City Attorney Dennis Herrera

Survey shows Lee aligned with tenant advocates only half the time

The results of a mayoral candidates’ survey created by the Council of Community Housing Organizations (CCHO) offered some surprises. Based on candidates’ responses, venture capitalist Joanna Rees, one of the more conservative contenders, came across as a stronger advocate for affordable housing and tenants’ rights than interim Mayor Ed Lee, who previously defended tenants as an attorney with the Asian Law Caucus.

The survey posed 25 yes-or-no questions to mayoral hopefuls, formulated by CCHO, the San Francisco Tenants Union, and the Housing Rights Committee. A “Yes” answer meant the candidate was aligned with the housing advocates’ standpoint, a “No” response was frowned upon as contrary to advocates’ housing agenda, and a “?” signified the response, “I’ll consider it.”

All told, Lee responded “No” to six questions, “I’ll consider it” to seven questions, and “Yes” to 12 questions, demonstrating consistency with the housing advocates’ agenda about half the time. Rees, on the other hand, responded “No” to three questions, and “Yes” to every other question.

Other respondents included Public Defender Jeff Adachi, Sup. John Avalos, green party candidate Terry Joan Baum, Board President David Chiu, former Sup. Bevan Dufty, City Attorney Dennis Herrera, and Sen. Leland Yee.

Candidates who answered in the affirmative to every survey question were Avalos, Baum, and Yee. Dufty responded “No” to eight questions, and “I’ll consider it” to one. Chiu responded “Yes” to most questions and “I’ll consider it” to four questions, though there was some confusion as his response wasn’t listed every time.

There you have a summary of the scorecards. So what were the questions?

Every single candidate answered “Yes” to this one: “To make up for the huge State and Federal cutbacks in affordable housing funding, will you commit to placing a dedicated affordable housing funding measure on the November 2012 ballot of at least $100 million?”

So no matter who’s elected, housing advocates will have an opportunity to advance this idea.

Among the more divisive issues was the question of reforming condo conversion laws to regulate tenancies-in-common conversions, in order to stem depletion of affordable housing stock. Lee, Rees, and Dufty responded that they would not seek such reforms; Yee, Avalos, Adachi, and Baum said they would. Herrera declined to answer.

Candidates were also divided on whether the San Francisco Rent Board, which mitigates disputes between tenants and landlords, ought to be reformed to “increase tenant representation and balance appointments between the Mayor and Board of Supervisors?” Yee, Lee, Dufty, and Adachi rejected that idea.

And Lee stood alone in answering “no” to this question: “Will you enforce a balance between market-rate housing and affordable housing that fulfills the City’s adopted housing goals, even if such a linkage slows down the overproduction of luxury condos until a minimum level of affordable and middle income housing catches up?”

All others said they would, except Chiu, who said, “I’ll consider it.”

View the full results of the survey here.

LGBT leaders denounce attack on Herrera by the Chronicle

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Leaders of the LGBT community from across the political spectrum yesterday denounced the San Francisco Chronicle and the anonymous sources it relied on to question City Attorney Dennis Herrera’s early support for legalizing same-sex marriage, calling the paper’s front page article a thinly veiled political hit piece designed to hurt Herrera’s mayoral campaign.

That strong showing of support in the LGBT community and the view offered by many that the attack came from supporters of Mayor Ed Lee – including top former Newsom Administration officials, some of whom now work for Lee – could not only mitigate damage from the article but further sully a Lee election effort that is already marred by allegations of vote tampering, money laundering, and deceptive campaign tactics.

“Those who are saying this now anonymously are as cowardly as Dennis and Gavin were courageous back then,” said Deputy City Attorney Theresa Stewart, the lead attorney who defended San Francisco’s decision in 2004 to unilaterally issue marriage licenses to same-sax couples, in defiance of state and federal law, which eventually led to the legalizing of such unions. “We can’t have our community turn on us for petty political gain.”

“WTF, Chronicle?” was how Assemblymember Tom Ammiano began his speech, going on to lay blame for the attack on surrogates for Lee. Ammiano also called out the mayor for campaign finance violations by his supporters, for undermining the Healthy San Francisco program that was created by Ammiano’s legislation, and for repeatedly ordering police raids on the OccupySF encampment.

“How about some fucking leadership?!” Ammiano said.

Cleve Jones, an early gay rights leader who marched with Harvey Milk, also denounced Lee and his supporters for cronyism, vote tampering, money laundering, and the “fake grassroots” efforts of the various well-funded independent expenditure campaigns, which he said have fooled the Chronicle.

“To the Chronicle and that reporters – really? – this is what you do two weeks before the election? You should be ashamed of yourself,” Jones said. “How stupid do you think we are?”

Yet Chronicle City Editor Audrey Cooper defended the article and disputed the political motivations of its sources. “Clearly, I disagree [with the criticisms],” she told the Guardian. “I personally vetted every one of the sources and I’m confident everything we printed is true.”

Beyond criticizing the obvious political motivations behind the attack, speakers at the rally called the article bad journalism and said it was simply untrue to suggest that Herrera didn’t strongly support the effort to legalize same-sex marriage from the beginning.

“I can tell you that Dennis never once shrank from this fight. I was there, I know,” Stewart said, calling Herrera “a straight ally who’s devoted his heart and soul to this community.”

Sen. Mark Leno, who introduced the first bill legalizing same-sex marriage to clear the Legislature, emphasized that he isn’t endorsing any candidates for mayor and that he didn’t want to comment on the details of the article’s allegations. But he noted that even within the LGBT community, there were differences of opinion over the right timing and tactics for pushing the issue, and that Herrera has been a leader of the fight for marriage equality since the beginning.

“I am here to speak in defense of the character and integrity of our city attorney, Dennis Herrera,” Leno said, later adding, “I do not appreciate when the battle for our civil rights is used as a political football in the waning days of an election.”

Ammiano also noted that even if Herrera raised doubts in early meetings, that was entirely appropriate given his role as city attorney. “Even if there are some questions, they’re about helping, not hurting,” he said, expressing disgust at the Newsom Administration officials for turning on someone who was instrumental to defending the decision: “In my day, you valued your friendships.”

Molly McKay, one of the original plaintiffs in the civil lawsuit that followed San Francisco’s actions, teared up as she described the ups and downs that the case took, working closely with Herrera throughout. “But this is one of the strangest twists I can imagine,” she said of the attack by the Chronicle and its anonymous sources. “It’s ridiculous and despicable.”

Representatives for both the progressive Harvey Milk LGBT Democratic Club and fiscally conservative Alice B. Toklas LGBT Democratic Club also took to the microphone together, both saying they often disagree on issues, but they were each denouncing the attack and have both endorsed Herrera, largely because of his strong advocacy for the LGBT community.

Sup. Scott Wiener called Herrera, “One of the greatest straight allies we’ve every had as a community.”

When Herrera finally took the microphone, he thanked mayoral opponents Joanne Rees and Jeff Adachi for showing up at the event to help denounce the attack and said, “This is bigger than the mayor’s race. It’s bigger than me.”

He criticized those who would trivialize this issue for petty political gain and said, “It was my pleasure and honor to have been a part of this battle from the beginning – from the beginning – and I’ll be there in the end.”

The new attack on Herrera

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Well, the salvo coming from the Lee campaign trying to smear Dennis Herrera for not being a strong enough supporter of same-sex marraige shows at least one thing: The race is closer than the polls are reporting.

For the former staffers of Gavin Newsom — and everyone knows who they are, because there weren’t that many people in those meetings — to come forward two weeks before the election with these allegations was a serious political risk. For starters, Herrera is really popular in the LGBT community, and already, much of the city’s queer leadership (including Tom Ammiano, Mark Leno and Scott Wiener) has responded by denouncing the attack. The three, along with Phyllis Lyon and representatives of both major clubs, Harvey and Alice, will be holding a press conference Oct. 27 in the Castro. A letter that went out today under Lyon’s name notes:

A petty smear campaign is underway to personally discredit City Attorney Dennis Herrera over his years of work for marriage equality.  Incredibly, despite all the heroic efforts of Dennis and his office right from the start, anonymous sources have pushed a story in the San Francisco Chronicle that Dennis wasn’t “supportive” of Mayor Newsom’s decision to issue same-sex marriage licenses back in February 2004.  It’s not true.  These politically motivated attackers are hoping we’ll forget the years of hard work Dennis and his deputies invested — and continue to invest even now, in the federal challenge to Prop 8 — for LGBT equality.

So this could easily backfire and wind up focusing attention on all of Herrera’s LGBT support.

It’s also a risk for Lee. Although his name isn’t on any of this, his people are clearly behind it; Newsom (who just endorsed Lee) and his former staffers (some of whom are now Lee’s staffers) wouldn’t have contacted the Chronicle and pushed this story without the knowledge and permission of the mayor and his senior campaign people. Wiener, who is often one of Lee’s allies on the board, is clearly unhappy about the blast at his former boss. Leno, who isn’t involved in the election all, is now going to be pissed at the mayor. And if this winds up looking like a Lee-sponsored political swipe at an LGBT community ally, Lee’s going to lose votes and support.

So why do it? It makes no sense — Lee has tried to appear as the candidate of civility and reason, above the mudslinging fray. He’s trying to act so much like the inevitable winner that he doesn’t even show up for a lot of the debates and forums. There’s no point in dishing this kind of story up — unless the Lee camp has polling data showing the race tightenting and Herrera emerging as a serious challenger.

It’s a pretty basic rule in campaigns: You don’t risk political capital attacking candidates who are no threat to you. So if I were Herrera, I’d be mad — but also encouraged. They’re obviously worried.

Lee’s talking points sound familiar

Interim Mayor Ed Lee released a 17-point jobs plan last week as part of his bid for mayor, prompting City Attorney Dennis Herrera to accuse the interim mayor of “plagiarism” since Herrera, also a contender for mayor, issued a 17-point jobs plan himself earlier this year.

Herrera’s campaign also criticized Lee for ending his plan with Herrera’s signature slogan, “a city that works.”

But Herrera isn’t the only mayoral candidate for whom Lee’s campaign rhetoric rings a bell. Board President David Chiu, who attracted a great deal of attention earlier this year for his statement that supervisors are elected not to take positions but to “get things done,” seems to have served as a muse to the campaign consultants who thought up Lee’s campaign slogan: “Ed Lee Gets it Done.”

(Which — is it just me? — or does having that phrase plastered everywhere bring to mind something more like this?):

http://www.youtube.com/watch?v=OnDO5VTge6w

Lee’s “new era of civility in City Hall,” meanwhile, closely echoes language Chiu has used on the campaign trail. At a campaign stop in June, Chiu told a room of supporters that before civility was restored this year, “City government was frankly pretty dysfunctional.” Politicians from different political factions bickered with one another, he said, and “they literally couldn’t even sit in the same room.”

At an Aug. 11 rally, Lee told supporters, “We have changed the tone in which we run government,” and added, “I still have in my mind the screaming and the yelling” that the city family used to engage in. 

A few more striking similarities, taken from the candidates’ respective campaign websites:

*  David Chiu says he’ll “Prioritize hiring of local residents.”
*  Ed Lee says he’ll “Hire San Franciscans.”

*  David Chiu says he’ll “Invest in community institutions and infrastructure.”
*  Ed Lee says he’ll “Invest in infrastructure jobs.”

*  David Chiu says he’ll “Support the continued growth of the technology sector.”
*  Ed Lee says he’ll “Attract & grow the jobs of the future.”

*  David Chiu says he’ll “[Expand] the impact of SFMade.”
*  Ed Lee says he’ll “Revive local manufacturing – ‘Made in San Francisco.’”

*  David Chiu says he’ll “Fill vacant storefronts.”
*  Ed Lee says he’ll “Improve blighted areas.”

*  David Chiu says he’ll “Reform our broken business tax. San Francisco is the only city in California that levies a tax on businesses exclusively on payroll.”
*  Ed Lee says he’ll “Reform the Payroll tax  … Mayor Lee knows that San Francisco’s current business tax structure punishes job creation when it should reward it.”

Asked to comment on the remarkable similarities in campaign materials, Lee spokesperson Tony Winnicker told the Guardian, “It’s just another baseless attack from Dennis Herrera’s campaign, only this one sounds like he’s in the third grade.

