Ed Lee

Meet the new boss

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news@sfbg.com

The Guardian hasn’t been invited into City Hall’s Room 200 for a long time. Former Mayor Gavin Newsom, who frequently criticized this newspaper in his public statements, had a tendency to freeze out his critics, adopting a supercilious and vinegary attitude toward any members of the press who questioned his policy decisions. So it was almost surreal when a smiling Mayor Ed Lee cordially welcomed two Guardian reporters into his stately office Feb. 15.

Lee says he plans to open his office to a broader cross-section of the community, a move he described as a way of including those who previously felt left out. Other changes have come, too. He’s replaced Newsom’s press secretary, Tony Winnicker, with Christine Falvey, former communications director at the Department of Public Works (DPW). He’s filled the Mayor’s Office with greenery, including giant tropical plants that exude a calming green aura, in stark contrast to Newsom — whose own Room 200 was sterile and self-aggrandizing, including a portrait of Robert Kennedy, in whose footsteps Newsom repeatedly claimed to walk.

When it comes to policy issues, however, some expect to see little more than business-as-usual in the Mayor’s Office. Democratic Party chair Aaron Peskin, a progressive stalwart, said he sees no substantive changes between the new mayor and his predecessor. “It seems to me that the new administration is carrying forward the policies of the former administration,” Peskin said. “I see no demonstrable change. And that makes sense. Lee was Willie Brown and former Mayor Gavin Newsom’s handpicked successor. So he’s dancing with the guys that brought him in.”

Sup. David Campos, viewed as part of the city’s progressive camp along with Peskin, took a more diplomatic tack. “So far I’ve been very pleased with what I’ve seen,” Campos noted. “I really appreciate that he’s reached out to the community-based organizations and come out to my district and done merchant walks. I think we have to wait to see what he does on specific policy issues.”

But while Lee has already garnered a reputation for being stylistically worlds apart from Newsom, he still hews close to his predecessor’s policies in some key areas. In our interview, Lee expressed an unwillingness to consider tax-revenue measures for now, but said he was willing to take condo conversions into consideration as a way to bring in cash. He was unenthusiastic about community choice aggregation and dismissive of replacing Pacific Gas & Electric Co. with a public-power system. He hasn’t committed to overturning the pending eviction of the Haight Ashbury Neighborhood Council’s recycling center, and he continued to argue for expanding Recology’s monopoly on the city’s $206 million annual trash stream, despite a recent Budget and Legislative Analyst’ report that recommended putting the issue to the voters.

Public Defender Jeff Adachi, who met Lee in 1980 through the Asian Law Caucus, said Lee would be facing steep challenges. “It’s a fascinating political karmic outcome that he is now our appointed mayor. He didn’t seek it out, as he says, but the opportunity he has now is to focus his efforts on fixing some of the problems that have gone unaddressed for decades, pension reform being one of them. I think he realizes he has a limited time to achieve things of value. The question I and others have is, can he do it?”

 

THE RELUCTANT MAYOR

Lee identified as a non-politician, patently rejecting the notion that he would enter the race for mayor. In meetings with members of the Board of Supervisors at the end of 2010, he said he didn’t want the job.

Yet while vacationing in Hong Kong, Lee became the subject of a full-court press. “When the lobbying and phone calls started … clearly they meant a lot to me,” Lee told us, adding that the choice “was very heavy on my mind.” He finally relented, accepting the city’s top post.

Although rumors had been circulating that Lee might seek a full term, he told the Guardian he’s serious about serving as a caretaker mayor. “If I’m going to thrust all my energy into this, I don’t need to have to deal with … a campaign to run for mayor.”

Adachi offered an interesting take on Lee as caretaker: “Somewhere along the way, [Lee] became known as the go-to guy in government who could take care of problems,” Adachi said, “like the Wolf in Pulp Fiction.”

Sounding rather unlike Harvey Keitel’s tough-talking character, Lee noted, “One of my goals is to rebuild the trust between the Mayor’s Office and the Board of Supervisors. I think I can do that by being consistent with the promises I make.”

Lee’s vows to keep his promises, mend rifts with the board, and stay focused on the job could be interpreted as statements intended to set him apart from Newsom, who was frequently criticized for being disengaged during his runs for higher office, provoking skirmishes with the board, and going back on his word.

The new mayor also said he’d be willing to share his working calendar with the public, something Newsom resisted for years. Kimo Crossman, a sunshine advocate who was part of a group that began submitting requests for Newsom’s calendar in 2006, greeted this news with a wait-and-see attitude. “I’ve already put in a request,” Crossman said. “Politicians are always in support of sunshine — until they have to comply with it.”

 

THE ELEPHANT IN THE ROOM

Pointing to the tropical elephant-ear plants adorning his office, Lee noted that elephants are considered lucky in Chinese culture. With the monstrous issues of pension reform and a gaping budget deficit hitting his mayoral term like twin tornadoes, it might not hurt to have some extra luck.

Pension reform is emerging as the issue du jour in City Hall. A round of talks on how to turn the tide on rising pension costs has brought labor representatives, Sup. Sean Elsbernd, billionaire Warren Hellman, City Attorney Dennis Herrera, labor leaders, and others to the table as part of a working group.

Gabriel Haaland, who works for SEIU Local 1021, sounded a positive note on Lee. “He’s an extraordinarily knowledgeable guy about government. He seems to have a very collaborative working style and approach to problem-solving, and he is respectful of differing opinions,” Haaland said. “Where is it going to take us? I don’t know yet.”

Lee emphasized his desire to bring many stakeholders together to facilitate agreement. “We’re talking about everything from limiting pensionable salaries, to fixing loopholes, to dealing with what kinds of plans we can afford in the health care arena,” he noted. Lee said the group had hashed out 15 proposals so far, which will be vetted by the Controller’s Office.

A central focus, Lee said, has been “whether we’ve come to a time to recognize that we have to cap pensions.” That could mean capping a pension itself, he said, or limiting how much of an employee’s salary can be counted toward his or her pension.

Since Lee plans to resume his post as city administrator once his mayoral term has ended, he added a personal note: “I want to go back to my old job, do that for five years, and have a pension that is respectable,” he said. “At the same time, I feel others who’ve worked with me deserve a pension. I don’t want it threatened by the instability we’re headed toward and the insolvency we’re headed toward.”

 

BRACING FOR THE BUDGET

If pension reform is shaping up to be the No. 1 challenge of Lee’s administration, tackling the city budget is a close second. When Newsom left office, he passed Lee a budget memo containing instructions for a 2.5 percent reduction in most city departments, part of an overarching plan to shave 10 percent from all departments plus another 10 percent in contingency cuts, making for a bruising 20 percent.

Lee said his budget strategy is to try to avert what Sup. David Chiu once characterized as “the typical Kabuki-style budget process” that has pitted progressives against the mayor in years past. That means sitting down with stakeholders early.

“I have opened the door of this office to a number of community groups that had expressed a lot of historical frustration in not being able to express to the mayor what they feel the priorities of their communities are,” Lee said. “I’ve done that in conjunction with members of the Board of Supervisors, who also felt that they weren’t involved from the beginning.”

Affordable-housing advocate Calvin Welch said Lee’s style is a dramatic change. “I think he’s probably equaled the total number of people he’s met in six weeks with the number that Newsom met in his seven years as mayor,” Welch said.

Sup. Carmen Chu, recently installed as chair of the Budget & Finance Committee, predicted that the budget will still be hard to balance. “We are still grappling with a $380 million deficit,” Chu told us, noting that there are some positive economic signs ahead, but no reason to expect a dramatic improvement. “We’re been told that there is $14 million in better news. But we still have the state budget to contend with, and who knows what that will look like.”

Sup. John Avalos, the former chair of the Board’s powerful Budget Committee, said he thinks the rubber hasn’t hit the road yet on painful budget decisions that seem inevitable this year — and the outcome, he said, could spell a crashing halt to Ed Lee’s current honeymoon as mayor.

“We are facing incredible challenges,” Avalos said, noting that he heard that labor does not intend to open up its contracts, which were approved in 2010 for a two-year period. And federal stimulus money has run out.

 

DID SOMEONE SAY “CONDO CONVERSIONS”?

Asked whether he supported new revenue measures as a way to fill the budget gap, Lee initially gave an answer that seemed to echo Newsom’s inflexible no-new-taxes stance. “I’m not ready to look at taxes yet,” he said.

He also invoked an idea that Newsom proposed during the last budget cycle, which progressives bitterly opposed. In a conversation with community-based organizations about “unpopular revenue-generating ideas,” Lee cautioned attendees that “within the category of unpopular revenue-generating ideas are also some that would be very unpopular to you as well.”

Asked to explain, Lee answered: “Could be condo conversion. Could be taxes. I’m not isolating any one of them, but they are in the category of very unpopular revenue-generating ideas, and they have to be carefully thought out before we determine that they would be that seriously weighed.”

Ted Gullicksen, who runs the San Francisco Tenants Union, said tenant advocates have scheduled a meeting with Lee to talk about condo conversions. Thanks to Prop. 26’s passage in November 2010, he said, any such proposal would have to be approved by two-thirds of the board or the voters. “It’s pretty clear that any such measure would not move forward without support from all sides,” Gullicksen said. “If anyone opposes it, it’s going to go nowhere.”

Gullicksen said he’d heard that Lee is willing to look at the possibility of significant concessions to renter groups in an effort to broker a condo conversion deal, such as a moratorium on future condo conversions. “If, for example, 1,000 TICs [tenants-in-common] became condos under the proposal, then we’d need a moratorium for five years to minimize and mitigate the damages,” Gullicksen explained.

More important, some structural reform of TIC conversions may be on the table, Gullicksen said. “And that would be more important than keeping existing TICs from becoming condos.”

Gullicksen acknowledged that Lee has the decency to talk to all the stakeholders. “Newsom never attempted to talk to tenants advocates,” he said.

 

GREEN, WITHIN LIMITS

Lee’s two children are in their early 20s, and the mayor said he takes seriously the goal of being proactive on environmental issues in order to leave them with a more sustainable San Francisco. He trumpeted the city’s green achievements, saying, “We’re now on the cutting edge of environmental goals for the city.”

Leading bicycle activist Leah Shahum of the San Francisco Bicycle Coalition had praise for Lee on bike issues. “I’m really encouraged by his very public support of the new green separate bikeways on Market Street and his interest and commitment to creating more,” she said. “I believe Mayor Lee sees the value of connecting the city with cross town bicycle lanes, which serve a wide range of folks, including business people and families.”

Yet some proponents of green causes are feeling uncertain about whether their projects will advance under Lee’s watch.

