City Attorney Dennis Herrera

Editor’s Notes

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› tredmond@sfbg.com

Look, I get the gun thing. I started shooting a .22 rifle in third grade, and by the time I was 11 I had a gold National Rifle Association Sharpshooter medal on my wall. Even in my advanced, protogeriatric condition, I can still pop the logo on a Budweiser can at 50 feet; I did it two months ago, in upstate New York, with my nephew and namesake, who is a proud teenage redneck. Tim lives in a small town, wears camo, smokes the adults at paintball, and loves his firearms.

My brother, his dad, goes along with this reluctantly — in his household, there are very strict rules about gun use. The .22 and the .177 have trigger locks, and my brother keeps the only key in his pocket. The ammunition is locked up separately. And he has informed his son that anything you kill, you eat — which discourages any potshots at squirrels and birds. I can live with that.

I also have a friend in San Francisco who hunts, and I’m more than happy to go to his annual pig roast and consume the sweet, juicy, wonderful wild boar he pegged in Sonoma County.

So I get it. There are people who love target shooting, and since I was one of them many years ago, I understand. There are people who think it’s cool to go shoot a pig or a turkey or a duck and take it home for supper: since I think it’s one of the world’s great experiences to catch a bass or a trout and do the same thing, it’s hard to be critical.

But the United State Supreme Court decision last week wasn’t about my nephew’s .22 or my friend Rich’s hunting rifle. It was about whether cities can do anything remotely at all meaningful to keep 14-year-olds from shooting each other on the streets.

It’s about whether kids in Hunters Point and the Western Addition will live to graduate from high school. It’s about whether the desperate young people who are doing robberies in the Mission District and Bernal Heights will wind up shooting someone and spending the rest of their lives in prison over a bag of groceries and a hundred bucks. It’s about whether someone the age of my kindergarten daughter will take a bullet in the head one night and die from the crossfire while she’s asleep in bed.

Let’s face it: this is about handguns and assault rifles, about weapons that have very little use in hunting, that are rarely part of any sporting tradition, and that exist almost entirely for the purpose of killing other human beings.

The unnamed man who is suing — with the NRA’s money — to win the right to own a handgun in San Francisco public housing claims he needs a weapon to defend himself. I’ve been studying self-defense for 17 years now, and let me tell you a not-so-secret fact: guns are a terrible method of protection. If you own a gun in a city, the odds are far better that it will kill you or a loved one than that it will save your life. Guns don’t deter crime; they encourage crime.

And for my dear friends on the left who say that the Second Amendment protects us all from government repression, let me politely suggest that if the Marines invade San Francisco, the pistol in your attic won’t be much help.

City Attorney Dennis Herrera is fighting back on the NRA lawsuit, aggressively. He has to keep it up; this is madness.

City sues ExxonMobil

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440 Jefferson St. to Exxon: “Clean me!”

Man…city attorney Dennis Herrera is on a roll these days. Gay marriage out of the way, he’s now moved on to the largest corporation in the world. Hot.

The city is suing ExxonMobil for its “defiant refusal to address environmental damage caused by decades of disposal and release of hazardous petroleum products on property owned by the Port of San Francisco in the City’s Fisherman’s Wharf area,” according to a press release.

Mobil Oil operated a fueling facility at 440 Jefferson St. on Fisherman’s Wharf for 54 years. Documentation of leaks and spills from the site dates back to 1986, when a 1000-gallon underground fuel tank was removed. The company formally agreed to remediate the site in 1994. The city’s suit alleges they haven’t.

“The contamination is injurious to the environment, is offensive to the senses, and obstructs the free use, development and comfortable enjoyment of the city’s property,” states the 20-page complaint. [PDF]

You tell ‘em, Dennis. That area is long overdue for some comfortable enjoyment. The complaint outlines a tedious back and forth between the city, the Regional Water Quality Control Board, and ExxonMobil, on getting that shit cleaned up – all to no avail.

“There’s a whole history of broken promises,” said city attorney spokesperson Matt Dorsey. “It’s certainly within the means of ExxonMobil Corporation to remediate the environmental damage its responsible for.”

Currently worth $501.17 billion, the oil company may soon be reaping new profits as a result of no-bid Iraqi oil contracts to be granted to it, Shell, Chevron, and others, at the end of this month. (One under emphasized result of ousting Saddam Hussein is that a state-controlled resource is now open to the free market.)

Dorsey said of the relationship with ExxonMobil, “We had an agreement in 1994. I would leave it to ExxonMobil for the rationale on why it takes 14 years to clean up a site.”

A call to ExxonMobil seeking an answer to that question hasn’t been returned.

The company doesn’t have a great track record on cleaning up their messes or paying for them: they still haven’t coughed up the $2.5 billion they owe for the Valdez spill in Alaska.

They also continue to stand by the “we’ll believe it when we see it argument” when it comes to global warming. That is – when they’re not busy funding skeptics to deliberately obfuscate the truth of the matter.

Moth Spray stopped! Sterile moths, instead, in urban areas

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Visceral images, like the one posted above, helped build public awareness of and opposition to the aerial spraying of synthetic moth pheromones over urban areas like San Francisco.

The California Department of Agriculture and US Department of Agriculture just announced that they will be using sterile moths, and NOT aerially spraying pheromones, at least over URBAN areas as part of their Light Brown Apple Moth eradication program.

Spraying will proceed in non-urban areas, non-accessible by driving, such as national forests, CDFA Secretary AG Kawamura said.

Sterile releases of adult moths are expected either in late fall, or early in 2009, beginning with 500,000 adults sterile moths, and working up to 20 million a day, by 2011.

“This technology looks like it might be going to ramp up faster,” CDFA Secretary AG Kawamura said, stressing that he is still very convinced that aerial pheromones are a “remarkable tool,” and claiming to be, “pleased that we don’t have to go with an aerial application over urban areas, because we feel progress with sterile moths will fit in with our urban eradication program.”

Cindy Smith, Administrator of the USDA’s Animal and Plant Health Inspection Service (APHIS) repeated the position of USDA and CDFA concerning the Light Brown Apple Moth
“THis is a very serious pest. We are happy to have a wide variety of tools in our toolbox”.

Kawamura defined urban areas as residential areas, not faming areas, and included in his urban definition Monterey and Santa Cruz counties, where the aerial spraying program was initiated last summer.

Pheromone technology will continue to be used on twist ties and plans to release parasitic wasps go forward.

“When we started in July/August 2007, we had made such progress from days of malathion, but the challenge of doing public outreach,” said CDFA Secretary Kawamura, the closest he came to admitting that the reason for abruptly abandoning the aerial pheromone spraying program lies with the tremendous public uproar that ensued.

A planned environmental impact report of the LBAM eradication plan will go ahead, Kawamura confirmed.

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Thousands of sterile moths will be released across California to create mating confusion and cause a population crash of the moth which continues to be classified by state and federal agencies as a worrisom invasive pest.

The pilot sterile moth program will be dictated by a trapping program that shows where the highest or expanding populations are found, Kawamura said.

As for concerns that all synthetic pheromones could pose health concerns, even on twist ties in trees, Kawamura begged, “Please listen to public health officers about safety of pheromone twist ties. “If this moth gets established, the burden of having to deal with it…we’re just trying to keep the damage out, by using the best and safest environmental tools available.”

San Francisco City Attorney Dennis Herrera, whose office has been working with public law offices and community organizations throughout the Bay Area to monitor the CDFA’s plans with respect to the program, issued a statement in response, saying “The state’s aerial spray program has been a dead man walking since April, when a Santa Cruz Superior Court ruled that an environmental impact report was required to fully assess potential human health risks. So, I’m glad CDFA appears to have accepted the inevitable. At the same time, I intend to continue to work closely with other public law offices throughout the Bay Area to monitor LBAM eradication plans in the event legal action becomes necessary to protect public health and safety.”

There are memos posted on the California Department of Agriculture’s website, sent from CDFA to Gov. Armold Schwarzenegger, and from Arnie to AGK, (CDFA Secretary AG Kawamura) being mutually supportive about the decision to stop the spray and start the release of sterile moths, instead, memos that confirm insider rumors that Arnie privately conceded that the moth spraying program was a no-go, at the beginning of this week.

A heart once nourished

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› gwschulz@sfbg.com

Community court, every second Thursday at 10 a.m. Narcotics Anonymous on Wednesday. Apprenticeships for construction workers, Monday, bright and early.

The ancient letter board just inside the entrance of the Ella Hill Hutch Community Center tells much of the story of this neighborhood institution. Since 1981 it’s been a crucial hub for the Western Addition, a mostly level stretch of terrain west of downtown that rivals the Mission District and Bayview–Hunters Point as the source of the most despair from senseless gun violence.

For decades Ella Hill was a safe haven, a place where kids and seniors felt comfortable, where people could learn and teach and talk and work together, a little oasis in the world of urban hurt.

A placard affixed to one wall of the entryway honors Thurgood Marshall, the nation’s first African American US Supreme Court justice. In a small office nearby, a tutor assists a young girl with the multiplication table. Elsewhere, a list of rules forbids profanity, play-fighting, and put-downs.

There’s also a poster of Ella Hill Hutch, the first black woman elected to San Francisco’s Board of Supervisors, where she served from 1978-81.

But in 2006, a man was murdered during daylight hours in the center’s gymnasium before dozens of witnesses. That slaying was one of at least five brutal incidents that took place in the shadow of Ella Hill between 2006 and 2007; three more murders occurred within blocks. Many remain open cases today.

And now the center is having serious problems — troubles that reflect those of the city’s African American population, which has been plagued by violence and socioeconomic changes that are closing opportunities and forcing longtime residents out the city.

Several census tracts in the neighborhood that at one time contained between 3,000 and 6,000 black residents are down to 1,000 or far less, according to a San Francisco State University study commissioned by the city last year. The report showed that between 1995 and 2000 San Francisco lost more of its black population than 18 other major US cities.

Ironically, the city is now preparing to close the final dark chapter on 50 years of federally subsidized redevelopment in the Western Addition. But the displacement that the bulldozers set off half a century ago continues today, unabated.

That exodus has compounded structural problems at the center just when its remaining clients need it most. The nonprofit late last year underwent an organizational shake up and brief takeover by the Mayor’s Office to save it from imminent financial collapse. The center’s executive director of two years, George Smith III, was fired with little public explanation last year, and a permanent head was named only recently.

As with many aspects of this troubled community, it was unaddressed violence that fed the fire. Simply subsisting in the heart of a violent neighborhood was strain enough for Ella Hill. But suffering an attack from within seemed too much to bear for an institution some call "San Francisco’s Black City Hall."

The 2006 killing took one man’s life, but Ella Hill itself — still facing an uncertain financial future — felt the searing rounds too. Now some wonder if the nonprofit can survive the very violence and poverty it was created to help end in a neighborhood that’s changing forever.

In Ella Hill’s noisy gymnasium at the building’s east end, two teams of middle schoolers practice basketball.

"My job is to be in the best position to box him out for a rebound," their coach says as they crowd around the free throw line.

The kids are radiant and attentive now. But from this same basketball court on April 27, 2006, the Western Addition briefly edged ahead of the rest of the city in extreme bloodshed.

Donte White, 22, was working part-time at the center. As he supervised a basketball game, two unidentified males entered Ella Hill. One brandished a firearm and shot White at least eight times in the face, neck, and chest as several kids looked on in utter horror. Among them was White’s young daughter.

Police arrested 25-year-old Esau Ferdinand for the attack five months after White’s murder. But within two weeks prosecutors decided they could no longer hold him and declined to press charges when a key witness disappeared on the eve of grand jury proceedings.

Even with other witnesses filling the gym, police gathered few additional leads, an all-too-common story in a neighborhood where residents often prefer to avoid both law enforcement and vengeful criminal suspects.