“Mayor Lee has been giving small business loans and recruiting new jobs to San Francisco from his first days as Mayor,” Winnicker continued. “His economic plan builds on the good work and projects underway and includes many genuinely new ideas to create even more jobs for the future.”

Winnicker added, “As for President Chiu, it’s no surprise that he and Mayor Lee would share many views on how to create jobs for our City as they’ve worked together closely on many issues throughout the year. He thinks President Chiu has many good ideas in addition to Mayor Lee’s own new proposals in our 17-point economic plan. Mayor Lee looks forward to continuing to work with Board President Chiu to create jobs for every neighborhood of our City.”

Lee under pressure for contract disclosure law violations

By Lisa Carmack

Mayor Ed Lee has allegedly failed to file 67 reports detailing contracts worth $50,000 or more with the San Francisco Ethics Commission.

Lee has come under attack by fellow candidate City Attorney Dennis Herrera, who claimed that he has “repeatedly delayed filing his required disclosure forms.”

“I’m not aware of specific delays yet, but any time we get a notice and our campaign is reviewed, everything we’re supposed to file as far as I know, we’re in compliance,” Lee said when asked about the claims.

According to city law, any elected official who approves contracts worth $50,000 or more is required to file a report within five days of approval. The requirement serves as a safeguard against illegal campaign contributions, since the city’s Campaign Finance Reform Ordinance bars officials from receiving contributions from vendors within six months of contract approval.

“It just came to my attention today,” said the executive director of Ethics Commission John St. Croix. “We’re gonna have to talk to him and his folks about why these reports have been excessively late.”

On Oct. 5, Herrera publicized records listing each time Lee failed to comply with the ordinance since becoming interim mayor in January of this year.

Whether or not punitive actions will be taken is up to the Ethics Commission. “In this case we have to investigate first,” said St. Croix, adding that while the agency would look into the matter, he could neither confirm nor deny the existence of an official investigation. “I’m not aware of any other entity that files late on a routine basis.”

On Guard!

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news@sfbg.com

BART’S CRACKDOWN

For weeks now, protesters have descended on Bay Area Rapid Transit (BART) stations to denounce the fatal July 3 shooting of homeless passenger Charles Hill by a BART Police officer, and to call for the agency’s long-controversial police force to be disbanded. Commuters have had to contend with service disruptions and delays, and costs to the transit agency have exceeded $300,000. Yet it isn’t just bullhorn-wielding protesters who’ve been thrust into the spotlight — BART’s police force is also facing scrutiny for its conduct under pressure.

BART drew the ire of numerous media outlets after a Sept. 8 protest when transit cops detained members of the press along with protesters on suspected violation of California Penal Code Section 369i, which prohibits interfering with the operations of a railroad. Most journalists were eventually released, but the protest resulted in 24 arrests.

Although BART police later contended that they issued dispersal orders prior to closing in, many who were encircled and detained (including me) insisted they’d heard no such announcement. BART police also instructed San Francisco Police Department (SFPD) officers who were on hand to assist to seize reporters’ SFPD-issued press passes — a move that SFPD spokesperson Troy Dangerfield later told the Guardian was an error that went against normal SFPD protocol.

In a Sept. 10 editorial, the San Francisco Chronicle blasted BART police for placing Chronicle reporter Vivian Ho in handcuffs despite being informed that she was there as a journalist. Ho’s experience was mild compared with that of Indybay reporter David Morse (aka Dave Id), who told the Guardian he was singled out for arrest by BART Deputy Police Chief Daniel Hartwig and isolated from the scene — even though Hartwig is familiar with Morse and knows he’s been covering protests and BART board meetings for the free online publication. Asked why Morse was arrested when other journalists detained for the same violation were released, BART spokesperson Jim Allison told us, “The courts will answer that, won’t they?”

No Justice, No BART — a group that was instrumental in organizing the Sept. 8 protest — telegraphed to media and police at the outset that they intended to test BART’s assertions that people’s constitutionally guaranteed rights to free speech would be upheld as long as they remained outside the paid areas of the station, in what was dubbed a “free speech zone.” (Rebecca Bowe)

 

CHRON VS. WIENER(S)

Scott Wiener tried to do something eminently reasonable, and ask the naked guys in the Castro to put down a towel before they sit on public benches. Although the Department of Public Health hasn’t made any statements about the issue (and people put their naked butts on public toilet seats without creating major social problems), it’s pretty much an ick factor thing — and using a towel is an unwritten (sometimes written) rule at almost every nudist resort in the country.

The whole thing is a bit ironic, since it’s already illegal for fully clothed poor people to sit on the street — but so far, it’s not illegal for naked people to sit on benches. So far.

Wiener’s move set off an anti-nudity campaign at the San Francisco Chronicle, starting with columnist C.W. Nevius suggesting that the nudies are all perverts: “If these guys were opening a trench coat and exposing themselves to bystanders in a supermarket parking lot we’d call them creeps.” A Chron editorial called for a new law banning nudity in the city (an excellent use of time for a police department that already says it can’t afford community policing). The national (right-wing) press is having a field day. The commenters on sfbg.com are arguing about whether the pantsless men are shedding scrotal hair, or whether they’re mostly shaved. For the record, we haven’t checked.

And for the record, in a couple of months it’s going to get way too cold and rainy for this sort of thing anyway. (Tim Redmond)

 

HERRERA’S SMACKDOWNS

City Attorney Dennis Herrera has always been limited by his office’s neutral role in criticizing city policies and officials. But as a mayoral candidate, he seems to have really discovered his political voice, offering more full-throated criticisms of Mayor Ed Lee and his policies than any of the other top-tier candidates.

“I think it’s kind of liberating for him that he can talk policy instead of just about legal issues,” Herrera’s longtime spokesperson Matt Dorsey, who recently took a leave from his city job to work on the campaign full-time, told the Guardian.

Perhaps not surprisingly, Herrera’s shift began a little more than a month ago when Lee bowed to pressure from Willie Brown, Rose Pak, and other top power brokers to get into mayor’s race, prompting Herrera’s biting analysis that, “Ed Lee’s biggest problem isn’t that he’s a dishonest man — it’s that he’s not his own man. The fact is, if Ed Lee is elected mayor, powerful people will continue to insist on things. And I don’t think San Franciscans can be blamed for having serious doubts about whether Ed Lee would have the courage to say no.”

Herrera followed up last week by providing an example of something Lee and most other mayoral candidates don’t have the courage to say no to: the Central Subway project, with its runaway price tag and growing number of critics that say it’s a wasteful and inefficient boondoggle that will worsen Muni’s operating budget deficit.

“Fiascos aren’t born that way. They typically grow from the seeds of worthy idea, and their laudable promise is betrayed in subtle increments over time,” was how Herrera began a paper he released Sept. 8 called “It’s time to rethink the Central Subway,” in which he calls for a reevaluation of a project that he and the entire Board of Supervisors once supported.

He notes that the project’s costs have tripled and its design flaws have been criticized by the Civil Grand Jury and numerous transit experts. “Let’s look at this thing and see if it still makes sense,” Herrera told us, a stand that was greeted as blasphemy from the project’s supporters in Chinatown, who called at least two press conferences to decry that they called a “cheap political stunt.”

While the stand does indeed help distinguish Herrera from a crowded mayoral field, he insists that it was the grand jury report and other critiques that prompted him to raise the issue. “Good policy is good politics, so let’s have a debate on it and let the validity of the project stand or fall on its merits,” he said.

Herrera and fellow candidate John Avalos were also the ones who called out Lee on Sept. 2 for praising Pacific Gas & Electric Co. as “a great company that get it” for contributing $250,000 to a literacy program, despite PG&E’s deadly negligence in the San Bruno pipeline explosion and its spending of tens of millions of dollars to sabotage public power efforts and otherwise corrupt the political process.

“It shows insensitivity to victims’ families, and poor judgment for allowing his office to be used as a corporate PR tool. No less troubling, it ignores the serious work my office and others have done to protect San Franciscans from PG&E’s negligence,” Herrera said in a prepared statement.

Now, his rhetoric isn’t quite up to that of Green Party mayoral candidate Terry Baum, who last week called for PG&E executives to be jailed for their negligence, but it’s not bad for a lawyerly type. Herrera insists that he’s always wielded a big stick, expressed through filing public interest lawsuits rather than campaign missives, “but the motivation in how I do either is not really different.” (Steven T. Jones)

 

JACK IS BACK

The mayor’s race just got a new player, someone who is guaranteed to liven things up. His name is Jack Davis — and he’s already gone on the attack.

Davis, the infamous bad boy of political consulting who is so feared that Gavin Newsom paid him handsomely just to stay out of the 2003 mayor’s race, has been keeping a low profile of late. But he’s come out of semi-retirement to work for Jeff Adachi, the public defender who is both running for mayor and promoting Prop. D, his pension-reform plan.

Davis and Adachi first bonded when Adachi ran against appointed incumbent Kim Burton in 2002. Now, Davis has begun firing away at Mayor Ed Lee, with a new mailer that calls the competing Lee pension plan a “backroom deal.” The piece features a shadowy figure (who looks nothing like Ed Lee) slipping through a closing door, a fancy ashtray full of cigars and an allegation that Lee gave the cops a sweet pension deal in exchange for the police union endorsement.

Trust us, that’s just the start. (tr)

 

PENSION PALS

Meanwhile, Adachi sent Lee a letter on Sept. 8 challenging him to debate the merits of their rival pension measures — Lee spearheaded the creation of Prop. C, with input from labor unions and other stakeholders — sometime in the next month.

“I believe there is a vital need — if not an obligation — for us to ensure that the voters of San Francisco understand both the severity of our pension crisis as well as the significant differences between our two proposals,” Adachi wrote, later adding, “As the two principals behind the competing ballot measures, I hope that we can work together to increase awareness of this important issue and work toward a better future for our city.”

Lee’s campaign didn’t respond directly to Adachi, but Lee’s ever-caustic campaign spokesperson Tony Winnicker told the Guardian that the request was “the oldest political trick in book” and one they were rejecting, going on to say, “Voters deserve to hear from all the candidates on pension reform, not just two of them.”

Perhaps, but given the mind-numbing minutiae that differentiates the two measures, some kind of public airing of their differences might be good for all of us. Or I suppose we can just trust all those dueling mailers headed our way, right? (stj)

For more, visit our Politics blog at www.sfbg.com.

Team Avalos

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When Supervisor John Avalos chaired the Budget & Finance Committee in 2009 and 2010, his office became a bustling place in the thick of the budget process. To gain insight on the real-life effects of the mayor’s proposed spending cuts, Avalos and his City Hall staff played host to neighborhood service providers, youth workers, homeless advocates, labor leaders, and other San Franciscans who stood to be directly impacted by the axe that would fall when the final budget was approved. They camped out in City Hall together for hours, puzzling over which items they could live without, and which required a steadfast demand for funding restoration.

“One year, we even brought them into the mayor’s office,” for an eleventh-hour negotiating session held in the wee morning hours, recounted Avalos’ legislative aide, Raquel Redondiez. That move came much to the dismay of Steve Kawa, mayoral chief of staff.

Avalos, the 47-year-old District 11 supervisor, exudes a down-to-earth vibe that’s rare in politicians, and tends to display a balanced temperament even in the heat of high-stakes political clashes. He travels to and from mayoral debates by bicycle. He quotes classic song lyrics during full board meetings, keeps a record player and vinyl collection in his office, and recently showed up at the Mission dive bar El Rio to judge a dance competition for the wildly popular Hard French dance party.

Yet casual observers may not be as familiar with the style Avalos brings to conducting day-to-day business at City Hall, an approach exemplified that summer night in 2010 when he showed up to the mayor’s office flanked by grassroots advocates bent on preserving key programs.

“My role is, I’m an insider, … but it’s really been about bringing in the outside to have a voice on the inside,” Avalos said in a recent interview. “People have always been camped out in my office. These are people who represent constituencies — seniors, recipients of mental health care, unions, people concerned about violence. It’s how we change things in City Hall. It’s making government more effective at promoting opportunities, justice, and greater livelihood.” Part of the thrust behind his candidacy, he added, is this: “We want to be able to have a campaign that’s about a movement.”