On the issue of community choice aggregation (CCA), the ambitious green-energy program that would transfer Pacific Gas & Electric Co. customers to a city-run program with a cleaner energy mix, Lee — who helped determine rates as city administrator — seemed lukewarm. “I know Mr. [Ed] Harrington and his staff just want to make sure it’s done right,” he said, referring to the general manager of the city’s Public Utilities Commission, whose tepid attitude toward the program has frequently driven him to lock horns with the city’s chief CCA proponent, Sup. Ross Mirkarimi.

Lee noted that CCA program goals were recently scaled back. He also said pretty directly that he opposes public power: “We’re not in any day getting rid of PG&E at all. I don’t think that is the right approach.”

The controversial issue of the Haight Ashbury Neighborhood Council Recycling Center’s pending eviction from Golden Gate Park still hangs in the balance. The Recreation and Park Commission, at Newsom’s behest, approved the eviction despite overwhelming community opposition.

Lee said he hadn’t looked at the issue closely. “I do know that there’s a lot of strong debate around the viability, what that operation attracts and doesn’t attract,” he said. “I had the owner of HANC here along with a good friend, Calvin Welch, who made a plea that I think about it a bit. I agreed that I would sit down and talk with what I believe to be the two experts involved in that decision: Melanie Nutter at the Department of the Environment and then Phil Ginsburg at the Rec and Park.” Nutter and Ginsburg supported HANC’s eviction.

Welch, who is on the board of HANC, noted that Lee could be swayed by his staff. “The bunch around Newsom had old and bad habits, and old and bad policies. In dealing with mayors over the years, I know how dependent they are on their staff. They’re in a bubble, and the only way out is through a good staff. Otherwise, Lee will come to the same conclusions as Newsom.”

HANC’s Jim Rhoads told the Guardian he isn’t feeling reassured. “He said he would keep asking people about it. Unfortunately, if he asked his own staff, it would be a problem because they’re leftovers from Newsom.”

Speaking of leftovers, Lee also weighed in on the debate about the city’s waste-management contract — and threw his support behind the existing private garbage monopoly. Campos is challenging a perpetual waste-hauling contract that Recology has had with the city since 1932, calling instead for a competitive-bidding process. When the Department of the Environment recommended awarding the city’s landfill disposal contract to Recology last year, it effectively endorsed a monopoly for the company over managing the city’s entire waste stream, at an estimated value of $206 million per year.

The final decision to award the contract was delayed for two months at a February Budget & Finance Committee hearing. Campos is contemplating putting the issue to the voters this fall, provided he can find six votes on the Board.

“I know that Sup. Campos had given his policy argument for why he wants that revisited,” Lee said. “I have let him know that the Recology company in its various forms has been our very dependable garbage-hauling company for many, many decades. … I feel that the company has justified its privilege to be the permit holder in San Francisco because of the things that it has been willing to do with us. Whether or not we want to use our time today to revisit the 1932 ordinance, for me that wouldn’t be a high priority.”

 

UNFINISHED BUSINESS

In the last week of 2010, Avalos pushed through groundbreaking local-hire legislation, without the support of then Mayor Gavin Newsom or his chief of staff, Steve Kawa, who wanted Avalos to back off and let Newsom takeover the task.

With Lee now in Room 200, things appear to be moving forward on local hire, in face of misleading attacks from Assemblymember Jerry Hill (D-San Mateo), who wants to make sure no state money is used on local-hire projects, presumably because the building trades are upset by it. And Kawa, whom Lee has retained as chief of staff, doesn’t really support the legislation. Indeed, Kawa’s presence in the Mayor’s Office has his detractors believing that the new boss in Room 200 is really the same as the old boss.

“I feel like things are moving forward in the right direction around local hire, though a little more quietly than I’d like,” Avalos told the Guardian. Avalos noted that he is going to hold a hearing in March on implementing the legislation that should kick in March 25.

Welch said he believes that if Lee starts replacing staff wholesale, it could indicate two things: he’s a savvy guy who understands the difficulties of relying on Newsom’s chief of staff Steve Kawa for a budget, and he’s not ruling out a run for mayor.

“If I was in his position, the first thing out of my mouth would be, ‘I’m not running.’ I think he’s very focused in the budget. And it’s going to make or break him. But if he starts overriding Kawa and picks staff who represent him … well, then I’d revisit the question of whether he’s contemplating a run for mayor, say, around June.”

Is Adachi’s pension reform a Tea Party initiative?

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With all eyes on Wisconsin, local labor leaders are suggesting that Public Defender Jeff Adachi’s proposed retirement/health plan reforms are really Tea Party initiatives, even as Adachi threatens to place another Measure B-like initiative on the fall ballot if city leaders can’t agree on a fix for the city’s fiscal problems

Last fall, Adachi started a war with the local labor movement when he placed Measure B on the November ballot. Measure B proposed increasing employee contributions for retirement benefits, decreasing employer contributions for heath benefits for employees, retirees and their dependents, and changing rules for arbitration proceedings about city collective bargaining agreements,

Measure B ultimately failed, but not after both sides spent a ton of cash. And now labor is refusing to have Adachi sit in on their pension reform talks with Mayor Ed Lee, former SEIU President Andy Stern is describing the fight in Wisconsin as a ’15 state GOP Power grab,” and SEIU Local 1021 leader Gabriel Haaland is pointing to Wisconsin as a reason for excluding Adachi from pension reform talks

“Adachi’s obviously scapegoating a group that’s part of a national agenda,” Haaland said, noting that in the states where Republicans gained statehouse control in 2010, there’s talk about eliminating collective bargaining, and ending defined benefit plans and paycheck protection.

“The problem is that pension reform has been blowing on the anti-public sector worker winds that are blowing in Wisconsin and other states, whether progressives want to acknowledge it or not,” Haaland continued. “There is a reason that Adachi got so much money last year, and the corporate interests behind him are part of this effort to bash public sector workers.”

Prop. B’s campaign finance records show the campaign raised $1.125 million in 2010, and that the lion’s share came from wealthy individuals.

Billionaire venture capitalist, former Google board member and Obama supporter Michael Moritz gave $245,000. Author Harrier Heyman, Moritz’ wife, donated $172,500. financial analyst Richard Beleson donated $110,000. George Hume of Basic American Foods donated $50,000. Gov. Schwarzenegger’s former economic policy advisor David Crane gave $37,500. Philanthropist Warren Hellman donated $50,000. Republican investor Howard Leach, who co-hosted a Prop. B fundraiser with former Mayor Willie L. Brown, gave $25,000. Investor Joseph Tobin gave $15,750. Maverick Capital partner David Singer gave $15,000. JGE Capital Partners donated  $15,000; Bechtel owner  Stephen Bechtel Jr gave $10,000: Matthew Cohler, a general partner of Benchmark Capital, donated $10,000; the California Chamber of Commerce donated $5,000 and philanthropist Dede Wilsey gave $1,000.

But records also show that Measure B opponents, which included San Francisco Firefighters, SF Police Officers Association, SF First Responders, the California Nurses Association, United Educators, San Francisco Gardeners, San Francisco Teachers, Library Workers, laguna Honda Workers, donated over $1 million in their successful bid to squash Adachi’s reform. And that just about every elected Democrat, including Assemblymember Tom Ammiano, then mayor Gavin Newsom, Sheriff Mike Hennessey, and Board President David Chiu, came out against Adachi’s original plan.
 
Haaland acknowledged that the argument could be made that the progressives’ version of the hotel tax didn’t pass and less attention was paid to the district elections last fall, because labor focused primarily on defeating Adachi’s Measure B.

“But at the end of the day, we did get the real estate transfer tax and we defeated Measure B,” Haaland observed. “So, we need to keep fighting anti-worker pressure. It’s challenging times, but I feel like the connections need to be made.”

Adachi was swift to refute Haaland’s claim that his Measure B pension reform is and was a Tea Party initiative.
“What’s not been reported is the fact that there are all these people supporting pension reform who are progressive Democrats,” Adachi said, pointing to Moritz, Crane and former Board President and Green Party member Matt Gonzalez, who all supported Measure B last fall.

“You are talking about saving basic services and that’s a progressive cause,” Adachi continued. “You might argue that pension reform isn’t a progressive solution. But then you are saying that the needs of one group of workers are subservient to the needs of other workers. And even if you raised every tax in the city, you’d not be able to keep up with pension and healthcare costs.”

“Even if we could raise parking tickets to $200 a pop, and tax folks who make more than $100,000 a year, that still wouldn’t solve the problem, because the problem is so huge,” Adachi added. “When you look at this crisis, you can’t simply redbait and say, you are a Republican, or Sarah Palin. Matt Gonzales has always spoken for progressive values, but because he supports pension reform, he’s suddenly a member of the Tea Party? At a certain point, it begins to become absurd.”

Haaland countered that he’s  “challenged by the notion that thousands show up in Wisconsin to fight some of the same people behind Measure B, but our discourse has lowered to whether or not Jeff Adachi is a good guy.”

And Adachi expressed doubt that Mayor Ed Lee can come up with a suitable pension reform plan.

“I’ve heard Lee say there has to be a solution involving pension reform and underfunded healthcare benefits that would save $300 million to $400 million in annual savings, and that corresponds with the solution he needs to come up with to close the budget deficit,” Adachi said.

Adachi said that he has met with Lee on his own to discuss pension reform, but the new mayor did not list specifics.
“He didn’t tell me what his plan was,” Adachi said, “The Prop. B supporters have a plan, but Lee did not ask what that was. But he said he sincerely wants to solve that problem, and that his preference would be one ballot initiative that everyone would agree on. And I fully support a solution that is going to truly solve the problem. I’ve always believed it’s important for the public to understand the gravity of the situation. For too long, it’s been the elephant in the room and there hasn’t been enough public information.”

Adachi said he had a beef with the idea of “groups of labor unions holding meetings at City Hall and deciding who can participate.”

“It’s also troubling that there is no information publicly available about what the ideas on the table are, no explanation of how they got there, and no documenting of the extent of the problem,” Adachi continued. “And that’s what got us here in the first place: a lack of transparency, and voters being asked to weigh in without the full information.”

Adachi said he has an upcoming meeting with Lee, the Department of Human Resources and Sup. Sean Elsbernd about pension reform that is separate from the working group that includes labor and philanthropist Warren Hellmann.

And Elsbernd told the Guardian he believes the pension reform process would go smoother if Adachi were at the table.
“I have no problem with Jeff at the table, it makes sense to have him there to avoid two ballot measures,” Elsbernd said.

Elsbernd added that it was too early to cite numbers when it comes to talk of capping pensions.
“It’s a mistake to pick a number right now because you don’t know what it’s worth,” he said, noting that the pension reform working group has sent a bunch of different scenarios to retirement actuaries to crunch the numbers to see how much they would save the city.

