, hoping to get involved. The Vietnam-born Darkholme, who seems almost starstruck by Acworth’s genius, was shocked not only to hear back from Acworth himself, but to be offered a job at the helm of Kink’s new gay bondage site: BoundGods.com.

"What Peter does is so avant-garde and so fresh, I just wanted to come in and mop the floor," says Darkholme, who moved to San Francisco in April and launched his new site Aug. 1.

Darkholme’s BoundGods takes Kink’s principles of intimate, conversational, playful, and mutually enjoyable interactions and applies them to his particular brand of gay sexuality: lean, muscled studs. In one video, a man is tied up in the army-style bathroom at the armory while another fucks him with a large black dildo. In a similar scene, anal beads are gradually pulled from the bound, naked man — much to both participants’ obvious pleasure (though interestingly, neither are hard). Darkholme makes appearances in many of the videos, often as the dominant character — a striking contrast to the camo-shorts-and-T-shirt-wearing, somewhat shy individual I interview at the armory.

He’s clearly proud of the product, not only because it’s well produced but also because there’s almost no competition in the gay market.

"I hate to generalize, but most of what I see out there falls into this trap of gay men putting on leather and grunting and groaning," says Darkholme. "It’s visual, but doesn’t have as much dialogue. What we do is very real and very intimate, with a realness in what they’re saying."

The site marks Kink’s first serious foray into the gay market — a step the company couldn’t quite take while limited by space and resources at the Porn Palace. But set builders are already hard at work constructing an Alcatraz-esque prison gallery for new Boundgods shoots. And the creation of a sub-brand, KinkMen.com, promises more gay-focused fetish sites to come. (Incidentally, Kink tried a gay site several years ago with Butt Machine Boys, which is still online at www.buttmachineboys.com but not listed on the main Web site. Acworth said the site never took off, partly because of lack of budget and partly because, unlike Darkholme, the director wasn’t speaking to his personal interests.)

For now, though, Darkholme has his hands full with BoundGods. His immediate goal is to find and train 12 new dommes for the Web site — a tougher feat than might be expected. "Femme dommes can dish it out and can really take it," he says. "There’s a small percentage of men that can do that." In fact, during some of his first shoots, filmed in Budapest, his bevy of gay models and porn stars were shocked when Darkholme finally opened up his bag of toys.

"They looked at me like the circus had come to town, or like I was going to make one of the Saw movies. Their hands were shaking," he says.

So when Kink sets up its demonstration booth at Folsom Street Fair (Sept. 28, www.folsomstreetfair.com), Darkholme will have two purposes: recruiting talent (both people he can train and experts who have something to teach him) and publicizing his new brand.

"I want to say, ‘We’re here, we’re queer, we want to be part of your community!’" he laughs.

But Darkholme won’t be alone at his booth. Among other popular Kink stars like Isis Love, new director Lochai, expert rigger Lew Rubens, and porn stars LaCherry Spice and Natassia Dream will be WiredPussy.com creator Princess Donna, who’s launching her new pet product, PublicDisgrace.com, next month. The site will feature blatant public bondage, punishment, erotic humiliation, and explicit sex between models and, potentially, passersby.

The veteran domme is filming most scenes in Europe, where attitudes (and therefore laws) about sex are more lax. In fact, while shooting a scene on a public street in Berlin, the crew was stopped by a couple of motorcycle cops who said only, "If you cause an accident, you’ll be liable," before going on their way. In the shoot, a half-naked girl is tied to a park bench, made to carry a dog bowl while on a leash, fondled by her female master, and fucked by a man.

"It’s the adrenaline rush of potentially getting caught," says Acworth, explaining the site’s appeal and recipe for success. The site will also feature a slew of new faces. Plus, it’s the perfect time of year to launch a new fetish site. "Sales pick up when the kids go back to school," Acworth says.

There also plenty of developments in the works that don’t follow the start-a-new-fetish-site model. For starters, Kink is moving to a Flash format, where the delay is only 2 seconds instead of 20. The new technology means that users can actively participate in scenes via chat rooms, where they can give instructions to dommes and watch their demands be carried out. Members of Kink.com can already do this on DeviceBondage.com, but Acworth hopes to switch to a per-minute billing system so even more viewers can participate. At the moment, the site is structured so you must be a member of a particular site in order to watch videos; Acworth would like to move to a single-sign-on system where you can join Kink.com and have access to any of its member sites.

Perhaps the most ambitious technological plan for Kink’s future, though, is the development of an online Web community that will be called Kinky.com. Following the Web 2.0 trend of user-based content, Kinky.com will allow members and models to maintain user profiles, interact with one another on message boards, blog, and even date. Yes, it’s a way to stay up-to-date with Internet trends and to provide an experience that pirated video sites can’t, but Acworth says it’s also a natural outgrowth of the kind of porn he creates.

"In contrast with straight porn, which people want to consume in private, this is a community people want to be a part of," he says.

Which leads us to the project closest to Acworth’s heart: the reality show.

THE REAL WORLD: KINK.COM


In the spirit of community and BDSM as a lifestyle, Acworth wants to transform the armory’s top floor into a series of Victorian/Georgian-inspired rooms where couples will live and fuck on camera 24-7. Participants will be given hierarchical positions — from maid to master of the house — and live according to the rules of domination and submission. Acworth’s already started designing the grand dining room, inspired by the sets in Remains of the Day, including candelabras, elaborate draperies, and, of course, a long, long table. "I consider it the pinnacle of where everything comes together," he says.

The dream is still at least a year off: he’ll have to figure out payment and subscription details, renovate the nearly untouched top floor, and recruit couples who want to live their kinks on camera. But he’s hoping he’ll soon have more time to devote to the project. With more than 100 employees and a huge building to maintain, Acworth’s role has shifted from almost entirely creative to almost entirely administrative. He misses the early days, when he found models on Craigslist, tied them up in his rented Marina apartment, interacted with them himself, and then posted the shoots. (You can still see these early shoots online.) Soon he’ll promote an employee to chief operating officer, which will allow him to back off the business side and devote himself to the reality show.

So did he ever imagine his little project would get so big? Absolutely not, Acworth says. If he’d had any inkling, he adds, "I would’ve been terrified." But it only seems natural that the little English boy who used to try to sell his parents’ own vegetables back to them would eventually have an eye for business — and that his interest in fetish porn would lead his business instincts here.

As for how his parents feel about his chosen profession, Acworth says they’re not exactly vocally supportive, but they don’t condemn him either. His mom, a sculptor, has started creating pieces that feature couples in coital or bondage positions, and may start to sell them on the site. His dad, a former Jesuit preacher, says only, "As long as no one’s getting hurt and there are no animals, I guess it’s all right."

What are safe streets?

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› amanda@sfbg.com

The San Francisco Streets and Neighborhoods workgroup, convened by Mayor Gavin Newsom, sat down to its seventh meeting Sept. 9 "to analyze and understand the key issues impacting safety on our streets and formulate recommendations for needed improvement with the goal of creating a safe environment on our streets for everyone."

Some of the top dogs on public safety were at the table, including Police Chief Heather Fong, fire department Capt. Pete Howes, representatives from the district attorney and public defender’s offices, and Kevin Ryan of the Mayor’s Office of Criminal Justice, who co-chairs the group.

Were they here to discuss the recent spike in shootings in the Mission District? The murder of a Western Addition teenager three days earlier? The effectiveness of gang injunctions in those neighborhoods? The upcoming march on City Hall of students from June Jordan High School demanding leadership from the mayor on the rise in violence?

Not really. A quick survey of the agenda indicated most of the talk would be focused on another great threat to public safety: homeless people.

"One of the things we never talked about is what are the specific undesirable behaviors we’re focusing on," facilitator Gary Koenig said to the group. Wielding a dry-erase marker at the whiteboard, he probed further, "In other words, the objective we set for ourselves had to do with safety on the streets. So what are the objectionable behaviors that make the street unsafe or make the street be perceived as unsafe by others?"

"Shooting people," blurted Seth Katzman, a representative from the Human Services Network, a coalition of nonprofits.

The room erupted in laughter.

"I’m going to keep bringing it up," he said, not laughing.