The center installed cameras and an alarm. A buzzer was placed on the front door. But the new security measures cut against Ella Hill’s image as a demilitarized zone, and the center remains shaken by White’s murder. Some parents began barring their children from going there.

"Can you imagine something like that, someone coming into a rec center in the middle of the day with a firearm and shooting and killing a guy?" asks Deven Richardson, who resigned from Ella Hill’s board in 2007 to focus on his real estate business. "That really set us back big time in terms of morale. It really was a dark moment for the center."

Sup. Ross Mirkarimi, whose district includes Ella Hill, says that after he took office in 2004, he learned that the police weren’t stationed at the center during prime hours and had never created a strategy for attaching themselves to the center the way they had at other safe-haven institutions in the city, like schools. He told us he’s had to "really work" to get the nearby Northern Station more integrated into Ella Hill.

"Before the murder of Donte White, there had also been a series of incidences inside Ella Hill Hutch," Mirkarimi said over drinks at a Hayes Valley bar. "Nothing that resulted in anybody getting killed, but certainly enough indicators that really should have been taken more seriously by the mayor."

In June 2006, shortly after White’s shooting, the San Francisco Police Commission and the Board of Supervisors held a tense public meeting at the center. Residents, enraged over the wave of violence that summer in the Western Addition, shouted down public officials, including Chief Heather Fong, who was forced to cut short a presentation on the city’s crime rate.

That same month, the supervisors put a measure on the ballot to allocate $30 million over three years for violence-prevention efforts like ex-offender services and witness relocation. But Mayor Gavin Newsom, following a policy of fortifying law enforcement over community-based alternatives, opposed the measure because it excluded the police department. Prop. A, designed to finance groups like Ella Hill with connections to the neighborhood that the police will never have, lost by less than a single percentage point.

Meanwhile, four homicides in the neighborhood that year joined frequent anarchic shootouts in the Western Addition, including many that never made headlines because no one was killed. The fatalities led to promises by City Hall that the area would be saturated with improved security, including additional security cameras that have mostly proved useless in helping the police solve violent crimes.

On June 3, 2006, 19-year-old Antoine Green was standing on McAllister Street near Ella Hill early in the morning when he was shot to death in the head and back. On Aug. 16, 38-year-old Johnny Jackson’s chest was filled with bullets as he sat in the front seat of a Honda Passport on Turk Street not far behind Ella Hill. A woman next to him in the car suffered a critical gunshot wound to the head.

Two more killings occurred further east at Larch Way, a popular location for murder in the neighborhood.

Burnett "Booski" Raven, a 32-year-old alleged member of the Eddy Rock street gang, was found bleeding at 618 Larch Way early Oct. 7, his body laying halfway in the street and containing at least 10 gunshot wounds. On July 22, police found 23-year-old John Brown, another purported Eddy Rock member, wedged under a Chevy pickup truck, dead from up to seven gunshots.

Brown had reportedly survived two prior shootings, but the Western Addition’s cultural condemnation of "snitching" to police has so infected the neighborhood that he allegedly told police not to bother investigating either of the attacks.

Loïc Wacquant, a sociology professor at the University of California, Berkeley, says neighborhoods like the Western Addition that once contained stable black institutions — schools, churches, and community centers that glued residents together — have been overwhelmed by the rise of a white-collar, service-based economy, the decline of unions, and the withdrawal of meaningful social safety nets.

Cities have responded to the resulting marginalization with more police officers, more courts, and more prisons. But the failure of those institutions to cure rising violence "serves as the justification for [their] continued expansion," Wacquant quoted Michel Foucault, the famous late UC Berkeley sociologist, in the academic journal Thesis Eleven earlier this year.

The roots of the Western Addition’s tragedy go back to the early post-World War II era. In 1949, Congress enacted laws giving cities extraordinary powers to clear out land defined as "blighted." In San Francisco, that meant neighborhoods where low income people of color lived.

The Western Addition was devastated. Huge blocks of houses were bulldozed. Clubs, stores, restaurants — the heart of the black neighborhood — were wiped out. Many residents were forced out of the neighborhood and sometimes the city forever; others lost their property and their livelihoods (see "A half-century of lies," 3/21/2007).

By the 1970s, neighborhood activists were hoping that at the very least the Redevelopment Agency would pay for a recreation facility for kids. But city officials wouldn’t put up the money, recalls the Rev. Arnold Townsend, a longtime political fixture in the city and associate pastor of the Rhema Word Christian Fellowship.

Townsend said activist Mary Rogers — whom he calls "the greatest champion kids ever had in this community" and a famous critic of redevelopment — gave up on City Hall and went to Washington DC, where she sat in at a meeting that happened to include Patricia Harris, Secretary of the Department of Housing and Urban Development under President Jimmy Carter. Rogers, joined by a group of colleagues from San Francisco, bumped into Harris afterward.

"[Harris] shook Mary’s hand like politicians do, and Mary wouldn’t let her hand go until she had a meeting," Townsend said. "They were having a tug-of-war over her hand."

Rogers’ determination paid off, and enough political channels opened up that money for the center became available. Then-Mayor Dianne Feinstein cut the ribbon for the $2.3 million Ella Hill Hutch Community Center four months after the supervisor’s death, complete with outdoor seating for seniors, a gymnasium, tennis courts, and child-care facilities.

A young counselor named Leonard "Lefty" Gordon who worked at the Booker T. Washington Community Service Center, one of the city’s oldest black institutions — it was founded in 1919 on Presidio Avenue, where it remains today — was named executive director of Ella Hill three years later and led the center to wide acclaim for 17 years.

A recreation coordinator at Ella Hill started a reading program for young athletes after discovering that a local high school football star wasn’t aware he’d been named the city’s player of the year: the teenaged boy couldn’t read the newspaper to find out. Other programs for tutoring and job training targeting young and old residents were likewise started under Gordon.

Many of the people we interviewed recalled the "kitchen cabinet" meetings convened by Lefty Gordon at Ella Hill as among their fondest memories. Everyone from the "gangbangers to police" attended Gordon’s meetings, Townsend said, and made them a repository of complaints about what was happening in the neighborhood.

Alphonso Pines, a former Ella Hill board member and organizer for the Unite Here! Local 2 union, eagerly showed up at the meetings for months after attending 1995’s Million Man March in Washington.

"I hate to see brothers die, regardless of whether it’s at Ella Hill," Pines said of Donte White’s 2006 killing. "But that was personal for me, because that was the place where I had sat on the board for years. That was real shocking."

Lefty’s son, Greg Gordon, said that his legendary father — who died of a heart attack in May of 2000 — worked so hard for the center that he allowed his own health to deteriorate.

Most beneficiaries of Ella Hill’s social services now live in the southeast section of the 94115 ZIP code, roughly bordered by McAllister and Geary streets to the south and north, and Divisadero and Laguna streets to the west and east.

The majority of Ella Hill’s approximately $1.4 million annual budget comes from government sources, either through grants or nonprofit contracts.

Newsom, through his community development and housing offices, has given $860,000 over the past three years to Ella Hill to help job-ready applicants obtain construction work and other general employment in the neighborhood. The center launched its JOBZ program in 2006, targeting formerly incarcerated young adults and others with a "hard-to-employ" status.

Caseworkers must convince some participants to leave gangs, deal with outstanding warrants, pay back child support, expunge criminal records, or eliminate new offenses, all of which can exacerbate a desire to give up. Sometimes the center has to buy people alarm clocks.

"None of these other programs that are being funded in this community want to deal with the kinds of kids or people who come to Ella Hill…. [It] is the last stop for everybody," said London Breed, head of the African American Art and Culture Complex on Fulton Street and a Western Addition native. "That’s where people go who have no place else to go, which is why it’s so important."

Most nonprofits working for the city must regularly report their operational costs or show how program funds are being spent on graduation ceremonies and trips to university campuses. The required forms are mind-numbingly bureaucratic and reveal little about what a place like Ella Hill might face on a practical level each day. But last year, former executive director George Smith betrayed a crack in Ella Hill’s veneer.

"Once again violence has impacted the community with three incidents in close proximity to the complex this month alone," he wrote to the San Francisco Department of Children, Youth and Their Families, which supports the center with college preparation grants. "One of the victims was a young man scheduled to graduate from high school in June."

On May 25, 2007, 19-year-old Jamar Lake was leaving a store on Laguna and Eddy streets, northeast of Ella Hill, when a teen suspect opened fire on him. Paramedics were so worried about security in the neighborhood that they fled before attempting resuscitation, according to a report from the San Francisco Medical Examiner. Lake died at General Hospital that day.

Weeks later, a manic 12-hour long feud erupted between several gunmen on McAllister Street. Seven people were wounded during two daytime shootings that took place in the Friendship Village Apartments, across the street from Ella Hill.

Then in July, a suspect randomly and fatally stabbed 54-year-old Kenneth Taylor in the neck as he sat on a park bench near sundown at Turk and Fillmore streets, within easy view of the SFPD’s Northern Station. Police didn’t respond until Taylor stumbled to the sidewalk and collapsed; a witness had to flag down a patrol car.

Following the Lake shooting, the mayor and police department promised, as they had the year before, that foot patrols would be increased in the 193-unit Plaza East Housing Development and other public housing projects in the Western Addition.

But the city’s most visible response has bypassed Ella Hill — which has some street credibility — altogether. Instead, City Attorney Dennis Herrera went to court to get injunctions against street gangs in June 2007.

Herrera’s initial filing came days after the wild shootout on McAllister Street, but the timing was coincidental. The city attorney also had been preparing injunctions against gangs in the Mission and Bayview-Hunter’s Point for months. For the Western Addition, the city attorney noted a "recent rise in violent crimes perpetrated by the defendants," and asked that the members of three gangs be banned from associating with one another inside two "safety zones" marked along the contours of their respective territories, a 14-square-block area that straddles Fillmore Street and rests just north of Ella Hill.

"The conditions within the two safety zones have become particularly intolerable in 2007 as the deadly rivalry between the Uptown alliance and defendant Eddy Rock has intensified," Herrera’s office told the court. "In 2007 alone, this rivalry is the suspected cause of at least three homicides and numerous shootings within the two safety zones."

Some critics viewed barring people from congregating with one another a civil rights violation. And worse, they feared it would merely shove more African Americans and Latinos out of the Western Addition, which would benefit the city’s wealthiest white residents.

"All of this stuff about gang injunctions is a bunch of malarkey," said Franzo King, archbishop of the Saint John Coltrane African Orthodox Church on Fillmore Street. "You don’t really have gangs here…. [In San Francisco] they’re a big club."

Herrera nonetheless convinced a Superior Court judge to issue the injunctions after filing 1,200 pages of evidence arguing that the three "clubs," which include only about 65 people named by the city, are endless public nuisances and force organizations like Ella Hill to battle with them for the affections of Western Addition youth.

Police admit that the injunctions since last year have, in fact, led people to simply leave the neighborhood. Still, they insist the injunctions have reduced trouble in the Western Addition. The Knock Out Posse, for instance, is evaporating, they say.

Paris Moffett, a 30-year-old alleged Eddy Rock leader, told the Guardian in a separate story on the gang injunctions last November that he and others were organizing to quell violence in the neighborhood and would do so in defiance of the gang injunctions (see "Defying the injunction," 11/28/07).

But on the day that story ran, Moffett hampered his new cause when, according to a March 27 federal indictment, police arrested him in Novato for possessing a large quantity of crack and MDMA, as well as a Colt .45 semiautomatic.

After Lefty Gordon died, the center went through a couple of directors in relatively short order. Robert Hector, a second-in-command to Lefty Gordon, helmed the center briefly; he was replaced with George Smith III, who left in 2007.

