California

Dreams of Obama

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Barack Obama, it is true, is a transformational leader. But he needs a transformational movement to become a transformational president.

He is transformational not only by his charisma and brilliance, but by embodying the possibility of an African American being chosen president in the generation following the civil rights movement. Whether he wins or loses, the vast movement inspired by Obama will become the next generation of American social activists.

For many Americans, the possibility of Obama is a deeply personal one. I mean here the mythic Obama who exists in our imaginations, not the literal Obama whose centrist positions will disappoint many progressives.

Myths are all-important, as Obama writes in Dreams from My Father (Three Rivers Press, 2004). Fifty years ago, the mythic Obama existed only as an aspiration, an ideal, in a country where interracial love was taboo and interracial marriage was largely banned. As Obama himself declared on the night of the Iowa primary, "Some said this night would never come."

The early civil rights movement, the jazz musicians, and the Beat poets dreamed up this mythic Obama before the literal Obama could materialize. His African father and white countercultural mother dared to dream and love him into existence, incarnate him, at the creative moment of the historic march on Washington. Only the overthrow of Jim Crow segregation opened space for the dream to rise politically.

In one of his best oratorical moments, Obama summons the spirit of social movements built from the bottom up, from the Revolutionary War to the abolitionist crusade, to the women’s suffrage cause, to the eight-hour day and the rights of labor, ending with the time of his birth when the walls came down in Selma and Montgomery, Ala., and Delano. As he repeats this mantra of movements thousands of times to millions of Americans, a new cultural understanding becomes possible. This is the foundation of a new American story that is badly needed.

Obama’s emerging narrative also includes but supercedes the other major explanation of American specialness, the narrative of the "melting pot," by noting that whatever "melting" did occur was always in the face of massive and entrenched opposition from the privileged.

John McCain represents a very different aspect of the American story. His inability to limit the adventurist appetite for war is the most dangerous element of the McCain, and the Republican, worldview. It is paralleled, of course, by their inability to limit the corporate appetite for an unregulated market economy. In combination, the brew is an economy directed to the needs of the country club rich, the oil companies, and military contractors. A form of crony capitalism slouches forward in place of either competitive markets or state regulation.

Yet McCain has a good chance, the best chance among Republicans, of winning in November. He appeals to those whose idea of the future is more of the past, buying time against the inevitable. And McCain is running against Obama, who threatens our institutions and culture simply by representing the unexpected and unauthorized future.

My prediction: if he continues on course, Obama will win the popular vote by a few percentage points in November, but will be at serious risk in the Electoral College. The institution, rooted in the original slavery compromise, may be a barrier too great to overcome.

The priority for Obama supporters has to be mobilization of new, undecided, and independent voters in up-for-grabs states like Pennsylvania, Ohio, and Michigan, while expanding the Electoral College delegates in places like New Mexico, Colorado, Nevada, and possibly Virginia.

There are many outside the Obama movement who assert that the candidate is "not progressive enough," that Obama will be co-opted as a new face for American interventionism, that in any event real change cannot be achieved from the top down. These criticisms are correct. But in the end, they miss the larger point.

Most of us want President Obama to withdraw troops from Iraq more rapidly than the 16 months promised by his campaign. But it is important that Obama’s position is shared by Iraq’s prime minister and the vast majority of both our peoples. The Iraqi regime, pressured by its own people, has rejected the White House and McCain’s refusal to adopt a timetable.

The real problem with Obama’s position on Iraq is his adherence to the outmoded Baker-Hamilton proposal to leave thousands of American troops behind for training, advising and ill-defined "counterterrorism" operations. Obama should be pressured to reconsider this recipe for a low visibility counterinsurgency quagmire.

On Iran, Obama has usefully emphasized diplomacy as the only path to manage the bilateral crisis and assure the possibility of orderly withdrawal from Iraq. He should be pressed to resist any escalation.

On Afghanistan, Obama has proposed transferring 10,000 American combat troops from Iraq, which means out of the frying pan, into the fire. On Pakistan, and the possibility of a ground invasion by Afghan and US troops, this could be Obama’s Bay of Pigs, a debacle.

On Israel-Palestine, he will pursue diplomacy more aggressively, but little more. Altogether, the counterinsurgencies in Iraq, Afghanistan, and Pakistan are likely to become a spreading global quagmire and a human-rights nightmare, nullifying the funding prospects for health care reform or other domestic initiatives.

In Latin America, Obama has been out of step and out of touch with the winds of democratic change sweeping the continent. His commitment to fulfilling the United Nations anti-poverty goals, or to eradicating sweatshops through a global living wage, is underwhelming and — given his anti-terrorism wars —will be underfinanced.

And so on. The man will disappoint as well as inspire.

Once again, then, why support him by knocking on doors, sending money, monitoring polling places, and getting our hopes up? There are three reasons that stand out in my mind. First, American progressives, radicals, and populists need to be part of the vast Obama coalition, not perceived as negative do-nothings in the minds of the young people and African Americans at the center of the organized campaign.

It is not a "lesser evil" for anyone of my generation’s background to send an African American Democrat to the White House. Pressure from Obama supporters is more effective than pressure from critics who don’t care much if he wins and won’t lift a finger to help him. Second, his court appointments will keep us from a right-wing lock on social, economic, and civil liberties issues during our lifetime. Third, it should be no problem to vote for Obama and picket his White House when justified.

Obama himself says he has solid progressive roots but that he intends to campaign and govern from the center. It is a challenge to rise up, organize, and reshape the center, and build a climate of public opinion so intense that it becomes necessary to redeploy from military quagmires, take on the unregulated corporations and uncontrolled global warming, and devote resources to domestic priorities like health care, the green economy, and inner-city jobs for youth.

What is missing in the current equation is not a capable and enlightened centrist but a progressive social movement on a scale like those of the past.

The refrain is familiar. Without the militant abolitionists, including the Underground Railroad and John Brown, there would have been no pressure on President Lincoln to end slavery. Without the radicals of the 1930s, there would have been no pressure on President Franklin Roosevelt, and therefore no New Deal, no Wagner Act, no Social Security.

The creative tension between large social movements and enlightened Machiavellian leaders is the historical model that has produced the most important reforms in the course of American history.

Mainstream political leaders will not move to the left of their own base. There are no shortcuts to radical change without a powerful and effective constituency organized from the bottom up. The next chapter in Obama’s new American story remains to be written, perhaps by the most visionary of his own supporters.

Progressives need to unite for Obama, but also unite — organically at least, and not in a top-down way — on issues like peace, the environment, the economy, media reform, campaign finance, and equality like never before. The growing conflict today is between democracy and empire, and the battle fronts are many and often confusing. Even the Bush years have failed to unite American progressives as effectively as occurred during Vietnam. There is no reason to expect a President McCain to unify anything more than our manic depression.

But there is the improbable hope that the movement set ablaze by the Obama campaign will be enough to elect Obama and a more progressive Congress in November, creating an explosion of rising expectations for social movements — here and around the world — that President Obama will be compelled to meet in 2009.

That is a moment to live and fight for.

Tom Hayden is a longtime political activist and former California legislator. This article was commissioned by the Association of Alternative Newsweeklies, of which the Guardian is a member, and is being carried in newspapers across the country this week.

PG&E and a Rock Rapids, Iowa, liberal

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By Bruce B. Brugmann

I confess. I am an old-fashioned Rock Rapids, Iowa, liberal. For starters, that means I grew up in a little town in northwestern Iowa that has had public power since 1896 and so i know personally that public power is cheap, reliable, and accountable.

In San Francisco, where PG&E private power is expensive, unreliable, and unaccountable, I was startled to find that I am suddenly an “ultra liberal,” along with a host of other progressives and independents who support the Clean Energy Initiative and public power.

Yes, according to PG&E and the San Francisco Chronicle, we are all suspicious characters and ought to be kept under watch for the duration for advocating such “ultra-liberal” things as clean energy, renewables, public power, mandates for making San Francisco a world leader in renewables, and kicking PG&E out of the mayor’s office and the DCCC.

As Tim Redmond points out in his Editors notes (8/20/08), the term first appeared in Heather Knight’s Aug. 15th article on the changes in the Democratic County Central Committee (DCCC), for decades the unassailable bastion of the Burton/ Brown machine. Her lead, he noted, was “almost breathtaking ” in its drama. She wrote that the party “has veered dramatically to the left,” and that it would be telling voters to vote for a raft of “ultra-liberal politicians supervisorial candidates” and, among other things, to “embrace public power.” (The Clean Energy Initiative, as it is appropriately known, mandates aggressive goals for renewables but PG&E gallops swiftly by this point and loves to say without evidence that the initiative is a $4 billion takeover of PG&E, which is yet another Big PG&E Lie.)

Meanwhile, the new Chronicle columnist Willie Brown, who ran endless errands for PG&E as mayor and as a private attorney on the public payroll, and collected a nifty $200,000 in “consulting services” in 2007 from PG&E, wrote without gulping:

“It was quite a week for local politics, with the certified takeover of the San Francisco Democratic County Central Committee by outgoing Board of Supervisors President Aaron Peskin and Chris Daly…But what’s really going on here behind the headlines is a move by the ‘progressives’ to take over the central committee a la Tammany Hall or Richard Daley’s Chicago. The goal is to control the party money and endorsements–and that way be able to pick candidates for office as well.

“In other words the central committee will be Peskin’s shadow mayoralty, allowing Peskin to keep calling the shots even when he leaves office.”

Tammany Hall? Richard Daley’s Chicago? Why didn’t Wiillie just say what the facts are: that the Burton/Brown machine, and Mayor Newsom and PG&E et al, are no longer calling the shots on the DCCC and that a group of real progressives are cutting the umbilical cord to machine politics and calling the shots with real progressive issues and initiatives, such as the Clean Energy Act. Willie also couldn’t say of course that PG&E got much of its influence through his office as mayor and the Burton/Brown machine, which never put as much as a pebble in PG&E’s monopoly path. Thus, until now, the machine-dominated DCCC has been a safe haven for PG&E and even this time around the real progressives only won through a major organizing effort and tough battle.

Tim wrote that he thinks Newsom’s political operatives are mad that “the progressives have seized control of the term ‘progressives.’ which is in fact an accurate and historically valuable term. They’d like to call Newsom a progressive mayor, which is inaccurate and historically invalid. But since they can’t get away with that, they’ve pushed the Chronicle to use another term for people like Chris Daly and Aaron Peskin and the best the editors could come up with is ‘ultra liberal.'” The Chronicle, which appears to be once again revving up for PG&E, tosses a juicy T-bone to PG&E and its campaign theme that only the loony left would support such dread issues as clean energy and public power.

Maybe we have a new insight into the term progressive. A real progressive supports the Clean Energy Act and public power, while a phony Willie Brown/Gavin Newsom ‘progressive,’ in quotes, supports PG&E and opposes the Clean Energy Act. In short, there is a big difference between a real progressive and a PG&E ‘progressive.’

And me? I’m still just an old-fashioned Rock Rapids, Iowa, liberal.