Koenig asked what other activities they were targeting, and a more telling picture emerged: drug dealing, aggressive panhandling, blocking the sidewalk, public urination and defecation, littering, intimidation.

"On intimidation," said Chief Fong, "if you have someone walking down the street and they’re yelling out or blasting out, sometimes they’re talking to themselves and all of a sudden, ahh! People don’t know how to respond and think that maybe there’s going to be a next step in terms of some kind of aggressive behavior."

"Would you call that scary behavior?" asked Koenig, marker poised to note.

"Just kind of unpredictable behavior in terms of how someone’s carrying themselves. They haven’t committed a crime, but …" Fong trailed off.

Koenig added "unpredictable behavior" to the list. "Remember, we’re really not talking about crimes here," he said. "We’re talking about what are we focusing on to help improve safety and the sense of safety on our streets."

That’s the real mission of the group: to make downtown more comfortable for tourists, shoppers, business owners, and condo residents; and more uncomfortable for homeless and poor people panhandling, loitering, urinating in public, acting strangely, getting loaded, or sleeping on the streets.

The group was clearly weighted toward enforcement, but coordinated with buy-in from those who demonize the homeless and those who defend them: Ryan, a law-and-order Republican, shares chair duties with the Rev. John Hardin, executive director of the homeless services nonprofit St. Anthony Foundation. Others at the meeting included Steve Falk of the San Francisco Chamber of Commerce; Heather Hoell of Yerba Buena Alliance; Joe D’Alessandro, CEO of the Convention and Visitors Bureau; Bobbie Rosenthal from Local Homeless Coordinating Board; Anne Kronenberg of the Department of Public Health; Reginald Smith from the 10-Year Council on Homelessness; Jennifer Friedenbach from the Coalition on Homelessness; Human Services Agency director Trent Rhorer; and Dariush Kayhan, the mayor’s homeless policy director.

Their ultimate goal is to come up with a handful of recommendations for a street safety pilot project that Newsom will implement in two neighborhoods within six months. The group’s task, on this day, was to weed through the list and decide what the group would endorse.

So far all the proposals have targeted poor and homeless people with enhanced services, punishment threats, and new restrictions on street life. Suggestions ranged from establishing drug-free and "VIP" zones in the downtown business and tourist areas (which came from the Chamber) to COH’s suggestion to fully fund treatment on demand. But all agreed that money is tight.

"If we did a lot of the service things, we probably wouldn’t be doing a lot of the others," Hardin noted early in the meeting, indicating the enforcement and justice items.

The mayor has not set aside any funding to implement the pilot projects, according to Kayhan. And that reality steered the group away from social services and toward crackdowns.

For example, Friedenbach suggested the chronic inebriate program run by DPH does a good job, but said that it’s underfunded and should be evaluated and expanded. Koenig asked DPH’s Anne Kronenberg if this is possible.

"You know it all comes down to money," she replied. "There’s a little disconnect going on for me. What we’re saying is good but I also know what the budget situation is in the city. That’s one [sticking point] where if we could get the mayor on board … or some other creative way of funding."

"Money is a real issue," Rhorer piped up. "So I’m thinking maybe if it’s a high cost item, we take it off the list." Yet, he added, "I totally agree the chronic inebriate program needs to be expanded to more placement facilities."

Instead, it was removed from the list.

"The problem is, if we take out some of these matters, what we’re going to be left with is enforcement ordinances and the justice system. And I think we all agreed a long time ago the idea isn’t to incarcerate people, but to get housing and services for them," Katzman complained. "It’s going to leave us with the stick and not the carrot."

Recommendations in the "stick" category included establishing "drug free zones" with enhanced penalties for dealing, using, and possession. Similar zones already exist within 1,000 feet of schools and parks in San Francisco, but have been implemented more broadly in other cities.

After discussing the constitutionality of making one street corner drug-free but not others, some suggested folding it in with another idea on the list: VIP zones.

"What does VIP stand for?" someone asked.

"Very Important Person," someone else answered.

"How about B and T? Business and tourism zones?" Rhorer suggested. "Marketing of VIP sounds a little more difficult."

According to the description on the meeting agenda, VIP zones would be established around downtown, the Yerba Buena center, Fisherman’s Wharf, Chinatown, and Union Square as areas subject to "special enforcement of drug laws, aggressive panhandling, sitting/lying on sidewalks" and other "quality of life crimes."

Defending the idea, D’Alessandro said, "Just from our perspective, tourism generates $500 million a year in local taxes that fund a lot of the programs we’re talking about at this table. And we’re very threatened. We’ve lost a lot of business." He said one convention bailed because a visitor was spit on.

"There’s obviously huge problems with this. It’s specifically targeting people because of their status, their housing status," Friedenbach said, sarcastically suggesting they have a registration for homeless people entering certain areas of the city.

"I think we have to separate aggressive panhandling and blocking thoroughfares from poverty," D’Alessandro said. "This is not targeting poor people."

"When you say sitting and lying on the sidewalk, that is targeting people who don’t have a place to sit," Friedenbach countered.

"Maybe we don’t do this unless we provide places to sit," D’Alessandro replied."

"Like more drop-in centers," Rhorer offered.

But temporary places to sit and sleep don’t seem like part of Newsom’s vision. Since he took office, more than 400 shelter beds have been lost. In March, Newsom defunded the only city-funded 24-hour drop-in center serving both men and women.

By the end of the meeting, many of the ideas for enhancing services remained in play, like ramping up Project Homeless Connect and the Homeless Outreach Teams, as well as more drop-in centers, housing, and job programs. All of the law enforcement–oriented changes were still on the list, including implementing the drug-free and VIP zones.

Speaking afterward, Katzman returned to the issue of what defines safety, and for whom. "We have tenants and clients in the Tenderloin who are afraid to go out of their buildings at night because of drug-related violence. They’re not complaining to us about people peeing on the streets," he said. "No one likes it, but that’s not the big issue right now."

Editor’s Notes

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› tredmond@sfbg.com

The Democrats, who control both houses of the state Legislature, lost badly on the state budget. They caved in, they sold out — and the worst part is, they had very little choice.

The state can’t keep running forever without a budget. I think we could have gone a little longer, and the Democrats could have turned up the public pressure a bit more, but in the end, it probably wouldn’t have mattered a bit. A small number of anti-tax Republicans from very conservative districts now control the entire state budget process.

And the worst part of that is, I’m not sure we can change that. So I’m thinking we should try something else.

Just about everybody knows by now that California is one of only three states that requires a two-thirds Legislative majority to approve a budget. The state Constitution also requires a two-thirds vote to raise taxes. So unless the Democrats can take control of both houses by a 67 percent majority, the GOP can exert a veto over any attempt to close a budget deficit with anything but deep, draconian cuts.

And the Republicans who hold sway aren’t the moderate types who might want to negotiate. One reason the Democrats control both the Assembly and the Senate is that they’ve been experts at drawing legislative lines, shoving large majorities of Republicans into a small number of districts. That means more Democrats in Sacramento — but it also means that many of the Republicans represent areas where there’s little chance a Democrat can challenge them — and where the voters will rebel against any representative who raises taxes.

"The Republicans have no incentive ever to raise taxes," Assemblymember Mark Leno explained to me recently. "They all fear that if they vote for a tax increase, they will lose their seats. And history shows that they are right."

That’s why the polls show an overwhelming percentage of Californians want better schools — but the state budget will take billions away from education, putting the next generation of Californians at risk.

So the buzz in more progressive circles in Sacramento is starting to focus on a constitutional reform that would eliminate the supermajority for budget approval. But that would only be meaningful if we also scrapped the two-thirds rule for new taxes — and that’s going to be a tough sell. I can see the money flowing by the tens of millions into a campaign to keep legislators from raising taxes. And given the fact that the public in general doesn’t trust the Legislature, it’s possible that battle will be lost.

Over and over, starting with Proposition 13 in 1978, California voters have approved anti-tax measures. I hope we can turn that tide around, but I think we also need a backup plan.

See, it doesn’t take a supermajority to give cities and counties the right to raise taxes on their own.

Leno, for example, has a bill that would allow cities to impose their own car taxes. In San Francisco, we’re talking big money, $50 million or so — enough, perhaps, to blunt the impact of the state’s cuts to public schools and public health. It might be easier to push for the passage of that sort of measure than for statewide Constitutional reform.