Meanwhile, problems at Ella Hill grew.

"The seniors just stopped their participation," Anita Grier, a former Ella Hill board member who first ran for the San Francisco City College Board of Trustees in 1998 at Gordon’s encouragement, told us. "Things were never excellent, but they just got much worse once [Gordon] was no longer director."

The center, a standalone nonprofit, had long struggled financially in part because it relied so much on contracts and grants from the city rather than pursuing funds from private donors. Mirkarimi says Ella Hill’s structure is unlike any other community center in the city. Many other centers are directly maintained by the San Francisco Recreation and Park Department.

Contract revenue from one Ella Hill program, such as providing emergency shelter to the homeless, was often diverted to keep another on life support or to simply cover the center’s utility bills.

By early 2007, the center faced a financial catastrophe. Donald Frazier joined Ella Hill’s board as president in January 2007 and embarked on a reform effort to turn the center around. He commissioned what came to be a blistering audit that revealed the nonprofit owed over $200,000 in state and federal payroll taxes. As a result, the center faced $63,000 more in penalties and accrued interest.

Mirkarimi blames community leaders in his district for refusing to acknowledge a crisis at the center and for not turning to City Hall for help when Ella Hill appeared to be slowly rotting from the inside out.

The mayor’s staff, he adds, wanted to believe Ella Hill was working on its own and should’ve continued to do so because, despite its financial reliance on the city, it was technically an independent nonprofit. In reality, Mirkarimi said, "They were afraid to piss off black people, is what it comes down to. They were afraid to tell it like it is — that things weren’t working."

Sending delinquent invoices to the city, failing to institute reasonable accounting standards, and falling far behind on its payroll taxes all threatened the government contracts and grants that kept San Francisco’s Black City Hall afloat. By extension, the audit concluded, that meant Western Addition residents who relied on Ella Hill were "victimized" by the center’s improper use of its limited resources.

Aside from the audit, which Ella Hill instigated itself, there’s no indication in the records of agencies funding the center that any problems were occurring, which implies the city wasn’t paying attention.

"As far as I’m concerned," Mirkarimi said, "we had a renegade institution, and the only reason it wasn’t renegade in an illegal sense was because the lease allowed them to have a parallel governance structure. But it was renegade in the sense that the city neglected to supervise properly."

In November 2007, just after residents hijacked a chaotic board meeting with an extended public comment period, Frazier told the directors in closed session that the Redevelopment Agency was planning to restrict future funding for the center due to its management problems.

One month later, the mayor dispatched an aide, Dwayne Jones, along with redevelopment agency director Fred Blackwell, to a meeting at Ella Hill with an ultimatum. Jones told the assembled that new interim appointees would be taking over the center’s bank books, recreating its bylaws, and electing a new board and executive director. The old board would essentially be dissolved. According to observers at the meeting, Jones told them that if they resisted the plan, funds received by Ella Hill from various city agencies would be jeopardized, as would its low-cost lease of city property.

Two defiant board members viewed the move as a "hostile takeover" of a private nonprofit organization by the mayor and voted against it, but the rest of the board agreed to the restructuring. Mirkarimi says there was simply no alternative.

"Right now it needs to be shrunk to what it can do really well, instead of doing what they had to do in the last five years, an incremental sloppy way of programming," he said.

The interim board in April named a former Ella Hill employee and Park and Rec administrator, Howard Smith — unrelated to George Smith — to be the center’s new executive director. But after all the changes Ella Hill made to fix its leadership problems, there are no assurances the city won’t leave Ella Hill without the money it needs to keep the doors open next year.

It’s noon on a recent Friday and Ella Hill’s new executive director is scrambling to keep things together. An employee wants him to glance at a form. Another man wants to come in and play basketball. Smith has a board meeting minutes from now, but he’s scheduled an interview with the Guardian at the same time.

Smith’s a well-built man dressed in a pressed suit, polished shoes, and a sharply-knotted tie. He’d mostly avoided our calls for weeks. Word spread in the neighborhood that the Guardian was planning some sort of hit piece on Ella Hill.

But it won’t be a newspaper that capsizes the center.

A significant portion of the center’s funding will be threatened over the next year. The redevelopment agency is scheduled to end its 45-year reign in the Western Addition by then, a blessing of sorts since so many people in the neighborhood feel it’s done nothing but upend the lives of black residents. But the end of the agency means that redevelopment funds for Ella Hill’s job placement programs, about $400,000 annually, will disappear.

In addition, about $300,000 more a year will dry up since the San Francisco Human Services Agency hasn’t renewed an emergency homeless shelter contract with the center. Mirkarimi believes the mayor, too, will try to stop providing Ella Hill with funding through his community development office next year.

If Newsom does back away, Mirkarimi warns, there will be "a very loud showdown."

"What I’m worried about is that the Newsom administration is basically cutting and running on this, and I’m not going to allow that to happen, at least not without a fight," he said.

The alternative is for Rec and Park to take over managing Ella Hill’s facilities with DCYF continuing to fund youth programs there while the Redevelopment Agency commits community benefits dollars from a legacy fund to the center — the least it can do after a half-century of transforming the neighborhood, locals be damned.

An interagency council made up of the center’s primary funders could collectively watchdog its performance, Mirkarimi says. Once Ella Hill’s leaders prove that the center has fully returned to its original mission, it can consider expanding to serve other populations in the neighborhood, or even seek a plan to detach further from the city.

The mayor’s spokesperson, Nathan Ballard, did not respond to an e-mail containing detailed questions, and his aide, Dwayne Jones, did not return several phone calls. But Smith said during a later lunch interview at the Fillmore Café that he agrees with Mirkarimi’s idea.

"There are so many programs out there that say they’re doing something on paper, but they’re really not doing it," Smith said. "They’re running ghost programs. So what I’ve been saying at Ella Hill since I got there is, ‘We will do exactly what we said we were going to do.’<0x2009>"

In the meantime, Smith is determined to prove that Ella Hill’s history has only just begun. The mural of Lefty Gordon outside the center received a fresh coat of paint recently, and the color pops. The sidewalk is being repaved and new handrails installed. The walls inside are clear of the aging posters and letter board that hung there a few months ago.

Before heading off to his board meeting, Smith teasingly asks an adolescent boy meandering in the center’s entryway for 75 cents. The boy’s always hitting him up for pocket change.

"I don’t got any," the boy responds.

"You don’t have any," Smith corrects.

Smith suddenly realizes what time it is.

"Hey, why isn’t this guy in school?" he wonders aloud.

At that moment, only the Ella Hill Hutch Community Center was asking the question. *

Dufty to run for mayor?

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Stephen Seewer, the LGBT chair of the Commonwealth Club, called to tip me off to a big story that the media missed: Sup. Bevan Dufty announced on Monday at the Commonwealth Club that he’s running for mayor of San Francisco! Political watchers have long known this was a possibility, but how did we miss such an important announcement?
So I spoke with Dufty, who told me that he is indeed thinking about it, but far from making it official: “I don’t feel like it was a formal announcement.”
Dufty said Seewer caught him off-guard at the event with a question about whether he plans to run for mayor. Dufty says he answered by talking about the ambitious agenda he intends to pursue over the next two years and, as he tells it to us, he then told the audience, “Hopefully, I’ll look like a strong candidate for mayor.”
OK, maybe that’s not quite an official declaration, but it’s no secret that Dufty has his eye on the job. Others who seems to be setting themselves up for a run and have made similar statements of interest include Sup. Ross Mirkarimi, City Attorney Dennis Herrera, Assessor-Recorder Phil Ting, Sup. Aaron Peskin, and District Attorney Kamala Harris (provided she doesn’t get tapped by President Barack Obama to be attorney general). And I wouldn’t be surprised if Senator Carole Migden takes a step back after losing reelection, licks her wounds, and returns to the fray as a mayoral candidate.

Newsom’s power play

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› amanda@sfbg.com

GREEN CITY Mayor Gavin Newsom finally outlined what he calls a "more promising way forward than the current proposal" of building two publicly owned power plants in San Francisco.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while simultaneously shutting down Mirant’s most polluting smokestack, Unit 3.

Newsom wrote a letter to the Board of Supervisors just before a June 3 hearing on the power plants, describing a May 23 meeting that he convened with SFPUC General Manager Ed Harrington, City Attorney Dennis Herrera, California Independent System Operator President Yakout Mansour, California Public Utilities Commission Chair Mike Peevey, Mirant CEO Ed Muller, and Pacific Gas & Electric Co. CEO Bill Morrow.

"In the meeting, we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative," Newsom wrote. The board then voted to shelve the power plant plan until July 15 so the retrofit option can be vetted.

Most significant, Newsom’s meeting with top dogs at energy companies, who stand to lose a lot from San Francisco owning its own power source — and the resulting correspondence elicited a new response from Cal-ISO, the state’s power grid operator, about exactly how much electricity generation San Francisco needs.

For the first time, Cal-ISO said it will allow Mirant’s Unit 3 to close as early as 2010, when the 400-MW Transbay Cable comes online, saying that the city no longer needs to install a combustion turbine peaker plant at the airport.

Sup. Sophie Maxwell expressed frustration that the questions she, her staff, and other stakeholders have been asking for the past several years are suddenly getting different answers. "I think we’re seeing a big movement by Cal-ISO. This is huge. Before, we asked all these questions, [but] they weren’t saying what they’re saying now," she told the Guardian after the hearing.

When asked why she thought this was happening now, she simply pointed to PG&E. "Who stands to benefit from us not generating our own power? Who sent out all that stuff?" she asked, referring to the flyers depicting filthy power plants that PG&E has been mailing to residents in an effort to drum up public sentiment against the city’s plan to build peakers. "Have they been concerned about what’s clean, about our people?"

Some environmental activists are hailing the change as a triumph. "David has just moved Goliath, but we need to keep pushing," said Josh Arce of Brightline Defense, which sued to stop the city’s plan to build the two power plants. He said his organization’s goal is ultimately to have no fossil fuel plants in the city. But when asked about the retrofit alternative, he said, "We don’t support it; we don’t not support it."

Cal-ISO has insisted that San Francisco needs 150 MW of electricity to stave off blackouts. This grid reliability is currently provided by Mirant-Potrero, but the plant’s Unit 3 is the greatest stationary source of pollution in the city. Bayview residents, who have borne a disproportionate share of the city’s industrial pollution, have been agitating for more than seven years to close the plant. Much of the leadership has come from Maxwell, who represents the district and has championed the plan to replace the older Mirant units with four new ones owned and operated by the city.

That vision was integrated into San Francisco’s 2004 Energy Action Plan, which Cal-ISO has used as a guiding document for the city’s energy future. The plan outlines a way to close Mirant by installing four CTs and 200 MW of replacement power. "Cal-ISO has consistently said in writing, in verbal instructions, and at meetings, that the CTs are the only specific project that was sufficient to remove the RMR [reliability must-run contract] from Mirant," said SFPUC spokesperson Tony Winnicker.

As San Francisco’s energy plans have evolved over recent years, SFPUC staff have been instructed at numerous public hearings in front of the Board of Supervisors to ask Cal-ISO if all four CTs are still necessary. Letters obtained by the Guardian show Cal-ISO has never said the airport CT isn’t necessary until now. When asked why, Cal-ISO spokesperson Stephanie McCorkle said, "The questions are not the same. That’s why the answers are different."

When pushed for more details on what’s different, she said, "We feel the introduction of the Mirant retrofit fundamentally changes our approach to the fourth peaker. I think it’s the megawatts. It’s basically the retrofit that changes the picture."