“I can see a case being made for asking the highest paid city workers to contribute higher amounts for healthcare benefits,” Elsbernd said. “But I’m not sure that’s equitable on retirement benefits, though I could see a situation where safety pays more, regardless, because they have better pensions.”

Warren Hellman: The rich are undertaxed

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I couldn’t reach financier Warren Hellman before I wrote my column in this week’s paper talking about the employee pension discussions. But he called me yesterday (Feb. 16) after he’d seen it, and I expected he’d give me some shit.


Wrong.


In fact, Hellman had only one problem with my analysis: “Your article is didn’t go far enough.” Turns out he thinks I was a bit too easy on the billionaires.


“When you compare upper-echelon tax rates [in America] to any developed country in the world,” Hellman said, “the rich pay very low taxes here. You’re article is exactly correct — the wealthy are undertaxed.” He told me that he’s stopped trying to amass more personal wealth (“it’s all going into a foundation”) because he realizes that he couldn’t possibly spend all the money he has “and all that happens if you leave it all to the next generation is that you spoil your kids.” 


Quite a statement coming from one of the city’s richest and most influential business leaders.


Of course, putting all the money in a foundation isn’t the only answer.   The only way to address the wealth gap, and the decline in social, education and infrastructure spending, to for the government to get more involved — and that means collecting more tax money from the people who can afford to pay it. Hellman told me that he’s not about to accept a reduction in his lifestyle — but we both agreed that he doesn’t have to. He could pay a lot more in taxes and still be really, really rich.


So we talked about my proposal, which goes like this:


I’ve got a suggestion for the pension reform negotiators. Why not talk a little about parity.


 Yes, pensions have to be fixed; let’s start at the top. Maybe nobody should have a pension of more than $100,000 a year; certainly, a former police chief shouldn’t get $250,000 a year for life. Maybe the highest-paid city employees should have to pay more into the pension system to protect the pensions of the people who make less. I could easily support progressive pension reform that would save the city money.


 I just think tax reform should also be part of the equation.


 Hellman wants $300 million in pension savings? Good — how about pairing it with $300 million in new taxes on the wealthy? How about big business and rich people give up something this time around, instead of all of the cuts falling on public employees and poor San Franciscans?


And Hellman, to his credit, didn’t disagree with the concept. His problem he said, was with the politics. “Taxes are the third rail of politics,” he said. “I’ve gotten my head handed to me three times now when I’ve supported tax increases.” 


But I still think there’s a way to move forward here. The city employee unions agree to some sort of pension reform, which starts with a pension cap and higher payments from higher earners (not with what amounts to a pay cut for lower-wage employees who have already taken pay cuts in the past few years). Then Hellman, Mayor Ed Lee and Sup. Sean Elsbernd agree to support a progressive tax measure that would bring in badly needed revenue for public services and education.


It’s possible that the tax measure would have to wait until Nov. 2012, when it would only require a 50 percent vote. Maybe both measures go on that ballot. And Hellman, Elsbernd and Lee use their clout with downtown to push the Chamber of Commerce and the Commitee on JOBS to at least stay neutral and cut off any big-money campaign against the tax measure. Then they all agree to help raise money and campaign to pass it. And labor agrees to work for both measures.


Hellman said he feared that “one would kill the other” and both measures might fail. But I believe the people of San Francisco are willing to support new taxes — progressive new taxes — if they don’t think the money’s going to waste. And pairing pension refrom with new taxes sends a strong message: We’re all sharing the pain. Particularly if Hellman, Elsbernd and Lee can sell the tax package part of the deal to the business community.


It’s worth a try. Because otherwise, we’re going to have another Prop. B battle, both sides are going to spend a ton of money, and nobody’s going to walk away happy.


“It’s worth thinking about,” Hellman told me. I hope so.

Green Bay Packers’ Desmond Bishop drops in on Lee

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So, there I was sitting in the Mayor’s Office with fellow Guardian reporter Rebecca Bowe waiting to see Mayor Ed Lee when in walks Green Bay Packers linebacker and D10 native Desmond Lamont Bishop, who helped win the Super Bowl XLV, this month.

Turns out Bishop was there to see Lee, shortly before D10 Sup. Malia Cohen honored Bishop during the Board’s Black History month commendations’ ceremony.

We didn’t get a chance to interview Bishop (he was whisked into Lee’s office super quick), but Bowe and I surfed the web while waiting for our appointment with Lee and soon learned that Bishop was born in San Francisco on July 24, 1984, is 6 feet 2 inches tall, weighs 238 pounds, and was at Cal in 2005/06, before being drafted by the Packers in 2007, where he wears jersey number 55.
 
Cohen later confirmed that Bishop was born in Hunters Point and went to Visitacion Valley Junior High, before going to high school in Fairfield, and then returned to San Francisco to attend City College before heading to the University of California.

“Desmond is also deeply involved in his community,” Cohen said in a press release, which notes that Bishop started the Desmond Bishop Football Camp and participates in programs to help kids to be healthy and learn to read, including the Boys and Girls Club.“The Bishop family moved to San Francisco over 50 years ago, and Desmond’s grandfather still lives in Bayview Hunters Point.”

Too bad we didn’t have a chance to get Bishop’s autograph, but hopefully next time…

Editor’s Notes

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tredmond@sfbg.com

In a heartwarming Valentine’s Day blog, Paul Krugman, the Nobel Prize-winning economist, talks about an old cartoon that ran in the 1980s showing Democrats trying to develop a centrist economic policy that cut spending on social programs. “How is this different from Republicans?” one Democrat asks. The answer: “We care about the victims of our policies.”

That, Krugman says, “is pretty much my reaction to the Obama budget.” The president talks about how awful the cuts will be, how programs he cares about will have to go, how painful this all is for him. Not that he’s going to miss any meals or wind up homeless, but whatever: we can all feel his pain.

It’s also pretty much my reaction to The Bay Citizen report that ran in The New York Times Feb. 13 on the pension reform negotiations going on at City Hall and in the office of billionaire financier Warren Hellman.

Hellman, Mayor Ed Lee, Sup. Sean Elsbernd, and some labor leaders are talking about how to avoid another bruising ballot measure fight this fall. Hellman backed off from supporting Public Defender Jeff Adachi’s Proposition B last year after some labor folks convinced him they could come up with a better plan.

Hellman’s new bottom line: the group needs to find between $300 million and $400 million in savings. He is quoted as saying: “I hate that it comes out of the hide” of city workers. “It is going to be really painful.”

Warren Hellman’s not a bad guy. I’ve met him, he’s polite and friendly, sometimes even almost sort of a liberal on some issues, and I think he does feel bad about cutting the pensions of low-level city employees. I even agree with him that the pension system needs reform.

But here’s the problem: nothing ever comes out of the hides of the rich.

Over the past five years, San Francisco has cut hundreds of millions in city spending. City employees have given back many millions more in concessions. Nonprofits have cut back services to the poor, the disabled, the sick.

But we haven’t asked big business and wealthy people to give up anything. Hellman hasn’t had to tighten his belt. Corporate executives in the city still make huge salaries. They’re not closing the swimming pool at the Olympic Club.

I could support pension reform — if Hellman, Elsbernd, and Lee would support tax reform. Then we can all feel each other’s pain. For once.

Mayor Ed Lee willing to disclose work calendar

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Among the many issues that rankled progressives under Mayor Gavin Newsom’s administration was Newsom’s unwillingness to turn over his work calendar to members of the public who formally requested it. Beginning in 2006, a group of sunshine activists routinely submitted public-information requests for the mayor’s daily schedule in hopes of finding out who Newsom was meeting with, what events he attended, and just how he spent his time on the job as mayor of San Francisco. After years of battle, Newsom finally agreed to release a watered-down calendar containing very little information.

On this matter, it does not seem as if Interim Mayor Ed Lee will follow in the footsteps of his predecessor.

In an interview with Guardian reporters today, Mayor Lee indicated that he would be willing to make his calendar available to the public. “Sure,” he said when we asked him about it. “I have no problem with that.”

Lee noted that he has complied with similar requests in the past. “I’ve had those already reviewed as the City Administrator, so I’m used to it,” Lee said.

He added that while he was willing to share his work-related calendar, “I may not want to share where I privately go every night.”

That’s OK. Thanks to former Mayor Willie Brown, we already know Lee went out to dinner in North Beach the other night with Brown, Rose Pak, and several others.

Twitter tax break could help a well-connected landlord

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Opposition to the proposal to give millions of dollars in city payroll tax breaks to Twitter and other companies that open for business in the mid-Market area has focused on the bad precedent of caving into demands for corporate welfare and the lead role that two people who call themselves progressives – Sup. Jane Kim and Board President David Chiu – are taking in pushing the deal.

But behind-the-scenes, there’s another aspect of the deal that is troubling to advocates for transparent government that acts in the broad public interest, rather than that of powerful individuals. And once again, the specter at the center of this insider deal-making is none other that former mayor Willie Brown, whose close allies seem to once again have the run of City Hall.

The mid-Market property that Twitter wants to move into is San Francisco Mart, a million-square-foot building at Market and 9th streets, which sources say has been having a hard time finding tenants to fulfill its ambitious plan to “transition and reinvent” the old furniture outlet as a modern home for high-tech businesses. Most recently, they were unable to seal the deal with Twitter – until the tax break proposal popped up.

The building is owned by millionaire developer Alwin Dworman, founder of the ADCO Group and someone who has had a 30-plus-year friendship with Brown, who sang Dworman’s praises in this 2007 article from the San Francisco Business Times discussing this property and others. The property is also operated by Linda Corso, longtime partner of Warren Hinckle, a local media figure with close ties to Brown (as well as Gavin Newsom, who last year named Hinckle as his alternative representative to the DCCC). Reached by phone yesterday, Corso said she wasn’t directly involved in the negotiations with Twitter and would have someone call us, but nobody did.

Brown’s name has been popping up quite a bit in recent months as he and his allies re-exert their deal-making influence on the city, starting four months ago with his stealth support for Kim’s campaign and continuing with his role in elevating his protege Ed Lee to the interim mayor post (the way the pair ran City Hall when Brown was mayor is also the subject of an investigative report in this week’s Guardian) and placing ally Richard Johns onto the Historic Preservation Commission over progressive objections that he was unqualified.

Reached on his cell phone, Brown refused to comment, telling us, “I don’t want to talk to the the Bay Guardian ever in my life. Goodbye.” There is no indication that Brown or other representatives for Dworman lobbied the supervisors over the deal, and both Kim and Chiu say they weren’t contacted. “I’ve never spoken to the man and I don’t know much about his business,” Chiu said of Dworman, although he said that he was told by people in the Mayor Office, which brokered the deal, that Twitter was looking at moving into Dworman’s building.

