Chamber of Commerce

Start the mayor’s race now

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EDITORIAL

We hope you enjoyed last week’s cover package, “The Rise of Candidate X,” a parable about politics and the media in San Francisco. While it was clearly a fantastical tale, it also had a serious underlying message that we would like to discuss more directly here. Bold actions are needed to save San Francisco. It will take a broad-based coalition to keep the city open to all, and that movement can and should morph into a progressive campaign for the Mayor’s Office, starting now.

While 22 months seems like an eternity in electoral politics, and it is, any serious campaign to unseat Mayor Ed Lee — with all the institutional and financial support lined up behind him — will need to begin soon. Maybe that doesn’t even need to involve the candidate yet, but the constellation of progressive constituencies needs to coordinate their efforts to create a comprehensive vision for the city, one radical enough to really challenge the status quo, and a roadmap for getting there.

It’s exciting to see the resurgence of progressive politics in the city over the last six months, with effective organizing and actions by tenant, immigrant rights, affordable housing, anti-corporate, labor, economic justice, LGBT, environmental, transit, and other progressive groups.

Already, they’ve started to coordinate their actions and messaging, as we saw with the coalition that made housing rights a centerpiece of the annual Milk-Moscone Memorial March. Next, we’d like to see progressive transportation and affordable housing activists bridge their differences, stop fighting each other for funding within the current zero-sum game of city budgets, and fully support a broad progressive agenda that seeks new resources for those urgent needs and others.

Yet City Hall is out of touch with the growing populist outrage over trends and policies that favor wealthy corporations and individuals, at the expense of this city’s diversity, health, and real economic vitality (which comes from promoting and protecting small businesses, not using local corporate welfare to subsidize Wall Street). The San Francisco Chamber of Commerce recently gave this Board of Supervisors its highest-ever ranking on its annual “Paychecks and Pink Slips” ratings, which is surely a sign that City Hall is becoming more sympathetic to the interests of business elites than that of the average city resident.

This has to change, and it won’t be enough to focus on citizens’ initiatives or this year’s supervisorial races, which provide few opportunities to really change the political dynamics under the dome. We need to support and strengthen the resurgent progressive movement in this city and set its sights on Room 200, with enough time to develop and promote an inclusive agenda.

San Francisco has a strong-mayor form of government, a power that has been effectively and repeatedly wielded on behalf of already-powerful constituents by Mayor Ed Lee and his pro-downtown predecessors. Lee has used it to veto Board of Supervisors’ actions protecting tenants, workers, and immigrants; and the commissions he controls have rubber-stamped development projects without adequate public benefits and blocked the CleanPowerSF program, despite its approval by a veto-proof board majority.

Maybe Mayor Lee will rediscover his roots as a tenant lawyer, or he will heed the prevailing political winds now blowing through the city. Or maybe he’ll never cross the powerful economic interests who put him in office. But we do know that the only way to get the Mayor’s Office to pursue real progressive reforms is for a strong progressive movement to seek that office.

New York City, which faces socioeconomic challenges similar to San Francisco’s, has exciting potential right now because of the election of Mayor Bill de Blasio, who waged a long and difficult campaign based on progressive ideals and issues. By contrast, San Francisco seems stuck in the anachronistic view that catering to capitalists will somehow serve the masses.

The Mayor’s Office has been a potent force for blocking progressive reforms over the last 20 years. Now is the time to place that office in service of the people.

 

Tale of two parties: Voters reject 8 Washington project

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From the Election Night victory party for opponents of the 8 Washington waterfront luxury condo project, the overwhelming defeat of developer-backed Propositions B and C seemed to go beyond just this project. It sounded and felt like a blow against Mayor Ed Lee’s economic policies, the gentrification of the city, and the dominion that developers and power brokers have at City Hall.

“What started as a referendum on height limits on the waterfront has become a referendum on the mayor and City Hall,” former Board of Supervisors President Aaron Peskin told the large and buoyant crowd, a message repeated again and again at the Nov. 5 gathering.

Former Mayor Art Agnos also cast the victory over 8 Washington as the people standing up against narrow economic and political interests that want to dictate what gets built on public land on the waterfront, driven by larger concerns about who controls San Francisco and who gets to live here.

“This is not the end, this is the beginning and it feels like a movement,” Agnos told the crowd. “We’ll have to tell the mayor that his legacy,” a term Lee has used to describe the Warriors Arena he wants to build on Piers 30-32,” is not going to be on our waterfront.”

Campaign Manager Jon Golinger also described the victory in terms of a political awakening and turning point: “We are San Francisco and you just heard us roar!”

Campaign consultant Jim Stearns told the Guardian that he thought the measures would be defeated, but everyone was surprised by the wide margin — the initiative B lost by 25 percentage points, the referendum C was 33 points down — which he attributed to the “perfect storm” of opposition.

Stearns cited three factors that triggered the overwhelming defeat: recent populist outrage over the city’s affordability crisis, concerns about waterfront height crossing ideological lines, and “a tone deaf City Hall that didn’t want to hear there were any problems with the project.”

Among the key project opponents who have sometimes stood in opposition to the city’s progressives was former City Attorney Louise Renne, who blasted City Hall and called the Planning Department “utterly disgraceful,” telling the crowd, “Get your rest, more to come, San Francisco.”

Both progressive and political moderates often share a distrust of the close connections between powerful developers and the Mayor’s Office, and that seemed to play out in this campaign and at the polls.

“San Francisco, this victory is for you,” Renne said. “And to all those developers out there: Do not mess with our waterfront. We’re not going to stand for it.”

Meanwhile, it was a very different scene over at the Yes on B and C party.

Developer Simon Snellgrove, whose 8 Washington project was soundly rejected despite his spending almost $2 million on the campaign, was in no mood to comment. “I’m having a little private party tonight,” he told us, “and I don’t want to talk to the press.”

Rose Pak, a consultant for the San Francisco Chinese Chamber of Commerce who is well-known for her ties to powerful interests in the city, had a small circle of guests around her throughout the night and spent some time catching up with Snellgrove. Asked to comment, Pak said, “I don’t know the Bay Guardian,” and stopped making eye contact. At previous events, Pak has lectured Guardian reporters about what she sees as the paper’s shortcomings.

“I think this project got caught up in a lot of other things,” Jim Lazarus, the vice president for public policy at the San Francisco Chamber of Commerce, told us. “There was a lot of I think mistaken concern about the impact.”

He criticized the focus on building heights and the idea that it was about something more than just a waterfront development project. But this was the outcome, he said, because “an unholy alliance of people got together to oppose the project.”

Perhaps “unholy alliance” is in the eyes of the beholder, but the voters of San Francisco seemed to prefer the alliance that opposed 8 Washington and all that it has come to represent in San Francisco. 

 

Chronicle: Don’t question the City College takeover, just submit to the flawed ACCJC

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I have very low expectations from editorials in the San Francisco Chronicle, which generally share a worldview with the Chamber of Commerce and carry water for some powerful Establishment figure or another. But today’s editorial on City Attorney Dennis Herrera’s lawsuit defending City College is so bad and illogical that it reads like an Onion parody of a Chronicle editorial.

Clearly put up to it by some of the most reactionary figures in the Mayor’s Office, Chronicle Editorial Page Editor John Diaz or one his lackeys parrot the submissive stance that Mayor Ed Lee has taken toward outsiders with corporatist agenda that have seized control of City College and sought to make a high-profile example of it.

“The city’s leaders should be calling for tough love, not coddling dysfunction. Fortunately, Mayor Ed Lee has done just that – but, regrettably, the city attorney is going in the opposite direct [sic],” the Chronicle wrote.

And by “tough love,” they apparently mean obedient and unquestioning compliance with an obscure accrediting agency’s demand that City College slash community-based curriculum; close facilities relied on by both students and local nonprofit groups; rip up contracts with faculty and force instructors to live on part-time wages; distill course offerings down to just what serve corporations, universities, and banking interests; and other aspects of an educational agenda that hasn’t been properly vetted in public hearings or approved by any elected body.

Herrera is to be applauded for pointing out the overreach and conflicts-of-interest on the Accrediting Commission of Community and Junior Colleges, which were also recently criticized by the US Department of Education. And we’re excited to see what Herrera uncovers during the discovery process in his lawsuit against a secretive, corporate-connected, document-shredding agency that broke its own internal rules in its treatment of City College.

The Chronicle graciously refers to these unavoidable facts in a brief paragraph, writing that the ACCJC “is not without flaws. It’s secretive, and its internal policies drew a rebuke from the U.S. Department of Education after City College faculty filed complaints about its conduct.”