Let cities pass their own income taxes. Let counties impose oil-severance taxes. Amend Prop. 13 to allow higher taxes on commercial property.

Then maybe San Francisco and Berkeley and Los Angeles will wind up with better schools and parks and streets and hospitals, and Orange Country and the other anti-tax havens will see their public services collapse as the state keeps cutting. Maybe after a while they’ll get the point.

California’s budget is like Sarah Palin

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Today’s Ammianoliner:

California’s state budget is like Sarah Palin: bogus, phoney, a bridge to nowhere, Republican.

(Sup. Tom Ammiano, revving up for his startup as an assemblyman in Sacramento,
speaks on his home telephone answering service on Tuesday, Sept. 16, 2008.) But what is Tom’s idea on solving the state’s structural budget crisis? Better yet, what is his solution for solving the city’s structural budget crisis?)
Yes on the Clean Energy Act (Proposition H) and bringing cheap clean energy and public power to San Francisco. B3

Cleaner and cheaper

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>>Click here for our chart explaining how San Francisco can take over PG&E’s system — and wind up with $214 million a year in extra revenue. (PDF)

>>Click here for a comparison of public power and investor-owned utilities on rates and renewable energy. (PDF)

>>Click here for a comparison of Mark Leno’s Sacramento PG&E and SMUD (public) bills. (PDF)

› amanda@sfbg.com

Pacific Gas & Electric Co. has been saying that if the Clean Energy Act passes, it will cost the city $4 billion — and electricity bills will go up $400 a year per household to cover the costs.

But according to a Guardian analysis, a publicly owned utility could cover the costs of taking over PG&E’s system, finance enough renewable energy generation to make the local grid 50 percent green, and still generate $214 million a year in surplus income — without raising rates a dime.

In fact, the city could cut electricity rates by 15 percent — so that the average San Francisco home using 1,000 kWh a month would save $400 per year — and the system would still make $107 million profit annually.

Our analysis is based on conservative assumptions, and probably underestimates the city’s potential revenue. The figures all come from publicly available sources.

The bottom line: PG&E’s campaign materials are, at best, gross distortions of the truth.

WHAT PUBLIC POWER WOULD COST


The Clean Energy Act, which will appear as Proposition H on the November ballot, mandates that the city undertake a study to determine the most cost effective and expeditious way to achieve 100 percent renewable energy by 2040.

If the study determines that a publicly owned utility would provide the cheapest, cleanest energy, the first thing the city would need is a distribution system — the wires, poles, substations, breakers, and all the other physical infrastructure required to provide power. The legislation authorizes city officials to issue revenue bonds to build a distribution system or to buy PG&E’s, either through a negotiated sale price or eminent domain.

In 2001, the last time the city voted on a public power measure, PG&E said its system was worth $1.4 billion. Seven years later, although much of the system has deteriorated, the price has jumped to $4 billion. But utility officials freely admit they have no hard numbers: in a letter dated July 24, David Rubin, the director of service analysis, wrote, "PG&E has not done an inventory of its system, but it is readily apparent that the fair market value of PG&E’s electric system exceeds $4 billion … "

There are, in fact, hard numbers on the value of the system — numbers that both PG&E and state tax officials have used and agreed on for years.

The state Board of Equalization is tasked with determining property values on utilities and levying taxes accordingly. In 2007 the board reports, PG&E paid taxes on property worth $1.2 billion in San Francisco. That’s what the state auditors say is the value of everything PG&E owns here, including both the electricity and gas distribution lines, the buildings on Market and Beale streets, the service center, vehicles, desks, computers — much of which the city would have no interest in acquiring.

According to documents acquired through a public records request, the city controller’s office assumed in its ballot analysis of the cost of Prop. H that 50 percent of the assessed value was utility related.

We’ll make the same assumption. If the San Francisco controller and Board of Equalization are right, the actual value of PG&E’s electricity distribution infrastructure is $595 million.

That could be a bit low or a bit high — real estate appraisal is an inexact science — but at least it’s derived from a solid number. Even if you assume that the board’s appraisers are off by a few tens of millions of dollars in either direction, the number PG&E has put forward is wrong by about 600 percent.

Rubin’s letter to the city controller outlined how PG&E determined $4.18 billion as the system’s worth — by using "replacement cost new less depreciation" (RCNLD) as a measure. "California law specifically approves RCNLD as a method for valuing improvements to land, such as the electric facilities at issue here," Rubin wrote.

But appraisers disagree with Rubin. "The Code of Evidence section they are referring to mentions RCNLD as one of many pieces of evidence that can be considered in valuation cases," a veteran appraiser with knowledge of PG&E’s system, who requested anonymity, told the Guardian.

Because PG&E is a regulated utility that passes all the capital costs of doing business onto customers, many valuators argue that the rates those customers pay (reflected in the BOE figures) indicate the true value of the system.

"The value is the value is the value," the appraiser said. "Both PG&E and the BOE agree that fair market value is approximately equal to rate base." That, in this case, would be about $600 million.

William Marcus, a lead economist on utility issues for JBS Energy with 29 years experience in the field, told us that the standard method employed by the BOE in valuing energy utilities is original cost less depreciation and deferred taxes. "I’m not going to tell you RCNLD is $4 billion because PG&E has been known to come up with very high values," Marcus said. Even the RCNLD value is "almost certainly a serious matter of controversy." Marcus, a Yolo County resident, witnessed the 2006 public power battle between the Sacramento Municipal Utility District and PG&E, and said, "There was almost a factor of four between what PG&E was saying and what SMUD was saying and they were both using RCNLD."

"A reviewing court might look at RCNLD but would also look at original cost," Marcus said. "So you’ve got a high end and a low end."

The city would pay an interest rate of between 4.5 to 5.5 percent on revenue bonds, according to Ken Bruce in the Board of Supervisors Budget Analyst’s office. He pointed out that revenue bonds are repaid by dedicated revenue streams that are identified prior to the bond issuance, which can affect the interest rate. "It would be subject to a lot of scrutiny by rating agencies," he said. With this in mind, we used the high end in our analysis, and assumed annual payments at 5.5 percent. If the city buys the system at the price the Board of Equalization and Controller’s Office estimates, and the bonds are repaid over 20 years, the annual cost would be $49.8 million.

CLEANER THAN PG&E


Prop. H sets ambitious standards for renewable energy — but our analysis shows that a city agency could easily afford to increase dramatically its alternative energy portfolio.

Some public power utilities (like private utilities) still rely on dirty coal and large hydropower — but this isn’t true of public power in California. Of the five major public power utilities we surveyed, all except the Los Angeles Department of Water and Power are doing a better job at developing renewables than PG&E.

Just across the Bay, Alameda has enacted a very aggressive renewable-energy plan. "As we go forward, there’s a chance we might be 100 percent renewable if the price is reasonable," Alan Hangar of Alameda Power and Telecom told us. In November, the Alameda city utility will ink two new deals for energy produced at landfills and boost the agency’s percentage of renewables from 55 percent to almost 70. A deal for more hydropower is also in the works.

Hangar said the utility was able to purchase more renewables without raising rates "because we’re tight-fisted. We don’t have a lot of solar because it’s so expensive. But if the price came down we’d look at it."

Even though public power agencies aren’t under the same state mandate of 20 percent renewable by 2010 that investor-owned utilities like PG&E are required to meet, the Sacramento Municipal Utility District set its own renewable power goal — and has already surpassed it. "Being a utility with a board of directors elected by the public, there’s more pressure there to get renewable energy in the mix," said SMUD spokesperson Chris Capra. "The voters here told us they want more solar and green energy." SMUD recently started offering customers solar power from a 1 MW array owned by a private company that sells the power to SMUD. Because the sun is an infinite resource, unlike natural gas, oil, and coal, the utility was able to lock in a long-term affordable rate for the power. "Now we can get solar power to customers who can’t do solar on their own," Capra said.

For calcuutf8g the cost of renewables, we used figures from the city’s Community Choice Aggregation plan. If Prop. H passes, the CCA plan would be implemented as the first step toward the overall goal of 100 percent renewables by 2040.