Kim has maintained that she has very little contact with Brown and doesn’t know why he supported her candidacy. And she said the benefits for Dworman and other big mid-Market landlords who will profit from her legislation wasn’t a factor in her decision to sponsor it. In a prepared statement to the Guardian, she wrote, “I am not aware of any lobbyists for the Mid-Market legislation and therefore certainly have not met with any.  I have communicated directly with Twitter, who are [sic] excited to be a part of revitalizing the Mid-Market corridor and about partnering with community-based organizations and schools who serve the neighboring communities of SOMA and the Tenderloin.  Our office has convened neighborhood stakeholders who will be directly impacted by this legislation and they are currently committed to being a part of this dialogue over the next month.”

Kim told us last week that she philosophically opposes business tax breaks, but that she wanted to help stimulate the mid-Market area and keep Twitter from following through on its threat to leave town. Despite calling himself a progressive, Chiu has supported using targeted tax breaks as a economic development tool, including the biotech tax credit. And yesterday, he told us, “I would love to bring more companies in the mid-Market area…If we don’t do this policy, we will see future years of zero economic activity in that area.”

But progressives say these tax breaks are nothing but corporate welfare that will exacerbate the city’s budget deficit. During a benefit event for Lyon Martin Health Services last night at the Buck Tavern, which is owned by Kim predecessor Chris Daly, signs plastered throughout the bar urged the public to oppose the Twitter tax break in order to preserve public health and other vital city services.

The Ed Lee documents

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One of the depositions taken in a case involving fraud and corruption in city contracting contains some fascinating detail about how City Hall worked under Mayor Willie Brown — and the role the current mayor, Ed Lee, played in the behind-the-scenes action. The deposition of Deborah Vincent-James, who used to run the city’s technology purchasing agency, was taken by Matt Springman, an attorney with Gonzalez and Leigh. You can read the whole thing here (pdf).It gets pretty interesting around page 49, and the Ed Lee/Willie Brown stuff starts on p. 85.

Garbage curveball

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sarah@sfbg.com

A newly released report from the Budget and Legislative Analyst has thrown a curve ball at the Department of the Environment’s proposal to transport the city’s garbage by truck and rail to Yuba County for disposal in Recology’s Ostrom Road landfill.

Recology’s proposal would kick in when the city’s disposal contract with Waste Management’s Altamont landfill reaches its 15 million ton limit, which is anticipated to occur in 2015, or beyond (see “A tale of two landfills,” 06/15/10). But as that much-anticipated proposal finally comes to a Board of Supervisors committee on Feb. 9, the debate has suddenly been significantly broadened.

The Budget and Legislative Analyst’s report recommends replacing existing trash collection and disposal laws with legislation that requires competitive bidding on all aspects of the city’s waste collection, transportation, and disposal system. It also recommends that the Board of Supervisors require that refuse collection rates for both residential and commercial services be subject to board approval, and that competitive bidding could result in reduced refuse collection rates in San Francisco.

The annual cost to ratepayers of the city’s entire refuse system is $206 million, but only the landfill disposal contract, worth $11.2 million a year, gets put out to competitive bid, the BLA observes.

Debra Newman, an analyst with he BLA, told the Guardian that she has been asked why she brought up all these issues in advance of the Board’s Feb. 9 Budget and Finance committee hearing to discuss the Department of Environment’s recommendation that Recology be awarded the disposal contract. The company already has a monopoly over collection and transportation of waste in San Francisco thanks to an 79-year-old voter-approved agreement.

“Our position is that this is the only opportunity to address these issues with the board because of the way the city’s 1932 refuse collection and disposal ordinance reads,” Newman said. “This is the only vehicle we would have because nothing else is going to come to them. The residential rates don’t come to them, the commercial rates don’t even come to the Rate Board. This is our chance to discuss the whole kit and caboodle of waste collection, transportation, and disposal.”

The BLA’s Feb. 4 report notes that “Unlike water rates charged by the SF Public Utilities Commission, neither residential or collection rates are currently subject to Board approval, under the city’s 1932 refuse ordinance.”

Residential rates are approved by the director of Public Works, unless such rates are appealed, in which case they are subject to the approval of the city’s Rate Board, which consists of the city administrator, the controller and the SF Public Utilities Commission director. Recology sets the commercial rates, which are not subject to city approval.

Voters previously rejected two attempts to allow for competitive bidding for refuse collection and transportation (Prop. Z in 1993 and Prop. K in 1994). And the BLA observes that if the Board doesn’t go to the ballot box, it could ask DoE to analyze costs and benefits of using Recology to collect refuse, and using a separate firm to provide transportation, if that firm can avoid transporting refuse through San Francisco’s streets.

Under the never-ending waste ordinance that the city approved during the Great Depression, 97 permits exist to collect refuse within the city, and only authorized refuse collectors that have these permits may transport refuse “through the streets of the City and County of San Francisco.” Due to a number of corporate acquisitions, Recology now owns all 97 permits and so has a monopoly over refuse collected in and transported through the streets of San Francisco.

But the BLA report was unable to identify any portion of the city’s 1932 refuse ordinance that governs the transport of refuse that does not occur through the city’s streets.

“Therefore, it may be possible for a second firm, other than Recology, to transport refuse after it has been collected by Recology, if that second firm’s transfer station was located either outside the city limits or was located near marine or rail facilities, such that refuse from the transfer station to the city’s designated landfill could avoid being transported through the streets of the city and county of San Francisco,” the BLA states.

“These are nuanced issues and they’ve evolved,” Newman observed. “All we are doing is trying to help the board try and decide what to do on this matter. We are saying that the current approach is a policy matter for the board, and recommending that the board submit a proposal to the voters to amend the refuse collection and disposal ordinance.”

The BLA report comes 15 months after the city tentatively awarded the new landfill disposal agreement to Recology to deposit up to 5 million tons of waste collected in San Francisco in Recology’s landfill in Yuba County for 10 years. The award was based on score sheets from a three-member evaluation panel composed of City Administrator (now Mayor) Ed Lee, DoE Deputy Director David Assmann, and Oakland environmental services director Susan Katchee.

The trio scored competing proposals from Recology and Waste Management, and awarded Recology 254, and WM 240, out of a possible 300 points. Lee’s scores in favor of Recology were disproportionately higher than other panelists, and the BLA notes that the largest differences in the scoring occurred around cost.

The BLA concluded that the city’s proposed agreement with Recology was subject to the city’s normal competitive process, “because the landfill disposal agreement is the sole portion of the refuse collection, transportation and disposal process which is subject to the City’s normal competitive bidding process.” And it found that because the transfer and collection of the city’s refuse has never been subject to the city’s normal bidding process, approval of the proposed resolution is a policy decision for the board.

But while DoE’s Assmann has said that California cities must maintain a plan for 15 years of landfill disposal capacity, the BLA notes that such plans can include executed agreements and anticipated agreements. And WM officials confirm that Altamont has capacity for 30 to 40 years. This means the board need not rush its disposal decision.

The BLA report comes against a backdrop of intense lobbying around Recology’s proposal. Records show that in 2010, Alex Clemens of Barbary Coast Consulting recorded $82,500 from Recology, and Chris Gruwell of Platinum Advisors recorded $70,000 from Waste Management to lobby around the city’s landfill disposal contract.

And now both firms continue to press their case in face of the BLA report.

“Folks are trying to cloud the issue,” Recology’s consultant Adam Alberti, who works for Sam Singer Associates, said. He claims the BLA report concludes that Recology’s proposed contract is the lowest cost to rate payers, saving an estimated $130 million over 10 years, that Recology’s green rail option is the environmentally superior approach, and that the city’s contract procurement process was open, thorough, and fair. “In short, the process works—and it works well,” Alberti said. “The rate setting process is an important subject, and one the board should review, but the one before the board now is a fully vetted contract.”

Alberti claimed that contrary to the conclusions of the BLA, which found commercial collection rates are significantly higher in San Francisco than Oakland, Recology’s rates are cheaper than Oakland—once you factor in Recology’s recycling discounts.

Waste Management’s David Tucker said the BLA report “raises lots of good questions.”

“We have said from day one that transportation was a component of the request for proposals [for the landfill disposal contract] that no other company other than Recology had an option to bid on,” Tucker said. “Had we been able to bid on the transportation component, our costs would have been lower.”

Tucker believes that no matter who wins the landfill contract, the BLA report points to a lack of transparency and openness under the city’s existing refuse ordinance.

“Up until this time, no one has been able to understand the process,” Tucker said. “If the Budget and Legislative Analyst has shown that there are some inconsistencies in the statements made by the Department of the Environment, if the process has slight flaws, then the whole process from the request for proposals to the pricing needs to be revised. And time is on the City’s side. There is no need to rush into a decision. Yes, our contract with the city is ending, but our capacity at the Altamont clearly goes into 2030 and 2040. So, this is an opportunity to toss out [Recology’s] proposal and start again.”

Asked if Recology is planning to rail haul waste to Nevada, once its Ostrom Road Yuba County landfill, Alberti said that the city’s current procurement process prohibits that.

“Will that be around next time? I don’t know,” he said. “Recology’s first goal is reducing waste, and managing it responsibly. We believe rail haul is an integral part of that.”

And he insisted BLA’s report should not be connected to Recology’s disposal contract.

“Recology believes that the system is working very well, as evidenced by the fact that it’s yielded the best diversion rates, lower rates than average, and has an open and thorough rate-setting process set by an independent body,” he said. ” We feel the recommendations are separate from the matter-at-hand. But if the board so chooses to have this debate, we’re anxious and happy to be part of that discussion.”

David Gavrich, CEO of Waste Solutions Group, which transports waste by rail and barge from San Francisco, praised the BLA report for “finally peeling back the layers of the onion” on the city’s entire waste system. Gavrich notes that in June 2009, he and Port Director Monique Moyer advised DoE of an option on a piece of long-vacant port property that offers direct rail and barge transportation of waste and could result in tremendous long-term savings to ratepayers.

“But we never got a reply to our letter,” Gavrich said. “Instead, DoE pushed forward with Recology’s trucking of waste to the East Bay, the transloading of waste from truck to railcar in the East Bay, and the railing of waste east to Yuba County.”

Sup. Ross Mirkarimi, which sits on the Board’s Budget and Finance Committee, is concerned that the city is considering enlarging Recology’s monopoly, without calling into question the reform of the 1932 charter.

“I don’t think these two questions should be disconnected in the way they are in the proposal to award Recology the landfill disposal contract,” Mirkarimi said. “The city and the DOE are very defensive about this and have a well laid-out defense to show that they followed the letter of the law in awarding this contract. But that leads to a secondary set of concerns: namely are we getting the best bang for our bucks, and is there something less than competitive about the current process.”

Mirkarimi admits that Recology has been committed to many of the city’s environmental policy advances. “But that’s aside from the larger question of what this mean in terms of institutionalizing further the expansion of a monopoly,” he said. “Our utilities are governed by monopolies like PG&E. So, should we be going in the same direction as 1932, or thinking if we want to diversify our utility portfolio?”