Mirant’s peakers currently put out 156 MW, an amount that may be reduced by retrofitting. The city’s three peakers would produce 150 MW. Winnicker couldn’t explain why the story is changing, telling us, "We’re really deferring to the leadership of the mayor and the board because they’ve been able to get a really different view from Cal-ISO than we’ve been able to get."

"We’ve always said we’re open to alternatives," McCorkle said. "We can only evaluate what’s presented to us and the Mirant retrofit was only presented in mid-May." Opponents of the peaker plan say the new position indicates SFPUC officials haven’t been pushing Cal-ISO hard enough or asking the right questions.

"The city hasn’t done its due diligence insisting on different configurations of the peakers," Sup. Ross Mirkarimi told us. "What we’re learning now we could have learned two years ago." He went on to add, "With the abundant paper trail, one can only surmise or conclude there may have been a presupposed bias on the part of the PUC to the answers expected from Cal-ISO."

The SFPUC has been instructed by the mayor’s office to determine if Mirant retrofit diesels would be as clean as the city’s CTs. Until that can be proved, some are withholding support.

"I haven’t seen any information that a Mirant retrofit is as clean as the peakers," City Attorney Dennis Herrera told the Guardian. "From my perspective, I want the most environmentally clean solution."

To that end, some would like to see a formal presentation to Cal-ISO of a "transmission-only" alternative, which would outline a number of line upgrades and efficiencies that would obviate the need for any in-city power plants. Sup. Maxwell introduced a resolution urging the SFPUC to put such a proposal before Cal-ISO and to enact strict criteria for any alternative to the city’s CTs.

"We need to remember that Mirant was a bad actor. Mirant is not to be trusted," Maxwell said. "We sued them and we won our suit," she added, citing litigation brought by the city against the private company for operating the power plants in excess of its permitted hours and for market manipulation during the 2001-02 energy crisis.

Maxwell’s legislation, cosigned by six other supervisors, lays those concerns out and cautions, "In view of this history, the city should be cautious and vigilant in taking any steps that expand the operation of Mirant’s facilities in San Francisco."

The legislation also reminds policymakers that San Francisco’s Electricity Resource Plan identifies eight specific goals — one of which is to "increase local control over energy resources." It goes on to say, "City ownership of electric generating supplies can reduce the risk of market power abuses and enable the city to mandate the use of cleaner fuels when feasible or to close down any such generation when it is no longer needed."

Maxwell’s resolution also outlines a series of conditions that any alternative to the city’s peakers would have to meet. The alternative would have to be as clean or cleaner than the city peakers, have the same comprehensive community benefits package that was attached to the city’s peaker plan, have no impact on the bay’s water, and only be run for reliability needs.

The City Attorney’s Office said these criteria are not set in stone — it’s a resolution and therefore requires some level of enforcement or action. Mirkarimi, who signed on to the resolution, is still uncomfortable with it as it stands, saying it should include discussion of the city’s new community choice aggregation (CCA) plan for creating renewable public power projects.

Some environmentalists cautioned that the transmission-only approach still leaves too much control in the hands of others. "We shouldn’t let PG&E be the ones to solve this problem," said Eric Brooks, a Green Party rep and founder of Community Choice Energy Alliance. He’s urging city officials to put all the city’s energy intentions — from the CCA plan for 51 percent renewables by 2017 to an exploration of city-funded transmission upgrades — into a presentation for Cal-ISO.

Brooks noted a conspicuous absence from the May 23 meeting with the mayor: "CCA and environmentalists weren’t at the table, as usual."

Drug deal hurts consumers

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› gwschulz@sfbg.com

City Attorney Dennis Herrera made San Francisco the first government entity in the nation to accuse two major players in the pharmaceutical drug industry of conspiring to illegally manipulate the price of prescription drugs when he filed a lawsuit May 20. Connecticut followed Herrera’s lead days later, and filed an almost identical suit making the same charges.

The cases could have far-reaching implications. If Raymond Hartman, an economist and visiting professor at Boalt Hall School of Law who testified in a related case filed by a group of East Coast labor unions two years ago is correct, then consumers, insurers, and Medicaid administrators nationwide have overpaid for prescription drugs by billions of dollars as a result of the price manipulation scheme (see “Big Pharma’s Shadow,” 12/20/06).

To explain the highly complex litigation, consider how goods are usually priced. Take the 99¢, three-ounce bags of chips that are reliably available at the corner store near your house. Cool Ranch Doritos. Chili Cheese Fritos. Sour Cream and Onion Ruffles. It wouldn’t be a true bodega if there wasn’t a rack of them situated near the front door or register.

For as long as anyone can remember, it seems, they’ve cost just 99¢, regardless of the local cost of living, from Richmond, Va. to San Francisco. That’s because the suggested retail price of 99¢ is printed ubiquitously by the manufacturer on the packaging.

So you’d notice if a sticker suddenly appeared, lazily affixed to your bag of Sun Chips, stating a new price: $1.99. The manufacturer didn’t place it there because behind the sticker you can still see the old printed price. And the counter clerk didn’t place it there, because he knows the true suggested retail price is still just 99¢ and the laws of supply and demand never called for a price increase.

Instead, a local company that buys chips from the manufacturer and distributes them to the bodega in your neighborhood put it there. The bodega owner didn’t complain because now it’s possible for him to earn an extra dollar for each bag. In fact, as a result of the new sticker, he’s more likely to take his business back to that particular distribution company over a competitor since that company is willing to artificially inflate the retail cost of a bag of chips on his behalf simply by putting a new price tag on the bag.

Now imagine that the product isn’t a cheap bag of chips but billions of dollars worth of pain-reducing or life-saving pharmaceuticals. And the distributor isn’t a local guy who drives a delivery truck full of boxes of chips but a multinational corporation, headquartered in San Francisco, that’s ranked 18th on the Fortune 500 list, with $93.6 billion in annual revenue and a CEO, John Hammergren, who received compensation in 2007 worth more than $22 million after presiding over the company’s record profits that year.

Imagine, too, that the distributor is powerful enough to slap new price stickers on cartons of drugs around the country, not just at your corner bodega, so you can’t simply elect to shop elsewhere to protest the new prices. Neither can you just stop consuming needed medicines the way you can snack chips.

Herrera’s federal civil suit probably has escaped media attention due to its esoteric nature (not to mention a potential conflict of interest at the San Francisco Chronicle, but we’ll get to that in a minute). It charges that McKesson Corp., along with a tiny drug data publisher based in San Bruno called First DataBank, conspired in an "elaborate scheme" to unfairly mark up the price on more than 400 name-brand prescription drugs. The conspiracy allegedly resulted in the San Francisco Health Plan being forced to make thousands or even millions of dollars in excess payments to cover the cost of such medications.

The SF Health Plan is not the same as Healthy San Francisco, the city’s historic 2006 bid to grant universal health care to the 82,000 adults here who live without insurance. The SF Health Plan extends mental, medical, and dental health coverage to about 50,000 people, including approximately 28,000 children in the city, and offers in-home support workers to the disabled and elderly. The plan is funded through a combination of federal and state dollars known in California as Medi-Cal and elsewhere as Medicaid.

The programs help low-income residents get health care, but its public subsidies are being endangered by a massive state budget deficit. So making sure the SF Health Plan is paying the appropriate price for prescription drugs, a $200 billion industry in the United States, is more important than ever.

McKesson and First DataBank, the lawsuit alleges, placed new stickers on drug packages so that everyone — from private insurers to Medi-Cal to consumers without insurance who simply walk up to a pharmacy window and cover their drug treatments with cash — paid far more than they should have, based on an industry calculation that’s similar to the suggested retail price printed on our analogy of a bag of chips. Herrera says he took on the suit because San Francisco is not alone in overpaying for pharmaceuticals and he saw a chance to force greater reforms in the system.

"We make our decisions based on the facts and the law, and we do our best to protect consumers, taxpayers, and businesses alike," Herrera told the Guardian. "This impacts a lot of things. It’s about protecting consumers from having high drug costs passed on to them. It’s about protecting taxpayer dollars since this is the San Francisco Health Plan, and it’s something that emanates out of a city program. But it’s also about protecting businesses, because a lot of businesses and health plans are the ones footing the bill for increased drug costs."

First DataBank is not listed as a defendant in Herrera’s suit but is described as "an unnamed co-conspirator." The company is a little-known subsidiary of the private, New York–based media conglomerate Hearst Corp., which owns dozens of major publications including the San Francisco Chronicle, the Seattle Post-Intelligencer, Esquire, and The Oprah Magazine. Spokespersons for McKesson and First DataBank refused to comment for this story.

As far as revenue is concerned, First DataBank is a bit player in the world of pharmaceuticals. Court records in a related 2006 suit describe its annual pretax income as just $19 million, barely enough to cover the McKesson CEO’s compensation last year.

But the company is nonetheless important to people who rely on prescription drugs. It’s one of the few major companies in the United States that maintains a sophisticated electronic database of information on tens of thousands of prescription drugs. Plus, First DataBank possesses a virtual monopoly on the market because the company merged with its only real competitor, Medi-Span, in 1998. Its database includes numbers, for instance, on what a drug manufacturer like Aventis might charge distributor McKesson for the allergy medicine Allegra, a figure known as the "wholesale acquisition cost."

Because it’s almost impossible to track every transaction between McKesson and retail chain pharmacies that McKesson distributes bulk drugs to, like Rite Aid and CVS Caremark McKesson, it’s First DataBank’s job to survey the distributors and come up with an "average wholesale price."

After you obtain a bottle of Allegra with a co-pay to take care of your stuffy nose, your insurance provider, say, Blue Cross or Kaiser Permanente or the SF Health Plan, refers to First DataBank’s massive catalog of drugs — for which they’ve paid a hefty subscription fee — to make sure the price they’re paying for your allergy medicine is the one properly set by the market.

First DataBank claimed for years that it was surveying multiple drug wholesalers like McKesson to come up with its average published prices and that it was increasing the number of surveys it conducted. But there aren’t that many wholesalers to actually survey because so many of them have merged with one another in recent years. Also, two out of the nation’s three top wholesalers apparently declined to participate in the surveys as a matter of policy.

Troy Kirkpatrick, a spokesperson for Cardinal Health, one of McKesson’s few competitors, said his company doesn’t give out proprietary information to anyone, let alone First DataBank.

"We have a long-standing policy of not providing confidential pricing information to external sources," Kirkpatrick said. "So if we get asked to share that type of information, we decline."

By 2001 it appeared that First Databank wasn’t really surveying several wholesalers or even the two major companies that compete directly with McKesson, according to court records. First DataBank allegedly conspired with McKesson to establish an artificial baseline markup on hundreds of drugs that didn’t accurately represent their true suggested retail price

.

But if the bodega, or in this case, the retail pharmacy, is benefiting from the new stickers, then what’s in it for McKesson?

Herrera’s suit contends that if pharmacies like CVS and Rite Aid saw McKesson pressing the scales for them, they’d return to McKesson with their business instead of its two other major American wholesale competitors, Cardinal Health and AmerisourceBergen.

The three companies aggressively compete with one another for business just like they’re supposed to in good ol’ free-market America. But now it appears that McKesson has found a way to game the system and edge ahead of its two rivals. Indeed, McKesson is narrowly beating them in total revenue according to the Fortune 500 list.

Profit margins from drugstore chains were sagging at the time the alleged scheme between McKesson and First DataBank took off, and chain pharmacies had been pressing manufacturers to help them earn higher profit margins. According to the lawsuit, distributor McKesson came to the rescue.

So the final question, then, is whether the drug stores were enriched by all this.

Longs Drugs last year made more than $5 billion in revenue. About 20 percent of that, or $1 billion, came from the government-subsidized health care programs Medicare and Medicaid, according to company records.