But then it dimisses that and shows a suspicious incuriosity about why the ACCJC is being so secretive and what its agenda might be, instead doubling down on criticizing City College in a way that is so over-the-top that this fine institution is unrecognizable to anyone who is actually familiar with it, which Diaz and company clearly aren’t.   

“The needed changes include hiring a comptroller to organize financial controls, making sure students pay for classes, and overhauling a loose-fit governance system that puts faculty, students and staff in charge of operations with inadequate administrative controls. Lee has strongly endorsed an overhaul of City College’s ramshackle operations,” the Chronicle writes.

Unlike us here at the Guardian, where I’ve written two recent editorials in support of democracy and local control and critical of Lee and others who have been too quick to cooperate with the toppling of the locally elected Board of Trustees, the Chronicle apparently believe in more authoritarian methods of governance.

“The first repairs are now under way. The powers of the elected community college board are on hold, and a special trustee dispatched by state Community College Chancellor Brice Harris is in charge,” the Chronicle writes.

And as we report in our upcoming issue, that special trustee also has no interest in questioning the ACCJC’s process or methods or even allowing the public to review internal communications. It’s a shame that bootlickers like Lee and the Chronicle have sold out such an important local institution to their corporate masters, but luckily for San Francisco, Herrera, the California Federation of Teachers, the Guardian, other progressive media voices, and hundreds of our community partners aren’t giving up so easily, instead pushing for an open, truthful, democratic, and transparent discussion about City College’s mission and its future.

Richmond gets radical, seizing foreclosed homes from banks

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As a rule of thumb, we at the Guardian tend to believe that if the banking and real estate industries are against something, then we’re probably in support of it. But that’s not the only reason that I’m so intrigued about the possibilities of Richmond taking ownership of hundreds of foreclosed homes, using eminent domain laws as needed, to keep people from being evicted and rejuvenate the community.

Richmond officials want to take over 624 homes that are underwater in that foreclosure-plagued city, becoming the first city in the country to do so. San Bernardino had considered and rejected the idea earlier, largely because of opposition from banks and threats that they might stop lending in the city. But Richmond officials appear to be holding tough against such extortionary threats and moving forward.

KQED’s Forum did an interesting segment on the situation this morning, following up a report from Democracy Now! on Tuesday (KALW also did something on this last month), with the bankers and Realtors offering up all kinds of unfounded concerns and fear mongering to confuse the issue. Because this is a truly radical action that Richmond is considering, in the best sense of that term: banks and those who control property have too much power over our lives, and it’s about time a city takes some of that power back on behalf of its people.

This is like nationalizing the assets of corrupt capitalists who have gone too far in subverting the broad public interest, a populist shot over the bow of the people who consider themselves our economic masters, from Wall Street right down San Francisco’s Chamber of Commerce and Association of Realtors.  

As Richmond Mayor Gayle McLaughlin told Democracy Now: “The banks sold our community predatory loans, and now they have no solution that they’re presenting for this crisis. So we are stepping in to fix the situation. We’re stepping in by taking these troubled loans off the hands of the banks. And we’re paying them fair market value for these loans, and then we’re working with the homeowners to refinance and modify loans in line with current home values. So we call on the banks to voluntarily sell us these loans. And if they don’t cooperate, we will be considering eminent domain.”

Just think about the possibilities of this: cities could seize all their most distressed properties, then pay fair market value (which would be at fire sale prices for rundown homes in communities with high foreclosure rates), have the residents work with city officials to turn the area around and thus substantially increase the value of those homes, and eventually sell those homes at a profit, either to their current occupants or some other city residents (choosing buyers based on social considerations, not strictly financial ones). If it works on a small-scale, it could be ramped up to larger and larger scales, with cities selling bonds to buy real assets that would only go up in value as properties get more attention than these absentee bankers have been giving them.

If predatory entrepreneurs can buy these short-sale properties and flip them for a profit, why can cities do the same thing and do some good for their people in the process?

Mayor on local health care policy: “Everything is on the table”

A recent controversy has been brewing around San Francisco’s Health Care Security Ordinance, the 2006 legislation authored by then-Sup. Tom Ammiano that created Healthy San Francisco, the city’s medical services safety net program for the uninsured.

As we explain in greater depth in an article for tomorrow’s issue of the Guardian, influential forces in the business community such as the San Francisco Chamber of Commerce and the Golden Gate Restaurant Association have been publicly raising questions about the Health Care Security Ordinance in light of the federal implementation of the Affordable Care Act, aka Obamacare.

In a recent article in the San Francisco Business Times, Small Business California President Scott Hauge was quoted as saying, “We question whether Healthy San Francisco should continue in its current form with the ACA coming in.” And an article published today suggests that some are continuing to question whether the HCSO can legally coexist alongside the federal requirements under the ACA despite clarification given by Jon Givner of the San Francisco City Attorney’s Office last Thursday stating that the ACA expressly allows jurisdictions like San Francisco to adopt health-care policies such as the HCSO.

Meanwhile, the message from defenders of the city’s health care policy at a hearing called by Sup. David Campos last week was clear: Funding for employee health care generated by employer contribution provisions under the HCSO will be needed more than ever once the ACA is implemented, because many people who now rely on the low-cost Healthy San Francisco for medical care will suddenly find themselves ineligible for that program and automatically funneled into a new system where they are eligible to sign up for subsidized health care, but won’t necessarily be able to afford it.

The ACA will begin enrollment in October, and will take effect in January of 2014. At that point, roughly two-thirds of current enrollees in Healthy San Francisco will either transition to Medi-Cal (if they earn up to 138 percent of the federal poverty level) or qualify for subsidized health care coverage under Covered California, the health benefit exchange created under the ACA. Things are apt to be the most complicated for Healthy San Francisco enrollees who discover they cannot actually afford to take advantage of the options offered under Covered California. 

For this reason, Campos stressed that the HCSO should remain in place without being scaled back or tampered with, because medical reimbursement accounts provided by employer contributions under the ordinance could serve to fill those gaps and help low-wage earners obtain coverage regardless of income. As things stand, Campos and Healthy San Francisco advocates said, gaps created under the ACA will be filled by stronger HCSO provisions, so the programs stand to complement one another.

But the business community, seeking what GGRA executive director Rob Black described to the Guardian as “guidance” from the city on how to move forward given the pending implantation of federal health care reform, wishes instead to open up a new policy dialogue about the HCSO. The mayor has been receptive to their concerns, and recently reconstituted the Universal Healthcare Council, a body that was previously formed to hash out local health care policy.

A key question is who will be appointed serve on that board: Department of Public Health Director Barbara Garcia will chair it, but so far the only indication of who else will be named is that it will consist of “community, healthcare, labor and business stakeholders,” according to a quote attributed to Garcia in the Business Times. Will the makeup include members of the GGRA, the business organization that sued the city to overturn the employer contribution mandate under the HCSO? 

In response to questions about whether the mayor believed the employer spending requirement ought to be revisited in light of ACA implementation, and who would be appointed to the newly convened healthcare council, mayoral spokesperson Christine Falvey responded ot the Guardian with the following statement: “Everything is on the table as the City develops a plan to best implement [the Affordable Care Act]. This is a great opportunity to see how the city can continue to be a leader in making sure San Franciscans have access to quality healthcare. We are currently updating a membership list for the Universal Healthcare Council. More information on that as it becomes available.”

Under fire again

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rebecca@sfbg.com

At a recent hearing on San Francisco’s Health Care Security Ordinance — once-controversial legislation that is now in the business community’s crosshairs once again — a nursing student stood at the podium to address members of the Board of Supervisors Neighborhood Services & Safety Committee.

She told them about her mother, who battled illness but did not have access to healthcare for 14 years due to her immigration status, recalling a day when her mother explained why she wasn’t seeking medical attention: “If I go to the hospital, I’ll bury you in debt.”

For the uninsured and undocumented, going without medical care or going into insurmountable debt could be the only options if it weren’t for Healthy San Francisco, a medical services safety net that was created by the HSCO in 2006. The program is expected to continue to provide care for undocumented enrollees who won’t be eligible for federal assistance once the Affordable Care Act, also called Obamacare, takes effect early next year.

The HCSO’s mandate that businesses provide some healthcare coverage for their employees was fiercely opposed by the business community, which challenged it all the way to the US Supreme Court. Now, those same powerful forces are gearing up for a fresh challenge that could jeopardize HCSO’s potential to fill coverage gaps that will be created under Obamacare.

Under federal health care reform, two-thirds of the enrollees in Healthy San Francisco will become ineligible to continue receiving coverage because they will automatically gain eligibility for some form of federal assistance. Those earning up to 138 percent of the federal poverty level will be guaranteed coverage under Medi-Cal. But for low-income earners whose wages hover around $14 an hour, things are far less certain because they will be eligible to enroll in the federally created health benefit exchange, Covered California, although they won’t necessarily be able to afford it. For someone earning around $30,000 per year before taxes, the estimated monthly cost for a health insurance plan under Covered California hovers at more than $200 per month, in many cases making it too much of a stretch.