More to come on this illuminating subject, B3

P.S. 1:Hearst ethics policy: If Hearst wants to present Willie Brown as a “legitimate” journalist and featured political columnist, making value judgments and ethical pronouncements on who is and is not a real progressive and whether the DCCC has been taken over by clean energy progressives playing Tammany Hall/Richard Daley machine politics, the Chronicle ought at minimum to require disclosure of his “consulting services” for PG&E and other private interests that would conflict his column? What specific “consulting services” did he provide for PG&E in 2007? What is he doing now for PG&E and for how much in the November election? Is he writing a political column for the Chronicle and working for PG&E at the same time? Is he advising PG&E on how to “steal” another election?
(I left a message for Willie at the Willie Brown Institute and I put out an email to Hearst corporate for comment on Willie’s PG&E/editorial role.)

It was Mayor Willie, as the public power campaign was winning in the 2001 public power election, who ordered that the ballots be moved from City Hall to the Civic Auditorium because of an anthrax scare. I remember standing with Angela Alioto about l0:30 p.m. on election night when then Elections Director Tammy Haygood, announced the anthrax move. “Angela,” I said, “we’ve lost the election.” She didn’t believe me and kept saying, “No, no, we couldn’t lose the election now.” Alas, I was right.

We raced over to the Auditorium where there was only minimal security. There was no evidence then or later of an anthrax scare. PG&E came from behind and won by a bare 500 votes. Several days later, several tops of the election boxes were found floating in the bay. There was no explanation from Willie nor his election director and no real investigation. The gallows humor was that the campaign should hire divers to go into the bay and find the missing ballots.

PG&E’s big payments: PG&E discloses the $200,000 payment to Willie Brown for “consulting services” in 2007 in its annual report to the California Public Utilities Commission. In a key section of this report (called page 257), PG&E is required to list every payment that it made to an outside company or consultant. This amounts to billions year.
PG&E has the entire annual report posted on its Investor Relations website, but, significantly, page 357 is missing.
PG&E’s statement explaining the omission says: “Details of this page are filed with the California Public Utilities Commission.” Reporter Amanda Witherell formally asked the CPUC press office for it and they said they’re “trying to track it down.” But she did get a copy.

Newsom heads South

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By Steven T. Jones
In the latest indication that Mayor Gavin Newsom intends to run as far away from San Francisco values as possible during his bid for governor, his campaign announced today the hiring of Garry South as its senior adviser.
I got to know South during my years as news editor for the Sacramento News & Review, when he was an adviser to then-Gov. Gray Davis, and I share the concerns of others that he represents the antithesis of Democratic Party values.
While the California Energy Crisis was barreling down on this state’s citizens and government, with enough time to head off the worst impacts, I listened to South indignantly defend the governor’s laissez faire approach until way after such passivity was indefensible. I argued with him as Davis became the most mindless law-and-order governor in California history (Davis famously argued for patterning our criminal justice system on that of repressive Singapore, a ludicrous South-inspired statement he never disavowed). And I sat in court while South and his Republican counterparts pleaded with a judge to overturn voter-approved campaign finance limits.
Garry South’s conservative triangulation approach to politics is arguably a big reason why Davis was recalled, leaving us with the Governator. Along with other soulless, scorched-earth political operatives in Camp Newsom — including Nathan Ballard, Peter Ragone, and Chris Lehane — South is sure to drag this campaign down into the lowest common denominator muck.
Hmm, maybe this isn’t such a bad thing after all. Newsom can run from us, lose, and then we won’t need to keep explaining why Newsom is from San Francisco, but not of San Francisco.

International Youth Music Festival

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PREVIEW How brilliant my high school music career was: I got to travel around the world to impress international audiences with my mad piano skills, take master classes with professional musicians, and play and network with European wünderkinder whose gifts were equivalent to mine.

Oh wait, my high school music career actually consisted of taking weekly piano lessons from a 65-year-old German woman in a church basement, figuring out ways to make her believe I had actually practiced that week. But I guess more focused and, er, gifted students actually do get to join the jet set and showcase their talent in front of classical music lovers on different continents.

Youth Music International was formed in 2003 to facilitate a US-UK exchange program for talented youngsters specializing in chamber music, hoping to provide the adolescent musicians with superior technical instruction and a unique opportunity for cultural exchange amongst peers.

The group returns to San Francisco this year for a four-day stint after holding last summer’s concerts in Oxford, England. Wednesday’s performance is the festival’s finale, with orchestral masterworks as the concert’s theme. So if you can put your jealousy aside, come check these kids out at Grace Cathedral, an intimate and historic setting, before they’re touring with Yo-Yo Ma and you can’t afford the tickets.

INTERNATIONAL YOUTH MUSIC FESTIVAL Wed/13, 7:30 p.m., $10–$16. Grace Cathedral, 1100 California, SF. (415) 749-6300, www.gracecathedral.org, www.youthmusicinternational.com

No mere ornament

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REVIEW In Mary and Russel Wright’s Guide to Easier Living, first published in 1950, the designers instruct the midcentury housewife to avoid the "deeply carved wooden chair" in favor of a "contour design" to "simplify cleaning." This form-follows-function approach to design reached its height in the mass market in 1950s and ’60s, most notably with the introduction of the stacking, molded fiberglass chairs of Charles and Ray Eames — which can still found, en masse, in libraries throughout the University of California system.

Initially fueled at the beginning of the 20th century by the creative force of the Bauhaus movement, the reaction against ornamentation was iterated not only in the home but also in painting and music. A traveling survey, "Birth of the Cool: California Art, Design, and Culture at Midcentury," now on view at the Oakland Museum, presents a cross-section of modernism as explored by West Coast — and specifically Los Angeles — artists and designers. The exhibition takes a social and domestic stance, interspersing living room–like sets with didactic timelines, framing Vernor Panton’s iconic "S" chair with the introduction of Barbie and Wile E. Coyote cartoons. While this presentation nicely emphasizes the consumer context of much of the midcentury design, the pristine examples of hard-edge paintings do not benefit as much from this framework.

Characterized by well-defined abstract and geometric forms, the paintings by Lorser Feitelson, Helen Lundeberg, Karl Benjamin, Frederick Hammersley, and John McLaughlin, among others, instead situate themselves through their own clear, clean lines. Much the same way the subtle variations in Mondrian’s surfaces define his work, the intricacies of these paintings reinforce the mentality of their era — a philosophical idealization of the California landscape and climate. They vibrate an optimism in direct opposition to the frustration found in abstract expressionism on the opposite coast.

BIRTH OF COOL: CALIFORNIA ART, DESIGN, AND CULTURE AT MIDCENTURY Through Aug. 17. Wed.–Sat., 10 a.m–5 p.m. (first Fri., 10 a.m.–9 p.m.); Sun., noon–5 p.m. Oakland Museum of California, 1000 Oak, Oakl. $8, $5 seniors and students (free second Sun.). (510) 238-2200, www.museumca.org

Diving for dollars

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Perhaps it’s because I have my basic scuba license, but the idea of diving for profit has always held a certain mystique for me. It’s one thing to look at fish on vacation, but quite another to do something so dangerous and physically demanding every day.

I’ve always wondered: what kind of person chooses such a job?

The earliest commercial divers were salvage workers, roving the alien ocean floor in search of sunken treasure. At that time, when little was known about the physical effects of the frigid, high-pressure environment of the deep ocean, only men of a certain build could do it successfully.

Divers in old-fashioned canvas suits and huge round brass helmets (remember Red Rackham’s Treasure?) laid the foundations for the towers of the Golden Gate Bridge in 90 feet of chilly, turbulent water. Now pretty much anyone can take a simple course, strap on a scuba tank, and get acquainted with a coral reef. Still, it takes a particular mixture of recklessness, humor, and grim determination to do it every working day, at depths where no recreational diver is certified to go, in temperatures that would have most us running for a blanket and a cup of sugary tea.

Dean Moore, operations manager at Underwater Resources, a San Francisco firm specializing in marine construction, has one of those old-fashioned suits hanging in his office. Although the suits were massive and heavy, the brass and copper helmets were so buoyant that divers had to wear lead-weighted boots to keep from shooting to the surface. Moore has a pair of the boots as well, thought they’ve long been replaced by equipment made of Kevlar and Neoprene. Moore admits that being immersed in this world has soured him on recreational diving. When not working, he says, "I wanna stay high and dry. I think you lose a bit of the love of the sport."

Moore and his lead diver, Chris Moyer, showed me around their office and gave me a rundown of the day-to-day operation. The two are frequently called on to do some pretty nasty and unsafe work: crawling into narrow pipes, diving straight into raw sewage, or containing a pollution bloom near an oil refinery. If some politicians get their way, divers like Moyer could be getting a lot more work in the next few years building and maintaining massive offshore drilling platforms, vessels, and pipelines.

I was intrigued by all the equipment, of course — the hazmat suits and tiny robot submarines — but what really interested me is what makes these guys tick.

When asked to describe the diver’s typical personality, Moyer laughs. "Take your average motorcycle gang biker, mix in a little bit of astronaut, and a little bit of, say, a chimpanzee or a lowland gorilla, and that compilation gives you a commercial diver," he said. "I’m partial of course, but I think we’re the sexy fighter pilots of the construction world."

For Moyer, it was an ad in a scuba magazine. Like many divers, he was in the military first. When his enlistment ended, he saw the ad. "There’s this guy climbing up this ladder out of the water, and he’s wearing this neat helmet I’ve never seen before — it’s got like a light and a laser gun on it, and it says ‘Come up a winner,’<0x2009>" he explained, sitting in a small conference room with a whiteboard covered in equations and drawings. "And I’m, like, hmm, yeah."

Inspired, Moyer enrolled in the College of Oceaneering in Wilmington, where he was trained to work in cold water, low visibility, and extreme depths. He specialized as an advanced dive medic, qualifying him to recognize and treat that most notorious of divers’ ailments: the bends. Surfacing too quickly results in a sudden change of pressure, causing dissolved nitrogen in the blood to form bubbles that can lead to stroke. Moyer explains that each dive to a certain depth requires about an hour of decompression in the water, done in a series of "stops," where a diver hangs out a certain depth, allowing the nitrogen to dissolve slowly and naturally. "That buys you a few minutes when your head breaks the surface of the water before you start turning into a shaken up pop bottle," he said. Divers immediately hop in a pressurized chamber to breathe pure oxygen for a couple of hours. The sealed, all-oxygen environment carries its own hazards, and horror stories of fires and explosions abound.

After dive school, Moyer headed to the Gulf of Mexico, where 80 percent of the world’s commercial divers work, maintaining the massive oil platforms that float miles out to sea. He dove for a company whose main business was laying and repairing pipelines between platforms. Unlike Bay Area divers, workers in the Gulf aren’t unionized, so private firms regulate the industry and pay divers whatever they feel like — which, according to Moore, is sometimes a third of what a union diver can make in the Bay Area. Moore explains that though Underwater Resources can’t outbid nonunion firms for big contracts, most ambitious divers will eventually switch to unionized companies because that’s where all the interesting public-works jobs are. "Certainly in the Bay Area and up and down the West Coast, it’s expected that any decent diving company will be in the union," he said.

Maybe it was the promise of better pay that led Moyer to leave the Gulf for the Bay Area after a year. He recalls calling around looking for employment. "I’m, like, hey, I’m here and I’m ready to dive, and they’re, like, oh, that’s nice, so are all the other guys who call me every day," he remembered.