That makes Avalos different from the other candidates — but it also raises a crucial question. Some of the most important advances in progressive politics in San Francisco have come not just from electoral victories, but from losing campaigns that galvanized the left. Tom Ammiano in 1999 and Matt Gonzalez in 2003 played that role. Can Avalos mount both a winning campaign — and one that, win or lose, will have a lasting impact on the city?

Workers and families

No budget with such deep spending cuts could have left all stakeholders happy once the dust settled, but Avalos and other progressive supervisors did manage to siphon some funding away from the city’s robust police and fire departments in order to restore key programs in a highly controversial move.

“There’s a Johnny Cash song I really like, written by Tom Petty, called ‘I Won’t Back Down.’ I sang it during that time, because I didn’t back down,” Avalos said at an Aug. 30 mayoral forum hosted by the Potrero Hill Democratic Club. “We made … a symbolic cut, showing that there was a real inequity about how we were doing our budgets. Without impacting public safety services, we were able to get $6 million from the Fire Department. A lot of that went into Rec & Park, and health care programs, and to education programs, and we were able to … find more fat in the Police Department budget than anybody had ever found before, about $3 million.”

Last November, Avalos placed a successful measure on the ballot to increase the city’s real-estate transfer tax, which so far has amassed around $45 million in new revenue for city coffers, softening the blow to critical programs in the latest round of budget negotiations. “Without these measures that community groups, residents, and labor organizations worked for, Mayor Ed Lee would not have been able to balance the budget,” Avalos said.

More recently, he emerged as a champion of the city’s Local Hire Ordinance, designed as a tool for job creation that requires employers at new construction projects to select San Francisco residents for half their work crews, to be phased in over the next several years. That landmark legislation was a year in the making, Redondiez said, describing how union representatives, workers, contractors, unemployed residents of Chinatown and the Bayview, and others cycled through Avalos’ City Hall office to provide input.

His collaborative style stems in part from his background. Avalos formerly worked for Service Employees International Union Local 1877, where he organized janitors, and served as political director for Coleman Advocates for Children & Youth. He was also a legislative aide to former District 6 Sup. Chris Daly, who remains a lightning rod in the San Francisco political landscape.

Before wading into the fray of San Francisco politics, Avalos earned a masters degree in social work from San Francisco State University. But when he first arrived in the city in 1989, with few connections and barely any money to his name, he took a gig at a coffee cart. He was a Latino kid originally from Wilmington, Calif. whose dad was a longshoreman and whose mom was an office worker, and he’d endured a climate of discrimination throughout his teenage years at Andover High in Andover, Mass.

Roughly a decade ago, Avalos and a group of youth advocates were arrested in Oakland following a protest against Proposition 21, which increased criminal penalties for crimes committed by youth. Booked into custody along with him was his wife, Karen Zapata, whom he married around the same time. She is now a public school teacher in San Francisco and the mother of their two children, ages 6 and 9, both enrolled in public schools.

“John has consistently been a voice for disenfranchised populations in this city,” said Sharen Hewitt, who’s known Avalos for more than a decade and serves as executive director of The Community Leadership Academy & Emergency Response Project (CLAER), an organization formed to respond to a rash of homicides and alleviate violence. “He understands that San Francisco is at a major turning point in terms of its ability to keep families and low-income communities housed. With the local hiring ordinance, most of us who have been working around violence prevention agree — at the core of this horrible set of symptoms are root causes, stemming from economic disparity.”

Asked about his top priorities, Avalos will invariably express his desire to keep working families rooted in San Francisco. District 11, which spans the Excelsior, Ingleside, and other southeastern neighborhoods, encompasses multiracial neighborhoods made up of single-family homes — and many have been blunted with foreclosure since the onset of the economic crisis.

“Our motto for building housing in San Francisco is we build all this luxury housing — it’s a form of voodoo economics,” Avalos told a small group of supporters at a recent campaign stop in Bernal Heights. “I want to have a new model for how we build housing in San Francisco. How can we help [working-class homeowners] modify their loans to make if more flexible, so they can stay here?” He’s floated the idea of creating an affordable housing bond to aid in the construction of new affordable housing units as well as loan modifications to prevent foreclosures.

“That’s what is the biggest threat to San Francisco, is losing the working-class,” said community activist Giuliana Milanese, who previously worked with Avalos at Coleman Advocates for Youth and has volunteered for his campaign. “And he’s the best fighter. Basically, economic justice is his bottom line.”

Tenants Union director Ted Gullicksen gave Avalos his seal of approval when contacted by the Guardian, saying he has “a 100 percent voting record for tenants,” despite having fewer tenants in his district than some of his colleagues. “David Chiu, had he not voted for Parkmerced, could have been competitive with John,” Gullicksen said. “But the Parkmerced thing was huge, so now it’s very difficult to even have David in same ballpark. Dennis [Herrera] has always taken the right positions — but he’s never had to vote on anything,” he said. “After that, nobody comes close.”

Cash poor, community rich

There’s no question: The Avalos for Mayor campaign faces an uphill climb. Recent poll figures offering an early snapshot of the crowded field peg him at roughly 4 percent, trailing behind candidates with stronger citywide name recognition like City Attorney Dennis Herrera or the incumbent, Mayor Ed Lee, who hasn’t accepted public financing and stands to benefit from deep-pocketed backers with ties to big business.

Yet as Assembly Member Tom Ammiano phrased it, “he’s actually given progressives a place to roost. He doesn’t pussy-foot around on the issues that are important,” making him a natural choice for San Francisco voters who care more about stemming the tides of privatization and gentrification than, say, rolling out the red carpet for hi-tech companies.

One of Avalos’ greatest challenges is that he lacks a pile of campaign cash, having received less than $90,000 in contributions as of June 30, according to an Ethics Commission filing. “He can’t call in the big checks,” said Julian Davis, board president of Booker T. Washington Community Service Center, “because he hasn’t been doing the bidding of big business interests.” A roster of financial contributions filed with the Ethics Commission shows that his donor base is comprised mainly of teachers, nonprofit employees, health-care workers, tenant advocates, and other similar groups, with almost no representatives of real-estate development interests or major corporations.

Despite being strapped for cash, he’s collected endorsements ranging from the Democratic County Central Committee, to the Harvey Milk Democratic Club, to the city’s largest labor union, SEIU 1021; he’s also won the backing of quintessential San Francisco characters such as renowned author Rebecca Solnit; San Francisco’s radical bohemian poet laureate, Diane di Prima; and countercultural icon Diamond Dave.

While some of Avalos’ core supporters describe his campaign as “historic,” other longtime political observers have voiced a sort of disenchantment with his candidacy, saying it doesn’t measure up to the sweeping mobilizations that galvanized around Gonzalez or Ammiano. Ammiano has strongly endorsed Avalos, but Gonzalez — who now works for Public Defender (and mayoral candidate) Jeff Adachi — has remained tepid about his candidacy, stating publicly in an interview on Fog City Journal, “I like [Green Party candidate Terrie Baum] and John fine. I just don’t believe in them.”

Ironically, Sup. Sean Elsbernd, often Avalos’ political opposite on board votes, had kinder words for him. “John is intelligent, John is honest, and John has integrity,” Elsbernd told the Guardian. “I don’t think he knows the city well enough to serve as chief executive … but I’ve seen the good work he’s done in his district.”

Meanwhile, Avalos is still grappling with the fallout from the spending cut he initiated against the police and fire departments in 2009. Whereas those unions sent sound trucks rolling through his neighborhood clamoring for his recall from office during that budget fight, the San Francisco Police Officers Association (SFPOA), the San Francisco Fire Fighters union, and the plumbers’ union, Local 38, have teamed up now that Avalos is running for mayor to form an independent expenditure committee targeting him and Public Defender Jeff Adachi, a latecomer to the race.

“We’ll make sure we do everything we can to make sure he never sees Room 200,” SFPOA President Gary Delagnes told the Guardian. “I would spend as much money as I could possibly summon to make sure neither ever takes office.” Delagnes added that he believes the political makeup of San Francisco is shifting in a more moderate direction, to Avalos’ disadvantage. “People spend a lot of money to live here,” he said, “and they don’t want to be walking over 15 homeless people, or having people ask them for money.”

If it’s true that the flanks of the left in San Francisco have already been supplanted with wealthy residents whose primary concern is that they are annoyed by the sight of destitute people, then more has already been lost for the progressive movement than it stands to lose under the scenario of an Avalos defeat.

The great progressive hope?

Despite these looming challenges, the Avalos campaign has amassed a volunteer base that’s more than 1,000 strong, in many cases drawing from grassroots networks already engaged in efforts to defend tenant rights, advance workplace protections for non-union employees, create youth programs that aim to prevent violence in low-income communities, and advance opportunities for immigrants. According to some volunteers, linking these myriad grassroots efforts is part of the point. Aside from the obvious goal of electing Avalos for mayor, his supporters say they hope his campaign will be a force to re-energize and redefine progressive politics in San Francisco.

“All the candidates that are running are trying to appeal to the progressive base,” Avalos said. But what does it really mean? To him, being progressive “is a commitment to a cause that’s greater,” he offered. “It’s about how to alter the relationship of power in San Francisco. My vision of progressivism is more inclusive, and more accountable to real concerns.”

N’Tanya Lee, former executive director of Coleman Advocates, was among the people Avalos consulted when he was considering a run for mayor. “The real progressives in San Francisco are the folks on the ground every day, like the moms working for public schools … everyday families, individual people, often people of color, who are doing the work without fanfare. They are the unsung heroes … and the rising progressive leaders of our city,” she said. “John represents the best of what’s to come. It’s not just about race or class. It’s about people standing for solutions.”

When deciding whether to run, Avalos also turned to his wife, Zapata, who has held leadership positions in the San Francisco teacher’s union in the past. She suggested rounding up community leaders and talking it through. “The campaign needed to be a movement campaign,” Zapata told the Guardian. “John Avalos was not running because he thought John Avalos was the most important person in the world to do this job. Our question was, if John were to do this, how would it help people most affected by economic injustice?”

Hewitt, the executive director of CLAER, also weighed in. “My concern is that he has been painted as a leftist, rooted in some outdated ideology,” she said. “I think [that characterization] is one-dimensional, and I think he’s broader than that. My perception of John is that he’s a pragmatist — rooted in listening, and attempting to respond.”

Others echoed this characterization. “He doesn’t need to be the great progressive hope,” said Rafael Mandelman, an attorney who ran as a progressive in District 8 last year. “If people are looking for the next Matt Gonzalez, I’m not sure that’s what John is about. He’s about the communities he’s representing.”

As to whether or not he has a shot at victory, Mandelman said, “It’s a very wide field, and I think John is going to have a very strong base. I think he will get enough first-choice votes to be one of the top contenders. And with ranked choice voting, anything can happen.”

 

Central subway becomes issue in mayor’s race

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The central subway — for years, one of those San Francisco projects that almost everyone in local politics supported — has suddenly become a major issue in the mayor’s race.


After a blistering civil grand jury report (PDF) saying that the project has become too expensive and will take cash away from Muni’s other priorities, some city officials and transit activists, including those who once were backers of the subway, are now saying it’s time to call the whole thing off.


City Attorney Dennis Herrera was the first major candidate out of the box to denounce the project, telling the Chronicle that the subway has “ceased to be a prudent investment” and that it’s time to pull the plug. It’s likely that Herrera will continue to push Mayor Ed Lee on the cost of the project and its transit value, and the other candidates will have to figure out where to go.


There’s no question — this is an expensive proposition, $1.6 billion for a 1.7-mile line. Most of the financing is also federal and state money, meaning San Francisco’s only on the hook for a little more than $100 million — as long as the construction comes in at or under budget.


And powerful players like AECOM stand to make huge amounts of money off the deal.


At the same time, almost all of Chinatown is united behind it. “The community has been working on this for a long time. It’s the first thing we’ve all worked on together,” Rev. Norman Fong, who is about to take over as director of the Chinatown Community Development Center, told me. Supporters of the subway started some 20 years ago, and collected 20,000 signatures supporting a new transit option in a community where the vast majority of residents are transit-reliant. A delegation of seniors and tenant leaders went to Washington, D.C. to lobby for it. “And everyone in town signed off on it in 2008, when the cost was $1.2 billion,” Fong said.