As things stand, uninsured San Francisco employees who earn too much to qualify for Medi-Cal, but not enough to afford enrollment in Covered California — despite being eligible — can still access funds set aside for them in medical reimbursement accounts under the HCSO. This option may provide enough of a financial boost for low-wage earners to take advantage of federally subsidized health insurance after all.

“For working people, the implementation of the Affordable Care Act actually makes the Health Care Security Ordinance more important,” explains Ian Lewis, research director at UNITE-HERE Local 2. “There are many consequences of the ACA … and the Health Care Security Ordinance is a buffer against them.”

As it stands, the local law “makes Covered California actually work in a high-cost city like ours,” Lewis added.

Under HCSO, San Francisco employers are required to contribute toward employees’ health care on a per-hour basis for each employee working more than eight hours per week, regardless of immigration status or city of residence, amounting to an estimated $255 per participant per month.

This mandate, known as the Employer Spending Requirement, has been the target of multiple lawsuits brought against the city by the Golden Gate Restaurant Association since the landmark health care ordinance, authored by then-Sup. Tom Ammiano, was first enacted in 2006.

That same requirement also makes the local ordinance stronger than the federal law when it comes to worker protections, because the federal mandate only requires employers to offer coverage for workers who put in 30 hours a week or more. That has prompted businesses nationwide to reschedule their workers down to 29 hours per week in a gesture of opposition to health care reform, but no such incentive exists in San Francisco because of the hourly contribution requirement.

Now that federal health care reform is poised for implementation, with enrollment set to begin in October and a transition to the new system slated for early next year, GGRA and the San Francisco Chamber of Commerce are urging the city to open up a new policy dialogue about employer requirements under the local health care law — and Mayor Ed Lee has been receptive.

“We question whether Healthy San Francisco should continue in its current form with the ACA coming in,” Small Business California President Scott Hauge told the San Francisco Business Times (“Healthy San Francisco, related program to shrink dramatically, but not price tag,” July 16). Hauge has met with Jim Lazarus, the Chamber’s senior vice president for public policy, and GGRA Director Rob Black on the issue, the article noted.

Reached by phone, Black emphasized to the Guardian that GGRA employers are merely seeking guidance on how businesses should comply with the local and federal mandates. “It’s important that we really focus on getting together, and getting together quickly,” Black said, to ensure “San Franciscans have access to the full benefits and subsidies of the Affordable Care Act.”

Longtime advocates of Healthy San Francisco and progressive policymakers are watching closely. “They’ve been trying to get out of their responsibility to provide worker’s health care since the law was passed,” Hillary Ronen, a legislative aide for Sup. David Campos, said of business interests who are airing complaints about employer requirements.

Once the federal law takes effect, San Francisco employers will have the option of either providing coverage, or contributing to a city program that establishes medical reimbursement accounts for employees administered by city government, Ronen explained. A third option, “standalone health reimbursement accounts,” under which employers manage reimbursement funds for employees, will be rendered illegal under Obamacare. That system generated controversy in recent years because employers were placing undue restrictions on the use of those funds, and in some cases even pocketing the money after neglecting to inform their workers that it was available (see “Check, please,” 4/23/13).

On July 25, Lee announced that the city’s Universal Health Care Council, a body previously tasked with guiding local health care policy, would be reconvened to “examine San Francisco’s implementation of the Federal Affordable Care Act (ACA) and engage stakeholders in identifying necessary local policies” to support the transition.

In response to signals that the business community is gearing up for a fresh challenge to the city’s health care law using the ACA as ammunition, Campos convened a hearing July 25 to discuss the importance of the HCSO in relation to the federal law.

For several hours, advocates of Healthy San Francisco — many of them members of the immigrant community who would have no other options if it weren’t for the program — delivered passionate defenses of the current program. Campos emphasized that federal health care reform stood to be a great success in combination with the local health care ordinance, which would serve to fill in any gaps in coverage.

Deputy Director of the Department of Public Health Colleen Chawla explained during the hearing that of the 60,000 San Franciscans currently enrolled either in Healthy San Francisco or SF Path, a second medical assistance program, roughly 40,500 will automatically become eligible to enroll either in Medi-Cal or Covered California under federal health care reform come January. The remaining 19,500 won’t be eligible, however, mostly due to immigration status. Healthy San Francisco is expected to continue providing a safety net for those who would otherwise fall through the cracks. But when it comes to the two-thirds who are eligible for federal assistance, but may not be able to actually afford it, things would be thrown into uncertainty if the Employer Spending Requirement were altered or eliminated. “Folks in the business community would be happy to say, the Affordable Care Act is enough, and businesses shouldn’t be complicated with an additional burden,” notes Le Ly, program director at the Chinese Progressive Association. But the HCSO “is an important pillar of the total continuum of care,” he said. “We see it as continuing to complement and strengthen health care coverage.”

David Chiu’s flextime

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I’m not surprised that the folks at the Chamber of Commerce are all agitated about Sup. David Chiu’s proposal to expand family-friendly scheduling at local businesses. The Chamber’s Jim Lazarus is typically out of control:

“At some point, people are not going to want to create businesses in San Francisco when they have to go up to City Hall for a hearing every time an employee doesn’t like their reason for not agreeing to a shorter workweek,” Lazarus said. “Are we going to close for the month of August like France? Is that the next one?”

For the record, I’m all in favor of the French way of thinking about work. But you already know that.

Here’s the crazy thing, though: The Chiu legislation is actually remarkably mild. All it says is that a worker at a company with more than 10 employees has the right to request a different work schedule. The word here is “request.” The company can deny the request if would “create an undue hardship for the company or organization, including an increase in costs or a detrimental effect on the ability to meet customer or client demands.”

Folks: That’s a huge, broad exemption. If giving an employee the right to work at home sometimes (actually, a good idea for lots of reasons, including climate change) or the right to start or end a shift early or late, costs any money or causes any real disruption in the business, then management is exempt and can deny the request.

All the law would really do is elevate the idea of flextime to something that has to be considered if someone asks for it. And you can’t be fired for asking.

If the Chamber is going to go ballistic about this, it’s way out of step. A lot of businesses in the city already comply with at least the spirit of the Chiu law. I don’t see this as a huge issue for anyone.

Small Business Awards 2013: R&G Lounge

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The R & G Lounge has been a fixture in San Francisco’s Chinatown for 28 years. Taking up three floors with a seating capacity of 225, it’s served as the backdrop for many a wedding rehearsal dinner, birthday celebration, and other special occasion bashes. But it isn’t just heartwarming memories of being surrounded by friends and family with a pleasant Tsingtao buzz that linger in diners’ minds. Just as often, it’s the taste of the establishment’s signature seafood plate: salt and pepper live Dungeness crab.

“It was love at first bite,” a 25-year-old Yelper gushes about the first time she tried the specialty, back when she was in the seventh grade. The dish is available year-round, sourced locally when in season.

The R & G Lounge is known for dishing up traditional Cantonese cuisine from the Guangdong province of southern China. Most of the workers are originally from mainland China, and live in the city.

“We have a low turnover,” manager Frank Wong says of his staff, which is 70 strong. Rather than puffing up any star chefs, Wong describes the working atmosphere as decidedly “team-oriented.” Conversations in Cantonese and Mandarin float through the air, mingling with the savory aromas of ox tail stew, chow mein, Peking duck, or steamed fish plucked straight from the tank. Chinatown activist groups laud the restaurant for its exemplary treatment of workers, and efforts to extend benefits to them rarely seen in the neighborhood.

The restaurant has deep roots in the Chinatown community, regularly donating to schools in the area. When hosting community-based functions, “we work a lot through the San Francisco Chinese Chamber of Commerce,” says Wong, adding that multiple family members and investors own the popular restaurant, including Kinson Wong.

This connection helps drive a steady stream of “locals, business people, and tourists” through R & G’s doors, and since its located along the route of the Chinese New Year Parade, the sound of drums and the sight of a dragon procession can make for delicious accompaniment for your meal. 

631 Kearny, SF. (415) 982-7877, www.rnglounge.com

Ammiano’s on a roll

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Willie Brown, the former mayor and current unregistered lobbyist, has been trying to undermine Assemblymember Tom Ammiano for years. But take a look at two Ammiano bills this spring and you get a sense of how effective San Francisco’s veteran representative can be.

On April 23, the state Assembly Judiciary Committee passed Ammiano’s Homeless Bill of Rights, 7-3. That wasn’t easy; he had to amend the bill and work the committee hard. The League of California Cities, which has a lot of clout in Sacto, doesn’t like the bill; neither does the California Chamber of Commerce. This is a big deal; the bill would ban most “sit-lie” laws and guarantee everyone the right to use public space.