Moyer was surprised to learn that he was expected to join Pile Drivers Local 34, a division of the Northern California Carpenters Union, and start a pile-driving apprenticeship right away. With dive school and a year’s work under his belt, he didn’t like the idea of driving pile for a living. At the same time, he discovered that diving work wasn’t as consistent in the Bay Area as it had been in Louisiana, and realized it would help to have something to fall back on. As long as a member is working, Local 34 will sponsor apprenticeships, provide excellent medical benefits and, after 20 years, a handsome pension. Part of Underwater Resources’ agreement with the union is that the divers get paid for at least an eight-hour day, no matter how much time they actually spend in the water — good news in a profession where weather, complications, and injuries can cut a dive short.

Because divers are freelancers who often work offshore on drilling vessels for months at a time, the trade tends to attract outsiders, people who have difficulty conforming, and people without families. This, in addition to the close quarters that commercial divers on an offshore job have to live in —sometimes spending weeks in a small, pressurized chamber called a "dry bell" that enables them to dive to depths of 400 feet without time-consuming decompression — may partly explain why few women are in this trade. When they do work in marine construction, it’s often topside, supervising or operating the small, remotely operated ROV robots that go where it’s too deep or dangerous to send divers. Moore laments the lack of women in the industry. "We’ve never employed any. I don’t know why. It’s unfortunate — I’d be into it."

As for me? I think I’ll stick to coral reefs for now.

And now, the controller’s big lie

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EDITORIAL Pacific Gas and Electric Co. will get a huge political windfall if the San Francisco Controller’s Office moves forward with a wildly inaccurate estimate of the cost of the Clean Energy Act.

In an Aug. 7 letter sent to the Department of Elections, Controller Ben Rosenfeld wrote that the costs to the city of acquiring PG&E’s local distribution facilities are "likely to be in the billions of dollars." That’s a scary figure, the sort of information PG&E will use to attack the measure. In fact, the company is already sending around flyers calling this a multibillion-dollar proposal.

But it’s completely untrue.

For starters, the Clean Energy Act never mandates that the city buy PG&E’s facilities. The charter amendment, which is on the November ballot, sets aggressive goals for renewable energy and directs city officials to study the best way to achieve those goals. Since public power agencies around the country are leading the way on renewables — and since PG&E has already said it can’t meet even the state’s weak clean energy mandates — the city ought to be looking at taking over the business of selling retail power to residents and businesses. But buying out PG&E’s old system might not be the best way to pursue public power.

But that’s just one flaw in the controller’s reasoning. Because even if San Francisco did buy out PG&E, there would be little or no cost to the city at all.

To understand that, you have to look at the realities of how the measure would work. The Clean Energy Act would authorize the city to issue revenue bonds to buy electric power facilities. Revenue bonds aren’t backed by the taxpayers; they are paid off entirely through a dedicated income stream. So unless the city can prove in advance with a detailed study that buying out PG&E would bring in enough money to cover the costs, there’s no way Wall Street would ever buy the bonds.

In other words, there is no possible scenario under which the Clean Energy Act could cost the city money. The opposite is almost certainly true: public power cities all over the United States make money — often large amounts of money. And our figures have always shown that San Francisco would net millions, maybe hundreds of millions, in revenue from buying out PG&E.

We called Peg Stevenson in the Controller’s Office to ask her about this, and she agreed with us: revenue bonds don’t cost the city any money. Buying out PG&E with revenue bonds wouldn’t cost the city any money. So why does the analysis say the measure could cost billions? "That’s not how I expect people to read it," she said.

But that’s exactly how people will read it. And it’s grossly misleading.

PG&E is already on the attack, and costs will be a huge part of its campaign. In fact, in a July 24 letter to the controller, David Rubin, PG&E’s director of service analysis, argues that the company’s San Francisco system is worth $4.18 billion.

The letter states that PG&E "has not done an inventory of its system" — in other words, the figures Rubin cites are just estimates. And the method PG&E uses to calculate the fair market value of the property is economically and legally dubious, at best.

PG&E insists that the only way to establish a price for the city to pay for a takeover is a method known as "replacement cost new less depreciation." The idea: the city would have to pay the price that it would cost today to replace all of PG&E’s equipment, much of which is old and was purchased (and paid for by the ratepayers) long ago.

The state Board of Equalization, which sets the value of PG&E’s property every year for tax purposes, doesn’t use that method. The board bases its valuation on what’s known as the rate base — the amount of invested capital state regulators allow PG&E to earn a return on. By that standard, the system is worth less than a quarter of what PG&E is claiming (and when tax time rolls around, you can bet the utility isn’t insisting that its property ought to be assessed at a higher value).

Stevenson said the Controller’s Office might replace the term "in the billions of dollars" with a more specific figure. If that’s the case, taking PG&E’s word, and accepting the wildly inflated $4.18 billion figure, would be a clear violation of the public trust.

The Controller’s Office needs to change its statement to reflect, at the very least, the fact that no city money is at risk and that there’s a reasonable assumption that the end result of a public takeover of PG&E would be increased revenue. It should say: "The costs of purchasing or building energy facilities would be substantial — but those costs would be covered entirely by the revenue from operating the facilities. The net cost to the city would, at worst, be minimal and the potential exists for the city to bring in significant new revenue to offset taxes and general fund expenses."

That, at least, is a true and accurate statement.

PS: The supervisors should hold hearings on the economics of this measure and demonstrate how lucrative public power is for cities — and how cheap for ratepayers. Public power is cheaper. Two charts below (PDF) show how public power is consistently less expensive than PG&E’s private power. The first one looks at utilities in California; note that SMUD, the Sacramento Municipal Utility District, has significantly lower rates than PG&E. The second one, from the American Public Power Association, shows overall rates for public and private utilities state by state.

The relevant line shows public, private and co-op rates, average per kilowatt-hour. Note that public power in California is about one-third cheaper overall.

California ……………….10.9…….15.3……..11.5

www.scppa.org/Downloads/Rates/chart1.pdf

http://appanet.org/wp-content/uploads/sites/2/PDFs/utilityratecompstate2006.pdf

PPS: We’ve seen these shenanigans from the Controller’s Office for years; see our 1982 story (PDF) on how PG&E forced a misleading statement onto the ballot.

Don’t let PG&E screw you!

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An open letter to the small business community

I was astounded to see that once again some small business organizations, and leaders, are about to put an argument on the November ballot that retails without blushing the PG&E lies and propaganda line against the Clean Energy Act and does not represent the views of many of us in the small business community.

As you can see from my recent blog, the current Guardian editorial, and our stories and editorials since l969, PG&E screws our small businesses and residents in many ways: high rates ( much higher than public power cities), frequent blackouts, lousy service, unaccountability, and a propensity to cut off power or force small businesses to buy an expensive bond if they are late on payments. And there’s no way to effectively complain about PG&E’s terrible service, rates, and glacial moves toward renewable energy.

Most embarrassing of all, the ballot argument retails the big PG&E Lie: the erroneous whopper that the cost to the city of acquiring PG&E’s local distribution system would be $4 billion. For starters, the Clean Energy Act never mandates that the city buy PG&E’s aging facilities. The charter amendment sets aggressive goals for renewable energy and directs city officials to study the best way to achieve those goals.

Since public power agencies around the country are leading the way on renewables, and since PG&E has already said it can’t meet even the state’s weak clean energy mandates, the city ought to be looking at taking over the business of selling retail power to businesses and residents. But buying out PG&E’s old system might not be the best way.

More: even if San Francisco did buy out PG&E, there would be little or no cost to the city at all. The act would authorize the city to issue revenue bonds to buy electric power facilities. Unlike typical general obligation bonds, the revenue bonds would not be backed by taxpayers, and would be repaid by the money the city would make by selling retail electricity. Revenue bonds are paid off entirely through a dedicated revenue stream. So unless the city can prove in advance with a detailed study that buying out PG&E would bring in enough money to cover costs, there’s no way Wall Street would ever buy the bonds.

In short, there is no possible scenario under which the Act could cost money. The opposite is true: Public power cities all over the United States make money, including the public power system in my hometown of
Rock Rapids, Iowa, which has had a successful public power system since 1896. Many public power systems
make large amounts of money while keeping rates well below private power rates. And our figures show that San Francisco would net millions, maybe hundreds of millions of dollars, in revenue from buying out PG&E.
Moreover, PG&E each year yanks upwards of $650 million out of the city with its high rates, according to our study.

So why are some small business leaders once again buying PG&E’s Big Lies and once again trying to get small business groups and businesses to sign a ballot argument that undermines their own economic self interest? Would any of them run their own businesses this way? Small business people should steer clear of this embarrassing, self-immolating argument and either support the Clean Energy Initiative or stay neutral.

Most important, the business of PG&E Lies is academic. Because of the federal Raker Act giving San Francisco an unprecedented concession to dam a beautiful valley (Hetch Hetchy) in a beautiful national park (Yosemite), San Francisco is the only city in the U.S. mandated by federal law and a U.S. Supreme Court decision to have a public power system. And the longer the city is in violation of the Raker Act (because it does not have a public power system), the more vulnerable the city is to the tear-down-the-dam movement quietly orchestrated by PG&E and its allies. And that would be a costly catastrophe.

Meanwhile, the supervisors should hold hearings on the economics of this measure and demonstrate how lucrative public power is for cities–and how cheap for businesses and residents. They should also invite small business people to testify about their problems with PG&E. We’re posting charts at SFBG.com that show that in California and throughout the U.S., public power is less expensive than private power across the board. B3

P.S. We are doing a major story on how PG&E screws local small business on many levels. If you have specifics and examples with your business, or know of any, please let us know at the Guardian. On guard, B3, who watched today from my office window as the fumes curled up from the Potrero Hill power plant, courtesy of PG&E

*PAID BALLOT ARGUMENT LANGUAGE

Proposition ___ Will Hurt San Francisco Small Business Owners

The Board of Supervisor’s plan to takeover PG&E would force San Franciscans to pay an estimated $4 billion for the power system through a dramatic increase in monthly utility bills. If Proposition___ passes the City would lose the more than $20 million a year that PG&E pays in taxes and fees. That means our taxes would need to go up to pay for this lost revenue or basic services, like libraries, street cleaning, police and fire services. It will cost more to do business in San Francisco as small business owners and their families will face an additional $400 to $600 a year expense in utility bills.

Join San Francisco ‘s Small Business Community in Voting No on Proposition___

Lawsuit challenges high-speed rail project

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428-rail.web.jpg
Four environmental groups and two cities today filed a lawsuit in Sacramento Superior Court challenging the California High Speed Rail Authority’s recent decision to lay track over Pacheco Pass, rather than going with the Altamont Pass option preferred by the plaintiffs.

The lawsuit isn’t likely to directly affect this November’s Proposition 1, the $10 billion bond measure that would allow work to begin on the San Francisco-Anaheim high-speed rail project. Yet the language in the bond measure could be updated to include new fiscal oversight and other provisions if Gov. Arnold Schwarzenegger signs Assembly Bill 3034, which this week broke through a logjam in the Assembly and appears likely to win Senate approval next week.

The lawsuit was filed by the Planning and Conservation League, Transportation Solutions Defense and Education Fund, California Rail Foundation, Bay Rail Alliance, and the cities of Atherton and Menlo Park.
A press release from CRF says, “The environmental and transit groups advocate a well-planned, cost- effective, and environmentally sensitive high-speed rail system in California. They want high-speed trains along the Altamont route, to help commuters from the Central Valley and Sacramento, who currently clog up Interstates 80 and 580. This route would divert millions of regional trips annually to electrified rail, yielding extremely significant air quality, greenhouse gas reduction, and energy savings benefits.”