In its most recent annual report to the Securities and Exchange Commission, Longs admits that if insurers began using a different benchmark than the prices published by First DataBank, such as a pricing guide that more accurately reflected market prices, there could be a "material adverse effect on our financial performance."

Cal-ISO totally changes tune on power plants

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Oh my. For all you folks that have been following the controversy around building new power plants in San Francisco, it just got even better.

Mayor Gavin Newsom sent a letter to the Board of Supervisors today outlining a “more promising way forward than the current proposal” to build two natural gas-burning “peaking” power plants in the city.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while at the same time shutting down Unit 3, the most polluting part of the power plant, as soon as the Transbay Cable comes online.

“On Friday, May 23, Ed Harrington [General Manager of the SFPUC], City Attorney Dennis Herrera and I met with president of Cal-ISO – Yakout Mansour, the chairman of the CPUC – Mike Peevey, the CEO of Mirant – Ed Muller, the CEO of PG&E – Bill Morrow, and our respective staffs. In this meeting we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative,” Newsom wrote to the Board.

For anyone who’s been closely following the nuances of this argument, this is a significant change in position from the California Independent System Operator [Cal-ISO], and it should be noted that it took — not just the Mayor sitting down at the table — but top dogs from PG&E and Mirant (who both stand to lose money by the city building its own power plants), as well as the CPUC’s Peevey, who’s never expressed a positive opinion about the true need for more power plants in the city.

Now, suddenly, Cal-ISO is departing significantly from all previously expressed demands that we build power plants.

The background: The state, through Cal-ISO, has for the last several years insisted that San Francisco needs 150 megawatts of peak electricity at the ready. We currently get this from Mirant-Potrero, but Unit 3 of that facility has a bad rep as the greatest single source of pollution in the city. People in the Bayview neighborhood, which have carried more of their fair share of pollution, have been waiting a long time for the plant to close. Stakeholders have been meeting for over seven years, working on ways to close the plant, and much of the leadership on the issue has come from Sup. Sophie Maxwell, who represents the Bayview district.

Cal-ISO has insisted that the only way to close Unit 3 is to build new peakers, which would be owned and operated by the city, run cleaner and more efficiently, and still supply that 150 MW of peak power. Even when the 400 MW Transbay Cable was approved, Cal-ISO insisted San Francisco would still need the peakers.

But in a June 2 letter, Cal-ISO suddenly had a different response for the Mayor.

Connecticut joins SF in charges against McKesson

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Reuters is reporting that the state of Connecticut today followed San Francisco’s lead in suing the McKesson Corp. over an alleged conspiracy to unfairly manipulate the price of prescription drugs. The Connecticut suit charges that McKesson, a multinational corporation based in San Francisco and ranked 18th on the Fortune 500 list, violated anti-racketeering laws by creating a scheme to artificially increase published figures related to what retail pharmacies pay to obtain prescription drugs from wholesalers like McKesson.

The alleged scheme involved the participation of a little-known company based in San Bruno called First DataBank, a subsidiary of media giant Hearst, owner of the San Francisco Chronicle. First DataBank maintains a sophisticated database of prescription drug prices that Medicaid administrators and private insurers use to determine what they’ll pay a pharmacy retailer to cover the cost of your drugs after you’ve made the co-pay.

Because so many prescription drugs exist, First DataBank’s figures are critical for understanding the true cost of pharmaceuticals as they move through market pipelines from the manufacturer to the wholesaler to the corner pharmacy. The suits allege that First DataBank and McKesson conspired to inflate those published prices so that everyone from Medi-Cal to Blue Cross paid far more to pharmacies than appropriate for the drugs. A big part of McKesson’s business comes from chain pharmacies, and if they saw McKesson going to bat for them, the suits claim, they were likelier to maintain those business relationships instead of turning to a McKesson competitor like AmerisourceBergen or Cardinal Health. Yes this stuff sounds sleep-inducing, but there’s a whole lot of money involved if City Attorney Dennis Herrera and others are right about this. Learn more about San Francisco’s lawsuit.

We do

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› steve@sfbg.com

Less than two hours after the California Supreme Court announced its 4–3 decision legalizing same-sex marriage, San Francisco City Hall filled with smiling couples and local politicians of various ideological stripes to celebrate the city’s central role in achieving the most significant civil rights advance in a generation.

The case began four years ago in San Francisco when Mayor Gavin Newsom decided to have the city issue marriage licenses to gay and lesbian couples. City Attorney Dennis Herrera and his legal team built the voluminous legal case that won an improbable victory in a court dominated 6 to 1 by Republican appointees.

"In light of the fundamental nature of the substantive rights embodied in the right to marry — and the central importance to an individual’s opportunity to live a happy, meaningful, and satisfying life as a full member of society — the California Constitution properly must be interpreted to guarantee this basic civil right to all individuals and couples, without regard to their sexual orientation," Chief Justice Ronald George wrote in the majority opinion.

Newsom cut short a trip to Chicago to return home and make calls to the national media and join Herrera’s press conference, where hundreds of couples who got married in San Francisco City Hall were assembled on the City Hall staircase as a backdrop to the jubilant parade of speakers that took the podium.

"What a wonderful, wonderful day," a beaming Herrera told the assembled crowd, adding, "California has taken a tremendous leap forward."

Some speakers (as well as the next day’s coverage in the San Francisco Chronicle) emphasized the potential of the issue to embolden conservatives and the possibility that a November ballot measure could nullify the decision by, as a prepared statement by Rep. Nancy Pelosi put it, "writing discrimination into the state constitution."

But for most San Franciscans, it was a day to celebrate a significant victory. Herrera praised "the courageousness of the California Supreme Court." He also commended Deputy City Attorney Terry Stewart, who argued the case, legal partners such as the National Center for Lesbian Rights, the eight other California cities that supported San Francisco’s position with amicus briefs — and Newsom, who clearly soaked up the adulation and gave a fiery speech that could easily become a campaign commercial in his expected run for governor.

"I can’t express enough how proud I am to be a San Franciscan," Newsom said, later saying of the decision, "It’s about human dignity. It’s about human rights. It’s about time."

Newsom also emphasized that "this day is about real people and their lives."

Among those people, standing on the stairs of City Hall, was Emily Drennen, a current candidate for the Democratic County Central Committee and the District 11 seat on the Board of Supervisors, who was the 326th couple to get married in San Francisco, taking her vows with partner Linda Susan Ulrich.

"When it got nullified, something was taken away from us. It really felt like that," Drennen told the Guardian, adding that she was thrilled and relieved by the ruling. "I was just holding my breath this whole time, expecting the worst but hoping for the best."

Herrera spokesperson Matt Dorsey, who is gay, was similarly tense before the ruling, knowing how much work had gone into it but worried the court might not overcome its ideological predisposition to oppose gay marriage.

"For everyone who worked on this, it was the case of their lives," Dorsey told us. "Politically and legally, there was so much work that this office did that I’m so proud of, and I hope people understand that." *

A perfect San Francisco day

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The superlatives are flowing in San Francisco today. “What a wonderful, wonderful day,” was how City Attorney Dennis Herrera opened the giddy press conference in City Hall today, a love fest event discussing and celebrating this morning’s California Supreme Court ruling legalizing same sex marriage.
“What a day for San Francisco!” beamed a jubilant Mayor Gavin Newsom, whose decision to issue marriage licenses to gay and lesbian couples in 2004 set off the legal struggle that resulted in the most important civil rights ruling in a generation. He told a large, smiling crowd how proud he was of this city, its values, and its courage to push hard for meaningful sociopolitical change.
“At the end of the day, that’s what I’m so proud of, San Francisco and the values we affirm,” Newsom said. “This is a great day for California, a great day for America, and a great day for the constitution.”
It was also a just plain great day, with hot weather contributing to a record-breaking Bike to Work Day. During the morning commute, a city survey counted twice as many bicycles as cars on Market Street, a 30 percent increase from the number of bicyclists last year.
Today is just one of those days when you fall in love with San Francisco all over again, when it feels like we have the power to really lead the rest of this troubled country in a new direction.

Same sex marriage legalized in California

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The California Supreme Court has legalized same sex marriage in California, ruling this morning on the case that stemmed from San Francisco’s move in 2004 to unilaterally allow gay and lesbian couples to get hitched. This is a big day for Mayor Gavin Newsom (who decided the city should go ahead and issue marriage licenses to everyone, which was by far the boldest and best thing he’s done from Room 200), City Attorney Dennis Herrera (who won the legal fight, making California just the second state to extend marriage rights to all Californians), and all residents of San Francisco and California.
The press conferences at City Hall kick off at noon and it’s likely to be quite a celebration down there (mixed in with some apoplectic opponents of gay rights, I’m sure), so ride your bicycle on down and help mark a historic day for San Francisco.

Big fat gay wedding announcement

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The California Supreme Court has announced that it will issue its long-awaited same sex marriage ruling tomorrow morning at 10 a.m., deciding whether the current ban is unconstitutional. City Attorney Dennis Herrera, whose office has been fighting for the right of LGBT couples to get hitched and whose website has extensive links to documents on the case, will host a press conference at noon to react to the ruling.
So far, nobody knows what to expect except the fact that whatever the ruling, it will be big, big, big news for San Francisco and the rest of the state. Stay tuned.

Renters fight back

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› gwschulz@sfbg.com

A stream of perturbed tenants living in buildings owned by one of the city’s largest landlords, CitiApartments, Inc., converged on City Hall May 12 to testify that in recent years the company has engaged in an alleged campaign of intimidation and harassment against residents living in rent-controlled units.

Attendees, many wearing stickers that read "Tenants standing together for fair treatment," quickly filled to capacity a committee room used by the Board of Supervisors before the overflow was moved to two other large rooms where televisions airing the meeting were situated.

CitiApartments turned out its own army of supporters in an attempt to offset the impression that it’s unpopular among renters in the city. Dozens of people who claimed to back the company’s business practices attended the meeting wearing shirts that stated, "I support CitiApartments."

But a volunteer with the Queer Youth Organizing Project and organizer against CitiApartments complained to the supervisors that the crowd of supporters had either been paid to attend the meeting or were employees of the company. Few CitiApartments supporters filled out comment cards or spoke publicly in defense of the company.

Some CitiApartments tenants said they endured months of lingering construction work that filled their buildings with debris and garbage after CitiApartments bought its buildings, the upheaval intentionally designed to drive them out in frustration and thus give up their stabilized rent rates.

Others said vulnerable tenants like undocumented immigrants and seniors were specially targeted with intimidation tactics by a private security group working for CitiApartments that appeared at their doors asking for personal information. Utilities were frequently shut off, tenants said, or elevators relied upon by the physically disabled were left inoperable for long periods of time, all part of a campaign to scare them away from their apartments.

"This is not simply about a bad landlord," tenant Debbie Nuñez, who lives in a Lower Nob Hill building purchased by CitiApartments in 2000, told the supervisors. "This is about a well-oiled machine."

Sup. Chris Daly sponsored the hearing by the board’s Land Use and Economic Development Committee to receive an update on the city attorney’s lawsuit against CitiApartments, a.k.a. Skyline Realty. He also wanted to discuss the company’s swift rate of property acquisitions in San Francisco and to hear testimony about mounting alleged building code violations at some of its buildings.

City Attorney Dennis Herrera sued the company and several of its subsidiaries in August 2006 alleging an "egregious pattern of unlawful and unfair business practices," and a "shocking panoply of corporate lawlessness, intimidation tactics, and retaliation against residents."

Five months prior, the Guardian published a three-part series of stories documenting claims by current and former CitiApartments tenants that they had been the victims of persistent, aggressive attempts to oust them from rent-controlled housing units. If such tenants vacate the apartments for whatever reason, CitiApartments can raise the rent on those units dramatically.