Then the Pubilc Safety Committee approved his marijuana regulation bill, 5-2 (despite Brown and Co. trying to screw it up). And his Domestic Workers Bill of Rights , which the governor vetoed last year, is headed for likely approval at the Labor and Employment Committee.

There’s still a long road ahead for all of these bills — more committees, Assembly floor, Senate, and then the guv (and who the hell knows where Jerry will be on anything these days). But it’s possible that, in his final term, Ammiano could have several landmark bills approved.

(Yeah, it’s his final term. Six years is all you get in the Assembly. Crazy what terms limits has wrought. The minute you get to the point where you really know how to do your job, and you can truly deliver for your constitutents, they shove you out the door.)

 

Check, please

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steve@sfbg.com

San Francisco restaurants that have been cheating their customers and employees — charging diners for city-required healthcare coverage that they aren’t fully providing to workers — will finally be exposed in the coming weeks, with some notable names in foodie circles among the likely culprits.

City Attorney Dennis Herrera is working on settlements with dozens of restaurants that responded to his investigation and partial amnesty offer, which had an April 10 deadline. His effort augments the complaint-driven enforcement actions by the city’s Office of Labor Standards Enforcement, which has collected millions of dollars for thousands of employees of negligent local businesses in recent years.

At issue is the Healthcare Security Ordinance, the landmark 2008 law authored by then-Sup. Tom Ammiano that requires San Francisco businesses to provide a minimal level of healthcare benefits to their workers. Businesses are also required to report spending and surcharge figures to the OLSE annually, with the next report due April 30.

Last year’s data show celebrity chef Michael Mina’s Mina Group LLC — which includes the restaurants Michael Mina, RN74, Bourbon Steak, and Clock Bar — to be the top violator, collecting $539,806 in surcharges from customers and spending just $211,809 on employee healthcare.

Herrera used that list to ask more than 70 businesses to show they are in compliance with the law or reach discounted settlements now to avoid punitive fines or criminal charges later, and Herrera told us he received 60 responses and had his inquiry snubbed by fewer than a dozen.

“It’s too early to talk about how large a recovery we’ll be getting for workers, but I’m pleased with the response rate,” Herrera told us. He refused to estimate how many of the respondents were found to be in violation, but in an April 11 message to reporters covering the issue, his spokesperson Matt Dorsey wrote, “Based on our investigation so far, we anticipate that the majority of these establishments will be required to pay money to compensate their workers.”

WHAT THE FIGURES SHOW

The Guardian contacted many of the restaurants that topped the OLSE list. Some wouldn’t respond, some said they’ve changed their policies since the controversy erupted, and some wouldn’t talk until after a settlement is announced — including the Mina Group. That seems to indicate they’re about to pay for past violations.

Nicole Kraft, who handles public relations for the Mina Group, responded to Guardian inquires by writing, “I wanted to let you know that Mina Group will soon be releasing a joint statement with the City Attorney’s office, which should answer many of your questions. We’ll be sure to send it your way ASAP.” [UPDATE 4/29: Mina Group settled its case for $83,617.]

Sources in the City Attorney’s Office say settlements with as many as 10 restaurants that admit clear violations of the HCSO could be announced in the next week or two, while another 10 or so have provided data showing they are not in violation. The rest are more complicated and could take weeks or months of investigations, which are being led by Deputy City Attorney Sarah Eisenberg.

“There are going to be some that are given a clean bill of health,” Herrera told us. Herrera also told us that his investigation is just getting started and that it will look at businesses that haven’t made required annual reports to the OLSE. “When we get to a place where we’re announcing settlements, we’ll have more to say,” he said when asked for details and dimensions of his investigation.

GGRA Executive Director Rob Black has maintained that the OLSE figures don’t accurately reflect whether businesses are in compliance because the reporting requirements are confusing. GGRA held a compliance workshop on April 17, and Black told us about 40 restaurateurs attended.

“It was very informative and we got really good feedback from the restaurants,” Black told us. “We had people saying, ‘knowing what I know now, we should redo my 2011 form because I did it wrong.”

Black was initially critical of Herrera’s focus on the restaurant industry, but told us last week, “He made a commitment that the process would be efficient and fair, and he’s lived up to that so far….I still believe that the majority [of violators] didn’t have a mal-intent…Many people on the list that was reported have done nothing wrong.”

Cheesecake Factory — which was seventh on last year’s OLSE list, allegedly taking in $159,242 more in surcharges than it spent on employee health care — insists that it is in compliance and expects the City Attorney’s Office to confirm that.

“We believe the City Attorney’s initial review was erroneous,” Richard J. Frings, the company’s vice president of compensation and benefits, told us. “We are in full compliance with HCSO. Our healthcare costs in San Francisco have far exceeded the surcharge that we have collected. Once the City Attorney’s office has an opportunity to review our filings, we believe this matter will be closed without any further action.” He refused to provide figures to support the assertions.

THE HSA PROBLEM

Most of the restaurants that have been accused of stiffing employees use health savings accounts, which health officials say is a far worse option than private health insurance or the city’s Healthy San Francisco plan, which was created in conjunction with HCSO. Federal law bars cities from prescribing how health benefits are delivered.

San Francisco’s restaurant industry has always been hostile to the HCSO’s employer mandate, with the Golden Gate Restaurant Association unsuccessfully challenging the law all the way to the US Supreme Court. Controversy then erupted in 2011 with revelations (first in the Wall Street Journal, followed up by local media outlets) that some of the city’s most high-profile restaurants were shirking their responsibilities even as they charged diners 3 percent to 5 percent surcharges, sometimes essentially pocketing that money at the end of each year.

That verges on consumer fraud, but District Attorney George Gascon has refused to investigate, telling the Guardian and other papers that he was deferring to the OLSE and the City Attorney’s Office.

In 2011, a progressive-led majority on the Board of Supervisors passed legislation authored by Sup. David Campos to require that businesses keep the money they are required to spend on employee healthcare — which is currently $2.33 per employee-hour for large companies or $1.55 per employee-hours for businesses with less than 100 employees — for employees to use as needed.

But under aggressive lobbying by the GGRA and San Francisco Chamber of Commerce — which asserted the right of business owners to raid these funds, calling the set-aside a multi-million-dollar annual loss to the local economy — Mayor Ed Lee vetoed the measure. He later signed watered-down legislation requiring the money be set aside for two years, setting standards for letting employees know how to access the funds, and explicitly calling for all customer surcharges to remain in escrow accounts.

The OLSE, which also monitors compliance with the city’s paid sick leave and minimum wage laws, can only investigate businesses when an employee files a complaint. But then complaints trigger investigations that cover all of a given business’s employees, who are often compensated for past violations. To file a complaint, just write hcso@sfgov.org or call (415) 554-7892.

OLSE figures show the agency has investigated more than 100 complaints since 2008, resulting in $8.1 million in health care benefits provided to more than 6,400 employees and $244,000 in penalties paid to the city. Herrera’s office also reached a $320,000 settlement with the owners of Patxi’s Chicago Pizza in January, just before announcing his broader investigation.

“The vast majority of San Francisco employers have complied with their obligation to make health care expenditures pursuant to the HCSO,” OLSE Manager Donna Levitt told the Guardian. “With respect to the minority of businesses who fail to meet their obligations, the OLSE works tirelessly to ensure that workers receive the benefits to which they are entitled and that all businesses compete on a level playing field.”

Among the restaurants near the top of the OLSE list that did not respond to the Guardian inquires are Squat & Gobble, Wayfare Tavern, and Trinity Building Services.

“We are actually in complete compliance,” Larry Bouchard, manager of One Market restaurant, told us, explaining its inclusion on the OLSE list by saying, “It’s my understanding that we reported the wrong information.” He said the restaurant uses health savings accounts, but that they are widely used by employees, who get their expenditures repaid within three weeks.

Scott Carr, general manager of Boulevard — who sources say was one of the first restaurants to use the healthcare surcharges on customer bills, and whose parent company, Reroute LLC, was fifth on the OLSE list, underspending by $169,777 — told us the figures didn’t fully reflect the company’s spending on employee health care.

He wouldn’t say whether the company will be settling with Herrera for any past violations, but he did say that the restaurants decided to abandon health savings accounts in favor of health insurance policies for employees starting on Jan. 1. As he told us, “We feel we’ve made a positive step.”

Is there hope for California?

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Nothing cheers up an old tax-and-spend liberal than word that two major new sources of state revenue — enough to begin closing the gap in education funding — are at least on the table in Sacramento.