CHSRA staffers and board members argued that Pacheco was a cheaper, faster route that eliminated the need for a costly and logically difficult bay crossing to reach San Francisco. South Bay political leaders also threatened to oppose the project if Altamont was chosen. Yet CHRSA is also working on a regional rail connection over Altamont that would eventually tie into the high-speed rail system, which is at least a decade away from being operational.

The flak over Newsom’s hack

1

The word that Gavin Newsom is taking to campaign consultant Garry South is suddenly big talk on the blogs.

It started that way a growing number of political stories are starting these days, with an enterprising blogger catching someone in what was supposed to be a private meeting. In this case, Zuma Dogg of Los Angeles spied Gavin Newsom at a Starbucks (with his SUV parked in a fire lane) chatting with the prominent (and notorious) South.

Now Newsom is getting denounced on Calitics and is facing an (admittedly insider) threat that some progressives may abandon him as he moves to the political center.

A couple of thoughts on this.

1. Garry South isn’t running Newsom’s campaign. That’s still the job of Eric Jaye. In fact, Jaye tells me that South hasn’t been hired yet: “We’re taling to him,” Jaye said. “We’re putting together a team. But nobody’s been hired yet.” Not saying that Jaye is going to advise against a move to the center or anything, but if South does come on, it will be as a senior advisor.

2. I get the problems with Garry South, and I’m not defending him here, but anyone who thinks Newsom will run for governor as a San Francisco progressive hasn’t been paying attention to the mayor’s history and career. He ran for mayor the first time as a pro-business moderate, and that’s how he’ll run for governor. He won’t deny promoting same-sex marriage (which, frankly, won’t be a big issue in the Democratic primary anyway and can only help him) and will try to be an environmentalist (isn’t everyone these days?), but he won’t be talking about raising taxes on the rich. Isn’t going to happen.

3. What this really means is that Newsom’s “exploratory” campaign is getting a little less exploratory and a little more serious. No doubt Jaye has been doing polls to see if Newsom’s record would fly in a statewide race, and no doubt he’s found that his man can be sold to the voters will the proper packaging. And now Team Newsom is getting into gear. Even Jaye admitted that “the exploratory campaign is stepping up its efforts.”

So look for Newsom to pay even less attention to City Hall and even more to vote-rich Southern California in the next few months.

Sweet on the Bellrays

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bellrays.jpg

THE BELLRAYS
Hard Sweet and Sticky
(Anodyne)

By Todd Lavoie

Who exactly, pray tell, are these foolish Southern California boys who keep playing careless games with Lisa Kekaula’s heart? As the don’t-mess-with-me diva at the forefront of the BellRays’ unbridled soul/punk whirlwind, Kekaula has been bearing witness to the trials and tempests of love for nearly two decades, and Hard Sweet and Sticky finds the R&B shredder fighting yet another round of bedroom drama.

Here, on their eighth album, the Riverside band’s familiar Tina Turner/MC5 union is as fuzzy and furious as ever, but it is their willingness to veer beyond the usual garage bluster that makes the disc such a tremendous leap forward. Articulating matters of the heart with broader range than ever before, the BellRays have released the defining album of their career thus far.

For those who have always sought righteous liberation from the group’s combustible marriage of Kekaula’s soul-belting vocals with skuzzy ’69-Detroit chug-o-ramas, fret not: “Psychotic Hate Man” throttles as much as the title suggests, and the roughneck-bass and chanted hey’s of “Pinball City” make for certain manic nirvana.

“Wedding Bells,” however, is atmospheric noir-blues winnowed by Kekaula’s moist-eyed sighs and whispers, and the post-break-up move-on of “Blue Against the Sky” is ravishing straight-up soul, without a feedback swell in sight. The smoothness prize, though, goes to “The Fire Next Time,” a satin-and-silk slice of deception stroked by erotic ripples of come-hither jazz guitar but tempered by Kekaula’s knowing, regretful murmur: “How can I love you if you’re the hurting kind?”

The Gysin file

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› johnny@sfbg.com

I associate the dreamachine with Christmas. The first and only time I’ve directly encountered a version of the device was a holiday five or six years ago. My friend Julien used a turntable to set up a homemade dreamachine in a corner room of his family’s cabin. I took a turn sitting with my eyes closed in front of its stroboscopic play of light and darkness. I didn’t have an epileptic fit; nor did I go into a hypnagogic state. It wasn’t a drugless high, but it was a mind’s eye stimulus. I’d try the dreamachine again.

"I don’t think [the dreamachine] really works unless you’ve smoked a pipe of hash," Kenneth Anger declares during FlicKeR, Nik Sheehan’s documentary about the device and its chief creator, the writer, painter, and mystic Brion Gysin. "I think it’s too dangerous if you’ve taken acid," he adds. You get the feeling Anger is speaking from experience, even if he doesn’t face a dreamachine in front of Sheehan’s camera. Such a meeting isn’t necessary, because FlicKeR‘s first 15 minutes serves up a Who’s Who of dreamachine enthusiasts in action: Marianne Faithfull, Sonic Youth’s Lee Ranaldo, and Genesis P. Orridge of Psychic TV are among those Sheehan captures sitting and staring — with eyes closed — before the contraption’s oscilutf8g light.

The dreamachine makes for potent visual imagery, but distilling or truly conveying its effect is a tougher task for a filmmaker, even if Sheehan’s camera briefly stares directly into one (and later, incorporates Tony Conrad’s 1965 film The Flicker, a potent projector-based dreamachine corollary). For Sheehan, the mechanism provides a kinetic introduction to or threshold into, a portrait of the late Gysin. Though Gysin — who invented the Cut-Up literary methods popularized by best friend William S. Burroughs — is a shadowy figure to hang a feature-length film portrait on, FlicKeR‘s hopping, skipping, and jumping approach to his life at least energizes his enigma.

In Victor Bockris’ 1981 interview collection With William S. Burroughs: A Report From the Bunker (Seaver), Burroughs — who also says, typically, "[Gysin] taught me everything I know about painting" — relates Gysin’s description of a milk bar just after a terrorist blast: "People were lying around with their legs cut off, spattered with maraschino cherries, passion fruit, ice cream, brains, pieces of mirror and blood." Without a living subject, Sheehan must turn to various vivid Gysin acquaintances — mirror man Ira Cohen and a spry John Giorno, for example — to bring across similar illustrations of anarchic spirit. In the process, offhand observations come to mind: Genesis P. Orridge has transformed herself into a sisterly peer of rad auntie Faithfull (who praises Gysin’s warmth in her autobiography, where she’s largely disdainful of all men), for one. It’s easy to lose sight of Gysin amid such colorful characters, but FlicKeR is steadfast in its belief that Gysin is influential; a variety of academics use Gysin as a gateway to discussions of everything from the changing nature of terrorism to iPods.

He may not be the center of 20th-century history, but Gysin’s influence on the present is undeniable. This is partly due to another wave of ’60s resurgence. FlicKeR kicks off "Stoned Apocalypse," a Joel Shepard–curated Yerba Buena Center for the Arts series that includes a program devoted to the legendary light shows that overtook late-’60s music concerts. While most people associate such light shows with rock music, the new collection, The San Francisco Tape Music Center: 1960s Counterculture and the Avant-Garde (University of California Press, 322 pages, $27.50), explores its links to avant-garde cinema and music in the Bay Area.

The dreamachine-like notion and practice of live cinema is building momentum in recent years, thanks to practitioners such as Bruce Fletcher, a new surge of interest in Conrad, and a 2007 San Francisco Cinematheque series that inspired an anthology of writing on the subject. Last year at the San Francisco Museum of Modern Art, Anthony McCall’s installation You and I, Horizontal filtered Conrad’s and Gysin’s ideas about pure light into a communal rather than individual experience so potent it was akin to near-death or first-moments-of-life. That which flickers still illuminates, and it may soon turn into a piercing beam of light.

FLICKER

Thurs/7, 7:30 p.m., $8

Yerba Buena Center for the Arts Screening Room

701 Mission, SF

(415) 978-2700

www.ybca.org

PG&E’s first big lies

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EDITORIAL The San Francisco Chronicle reported Aug. 2 that Pacific Gas and Electric Co. is almost certain to miss the state’s deadline for increased renewable energy generation. It’s a pretty modest goal: 20 percent of the company’s electricity is supposed to come from renewable sources by 2010. But PG&E is nowhere near on track.

But the company is well on its way to spending a record amount of money to block San Francisco voters from passing the Clean Energy Act, which would allow the city to develop renewable energy on a schedule that would meet much more aggressive goals. A political front group funded by the utility has already mailed out or paid operatives to place on doorknobs tens of thousands of flyers packed full of lies about the proposal. It’s the earliest we’ve ever seen a full-scale ballot campaign get underway — the election isn’t until Nov. 4. By then the barrage of PG&E misinformation will reach a fever pitch.

So it’s not too early to start evaluating the campaign rhetoric and exposing the most ridiculous of the lies.

PG&E is starting out with four basic themes that will probably form the center of the fall campaign. The main attack will be economic — the measure, PG&E will say, is too costly for these tough economic times.

The information the company’s flacks are putting out is so blatantly inaccurate that it’s hard to take any of it seriously. Here’s what the utility is saying:

<\!s> The Clean Energy Act will cost $4 billion and raise electric rates by $400 per household. That’s based on two complete fallacies, and even by PG&E’s standards, this has to go down as one of the worst lies in local political history. For starters, PG&E is assuming that the city will decide to buy out its old local distribution system (that’s not mandated in the Clean Energy Act; there may be smarter ways to get into the renewable energy and public power business). But even if the city did buy the system, there’s no way it would cost close to $4 billion. The state Board of Equalization appraises utility property every year, and PG&E’s own appraisers participate in the discussions. Last year the BOE concluded that all of PG&E’s local property — including a big downtown office building — was worth about $1.2 billion. PG&E, to our knowledge, has never attempted to have that figure (and thus its own tax bill) increased to $4 billion. Without the office building, which the city would have no need to buy, the actual distribution system is probably worth closer to $800 million — putting PG&E’s number off by a factor of five.

The $400 per household figure is based on the cost of paying off $4 billion in bonds — but all the Clean Energy Act does is give the supervisors the ability to issue revenue bonds. Unlike typical general obligation bonds, the revenue bonds would not be backed by taxpayers, and would be repaid by the money the city would make selling retail electricity. And the only way the supervisors would move to take such a dramatic step as an eminent domain action to seize PG&E’s distribution system is if the figures show that the city can pay off the bonds without raising electric rates.

<\!s>The act would give the supervisors a blank check to issue bonds without voter approval. Actually, it would just give the board the same authority the Port Commission and the Airport Commission already have — the ability to issue revenue bonds — just revenue bonds — to fund renewable energy and utility projects. If the projects make no sense economically, investors won’t buy the bonds anyway. So only well thought-out projects with a clear revenue stream are even possible. Lots of public agencies have this authority, and it’s rarely misused.

<\!s>Electric rates would go up. Nonsense — every public power city in Northern California has lower electric rates than San Francisco. PG&E has some of the highest rates in the nation. Public power is always cheaper.

<\!s>The city will lose $20 million in tax revenue. Yes, if the city were to take over PG&E’s distribution system, the city would no longer collect the tiny pittance it currently gets as a franchise fee. The fee is the lowest in the state and among the lowest in the nation (and is set in perpetuity). The revenue from a public power system would more than make up for that loss.