According to the plan, over the first three years the city would phase in 360 MW of renewable energy, greening 50 percent of our grid. The Board of Supervisors already authorized the use of revenue bonds to finance 150 MW of new wind generation, 31 MW of photovoltaic cells, 72 MW of distributed generation, and 107 MW of enhanced conservation measures. The CCA plan calls for a three-year investment of $129 million for solar and $170 million for wind.

The supervisors have already passed the CCA plan, and it’s been signed by Mayor Gavin Newsom. That legislation authorized $1.2 billion in bonds to finance the plan — more than enough to get the renewable energy ball rolling.

Other financing possibilities exist. For example, PG&E’s energy efficiencies are paid for by a public goods charge levied by the California Public Utilities Commission, which for San Franciscan ratepayers totals $7 million per year. The city-owned system would manage that money instead — and that surcharge is already included in the average rate we calculated.

Furthermore, there are state and federal subsidies that can be applied to renewable energy purchases — these would be given to customers to purchase rooftop solar panels, wind turbines, and other distributed generation that could contribute up to 72 MW of the initial 50 percent in the first phase of the CCA plan. The city already gives $3 million in solar incentives to residents, and this program could be expanded with additional revenue generated from the power business.

We assumed the city could generate a substantial portion of the power it needs from renewables. For the first few years, power would still need to be bought on the spot market; we included those figures in the expense column.

The total costs for operating the system — including operations and maintenance, power purchases, and replacing the taxes that PG&E currently pays to the city: $524.45 million.

THE REVENUE SIDE


But after all the expenses are added up, selling electricity is still a lucrative business. If the city kept power rates at the same level PG&E currently charges — that is, if nobody’s electric bill went up or down at all — the city would clear $214 million a year in surplus revenue from the system. That’s almost as much as the current budget deficit.

Of course, a public power agency — run by accountable public officials — might decide to cut rates instead of banking cash. So we ran a scenario in which the city would cut rates by 15 percent. The bottom line: San Francisco still comes out $107 million ahead.

How can a city agency sell power so much cheaper and still make money?

For starters, PG&E has a guaranteed profit margin of 11.7 percent, approved by the state. A city-owned system doesn’t have to please shareholders with its profit — any surplus here could be folded into the general fund, remain in the San Francisco PUC piggy bank for future infrastructure needs, or be refunded to taxpayers. This is the basic difference between public and private ownership of a utility — and it translates into lower, more stable rates over time.

"For a number of years, we had no rate increases at all," said SMUD’s Chris Capra, who explained that the agency was able to stave off rising natural gas prices because of bulk purchases locked in at low rates. Last year the elected SMUD Board voted for a 7 percent rate increase to cover rising power costs and replace equipment.

The agency’s rates are still far lower than what San Franciscans pay to PG&E — and the private utility has announced it will seek a 6.5 percent rate increase in January.

Palin’s veto power

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By Sarah Phelan

-palin.jpg
So, maybe the pen IS mightier, after all? Palin’s budget vetoes.

Forget about using Wikipedia to find out the truth about GOP VP nominee Sarah Palin.

As online reports have noted, a sockpuppet called “Young Trigg” scrubbed the entry for Alaska’s first female governor the day before McCain publicly announced his VP pick.

That story should be a wakeup call for those tempted to rely on doctored or poorly researched online articles, in trying to find out who Gov. Sarah Palin really is.

The good news? There are plenty of other online resources that provide valid insights into Palin’s political priorities.

Consider, for instance, Governor Palin’s vetoes of Alaska’s FY 08 and 09 capital budget.

This shows that Palin vetoed a $350,000 statewide school substance abuse education and prevention program.

She also vetoed funding for wireless access and laptops in Alaskan community schools, including those in the North Pole district. (Guess Santa can spring for those, right?.)

And she eliminated funding for several native community projects, including the Kluti Kaah community recreation and learning center in the Interior Villages, the Jilkaat Kwaan cultural heritage center and Bald Eagle observatory in the Southeast Islands, and the Ilisagvik College Workforce Development program in the Artic.

Palin also vetoed a snow fence in the Bering Straits, a Zamboni blade sharpener for the Homer Hockey Association, statewide boy scout camp upgrades.

Oh, and she vetoed the Anchorage Police Department’s $17. 5 million request to expand its headquarters, for the second year in a row, along with a number of fire department’s requests for emergency safety equipment.

This summer, Alaskan lawmakers argued for a robust capital budget, which they said would help build the state and boost its economy. But Palin disagreed, saying she wanted to limit spending to public safety, health and infrastructure, and angering some representatives, by not giving them a chance to defend programs which either fell entirely victim to, or were halved, as Palin made $268 million worth of cuts, leaving Alaska with a $3.6 capital budget.

Here are Palin’s views on the line-item veto, taken from KTUU’s site.

“Well, you know, that’s the beauty of our system here — is checks and balances, provide for that tool to be used, if they deem that necessary, those who hold the purse strings and that’s the lawmakers if they want to override,” Palin said.

In addition to vetoing a $100,000 KTOO Government Transparency Project, Palin also axed a $50,000 community development center’s video project that was to have been called, “Alaska Teen Talk Show.”

The project aimed to produce pilot talk shows written and produced by the students, with students advised to audition several prospective hosts, rating each one on poise, intelligence, personality and looks.

“You should ultimately base your choice on a host’s familiarity with your show’s theme,” states the application.” If you hire the most attractive but vapid interviewer to host a political talk show and they don’t know anything about the presidential race, viewers will know it and change the channel.”

Sadly, I’m not at all convinced that viewers do change channel, just because a good-looking host is vapid. And while I don’t know why this particular project didn’t get funded, I can’t help imaging that whoever wrote this grant application must be wishing that they’d chosen some other example, when applying for this grant.

The budget stalemate never ends

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Folks in Sacramento are telling me that the state may be without a budget for another month or more. Of course, it’s largely due to the fact that California requires a 2/3rds majority to raise taxes — which means a handful of Republicans, who have signed pledges never to raise taxes, can hold the entire state hostage.

Robert at Calitics has a good line on the need for reform — but there’s no way a Constitutional amendment will happen before 2010. So until then, the Democrats are over a barrel, and eventually will probably have to agree to borrow money to cover the deficit — with no new taxes.

The problem is that, whatever the columnists and critics say, the Republicans have no incentive at all to accept a budget that raises taxes — and they have every incentive not to. Thanks in part to skillful Democratic gerrymanders, the GOP districts tend to be very conservative. And any Republican who breaks his or her pledge and agrees to raise taxes will be targeted for extinction.

It’s an ugly situation, and even Schwarzenegger can’t get the members of his party to move an inch.

How bad will it have to get before the public demands reform? Pretty bad.

Feed our elders well

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› amanda@sfbg.com

GREEN CITY Conventional wisdom is that it costs more to eat well, but Alameda County Meals on Wheels has found real value in switching from processed foods to the kind of fresh, local, sustainable fare being touted at the upcoming Slow Food Nation conference, which begins Aug. 29 in San Francisco.

Bay Area Community Services (BACS), the nonprofit that manages Meals on Wheels, has been struggling with a perennial budget deficit, rising fuel and food costs, and a waiting list of 200 seniors eager to join the program.

Even though the easy, heat-and-serve method is the national model for feeding large amounts of people cheaply, BACS was finding that trying to supply 1,200 people a day with meals in their homes and at 21 different congregate sites through a contract with a food processing company just wasn’t working.

"Our solution to the problem was a social enterprise kitchen," Jenny Huston told the Guardian. The 20-year veteran chef and educator is director of Culinary Social Enterprise at BACS. She and her boss, executive director Kent Ellsworth, took the program in a new direction. They went "farm to table," meaning they stopped serving frozen food and started serving meals made with fresh meat, dairy, fruits, and vegetables, and they did it by establishing a culinary arts training program with a curriculum based on the day-to-day work of preparing the Meals on Wheels fare from scratch.

"If you have a structural deficit, why are you spending more money on food?" Huston pondered, asking herself the question many critics might raise. "Sure," she said, "processed stuff is much cheaper, but you’re not seeing the full cost."

What is that full cost? That’s a hot topic for the Slow Food Nation forums, such as how far an avocado travels to become guacamole in Maine. Beyond aligning meals with produce that’s locally available, Huston and Ellsworth are attuned to what happens to a community when its most vulnerable populations — children, seniors, and the disabled — stop eating well.