Dirty business

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rebeccab@sfbg.com

The owner of a certified minority-owned business in San Francisco is suing the city, charging that his telecommunications company went belly up after city officials falsely accused him of participating in a fraudulent kickback scheme within the city’s Department of Building Inspection (DBI).

The case and depositions of high-ranking officials offer a rare window into the inner workings of city government at a time when corruption was rife within DBI and regulations governing city contracting were considerably less strict. They also provide a glimpse at how city business was sometimes conducted under the administration of Mayor Willie Brown, a powerful figure who has resurfaced recently in San Francisco politics.

In addition, the case alleges inappropriate behavior by current Mayor Ed Lee when he was the city’s purchasing director. One of the depositions includes allegations that Lee, at Brown’s direction, approved a city contractor who was utterly unqualified and was later accused of being part of a criminal scam.

The plaintiff in the lawsuit — James Brady, CEO of Cobra Solutions — closed up shop years ago and moved to Sacramento with his wife and business partner, Debra. But he’s been locked in an ongoing legal battle against powerful forces in City Hall since 2003, when he claims the city stopped issuing payments to his company, terminated its contract, and declined to award it a new contract on suspicions of bribery.

“They want to make us look like we’re Bonnie and Clyde,” Brady told the Guardian. “We’ve never done a thing.”

Nancy Fineman, an attorney with the firm Cotchett, Pitre & McCarthy, which is representing the city in the case, said the corruption allegations against Cobra still stand and she emphasized, “The city attorney was not involved in doing anything wrong.”

In a complaint filed Jan. 7, attorney G. Whitney Leigh — law partner of former Board of Supervisors President Matt Gonzalez — alleges that a host of city officials are responsible for precipitating Brady’s financial ruin.

According to Leigh’s version of events, Cobra was dragged into an overzealous campaign to hold someone accountable after a contractor the city alleged was corrupt vanished, leaving a number of subcontractors unpaid and the city “with egg on its face.”

Leigh subpoenaed Ed Harrington, former city controller and current head of the San Francisco Public Utilities Commission; Deputy City Controller Monique Zmuda; former officials from the Office of Contract Administration, and others to testify out of court during discovery. Leigh describes the case as “a Shakespearean tragedy combined with a cartoon combined with a soap opera.”

For City Attorney Dennis Herrera, it might be more like a zombie flick. The city attorney is gaining momentum in his campaign for mayor and has taken an early lead in fundraising against his opponents. The Cobra Solutions saga might be one that he — and other top city officials — would rather forget.

 

CONFLICTS AND CRACKDOWNS

Appeals in the case have reached all the way to the California Supreme Court, which ruled that Herrera had a conflict of interest that should have disqualified his office from suing Cobra. Beginning in September 2000, before he was elected city attorney, Herrera provided legal representation to Cobra while working with a private firm called Kelly, Gill, Sherburne & Herrera.

Due to the disqualification, Herrera could not discuss specifics in the case. But he did offer us a general comment. “I’ve made it very clear that me and my office are going to have zero tolerance for corruption and individuals who would violate the public trust,” he said. “This case, I think, represents that philosophy.”

When Herrera was campaigning for city attorney in the November 2001 race, he ran on a platform of cracking down on fraud and corruption. The DBI case began as a triumphant delivery of that campaign promise.

In 2003, following a yearlong investigation by a Public Integrity Task Force that Herrera had convened, a corrupt DBI official named Marcus Armstrong got busted by the feds. He’d allegedly falsified the qualifications on his resume and set up shell companies to funnel money out of city coffers for his own personal gain. He pleaded guilty to corruption charges brought by the U.S. Attorney, and spent time in prison for cheating the city out of about $500,000.

Herrera brought a civil suit against Armstrong and a DBI contractor, Government Computer Sales, Inc. (GCSI), which allegedly partnered with Armstrong in a kickback scheme. Questions surrounded GCSI from the start. It only gained certification as a city contractor after being rejected multiple times by city staff as unqualified. Deborah Vincent-James, who directed the city’s Committee on Information Technology (COIT) at the time and has since died, testified in a 2008 deposition that GCSI was “fraudulent” and got the contract only because of ties to Mayor Brown.

Herrera hit a stumbling block when he amended the complaint to name Cobra Solutions and its management company, TeleCon Ltd., as another city contractor in on Armstrong’s kickback scheme. (Debra Brady was president of TeleCon, which predated Cobra. Although the Bradys insist the two entities were separate, Herrera named TeleCon in the suit as an alter ego of Cobra.)

Cobra struck back, claiming the City Attorney’s Office wasn’t entitled to file suit against the company because Herrera’s old firm had represented Brady. Herrera told us the whole thing came about “because of the 18 minutes that I billed to work for Cobra.”

Herrera’s office initially denied any conflict of interest. “Immediately upon discovery of Cobra’s role, the office screened Herrera off from further involvement in the investigation and all matters related to it in accordance with a stringent ethical screening policy Herrera established when he took office,” according to a statement issued by the City Attorney’s Office.

But the Supreme Court disagreed in a 2006 ruling. “The possibility that the City Attorney’s former client might be prosecuted for civil fraud by the City Attorney’s office may test public faith in the integrity of the judicial system,” the ruling stated, “raising the specter of perceptions that the former client will be treated more leniently because of its connections, or more harshly because of leaked confidences.”

 

COBRA’S CASH

The city’s lawsuit alleged that Cobra paid Armstrong about $240,000 in bribes in exchange for $2.4 million worth of business with DBI from April 1999 through 2000. The allegation was based on checks Cobra sent to Monarch Enterprises, which the city said was an Armstrong front. The investigation found that GCSI paid Armstrong about 10 percent of the contract amount in a similar fashion.

“Armstrong used these and all other funds received from Cobra for his personal benefit and gain,” the suit claimed. The complaint also charges, “Cobra … knew that Monarch enterprises was wholly owned and controlled by Armstrong, and that any payment made by Cobra was in fact a payment to Armstrong.”

But Cobra’s suit claims an FBI investigation into Cobra’s involvement found no wrongdoing. Additionally, “We turned all of our records over to the U.S. Attorney,” Leigh noted, and that didn’t lead to a criminal prosecution.

Brady calls the corruption allegation “a big lie,” and says his company’s name has been wrongfully sullied. He says Armstrong led him to believe Monarch Enterprises was an Internet company performing training, support, and computer security upgrades as a subcontractor. The bills came in, and Cobra believed it was responsible for paying for the service, Brady said. “We mailed the checks, and never thought about it.”

Before the trouble started, Cobra Solutions was in a growth phase, having gone from four employees to 35 in just a few years. James and Debra Brady moved from Colorado to San Francisco in the late 1980s with nothing. James Brady worked as a manager in several SROs, became a member of the Tenderloin Merchant’s Association and helped establish a credit union serving low-income residents.

The couple established TeleCon Ltd. and started out as city subcontractors providing voicemail services. At first, they had very limited resources. “Prior to being able to afford an office, Debra frequently used the telephones in the women’s lounge at Nordstrom to conduct business,” according to her bio.

Cobra was established after Vincent-James urged the Bradys to submit a bid for an upcoming contract. The city had opened up a Request for Proposals (RFP) for vendors who wanted to be admitted to the Computer Store, an entity created to speed up municipal orders for technical services.

Before then, it could take six months for the city to purchase so much as a desktop computer. A Human Rights Commission vetting process, designed to ensure that city contractors adhered to environmental and social justice criteria, caused long delays. Then-City Purchaser Ed Lee created the Computer Store to solve this logistical challenge. Vendors who applied for membership were vetted in the RFP (minority-owned businesses were given preference), admitted as certified contractors, and granted preference by city departments in need of IT services.

Cobra’s first departmental contract through the Computer Store was a $1.3 million agreement to provide technical services for DBI, working with Armstrong. Things got off to a rough start.

“We could never find the guy, he would never be at work, and when we did see him, he was complaining,” Brady recounted. According to Cobra’s complaint, “it ran into a series of disputes with DBI and Armstrong over the scope of work and particular payment issues,” and Cobra was eventually awarded a settlement reflecting services it provided after Armstrong changed the scope of the work.

Brady says he sought city help in dealing with Armstrong. According to Cobra’s complaint, he appealed for assistance to COIT, which oversaw the Computer Store. Cobra’s relationship with Armstrong soon soured, and the DBI deal dissolved.

According to the description of Vincent-James, “The relationship between James Brady … and Marcus got worse … Marcus got another company involved because James Brady would not do what Marcus wanted to do.”

The other company was GCSI.

 

NEW PHASE

Things got better for the Bradys before they got worse. Cobra became one of the city’s largest technology services providers, netting $14.5 million in contracts with various city agencies by 2003. They relocated to a nicer, more spacious office in the Financial District.

A partnership with IBM granted them access to higher credit limits than ever. The couple had a home custom-built in El Sobrante. When GCSI vanished without a trace, Vincent-James called on Cobra to hire some of the GCSI subcontractors who had gotten burned in the process, according to a deposition from former city purchaser Judith Blackwell.

By 2003, the Public Integrity Task Force’s DBI investigation was in full swing, but Brady didn’t know it. He says he started experiencing problems getting paid, yet couldn’t get an explanation from city agencies.

According to Cobra’s complaint, “The city intentionally frustrated payments to Cobra and TeleCon because investigators hastily and incorrectly concluded that the companies had conspired with Armstrong in a GCSI-type scheme to defraud the city.”

Fineman, the city’s attorney, said she strongly disagrees with “the idea that we just stopped and left them in the lurch,” emphasizing that there had been a whole separate legal proceeding arising out of the fact that “Cobra was not paying its subcontractors,” in violation of its contract.

The city defended its decision to delay Cobra’s payments by pointing to the GCSI scandal, which had left city agencies high and dry. “By the time the City discovered GCSI’s fraud and stopped making payments to GCSI, GCSI had already received millions of dollars in city payments that were not then passed on to the subcontractors,” a letter from the City Attorney’s Office to Brady’s attorneys explained. “Once the city started investigating the payments to GCSI that Marcus Armstrong authorized, GCSI’s assets, officers and staff disappeared. … The city has an obligation to its taxpayers to prevent the GCSI scenario from unfolding with regard to Cobra / TeleCon.”

Brady insists that because Cobra couldn’t get paid, it couldn’t pay its subcontractors, or its creditors, either — and the financial holdup triggered a cascade of losses. “I’ve got IBM, Booz Allen Hamilton, and American Express breathing down on me like a dragon,” he said. “Everybody wants to get paid. We owed folks after we couldn’t collect our receivables.”

The bills were piling up. “We were sinking fast,” said Debra Brady, “so we sold our house in El Sobrante.”