At the state Democratic Convention April 13, delegates approved a resolution calling for a split-roll property-tax system, removing commercial property from the protection of Prop. 13. There’s a group called Evolve working on this statewide, and Assemblymember Tom Ammiano has a bill that would end a loophole that allows corporations to buy and sell property without reassessment.

And now there’s also a campaign gearing up to establish an oil severance tax — something that every other oil-producing state already has. As oil and gas companies try to create a new oil rush in California, fracking their way to billions, the public ought to get a little something. After all, the oil below the ground belongs, in a sense, to all of us, not just to the companies that can stick a pipe into it.

Meanwhile, organized labor is attacking the Enterprise Zone Tax Credit, which is basically a corporate giveaway.

Not all of this is going to happen this year. Even with the overwhelming Democratic majorities in both houses, tax reform is tough; there are armies of lobbyists who will fight it all the way. And any ballot measure would need serious deep-pocket funding, since the California Chamber of Commerce, the real-estate industry and Big Oil would pour tens of millions in to defeating it.

Still: You have to start somewhere, and five years ago, none of this would have even been under discussion. So maybe there’s hope for California after all.

 

 

 

 

 

 

Mayor Lee’s trip to China raises questions of ethics and influence

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[UPDATED(x3)] Mayor Ed Lee barely had time to unpack from his recent political junket to Paris before he was off on his current trip to China – both of which were paid for and accompanied by some of his top political supporters and among the city’s most influential power brokers. No wonder Lee doesn’t have time to weigh in on Airbnb’s tax dodge, the condo conversion stalemate, or other important city issues.

Local good government advocate Charles Marsteller learned of the current China trip from Willie Brown’s column in Sunday’s San Francisco Chronicle, whose editors (including Editor Ward Bushee, who we’re still waiting to hear back from about this trip) consider it a “man about town” column immune from conflict-of-interest policies that normally require journalists to disclose who is paying them on the side.

“I’m here with Mayor Ed Lee for my seventh official visit,” Brown cheerfully wrote, although readers were left to wonder just what official business Brown might be conducting with our mayor and his entourage. So, being an expert on political disclosure laws, Marsteller went down to the Ethics Commission to pull the Form SFEC-3.216(d) that state law requires elected officials to file before leaving on trips paid for by outside interests.

But it wasn’t there, so Marsteller filed an official complaint with the commission, telling us, “I did so to impress upon our Elected and other City Officials the need to properly report gifts in a timely way and in the manner as called for by State law and on the forms provided by the SF Ethics Commission.” 

When we contacted mayoral Press Secretary Christine Falvey, she forwarded us a copy of the form that should have been filed before the trip and told us, “I’m not going to answer the question about why we failed to file the appropriate forms with the Ethics Commission, as we worked closely with the City Attorney’s office to exceed reporting requirements by all appropriate deadlines.” [UPDATE: The time stamp on the form indicated it was filed on May 25, before the trip, even though it wasn’t publicly available at the Ethics Commission office when Marsteller went down to look for it].

The form indicates that Lee’s portion of the trip was paid for by the San Francisco Chinese Chamber of Commerce, whose influential leader Rose Pak conspired with Brown to get Lee appointed mayor more than two years ago. This is also the same Rose Pak who was admonished by the state’s Fair Political Practices Commission for illegally funding another political junket to China in 2009 with Sups. David Chiu and Eric Mar and then-Sup. Carmen Chu, who Lee appointed as Assessor earlier this year.

Those officials were forced to repay the expenses after the FPPC found that Pak, that time acting under the auspices of the Chinese New Year Festival Committee, was not allowed to make gifts exceeding $420 per official that year. “Please be advised that since the Chinese New Year Festival Committee is not an organization that falls under Section 501(c)(3) of the Internal Revenue Code, no public official may accept gifts of any type from this organization valued in excess of the applicable limit,” FPPC counsel Zachary Norton wrote in an Aug. 22, 2011 enforcement letter to Pak.

In other words, because this committee and “other 501(c)(6) chamber of commerce organization[s]” are in the business of actively lobbying top elected officials for favorable policies, rulings, and projects, they are barred by ethics law from giving them the gifts of big overseas political junkets. As Marsteller noted in his complaint letter, violations are punishable by fines of $5,000 per violation, or if they are “willful violations of the law” – which doing the same thing you were sanctioned for just two years ago certainly might be considered – the criminal penalties are $10,000 per violation or up to a year in jail.

Mayor Lee’s portion of the trip cost the Chamber $11,970, according to the form. But this time, to get around the FPPC restrictions, Pak seems to have passed the hat among various business elites to fund the trip. The mayor’s form shows that 41 people paid up to the current gift limit of $440 “to defray the cost of the mayor’s trip.”

They include Pak, Brown, four people from Kwan Wo Construction, three from American Pacific International Capital, two each from Boyett Construction, Young Electric, and Bel Builders, Harbor View Holdings Director Gorretti Lo Lui, and SF Immigration Rights Commissioner Sonya Molodetskaya – most of whom were also part of the trip’s 43-member delegation.

Among others who tagged along for the trip are Public Works Director Mohammed Nuru (who has a history of political corruption under Mayors Brown and Newsom and no clear business being on a Chinese trade delegation, but who doesn’t love a free trip?!), Kofi Bonner from Lennar Home Builders, Harlan Kelly with the SFPUC, Jay Xu with the Asian Art Museum, the wives of Lee and Bonner, Kandace Bender with San Francisco International Airport, and Mark Chandler with the Mayor’s Office of International Trade and Commerce.

It’s not clear who paid for those other public officials or even what they were doing there. [UPDATE: Department of Public Works spokesperson Rachel Gordon told us that Nuru paid for the trip himself, but that he’ll be studying China’s instrastructure, from its separated bikesways to greening of public rights-of-way, as well as meeting with Chinese businesses involved in the redevelopment of Hunter’s Point. “He’s been looking at a lot of the infrastructure in China,” Gordon said. “I expect a dozen if not more ideas when he returns.”] Then again, it also wasn’t clear why venture capitalist Ron Conway – Lee’s top campaign fundraiser and possible reason for publicly subsidizing big tech companies, including many that Conway funds – joined and helped sponsor Lee’s recent trip to Paris. This is just how business gets done in San Francisco.

“Willie Brown is the former Mayor of San Francisco,” Falvey told us when we asked why Brown was on the trip and what its purpose was. “The purpose of the trip is to promote San Francisco, its local manufacturing, cultural exchanges, he is signing an MOU and meeting with high level, new Chinese government officials.”

[UPDATE 4/5: Marsteller has withdrawn his complaint from the Ethics Commission alleging the mayor’s form wasn’t filed on time, but he and another citizen have filed separate complaints with the FPPC alleging the trip and its funding mechanism may violate the agency’s 2011 ruling against Pak.]

Just ignore the Chamber of Commerce

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The Chronicle made a big deal of the fact that the Chamber of Commerce has a “21-point advocacy agenda” that “could weaken” the city’s “boundry pushing legislation and pro-labor policies.”

But really, nobody should even care.

The Chamber’s been pretty irrelevant to local politics for years now, and there’s no way six members of the Board of Supervisors are going to take the backward-thinking group up on its efforts to contract out city services and slow down cutting-edge proposals.

Actually, most of the “21-point agenda” is pretty tame. The Chamber, for example, wants to “Work with city government and advocacy groups to improve the ability of residents and visitors to move efficiently around the City by car, transit, bike and taxis.” And it hopes to “Continue to promote San Francisco’s small businesses through formulating favorable public policies and providing ample networking opportunities.” Wow. Hold the front page.

As for the things that might actually matter, forget it. Contracting out comes up almost every year at budget time; every year, a unified labor community shoots it down. This year will be the same. And nobody’s going to get City Attorney Dennis Herrera to release a public analysis of every piece of legislation before it’s approved.

Herrera’s better than his predecessors, by far, but he’s a lawyer, and lawyers don’t like to share with anyone the advice they give their clients. I often wish Herrera’s office would release more than it does, but unless the supervisors declare that they no longer want confidential advice from their attorney (which has its charm, to be sure, but also some real downsides) then the current policy will continue. Herrera will privately tell board members that there might be legal risks to some of their bills; the elected supervisors will decide whether to take those risks or not.

While I’m always an advocate of open government, the city attorney is not the Supreme Court. In the really bad old days, a city attorney named George Agnost used to routinely shut down progressive legislation by announcing that it was unconstitutional, leaving even conservative members of the board to denounce him. When the supes pass something, it’s a presumptively valid law. If you don’t like it, you can sue. The courts — not the city attorney — decide what’s legal and what isn’t.