"Good foods are not the privilege of people who have money. It’s the right of everybody," Ellsworth told the Guardian. "When we buy wholesale, local, and fresh, we get a better product for a good price. It’s the right way to do business."

But raw ingredients require more kitchen work. By partnering with a number of organizations, including the Pleasant Valley Adult School and Oakland Adult and Career Education Program, BACS was able to find budding cooks though a free, 12-week job training program.

They also connected with Community Alliance for Family Farms, a network of local growers and distributors who could provide up to 350 pounds of each raw ingredient a day. Just a few months into the new program, a typical Meals on Wheels lunch now includes all local milk, 10 percent local meat, and 19 percent local produce — and it’s made from scratch by workers who are learning enough food preparation skills to qualify for entry-level kitchen jobs.

And they’re doing it for just pennies more a day. "Our food cost has only gone up five cents per meal since we’ve gone farm to table," Huston said. Yet donations since April have increased 25 percent — about $20,000 — meaning that people who were once asked to give a dollar or two for their lunches are voluntarily giving more for better food.

Though the Meals on Wheels budget gap hasn’t disappeared, Huston likens it to the first few months of any business, when turning a profit is elusive. They’re hoping to expand catering services and market the meals to other day and residential programs.

At the Aug. 14 graduation dinner, Ellsworth announced that a foundation had approved a $200,000 program investment loan to purchase new equipment, remodel their kitchen, and grow the school. It was welcome news for the first class of five cooks. Reflecting on the experience, Geri Haas said, "It was really nice going there, knowing I was relied upon to provide fresh food for our elders."

Orlando De’Aguero, another graduate, announced that he got a job with a local organic food preparation company, eliciting cheers from the gathering of friends, family, and fellow classmates. He said, "I wouldn’t have traded the three months I had here for anything at a culinary school."

Shakespeare and sexy Jesus

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More in this issue:

>>An interview with Steve Coogan

>>More new movie reviews

› a&eletters@sfbg.com

Sundance darling Hamlet 2 has been dubbed by at least one critic as this year’s Napoleon Dynamite; but with an R rating and dialogue like, "I feel like I’ve been raped in the face," the movie isn’t nearly as quirky as that assessment implies. This is a good thing. Don’t get me wrong, I enjoy comedy served with a side of whimsy just as much as any Juno fan; but brazenly puerile movies that lie on the more ribald end of the humor spectrum have their own undeniable charms.

There is an art to making an enjoyable lowbrow comedy, as bizarre as it may seem. It’s the reason why deceptively dumb movies like Team America: World Police (2004) have achieved cult status and obscenely dumb movies like Hot Rod (2007) should never, under any circumstances be viewed — and incidentally, both were scripted (at least in part) by Hamlet 2 cowriter Pam Brady. There may be a fine line between stupid and clever, but the line that separates silly from moronic is just as — if not more — tenuous. Brady’s good name is happily on the road to recovery, though, with this over-the-top farce. To quote Polonius from Hamlet 1, "Though this be madness … there is method in it."

All of the madness, as it were, revolves around Dana Marschz (Steve Coogan), an inept but undeniably gung-ho high school drama teacher. You see, Marschz (and every consonant is pronounced in that name) is a failed actor who devotes himself to the two students in his class and the low-budget, sparsely attended stagings of recent Hollywood classics like Erin Brockovich. When the school newspaper’s prepubescent, hyperarticulate drama critic gives his latest production a scathing review, Marschz is distraught, but he flirts with the idea of writing something original. It isn’t until the following school year, when funding for drama is cut, that he’s shocked into action. He begins working on what will become a sort of play-within-a-play — a lewd and ridiculous sequel to Hamlet with a cast of characters that includes Albert Einstein, sexy Jesus, a bi-curious Laertes, and everyone else from the original Shakespearean tragedy, brought back to life via time machine.

Though the tone is overwhelmingly absurd, this is a satire. It isn’t a particularly sophisticated satire, but it’s effective nonetheless — offering a critique of censorship and the ACLU; Amy Poehler plays a sassy, foul-mouth lawyer with no qualms about defending a high school play wherein Jesus gets a hand job. Rounding out the cast is Catherine Keener as Marschz’s crass wife, David Arquette as the Marschzs’ virtually silent boarder, who inexplicably follows them everywhere, and Elisabeth Shue as herself. But make no mistake, this is Coogan’s show. He’s a star in his native England, yet as far as American cinema is concerned, he’s consistently been relegated to supporting roles. Finally he’s allowed to shine here, and the movie ultimately owes its success to his performance. He falls down repeatedly in an intersection while wearing roller skates, he exposes his butt, he moonwalks on water as sexy Jesus — all of it inspired. Shakespearean comedies usually end in a wedding: though no one gets married in Hamlet 2, it’s a hell of a lot funnier than anything the Bard ever wrote. *

HAMLET 2

Opens Fri/22 at Bay Area theaters

The “ultra-liberal” city

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By Tim Redmond

I don’t know what Heather Knight means by “ultra-liberal,” but to say that the San Francisco Democratic Party has taken a “sharp turn to the left” is a bit miselading. Yes, the progressives ran an agressive campaign and picked up some seats this spring, but most of the votes on most of the issues were pretty close to unanimous; public power, fro example, had support from across the spectrum. Same with most of the supervisors races.

In fact, the only reason the Democratic Party seems a little more progressive now is that it has so often in the past been controlled by moderates (and in the days of Willie Brown, by a political machine).

So what’s up with the “ultra-liberal,” anyway?

I mean, the word “liberal” used to mean someone who believed that government was part of the solution to social problems, that income ought to be redistributed and the weathy should pay their fair share and that taxes levied and collected in a progressive fashion should be used for programs to help the needy.

That describes most of the people the Chron is now calling “ultra-liberal.” It does not describe, for example, Gavin Newsom.

In San Francisco, taking liberal stands on social issues is easy. The economic issues are a lot more tough, and that’s where you can draw political lines. The Shorensteins, Walter and Doug, are (generaly speaking) social liberals who give money to Democrats, and they always have. But when it comes to regulating land use and development and taxing downtown — when it hits the Shorensteins in the pocket book — they’re as anti-tax and anti-regulation as most Republicans.

John Burton asked me once why I didn’t call him a progressive, and I told him that the difference between a liberal and a progressive these days is that progressives don’t trust real-estate developers. That’s just a small example, but it makes the point. The progressives in San Francisco stand for both social and economic justice.

Here’s what I think is going on: The Newsom camp is angry about the use of the term “progressive” to describe Newsom’s critics, because it implies that Newsom somehow isn’t progressive. (Honestly, by any meaning of the word, he’s not. Care not Cash was the opposite of a progressive program. His budget is the opposite of a progressive budget. On economic issues, he’s very much a centrist.)

But Newsom’s operatives have been putting pressure on the media, and I’m sure on the Chron, to change that terminology. So now that Chron has come up with the disparaging term “ultra-liberal.”

Really, based on the recent endorsement, the Democratic Party in SF today pretty closely reflects San Francisco values. The nasty label’s got to go.

Newsom hacks away at the budget

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It’s no surprise that many of the items Mayor Newsom hacked out of the city budget at the last minute were important to supervisors who didn’t go along with the mayor’s original budget proposal.

Just look at the complete list (here as a pdf). Among the items axed: $130,000 for a Bernal Heights childcare center (a project Sup Tom Ammiano has been working on for two years or more), $397,000 for homeless drop-in services (which progresive board members have pushed for); $300,000 for home health nurses (a priority of SEIU Local 790) … the list goes on.

The Chron quotes Robert Haaland:

“It’s a very aggressive and obviously retaliatory move. But we’re not just going to roll over,” said Robert Haaland, a political organizer for SEIU. “Imagine you’re a working person and all of a sudden your salary gets slashed. People can lose their homes just because the mayor wants to retaliate. It remains to be seen how we’ll fight back, but we’re certainly not going to watch our members lose their homes.”

I just got off the phone with Haaland, and he went even further: “What they did is an unfair labor practice, retaliating against someone who refused to make concessions,” he said.

Which pretty much sums it up. SEIU Local 1021 wouldn’t play ball with the mayor, so now the union members get hit.