A recent report by the Legislative Analyst’s Office shows CitiApartments today owns nearly 300 properties here, which combined hold from 6,300 to 7,500 units and about 12,000 tenants.

Sup. Aaron Peskin, who sits on the committee with Sups. Gerardo Sandoval and Sophie Maxwell, said at the meeting that his office receives a complaint once a week or at least every 10 days about CitiApartments, a figure that has increased over the last three years.

"I don’t recall ever hearing complaints about Trinity Properties in the city," Peskin said. "They own 6,000 units."

Daly pointed to a May 9 New York Times article that reported on the rising phenomenon of "predatory equity," in which private investment funds bankroll the acquisition of a large number of rent-controlled apartments in New York anticipating higher-than-usual vacancy rates. But tenant advocates say achieving such rates requires a concerted effort, either through offering one-time buyouts, finding nuances in the law that allow for an eviction, or harassing tenants until they grow exasperated and leave.

The significantly higher revenue generated from market-rate rental prices then enable building buyers there to repay the equity firms that gave them the huge loans to buy the properties in the first place. Daly wants to find out if CitiApartments is deploying a similar "business model" in San Francisco.

According to the Times piece, developers backed by private equity firms have purchased nearly 75,000 rent-controlled units over the last four years in New York. One company that bought a group of buildings in Queens subsequently filed around 1,000 cases against tenants in housing court during an 18-month period.

A lawyer for CitiApartments, Tara Condon, promised the committee members that the company would investigate the complaints made by tenants at the May 12 meeting. She added that the company increases tax revenue for the city when it improves the conditions and appearances of buildings it purchases. She also declared that the company makes local charitable contributions and has reached out to financially troubled tenants.

"We are a business, but we try to work with [the tenants,]" Condon said. "We want to make sure they can stay in their apartments."

One former tenant, Donna O’Brien, testified that CitiApartments helped her and her husband find a more affordable apartment after the company bought a previous building she lived in at 516 Ellis St. last year. She said CitiApartments also paid for her moving expenses. "Quite honestly, CitiApartments has been very good to us."

The real energy-policy choice

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EDITORIAL According to City Attorney Dennis Herrera, if San Francisco wants to see the Potrero Hill power plant, which spews pollution over the southeast part of the city, close down next year, the city’s going to have to operate its own fossil fuel plants in the neighborhood. Some environmentalists say that’s not true — that the city could develop enough renewable energy and use existing backup systems to obviate the need for the so-called peaker plants.

Opposition to the plants comes from the Sierra Club, Supervisors Chris Daly and Ross Mirkarimi — and Pacific Gas and Electric Co.

Even for people who spend an inordinate amount of time studying energy policy, it’s a confusing mess of a situation — and San Francisco, of all cities, shouldn’t have to be facing it.

The peaker dilemma exists for a reason: San Francisco has allowed private-sector companies like PG&E and Mirant, which owns the existing Potrero plant, to control the city’s energy systems. The good news is that the fight over the power plants is driving a new move for public power — a move that ought to bring together the public interest activists on both sides of the plant divide.

Sups. Ross Mirkarimi, a peaker foe, and Aaron Peskin, a peaker supporter, plan to introduce a Charter Amendment mandating that the city’s Public Utilities Commission create a plan to establish a retail power agency in San Francisco. The amendment would provide the badly needed kick start to get city officials to act on San Francisco’s historic mandate for a municipal electricity system.

Peskin and Mirkarimi may not agree on the three peaker plants the PUC wants to site at the foot of Potrero Hill, but they do agree that PG&E is up to no good here. The giant private utility desperately wants to keep the city from developing its own electric power plants: the city peakers would be competition for PG&E and would open the door for the city to get more directly into the electricity business. Although the fliers put out by the "Close It Coalition," funded by PG&E, talk about environmental issues, that’s just old-fashioned greenwashing. PG&E is building similar combustion turbine gas-fueled generators all over the state.

Why should this be the city’s only choice?

If there’s going to be a fight over energy policy in San Francisco, it ought to focus on the real long-term questions: Who should control the local grid, and the future supply of electricity, and the decision over how much of the local portfolio should be in renewable resources? Should PG&E continue to hold that power, or should the city take it over?

The movement for public power is exploding all over California. In Marin County, a group called Marin Clean Energy is mounting a sophisticated campaign for a community-controlled power agency that would use 100 percent renewable power. The South San Joaquin County Irrigation District is trying aggressively, against a full-scale PG&E political assault, to buy out PG&E’s distribution facilities and create a new public power system. Stockton is looking at becoming a public power city.

San Francisco is pursuing CCA, but needs to do much more. This is, after all, the only city in the nation that has a mandate under federal law to sell retail electricity.

If the city had created a public power agency years ago, the peakers wouldn’t be an issue. San Francisco would have been able to develop more extensive renewable power sources, create a long-term energy plan, and concentrate on shutting down fossil fuel plants instead of building them.

But whatever the outcome of that fight, it’s time to think about the future — and the future is community-owned energy programs. That’s the choice that ought to be on the ballot in November.

PS: Stop the presses — has Newsom buckled to PG&E? The mayor at the last minute May 13 has orchestrated a delay in the peaker vote — at the behest, we hear, of PG&E, which is begging the mayor to do anything to stop public power. Now he wants to retrofit the Mirant plant. That’s an unacceptable option and needs to be rejected.

Here comes the public power initiative!

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By Bruce B. Brugmann (Scroll down to see the historic Mirkarimi/Peskin/City Attorney resolution)

Today, at the Board of Supervisors meeting, Sups. Ross Mirkarimi and Aaron Peskin introduced
a Charter Amendment mandating that the city’s Public Utilities Commission create a plan to establish a retail power agency in San Francisco and start the process of kicking PG&E out of City Hall and the rest of the city.

The amendment, as our editorial in Wednesday’s Guardian outlines, would “provide the badly needed kick start to get city officials to act on San Francisco’s historic mandate for a municipal electricity system.”

The move is prompted by the battle over whether the city should replace the ruinous Mirant private power plant with city-owned power plants called peakers at the foot of Potrero Hill. PG&E has quietly orchestrated a major political and public relations onslaught to kill the peakers because they would be what PG&E fears most: city-owned public power.

In fact, as Tim Redmond’s blog discloses, PG&E even marched seven lobbyists (yes, seven) into the office of would-be-green Mayor Gavin Newsom, who once personally backed the plan and whose Public Utilities Commission backs the plan. PG&E jacked Newsom around and muscled him into asking for a delay in today’s scheduled power plant vote to give PG&E more time to kill the peakers.

The rationale: some sort of vague and ridiculous idea of retrofitting the Mirant plant and keeping the PG&E uber alles status quo.

IF PG&E ultimately loses the peaker vote (and it will be close), PG&E will most likely run a referendum on the November ballot against this dread move to peaker public power. So the Mirkarimi and Peskin move is aimed at putting a counter initiative on the November ballot and breathing new life into the historic battle to enforce the federal Raker Act (which mandated San Francisco have a public power system) and bringing our own cheap Hetch Hetchy public power to the people of San Francisco. (See Guardian stories and editorials since l969.) The initiative would be timed to take advantage of the expected heavy turnout of Obama forces for the presidential election and for the election of supervisors.

The legislative digest sums up the amendment in a paragraph of City Hall legalese:

The amendment is to “address the need to change electricity production, delivery, and use to ensure environmentally sustainable and affordable electric supplies for residents, businesses, and city departments and to require the Public Utiliies Commmission to comprehensively study and determine the most effective means of providing clean, sustainable, reliable, and reasonably-priced electric service to San Francisco residents, businesses, and city departments.”

The amendment was written and signed by Deputy City Attorney Theresa Mueller and approved as to form by City Attorney Dennis Herrera. It was introduced by the president of the board (Peskin) and a powerful supervisor who is obviously running for board president and mayor (Mirkarimi). These references are important: when the public power movement was reinvigorated in the late l990s, it faced a massive lineup of PG&E stalwarts inside City Hall: City Attorney Louise Rennie, Mayor Willie Brown, the PUC executive director and PUC commission, and all the supervisors with the notable exception of Sup. Tom Ammiano.

Mikarimi led the two famous initiative campaigns as campaign manager in 2000 and 2001, which PG&E defeated with muscle, mutli milliions, and staunch daily paper support. Now, Mirkarimi is inside City Hall in a starring role leading the charge for community choice aggregation (CCA) and now a public power initiative. And the whole thing scares the hell out of PG&E.as never before.
.
Hurray! The battle is on!

P.S. PG&E marches in: You can see how PG&E works by seeing who was at the critical May 5 meeting in the mayor’s office. No public power people, nobody from the Sierra Club, and no environmental justice activists who are also opposing the peakers (but for understandable environmental reasons.) But standing tall at the secret meeting were seven PG&E lobbyists, led by Travis Kiyota, and such PG&E friendly folks as PUC Commissioner Dick Sklar (remember him?), Sup. Michela Alioto-Pier, and a representative from the National Resources Defense Council (NRDC).

PG&E and NRDC arranged to have a timely letter on NRDC letterhead, dated May 12 , come to the supervisors from Robert Kennedy Jr., with ccs to Newsom, President Michael Peevey of the California Public Utilities Commission, and Gov. Arnold Schwarzenegger. The letter was of course released to the press and the public on the eve of the vote. PG&E, NRDC, and Kennedy had at least one line right: “Where San Francisco ultimately decides to invest its precious energy dollars is a choice that will send a message to cities around the country.”

The tipoff: nowhere do the PG&E supporters, including the Chronicle editorialists who suddenly took a down-with-the-peakers stand yesterday, nor the Examiner, with a wimpy story today on Newsom’s sudden change of plans, mention those dread three letters that divulge the secret agent at work (PG&E) nor that dread phrase that tells what the secret agent is really up to (killing public power.) C’mon, folks, this isn’t that hard to figure out. Is there some law somewhere that says the local media can’t cover what PG&E is doing to perpetuate the PG&E/Raker Act scandal and once again kill public power? (See “The Shame of Hearst” in previous Guardian and blog items.)

On guard. The pubic power forces are once again moving up to the front lines, muskets at the ready. B3 (who sees the fumes from the Mirant plant every minute of every day from my Potrero Hill office window)

Click here to read Mirkarimi and Peskin’s recent Charter Amendment.

Click here to read Redmond’s recent blog, PG&E offers Newsom a blank check

Click here for this week’s PG&E editorial.

Pelosi and the moth spraying

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Correction: Rep. Sam Farr has raised questions about the moth, but has not at this time introduced legislation to de-list it.

EDITORIAL A Santa Cruz County judge has put a temporary halt to the state’s plan to spray chemicals from the air over Bay Area cities in an ill-conceived effort to eradicate the Light Brown Apple Moth. Gov. Arnold Schwarzenegger agreed to hold off on the spraying until further studies are done on the environmental and health issues.

But the proposal to dump tons of an artificial pheromone called Checkmate over urban areas with millions of residents this summer is not dead: the governor still insists that some sort of eradication plan is needed, and California Food and Agriculture Secretary A.G. Kawamura is warning lawmakers that billions of dollars are at stake.

But the entire issue could be obviated with congressional action, and Rep. Nancy Pelosi needs to take the lead.

Checkmate disrupts the mating cycle of the moth. Nobody knows for sure what effects it will have on humans, but the Checkmate containers have strict warning labels about health hazards. And the stuff will be contained in tiny plastic capsules designed to release it over weeks, or even months. The capsules themselves can be inhaled, possibly causing respiratory problems. There’s no doubt this is a danger, particularly for children.

The legal and political issues are complicated, but it appears that there are only two effective ways to halt the spraying at this point. Either the Santa Cruz legal ruling has to hold up on appeal (tricky, since the governor can declare an emergency and override environmental law), or the federal government has to change the way it looks at the moth.