It makes for strange politics — most of the same people who are really pushing the central subway are trying to stop state Sen. Leland Yee from becoming mayor — but Yee is also a strong proponent of the subway. David Chiu is, also, telling me that the grand jury just “rehashed arguments that we’ve heard before” and that there’s “enormous funding from the federal government.”


I have yet to hear from John Avalos, but this one is not going away.  


 

Editorial: Mayor Ed Lee: Keeping City Hall safe for PG&E

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Mayoral candidates Dennis Herrera, John Avalos and Leland Yee blast Lee’s pro-PG&E comments (in postscript)

Pacific Gas and Electric Company is the number one corporate criminal in San Francisco. The company’s malfeasance caused the deaths of eight people and destroyed an entire neighborhood in San Bruno last year. The National Transportation Safety Board, in a report issued August 30, denounced PG&E’s “integrity management program without integrity” and blasted the company’s efforts to “exploit weakness in a lax system of oversight.”

That doesn’t even address the fact that PG&E has been operating an illegal monopoly in San Francisco for more than 80 years, engaging in an ongoing criminal conspiracy to violate the federal Raker Act. Or the fact that the utility spent $50 million of ratepayer money on a ballot initiative aimed at eliminating consumer choice in the electricity market.

So why was Mayor Ed Lee out at a PG&E public relations event Sept. 1 praising the “great local corporation” as a “great company that gets it?”

Well, the mayor’s campaign press spokesperson, Tony Winnicker, says that PG&E was at the event to donate $250,000 to a program for at-risk youth, and that the mayor was only recognizing that, for all its flaws, the utility “also [does] something good for our public schools and low-income kids.”

That’s not enough, and that’s not acceptable — and the mayor should apologize to the residents of San Francisco, San Bruno and everyplace else in California where the giant corporation has done serious and lasting damage.

It’s nice that PG&E gave a contribution to a program that helps Soma kids learn to read and to play baseball. We support the RBI program and its goals. Never mind that the $250,000 is about 0.005 percent of the money that the utility spent trying to block public power in California. Never mind that PG&E pays such a low franchise fee that it robs of city of millions of annual tax dollars that could fund programs like this one. It still sounds like a large sum, and to the nonprofit program at Bessie Charmichael School, it is.

But there’s a reason PG&E gives money to community groups and programs like this all over town — it’s a way to buy support and respect. Corporate largess of this sort is a relatively cheap public relations strategy — and for the mayor not to see that is embarrassing.

It’s a particularly notable conflict of interest, too — Lee’s top patron and biggest political supporter, Willie Brown (who knows a bit about corruption himself) has been on PG&E’s payroll as a private attorney for the past several years, earning about $200,000 a year.

Most of the candidates for mayor have been taking a gentle approach to Lee, and that makes a certain amount of sense — in a ranked-choice voting environment, negative campaigning often backfires. But there’s nothing inappropriate about saying that the mayor of San Francisco has damaged his own reputation and the reputation of the city by allowing himself to be used at a PR tool by PG&E. Remember: He didn’t just show up and thank the utility for the money. He called PG&E a “great local corporation,” which is, quite simply, false. This ought to become an issue in the race, and Lee should be forced to explain his position on public power, his ties to Brown and PG&E, his positon on  community choice aggregation, his willingness to kick  the PG&E-friendly  commissioners off the PUC and appoint credible public power advocates  and to put aside decades  of  City Hall malfeasance in the name of a small contribution.

P.S. As the Sept. 2 Examiner put it neatly in its headline, “Mayor, PG&E engage in baseball diplomacy, Utility donates to youth program in wake of NTSB criticism.”
Amy Crawford’s excellent heads-up  story noted that Lee “also heaped praise on PG&E, which announced a $250,000 loan to RBI “

Then she quoted Lee as saying without gulping or blushing, “Isn’t  that a wonderful contribution from a great local corporation? They’re a great company that gets it.”

Crawford put the quote in the proper context: “PG&E”s generosity came just two days after the National Transportation Safety Board blamed it for a deadly San Bruno gas line explosion one year ago.  The blast and subsequent fire destroyed a neighborhood, killing eight.”

As usual, PG&E downplayed the tragedy by calling it all just a “coincidence.”  She quoted Joe Molica, the PG&E spokesman, as saying,  “We’re really here to talk about kids.” Crawford wrote that Molica declined to “discuss the damning criticism.”  Three mayoral candiates promptly blasted Lee for his telling remarks. Three candidates for mayor promptly blasted Lee’s pro-PG&E remarks.

City Attorney Dennis Herrera  said the next day  that  “Ed Lee’s lavish praise for PG&E as ‘a great corporation’ on the eve of the one-year anniversary of the San Bruno tragedy, just days after federal regulators blamed the utility for a ‘litany of failures’ that claimed eight lives, is unconscionable,” said Herrera. “It shows insensitivity to victims’ families, and poor judgment for allowing his office to be used as a corporate PR tool. No less troubling, it ignores the serious work my office and others have done to protect San Franciscans from PG&E’s negligence, to prevent further explosions like those in San Bruno last year and in Cupertino on Wednesday. The interim Mayor should reassess his laudatory view of PG&E, and apologize to San Bruno victims’ families.”. http://herreraformayor.com/2011/09/herrera-criticizes-ed-lees-lavish-praise-pge-eve-oneyear-anniversary-san-bruno-blast/

Sup. John Avalos also  said the next day  that  “Ed Lee called PG&E a “great corporation” yesterday–a great corporation who spent $50 million last year trying to pass a ballot measure that would ensure their monopoly in places like San Francisco instead of repairing and inspecting pipes like the one that caused this terrible destruction.  Now this “great” corporation wants its customers to foot the bills for its negligence and bad practices?  Ed Lee says that this corporation “gets it.”  PG&E seem to “get” that a symbolic donation to a charity at the height of their unpopularity might help their rate-payers forget the catastrophic results of their negligence and bad practices ”  http://avalosformayor.org/2011/09/breaking-ed-lee-praises-pge-for-being-great-avalos-responds/s

State Sen. Leland Yee later  said that  “Obviously Ed Lee doesn’t understand that words matter. Eight of my constituents died and dozens lost their homes a year ago, and that is why I passed legislation to help those affected families try rebuilding their lives and why I am now pushing legislation to hold PG&E accountable. Rather than praising PG&E, the interim mayor should be calling on the Governor to sign the numerous bills to force the private utility to do what they have failed to do for decades – proper technology, inspection, and safety.”

And so Mayor  Lee has publicly demonstrated that he doesn’t get it and that he is poised to wallow in the Willie Brown sleaze of keeping City Hall safe for PG&E and its allies. Let’s keep the pressure on.  B3

 

 

 

 

 

Workin’ at the car wash

Worker advocates with La Raza Centro Legal and the San Francisco Day Labor Program are partnering with city officials for a creative approach to addressing the pervasive issue of wage theft: A worker-owned car wash.

On Aug. 17, attorneys from La Raza joined with City Attorney Dennis Herrera to announce that a lawsuit had been filed against the owners of Tower Car Wash for longstanding labor law violations that resulted in workers earning less than minimum wage. The complaint, filed jointly with the city and La Raza, seeks to recover up to $3 million in compensation, penalties, and interest for the cheated workers.

The Tower Car Wash lawsuit, along with other high-profile complaints alleging wage theft that the city has filed against the owners of Dick Lee Pastry and Danny Ho, who allegedly cheated day laborers out of the money they were owed, would never have come to fruition if low-wage workers hadn’t come forward. Individuals like Tower Car Wash employee Rosa Ochoa, who’s involved with La Raza’s Colectiva de Mujeres, have publicly challenged their employers for labor violations, a tough stand in a state with exceptionally high unemployment in the midst of a recession.

“What we feel like is really important about this lawsuit is that for us, it’s about worker empowerment,” says Workers’ Rights Coordinating Attorney Kate Hegé of La Raza. “It wouldn’t be possible without these workers being able to come forward.”

The idea for a worker-owned car wash emerged out of a desire to advance the goal of worker empowerment, Hegé notes. With help from Sup. David Campos, interim Mayor Ed Lee, and pro bono assistance from the law firm Orrick, Herrington & Sutcliffe, La Raza and the San Francisco Day Labor Program hope to establish a regular car wash on weekdays in the city-owned lot on Bayshore and Alemany boulevards, the location of the Alemany Farmer’s Market and the Alemany Flea Market on Saturdays and Sundays.

“We’ve been working with the city for the past several months to start a green, worker-owned car wash cooperative where workers of the San Francisco Day Labor Program would not only administer it, but work and gain benefits,” Renee Saucedo, Community Empowerment Coordinator at La Raza, told the Guardian. “The main thing about this day labor car wash is that it’s going to be run by the workers themselves.”

The project comes on the heels of a broader local effort to improve protections for low-wage workers. Earlier this month, the Board of Supervisors approved the Wage Theft Prevention Ordinance, crafted in partnership with the Progressive Workers Alliance to strengthen the the city’s Office of Labor Standards & Enforcement.

So much for civility

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rebeccab@sfbg.com

The San Francisco mayor’s race went from a lackluster affair to a dynamic match as the Aug. 12 filing deadline drew near and two prominent city officials who had previously said they wouldn’t run tossed their hats into the ring.

Mayor Ed Lee’s Aug. 8 announcement that he’d seek a full term prompted several of his opponents to use their time onstage at candidate forums to decry his reversal and question his ties to the moneyed, influential backers who openly urged him to run. Several days later, Public Defender Jeff Adachi’s last-minute decision to run for mayor signaled more tension yet to come in the debates.

At this point, eight current city officials are running campaigns for higher office, and the dialogue is beginning to take on a tone that is distinctly more biting than civil. Adachi, who had not yet debated onstage with his opponents by press time, told reporters he was running because he wanted “to make sure there’s a voice in there that’s talking about the fiscal realities of the city.”

Adachi authored a pension reform ballot measure that rivals the package crafted by Lee, labor unions, and business interests (see “Awaiting consensus,” May 31, 2011). At an Aug. 11 candidate forum hosted by the Alice B. Toklas Democratic Club, the San Francisco Young Democrats, and the City Democratic Club, all of the top-tier candidates who were present indicated that they would support Lee’s pension reform measure and not Adachi’s.

“The reforms that I have championed are reforms that are absolutely needed, along with action,” Adachi told reporters moments after making his candidacy official. He added that after watching the mayoral debates, “I became convinced that either the candidates don’t get it, or they don’t want to get it.”

Those fighting words will likely spur heated exchanges in the months to come, but until Adachi’s entrance into the race, it was Lee who took the most lumps from opponents. Even Board President David Chiu, a mayoral candidate whose campaign platform is centered on the idea that he’s helped restore civility to local government, had some harsh words for Lee during an Aug. 11 mayoral debate.

“I do regret my decision to take Ed Lee at his word when he said he would not run,” Chiu said in response to a question about whether he regretted any of his votes. He also said his first interaction with Lee after the mayor had announced his candidacy was “a little like meeting an ex-girlfriend after a breakup.”

Lee, whose pitch on the campaign trail features a remarkably similar narrative about transcending political squabbling in City Hall, became the target of boos, hisses, and noisemaker blasts when a boisterous crowd packed the Castro Theater for an Aug. 8 candidate forum. He received one of the most forceful rebukes from Sen. Leland Yee, an opponent whom Lee supporters are especially focused on defeating.

“Had the mayor said that he would in fact run, he may not have gotten the votes for interim mayor,” Yee said. “Will you resign from your post,” he asked, challenging Lee, “in order to then run for mayor?” Days later, Yee had developed a new mantra about throwing power brokers out of City Hall instead of “wining and dining with them.”

Yet Lee said his decision to enter the race wasn’t because of the push from his backers, but because of how well things have gone during his brief tenure in Room 200. “Things have changed at City Hall, particularly in the last seven months,” he told reporters Aug. 8. “And because of that change, I changed my mind.”

In yet another twist, former Mayor Art Agnos — whom progressives had looked to as a potential appointee to the vacant mayor’s seat back in December, before Lee was voted in to replace former mayor and Lieutenant Governor Gavin Newsom — delivered a surprise endorsement of City Attorney Dennis Herrera shortly after Lee declared. The decision was particularly significant since Agnos first hired Lee to serve in city government, and has a long history of working with him.