And I have no idea where the Chamber’s Jim Lazarus came up with this:

But prior to Herrera and his predecessor, Louise Renne, city attorneys regularly issued public opinions, said Lazarus, a deputy city attorney in the 1970s who lost to Herrera in the 2001 election.

That’s completely untrue. I know; when Agnost was city attorney (in the 1970s and early 1980s) I tried constantly to get copies of his legal opinions. The vast majority were never released. That office was so secretive the city attorney wouldn’t even tell you his name if it wasn’t written on the door. When I pushed the issue, Agnost told me that copies of every non-confidential opinion he’d ever written were available at the public library. I went there. There were exactly three opinions on file, all of them noncontroversial and unrelated to any pending legislation.

Look, we all know that Gavin Newsom pushed the boundries of law when he approved same-sex marriages. But the California Supreme Court, faced with San Francisco’s civic disobedience, changed the law and said marriage was a basic right. And the US Supreme Court is about to do the same thing. Is the Chamber arguing that Newsom was wrong?

The Chamber is yesterday’s news. I don’t even know why we pay attention any more.

 

 

 

Plan C, and the C stands for Condo conversions

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No politically savvy San Franciscan has ever really bought the rhetoric espoused by the so-called “moderate” political action group Plan C that it’s all about finding middle ground between what its website calls “a ‘downtown’ machine, and a far-left, dogmatic, so-called ‘progressive’ machine.” As if that unbalanced labeling wasn’t enough of a indicator, the fact that its funding comes from all the biggest cogs in the downtown machine should be.

But now, as the group’s members aggressively work to open the flood gates on converting San Francisco’s rent-controlled apartments into privately controlled condominiums, it’s become more clear than ever that the C stands for Condo and that the financially motivated group is moving the agenda of the real-estate and investment interests that dominate its Board of Directors.

City Hall sources connected to the ongoing meetings that Sups. David Chiu and Mark Farrell have been holding with stakeholders on the controversial condo lottery bypass legislation sponsored by Farrell and Sup. Scott Wiener say there were indications of possible compromise that came out of the first mediation meeting.

That one primarily involved the tenant advocates who have led the charge against the legislation and the representatives for tenancy-in-common owners seeking to buy a bypass to the city’s condo conversion lottery that only allows 200 new condos per year. There were whispers that came from that meeting of a compromise that would allow a one-time bypass in exchange for shutting down the lottery for several years, or indexing it to the construction of new housing for low-income San Franciscans.

Since then, the sources say, Plan C and their partners in the real-estate industry have dominated the meetings with their dogmatic advocacy for indefinitely allowing the maximum number of condo conversions. Despite public statements by Farrell and Wiener that they just want to clear out some backlog without encouraging more landlords to convert apartments to TICs in the future, Plan C just wants to feed more affordable apartments into the expensive real estate market.

Some basic research on the group and its Board of Directors seems to show that this position is about financial self-interest rather than values or ideology.

Plan C Co-Chair Steve Adams is a regional manager for Sterling Bank & Trust, which has consistently been one of the city’s top TIC lenders and which recently sponsored a forum encouraging more conversion of apartments, promising to increase its loan volume, and painting a rosy picture of the TIC financing market that belies Wiener’s claims that TIC owners can’t get financial relief and need the city’s intervention.

One of the key presenters at that symposium was TIC attorney Lyssa Paul, who is also a Plan C board member and someone who makes her living creating more TICs. Other members of the 12-member board who make their living in the real estate industry and benefit directly for TICs conversions are Amanda Jones and Brian Hecktman. Other bankers or investment managers on the board that benefit from the TIC business are Ashley Lyon and Bob Gain.

Co-Chair Mike Sullivan is a venture capital attorney who created Plan C in 2001 and used it to help then-Sup. Gavin Newsom sell his Care Not Cash homelessness plan and run for mayor. Randy Brasche is in software marketing and got involved in the issue being frustrated with the condo lottery and [[CORRECTION/DELETION: last year]] forming the San Francisco TIC Coalition.

Board member David Fix is [[CORRECTION/ADDITION: the former]] president of the Small Property Owners of San Francisco, so it’s possible that his interest is as much ideological as financial, particularly given his past public statements against rent control. That may also be the case with Baha Hariri, a principal at A&F Properties and the former political director of the downtown-funded-and-created Committee on Jobs.

Among the downtown players that fund Plan C, which was sitting on $73,872 in the bank as of the start of this year, are the Committee on Jobs, the San Francisco Association of Realtors, PG&E, San Francisco Apartment Association, Small Property Owners of San Francisco, Shorenstein Realty, the San Francisco Chamber of Commerce, and venture capitalist Ron Conway.

So Plan C appears to be little more than Plan A’s deceptive effort to push Plan Condo. BTW, I’ve been waiting more than 24 hours now to get a call back from the Plan C board, after leaving a message with its only paid administrator, Richard Magary, who told me Sullivan and his colleagues are all quite busy now. But I’ll be happy to update this post if and when I hear back.

2/22 UPDATE: Still no call back from Plan C, but Fix made a comment requesting the two minor corrections above. C’mon, Plan C, gimme a call, what are you so afraid of?

Herrera takes on restaurants that use bogus healthcare surcharges

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City Attorney Dennis Herrera fired a warning shot across the bow of San Francisco restaurants that use a customer surcharge ostensibly to pay for employee health care – while in reality, many restaurateurs simply pocket the money and offer substandard health care options to employees – over the weekend when his office announced a settlement with Patxi’s Chicago Pizza.

The tone of the press release announcing the $320,000 settlement was generally positive, with Patxi’s claiming it was an innocent error and Herrera praising the owner’s cooperation in an agreement that improves the health care coverage of Patxi’s employees, compensates employees for the error, and ensures all surcharges tacked onto customers’ bills go to employee health care. Yet Herrera also included a warning to other restaurants.

“But today’s settlement should send a strong message that San Francisco is serious about making sure that restaurants keep their promises to their customers about health care surcharges. I look forward to announcing a larger, more global effort in the coming days to address this issue, to make sure health care surcharge money goes to the workers rather than being pocketed by business owners,” Herrera said in the release, signaling an effort to resolve with civil enforcement something that the political system has failed to do.

This became a hugely contentious issue in 2011 when the Golden Gate Restaurant Association (GGRA) and San Francisco Chamber of Commerce aggressively opposed reform legislation by Sup. David Campos that would have required that all surcharges be spent on health care and prevented employers from raiding health savings accounts at the end of each year. Mayor Ed Lee vetoed that measure but signed a watered down version by Sup. David Chiu – moves that Herrera criticized while running for mayor.

GGRA (whose Executive Director Rob Black didn’t return our call) aggressively fought the city’s Health Care Security Ordinance requirement that employers provide minimal health coverage to their workers, taking it all the way to the US Supreme Court. After losing that battle, many restaurants began adding a 3-5 percent surcharge of customers’ bills, even while offering employees what experts say is the worst form of health coverage, healthcare savings accounts, and often blocking their employees efforts to use them.

An investigative report in the Wall Street Journal showed how many San Francisco restaurants were essentially committing consumer fraud by pocketing the surcharges, elevating the issue, but the District Attorney’s Office has consistently refused to treat this as a criminal matter, despite calls for action by the Civil Grand Jury. So Herrera’s willingness to use civil sanctions, and his warning of more to come, was enthusiastically welcomed by Campos and other advocates.

“I’m very happy with what the City Attorney’s Office is doing,” Campos said. “It’s time for this kind of legal action.”

Campos had already pledged to reevaluate the issue later this year as data comes in about how the compromise regulations by Chiu and Lee are working, threatening to take it to the ballot if necessary and calling it an important issue for all San Franciscans.

“It’s not just about protecting workers and consumers, but also protecting businesses that play by the rules and comply with the law,” said Campos, noting that many restaurants have admirably refused to use the surcharge, shortchange their employees, or support GGRA’s litigation against the city. “It’s about fairness.”

The Chamber of Commerce becomes even more irrelevant

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It’s been years since anyone really took the San Francisco Chamber of Commerce seriously as a political force. The verdict from the techies came in long ago; they do their own thing with their own money. Small business never got much out of the Chamber, and most of those folks have their own organizations. Even the big-business agenda was taken over for a while by the Commitee on JOBS. Then there’s SFSOS, Plan C and a bunch of other pro-business and anti-regulation groups. Rose Pak and her allies have their own Chamber of Commerce. You rarely hear anyone at City Hall worried about what the Old Chamber says or is doing.

Steve Falk, the current director, has softened the Chamber’s image a bit and tried to be somewhat diplomatic. But now this organization is about to go backwards.