Brady said he was stunned to learn that Cobra had been named in Herrera’s suit.

“I have 37 employees, and I had to go in and tell them. I was all choked up and the phone was ringing, and it was my attorney on the line telling me that the FBI was coming. I could not believe that after everything we had achieved in the last three years, my former attorney was filing a lawsuit against me.”

 

CLEARING THEIR NAMES

After filing the complaint against Cobra, the City Attorney’s Office called on the company to submit to an audit — but Cobra refused on the basis that Herrera’s firm had represented it in the past. “The City Attorney’s assumption of the role of auditor seems calculated to exacerbate and expand the existing conflict of interest,” Cobra attorney Ethan Balogh wrote in an April 2003 letter. “This problem could easily be solved by allowing an agency other than the City Attorney to conduct the audit.”

In a lengthy back-and-forth, Herrera’s office responded: “You have never explained why your client, having been caught sending over $240,000 in cash to a San Francisco IT manager who authorized over $2.4 million in payments to Cobra/TeleCon during the period of time which he received those payments, has elected not to immediately … open its books and records to the city. Instead … you have raised a host of constantly-shifting objections and arguments as to why the city’s demand was inappropriate.”

Cobra’s lawsuit charges that the City Attorney’s Office never informed the Controller’s Office that Cobra would have allowed an audit by another party. At the same time, it charges, city attorneys weren’t allowing Cobra to communicate with the controller directly, due to the legal dispute.

“The question of who would do the audit and whether or not the City Attorney was doing the audit was not something that I was aware of or certainly had not agreed to,” Deputy City Controller Monique Zmuda said during her deposition.

Meanwhile, Cobra had received the highest Human Rights Commission score of any bidder for a renewal on the Computer Store contract, an HRC document shows. Brady received a letter stating that his company would be awarded a new Computer Store contract — but shortly after, he got a second letter reversing that award.

Judith Blackwell, who oversaw city purchasing under Brown’s administration, explained why during her deposition with Leigh. After Cobra’s bid evaluation, Blackwell testified, her office moved to award the contract — but the controller intervened, saying Cobra shouldn’t be awarded a new contract because of the Armstrong scandal. Blackwell wasn’t willing to throw Cobra out, however.

“I learned from watching politics that I cannot afford to bend the rules,” Blackwell testified. “If I step outside the precise boundaries in any way, or if any African American administrator does, they are probably not going to be interpreted in the same way as if anyone else did it. Based on the … procurement code, there is no way that I could, as the purchasing director, just throw them out.”

Blackwell testified that Zmuda requested that she sign paperwork denying Cobra the contract, and Blackwell received a warning when she refused. “She told me that I needed to remember that when [Mayor Brown] was gone that they, the Controller’s Office, and [Chief of Staff Steve Kawa] — I knew that is what she was implying — were in charge,” Blackwell said. Once Mayor Gavin Newsom replaced Brown, Blackwell was let go. She now lives in New York City.

Blackwell testified that losing her job came as a surprise, since she’d worked on Newsom’s campaign and expected to keep her position. “I had asked him something about why it happened and he said … he knew nothing about it and people were acting without, you know, basically not at his direction,” Blackwell testified. “I said, well, Mayor Newsom, you are in charge. And his response was, oh, I wish that were so.” 

 


ED LEE APPROVED UNQUALIFIED CONTRACTOR ACCUSED OF CORRUPTION

GCSI — a company accused of defrauding the city after improperly being given a city contract by Ed Lee, allegedly at the urging of then-Mayor Willie Brown — is long gone.

“I don’t think they’re around,” Nancy Fineman, an attorney representing the city, told the Guardian. “We’ve just been focused on Cobra and TeleCon.”

The story of how GCSI came to be a city contractor may be the most fascinating part of this case, one that could have repercussions today, even though it happened in the late-1990s.

Like Cobra Solutions, GCSI was a contractor with the city’s Computer Store — gaining admission after being repeatedly rejected by city staff, according to a 2008 deposition with former COIT director Deborah Vincent-James, who has died.

Vincent-James testified that GCSI didn’t meet the minimum qualifications and recounted how, during an interview with city officials about the bid, a member of the City Attorney’s Office noticed a wire peeking out from the suit of a GCSI representative who had been surreptitiously taping the meeting.

“San Francisco was not aware of GCSI’s wrongful conduct, financial problems, or legal difficulties at the time it hired GCSI to work on the DBI projects,” a city lawsuit claimed. Nor had the city realized that, “GCSI’s president and owner had been arrested and imprisoned by a federal judge for contempt of court and for disbursing funds in an effort to avoid …efforts to collect its loan.”

GCSI principal Robert Fowler resided in both Washington, D.C., and California, was believed to be a citizen of Sweden, and was also the director and owner of a bank located on the Caribbean island of St. Vincent, according to Herrera’s complaint.

“From day one, I knew that they were not qualified,” Vincent-James’ deposition transcript reads. She went on to say that the official city process for evaluating contractors was “totally bypassed.” Nonetheless, “We had to admit them to the Computer Store.”

“Who told you, you had to admit them to the Computer Store?” attorney Whitney Leigh asked.

“The director of purchasing,” states Vincent-James’ deposition transcript. “Ed Lee.”

She went on to testify that Lee had been acting under the direction of Mayor Brown. According to her deposition, “[Lee] was directed by the Mayor’s Office and told to do an evaluation process. They evaluated them. They were put in the store.” She also testified, “Principals of GCSI hired an attorney who had been in the State Legislature with Mayor Brown and … GCSI had felt that because we were asking intrusive questions during the oral interview, such as ‘Why do you have that wire hanging out of your coat?’ … They felt that biased the committee toward … not hiring them.”

Neither Brown nor Mayor Lee’s office responded to requests for comment.

GCSI is still a codefendant in the complaint, but the principals of the defunct company seem to be off the hook. A 2008 story from the Anchorage Daily News noted that Fowler had emerged as the head of a natural gas company in Alaska. The Bradys, meanwhile, are getting ready for another court date in March. “We keep going to court,” Debra Brady said. “I’m kind of like, when is the end coming?”

Black history, local hire, living color

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City Hall kicked off its annual Black History month celebrations with a talk by Los Angeles philanthropist and former Xerox Corp. VP Bernard Kinsey about the importance of debunking myths about the absence of blacks in American history. And Mayor Ed Lee, who had just met with five dozen unemployed black construction workers from the Bayview, revealed how, when he was growing up in the projects in Seattle, his neighbors were black, and an African American named Darnell was one of the most loyal patrons of the restaurant that Lee’s father was trying to make succeed.


“And when my dad suddenly died of a heart attack, Darnell was the first person to offer my brother a job at his gas station,” Lee said. “So, this is not just about recognizing African American history, but recognizing what they did for us, and  making sure that no there are jobs and we protect the family structure. I know what it is to be helped by the African American culture.”


Lee’s recollections of Darnell came less than an hour after he met with Aboriginal Blackmen United, a group that represents unemployed construction workers in the Bayview, to discuss how its members can get hired at UCSF’s $1.5 billion hospital complex at Mission Bay and other local building sites.


At that meeting, ABU President James Richards thanked Lee for getting UC to clarify the details of its voluntary local hire plan at the Mission Bay hospitals.
But he warned that the fight is just starting. “We’ve got the unions to deal with,” Richards told Lee, referring to the reality that the unions also want their members to get work at the UCSF site.


Lee said he’d do his best to help.
“The African American community in San Francisco has not got its fair share,” he said. “I can’t say that everyone in the room is going to get a job, but I’ll open up doors and do my best.”


And then Lee confirmed that local hire is one of his top five priorities.
“My top priorities are the budget, pension reform, the America’s Cup, finding a good police chief and local hire,” he said. “I said that directly to every union leader yesterday. Some unions will be there, others will resist.”


ABU’s Richards said the need to have a G.E.D. to get into the city’s ob training programs is a barrier to employment for many in the Bayview.
“We have a lot of people, who are not able to get into CityBuild because they don’t take folks anymore who don’t have their G.E.D,” he said.


And he warned that the city’s black community is in crisis.
“I know there is a budget crisis, but this is a life crisis,” Richards said. “Young people are dying and it’s not even newsworthy any more.”


Lee suggested ABU work with the City to avoid the need to hold protests at construction sites in future,
“Let’s plan together, so you don’t have to go to all the sites,” Lee said. “I am for people getting their GED. But if someone has evidence that they are making an attempt to get their GED, we need to reward that with jobs. So that the GED is not a barrier, it’s a hope.”


And then Lee was off to attend his next round of meetings, which included the city’s Black History month event, where speakers noted that during Bernard Kinsey’s career with Xerox, he helped increase the hiring of blacks, Latinos and women,


Kinsey told the audience that he and Shirley Kinsey, his wife of 44 years, share a passion for African-American history and art. And that their world-famous Kinsey Collection, which contains art, books and manuscripts documenting African American triumphs and struggles from 1632 to the present, is currently on display at the National Museum of American History in Washington D.C, and a number of pieces are at the San Francisco African American Historical and Cultural Society. He noted that the posters of African Americans in the Civil War were reproductions of some of the art in those exhibits. 


Sup. Malia Cohen noted that about 200,000 African Americans participated in that war. Sup. Ross Mirkarimi, who represents the city’s Western Addition, where redevelopment triggered massive displacement of the black community in the 1960s, noted that eight members of the current Board of Supervisors, who selected Lee as the city’s first Chinese American mayor, are people of color.


“This is true representation,” Mirkarimi said, noting that the fact that the city’s African American population continues to drop (reportedly down from 6 percent to 3.9 percent, according to the 2010 Census) to “is a reminder that even the most forward-thinking cities have a lot of work to do.”


And Kinsey urged African Americans to start describing their ancestors as “enslaved.”


‘It will change how you look at your ancestors,” he said, “You don’t have a clue about what they sacrificed to get you to where you are today. We don’t tell you the ‘ain’t-it-awful’ story about slavery. We tell you the story of how we overcame.”


“You need three things for a successful life,” Kinsey added “Something to do. Someone to love. And something to look forward to.”


Kinsey said he and his wife have espoused two life principles, ‘To whom much is given much is required” and live “A life of no regrets.” And then he told a story about an eagle who was raised by a chicken.


The eagle ended up ashamed of his feathers, because the chickens never told him he was an eagle because they were afraid he’d end up ruling the barnyard.“He even grew up ashamed of his daughters,” Kinsey said.


Eventually, the eagle met another eagle, who told him the truth. “You ain’t no chicken,” the other eagle said.


“And this is the message,” Kinsey said. “Don’t think chicken thoughts, or dream chicken dreams. Think like an eagle.”


He warned the audience to be careful of buying into myths that would have them believe that African Americans played no role in building the U.S.
“There are stories that made America and stories that America made up,” Kinsey said. “And too often, the myth becomes the choice.”