PG&E is terrified by this proposal, so nervous that it started a massive campaign months before the election. There will be more lies coming, most of them attempts to scare the voters into thinking that the Clean Energy Act is expensive and risky. We’ll debunk them as they come along. In the meantime, the supervisors ought to hold hearings on these issues, particularly the cost issue, and ask the Board of Equalization’s experts to come and testify — so that PG&E’s lies can be exposed to the broadest possible audience.

Editor’s Notes

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› tredmond@sfbg.com

They’re tearing up Bernal Heights. I came back from vacation and all the streets around my house were blocked off with "no parking" signs and the heavy equipment was ripping the pavement open. We’re getting new sewer pipes, which is a fine thing. Your neighborhood will be in the queue pretty soon; it’s a citywide project, and in the end it will cost $4 billion.

A lot of that money will go for digging trenches in the streets. Trenching and backfilling is pricey, tens of thousands of dollars a block. And it’s making me crazy that we’re spending all that money on excavation contractors and we’re not taking advantage of the opportunity.

Every ditch I see, every detour sign, every annoyed resident who can’t find a place to park, makes me want to scream. We’re doing all this work for the sewer lines, which are a crucial part of the civic infrastructure. Why aren’t we using the same money, the same equipment, the same holes in the streets to lay electrical and fiber optic cable?

Fiber’s cheap — compared to the cost of bringing all the gear out, hiring the people to operate it, putting the dirt back in the holes, and pouring new blacktop. The thin wires that could carry the world’s information system directly and cheaply to every house in the city is on the order of what Sup. Ross Mirkarimi likes to call "decimal dust." Electrical conduit, which will one day be the backbone of a city-owned power system, costs a little more, but not that much.

Face it: we’re going to do all this at some point anyway. I’m an optimist (about San Francisco, anyway), and before long Gavin Newsom will be gone, and we’ll have a mayor who believes in the public sector, and public power and public broadband will be the order of the day. And running those utilities underground makes perfect sense in a city where earthquakes make elevated electrical wires a visible hazard.

But since nobody at City Hall is putting up a modest amount of cash to do this now, in a few years we’re going to have to spend a whole lot of cash to dig up all the streets all over again.

Am I the only person who thinks this is insane?

I was way off on the St. Lawrence River, in a place that had no Internet access and only spotty cell phone reception, so I missed the news that Sen. Dianne Feinstein was sorta, maybe, kinda thinking about running for governor of California. It was a chilling little welcome-home message for me. Anyone who lived through the days when Feinstein was mayor of San Francisco ought to share my revulsion at the idea of her running the entire state. She’s a Democrat only in name; on economic issues, she’d be as bad as Gov. Schwarzenegger. She’s also an autocrat — and with term limits, there’s nobody in the Legislature who could stand up to her.

The deals are already in the air; Willie Brown just floated out a key one in the Chron. Maybe Gavin Newsom would drop out of the governor’s race, and Feinstein would give him her US Senate seat if she wins.

What a rotten concept. If Feinstein runs, she needs real competition. Feinstein vs. Jerry Brown would be fascinating, and Newsom ought to stay in too. I’m not terribly impressed with the way he’s run the city either, but in the end, I think she was a lot better at being bad than he is.

It’s good to be home.

Charitable cash cow

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› gwschulz@sfbg.com

Nonprofit charities in the Golden State should have been raking in the cash in 2004. Gracious Californians gave $60 million more toward fundraising campaigns that year than they did in 2003, totaling almost $293 million. The following year, donors gave even more: $332 million.

Yet despite the increasing generosity of Californians, the percentage that nonprofits actually took away from those campaigns steadily decreased from 2003 to 2005.

Most of the gains went to private, for-profit fundraising companies hired to conduct telemarketing services and coordinate special benefit events like gala dinners, rodeos, and variety shows.

Such companies charge steep fees and commissions that frequently leave charities, especially smaller or less experienced ones, with little or even nothing at all, according to state disclosure records.

Commercial fundraisers collect millions each year relying on the public image of selflessness projected by nonprofits devoted to promoting cultural literacy, saving lost or exploited children, finding cures for deadly diseases, or improving the welfare of defenseless animals.

Some desperate nonprofits elect to allow commercial fundraisers to take a percentage of the money they raise, at times as much as 80 to 90 percent. Alternately, larger charities may agree to set costs and fees associated with the campaign, but that strategy can also prove costly.

For example, the San Francisco Museum of Modern Art hired the Los Angeles company SD&A Teleservices in 2004 for a phone solicitation campaign that raised $12,000. But because the company’s fees were greater than the contributions received, the museum had to pay $19,854 more to cover the venture. Similarly, the San Francisco Ballet lost $3,400 in 2005 to the same company after SD&A raised $12,745 from donors, thousands less than what it charged.

Several people we interviewed said the benefits of a fundraising campaign might not materialize until later if contributors eventually become long-term supporters. But unless the typical donor has time to find out how much ultimately makes it to the cause they care so much about, they’re unlikely to be aware of the extraordinary costs involved in nonprofit fundraising.

"The charity agrees to it because they want the easy money that they don’t have to do any work for," Daniel Borochoff, president of the American Institute of Philanthropy in Chicago, told the Guardian. "Then the person goes out and spends $1 million to get that $200,000, and the charity tries to rationalize it by saying ‘Well, it’s money we wouldn’t normally have. We don’t have staffing for fundraising.’ But they’re ripping off the public and disrespecting the intentions of the people who gave that money."

The Los Angeles Times published a months-long investigation July 6 that examined required forms submitted to the California Attorney General’s Office showing the total revenue generated from 5,800 nonprofit fundraising campaigns and how much of that money went to the charities.

Between 1997 and 2006, the paper discovered, 430 campaigns raised a total of $44 million — but in each case, every dime went to the fundraising company. Charities lost money in 337 more cases. In hundreds of instances, charities entered into contracts that assured them only 20 percent or less of the funds raised, regardless of how successful the campaign turned out to be. The AIP recommends spending no more than 35 cents on each dollar raised. The Times also pointed out that donors enjoy tax deductions from their contributions, even if huge portions go to for-profit companies.

"Nonprofits spend a lot of money attracting donors and then they fall away the next year, so they have to reach out and attract even more donors," Elizabeth Boris, director of the Center on Nonprofits and Philanthropy in Washington, DC, told us. "So there’s a lot of churning that goes on, because a lot of the same people don’t give to the same organization year after year. It is an expensive process of getting the names and contacting people."

Because California is behind in processing the required disclosure forms, the Times had to specially request records from 2006, meaning more recent figures aren’t available. The Guardian took a far less extensive look at the records, but we still found plenty of examples of charities earning astonishingly low rates of return.

In 2004, Campbell-based TBS Productions raised $418,377 for the San Francisco Police Officers Association and its annual "Parade of Stars" event held at the Palace of Fine Arts. But just $87,094 made it into the union’s nonprofit Community Services Fund, which redistributes it in small increments to a variety of causes.

"I’ve wrestled with this since I’ve come on," said POA President Gary Delagnes. "There are two ways of looking at it. Do we really want to lend our name to an outfit that’s taking 80 percent off the top? … The decision we made was: you know what, we’re to do so much good with the charitable money that it’s worth it to us."

That same year the Oakland Police Officers Association also hired TBS for its "Cavalcade of Stars" event. The company raised $402,515 on behalf of the East Bay union for charitable purposes, but only $88,603 remained after covering the event’s costs, a return to the union of 22 cents on the dollar.

That year, TBS coordinated events for at least 16 groups across the state representing law enforcement and emergency personnel, from the San Jose Firefighters Burn Foundation to the Fresno Deputy Sheriffs Association. But almost no one received a better return rate than 20 percent, and two raised just 15 cents on the dollar after accounting for the for-profit company’s take. No one at TBS was available for comment when we called.

More than 250 fundraising campaigns in California netted 20 cents or less from each dollar raised for charities in 2004, according to figures maintained by the state.

Rich Steinberg, a longtime scholar of nonprofits at Indiana University, said several factors mitigate all this. He explained that the United States Supreme Court has been reluctant to permit heavy regulations on charity fundraising because a seemingly poor cost ratio isn’t necessarily bad for a nonprofit.

"Big charities could do everything wrong but still have a good cost ratio" because their support is widespread, Steinberg said. The San Francisco Ballet and SFMOMA, for example, have done much better in some telemarketing campaigns, earning from 54 percent to 81 percent in return rates despite other times losing money.

Could it be that there are too many small, inefficient nonprofits with similar missions, each created in the belief that government wasn’t filling some need? Perhaps. But attempting to curtail them could undermine the democratic spirit that leads to their creation.

"We should make it legitimate for any group of idiots to get together and try to do something good," Steinberg said.

If they want to succeed, he said, charities should not accept terms that give fundraisers a percentage of the donations. Instead they should establish fixed fees so that every dollar beyond that amount goes toward services. Second, to ensure more favorable rates, they can require competitive bidding among fundraisers.

Ken Larson, director of public policy for the California Association of Nonprofits, said that few of the tens of thousands of charitable organizations registered in California use commercial fundraisers to attract donors, a fact confirmed in reports compiled by the attorney general. Many hire full-time professional fundraisers to seek foundation and government grants or relationships with repeat donors, intangible benefits that can go beyond immediate fundraising goals.

As for telemarketing, Mike Smith, chief operating officer of New Jersey-based Charity Navigator, suggests that when donors receive a call, they can just hang up and cut a check directly to the nonprofit.

The debate over nonprofit fundraising costs is nothing new, but with information increasingly available on the Web, consumers are in a much stronger position to give wisely.

The San Francisco AIDS Foundation publicly and angrily parted ways with its commercial fundraiser, Pallatto Teamworks, in 2001 due in part to a dispute over how much the company charged to operate the California AIDS Ride. The charity has since created its own fundraising arm, steadily improving its rate of return from an average of 54 percent over the past seven years to 66.5 percent last year.

The foundation uses another company, MZA Events, to manage its annual AIDS Walkathon, which has averaged a healthy 63 percent return since 1999 with improved results over each of the last three years.

But officials with the SF AIDS Foundation believe telemarketing has enabled it to achieve greater public awareness. It also began moving the task in-house during the past six months and anticipates greater savings.

"Every dime we save in production is a dime that can go to our clients and our programs and our services," said Dave Ellison, spokesperson for the foundation. "We’re always extremely aware of how important it is to keep the costs down because we see the benefits every day in the lives of our clients."

Cash from cabbies

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› news@sfbg.com

The largest taxicab company in San Francisco is trying to squeeze more money from its drivers, who say they’re already being hit hard by increased gate fees and rising fuel costs.

Yellow Cab has ordered its drivers to prepay for the privilege of driving each month, amounting to thousands of dollars for full-time drivers. Compounding that financial hardship is the apparent intention of the company to use prepaid gate fees to change the employment status of its drivers from employees to independent contractors who are no longer entitled to unemployment insurance and workers’ compensation coverage.

While local officials say Yellow Cab’s new policy is illegal, they have little power to compel the company to abandon the plan, which was supposed to go into effect Aug. 15 but has now been moved to December under pressure from city officials and the United Taxicab Workers union. Drivers are also threatening to bring legal action to stop Yellow Cab, relying on a past ruling barring the company from requiring deposits from its drivers and misclassifying drivers as independent contractors.