The moth is a threat to agriculture — but almost certainly not as serious a threat as state and federal authorities claim. Schwarzenegger says the tiny insect, which likes to lay its eggs in a wide variety of plants, will devastate the state’s agricultural industry. But many entomologists say the bug has probably been in the Bay Area for years, and that the state’s crops have not suffered. In fact, in other places where the moth is established (Australia and New Zealand, for example), its impacts have been fairly mild.

The problem is that the feds have listed the moth as a major agricultural hazard. Under international treaties, produce from areas where the bug is established can’t be exported. There’s a simple way to solve this: Congress can de-list the Light Brown Apple Moth. Rep. Sam Farr (D–Monterey) has introduced a bill to do that. But time is short.

Pelosi, however, has the ability as speaker to push this to the top of the agenda and get a bill passed quickly. Mayor Gavin Newsom and the supervisors should call on her to do that — now.

Meanwhile, Oakland is preparing its own legal action. San Francisco City Attorney Dennis Herrera and other Bay Area city attorneys should be doing the same.

Weigh in on the peakers

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The city’s proposal to build two fossil-fuel burning “peaking” power plants on our precious peninsula (one in Portrero/Bayview, the other at the airport) has become a hot topic.

On one side we have Supervisors Michela Alioto-Pier, Chris Daly, and Ross Mirkarimi, allied with PG&E and a host of environmental groups and activists like the Sierra Club, GreenAction, SPUR, and Van Jones, who think building any fossil fuel plants – even if they burn the cleanest fuel available – is a bad idea.

On the other, we have Mayor Gavin Newsom, City Attorney Dennis Herrera, and Supervisors Aaron Peskin and Sophie Maxwell, who believe this is a necessary handshake with the Devil – in order to close down the older, reportedly more polluting Mirant Portrero power plant, the peakers must replace it. (See the $2 million handshake here.) Public power advocates also tend to favor this position as the peakers will be owned by the city and considered a crucial player in energy independence from our local utility monopoly. This is why PG&E, disguised as the CloseIt Coalition, hates the idea.

We can see Mirant’s stack from our Guardian offices, and though we love public power, we hate the idea of replacing one fossil fuel plant with another – particularly if the $250 million for the project could be used to build more city-owned renewable generation for our Community Choice Aggregation power co-op. Last week we ran an editorial suggesting the city explore floating the peakers on a barge, but overall, to build or not to build is the tricky part of this issue. We’ve been watching the back and forth with interest. Follow the jump to read some leading locals weighing in, as well as more data from our research. Feel free to add your own comments, information, and critiques.

Peaker plan afloat

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› amanda@sfbg.com

A proposal to build two natural gas–fired power plants is still floating through the city’s planning process, set for approval by the Board of Supervisors as soon as May, but no one seems truly comfortable with the deal.

"It’s not my first choice or my second choice, but it’s the choice I have," Board president Aaron Peskin told the Guardian. The choice seems to be either the city builds newer, potentially cleaner power plants — known as "peakers" because they would be used mainly during times of peak energy demand — or does nothing to shut down the super-polluting Mirant Potrero power plant.

The combination gas- and diesel-burning power plant spews a cocktail of toxins from its stack every year and draws 226 million gallons of water a day from the bay to cool its generators yet it’s mandated by the state to keep operating. The discharge flows back into the bay significantly altered, with microorganisms and fish larvae replaced by mercury, dioxins, and PCBs.

The California Independent System Operator (CAL-ISO), the state agency that oversees electricity reliability, said it would break the Mirant contract if the peakers came online. The city-owned plants would use recycled water and more up-to-date air quality controls, making for cleaner facilities at the two proposed sites — the airport and the intersection of 25th and Maryland in the Bayview.

They also would be city-operated, giving a little more leg to the local public power movement. But they still burn fossil fuel, and at a time when the climate is in crisis and natural gas prices are only rising, many say this isn’t the direction a trend-setting city like San Francisco should be heading.

"This isn’t the progressive way to go," said Sup. Chris Daly. "We need to be more forcefully installing renewables that are municipally owned."

Daly, along with supervisors Ross Mirkarimi and Michela Alioto-Pier and the city’s current power provider Pacific Gas and Electric Co., have lined up against building the peakers in what Mirkarimi calls an "unholy alliance."

PG&E, lobbying under the guise of the "Close It! Coalition," states that the peakers "further San Francisco’s reliance on fossil fuels and add to global warming." The $12 billion utility company currently gets 40 percent of its power the same way and is in the process of constructing several similar plants throughout the state. Nevertheless, the company has submitted detailed proposals to the city and state outlining demand response measures and transmission upgrades that would mitigate the need for more energy.

Mayor Gavin Newsom and City Attorney Dennis Herrera support building the peakers in order to close the Mirant plant, and Sups. Sophie Maxwell, Bevan Dufty, and Jake McGoldrick are carrying the legislation that would seal the contract with Cleveland, Ohio-based Industrial Construction Company to start the $252 million project.

That legislation points out that Mirant’s water permit is set to expire Dec. 31, and the Regional Water Quality Board has indicated it has no plans to renew it unless Mirant upgrades to best practices. This has been suggested as an alternative way to close the plant. When asked whether Cal-ISO’s reliability demands trump the Water Board’s requirements, Cal-ISO’s Gregg Fishman wrote in an e-mail, "What happens if the Potrero unit’s water permits expire? Simply put — we’re not sure."

Beyond that, a number of questions remain: Should the requirement for a full feasibility study for city contracts more than $25 million really have been waived for this project? Is it fair to put the new power plant in the neighborhood that has always endured the lion’s share of the city’s pollution? What if they were on movable barges instead? And has the city been forceful enough with CAL-ISO when it comes to planning the city’s energy future?

Alioto-Pier has introduced two resolutions addressing a couple of these issues. One calls for a straight-up feasibility study — which supporters of the peakers have waived. "The city has a policy of conducting a full fiscal analysis of capital projects over $25 million," Alioto-Pier said in a press release. "This should be no exception." Her other resolution asks for an independent analysis of the whole thing and a revised 2008 Energy Action Plan for the city.

For several years, Cal-ISO has said Mirant could stop operating if San Francisco can provide an alternate "firm" power source in its Energy Action Plan. In 2004, San Francisco’s Public Utilities Commission proffered the peakers, and that became the city’s power plan before adopting the CCA (community choice aggregation) plan for the city to develop an energy portfolio of at least 51 percent renewables.

Though the SFPUC has continuously asked Cal-ISO if the 2004 Action Plan is still the way to go now that the Trans Bay Cable and other line improvements have come into play, Josh Arce, a lawyer for Brightline Defense, which sued to stop the peaker plan, says they’ve been framing the question all wrong: "The PUC has essentially been saying, ‘Does the Action Plan include all four combustion turbines?’ And Cal-ISO has said, ‘Yes, it includes all four.’ Instead, the PUC needs to come up with a new Action Plan and give it to Cal-ISO and say we’re doing this instead."

Alioto-Pier’s resolution, if passed, could prompt a fresh response from Cal-ISO about what the city really needs — one, two, or three peakers, or maybe none at all. Maxwell’s resolution includes a caveat that the city must determine if needs could be met by building smaller plants with fewer than the four turbines currently proposed.

Peskin, who chairs the city’s Government Audit and Oversight Committee and will hear both Alioto-Pier resolutions on May 5, as well as the Maxwell plan to move to build the peakers, told us, "This is one of the toughest decisions that’s been before me in the eight years that I’ve been on the Board of Supervisors."

No one, it seems, really wants to build two fossil fuel–burning power plants on San Francisco soil. But what if they weren’t on our soil? What if they were floating on barges?

Another resolution pending in the Land Use Committee, brought by Mirkarimi, proposes putting the two power plants on barges, which could be moored alongside the city when needed and dispatched elsewhere when they’re not. What if, a few years from now, citizens are able to cut down their power needs, CCA brings more renewables online, and the city finds it no longer needs the 200 megawatts generated by natural gas power plants?

Proponents say it’s an option worth considering if the city really intends to eventually close the plants. Dismantling a facility if the city decides to sell leaches away 20 to 30 percent of its overall cost. But if it’s on a barge, the natural gas, electricity, and mooring lines are simply cast off. A barge would be steadier in an earthquake and continue to float if the sea level rises — a climate change scenario that could swamp both current bayside power plant sites. Barges also can be dispatched to emergencies, leased down the river to other cities in the Bay Area, or sold for a profit. They’ve been in use around the world since the 1940s and have been called a more regional approach to energy planning.

"It’s 145 MW of portable energy," said Rick Galbreath, Mirkarimi’s aide. "You can pull it up, plug it in, and you’re on the grid. It’s really a dynamic solution."

Paul Fenn, the brain behind the city’s CCA plan, points out that if CAL-ISO still insists the peakers are needed now but not in the future, a power barge is the kind of flexible solution that could pay off in the long run. "It’s making a temporary measure for an urgent situation," he said, adding that such a temporary solution should reflect the city’s long-term goals. "If the city is planning to replace them with renewables, it’s important to get the city to make that commitment. This is one of those strategic decisions that’s going to impact the future."

The San Francisco Bay Conservation and Development Commission generally opposes building anything in the bay if it can be built on land first. "The proponents would have to do an analysis and convince our commission that this is really a good idea for the region," said Will Travis, a BCDC spokesperson.

But Dave Nickerson, owner of Houston-based Power Barge Corporation, said he’s looked at the city’s peaker plans and thinks it would cost about $100 million to build a three-CT barge. "We would probably build the plant here and ship it up," he said, pointing out that the city’s turbines are already in storage down in Texas and it’s cheaper to build it in a shipyard. To claims of environmental degradation, he says, "It would have the environmental footprint of a state of the art land-based plant."

He also pointed out that there’s a scarcity of these particular turbines now, which are worth about $1 million more every year. This year it’s around $16.5 million apiece, with $18 million as the projected 2008 price.

Emma Lierley contributed to this story.

PG&E’s attack on CCA

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EDITORIAL It’s a bit odd (if not terribly surprising) that the San Francisco Chronicle ran a front-page story April 16 on public power and alternatives to Pacific Gas and Electric Co. — and almost entirely ignored what’s going on in the paper’s hometown. And it’s striking (if, again, not surprising) that the story, by Kelly Zito, allowed a dubious expert from the University of California at Berkeley, who never supported public power and generally supports private sector and deregulation efforts to undermine, without rebuttal, the community-based anti-PG&E efforts.

But in the midst of this journalistic train wreck was the nut of a fascinating story: PG&E is on the ropes as communities try to find more renewable energy supplies — and is fighting back in ways that are demonstrably illegal.

There’s a message here for San Francisco, where plans for community choice aggregation are moving along slowly but steadily. The giant private utility will be trying to sabotage the efforts here, and City Attorney Dennis Herrera needs to be moving — now — to make sure there’s no illegal interference.

The focus of Zito’s story was Marin County, where there’s an active and aggressive move to create a CCA (community choice aggregation) system that would replace PG&E as an energy supplier in 11 cities. The program would function as a buyers’ co-op, purchasing electricity in bulk for all of the businesses and residents in those communities, then using PG&E’s lines to transmit the power to customers. Marin is pushing the environmental angle: PG&E uses at most 12 percent renewable power, and Marin Clean Energy can offer consumers 100 percent green power. While that option might cost a bit more (an additional $5 per month for the average customer) Marin’s CCA also says it can offer a 50 percent renewable option that meets or beats PG&E’s rates.

The Chronicle‘s expert, UC Berkeley professor Severin Borenstein, is quoted as saying that it’s risky for cities to get into the electricity business. But that’s just horse pucky: cities have been in the power business for as long as there’s been electric power. In the Bay Area, Alameda, Palo Alto, and Santa Clara all have established successful public power agencies — and all have cheaper rates than PG&E.