“[Herrera] is an independent person who will empower neighborhoods … and won’t be beholden to power brokers,” Agnos said. He also told the Guardian he wasn’t surprised that Lee had opted to run, given the role former Mayor Willie Brown and influential business consultant Rose Pak had played in orchestrating Lee’s appointment.

“Anybody who is an astute political observer saw the signs from the very beginning,” Agnos said. In response to a comment about his unique vantage point as a would-be caretaker mayor, he said, “I would’ve kept my word and not run for reelection.”

Intense focus on Lee’s flip-flop, and on the Progress for All-backed “Run, Ed, Run” effort that was the subject of an Ethics Commission discussion that same week, stemmed at least in part from the threat the incumbent mayor represents to other candidates. A CBS 5-SurveyUSA poll suggested he became an instant front-runner.

Yet questions about “Run, Ed, Run” — some raised by observers unaffiliated with any campaigns — also served to spotlight the candidate’s longstanding ties with backers closely connected to powerful business interests that stand to lose big if their links to city government aren’t preserved.

Retired Judge Quentin Kopp issued an open letter to District Attorney George Gascón Aug. 1 urging him to convene a criminal grand jury to investigate whether illegal and corrupt influencing had occurred when Pak — a close friend of Lee’s and a key driver behind the “Run, Ed, Run” effort — reportedly recruited executives of Recology to gather signatures urging Lee to run.

Recology, which handles the city’s waste, was recently awarded a $112 million city contract, and Lee’s scoring of the company and recommendation to raise rates in his previous capacity as city administrator benefited the company. Brown received substantial campaign donations from Recology in previous bids for mayor. Kopp is the coauthor of a ballot initiative asking San Francisco voters if the company’s monopoly on city garbage contracts should be put out to bid.

“A criminal grand jury is vital in order to put people under oath and interrogate them,” Kopp said. “They would put Willie Brown under oath, put Pak under oath, put [Recology President Mike Sangiacomo] under oath, put [Recology spokesperson Sam Singer] under oath … That’s the course of action that should be pursued by this.”

Although Kopp told the Guardian that he hadn’t yet received a response from Gascón, DA candidates Sharmin Bock, Bill Fazio, and David Onek nevertheless seized the opportunity to publicly and jointly call for Gascón to recuse himself from any investigation into Progress for All. Gascón has a conflict of interest, they argued, since he reportedly sought Pak’s advice when deciding whether to accept Newsom’s offer to switch from his previous post as police chief to his current job as top prosecutor.

The Ethics Commission determined unanimously Aug. 8 that the activities of Progress for All, the committee that was formed to encourage Lee to run, had not run afoul of election laws despite director John St. Croix’s opinion that it had filed improperly as a general purpose committee when it ought to have been a candidate committee, which would have placed caps on contribution limits.

“The Ethics Commission has spoken, and they’ve supported our position,” Progress for All consultant Enrique Pearce of Left Coast Communications told the Guardian.

St. Croix did not return Guardian calls seeking comment, but an Ethics Commission press release included a caveat: “Should facts surface that coordination occurred between Mayor Lee and [Progress for All], such allegations will be investigated under the Commission’s enforcement regulations.”

At a Lee support rally organized by his official campaign team on Aug. 11, volunteers who arrived with “Run, Ed, Run” materials produced by Progress for All were told they could not display those signs and T-shirts; the same people were on a first-name basis with one of Lee’s campaign team members.

Pressed on the question of whether there was any coordination between agents of Progress for All and Lee, Pearce said the Ethics Commission discussion had focused on whether Lee had been a candidate. “Whether or not he’s a candidate has nothing to do with whether or not he has dinner with Rose [Pak],” Pearce noted. He insisted that there had not been coordination, and that the efforts to encourage Lee to run and to support Lee as a candidate were totally separate.

Sup. John Avalos, who is running for mayor on a progressive platform, recalled at an Aug. 8 candidate forum how things unfolded when Lee’s name first came up as an appointee for interim mayor.

Avalos reminded people that he had called for postponing the vote back in December because he hadn’t even had a chance to sit down and meet with Lee, who was in Hong Kong at the time. With behind-the-scenes deals orchestrating his appointment, Avalos said, “We saw City Hall turning into one big back room.”

Lee appointment of Nuru darkens the ethical cloud over Room 200

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City Attorney Dennis Herrera deserves credit for being the one mayoral candidate willing to bring a full-throated denunciation of the sleazy and corrupt politics now flowing from Mayor Ed Lee, who yesterday appointed discredited political fixer Mohammed Nuru to head the Department of Public Works, compounding a series of ethically questionable actions by Lee and his supporters.

While it was inexplicably buried by editors at the bottom of Section C, the Chronicle’s City Insider today had a pair of good stories on Lee’s mounting political problems. The first was about how the U.S. Attorney’s Office has reportedly launched a probe of Progress for All and its “Run, Ed, Run” campaign, for which Lee ally Rose Pak illegally sought support from executives at Recology, the garbage company that had just been awarded a huge city contract, largely because then-City Administrator Lee had given the company far higher ratings than the other two supposedly impartial bid judges.

The second story was about Herrera slamming Lee’s choice of Nuru. On his campaign website, Herrera reminded voters about the scandals that have surrounded Nuru – like Lee, someone who has always taken his cues from former Mayor Willie Brown – who illegally diverted city funds and workers into campaigning for Brown in 1999 and Gavin Newsom in 2003. Brown now writes for the Chronicle and is even allowed to comment on the mayor’s race.

The scandal – first broken by the Chronicle in 2004, furthered by reporting in the Guardian, and then investigated by Herrera’s office – involved Nuru steering city funds to his nonprofit San Francisco League of Urban Gardeners and then requiring its employees to illegally do campaign work during work hours. Nuru then went to work for Lee at the DPW while continuing to illegally use SLUG’s funds and employees for political purposes.

Herrera said the appointment smacks of “cronyism, politics, and poor judgment.” Previously, Herrera had the best line about Lee as he jumped into race, telling a mayoral forum: “To my mind, Ed Lee’s biggest problem isn’t that he’s a dishonest man – it’s that he’s not his own man,” Herrera said. “The fact is, if Ed Lee is elected mayor, powerful people will continue to insist on things.”

Topping that list of the powerful people who have clearly been pulling Lee’s strings throughout his career are Pak and Brown, both of whom are consultants who regularly get paid by corporations that do big business with the city and need support from the Mayor’s Office. And their actions are often blatant and shameless, just like Nuru’s history, and even exposure of the misdeeds doesn’t correct the problem.

For example, as I reported last week, Brown’s administration helped Pak buy a Rincon Hill condo for half-price through a city affordable housing program in 2002, even though her disclosure forms showed she had $73,414 in her checking account, some of which probably included the $12,000 consulting fee she reported on her tax return from Emerald Fund – the politically connected developer of the project, employees of which are barred from buying such below-market rate units – and $10,000 from Chiang CM Construction, which helped fund Progress for All.

Most of this information was prominently reported in 2003 by the Examiner, but nothing was ever done. Pak got to keep her taxpayer-subsidized condo. Same thing with Nuru, who remained at DPW even after the City Attorney’s Office and Controller’s Office concluded his actions were corrupt. And Lee was appointed interim mayor even after being tied to several corrupt Brown scams, including overriding city workers to give contracts to fraudulent companies at Brown’s behest.

And now, Lee has placed Nuru in charge of a city department with a $129 million city budget and 1,200 employees, despite Nuru’s proven history of directing his subordinates to illegally campaign for his mayoral benefactors. You couldn’t even make this stuff up, and even Examiner columnist Melissa Griffin flatly calls the move “stupid.”

But I think it’s more than just stupid. And the appointment of Nuru is more than just a setback from DPW that good government activists had been fearing for a long-dysfunctional department that had gotten much better in recent years. It looks like flat-out corruption of the sort that ought to knock Lee out of the frontrunner position and hopefully land him in front of a grand jury at some point.

It’s official: Adachi’s in the race (VIDEO)

Public Defender Jeff Adachi filed to run for mayor of San Francisco on Aug. 12, the last possible day to enter the race.  Adachi said he’d decided to run in order to “make sure there’s a voice in there that’s talking about the fiscal realities of our city.”

At a mayoral candidate forum Aug. 11, every single contender — Mayor Ed Lee, Sup. John Avalos, venture capitalist Joanna Rees, Assessor Recorder Phil Ting, Board President David Chiu, City Attorney Dennis Herrera, former Sup. Michela Alioto-Pier, former Sup. Bevan Dufty, and Sen. Leland Yee — said they would support the pension reform package that was placed on the ballot after discussion with labor unions, the mayor’s office, and business interests, and not the pension reform measure authored by Adachi.

Here’s a video of Adachi explaining his decision to members of the press moments after filling out the paperwork.

Video by Rebecca Bowe

Ecological rewind

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rebeccab@sfbg.com

Follow the trail from Yosemite National Park’s Rancheria Falls up along dusty switchbacks and down through a canopy of pines and madrones for roughly three miles, and you will reach Tiltill Valley.

Accessible only to hikers and horseback riders, the backwoods meadow hums with the chatter of birds, bees, and the distant rush of water spilling over rocks. Butterflies dart among wild orchids, lilies, yarrow, and other kinds of flowering plants that thrive there, and a lone sequoia stands along the perimeter. The valley floor is lush and boggy, with the forested hills of the High Sierra as its backdrop.

Tiltill Valley is a real-life example of what Yosemite’s Hetch Hetchy Valley might look like if the reservoir that holds San Francisco’s water supply were drained and the terrain allowed to return to its natural state, according to Mike Marshall, executive director of Restore Hetch Hetchy.

His nonprofit group has a singular mission, as the title suggests. The upbeat, 50-year-old former political consultant wants to place a charter amendment on the November 2012 ballot to ask San Francisco voters if Hetch Hetchy Reservoir should be drained so that the valley, which has been underwater since 1923, can be ecologically restored and turned into an attraction for park visitors.

Yet that simply stated goal belies an extraordinarily difficult and expensive task, one that would fundamentally alter San Francisco’s water delivery system and diminish a city-owned source of inexpensive, green energy.

“The destruction of Hetch Hetchy Valley in the 1920s was the worst environmental disaster to ever besiege the national park system,” Marshall says. “And today, it is completely out of whack with the values of the vast majority of people who live here.”

But most city officials think this idea is just plain crazy. Whether or not it was a good idea to build the dam originally, they say it’s unwise and unrealistic to spend scarce resources to destroy one of city’s most valuable assets.

“While it is an interesting idea, I don’t think that there is yet a credible plan to move forward and actually restore Hetch Hetchy that will ensure that within our budget, we’ll be able to get the water that 2.5 million Bay Area customers need, as well as do everything else that the current Hetch Hetchy system does,” Board President David Chiu told the Guardian.

Based in San Francisco, Restore Hetch Hetchy worked in tandem with the Environmental Defense Fund and a consulting firm to craft a technical analysis describing how the city could continue receiving reliable freshwater deliveries without the reservoir, although it would require filtration because of its lower quality and be less abundant in drought years.

While restoring the valley would be an ecological win in a perfect world, cost estimates range in the billions of dollars at a time when budgets are shrinking and economic turbulence rocks the public and private sectors.

Draining Hetch Hetchy Reservoir and replacing it with other water and power projects would punch holes in an already cash-strapped city budget, first with the high capital costs and then with higher long-term annual costs. The hydro-electric system provides carbon-free electricity to city agencies at basement rates and helps fund local renewable-energy projects, so relinquishing some of that generation capacity would be a step backward when it comes to addressing climate change.

“The loss of Hetch Hetchy Reservoir would fly in the face of every effort San Francisco has made to replace fossil-fuel power generation with renewable energy sources,” City Attorney Dennis Herrera wrote in a 2004 editorial in the Guardian. Losing hydropower from the dam, he wrote, “would force greater dependence on fossil-fuel electricity and impair low-cost hydropower with higher-cost renewables, making San Francisco’s efforts to create a sustainable energy future virtually impractical. And it would devastate our efforts to enact a public power system in San Francisco. Hetch Hetchy was built by people who envisioned a public power system to serve all of San Francisco. We should finish that system before we start tearing it down.”