Repeated attempts by the Guardian to contact Yellow Cab representatives were unanswered, but they had to talk to Jordanna Thigpen, executive director of the San Francisco Taxicab Commission. She found Yellow Cab’s prepayment plan to be in violation of the Superior Court’s decision. "I was not persuaded that the prepayment was not a deposit," Thigpen told the Guardian. "What they are actually doing is asking for a security deposit again under the guise of an Employment Development Department requirement. But the EDD guidelines are just that — guidelines."

The EDD sets work rules and standards in California. According to its Taxicab Industry information sheet, taxi drivers classified as independent contractors "prepay to lease a taxicab for a period of at least 28 days." Yellow Cab used the line, which is posted prominently for employees to see, to justify requiring that all its drivers prepay up to $1,930.

Bud Hazelkorn, cab driver and chairperson of United Taxicab Workers, said UTW has "been talking to an attorney and hopes to bring an injunction against Yellow Cab." He takes little hope from Yellow Cab’s recent decision to push its prepayment deadline from Aug. 15 to December, though he does think it was a response to the UTW’s outcry.

For Hazelkorn, it matters little whether the deadline is a week or six months from now. "Any kind of prepayment policy is against the Tracy decision," he said. "They are trying to make themselves look better by pushing back the deadline. But the fact is that Yellow Cab wants to establish a precedent of prepayment and that is illegal."

The 1996 ruling in Joseph Tracy vs. Yellow Cab barred cab companies from demanding security deposits from drivers. The order, issued by Judge William Cahill of the San Francisco Superior Court, "permanently enjoins the defendant [Yellow Cab], from classifying plaintiffs and similarly situated drivers as independent contractors for purpose of denying such drivers any benefit under California law with respect to workers’ compensation, unemployment insurance, and paying a cash bond to defendants as a condition of driving a taxicab."

The 1996 case also found that Yellow Cab drivers were being unlawfully misclassified as independent contractors, and ruled that the necessary control Yellow Cab exercises over its drivers requires that they be considered employees. For example, drivers have no control over the amount charged to passengers in fares, and often rely on dispatchers to notify them of potential customers. In addition, Yellow Cab keeps personnel files on each of its drivers, conducts orientation programs for new hires, and does not allow its drivers to advertise their services. The Superior Court also found drivers to be "an integral part of [Yellow Cab’s] business," further solidifying cab drivers’ status as employees.

Yellow Cab driver John Han explained that the prepayment fee is based on the number of shifts a driver works. He offered himself as an example: Han works eight shifts per month. Multiplied by the average daily gate fee of $96.50, Han’s prepayment equals $772. Since Han said that cab drivers make between $100–<\d>$150 per day, most of his earnings are eaten up by the end of his shift — or before the shift even begins.

To coax its drivers into compliance, Yellow Cab posted a sign in its San Francisco office that reads, "Do not delay in completing your prepayment or you will be subject to being held out of service." Han says that being held out is equivalent to being a benched baseball player who is technically still on the team.

"We won’t be fired, but we will be prevented from being able to work," Han said, noting that such threats constitute the exercise of control over the drivers by Yellow Cab. "Forcing drivers to do anything is having control over its workers, which is a employer-employee relationship."

EDD spokesperson John Stroot told the Guardian that the information sheet Yellow Cab uses to justify this policy does not compel companies to do anything new. What it does contain are guidelines for different taxicab business models: one for companies that have employees and another for companies that use independent contractors.

"These are not laws," Stroot said. "Cab companies can operate any way they choose. They are just guidelines for companies to follow to figure wage, hour, and tax issues." If Yellow Cab wanted to make drivers independent contractors, it would have to fulfill all requirements on the sheet, not just the one specifying prepayment. For example, drivers would be required to perform their business without any form of control from Yellow Cab, including foregoing the use of Yellow Cab’s dispatch services. But Stroot said most drivers are employees under common law in California "because the company directs and controls the way drivers provide their services."

Misclassifying employees as independent contractors has become a national issue, particularly after Rep. Lynn Woolsey (D-Marin County) and Rep. Rob Andrews (D-N.J.) introduced a bill intended to crack down on the practice. If passed, the bill would impose penalties on employers who misclassify employees and inform workers of their right to challenge that classification. The bill also would require state unemployment insurance agencies to conduct audits to identify employers guilty of employee misclassification. In addition, the Department of Labor would be required to perform targeted audits of employers in some industries.

The UTW is currently working with Thigpen and Sup. Chris Daly’s office to achieve some form of justice for drivers. "My office is very concerned by this policy," Thigpen said. "It couldn’t have happened at a worse time for drivers. These guys are good people, and they work hard every day." Thigpen said Taxi Commission member Tom Oneto asked her to draft new rules that would apply to such policies. Other than imposing fines and revoking permits, however, there is little her office can do.

"We need serious overhaul of our penalties," Thigpen said. "Right now I can only charge them $25 in fines, which is pathetic. They know they are breaking the law and ripping people off. But how do you begin?" she asked. "We need to get legislation passed that would overhaul the rules." The strongest weapon city officials have against Yellow Cab is to seek an injunction. "Only the courts can decide if this is legal," Thigpen said.

Thigpen and Oneto met July 25 with Lena Gomes, one of Daly’s legislative assistants, to discuss how the Board of Supervisors might take action. "We are creating a resolution urging Yellow Cab not to charge the drivers the fee," Gomes told us. "Yellow Cab appears to be trying to change their drivers classification to avoid certain financial responsibilities. This is one of their strategies."

If Yellow Cab succeeds in its plan, other cab companies may follow suit. "Right now they’re just hanging back to see what Yellow Cab will do," said Han, who estimates that Yellow Cab stands to gain at least $2 million per year from this policy. For Han, not knowing what the company will do with the money is unnerving. "They should be investing it in a health care plan for drivers. But I can only assume the money will be used to buy a sailboat for the top management."

While Hazelkorn said that drivers are "100 percent opposed to this kind of extortion," some disagree. Tariq Mehmood, a Yellow Cab driver for eight years, believes most drivers would rather be independent contractors "because of the freedom it provides us to set our own hours." Mehmood said the UTW’s fight against Yellow Cab is just another ploy to bankrupt the company, which "would be devastating to drivers. I would love to not pay anything — not even gate fees — and still be an independent contractor, but that’s not the reality."

Regardless of how they feel about the policy, some have already begun making payments, while others are quietly saving money just in case. Han refuses to do either, hoping that Yellow Cab can be defeated if enough drivers join him. But 80 to 90 percent of Yellow Cab drivers are immigrants, Han points out, and many are still unacquainted with their rights. "They are afraid to defy the company," he said. "Yellow Cab is setting a trap for those who will fall for it."

Optic nerve

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› johnny@sfbg.com

This is the second year that the Guardian has devoted an issue to local photographers. I’ll wait until it happens a third time before deeming the project an annual endeavor. It’s easy to believe in that possibility, because the range of photography in the Bay Area right now is exceptional. This great state of affairs is partly due to spaces and organizations such as SF Camerawork, RayKo Photo Center, and PhotoAlliance. It’s also due to more do-it-yourself street-level groups such as Hamburger Eyes and one of this issue’s 10 contributors, Cutter Photozine.

Last year’s photography issue focused on portraiture, but this year I’ve opted for a survey approach that allows for spontaneous connections. Jessica Rosen and Sean McFarland both utilize collage, but with vastly different results. Keba Konte’s collage aesthetic adds objects to imagery and links history to autobiography. Investigative work leads to political or societal exposure within Trevor Paglen’s and David Maisel’s photography. Adrianne Fernandez and Bayeté Ross-Smith focus on youth as they bring new twists to traditions such as the family album and the prom portrait. Dustin Aksland’s portraiture also includes teenagers, sometimes plopped onto or stopped within American landscapes, while Mimi Plumb likens rural landscapes to the backs of horses.

August may be when summer winds down and a portion of SF prepares to camp elsewhere, but it’s an important time for local photography. This issue coincides with PhotoAlliance’s and the San Francisco Arts Commission Gallery’s annual exhibition of local photographers. Two of the 10 artists on the following pages are part of that show. American photography also will be playing a major role at the San Francisco Museum of Modern Art next year, when that space presents an exhibition devoted to Robert Frank and his classic monograph The Americans (Steidl).

In honor of an old adage or clichéd truth, there aren’t a lot of words next to the pictures that follow. But the text does include Web site information. In most cases, these photographers’ sites function as another gallery of sorts, one that lacks the tactile nature and dimensions of an actual photograph but at least suggests the variety of a body of work to date. Scope them out, and scope out Pixel Vision, the Guardian‘s arts and culture blog, for interviews and other photography-related pieces this week. Last, before you look, some thanks are due to Glen Helfand, Chuck Mobley, and Mirissa Neff for their help in the selection process, and to Kat Renz for a last-minute idea.

Also in this issue:

>>Killer shots from the bowels of rock

>>Before stalkerazzi, there was Gary Lee Boas

>>Q&A with Heather Renee Russ of Cutter Photozine

>>Q&A with Jessica Rosen

>>Molly Decoudreaux looks beneath local nightlife
———-

NAME Adrianne Fernandez

TITLE Daddy Sends His Love

BACKGROUND In my "Alternative Album" project, the interplay of social and personal history is essential. It yields a complex tension between irony and nostalgia for the so-called family album.

SHOUT OUTS My influences include artists such as Larry Sultan and Elinor Carruci, who have worked with their prospective families to create intimate images that provide a compelling look into family dynamics.

SHOWS "Gender Agenda," through Sept. 14. The Gallery Project, Ann Arbor, Mich. www.thegalleryproject.com. Also "Not Your Mama’s World," Fri/8 through Sept. 9. Washington Gallery of Photography, Bethesda, Md. www.wsp-photo.com

WEB AlternativeAlbum@aol.com

———-

NAME Jessica Rosen

TITLE I Could See the Amazon from the 5th Floor of the Robert Fulton Projects
BACKGROUND This work is a large-scale photo collage installation made from cut-up, layered C-prints of my original photographs. It measures about 10 feet by 12 feet. Because this scale relates to human scale, it allows the viewer to experience the image as an environment rather than as an isolated image.

SHOUT OUTS My work stems from a fascination with people. Over the years my art practice has continually focused on portraiture. Although my newer collage works may seem quite fantastic, most are truly portraits in the traditional sense.

SHOW "Jessica Rosen," through Oct. 1. Open 24/7 (storefront window). Keys That Fit, 2312 Telegraph Ave, Oakl., http://www.xaul.com/KEYS/home.html

WEB www.jessicarosen.com

———-

NAME Cutter Photozine

TITLE Top to bottom, untitled photos by (1) Ethan Indorf; (2) Keith Aguiar; (3) Ace Morgan; (4) Darcy Sharpe

BACKGROUND Cutter is a San Francisco documentary photo magazine. Founded by Heather Renee Russ and Alison O’Connell, it has a DIY ethic and is eco-positive (it uses recycled paper and soy-based inks). Cole Blevins, Jesse Rose Roberts, Sara Seinberg, and Rachel Styer also worked to put out the first issue, which includes 20 photographers and spotlights Ace Morgan’s uncanny blend of rage, longing, joy, and punk rock.

SHOUT OUTS Cutter is dedicated to people telling their stories and documenting their existence. We seek to undo traditional voyeurism toward the "other" and place the power of sight in the focused home of the author.