And then he concluded by expounding on “the myth of absence.”
‘”African Americans are not seen, not because of their absence, but because of the presence of a myth that prepares and requires their absence,” Kinsey said. “And the manipulation of the myth changes the color of the past. It’s no accident that the dominate images from the past are white. And many of us have swallowed the pill.”


 


 

Why aren’t Brown and Pak registered lobbyists?

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Powerful business interests constantly put pressure on City Hall to do their bidding rather than act in the public interest. Theoretically, they’re supposed to report who they’re lobbying, on whose behalf, and how much they’re being paid, but that doesn’t always happen. Instead, some of this city’s most powerful players operate with little public scrutiny.

Consider former Mayor Willie Brown – a corporate attorney and Chronicle columnist – and his close ally, Chinatown Chamber of Commerce head Rose Pak. Much was made, from the New York Times to local blogs, of how they engineered the selection of Ed Lee as interim mayor. More recently, there were questions about whether they influenced the narrow and controversial appointment of Richard Johns to the Historic Preservation Commission.

But neither Brown nor Pak is on the long list of lobbyists registered with the city. Neither is Rob Black, who lobbies City Hall on behalf of the San Francisco Chamber of Commerce and is a regular fixture at Board of Supervisors meetings. Why? I don’t know because none of the three would return my calls asking that question [see UPDATE below for Black’s comments].

So I asked John St. Croix, who runs the Ethics Commission, the regulatory agency that oversees lobbying and other activities by which wealth influences government. But he didn’t know the answer either. “If someone is paid specifically to lobby government, they should register,” St. Croix told us.

But his underfunded agency is mostly complaint-driven in its enforcement actions, and even though I complained, he didn’t seem inclined to act against these powerful local players. Hell, his agency hasn’t even done anything about the blatantly illegal collusion between a Brown-funded independent expenditure and the campaign of Jane Kim, despite reports in both the Guardian and the Bay Citizen (the local arm of the New York Times) back in October.

And so it goes in this supposedly progressive city.

UPDATE ON 2/4: Black just got back to me after being out sick with the flu. He said the Chamber used to be considered a “registered lobby entity” that was required to report all contacts with public officials and the issue involved. But the Board of Supervisors changed that law last year, requiring lobbyist registration only from individuals who are paid at least $3,000 per quarter for lobbying. And the definition of lobbying doesn’t include attending or speaking at public hearings or writing letters. So while the SF Chamber’s Black, Steve Falk, and Jim Lazarus all lobby city officials, Black said, none of them have exceeded that threshold. “If we hit the monetary threshold, we’ll start filing individually,” he said.

Division of labor

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sarah@sfbg.com


In the wake of a three-day protest by unemployed workers outside UCSF’s Mission Bay hospital construction site — and under pressure from city leaders — UC officials have announced voluntary local hiring targets at the $1.5 billion complex.


Targets start at hiring 20 percent of the project’s workers in San Francisco during 2011 and increase that by 5 percent each year until the hospital complex is completed, UCSF news director Amy Pyle told us. But she denies that UC was pressured into its decision. UC is a state agency that is exempt from local rules when it builds facilities for UCSF and other campuses.


“Our voluntary goals are not a result of their protest,” Pyle insisted. “We have been aware of the local hire concerns since before they were protesting.”


The protests have focused on the need to hire workers for southeast San Francisco, where unemployment rates are the highest in the city, particularly among the city’s African American population.


“Of course we are looking to be good neighbors and hire people from an area we know has been hard hit,” Pyle said, clarifying that under the University of California’s hiring program, “local residents mean people who live in San Francisco generally.”


Mission Bay Hospitals Projects executive director Cindy Lima said uproar at the site stemmed in part from perceptions that lots of work is available now, but she said that isn’t true.


“Job opportunities should ramp up in May, but right now, they are installing structural piles,” Lima said. “So if there is an opportunity for a carpenter or a laborer to get decks built, we call the union.” UC’s voluntary local hire announcement came after Mayor Ed Lee urged UC officials to formalize a community hiring plan for Mission Bay, and Aboriginal Blackmen United (ABU) president James Richards agreed to call off his group’s protest outside UC’s Mission Bay hospital complex, at least for now.


ABU member Fred Green, an unemployed construction worker who has lived in the Bayview for 50 years and has five children, said the protesters tried to remain peaceful. “But an empty belly makes you do strange things,” Green said. “If there’s enough work for everybody, why should we be stuck at home while someone comes into my community and takes food out of my kids’ mouths?”


Troy Moor, who has lived in the Bayview for 47 years and has two kids, speculated that if ABU blocked both gates to the project, it would cost UC thousands of dollars a day in lost productivity. “Here at the front gates, we are visible. But we figure that if by next week, nothing is happening, we’ll start making them lose money,” he said.


Michelle Carrington is a 58-year-old flagger and operating engineer from the Bayview who has been unemployed for 10 years. She said Dwayne Jones, who worked in the Mayor’s Office and helped her graduate from Young Community Developers, was “working to try and get us jobs.”


Jones, who is now with Platinum Advisors as a consultant to DPR Construction, UC’s prime contractor at its Mission Bay site, put in an appearance on day three of ABU’s protest. But he said his work with DPR had nothing to do with the ABU protest.


“UC is very committed to maximizing local hire where we can,” Lima told the Guardian. “It’s unfortunate there is a protest because it gives the sense we haven’t been working with the community when in fact we have been working with the Mayor’s Office, CityBuild, and every stakeholder interested in this project, including ABU.”


Richards said ABU mounted its protest to challenge UC’s claims that it has hired more local residents at the site. They were also angry over a flyer that encouraged residents interested in working at the site to sign up with the San Francisco Workforce Collaborative, in partnership with Rev. Arelious Walker’s BayView Hope Community Development Corporation, feeling as if the UC was trying to divide their community. Walker did not return our calls for comment.


“We were with Walker when he was fighting the Nation of Islam’s attempt to stop development at the shipyard, so it hurts so bad to see this,” Richards said. “Never again will we stand by and let people come into the southeast community and take our jobs. We’re going to fight until the end. If the community doesn’t work, no one works.”


But even as UC announced its voluntary Mission Bay goals, community advocates pressed UCSF to set higher targets, citing the city’s failure to attain 50 percent local hire goals under San Francisco’s decade-long policy of seeking to hit that goal.


Joshua Arce of the Brightline Defense Project said he is glad Lee expressed support for Sup. John Avalos’ local hire legislation, “but we are waiting to see if he implements the law as written or a watered-down version.”


Then-Mayor Gavin Newsom allowed Avalos’ legislation to become law without signing it, bowing to the veto-proof 8-3 majority that approved it. But in a 12/23/10 letter explaining his position, Newsom recommended modifications to accommodate the concerns of the building trades, whose members come from across the Bay Area.


“I know the passage of this policy has created high expectations among some residents of San Francisco,” Newsom wrote. “The city owes it to them to implement this policy in a way that will result in a successful program that is fiscally responsible and reflects the best thinking of the many stakeholders invested in San Francisco.”


But with Newsom moving to Sacramento, California Assembly member Tom Ammiano and Sens. Mark Leno and Leland Yee are urging legislators to support San Francisco’s newly approved local hire law as approved.


In a Jan. 25 letter that Leno and Yee signed, Ammiano encouraged Bay Area officials to work with the city to explore mutually beneficial “reciprocity agreements” in which local cities would support one another’s programs “aimed at providing disadvantaged job seekers opportunities in the construction sector.”


“In neighborhoods like the Bayview, the Mission, and the Western Addition, the promise of jobs — particularly living wage construction jobs — has been an unfulfilled promise for generations,” Ammiano wrote.


But in a Jan. 28 press release, UC officials clarified that “as one of 10 campuses of a statewide constitutional corporation and public trust,” UCSF is not subject to Avalos’ mandatory requirement and is prohibited from adopting mandatory requirements based upon residency.


Instead, UC promised to do more community outreach and try to carve out financial incentives to encourage contractors to hit UC’s targets at Mission Bay.


Lima said the hospital complex is a historic opportunity to put as many San Franciscans to work as possible. “We have set an ambitious hiring target but we recognize that the economic activity generated by the project can significantly benefit our neighbors and local residents,” she said


After his Jan. 27 meeting with UC, Richards told ABU members that “when DPR needs someone for a job, they’re gonna call Dwayne Jones, and then Dwayne will let us know. There are hundreds of jobs, but I don’t know if they are in every trade. So, I feel good. But not so good that I can say that 10 carpenters will be hired tomorrow. There’s not enough need for that right now. But the work that’s there, when they call, you’re going to know it.”


Lima said UC’s meeting with Richards was “positive”.


“We clarified some misunderstandings and made some progress,” Lima said, noting that work at the site will become increasingly available starting in May. “Our goal is still to create jobs for San Francisco residents and make this project happen. We are continuing to try and match people who need to go to work with available job opportunities. The bottom line is that there are a lot of people in this city who are out of work and a lot of groups with different intentions in mind and we get tangled in that process.”


Lima vowed to work closely with DPR Construction and major subcontractors to ensure qualified local residents — including those from neighborhoods closest to the site — can access the construction jobs. And she promised that results will be reported regularly and the size of the workforce will increase steadily, peaking with 1,000 workers in 2012.


“We are mindful that while these goals challenge us, they are also within reach,” Lima said, noting that UCSF has been engaged in creating job opportunities in the construction trades for San Franciscans since 1993. “Our success will depend on the participation and commitment of the broader community and the trade unions.”


UC’s move comes less than two weeks after Lee announced at the annual San Francisco Labor Council Martin Luther King Jr. Day breakfast that one of his top priorities is implementing Avalos’ mandatory local hire policy.


Lee’s comments suggest a different approach from Newsom’s, but it’s still not clear whether Lee intends to follow the “critical steps” that Newsom felt the city should take “to ensure the responsible and successful implementation of Avalos’ legislation.”


Arce said he was happy to see Lee address the issue at the MLK Day event. “Lee said that if we are using local dollars to create local jobs, those jobs should go to local workers,” Arce recalled, noting that the following week Lee started to coordinate with the Office of Economic and Workforce Development and CityBuild to engage community stakeholders and lay out a road map to implement Avalos’ legislation.


“They set a deadline of March 25 as the target date by which the language of Avalos’ mandatory legislation must be included in all public bids and contracts,” Arce said. “And it’s our understanding that Mayor Lee called UC Chancellor Susan Desmond-Hellmann directly on the morning of Jan. 27 [before ABU’s Richards met with UC officials] to ask that UCSF formalize a community hiring plan for Mission Bay as soon as possible.”