Ammiano was more than a bit pissed off. “It’s all retaliatory,” he told me. “Look at the Bernal preschool. This is a tiny amount of money, but it’s important to the community. And he didn’t even have the courtesy to call me himself and tell me about it.”

Added Ammiano: “It’s particularly ironic since he talks all the time about keeping families in San Francisco. I guess that doesn’t mean low-income families.”

The killer here is that these kind of cuts seem minor when they’re part of a $5 billion budget, but on the ground, on the streets, they really matter.

I’m still waiting to hear if the mayor will support Sup. Aaron Peskin’s revenue measures on the fall ballot, which would provide plenty of money to avoid these kinds of cuts.

Colorful, brutish, and short

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Sid Meier’s Civilization: Revolution

(2K Games; Xbox 360, PlayStation 3, Nintendo DS)

GAMER Reviewing games means reviewing a lot of sequels. Mainstays like Final Fantasy (Square Enix) remind us that game publishers are the only people besides porn makers willing to append "XIII" to anything, and this fall’s Madden ’09 (Electronic Arts) proves that gamers are willing to buy the same product once a year, 20 times. Still, repeat installments allow game designers to refine their original creation, often on a much bigger budget. A game’s best elements can be emphasized and streamlined, its worst overhauled or jettisoned, its complexity more fully realized.

There is no series in which retooling is more apparent than Sid Meier’s Civilization (Microprose), which first appeared for the PC in 16 colors in 1991. Bearing the tagline "Build an empire to stand the test of time," the game did just that, allowing Meier an opportunity to refine his creation in four official sequels and numerous spin-offs. Each game has expanded on Civilization‘s timeless turn-based gameplay, which kicks off in 4000 BC with a band of nomadic settlers and spans the breadth of human history. Sid Meier’s Civilization: Revolution is the franchise’s first foray into the lucrative console market, foreign territory to most strategy titles due to the difficulty of micromanaging a global empire with a cumbersome gamepad. As an adaptation, the game performs impeccably, tackling a complicated interface with aplomb and introducing subtle changes that make the gameplay more action-packed and less time-consuming without altering its totemic core mechanics.

A cartoony, isometrically viewed 3-D makeover and brief in-game battle animations nod to the graphical prowess of modern consoles, and the game introduces a robust online multiplayer component that seeks to solve Civ‘s perennial quandary: how to make a game that lasts three hours on the short end a viable player vs. player enterprise. Though finding a game using the built-in system was quick and painless, waiting for my opponents to finish their turns was not, and it seemed that the inclusion of a chess-style timer in the early stages would become a curse when managing a far-flung empire in the end.

Credit is due to Meier for pushing himself as a designer — transutf8g a beloved, epic computer franchise into a digestible, fast-paced console title is no easy task. One hopes his efforts will win Civ new fans, but in striving to make an accessible game, Meier has elided one of Civilization‘s cornerstone enjoyments: the correlation between the scale of the experience and the time it takes to play a game. There is simply no other franchise that allows you to launch a SCUD missile at Tenochtitlan because Montezuma made the mistake of destroying your iron mine, 5,000 years ago. 

Redevelopment cooked Lennar grant

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Officials with the San Francisco Redevelopment Agency admitted yesterday that they cooked a state grant application, by claiming that they needed the funds to fill a $25 million gap in the budget of a project that the City is developing with Lennar at Hunters Point Shipyard.

But what they really wanted the monies for, the agency claimed, was to boost a shrinking community benefit fund that was supposedly to be derived from development profits.

The admission came during a hearing into Lennar’s fiscal health. The hearing was requested by Sup. Chris Daly, following the discovery that the San Francisco Redevelopment Agency had applied for, but been denied, a $25 million grant from the state’s Department of Housing and Community Development to subsidize infrastructure costs.

The June 10 grant application discovery, coupled with Lennar’s June 7 bankruptcy filing at Mare Island, heightened concerns that Lennar was planning to mothball the Shipyard/Candlestick redevelopment project, even though voters had greenlighted an increase in the size of that project, just days earlier, on June 3.

Daly’s mothballing concerns were understandable, given that Stephen Maduli-Williams, SFRA’s Deputy Executive Director of Community and Economic Development had claimed, in a May 23 letter to the state that, “without the requested $25,021,079 Infill grant allocation, our infrastructure project faces a serious risk of being mothballed. The project would face increased costs from work stoppage, remobilization efforts and substantial change orders.”

At yesterday’s hearing, Maduli-Williams repeatedly denied that there was any hole in the project’s budget. Instead, he argued that he had manufactured the hole in an effort to increase funds to the project’s community benefit fund.

“This was one of the resources we felt compelled to apply for, because, if successful, it would be a direct benefit to the Legacy Fund,” Maduli-Williams said, noting that 60 percent of the profits from the development go to Lennar, while only 40 percent to the Redevelopment Agency, who will turn these funds over to the Bayview.

Maduli-Williams noted that had the agency received the grant, “it would, if anything, have been a pass-through to the agency, not Lennar.”

As for the “hole in the project,” that these monies allegedly would have filled, Maduli Willians claimed he invented the hole after being turned down in the first round of applications, in which $1 billion worth of applications were vying for only $240 million in grants.

“Without this hole, we were told, we would not qualify,” Maduli-Williams said. “It’s part of our job to turn over every rock we can to benefit the Bayview.”

“Lennar is not in severe financial difficulty,” he added, observing that pursuant to the deposition and development agreement that Lennar signed, a developer is deemed to be in default, if its net worth falls below $400 million.

“Currently, Lennar has $900 milion in cash and has zero corporate debt,” Maduli-Williams claimed. “Yes, there is money to complete the project.”

Cleaner power, cleaner money

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OPINION Nine months ago neighborhood leaders from the Potrero Hill and the Bayview districts were invited to stand and applaud at a press conference at Mirant’s Potrero Power Plant. As reported in the San Francisco Chronicle: "One of the state’s oldest and dirtiest power plants … could shut down as soon as 2009, city leaders announced…. The mayor said the signing represented ‘an important day in the history of the city.’<0x2009>"

But now that signed agreement to close Mirant — through a decade-long effort to have the city run its own power-generating "peaker plants" as a replacement — is itself on the verge of extinction. Mayor Gavin Newsom, a probable candidate for governor and choosing political expediency over cleaner air, reversed field and claimed that the cleanest way to close Mirant … is to keep part of it running. And a number of environmental activists backed him up, claiming that the city-owned peaker plants would bring more pollution to southeast San Francisco than retrofitted combustion turbines at the Mirant plant.

How can that be, when even conservative estimates admit that the newer city-owned turbines run 30 to 35 percent cleaner than the 40-year-old Mirant turbines?

The answer is money.

The argument goes like this: the city-owned peaker plants are funded by $273 million in revenue bonds and a contract with the state’s Department of Water Resources that runs until 2015. After that, the debt remaining on the bonds would require the city to run the peakers for more hours and many more years of operation than retrofitted combustion turbines at the Mirant plant. The Mirant proposal would be financed by reliability contracts from the state’s Independent System Operator (Cal-ISO) that essentially pay for the turbine capacity, not actual operation. That means fewer running hours, and no potential cost to the city’s budget. Therefore, the Mirant retrofit is less polluting, and the generators can be shut down sooner.

That’s been a persuasive argument so far, and it has stopped further consideration of the city-owned peakers. But the argument misses one important fact and one critical question. The fact is that the city-owned peakers don’t cost $273 million anymore; Cal-ISO agreed in June that the fourth peaker plant (to be located at the airport) wasn’t necessary, leading to savings of more than $110 million.

There’s an even more important question: why don’t we finance the city-owned peaker plants using Cal-ISO’s reliability contracts instead of the bonds and the DWR contract? Apparently no one at the Mayor’s Office, the Public Utilities Commission, or the environmental groups supporting the Mirant retrofit has asked this question. Yet it provides the cleanest answer to the dilemma of the peaker plants — it would give us the cleanest machines, under city control and policy, so they can only run when absolutely necessary and we can shut them down as soon as possible.