The state law authorizing CCA programs bars PG&E, a regulated utility, from lobbying against their implementation. In fact, in hearings before the state Pubic Utilities Commission, the company promised it would be neutral toward CCAs and wouldn’t try to discourage its customers from joining the public programs.

But in the Central Valley, where a group called the San Joaquin Valley Power Authority has been trying to create a broad-based CCA, PG&E has admitted it illegally tried to scotch the deal. Lawyers for the SJVPA filed a complaint with the CPUC, and on April 10, PG&E settled in a way that clearly admitted guilt. The company agreed to cease its illegal lobbying and pay the SVJPA $450,000 in legal fees.

It was a significant victory for public power — and San Francisco needs to make it clear right now that it will fight just as vigorously to stop PG&E interference in its own CCA efforts. The CPUC is accepting comments on the settlement, and Herrera should file a statement supporting SVJPA, in effect putting PG&E on notice that it will face immediate, furious legal action if it dares try to undermine a San Francisco CCA. Herrera also needs to put a legal team together to prepare to fight PG&E as the city’s own plan moves forward.

It’s embarrassing that San Francisco — the only city in the United States with a congressional mandate to run a public power system — is behind Marin County and the Central Valley in getting its own CCA up and running. But the process is moving forward€. And the city needs to be starting its own marketing campaign to inform the public that cheaper, greener power is on the way.

Marin has been sending out fliers showing how effectively the CCA can replace fossil-fuel and nuclear generation with greener energy options. The county has clear information about lower prices and consistent efforts to fight global warming. San Francisco is lagging here — and it’s time to get on the stick.

Editor’s Notes

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› tredmond@sfbg.com

A couple of decades ago, the American Civil Liberties Union sued San Francisco over the cross on Mount Davidson. The issue was pretty simple — a religious symbol on public land — but the furor was insane: critics attacked the ACLU up, down, and sideways and acted as if the separation of church and state was some form of blasphemy.

Yes: even in this tolerant, secular city, people get amazingly bent out of shape over this stuff. In fact, when I called Mission Police Station this week and asked why churches are allowed to use the middle of Guerrero Street for free parking on Sundays, Sgt. Larry Gray tried to talk me down.

"Tim, Tim, you don’t want to go up this tree," Gray, who is a charming and funny man, told me.

Sorry, Sarge, but I’m going there.

See, if you live in the Mission, it’s pretty hard to ignore. Double parking and parking in the medians is strictly illegal, and people get stiff tickets for it — except on Sunday morning, when churchgoers get a complete pass.

The churches don’t have to get permits or pay the city a fee or anything. According to Gray, there really aren’t any rules. The cops just look the other way.

"It’s a San Francisco tradition that goes back a hundred years," Gray told me. "They used to do the same thing with horses and buggies."

I know, I know, tradition and all. Last Sunday was Easter, for Christ’s sake, and I ought to give the believers a break. And on one level, it’s not that big a deal at all. The streets are still passable, mostly, although it’s a little more dicey for bikes and cars to coexist on a narrower strip of pavement. Traffic isn’t a big deal on Sundays (mostly), and if it is, people shouldn’t be driving so much anyway.

But nobody else gets to do this.

If you go to see the (secular) Mime Troupe in Dolores Park and you stick your car in the middle of the street, you get a ticket. If you drink at a (secular) bar or eat at a (secular) restaurant and you leave your car in the Valencia Street median, you get cited. You can’t double park while you run in for a (secular) cup of coffee at Muddy Waters.

So, with all due apologies to Sgt. Gray and the good people of faith, I have to ask again: Why do the churches get something nobody that else does? Am I the only one who thinks this is a bit sketchy?

I continue to get calls from people who are furious about the state’s plan to spray chemical pheromones from helicopters over San Francisco in August as a way to wipe out the Light Brown Apple Moth. Assemblymember Mark Leno and state Senator Carole Migden both are fighting it. Mayor Gavin Newsom wrote the governor this week to urge a health study before the spraying starts.

An environmental impact report is underway, but the state and the feds are calling this an emergency (the LBAM damages crops) and they’re planning to go forward no matter what.

I fear the only way to stop this is in court, with a challenge to the EIR — its timing, validity, the emergency declaration, etc. City Attorney Dennis Herrera ought to take this on. Thousands of people with young kids in the path of the spray would be immensely grateful.

Obama’s party at the Fairmont Hotel

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Finally settled in at the Fairmont downtown after searching fruitlessly in the beginning for a wireless connection.

The most significant thing I’ve seen so far tonight is Oakland City Attorney John Russo throwing his weight behind Obama and MCing tonight’s event. Last night we saw San Francisco City Attorney Dennis Herrera at a rally for Hillary attended by Bill Clinton, Gavin Newsom, Carole Migden and Oakland Vice Mayor Henry Chang.

So now at least we know who wants to return has-been bureaucrats to Washington and who might actually be interested in some original ideas at the federal level. We haven’t seen much talk from analysts about what an Obama cabinet might look like, but for some of us, that’s one of the most intriguing questions of all.

The zoo at City Hall

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› news@sfbg.com

City Hall looked like feeding time at a popular new zoo exhibit on the morning of Jan. 11. Hundreds of people spilled from a cramped fourth-floor hearing room. The aisles bristled with television cameras and microphones. But the only animals on display were officials of the privately managed San Francisco Zoo.

A little more than two weeks after a Siberian tiger escaped her undersized enclosure before killing a young man and badly injuring two of his companions, the Recreation and Park Commission and the Joint Zoo Committee summoned Zoo management to discuss the tragedy. But after hours of staff presentations and public testimony, many in attendance doubted whether the same public officials and private managers who failed to prevent the grisly Christmas Day mauling should be trusted to point the correct way forward.

"To have Rec and Park and the Joint Zoo Committee hold the hearing is inappropriate at best," animal welfare activist Deniz Bolbol told the Guardian after the meeting adjourned. "This is the same committee that has basically rubber-stamped every management arrangement at the Zoo for the last 14, 15 years."

In 1993 the city handed over control of the Zoo to the private San Francisco Zoological Society but retained ownership of the property and the animals housed there. The makeup of the Joint Zoo Committee, which is charged with overseeing the society’s management, reflects this hybridized public-private arrangement. Three members of the city’s Recreation and Park Commission sit on the body, as do three members of the Zoological Society’s board of directors. According to Bolbol and other critics, the committee gives the private Zoo managers too long a leash.

"It’s a joke," Bolbol charged, "because basically, you’re asking them to self-regulate. You go to their meetings and there’s never one dissenting voice. Anytime anyone in the public says anything critical, they just sweep it under the rug."

The main argument for Zoo privatization was a lack of city money for needed improvements. And without a doubt, the Zoological Society has raised lots of cash since it took over. In addition to the $4 million dollars per year it receives from city taxpayers, the society waged a successful ballot campaign in 1997 for nearly $50 million in public bond money and has raised almost that much in private donations. But controversy surrounds how these windfalls have been spent and how the Zoo’s private management has decided to operate the facility.

Past Guardian investigations turned up disturbing cases of animal suffering and lax safety standards (see "The Zoo Blues," 5/19/99, and "The Zoo’s Losers," 5/7/2003) on the society’s watch. Many animals have died of diseases associated with unclean living conditions and cramped quarters. The same Siberian tiger that escaped her outdoor grotto enclosure and killed the young man Christmas Day mangled a keeper’s arm in late 2006. And last week’s cover story, "Tiger Tales," uncovered accounts of past tiger escapes from the same grotto.

Nick Podell, chair of the society’s board of directors, makes no apologies for his organization’s focus on the bottom line. "The primary function of the board is the raising of capital," he told us at the Friday hearing, adding, "We rely heavily on professional management for day-to-day operations."

When we asked Podell whether Zoo manager Manuel Mollinedo, who reportedly makes more than $330,000 per year, conducted a review of the outdoor grotto enclosure in the wake of the 2006 attack, Podell fiercely defended Mollinedo but declined to comment directly, citing "active litigation." Shortly after the Christmas Day incident, Mollinedo acknowledged publicly that the grotto’s walls were more than four feet lower than national standards. Nonetheless, Podell told us he believes the director "is being railroaded and lynched."

But critics of the privatization deal have renewed calls for greater scrutiny. "I’ve always been skeptical of this public-private arrangement," Sup. Tom Ammiano told the Guardian by phone. "[Zoological Society leaders] look at what makes a profit first. In itself, that’s not bad, but what are you sacrificing with that?"

City taxpayers will most likely sacrifice plenty in lawsuit awards and legal bills. Within a week of the Christmas Day debacle, the surviving victims hired celebrity lawyer Mark Geragos. City Attorney Dennis Herrera and his staff have already spent numerous billable hours jousting with Geragos in a high-profile spate over potential evidence. During the public hearing, Herrera and Geragos were down the street in Superior Court arguing over whether the city can search the victims’ car and their cell phones. As Ammiano put it, "This whole thing is probably going to be in lawyer land for a good while to come."

In the end, the privatization of the Zoo — hailed by advocates as the best way to bring needed funds to the facility — could very well cost taxpayers even more than expected. Indemnification clauses in the Zoo contract ostensibly absolve San Francisco of any legal jeopardy, but a separate clause clearly states that the city is liable for any "preexisting conditions." The grotto breached by the tiger on Christmas Day is almost 70 years old.

Officials won’t speak on the record about potential city liability, but they privately say they won’t be surprised if there are legal battles between the society and San Francisco over who has to pay the victims. Further blurring the line between the public and the private sector, the society has retained the services of former city attorney Louise Renne — the very person who negotiated the original lease agreement on behalf of the city. At the hearing, she told us she did not expect any problems between her former boss, the city, and her new client, the Zoo. "But to tell you the truth," she added with a smile, "I haven’t even looked at [the agreement] in years."

Sup. Sean Elsbernd, whose district includes the Zoo, voiced support for keeping the facility in private hands. But he did pledge that "if it comes down to a question of whether the city will pay for anything [the Zoological Society] did negligently, we will not…. They will pay for their negligence if negligence is found." Elsbernd has scheduled a hearing on the Zoo’s woes for Jan. 28 before the Government and Oversight Committee, which he chairs, while Sup. Ross Mirkarimi has called for a hearing by the Budget Committee.

Ammiano told us, "The history of the Zoo has been controversial, especially since [privatization], and we just need to be brutally honest about everything."

Jew resigns; Newsom cagey about replacement

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Sup. Ed Jew, shown here at a previous court appearance, has been under pressure to resign since last May.
Photo by Charles Russo

Nearly eight months after FBI agents found $40,000 in allegedly extorted cash during raids on his home and office, Ed Jew has resigned from his District 4 seat on the Board of Supervisors, effective at noon tomorrow.

The negotiated deal – announced today by Jew attorney Stuart Hanlon and City Attorney Dennis Herrera – calls for the city to drop its official misconduct and quo warranto actions against Jew in exchange for his resignation, relinquishing any potential claims against the city, and pledging not to seek any public office for at least five years.

“I cannot continue to fight all the battles I’m now facing,” Jew said in a statement read by Hanlon, referring to the criminal prosecutions that are still active, including federal charges of extorting money from the Quickly tapioca stores that faced permitting problems and local charges of perjury and voter fraud for allegedly not living in San Francisco when he ran for supervisor, which was the basis for the city’s efforts to remove him.

Mayor Gavin Newsom suspended Jew in September, replacing him with interim Sup. Carmen Chu. But during a press availability following the announcement of the Jew deal, Newsom was cagey about whether the job now belonged to Chu: “I will be meeting with Supervisor Chu later this afternoon and tomorrow I’ll make my determination.”