But when a round of invitations went out to Bay Area journalists to join a three-day backpacking trip in Yosemite and learn about Restore Hetch Hetchy’s vision, I signed up to attend. After all, here was a chance to go backpacking in beautiful terrain and assess one of the most controversial and impactful proposals facing San Francisco.

 

WATER

Our first stop within park boundaries was a chocolate-colored chalet with a spacious deck overlooking the waterfront. Owned by the San Francisco Public Utilities Commission (SFPUC), it’s notorious in San Francisco politics as a weekend getaway for local elected officials, city commissioners, and favored staffers. Stories of the chalet abound, as it’s rumored to have been the site of private soirees for powerful players and a rendezvous for lovers in extramarital affairs.

The eight-mile long, 300-foot deep Hetch Hetchy Reservoir holds 360,000 acre-feet of water, and the dam itself is an impressive structure, although Marshall scoffs at the popular wisdom casting it as “a marvel of engineering,” and dryly quips, “so was the Titanic.”

Native American remains were buried underwater when it was built, Marshall told us as we peered out over the towering dam wall, and 67 lives were lost during construction. As we rounded the perimeter of the man-made water body, sweating in the summer heat and saddled with gear, he asked us to imagine peering down into a dramatic sloping valley instead of what it looks like in its current state, which is a lake.

“Don’t call it a lake,” he insisted. Restore Hetch Hetchy regards the reservoir as an unnatural blemish that should never have been imposed upon a scenic and biodiverse environment in a national park. According to Mark Cedorborg, an ecological restoration expert with Hanford ARC and a Restore Hetch Hetchy board member who joined the trip, it wouldn’t take long for the natural ecosystem to bounce back if the water were removed, recreating a rare wildlife habitat that would mirror Yosemite Valley.

Sierra Club founding president John Muir would have sided with them, of course. The famous ecologist wrote passionately about the valley and vehemently fought the effort to submerge it. At the time, a chorus of opposition arose against flooding Hetch Hetchy — and that was before modern science documenting the impacts dams have wrought on the environment.

A black-and-white image of Michael O’Shaughnessy, the civil engineer behind the project, is posted on an info kiosk beside the dam, his eyebrows arched in a wizard-like, calculating gaze as he uses a pointer to mark the spot on a map of San Francisco’s watershed.

As things stand today, Hetch Hetchy Reservoir is a crucial storage facility for drinking water. Freshwater flowing from the Tuolumne River through the glacial formation accounts for 85 percent of SFPUC deliveries to about 2.5 million customers in the city and on the peninsula.

Hetch Hetchy is unique in that it’s just one of a handful of water systems nationwide that uses chemical treatment and ultraviolet disinfection, but no filtration, to purify fresh water that is transported along a gravity-fed system down to the city.

SFPUC spokesperson Tyrone Jue said Hetch Hetchy water does not require filtration “because basically, it’s a giant granite basin there in the reservoir, so there’s no sedimentation.” He added that the water quality is exceptionally high. “It’s high up in the watershed. The higher up in the watershed, the better it is.”

Restore Hetch Hetchy has submitted a number of proposals to ensure that San Francisco could still receive adequate supplies without the reservoir, including constructing a new intertie at Don Pedro Reservoir, which lies downstream from Hetch Hetchy, to get drinking water supplies from there instead.

Under this scenario, the SFPUC would continue to get its water from the Tuolumne River — but it would have to build a new filtration system to treat it because the water quality would be worse and the city would lose its federal waiver.

That’s an expensive consideration, particularly at a time when city coffers are depleted, critical services for vulnerable populations have been gutted, and taxpayers are wary of authorizing costly new endeavors.

Marshall defends the cost by asserting that the current system is flawed; the lack of filtration makes San Francisco’s water more susceptible to contamination from nasty microorganisms like cryptosporidium and giardia, he says.

“San Francisco has a unique health demographic in that over 5 percent of the people that live in the city have compromised immune systems, if you just look at people who are HIV positive,” he said. “Ultimately, San Francisco is going to be forced to filter its water, so why are we kicking this can down the road?”

But filtering water at the residential level would be far cheaper than tearing down the dam. Jue pegs the cost of a new filtration system at somewhere between $3 billion and $10 billion, but Marshall rejects that estimate as “just crazy.”

So we called Xavier Irias, director of engineering at the East Bay Municipal Utility District. “Ten looks a little high, but the three sounds very credible,” Irias said, acknowledging that there were many complicating factors that could affect cost. Ultimately, he said, the cost range could be anywhere from half a billion to the single-digit billions of dollars.

“With the filtration costs, not only are you talking about building a facility to filter the water, you’re now talking about increased power consumption to basically power those filtration plants,” Jue noted. “You’d have to start pumping water, which would require additional energy. And then on top of that, there’s the long-term operation.”

What’s more is that the quantity of water that San Francisco now depends on wouldn’t be guaranteed every year. According to an analysis done in partnership with the Environmental Defense Fund, reconfiguring the system to tap Don Pedro would result in 19 percent less water delivered from the Tuolumne in critically dry years, and similar losses would result from alternative proposals like tapping Cherry Reservoir, another storage facility in the SFPUC system.

Restore Hetch Hetchy has suggested that the shortfall could be made up in part with new water-conservation measures, something that cities arguably ought to be practicing anyhow since climate change threatens to bring about drier conditions in California’s watershed. It could also place the city in the position of having to go to the open market to purchase water for customers — just as dwindling water supplies raise the temperature between cities and counties scrambling to secure reliable deliveries.

“The Hetch Hetchy water system is a fully owned public asset,” Jue notes. “At a time when state and federal governments are struggling with even being able to close our budget deficits, to even look at dismantling an environmentally sound, cost-efficient water system that delivers water to 2.5 million people is sort of outrageous.”

 

POWER

In addition to capturing the flow of pristine Tuolumne River water that eventually makes its way into the city’s plumbing network, O’Shaughnessy Dam is a key component of the SFPUC-owned hydro-electric system, which produced 1.7 billion kilowatt hours of power last year with no greenhouse gas emissions.

If efforts to advance the cause of a public power system resurfaced in San Francisco, having the full capacity of the Hetch Hetchy hydro-electric generation in place would be vital. Juice for city streetlights, Muni’s light rail cars, the chandeliers adorning the Board Chambers in City Hall, and countless other municipal uses are derived from this gravity-fed system, which provides roughly one-fifth of San Francisco’s overall energy needs.

City departments pay three or four cents per kilowatt-hour, less than what it costs to generate the power. If all the hydro-electric power were eliminated and substituted with PG&E power, the city would get pinned with $32 million in additional costs annually, and its carbon footprint would expand by more than 900 million pounds of greenhouse-gas emissions, according to the SFPUC. However, a technical report produced by the Environmental Defense Fund suggests the city would only suffer a 20 percent decline in the hydro-electric output, since operations at other SFPUC reservoirs would continue.

The hydro-electric system also generates revenue through the sale of excess power to Turlock and Modesto irrigation districts, but that would come to an end if the generation capacity fell by 20 percent. Restore Hetch Hetchy estimates this loss to be around $10 million annually.

“Whenever we sell the power to Modesto and Turlock, that revenue then goes to fund programs like GoSolarSF, and all of our energy-efficiency retrofits of municipal facilities,” Jue explains. If the city lost its ability to sell off this excess supply, “We would no longer be getting power revenue at all, which we’re using to help fund community choice aggregation.”

Fraught with problems as it is, the city’s effort to launch a community choice aggregation program offering residential customers an alternative to PG&E nevertheless holds promise as a powerful green shift for a major metropolitan hub. For all the ecological benefits to Yosemite, restoring Hetch Hetchy could wind up undercutting the fledgling green power initiative, and the upshot would be a boon for PG&E. Coupled with the fact that ceding control of the valley back to the National Park Service could strip the city of its mandate for public power, the utility giant would benefit tremendously from this plan.

All of this makes it somewhat surprising that District 5 Sup. Ross Mirkarimi, a longtime champion of the cause of public power, appointed Marshall to serve on the SFPUC Citizens Advisory Committee, a move that rankled SFPUC staff.

“I’ve known Mike many years and have found him to be whip smart when it comes to complicated policy issues,” Mirkarimi told the Guardian when asked about this. “He knows that I am an unwavering supporter for public power and that I’d hope his advocacy on the SFPUC continues to advance and innovate our locally-driven clean energy objectives.”

 

POLITICS

The concept of bringing back Hetch Hetchy Valley originated with the Sierra Club in 1999, and several mainstream environmental organizations have lent support for the cause although few have made it a high priority. Nevertheless, there’s plenty of financial backing and support from key political players to keep the vision alive.

Democratic County Central Committee Chair Aaron Peskin, a member of Restore Hetch Hetchy’s national advisory board, told me he’s been active with the group for at least a decade, making him a rare exception among the city’s political leaders.

“San Francisco is a remarkably sophisticated town that is technologically advanced and environmentally advanced, and this is an opportunity to right one of the most destructive environmental wrongs,” he said. “It’s time to start a local and national conversation.”

He acknowledged that there were a lot of technical issues to contend with, saying, “It should only be done in a way that makes sure San Francisco and communities that rely on the system are taken care of.”

Major funders backing Restore Hetch Hetchy include retired businesspeople from the financial sector, Patagonia founder Yvon Chouinard, council members of the Yosemite Conservancy, and Lance Olson, a Restore Hetch Hetchy board member and partner in Olson Hagel & Fishburn, LLP, a prominent Sacramento legal firm that represents the California Democratic Party and elected officials.

Other influential and politically connected individuals have joined the effort as well. Marshall assured me that “no one from PG&E has given us a dime.” Yet the project still faces some powerful opponents. “I have opposed removing the O’Shaughnessy Dam in Hetch Hetchy Valley for decades and I remain opposed,” U.S. Sen. Dianne Feinstein told the Guardian. “Draining the reservoir would endanger San Francisco’s water supply, further jeopardize California’s water infrastructure and impose a huge financial burden on the state.”

Ethics Commission to discuss Progress for All

San Francisco Chronicle reporter John Cote’s scoop highlighting how Recology executives were working behind the scenes under pressure from Chinatown power broker Rose Pak to encourage Mayor Ed Lee to seek a full term is just the latest development for a committee that’s raised eyebrows already, and it may be just the beginning.

Five mayoral candidates — board President David Chiu, City Attorney Dennis Herrera, state Sen. Leland Yee, former Supervisor Michela Alioto-Pier, and businesswoman Joanna Rees — have teamed up to encourage the San Francisco Ethics Commission to investigate whether Progress for All has run afoul of local election laws, rallying behind an effort spearheaded by Democratic County Central Committee Chair Aaron Peskin in a July 28 letter to commissioners.

At the heart of the issue is whether Lee or any of his representatives have been coordinating with agents of Progress for All. If they are, Progress for All would have to be considered Lee’s own, candidate-controlled committee, Peskin asserts in the letter.

“Given the close relationship between Ms. Pak, the Mayor, and Progress for All, it is very possible that the committee has ‘consulted’ or ‘coordinated’ with the Mayor, and therefore its expenditures should be deemed to be made ‘at his behest,'” Peskin’s letter to the Ethics Commission argues. A City Hall insider told the Guardian that Pak — a primary driver behind the Run, Ed, Run campaign — is regularly observed going to and from the mayor’s office.

“If Progress for All or any of these other committees has been acting on Mayor Lee’s behalf, those committees may have violated the $500 contribution limit and prohibitions against accepting corporate, union or city contractor money, restrictions that apply to all candidate committees,” the letter states.

Financial disclosure filings for committees fundraising for the Nov. 8 election are due Monday.

Aside from the question of whether there is coordination between Lee, who has not yet announced that he will run for mayor, and Progress for All, concerns have been raised about city contractors aiding in the efforts of the campaign. Under the city’s Campaign Finance Reform Ordinance, contractors doing business with the city are not allowed to make political contributions.

(Given the revelations that Recology executives’ signature gathering efforts were done in violation of company policy, it’s no wonder Recology executives become bashful when approached by reporters who ask tough questions.)