At the end of the day the proposal for a Mirant retrofit isn’t really about a retrofit at all — it’s a proposal to keep the city’s energy future in the hands of others. The choice facing us — at City Hall, in the environmental community, and in the neighborhoods — is between being smart about our energy policy or handing over that policy to a corporate boardroom in Atlanta.

Tony Kelly

Tony Kelly is president of the Potrero Boosters Neighborhood Association.

Arnold’s tax flip: Spare the rich, tax the poor

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Faced with an overdue state budget that is simply not going to be balanced by spending cuts alone, Gov. Arnold Schwarzenegger has commendably reversed his longtime pledge of “no new taxes.” Unfortunately, he did so by choosing the most regressive form of taxes: a one-cent sales tax hike that would hit the poor far harder than the rich.
Compare that to the budget plan worked out in the California Assembly (with the help of our own Assembly member Mark Leno), which Leno said would “restore $8 billion in the most draconian cuts that the governor proposed.” How? By increasing income taxes on the wealthiest Californians, a plan that would raise about $8.2 billion per year, roughly double what the governor’s sales tax proposal would bring in.
So the Democrats want to tax the rich (who would write the increase off of their federal income taxes anyway and end up paying about the same) and Schwarzenegger wants to tax the poor. But it all may be a moot point considering it takes a few GOP legislators to reach the two-third threshold for passing a budget and all the Republican legislators have signed on to an inane “no new taxes” pledge, apparently content to just starve state government.
Stay tuned…

Wilder blooms

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After Burnt Money (2000), Marcelo Pineyro’s conventionally entertaining true crime tale of gay bank robbers, queer blooms began to grow within the wilder garden of new Argentine cinema. Here’s a guide:

Smokers Only (Veronica Chen, 2001) Chen’s debut — about a hustler who sometimes tricks in ATM stalls and the goth girl who becomes obsessed with him — is probably the first chapter of the new queer Argentine cinema. Unfortunately, it’s boring and pretentious, built around an object of affection who isn’t as compelling as he is cute.

Suddenly (Diego Lerman, 2002) B. Ruby Rich (as quoted on Michael Guillen’s Web site the Evening Class): "A queer empathic … lesbian romantic escapade. If you’ve never seen or heard of [Suddenly], you’re missing your chance to see a young woman abducted at knifepoint by the lesbian street punks that desire her."

Ronda Nocturna (Edgardo Cozarinsky, 2005) A veteran director who fled Argentina in 1974 following the reelection of Juan Perón, Cozarinsky returned from exile to make this film. At least partly inspired by Chen’s Smokers Only, he borrows from that film’s night-in-the-life-of-a-hustler scenario. But Ronda Nocturna is hotter, wiser, and more far-reaching in its bottoms-up view of corruption in urban Argentina.

Agua (Veronica Chen, 2006) Chen’s follow-up to Smokers Only isn’t queer in story line, but its gaze at the male body in motion — and masculine psyche — is a beyond–Claire Denis case of female eye for the straight guy in turn for the queer guy. Handsome lead actor Rafael Ferro builds on his memorable appearance in Ronda Nocturna. A burst of pure athletic cinema with moments that match 2005’s Zidane (on a much lower budget) in their intense interiority, Agua refreshes.

Glue (Alexis Dos Santos, 2006) A triumph of intimate collaboration between a trio of young actors and a new director, Alexis Dos Santos’s first movie takes the bi-way to becoming maybe the best — or at least most honest and deep — teen movie of the 21st century so far. Lead actress Inés Efron’s brave gawky beauty reveals what’s been lacking from American cinema since the heydays of Sissy Spacek and Shelley Duvall.

La Leon (Santiago Otheguy, 2007) Perhaps influenced by Lisandro Alonso, this handsome black-and-white feature scopes out alienation, attraction, and phobic intolerance in the Paraná Delta.

XXY (Lucía Puenzo, 2007) Efron returns in the role of an intersex teenager, delivering another superb performance.

What the candidates need to tell us

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EDITORIAL The traditional kick-off date for fall campaigns is Labor Day, but in San Francisco, the candidates for supervisor have been in full campaign mode for months now, and some of the races are beginning to take shape. As political groups start making endorsements, it’s worth looking at what’s at stake here — and what the candidates ought to be talking about.

For starters, it’s going to be a crowded fall ballot, and there’s the potential for a broad progressive coalition to come together around a clear agenda for the future. Among the proposals headed for the ballot are an affordable housing plan, a green energy and public power measure, two new tax plans that focus on bringing in revenue from the wealthy, and a huge bond act to rebuild San Francisco General Hospital. All of the progressive candidates should be backing those measures and working together for their passage.

But the candidates also need to offer long-term solutions to the serious problems facing San Francisco. This is a city under enormous pressure, and unless some dramatic policy changes take place, San Francisco will continue its rapid slide toward becoming a city of and for the very rich.

A few items that ought to be on every progressive candidate’s platform:

•<\!s>The city’s energy future. The fall ballot measure, the Clean Energy Act, will lay the groundwork for a sustainable local energy policy, although the supervisors will have to aggressively push the key element: creating a city-run electric utility. As long as Pacific Gas and Electric Co. controls the local grid, San Francisco will never meet its environmental goals. Rates will remain high, conservation will be an afterthought, and PG&E will resist any type of renewable program it doesn’t control. The candidates need to make clear that they’re committed to a full-scale public power system and tell us how they will move the goals of the Clean Energy Act forward.

•<\!s>The housing crisis. San Francisco’s housing policy today is utter insanity. If it continues, the city in 10 years will look nothing like it does now. The middle class will be gone. Families with kids will be a vanishing species. Tens of thousands of people who work in this city — and keep its economy going — will be forced to live far away. Fancy new towers filled with millionaires will destroy entire neighborhoods and displace the city’s remaining blue-collar jobs.

The affordable housing ballot measure is a good first step, but much more is needed. Solutions aren’t easy, but they start with one premise: the city doesn’t need any more housing for the rich. Affordable-housing programs that set aside, say, 20 percent of new units for non-millionaires are a losing game because they accept as reality the prospect of a city where 80 percent of the residents are millionaires.

San Francisco needs a comprehensive policy that forces the city to meet its General Plan goals, which call for 64 percent of all new housing to be available at below-market rates. We need to hear how the candidates would make that happen.

**The structural budget deficit. San Francisco is a wealthy city, but there’s never enough money in the budget for the level of services residents want and need. With the exception of the rare boom years, the city has always had a revenue shortfall. Sup. Aaron Peskin’s two tax measures could bring in another $50 million per year — no chump change by any means. But the city needs about $200 million more per year to make the numbers balance. The candidates need to talk about where that will come from.

**The Muni meltdown. You can’t have a transit-first policy without effective transit, and Muni’s in trouble. Budget cuts are a big part of the problem, but the city needs a modern transit program — and that’s barely even on the drawing board. How are the candidates going to fix one of the city’s most important services? Will the candidates support the long-overdue completion of the city’s bicycle network and other bold efforts to decrease reliance on the automobile?

**The war on fun. As the city gets richer, it gets more uptight. Street fairs are under attack. Clubs are facing police crackdowns. Permit fees and red tape are making it almost impossible to hold events in Golden Gate Park. Sup. Ross Mirkarimi has a ballot measure to make some of the permitting easier, but what are the candidates going to do to end the Gavin Newsom–era attack on arts and entertainment?

There’s much more: The police aren’t solving homicides. Small businesses feel utterly ignored by City Hall. The Planning Department is run by developers. The list goes on. And the next Board of Supervisors will need to address all those issues. Over the next few months, the candidates that want the progressive vote need to give us some clear explanations of where they stand.

Red ink stains green rhetoric

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› news@sfbg.com

GREEN CITY Environmentalists are pondering the state’s seemingly schizophrenic approach to fighting climate change after a recent state report encouraging increased use of mass transit came out at the same time that the governor’s budget proposal denies the state’s public transportation fund more than $1 billion.

The California Air Resource Board’s June 26 Draft Scoping Plan to combat global warming, released pursuant to Assembly Bill 32, the California Global Warming Solutions Act of 2006, is at least the second major report this year to recommend expanding public transit. But the governor’s latest spending plan redirects that sizeable chunk of money — gasoline tax revenue that voters who approved Prop. 42 in 2002 directed toward transportation projects and agencies — to help reduce the state’s $17 billion budget deficit.