SHOW The first issue can be purchased at local shops such as Needles & Pens. They’re currently accepting submissions for the second issue, due this fall. There will be a release party and photo show in late November.

WEB www.cutterphotozine.com

———-

NAME David Maisel

TITLE 1165 (from Library of Dust)

BACKGROUND The large-scale photographs of the "Library of Dust" series depict individual copper canisters, dating from 1913 to 1971, which contain unclaimed cremated remains of patients from Oregon’s state-run psychiatric hospital.

SHOUT OUTS Robert Smithson, NASA photographs, 19th-century exploratory landscape photographers (especially Timothy O’Sullivan), and the New Topographics photographers from the mid-1970s.

SHOW "David Maisel: Library of Dust," Sept. 4–Oct. 4. Tues.–Fri., 10:30 a.m.–5:30 p.m.; Sat., 10:30 a.m.–5 p.m. Haines Gallery, 49 Geary (suite 540), SF. (415) 397-8114, www.hainesgallery.com. Library of Dust (Chronicle Books, 108 pages, $80) will be released in October.

WEB www.davidmaisel.com

———-

NAME Keba Konte

TITLE Detail from "888 Pieces of We"

BACKGROUND The eighth day of the eighth month of the eighth year is approaching, and in alignment with this auspicious moment I have created this exhibition of 888 photographs printed on wood, copper, and vintage books. I’ve had to select from thousands of images spanning 42 years in order to choose 888 that reflect my journey: there are protests and portraits, street moments and political movements; freaks, friends, and family members. As a documentary and portrait photographer, one observes the beautiful strangers. However, looking at this large body of work, another story comes into focus: my own.

SHOUT OUTS Roy DeCarava, Gordon Parks, Sebastião Salgado, Ruth Bernhard, Kimara Dixon.

SHOW "888 Pieces of We: A Photo Memoir," Fri/8 through Sept. 8. Oakland Art Gallery, 199 Kahn’s Alley, Oakl. (510) 637-0395, www.oaklandartgallery.org

WEB www.kebakonte.com

———-

NAME Sean McFarland

TITLES Untitled (park)

BACKGROUND I work from an archive of photographs I’ve made, along with images gathered from print and other media. Through collage, new pictures are formed. Recently my work has focused on weather, nighttime, and the ocean.

SHOUT OUTS For now, two books: National Audubon Society Field Guide to North American Weather, (Knopf, 1991), and Gerhard Richter’s Atlas (D.A.P., 2007). Also, students, friends, and just about any archive.

SHOWS "18 Months: Taking the Pulse of Bay Area Photography," through Sept. 17. Mon.–Fri., 8 a.m.–8 p.m. San Francisco Arts Commission Gallery at City Hall, 1 Dr. Carlton B. Goodlet Place, SF. (415) 554-6080, www.sfacgallery.org. Upcoming: "Johanna St. Clare, Paul Wackers, Sean McFarland, Dan Carlson," October. Thurs.–Sat., 1–5 p.m. Eleanor Harwood Gallery, 1295 Alabama, SF.

WEB www.sean-mcfarland.com

———-

NAME Dustin Aksland

TITLE Paso Robles, CA (2005)

BACKGROUND This was shot during a trip to Paso Robles. My friend and I pulled off the highway to take the back roads into town. As soon as we pulled off, we passed this man sleeping in his car. We went about a half-mile and I made my friend turn around. We pulled up in front of the car and I shot two frames out of the passenger window.

INSPIRATION "Useful pictures don’t start from ideas, they start from seeing." — Robert Adams.

SHOWS "States of Mind," September. TH Inside, Brussels, Belgium. "States of Mind," November. TH Inside, Copenhagen, Denmark.

WEB www.dustinaksland.com

———-

NAME Bayeté Ross-Smith

TITLE Here Come the Girls

BACKGROUND This is part of a series that documents high school students in Berkeley, east Oakland, San Francisco, and Richmond as they mark their ascension from childhood to adulthood through the celebratory rite of passage known as prom. Taking a cue from traditional prom photos, the portraits allow for seriousness and playful flamboyance, depicting a vast array of budding identities.

SHOUT OUTS Walter Iooss, the Magnum photographers, and James Van Der Zee.

SHOW "Pomp and Circumstance: First Time to Be Adults," Sept. 4–Oct. 11. Tues.–Fri., 10:30 a.m.–5:30 p.m.; Sat., 10:30 a.m.–5 p.m. Patricia Sweetow Gallery, 77 Geary (mezzanine), SF. (415) 788-5126, www.patriciasweetwogallery.com. Upcoming: "Off Color," Sept. 19–Nov. 1. RUSH Arts Gallery, New York.

WEB www.patriciasweetowgallery.com

———-

NAME Mimi Plumb

TITLE Harley

BACKGROUND These photos are part of an ongoing series that began about 10 years ago when I photographed a herd in the John Muir Wilderness of the Sierra Nevada. The horses in this new series live in Petaluma.

SHOUT OUTS Horses’ backs embody the landscape. They become the horizon and horizon line, at times transforming into the rolling hills of the California landscape where I grew up, before tract houses and strip malls became the norm.

SHOW "18 Months: Taking the Pulse of Bay Area Photography," through Sept. 17. Mon.–Fri., 8 a.m.–8 p.m. San Francisco Arts Commission Gallery at City Hall, 1 Dr. Carlton B. Goodlet Place, SF. (415) 554-6080, www.sfacgallery.org

WEB www.mimiplumb.com

———-

NAME Trevor Paglen

TITLE KEYHOLE 12-3 (IMPROVED CRYSTAL) Near Scorpio (USA 129), 2007

BACKGROUND This is a photo of reconnaissance satellite, taken from the roof of my house in Berkeley. It’s part of a series of photos of American spy satellites.

SHOUT OUTS I got interested in photography because I was working on projects that were nonfiction allegories, projects that played with notions of truth and what we can and can’t see. To me, photography is the medium that does that best. It captures reality and at the same time doesn’t. I like that tension. I also became interested in photography post-9/11 because photography became an aggressive gesture in a way that it wasn’t before — people could be arrested for photographing the Brooklyn Bridge. The act of taking photographs outside became an exercise in civil rights.

SHOWS "The Other Night Sky," through Sept. 14. Wed.–Sun., 11 a.m.–5 p.m. Berkeley Art Museum, 2626 Bancroft, Berk. (510) 642-0808, www.bampfa.berkeley.edu. Upcoming: Taipei Biennial, Sept. 13–Jan. 11, 2009; Istanbul Biennial, 2009; "2008 SECA Art Award Winners," Feb.–May, 2009, SFMOMA.

WEB www.paglen.com

Predictably good

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REVIEW The year is 1976, the American Bicentennial, and snooty British wine seller Steven Spurrier (Alan Rickman) decides to organize a blind taste test, pitting French wine against the then-fledgling California wine. While in Napa he meets Jim Barrett (Bill Pullman), a perfectionist, and his long-haired surf bum son Bo (Chris Pine). Impressed by Barrett’s Château Montelena chardonnay, Spurrier hopes to include it in the competition. It isn’t too difficult to see where all of this is headed, not only because the outcome of the 1976 blind taste test is obvious every time we drink wine produced in the Napa Valley, but also because Bottle Shock isn’t exactly blazing any new territory. The characters are all familiar: an earnest father, his slacker son, and a budding Mexican vintnerready to get out from under the thumb of his white boss. The subplots are equally familiar: a strained father-son relationship and a love triangle. Nevertheless, there is something warm and charming about Bottle Shock. It’s one of those based-on-a-true-story, America-as-underdog movies that are as predictable as they are hard to resist.

BOTTLE SHOCK opens Wed/6 in Bay Area theaters.

Extra! Extra! Exposing PG&E’s Big Lies

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By Bruce B. Brugmann

For connoisseurs of PG&E’s Big Lies in political campaigns, the company’s early massive carpet bombing against the Clean Energy Initiative is most revealing. They are panicked.

Most likely, PG&E will not attack the fundamental premise of the pioneering measure (after all, clean and renewable energy is in this year). But, as our editorial this week notes, PG&E’s theme is to try and scare voters into thinking that the Clean Energy Act is too risky and too expensive in these difficult times. (The last time out, PG&E just used the phrase “too risky, too costly.”)

And they use just plain Big Lies, repeated endlessly in mailers, ads, astroturf campaigns. The reason they often get away with the ads is that they spend millions of dollars to push them and the local media retails them allegro furioso and does little to correct them. and even, in the case of the San Francisco Chronicle, just leaves the initiative out of the news and has yet to do a decent story or insert the local clean initiative angle on their energy stories.
For example, take David Baker’s otherwise creditable front page story in the Saturday (Aug. 2) Chronicle, “”Utiliies To Miss Energy Deadline, PUC says providers are failing to harness 20% from sun, wind.”

Baker doesn’t says nothing about the initiative, which sets ambitious goals for renewable energy. He didn’t quote its sponsors (Sups. Ross Mirkarimi and Aaron Peskin). He didn’t talk to any of the campaign leaders (chair Julian Davis, the Sierra Club’s John Rizzo et al). He didn’t point out that other studies, including one for the California Energy Commission, gave higher marks to public utilities. Why did he ignore the hottest issue on the fall ballot that tied directly into his story? I put the question to him in an email. No answer.

The point: since the local mainstream media don’t correct PG&E’s Big Lies, we’ll do so on a regular basis. .
Let us know if you spot one we haven’t covered. On guard, B3

P.S. A Potrero Hill martini to Matthew S. Bajko, who corrected a PG&E whopper in the Bay Area Reporter blog.
He noted that PG&E got “glowing media coverage” for its $250,000 shareholder donation to the campaign to defeat Proposition 8, the anti-gay marriage ban on the November ballot. The news, he said, was “just the latest in a string of pink steps the company hs taken this summer.”

However, he reported that the pro-gay moves “strike some San Francisco officials as suspect, as the company is locked in a fierce battle with state and local officials over two similar clean energy bills on the fall ballot.”
Some are questioning “PG&E’s altruism in the marriage fight” to shield it from the company’s “homophobic smear campaign” this spring against openly gay Assemblyman Mark Leno in his successful primary victory and that PG&E was behind the mayor’s ouster of Susan Leal as general manager of the PUC.

And he did what Chronicle reporters have not done: called the Clean Energy Campaign for comment. Spokesperson Julian Davis had a good one, “I think addition to greenwashing, PG&E is engaged in gay washing.”

Lennar sued by shipyard artist

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serpentinite,jpg.jpg
Serpentinite is California’s state rock. It can contain naturally-occuring asbestos.

Shipyard artist Jack Hain says he just wants his rocks back. Serpentinite rocks, that is.
And getting these rocks back appears to be the crux of the case that Hain has filed in Superior Court against Lennar. That and the question of whether it’s OK to move materials from one part of shipyard to another.

But unlike the other shipyard-related cases involving Lennar, Hain isn’t worried about possible health risks from the serpentinite, which can contain naturally-occuring asbestos.
200px-Mineraly.sk_-_chryzotil.jpg
Veins of chrysotile, or other members of the asbestos family, can run through serpentinite rock, making it a toxic health hazard, if crushed, dug or otherwise quarried and excavated.

That’s because, says Hain, he wasn’t crushing or grading the rocks, but simply moving them across the yard.