Meanwhile, Recology might not be the only city contractor that Pak has encouraged to support Run, Ed, Run. A column that former Mayor Willie Brown published recently in the San Francisco Chronicle suggests that this isn’t the first conversation of this kind.

“One thing you can say about Chinatown powerhouse Rose Pak, she is not shy,” Brown’s column begins. “Holding court at the party for the opening of the new airport terminal, Rose was seated at the table with interim Mayor Ed Lee and his wife, Anita, and a host of other local officials. ‘I want every one of you to call his office and tell him he should run for mayor,’ Rose told the table. ‘And do it right away so that there’s no misunderstanding.’ Then she turned to the architect David Gensler. ‘Didn’t you do this terminal?’ she asked. ‘Yes,’ he said. ‘Didn’t you remodel this terminal before?’ ‘Yes,’ he said. ‘Then your firm should raise a million dollars for his election campaign.'”

While Brown may not be a visible player in the Run, Ed, Run campaign, he’s certainly been at the table with a key driver behind it and Lee himself — and he’s using his platform in the Chronicle to get the word out about Lee’s potential mayoral campaign.

“The specific revelations of unethical and possibly illegal activity are very troubling and need to be fully investigated by the Ethics Commission as soon as possible,” Chiu told the Guardian.

Political consultant Jim Stearns, whose firm is managing Sen. Yee’s mayoral campaign, joined the chorus in calling for an investigation. “If you think about the fact that these guys still, according to press reports, are eating together once a week, and there’s not supposed to be any coordination … You have this committee that is essentially operating in complete disregard of the campaign law,” he said. “It’s sort of like there’s a crime being committed, and where’s the police?”

The San Francisco Ethics Commission will hold a policy discussion about how to treat Progress for All at its Aug. 8 meeting, Ethics director John St. Croix told the Guardian.

“We’ve told the committee that we believe they’re a primarily form committee, which is an independent expenditure committee on behalf of a candidate for office or a ballot measure,” St. Croix explained. “They’re claiming that there’s no candidate, so they can’t be that committee, even though they’re acting pretty much exactly like one would.”

As things stand, Progress for All has filed as a general purpose committee, he added. “A general purpose committee is what you would think of as a [political action committee]. They usually represent an organization or elected group of individuals, they tend to exist for a long period of time, and they contribute to multiple campaigns, whereas a primarily formed committee is created to support or oppose a single candidate or a single ballot measure in a single election,” he explained. Another key distinction: “Independent expenditure committees don’t have contribution limits the way that candidate committees do. Candidate committees have a $500-per-contributor contribution limit.”

Peskin, meanwhile, hinted that there may be more to come. “There’s a lot of it,” he said, “and I think there are many people who have stories to tell.”

Civil Grand Jury: Parkmerced tenant protections ‘just talk’

The Board of Supervisor’s Government Audit & Oversight Committee heard from members of the San Francisco Civil Grand Jury this morning about a report it issued on the Parkmerced redevelopment.

“When you read this report, nowhere in this report does it say, ‘do not develop,'” said Michael Golrick, a juror with the civil grand jury. Yet he noted that the primary concern highlighted in the document was a perceived lack of tenant protections for residents living in rent-controlled units.

The assurances in the development agreement — that tenants will be moved into new units after their  existing units are demolished, with the same rent-control protections they had before — can’t be guaranteed due to unresolved legal questions, he said. “It is aspirational and inconclusive. Tenants will live under a cloud of uncertainty, possibly for years.” He added, “Until a court decides, it’s all just talk.”

Jennifer Matz of the Office of Economic and Workforce Development and John Rahaim, director of the San Francisco Planning Commission, both noted that the Civil Grand Jury report was hitting on a legal issue, so the city’s formal responses will be prepared in concert with City Attorney Dennis Herrera’s office.

Matz also noted that the draft of the Development Agreement which the Civil Grand Jury had based its assessment on had changed since the Civil Grand Jury report was issued, with new provisions to shore up tenant protections. She also charged that the report “fails to understand certain aspects of the Development Agreement.”

Meanwhile, residents organized under the Parkmerced Action Coalition are still hoping they may have a chance to reverse the Board’s decision to approve the Parkmerced overhaul by placing a referendum on the Nov. 8 ballot to ask voters whether the zoning for the project should be approved. The group of tenants, organized under the “Committee to Stop Mass Demolition of Housing,” submitted 18,487 signatures on July 8. The Department of Elections is still verifying them and so far, the referendum has not yet qualified for the ballot.

Will Esbernd support Lee?

24

As the tom toms grew louder at the Chronicle and in the Willie Brown/Rose Pak community for Interim Mayor Ed Lee to run for the full term as mayor, I emailed two impertinent questions to my district supervisor Sean Elsbernd:


1. Would you have nominated Ed Lee for interim mayor had you known he would consider running for the job?


2. Will you endorse him if he does decide to run for mayor?


As a longtime West Portal resident, I’ve always gotten annoyed at how Elsbernd (and other supervisors) love to play the neighborhood game back in their district — but when the chips are down on a power structure issue, they go down to City Hall and vote with Willie Brown and the downtown gang. Which is what happened in January on the critical vote for mayor when the Willie Brown/Rose Pak forces worked a quiet play to knock out the progressive candidates (Sheriff Mike Hennessey and former Mayor Art Agnos) and put in City Administrator  Ed Lee, a Willie Brown ally.


Elsbernd was happy to nominate Lee and told us at the time that he had done so because he wanted an interim mayor who would not run in November.


In his email answer to me, Elsbernd wrote, “I believe the benefits of that strategy have proven correct (e.g. the overall budget process and its unanimous approval, and the unanimous approval of the consensus and comprehensive pension/health care charter amendment.“


So what about today when Lee seems more and more poised to run?


Elsburn noted that he has not endorsed anyone, but that “I have been most attracted to the candidacies of City Attorney Dennis Herrera and former Supervisors Alioto-Pier and Bevan Dufty.” He said that these three have the “right combination of qualifications, experience, intelligence, skills and integrity to serve as mayor.”


So what’s his out? “Should Mayor Lee run for election, I would only consider endorsing his effort under one circumstance—if, and only if, I was convinced that without his candidacy, Sen. Leland Yee would be elected. That is, if I see that no one else can beat Sen, Yee other than Mayor Lee, then I would support a Mayor Lee campaign. At this point, I’m not convinced of that—I still think any one of the three I mentioned above could beat Sen. Yee.”


Well, that’s Elsbernd back in his district doing his neighborhood routine at the Village Grill, a favorite Elsbernd breakfast place. Elsbernd has still left himself a way to do what he said he was dead set against doing: going along with Willie Brown and  Rose Pak and  helping Lee become the fulltime mayor. Bring back Quentin Kopp and John Barbagelata. B3


 

Smooth sailing for developers

3

rebeccab@sfbg.com

It’s a mad dash at San Francisco City Hall to put all the pieces together in preparation for the America’s Cup, the prestigious regatta that will culminate in the summer of 2013 along the city’s northern waterfront. But once that spectacle is over, the biggest impact of the event will be a massive, lasting, and quite lucrative transformation of the city’s waterfront by a few powerful players, a deal that has been modified significantly since it was approved by the Board of Supervisors.

As negotiations on the fine terms of the development agreements continue to unfold, the future landscape of a huge section of the San Francisco waterfront is in play. If the America’s Cup Event Authority (ACEA) — the race management team controlled by billionaire Oracle CEO Larry Ellison — aims high in its investments into port-owned infrastructure, it has the potential to lock-in leases and long-term development rights for up to nine piers for 66 years, with properties ranging from as far south as Pier 80 at Islais Creek to as far north as Pier 29, home of the popular dinner theater Teatro ZinZanni.

The possibility of securing long-term leases and development rights to Piers 19, 23, and 29 — provided race organizers sink more money into infrastructure improvements — was added to the deal in the last two weeks of 2010, just before San Francisco won its bid to host the world-famous sailing match. The possibility of obtaining rights to portions of two additional piers, 27 and 80, were also added at the last minute. Race organizers and city officials negotiated the final modifications after the Board of Supervisors signed off on the Host City Agreement on Dec. 14, 2010.

Not all board members knew that three additional city-owned piers were being added as possible extensions of the land deal, and those properties weren’t mentioned in any of the earlier documents that went through a public review process in the months leading up to the approval of the agreement. Yet Board President David Chiu was evidently appraised of how the last-minute negotiations were unfolding and he quietly offered his support.

On Dec. 22, 2010, Chiu sent a letter to Russell Coutts, CEO of Oracle Racing, the team that won the 33rd America’s Cup and is an integral player in laying plans for the 34th. “I understand that Mayor Newsom and the city’s team have been working directly with you since the board’s approval of the Host City Agreement to make the necessary adjustments and clarifications to the agreement to ensure it meets your needs. I am aware of these changes and support them,” Chiu wrote in a letter that was not shared with his fellow supervisors.

Quoting from a section of the agreement that explains that ACEA is ensured long-term development opportunities in exchange for funding improvements and upgrades, Chiu’s letter went on, “This section specifically applies to … Piers 30-32 and Seawall Lot 330, as well as Piers 26 and 28, and if mutually agreeable could apply to Piers 19, 23, and 29. To obtain the community’s support and agreement for future development rights to piers on the northern waterfront, you will need to invest in a strong partnership with the community … I am prepared to help facilitate that relationship.”

Former Board President and Democratic County Central Committee Chair Aaron Peskin, who has closely followed the America’s Cup land deal and has for decades been actively involved in land-use issues along the northern waterfront, interpreted Chiu’s letter to Coutts as a backroom deal.

“There is no question that the president of the board, without the authorization of the majority of the Board of Supervisors, went behind closed doors, out of view of the public, and committed to [long-term development] for three piers,” Peskin said, highlighting the fact that no other supervisors were copied on Chiu’s letter. “That he has done this unilaterally, without the consent of a board’s vote at a board meeting, is not good governance. If there’s one body that’s supposed to do all of its work for the public, it’s the Board of Supervisors.”

Chiu defended the letter by emphasizing the part that asked for a partnership with the community. “This was all within the broader framework of the Host City Agreement that we signed in the middle of December,” he told the Guardian when presented with the letter during an interview and asked to comment. “They had questions about, well, can we develop on these other piers? And what I said was, ‘Well, as I think the language here specifically says if mutually agreed upon … you could possibly do this.’ And we specifically said you’ll need to invest in a strong partnership with the community.”

He added that specific development plans would still have to be approved by the Board of Supervisors. Proposals for each parcel will be made in separate Disposition and Development Agreements, subject to board approval.

On hearing Chiu’s response, Peskin was still critical of the lack of transparency in this deal: “My position is, if it walks like a duck and quacks like a duck, it’s a duck.”

Meanwhile, an analysis prepared by Budget Analyst Harvey Rose in mid-March suggests that the final amendments did reflect new commitments for the city that go well beyond what was discussed publicly. “No city approval of the Event Authority’s selection of Pier 29 for a long-term lease is required in the agreement, as modified by the Mayor’s Office and other city officials,” the Budget Analyst’s report notes. “This entire provision … was not included in the agreement of Dec. 14, 2010 as previously approved by the Board of Supervisors.”

Brad Benson, special projects manager at the Port of San Francisco, explained the Pier 29 provision slightly differently. “The city would have to be acting in its reasonable discretion to say no,” he said, emphasizing that ACEA would have to invest well above the $55 million threshold to obtain rights to Pier 29.

At a time when a new era of civility is being hailed at City Hall, two elements of the city family are essentially agreeing to disagree on the broader question of whether the 11th-hour modifications to the deal resulted in a greater hit to city coffers than supervisors approved. While Rose stated in public hearings that the modifications would deal a greater blow to city revenues, City Attorney Dennis Herrera, a mayoral candidate, has stood with the Office of Economic and Workforce Development in his assessment that the changes did not significantly exceed the scope of what was approved by the board. Fred Brousseau of the Budget & Legislative Analyst chalked it up to “a difference in opinion,” reflecting “the auditor’s standard for materiality versus the city attorney’s.”