If what Matier and Ross report is accurate, a former City Hall aide, former failed candidate for supervisor, and current director of the Golden Gate Restaurant Association may be the new chamber director. Rob Black seems to have a line at the top job after Wade Rose, an executive with Catholic Healthcare West, dropped out of the running:

We’re told some of the chamber’s big dogs – like the brokerage house Charles Schwab and Pacific Gas and Electric Co. – weren’t all that enamored of the soft-glove approach that Rose was promising to bring to his dealings with the San Francisco Board of Supervisors.

That jobes with what I’ve been hearing from local politicos, who’ve been saying that there were two candidates for the job — one very good and one very bad. Looks like the very good candidate (good by Chamber standards, anyway) is gone.

I don’t know Rose, but I do know that even this more moderate board of supes isn’t likely to take direction from what many see as an antidiluvean organization, a moribund old white men’s club with a ridiculous out-of-date agenda. Putting a person in charge who actually sought to build bridges (and who, by the way, might not have gone all-out for the new CPMC hospital) might have edged the Chamber back toward some sort of relevance.

But no: If Black gets the job, prepare for the Chamber to stick to its old ways, whine about everything the board does that’s even remotely progressive, issue report cards that nobody cares about — and waste its members dues. Great move.

 

 

 

 

 

 

Disappearing poles

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steve@sfbg.com

Political dynamics on the Board of Supervisors moved into uncertain new territory this week with the inauguration of two new members -– London Breed and Norman Yee –- who break the mold in representing districts that have long been predictable embodiments of opposite ideological poles.

Breed and Yee are both native San Franciscans with deep roots in their respective districts, which they tapped to win hotly contested races against challengers who seemed more closely aligned with the progressive politics of Dist. 5 and the fiscally conservative bent of Dist. 7. Both tell the Guardian that they represent a new approach to politics that is less about ideology and more about compromise and representing the varied concerns of their diverse constituencies.

“I don’t see everything as a compromise, but I want to be sure we find compromises where we can and don’t let personalities get in the way,” said Yee, whose background working in education and facilitating deals as a school board member belies District 7’s history of being represented by firebrand opponents of the progressive movement.

Some of the strongest champions of the pro-tenant, anti-corporate progressive agenda have come from the Haight and Dist. 5, a role that Breed has no intention of playing. “When you talk about the progressives of San Francisco, I don’t know that I fit in that category,” Breed told us. “I’m a consensus builder. I want to get along with people to get what I want.”

Yet what Breed says she wants are housing policies that protect renters and prevent the exodus of African-Americans, and development standards that preserve the traditional character of neighborhoods against corporate homogenization. “I don’t see the difference between my causes and progressive causes,” she said, claiming a strong independence from some of the monied interests that supported her campaign.

We spoke a few days before the Jan. 8 vote for board president (which was scheduled after Guardian press time, and which you can read about at the SFBG.com Politics blog). Neither Yee nor Breed would tip their hands about who they planned to support -– the first potential indication of their willingness to buck their districts’ ideological leanings.

Breed had raised some progressive eyebrows by telling the Guardian and others that she admired moderate Sup. Scott Wiener and would support him for president, but she had backtracked on that by the time we spoke on Jan. 5, telling us, “I’m going into this with an open mind.

“I’m waiting on my colleagues to decide who has the most votes,” Breed said, ing a candid take on valuing compromise over conflict. “I really would like to see us walk into this all together.”

Yee had similar comments. “They’re all competent people and can be leaders, it just depends on where they want to lead us,” he said. “I value people who can work with anyone and see themselves as facilitators more than as dictators.”

Both Breed and Yee come from humble roots that they say give them a good understanding of the needs of the city’s have-nots. Breed was raised in the public housing projects of the Western Addition, an experience that makes her want to solve the current dysfunction in the San Francisco Housing Authority.

“I can’t tell you what needs to be done, but I can tell you something is wrong,” Breed told us. “My goal is to get to the bottom of it and be extremely aggressive about it.”

Yee grew up in Chinatown, his father an immigrant who worked as a janitor, his mother a garment worker. They later lived in the Sunset and the Richmond, and Yee moved into his district’s Westwood Park neighborhood 26 years ago.

When Yee was eight years old, the family saved enough money to open a grocery store at 15th and Noe, and he said that he basically ran the store in his teen years while his father continued working another job.

That was where Yee developed his deep appreciation for the role that small, neighborhood-serving businesses play in San Francisco. In an era before credit cards, he would offer credit lines to local customers struggling to make ends meet; that experience showed him how stores like his family’s were essential parts of the city’s social and economic fabric.

“That’s why I value small businesses,” Yee said, calling that his top focus as a supervisor. “They’re going to have a bigger voice now.”

Yee draws a clear distinction between the interests of small business and that of the larger corporations that dominate the powerful San Francisco Chamber of Commerce. Asked where he might have placed on the Chamber’s recent scorecard ranking supervisors’ votes — where Yee’s predecessor, Sean Elsbernd, got the highest marks — Yee said, “Probably not on their A list. They are just one entity in San Francisco and I’m not going to be judged just by them.”

At 63 years old, Yee is by far the oldest member of the youngest Board of Supervisors in recent memory, while Breed, at 38, is closer to the current average. Yee hopes his age and experience will help him forge compromises among all the supervisors.

“People draw their lines, but I try to listen to people and see where their lines are,” Yee said. “It’s a balancing act, but at the same time, there’s things I’ve been working on all my life, like education and safety net issues, and this district does care about those things. At the same time, they care about their homes. Are these issues in conflict? I don’t think they have to be.”

Will narrow business interests continue to dominate SF’s political agenda?

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Will the narrow, deceptive, and disempowering “jobs” rhetoric of the last two years continue to dominate San Francisco politics in 2013? Or can San Franciscans find the will and organizing ability to create a broader political agenda that includes livability, sustainability, and affordability?

If it’s up to the San Francisco Chamber of Commerce – whose perspective has been aired in both the Examiner and Chronicle over the last two days – private sector profits will continue to be our only metric of civic success.

Just take a look at the “Pinkslips and Paychecks Scorecard” that the Chamber released yesterday, rating members of the Board of Supervisors based on a series of 16 votes for tax cuts and public subsidies for businesses, approvals of projects serving the rich, rollbacks of government regulations, business surcharges on consumers, maintaining PG&E’s dirty energy monopoly, and blocking an expansion of developer fees to improve Muni.

That aggressive neoliberal agenda, which is shared by Mayor Ed Lee and his big corporate backers, was reinforced by Chamber VP Jim Lazarus in an op-ed in today’s Examiner. Ignoring the rising housing and other living costs that plague the average San Francisco, Lazarus uses hopeful language about how we’re all “poised for success in 2013,” burying the Chamber’s aggressive and exclusive agenda in the subtext.

At the top of his agenda are: “Approval of the California Pacific Medical Center rebuild, reforming San Francisco’s California Environmental Quality Act appeals process, and rule-making for the upcoming gross-receipts tax.” In other words, let CPMC have what it wants, make it more difficult to challenge developers on environmental grounds, and ensure business taxes remain as low as possible.

And to ensure supervisors get the message, he closes by noting that business leaders are “energized and ready” to push their agenda with tools such as the Alliance for Jobs and Sustainable Growth, which waged some of the nastiest and most deceptive political attack ads on progressive candidates in the last election cycle.

The progressive movement of San Francisco has its problems and issues, including a recently widening schism between environmental and transportation activists on one side and the nonprofit housing and social justice faction on the other. And in the current economic and political climate, both sides too often find themselves partnering with corporate and neoliberal interests to get things done.

But now, more than ever, San Francisco needs to broaden into political dialogue, and that means a reconstitution and expansion of its progressive movement. That’s something that the Guardian has long focused on facilitating and publicizing – something that will be my personal focus as well – and we have some idea percolating that we’ll discuss in the coming weeks and months.

Then maybe all San Franciscans can be poised for success in 2013 and beyond.

Realtors and tech spending big to flip the Board of Supervisors

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Wealthy interests aligned with Mayor Ed Lee, the real estate industry, big tech companies, and other downtown groups are spending unprecedented sums of money in this election trying to flip the balance of power on the Board of Supervisors, with most of it going to support supervisorial candidates David Lee in D1 and, to a lesser degree, London Breed in D5.

The latest campaign finance statements, which were due yesterday, show Lee benefiting from more than $250,000 in “independent expenditures” from just two groups: the Alliance for Jobs and Sustainable Growth PAC, which got its biggest support from tech titans Mark Benioff and Ron Conway; and the Coalition for Responsible Growth, funded by the San Francisco Association of Realtors.

Lee’s campaign has also directly spent another nearly $250,000 on its race to unseat incumbent Sup. Eric Mar – bringing total expenditures on his behalf to more than $500,000, an unheard-of amount for a district election. Mar has spent $136,000 and has $24,100 in the bank, and he is benefiting from another $125,000 that San Francisco Labor Council unions have raised on his behalf.