Hain sued Lennar Communities and Lennar BVHP on May 15, 2008 in Superior Court, a month before residents sued the developer and two of its shipyard subcontractors, CH2M Hill and Gordon N. Ball, and five weeks before Lennar sued one of its subcontractors, CH2M Hill, for failure to monitor and control asbestos dust.

But unlike those suits, which center around Lennar’s failure to protect the community from naturally-occurring asbestos, while digging into a hillside full of serpentinite, Hain’s suit centers around the fact that Lennar removed three serpentinite rocks from an art work that Hain was building outside his studio in Building 116 on Parcel B of the Shipyard. (That’s the parcel where the Navy is currently proposing revisions to its original plan for radiological, soil and groundwater clean up.)

tre-f2.gifsized.gif
Map of areas under radiologically investigation at Hunters Point Shipyard.

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…

Lennar’s lawsuits

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› sarah@sfbg.com

Two years after Lennar Corp. reported that asbestos dust had neither been monitored nor controlled during major grading and earthmoving operations on its Parcel A construction site on Hunters Point Shipyard last year (see "The corporation that ate San Francisco," 3/14/08), the fallout from these failures continues.

On June 19 a dozen Bayview–Hunters Point residents and workers sued Lennar, as well as international environmental consultant CH2M Hill and Sacramento-based engineering consultant Gordon N. Ball, in Superior Court on behalf of their preschool and school-age children. The parents allege that their children suffered headaches, skin rashes, and respiratory ailments during Parcel A excavations, which occurred next to a predominantly African American and Latino community.

The plaintiffs charge Lennar, CH2M Hill, and Ball with public nuisance, negligence, environmental racism, intentional infliction of emotional distress, and battery. They are asking for monetary damages, a jury trial, and court costs.

But Lennar is apparently seeking to deflect the blame for these problems at the site entirely onto CH2M Hill through a new federal lawsuit, despite revelations in the Guardian (see "Question of intent," 11/28/07) that Lennar reprimanded its own staffer, Gary McIntyre, when he tried to bring Ball to heel for the company’s failure to properly control the toxic asbestos dust.

On June 23, Lennar BVHP LLC sued subcontractor CH2M Hill for negligence, negligent misrepresentation, breach of contract, express indemnity, and unfair business practices in connection with its work on Parcel A.

"Lennar seeks to recover for the significant economic harm it has suffered in addressing the ramifications of CH2’s gross and reckless misconduct in failing to provide competent asbestos air monitoring services for Lennar’s redevelopment of a portion of Hunters Point Shipyard in San Francisco," states the suit, which seeks damages, restitution and indemnity, attorney fees, court costs, and a jury trial.

"Lennar’s economic harm vastly exceeds $75,000," the suit notes. "CH2 has provided no compensation to Lennar and no other relief for its failures. Indeed, CH2 has never publicly acknowledged its clear responsibility for these failures."

CH2’s Oakland-based vice president, Udai Singh, who signed a $392,600 contract with Lennar in January 2006 for asbestos dust monitoring services, told the Guardian, "Unfortunately I’m not working on that, so I have no clue what you are talking about.

"I thought I might have seen something about that, but since I have been working mostly on EPA stuff, I haven’t been involved in this one," continued Singh, who has been project manager for remedial projects on Superfund sites for the federal EPA’s Region IX, which includes Arizona, California, Hawaii, and Nevada.

Singh referred us to CH2’s Denver-based counsel Kirby Wright, who referred us to CH2’s public relations director, John Corsi, who did not return the Guardian‘s calls as of press time.

But while Lennar BVHP continues to contract with Gordon N. Ball at the shipyard, local resident Christopher Carpenter has sued the Sacramento-based contractor in Superior Court for whistleblower retaliation, wrongful termination, racial discrimination, and intentional infliction of emotional distress.

As the Guardian reported, ("Green City: Signs of asbestos," 8/29/07), Carpenter was fired shortly after he complained about dust that was kicked up by a Ball backhoe excavating the Parcel A hillside on Oct. 2, 2006.

"Carpenter became surrounded by a cloud of dust that was caused by Gordon Ball’s failure to water the ground prior to commencing grading," the suit alleges, noting that Carpenter complained about Ball’s unsafe and unhealthy working conditions, some of which violated Bay Area Air Quality Management District regulations and the city’s Health Code, before he was fired.

At City Hall, Sup. Sophie Maxwell is seeking to amend the city’s Building Code to require more-stringent dust control measures for demolition and construction projects. (The Building Inspection Commission opposed Maxwell’s proposal in December 2007, in a 4–3 vote).

On July 22, the Board of Supervisors voted unanimously to support Maxwell’s dust legislation.

Meanwhile, the Rev. Christopher Muhammad, who represents the Muhammad University of Islam adjacent to Parcel A, asked the San Francisco Health Commission to investigate why it took until July 14 for the local community to learn of an asbestos-level violation that occurred at Lennar’s Parcel A site just four days before the June 3 election.

Muhammad suspects the infraction was hushed up because Lennar was engaged in the most expensive initiative battle in San Francisco’s history, plunking down a total of $5 million to support the ultimately successful Proposition G, which gives the developer control of Candlestick Point and the shipyard.

Amy Brownell of the Department of Public Health told the Guardian that the violation, which registered at 138,800 structures per cubic meter of air (the city’s work shutdown level is set at 16,000 structures) did not trigger a work suspension because there was no work planned at Lennar’s site May 31 or June 1, which was a weekend.

Pelosi backs Bush on Iran

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OPINION Has Nancy Pelosi signed off on the George W. Bush administration’s covert CIA operations in Iran? Yes, according to Seymour Hersh’s July 14 New Yorker article, "Preparing the Battlefield." Late last year, the White House submitted a Presidential Finding, a highly classified document signed by the president, to be cleared with the leaders and ranking intelligence committee members of both parties in both branches of Congress — a group that, by dint of her position as Speaker of the House, includes Pelosi.

According to a Hersh source, "Although some legislators were troubled by aspects of the Finding … the funding for the escalation was approved" — noting that congressional leaders authorized up to $400 million for increased efforts to destabilize Iran’s government.

When some Democrats became uncomfortable with the prospect of approving "potential defensive lethal action by US operatives in Iran," they conferred with CIA Director Michael V. Hayden who, Hersh writes, "reassured the legislators that the language did nothing more than provide authority for Special Forces operatives on the ground in Iran to shoot their way out if they faced capture or harm."

Nothing more than to shoot their way out? If President Bush were to reveal evidence of Iranian agents dropped into this country and authorized to kill Americans, we can well imagine Pelosi speaking forcefully about the outrage she and the House delegation would feel about such an egregious breach of our sovereignty. But how in the world does the representative of perhaps the most antiwar city in the country sign off on the United States doing this to another nation?

Then there’s the question of whom we’re funding. According to a former Middle East CIA operative, one beneficiary, the Baluchis, a Sunni Muslim group in the majority Shiite country, are "fundamentalists … you can also describe … as Al Qaeda." Another, Mujahideen-e-Khalq, has been on the State Department terrorist list for more than 10 years.

That the Bush White House would resort to arming known enemies in its frantic effort to create new ones is bad. Democrats signing off on it is even worse. But the fact that a representative from San Francisco, a city that has time and again demonstrated its opposition to these sorts of policies, might approve them is about as gross a distortion of the public will as you’re likely to find.

Hersh quotes an aide to one of the four Democrats notified of the Finding predictably arguing that it was "just that — notification, and not a sign-off on activities." But he accurately points out that Congress "has the power to withhold funding for any government operation," but chose not to.

The burden of persuading Nancy Pelosi that the Democratic Party should not approve such policies may lie primarily with her House colleagues. But if she, or they, think that this is what the Speaker needs to do, then she needs to leave that job behind — because funding a covert war in Iran simply does not represent the interests or the will of California’s 8th Congressional District.

Tom Gallagher

Tom Gallagher is a former Massachusetts state legislator who lives in San Francisco.

Clean Energy Act makes ballot

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› news@sfbg.com

GREEN CITY The San Francisco Clean Energy Act isn’t the only charter amendment on the November ballot, but it’s already shaping up to be the political lightning rod of this fall’s election.

Pacific Gas & Electric Co. sent out mailers opposing the measure even before the Board of Supervisors voted 7-4 on July 22 to place it on the Nov. 4 ballot. Mayor Gavin Newsom also announced his opposition to the act moments after Assemblymember Mark Leno, former San Francisco Public Utilities Commission General Manager Susan Leal, and a cadre of progressive supervisors announced their support for it on the steps of City Hall.

Authored by Sups. Ross Mirkarimi and Aaron Peskin, the Clean Energy Act requires San Francisco to fulfill 51 percent of its electricity needs through renewable sources by 2017. That requirement rises to 75 percent by 2030, and to 100 percent, “or the greatest amount technologically feasible or practicable,” by 2040.

The SF Clean Energy Act also mandates that a feasibility study be undertaken to look at the best way to provide clean, green energy, which could lead to PG&E losing its stranglehold on energy if the study finds public power to be the best option.

Explaining the importance of mandating a feasibility study, Mirkarimi said, “Otherwise PG&E has a monopoly here until the planet dies.”

Supporters say it is important for San Francisco to set up a model that others can follow. “As goes San Francisco, so goes the state of California, and so goes the nation,” Peskin said at the July 22 rally, just before the Board voted to place the act on the ballot. “This is a time when people can change the destiny of the planet.”

Moments after that rally ended, Mayor Newsom took a minute to explain his opposition.

“We have other things we should be focusing on,” Newsom told reporters at a press conference at the War Memorial Building to announce housing bonds for veterans. “Let’s call it what it is. It’s a power takeover of PG&E,” he said.

But the elected officials and myriad organizations who showed up at City Hall to support the Clean Energy Act say that public vs. private power is not the main issue.

“The public power considerations have been drafted in a thoughtful and reasonable way,” Leno told the crowd. “It would involve study after study after study, and testimony from experts.”

Leno noted that 42 million Americans have public power, and if San Francisco did turn to public power, it would be embracing something as American as mom and apple pie. “Unlike their private power company counterparts, public power systems serve only one constituency: their customers,” Leno said.

Sup. Gerardo Sandoval opined that government is better able to assume renewable energy risks. “The private industry is not going to take that risk,” Sandoval said. “It’s always going to take the cheap way out, which is fossil fuels.

Others warned the audience not to be swayed by PG&E’s anti–Clean Energy campaign, which Newsom’s chief political consultant Eric Jaye is working on.

“This is not some crazy takeover scheme,” Leal said. “It’s about protecting the environment and the rights of San Franciscans and their rate payers.”

The Clean Energy Act has been endorsed by the Sierra Club, San Francisco Tomorrow, ACORN, the San Francisco Green Party, the League of Young Voters, Green Action for Health and Environmental Justice, the San Francisco Green Party, and the Ella Baker Center for Human Rights.

Mark Sanchez, president of the San Francisco Board of Education and a supervisorial candidate in District 9, described showing “An Inconvenient Truth” to the eighth-grade science class he teaches. “What can I say to my kids — we don’t have the policies in place to mitigate the damage they see?”

The Sierra Club’s John Rizzo noted, “This act insures that San Francisco is at the center of this economy. Not in Japan, China, or Germany. It will be here.”

Aliza Wasserman of the League of Young Voters stated that “PG&E is not investing $1 in renewable energy beyond state mandates, and they lobby against measures to raise those mandates.”