Legalese aside, it’s clear that the race organizers stand to gain some highly desirable waterfront property in exchange for investing in the piers and bringing an event to the city that is expected to generate substantial economic activity. If ACEA invests a minimum threshold of $55 million for infrastructure improvements, it can likely secure long-term development rights for Piers 30-32, a 13-acre waterfront parking lot where Red’s Java House is located, plus win the title to Seawall Lot 330, a two-acre triangular parcel along the Embarcadero that has been discussed as the site of a future luxury condo tower that has already cleared city approval for that use.

A high-rise next door to Seawall Lot 330, called the Watermark, currently has condos going for $1.2 million apiece on average, according to a calculation of online listings. Under the America’s Cup deal approved by the board, the port would have received 1 percent of each condo sale plus 15 percent of transfers or subleases made by ACEA. “Such required payments … have been entirely removed from the agreement as modified by the Mayor’s Office and other city officials,” the budget analyst’s report points out.

Waterfront real estate in San Francisco, always expensive, has recently soared to even higher values. According to a June 22 article in the San Francisco Business Times, Farallon Capital Management recently put up for sale a 3.36-acre parcel in Mission Bay zoned for life science and tech office space — and it’s expected to fetch around $90 million. This past April, BRE Properties shelled out $41.4 million for two Mission Bay residential development sites entitled for 360 residential units, and last year, Salesforce.com acquired a 14-acre Mission Bay property for $278 million, or $140 per buildable square foot.

By comparison, the $55 million that ACEA must invest to be granted a two-acre waterfront parcel on the Embarcadero, plus long-term rights to lease and develop an additional 13 acres across the street, sounds like a good deal. “We’re using an appraisal approach. It’s not going to ridiculously undervalue the property,” Benson said. Under changes made to the deal after the board signed off, base rent for Piers 30-32 will be $4 per square foot of building area. Rent for all other possible piers will be $6 per square foot of building area.

The ability to transfer city-owned Seawall Lot 330 outright to the ACEA is predicated on the approval by the State Lands Commission to strip that property of constraints placing it, like all coastal properties, in the public trust. Lt. Gov. Gavin Newsom, who pushed the deal as mayor, is one of the three members of that commission.

Under a provision in the agreement, the ACEA’s $55 million investment will be applied toward rent credits on city-owned parcels — and depending on how much the company puts in, that credit balance can increase by 11 percent every year. Benson described this as a typical arrangement, saying, “It’s not out of the line with other rent-credit deals the port has done.”

Two former mayoral advisors from OEWD, Kyri McClellan and Alexandra Lonne, have since gone to work for the America’s Cup Organizing Committee (ACOC), a nonprofit entity working in tandem with the city and the ACEA to secure financial commitments for hosting the race. Newsom has also been named ambassador at large for the America’s Cup effort.

Meanwhile, an OEWD budget proposal includes $819,000 in staffing costs for four management-level positions relating to America’s Cup planning. A refund is expected in the form of $12 million that the ACOC has committed to fundraise by the end of 2011, with an ultimate target of $32 million by 2013. So far, ACOC has only raised $2 million, but plans to seek higher donations once it gains tax-exempt status. “I think the $2 million is a really good start,” said Mike Martin, who transferred in February from the San Francisco Public Utilities Commission to OEWD to direct the America’s Cup effort. “They’re building a foundation for an effective pitch.”

For now, city departments are scrambling toward completing the environmental review process for the infrastructure improvements, expected to be complete sometime in November. “It’s incredibly compressed,” Martin said. “There’s a lot to be done in a very short time.”

Peskin, for his part, seemed be keeping a watchful eye on the unfolding America’s Cup plans. “What we, the citizens of San Francisco, have to watch out for is that we’re not being taken advantage of,” he said. “We’ve got to be vigilant that we don’t get taken to the cleaners.”

The mayoral poll: No surprises

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The David Chiu campaign has released a poll that isn’t really all that surprising. It shows that the two candidates who have run citywide races — State Sen. Leland Yee and City Attorney Dennis Herrera — are a little tiny bit ahead, and Chiu is a little tiny bit behind, but all of them are well within the margin of error of a poll sample of only 500 people. Yee is out in front at 17 percent (I’m actually surprised he’s not further ahead at this point, since so much of this is name recognition and he’s been elected so many times, to so many jobs, over so many years that he has by far the best name rec in the race). Chiu and Herrera are tied at 13 and 12 percent (but with a plus-or-minus five percent MOE, all three are statistically in a dead heat).


I would have thought John Avalos would be closer to the top at this point, since he’s doing a good job consolidating the left, but he’s never run citywide, and the campaigns have barely started. Again: It’s name recognition right now.


The bottom line: There is no front runner (with the possible exception of Yee). There may never be a front-runner among the three men bunched in the center of the pack. It’s all going to come down to who gets the second- and third-place votes — which is why ranked-choice voting is so valuable in a race like this. In a traditional race, two candidates who combined might have 35 percent of the vote would be in a runoff, and a candidate who missed the cut by half a percentage point would be out of the running.


One thing we do know: This poll is going to drive Rose Pak and Willie Brown nuts, and increase dramatically the pressure on Ed Lee to run. the more powerful Yee appears, the more likely it is that the center of power in the Asian community will shift away from Pak’s Chinatown operations. Yee’s base is west side, not Chinatown; always has been. Pak despises him (and the feeling is no doubt at least somewhat mutual).


The other fact that weighs in Yee’s favor: He’s doing a better job than anyone of expanding his base. He’s racking up leftside endorsements (unions, the Sierra Club) and aiming hard at the Avalos Number Twos.


As for the questions about what people want in a mayor? Again, these are poll-tested platitudes that we hear every year, and we’re going to hear more of them. “Together.” “Shared values.” “Making the city work.” If it weren’t such a beautiful day, I’d want to puke out my window.

Behind the all-smiles budget

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news@sfbg.com

When Mayor Ed Lee released his 2011-12 budget proposal June 1, all was sweetness and light at City Hall.

The mayor delivered the document in person, to the supervisors, in the board chambers. Sup. Carmen Chu, chair of the Budget Committee, was standing to the mayor’s right. Board President David Chiu was to his left. There was none of the imperious attitude we’d come to expect in the Gavin Newsom era — and little of the typical hostility from the board.

As Sup. David Campos, who was elected in November 2008, remarked afterward: “It’s the first time since I’ve been elected that the mayor has taken the time to come to chambers. It’s reflective of how this has been a lot more of an inclusionary process.”

Lee went even further. “This is a pretty happy time,” he said. “There are no layoffs, and instead of closing libraries we’ll be opening them.” That earned him an ovation from assembled city leaders, including mayoral candidates City Attorney Dennis Herrera and Assessor-Recorder Phil Ting along with District Attorney George Gascón. “I think this budget represents a lot of hope.”

It’s true that this year’s cuts won’t be as bad as the cuts over the past five years. It’s also true that the pain is spread a bit more — the police and fire departments, which Newsom, always the ambitious politician, wouldn’t touch, are taking their share of cuts.

But before everybody stands up and holds hands and sings “Kumbaya,” there’s some important perspective that’s missing here.

Over the past half-decade, San Francisco has cut roughly $1 billion out of General Fund spending. The Department of Public Health has eliminated three- quarters of the acute mental health beds. Six homeless resource centers have closed. The waiting list for a homeless family seeking shelter is between six and nine months. Muni service has been reduced and fares have been raised. Recreation centers have been closed. Library hours have been reduced.

In other words, services for the poor and middle class have been slashed below acceptable levels, year after year — and Mayor Lee’s budget doesn’t even begin to restore any of those cuts.

“We’re not ready yet to restore old cuts,” Lee told the Guardian in a June 2 interview. “It was enough for us to accomplish a pretty steady course and keep as much. Particularly with the critical nonprofits that provide services to seniors and youth and homeless shelters, we kept them as close as we could to what last year’s funding was.”

But the current level of funding is woefully inadequate. As Debbi Lerman, administrator of the Human Services Network, noted, the people who work in the nonprofits Lee was talking about haven’t had a pay raise in four years — even though the cost of living continues to rise. “Our costs have gone up with cost of inflation,” she noted.

She said the cuts over the past few years have deeply eroded services for children, homeless people, substance abuse programs, and others. “There have been significant cuts to every area of health and human services.”

And in a city with 14 billionaires and thousands more very wealthy people, Lee’s budget is distinctly lacking in significant new ways to find revenue.

 

THE GOOD NEWS

Just about everyone agrees that the budget process this year has been far better than anything anyone experienced under Newsom. “He [Mayor Lee] listened to everybody,” Lerman said. “That doesn’t mean they fixed everything. Mayor Lee fixed as much as he could.”

At his press conference announcing the release of the budget, Lee thanked Police Chief Greg Suhr for having already made significant cuts through management restructuring and for considering an additional proposed cut of $20 million.

“We want to thank you for that great sacrifice,” Lee said, addressing Suhr, who sat in front row of public benches, dressed in uniform. Lee next acknowledged that adequate funding for social services also helps public safety. “Without those services, officers on the street would have a harder job,” he said.

Lee also praised the departments of Public Health and Human Services for helping to identify $39 million in federal dollars and $16 million in state dollars, to help keep services open and the city safer.

Lee noted that San Francisco no longer has a one-year budget process and has just released its first five-year financial plan as part of its decision to go in five-year planning cycles.

“To address this, I’ve asked for shared sacrifice, ” Lee continued, adding that he recently released his long-awaited pension reform charter amendment, emphasizing that it was built through a consensus and collaborative-based approach.

Lee also said he would consider asking voters to approve what he called “a recovery sales tax” in November if Gov. Jerry Brown is unable to extend the state’s sales tax. That would bring in $60 million — but it is only on the table as a way to backfill further state budget cuts.

Lee observed that San Francisco is growing, the economy is looking brighter, and unemployment is down from more than 10 percent last January to 8.5 percent today. He plugged the America’s Cup, the city’s local hire legislation, the Department of Public Works’ apprenticeship programs, and tourism, both in terms of earmarking funding in the budget for these programs and their potential to boost city revenues.

He said his budget proposed $308 million in infrastructure investments that include enhanced disability access, rebuilding jails, and energy efficiency, and is proposing a $248 million General Obligation bond for the November ballot to reduce the street repair backlog.

“We will get these streets repaired,” he promised.

“This submission of a budget is not an end at all, it’s the beginning of the process,” he continued, going on to recognize Chu for her work getting the process rolling and thanking Budget Analyst Harvey Rose in advance. “I do know his cooperation is critical.”

And he concluded by thanking each of the supervisors. “I will continue enjoying working with you — we need to keep the city family tight and together.”

The sentiment was welcomed by supervisors. “As he said, this is the beginning of the process, and it’s an important and symbolic step” Campos said. “The budget shows that a lot of good programs have been saved. But there is still work to do.

“There are still gaps in the safety network,” he added, singling out cuts to violence-prevention programs. “It’s my hope they will be restored.”

 

THE BAD NEWS

But even if the cuts for this year are restored, the city budget is nowhere near where it ought to be. “We still had to make cuts,” Lee acknowledged.

“We did consider very seriously a whole host of revenue ideas that we had,” he said. “They were not off the agenda at all.” At the same time, he noted that state law requires a two-thirds vote for new taxes (although that threshold drops to 50 percent in presidential election years). “We decided that it’s not that they were bad ideas, but that we wouldn’t be able to sell them at this time.”

Lee praised some of the revenue ideas that have been suggested in the past year, including the alcoholic beverage fee proposal by Sup. John Avalos, which Lee called “a pretty good idea.” He said that “a year or two from now” an additional sales tax and a parcel tax (for the police or for schools and open space) might be on the agenda.

The city now has a multiyear budget process and projections are supposed to go beyond a single year. But what’s missing — and what nobody is talking about — is a long-term plan to restore critical city services to a sustainable level. That means talking — now — about tax proposals for 2012 and beyond and including those revenue streams in long-term budget planning.

Because the city parks, the public health system, the libraries, the schools, affordable housing programs, and the social safety net are in terrible condition today, the result of year after year of all-cuts budgets. And while the supervisors and the mayor wrangle over the final details, and advocates try to win back a few dollars here and a few dollars there, it’s important to recognize that this budget does nothing to fix the damage.

“We’re about $10 million short of what we need right now to keep service providers at current levels,” noted Jennifer Freidenbach, who runs the Coalition on Homelessness. “But we also need to restore the health and human services system that was slaughtered under Gavin Newsom.”