"There’s a lot of misallocation of resources going on," said Tom Radulovich, executive director of the San Francisco nonprofit Livable Cities. "The governor on the one hand wants to say, ‘You should all ride mass transit.’ But on the other hand, he is taking away [transit] support from the state budget."

The governor’s press secretary, Aaron McLear, said the budget proposal spares transit from cuts faced by other programs during these tough economic times.

"Funding for public transportation stays level in the governor’s budget proposal. That’s in the face of a $17 billion deficit. The fact that it remains level is better than a lot of cuts we’ve had to make," McLear said. "We wish we could increase it, because it certainly is something the governor believes in. But again, the state is facing a $17 billion shortfall. We can only spend the money that we have. There will have to be some tough decisions to be made."

The CARB plan calls for California to lead by example by encouraging state employees to take advantage of public transportation during their commutes. It notes that transportation accounts for 38 percent of California’s greenhouse gas emissions, most of which comes from cars and trucks, and that curbing these emissions is critical to reaching California’s goal of reducing total emissions by 30 percent over the next 12 years.

"Overall I think this is headed in the right direction. For better or worse, this really does put California ahead of any other state if we fully implement this plan. Of course, having a good plan does not guarantee that it will be implemented, but this is a very serious attempt," said Gabriel Metcalf, executive director of the San Francisco Planning and Urban Research Association, of the state’s global warming plan.

Yet he also said that reaching the plan’s ambitious goals for reducing greenhouse gases means people will have to drive less and use transit more, and that local governments will need to stop approving urban sprawl projects.

"The easy answer that most Americans would rather have is to keep driving just as much as always, but have alternative fuels. And that just is not going to work. AB 32 has a major land use change component. Is it enough? No, it is not. But it is at least an acknowledgment of what we have to do," Metcalf said. "Overall I’m pretty impressed, but they’re not proposing enough land use change and they’re not proposing transit funding increases. They are still unwilling to face facts about the role of the automobile and climate change."

Yet instead of increasing funds for mass transit, the governor has redirected billions of public transportation dollars into the general fund, maintaining status quo transit funding in the face of increased gasoline prices and the new climate change mandate. At the same time, billions of dollars have been allocated to highway expansion programs, exacerbating the global warming problem.

"Anybody’s budget should be a reflection of their values, whether it’s an individual or an agency," said Carli Paine, transportation program director for the Transportation and Land Use Coalition. "The state is saying, ‘We value public transportation as a climate friendly choice.’ Yet when it comes to expressing those values in the budget, we say, ‘It doesn’t matter that much,’ so we’re actually undermining those original statements."

The governor’s revised state budget allocated $306 million to the State Transit Assistance Program, the state’s source of funding for mass transit operating costs such as maintenance, drivers, fuel, and mechanics.

This is the same amount that was allocated last year, even though transit ridership is the highest it has been in more than 50 years, according to a June report by the American Public Transportation Association. And factor in that crude oil is about $140 per barrel now compared to about $73 per barrel this time in 2007, according to the Energy Information Administration, a federal agency. "The budget is kicking transit in the teeth when it needs it [money] the most," Radulovich said.

The $306 million allocated to the State Transit Assistance Program comes from funds generated by Prop. 42, the voter-approved gasoline tax measure. But Paine said the STAP should also be entitled to what is called "spillover" money. Spillover refers to additional funds generated when the price of gas rises faster than inflation on other goods, leading to unusually high revenue from the tax.

The governor’s budget predicts $1.77 billion in spillover for the 2008–09 fiscal year, but he decided to put the money toward shrinking the deficit instead of funding public transportation. The current fiscal year was the first time since the proposition passed that the spillover did not go toward public transportation.

Radulovich said he believes the state is hesitant to fund mass transit — even though it recognizes the importance of reducing the number of cars on the road — because building more roads and freeways leads to more expansion and urban sprawl.

"Sprawl makes a lot of people a lot of money," he said, including oil companies, car companies, homebuilders, construction firms, and trucking companies. "These are political questions, not policy questions. The policy answers in many ways are very clear. The question is whether there is the political will to deal with it, and that’s what we’re going to find out."

Radulovich said this reality is why many California business groups support outward expansion and put pressure on the government to fund highways over mass transit. The Bay Area Council, for example, pushed aggressively for highway expansion during the last budget cycle.

Paine said she believes political pressure also comes from structural flaws in the state’s budget system.

"It’s the legacy of Prop. 13, which really froze the income our state received from [property] taxes," she said. "Public entities that are committed to social services, such as education, are still receiving property taxes at levels that are decades behind what they used to be." This puts a strain on the state’s general fund, and money has to be diverted from the mass transit account to relieve the burden generated by California’s low income tax levels, Paine explained.

Paine said a new budget proposal has been submitted to the California legislature that would restore hundreds of millions of dollars to the mass transit account for the 2008-09 fiscal year by generating additional revenue for the general fund. She said that since 2000, more than $3 billion of mass transit money has been redirected to the general fund, and the number will exceed $4 billion if the governor’s current proposal goes through.

"This isn’t just a problem this year — it’s a chronic problem. And public transportation is chronically being leaned on for relief," she said. "It’s just not a sustainable system."

TRANSIT FUNDING 101

Carli Paine of the Transportation and Land Use Coalition explained the finer points of California’s complicated system for funding — or not funding — improvements to the public transit system. Transit’s main account is called the State Transit Assistance Program. This money is flexible, but is mostly used for transit operations (maintenance, operations, fuel, mechanics, drivers, and so forth). Sometimes, though, it is used for capital projects (such as buying new tracks or replacement cars).

The STAP is the largest portion of the public transportation account, and the funding is critical. As Paine put it, "If you can’t even operate the system that you have, it doesn’t help much to have money to lay new tracks." The STAP is therefore often the focus of discussions about transit funding.

Prop. 42, which directs California’s gas tax to transportation projects, funds the STAP, although not all Prop. 42 money goes there. For example, 25 percent of Prop. 42 revenue goes to a special account for transit capital projects.

Prop. 1B is another big source of transit funding. It is the 2006 measure that allowed California to sell $19.9 billion worth of bonds to fund transportation programs. Only about $4 billion of that was allocated to public transportation, with the lion’s share of the money going toward new freeway projects.

This is where things get a little complicated.

California originally had a sales tax on all goods except gasoline. In the 1970s, voters passed Prop. 42, which decided that it would be more equitable to reduce the sales tax rate by a fraction of a percentage point, but expand the sales tax to include gasoline.

This was expected to be revenue-neutral for the state, so it wouldn’t cost people more. That was true unless gas prices rose quicker than the cost of all goods, which it eventually did.

Then-Gov. Ronald Reagan argued that it was important to return the extra revenue to public transportation because when gas prices rise, more people use public transit. As a result, this "spillover" has been set aside for transit expansion.

Last year was the first year in which the spillover was diverted to the general fund instead of being given to the STAP. It was redirected to help close the state deficit, and the 2008–09 budget proposes doing the same thing this fiscal year. (Janna Brancolini)

The street-sweeping non-scandal

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Warren Hickle over at the argonaut is all in a tizzy about the prospect that mayor’s budget reduces the regularity of mechanized street sweeping on the west side of town. But I have to agree with the commenters at sfist — most neighborhoods would be thrilled to have those damn street sweeping machines gone.

Street sweeping is a tax on people who own cars but don’t have enough money to have garages. That’s mostly tenants. I’m all for getting rid of cars, and I’m all for taxing them, but the tax ought to be fair: Charge everyone who owns a car in SF a set fee a year, or even better, charge a fee based on the value of the car, so the rich pay more. Or levy a tax based on the weight of the vehicle (hits SUVs) or the gas mileage (ditto).

The sweeping is mostly a regressive way to bring in revenue for the city. I live in a part of town where we don’t have any street cleaning program, and our streets are just fine.

Besides, it’s kind of environmentally dumb: If you use your car once a week or less, isn’t it better to leave it parked instead of starting it up every couple of days and driving it around to avoid the street sweepers?

I can see sweeping on Mission, 16th Street, Haight Street and other major commercial strips, but why would anybody on the west side be mad about losing a service that costs a lot, does little good and amounts to a bad tax?

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