Breed has benefited from more than $40,000 in spending on her behalf by the two groups. Her campaign is also leading the fundraising field in her district, spending about $150,000 so far and sitting on more than $93,000 in the bank for a strong final push.

Incumbent D5 Sup. Christina Olague has done well in fundraising, but the reports seem to indicate that her campaign hasn’t managed its resources well and could be in trouble in the final leg. She has just $13,369 in the bank and nearly $70,000 in unpaid campaign debts, mostly to her controversial consultant Enrique Pearce’s firm.

Slow-and-steady D5 candidates John Rizzo and Thea Selby seem to have enough in the bank ($20,000 and $33,000 respectively) for a decent final push, while Selby also got a $10,000 boost from the the Alliance, which could be a mixed blessing in that progressive district. Julian Davis still has more than $18,000 in the bank, defying the progressive groups and politicians who have pulled their endorsements and pledging to finish strong.

In District 7, both FX Crowley and Michael Garcia have posted huge fundraising numbers, each spending around $22,000 this year, but Crowley has the fiscal edge going into the final stretch with $84,443 in the bank compared to Garcia’s less than $34,000. But progressive favorite Norman Yee is right in the thick of the race as well, spending $130,000 this year and having more than $63,000 in the bank.

The following is a detailed look at the numbers (we didn’t do Districts 3, 9, and 11, where the incumbents aren’t facing serious or well-funded challenges) for the biggest races:

 

Independent Expenditures

 

Alliance for Jobs and Sustainable Growth PAC

The downtown-oriented group is run by notorious campaign attorney Jim Sutton. It has raised $447,500 this year, including $225,000 in this reporting period (Oct. 1 to Oct. 20).

It has spent $107,808 this period and $342,248 this reporting period. It has $243,599 in the bank and $105,334 in outstanding debt.

Donors include: Salesforce CEO Mark Benioff ($100,000), venture capitalist Ron Conway ($35,000), San Francisco Police Officers Association ($25,000), Healthplus Share Services out of Walnut Creek ($20,000), Committee on Jobs ($47,500), and Operating Engineers Local 3 ($10,000)

The Alliance has spent $143,763 this year, including $16,921 in this reporting period, supporting D1 supervisorial candidate David Lee and attacking his opponent Eric Mar; and $10,205 each in support of D5 candidates Thea Selby and London Breed.

 

Coalition for Sensible Growth (with major funding by the SF Association of Realtors)

Raised nothing this reporting period but $225,000 this year.

Spent $75,636 this period and $287,569 this year. Has $170,744 in the bank and $152,000 in outstand debts.

It has spent $101,267 supporting D1 candidate David Lee, $26,405 support of David Chiu in D3, $2,739 each supporting FX Crowley and Michael Garcia in D7, $12,837 opposing Norman Yee in D7, $29,357 backing London Breed in D5, and $20,615 promoting Prop. C (the Housing Trust Fund).

The San Francisco Labor Council Labor & Neighbor PAC has raised $84,563 for its various member unions and spent $93,539 this year on general get-out-the-vote efforts.

The Labor Council also supports three Teachers, Nurses and Neighbors groups supporting Eric Mar in D1 (raising $125,000 and spending $85,437), FX Crowley in D7 (raising $50,000 and spending $40,581), and Christina Olague in D5 (raising $15,000 and spending $15,231)

 

Supervisorial Races:

District 1

Eric Mar

Raised $18,270 this period, $135,923 this year, and got no public finances this period.

He has spend $61,499 this period, $187,409 this year, and has $24,180 in the bank with no debt.

Donors include: Sup. David Chiu ($250), board aides Judson True ($100) and Jeremy Pollock ($100), redevelopment attorney James Morales ($200), developer Jack Hu ($500), engineer Arash Guity ($500), community organizer James Tracy ($200), Lisa Feldstein ($250), Marc Salomon ($125), Petra DeJesus ($300), and Gabriel Haaland ($200).

David Lee

Raised $4,174 this period, $140,305 this year, and no public financing matches this period.

He has spent $245,647 this year and $55,838 this period. He has $5,871 in debts and $26,892 in the bank.

Donors include the building trades union ($500), property manager Andrew Hugh Smith ($500), Wells Fargo manager Alfred Pedrozo ($200), and SPO Advisory Corp. partner William Oberndorf ($500).

District 5

John Rizzo

Raised $5,304 this period (10/1-10/20), $29,860 this year, and $14,248 in public financing

He has $19,813 in the bank

Donors are mostly progressive and environmental activists: attorney Paul Melbostad $500), Hene Kelly ($100), Bernie Choden ($100), Dennis Antenore ($500), Clean Water Action’s Jennifer Clary ($150), Matt Dorsey ($150), Arthur Feinstein ($350), Jane Morrison ($200), and Aaron Peskin ($150).

 

Julian Davis

Raised $8,383 this period, $38,953 YTD, and got $16,860 in public financing in this period (and $29,510 in the 7/1-9/30 period).

He has $67,530 in YTD expenses, $18,293 in the bank, and $500 in debts.

Some donors: Aaron Peskin ($500), John Dunbar ($500), Heather Box ($100), Jim Siegel ($250), Jeremy Pollock ($200), BayView publisher Willie Ratcliff ($174), and Burning Man board member Marian Goodell ($400). Peskin and Dunbar both say they made those donations early in the campaign, before Davis was accused of groping a woman and lost most of his progressive endorsements.

 

London Breed

Raised $15,959 this period, $128,009 YTD, got $95,664 in public financing this period.

Total YTD expenditures of $150,596 and has $93,093 in the bank

Donors include: Susie Buell ($500), CCSF Board member Natalie Berg ($250), Miguel Bustos ($500), PG&E spokesperson and DCCC Chair Mary Jung ($250), SF Chamber of Commerce Vice President Jim Lazarus ($100), Realtor Matthew Lombard ($500), real estate investor Susan Lowenberg ($500), Municipal Executives Association of SF ($500), Carmen Policy ($500), SF Apartment Association ($500), SF’s building trades PAC ($500), and Sam Singer ($500).

 

Christina Olague

Raised $7,339 this period, $123,474 YTD, and got $39,770 in public financing this period.

Has spent $54,558 this period, $199,419 this year, has $13,367 in the bank, and has $69,312 in outstanding debt.

Donors include: former Mayor Art Agnos ($500), California Nurses Association PAC ($500), a NUHW political committee ($500), the operating engineers ($500) and electrical workers ($500) union locals, Tenants Together attorney Dean Preston ($100), The Green Cross owner Kevin Reed ($500), SEIU-UHW PAC ($500), Alex Tourk ($500), United Educators of SF ($500), and United Taxicab Workers ($200).

Some expenses include controversial political consultant Enrique Pearce’s Left Coast Communications ($15,000), which documents show is still owed another $62,899 for literature, consulting, and postage.

 

Thea Selby

Raised $5,645 this period, $45,651 YTD, and got $6,540 in public financing this period.

Spent $29,402 this period, $67,300 this year, and has $33,519 in the bank.

Donors include:

David Chiu board aide Judson True ($100), One Kings Lane VP Jim Liefer ($500), SF Chamber’s Jim Lazarus ($100), Harrington’s Bar owner Michael Harrington ($200), and Arthur Swanson of Lightner Property Group ($400).

 

District 7

 

Norman Yee

Raised $8,270 this period and $85,460 this year and received $65,000 in public financing.

Spent $15,651 this period, $130,005 this year, and has $63,410 in the bank and no debt.

Donors include: Realtor John Whitehurst ($500), Bank of America manager Patti Law ($500), KJ Woods Construction VP Marie Woods ($500), and Iron Work Contractors owner Florence Kong ($500).

 

FX Crowley

Raised $5,350 this period, $163,108 this year, and another $25,155 through public financing.

He spent $76,528 this period, $218,441 this year, and has $84,443 in the bank and $7,291 in unpaid debt.

Donors include: Alliance for Jobs & Sustainable Growth attorney Vince Courtney ($250), Thomas Creedon ($300) and Mariann Costello ($250) of Scoma’s Restaurant, stagehands Richard Blakely ($100) and Thomas Cleary ($150), Municipal Executives Association of SF ($500), IBEW Local 1245 ($500), and SF Medical Society PAC ($350)

 

Michael Garcia

Raised $8,429 this period, $121,123 this year, and $18,140 through public financing.

He spent $45,484 this period, $222,580 this year, and has $33,936 in the bank.

Donors include: Coalition for Responsible Growth flak Zohreh Eftekhari ($500), contractor Brendan Fox ($500), consultant Sam Lauter of BMWL ($500), Stephanie Lauter ($500), consultant Sam Riordan ($500), and William Oberndorf ($500)