Avalos said he was “very encouraged” by Lee’s remarks. “To say that at the Martin Luther King Labor Breakfast was a big deal,” Avalos said, noting that the building trades were also in the room. “I feel Ed Lee wants to implement the legislation how it is written. He needs help doing that. He needs to create a process to make it happen, and I believe the folks who helped draft the legislation will be ready to do that. That’s not to say that this couldn’t go wrong, but I feel pretty confident that he will implement as strong a local hire model as possible.”

Danny Glover, DCCC stand up for HANC

The Haight Ashbury Neighborhood Council (HANC) Recycling Center has gained some powerful allies in its ongoing fight against eviction.

A YouTube video posted over the weekend shows actor Danny Glover, a resident of the Haight, sitting in his car at the recycling center. If it were shut down, “I would be dismayed,” Glover tells a staff member. He also says, “It would be a tragedy. It would be a great loss to this city.” (Scroll down to watch.)

On Jan. 26, the Democratic County Central Committee (DCCC) voted in favor of a resolution calling for the HANC recycling center to stay at its location behind the Kezar Stadium in Golden Gate Park. The statement noted that “San Francisco is notoriously underserved by recycling centers,” adding that “people want to receive their California Redemption Value deposit, especially in this depressed economy, which can only be done at recycling centers.”
 
In recent weeks, Sup. Eric Mar told the Guardian he was strongly supportive of the recycling center’s continued operation in the park. He added that he planned to encourage Mayor Ed Lee to overturn the eviction.

The San Francisco Recreation & Park Commission voted in December 2010 to evict the recycling center from a paved lot in Golden Gate Park, where it has been operating for more than three decades. Since the center was originally on a quarterly lease, it was given 90 days notice — but HANC’s lawyer contends that it could legally occupy the property till June.

The eviction, supported by former Mayor Gavin Newsom and a commission composed of his appointees, was widely viewed by recycling center supporters as a form of political payback. HANC, a progressive organization that was at odds with the Newsom administration on a variety of issues, was particularly outspoken against the sit/lie ordinance, which Newsom placed on the ballot.

A neighborhood group, the Inner Sunset Park Neighbors, also supported the ouster of HANC, citing quality-of-life issues such as aggressive panhandling and public safety concerns that the group believes to be linked to recycling center patrons. Rec & Park plans to use the lot for a community garden, at a cost of $250,000.

http://www.youtube.com/watch?v=l09tUCChOiA

Don’t nobody give a damn: day 3

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Unemployed construction workers protested outside UC Mission Bay’s Hospital building for the third day straight—but by early afternoon seemed to have got some clarification from UC officials over upcoming job opportunties at the site.


At issue is the tension between UCSF’s stated desire to be a good neighbor and put local residents to work, and the reality that while unemployment remains high throughout the construction industry, the communities immediately neighboring UC’s Mission Bay campus have been hard hit.


.“I want them to set up a system where we have a referral mechanism that includes CityBuild, and for UC to discontinue using DPR’s subcontractor Cambridge and other consultants,” James Richards, President of Aboriginal Blackmen United (ABU), said shortly before he met with UC officials. “Because if you don’t have a community-based organization helping UC make good on its commitment to be a good neighbor, then you are going to see stuff like UC’s voluntary local hire system. The idea that you can have a voluntary system without someone like ABU, which organizes folks from the community, is why this system is going to fail. And it’s why we only see token folks on the site. Because if you don’t work with the community, you won’t get the community to work. Really it’s an easy proposition: you have unemployed union workers at the gate. So put them to work.”

Just then Dwayne Jones, who worked in the Mayor’s Office when Gavin Newsom occupied Room 200, stopped by to chat with Richards and the ABU crew. 
Jones, who is now with Platinum Advisors, told the Guardian that he works as consultant for DPR Construction, UC’s prime contractor at Mission Bay. Fortune recently ranked DPR number 22 in its list of Top 100 companies to work for in the U. S.


Jones noted that his work with DPR had nothing to do with ABU’s local hire protest. “I’m only involved because I have worked with all these folks in the past and know all the players,” Jones said. “So, I’m helping these folks. At the end of the day, DPR’s concerns and mine are the same: I want to facilitate a process that maximizes opportunities for local folks.”

“These are all great people,” Jones continued. “I’ve worked for them for 15 years.”

Asked what the city can do to get the state-owned UC to hire more folks from economically disadvantaged communities on a project that isn’t financed by city funds, Jones said, “I agree that there is little leverage that the city has, given the constraints of the contract, so people need to be creative.”

Jones said he was not aware that Dr.Arelious Walker and the San Francisco Workforce Collaborative has issued a flier stating that they were gathering lists of names to be submitted to UC for jobs, amove that angered ABU members since they have been protesting for jobs at the site for over a year


“I was not aware of this group but there are a multitude of organizations trying to do good work,” Jones said. “And frankly this [multitude] was one of the things that led to the end of the lead agency methodology, because it caused so much division in the community. I hope we build a really strong coalition in the community that leverages its strengths.”

Jones gave UCSF credit for trying to move the local hire process forward
“I’m glad that they accepted the initial recommendation to do whatever they can to mirror the city’s local hire legislation,” he said. “Because although it’s voluntary, if it’s part of your culture and you embrace it, it’ll get done. And these are the people who have been out here for a year.”

Last December, the Board approved local hire legislation for city-funded projects. Mayor Gavin Newsom did not sign the legislation, which met stiff opposition from the building trades, and it’s fallen to Mayor Ed Lee to mplement this new law, which does not apply to state agencies,but had led to a parallel dialogue with UC.


“Much like any policy, implementation is the biggest challenge,” Jones observed. And until we do some inventory of which organizations, contractors, individuals and groups can do each piece of the work, it’s going to be a struggle. What I’m praying for is that local hire legislation allows us to get a bigger table. What I’m interested in doing is creating a pipeline of qualified workers, so that whenever something like this happens, I don’t have to hear the excuse that folks aren’t ready to work.”

Then Richards took off for a meeting with UC Vice Chancellor Barbara French that lasted two hours during which time rumors started circulated that Mayor Ed Lee had called French to try and help move the conversation along, as ABU members continued their protest and shared stories with reporters of how they came to be standing on a picket line in Mission Bay.

One worker, who preferred to remain anonymous, said he was frustrated by UCSF’s plea for workers to remain patient because jobs are coming soon. “We’ve been out here for one and a half years, so since before they did their demolition, and they have been playing games with us,” he said. “ Folks with ABU were promised jobs. But then they didn’t get anything. That’s what UC does. They try to pacify you and tell you stories, then the money gets taken out of the community, and another year goes by. So, if anybody says, why aren’t you more patient, the answer is that the whole area has been built with only a handful of people from our community. Especially now, when no one has jobs, and everybody wants to work here. We are not going into other communities and trying to steal their jobs. We just want to work here. But we could be protesting every day, until this whole stuff has been built. It’s a city within a city. Just look around you. We was patient. And all this stuff has been built and we got no jobs.”

Michelle Carrington, 58, a flagger and an operating engineer from the Bayview, said Dwayne Jones helped her graduate from Young Community Developers. “He got me in tears, he dropped me in the mud at 5 in the morning and made me do push ups, but I fought and kept on and graduated at the top of my class out of three women and 15 men,” she said. “But now we got people going behind the gate, folks who used to work for Dwayne Jones, like Dr. Arelious Walker, who are trying to say that they are the ones who have got the sign-up list for jobs here. But you ain’t been here marching, or down at City Hall fighting for local hire. And I saw Rodney Hampton Jr. on the number 54 bus, and I let him have it. I said, what’s this I heard about you and Walker? And he said he went to UCSF and tried to get a bid but was told ABU had it. So the only way to get in was for him and Marcellus Prentice to go to God’s house.  But Walker’s not out here. Meanwhile, we see folks coming from Hayward, Sacramento and Vallejo and working on this yard. Why is it such a hard decision to try and put us to work? It’s easy. Just take 5 or 10 of us, put us to work, and we will go away. Work smarter, not harder.

Laborer Sharon Brewer, who was born and raised in the Bayview and has been out of work for two years. She helped her granddaughter, Akira Armstrong, hold a protest sign and talked about losing her apartment because she lost her job.
“I had to move back in with my daughter because nobody lets you live for free,” she said. “I used to work for UCSF as a patient coordinator for physical therapy but I got laid off. Now I have to dummy down my resume to try and get a job making $8 an hour selling coffee and donuts .”

Jesse Holford said he had reached the fourth level of his apprenticeship as a Carpenter.
‘There are eight levels between an apprentice and a journeyman,” he said.

Jason Young and Alonzo McClanahan said they were unemployed laborers from  Bayview Hunters Point resident. Robert English, a carpenter journeyman from the Bayview, had been out of work 6 months. Tina Howards, a carpenter’s apprentice from the Bayview with four kids,  had been out of work for a year. And Keith Williams, a carpenter from the Bayview, had been out of work for nine months.


Fred Green, who has lived in the Bayview for 50 years and has five kids, said protesters were trying to remain as peaceful as possible.


“But an empty belly makes you do strange things,” Green said. “If there’s enough work for everybody, why should we be stuck at home while someone comes into my community and takes food out of my kids’ mouths. I got five kids and they all go hungry.”

Bayview resident Carlos Rodriguez has three kids and has been out of work for two years.
“They called me to work before Christmas but never hired me, “ he said.


Bayview resident Truenetta Webb has two kids and has been out of work for four months.
‘Some guys called me and took my information, but there’s been no work,” she said.

Troy Moor, who has lived in the Bayview for 47 years and has two kids, worked in January on Lennar’s shipyard development for 17 days.


“Two weeks ago, UC said they were going to hire four folks on ABU’s list, but they didn’t,” he said. “We don’t want it to get ugly out here. All we want to do is feed our families.”

Moor said he believes Mayor Ed Lee will ensure local hire is implemented on city-funded projects. “Ed don’t want no problem, we know him personally, we used to work for him when he was at DPW (the city’s Department of Public Works),” he said. “He’s a decent guy, as long as you keep the pressure on him.”

Moor speculated that if ABU blocked both gates to the UC Mission Bay hospital project, it would cost UC thousands of dollars.“Here at the front gates, we are visible, but we figure that if by next week, nothing is happening, we’ll start making them lose money,” he said.

Ed Albert, a retired painter and a Bayview resident for 57 years, said he was protesting for folks in his community.
“I grew up in the Bayview, I’m a servant of the Bayview,” he said. “I went from paperboy to contractor. I was a painter for Redevelopment and the San Francisco Housing Authority. But I don’t want a job. Who’d hire a 67-year-old guy with one eye? But I want to see my people get a job.”

James Amerson, a laborer with Local 261, said he worked on the Transbay Terminal in July, then got transferred to Pier 17.
“But when that was over, they didn’t bring me back to the Transbay, so I’ve been out of work since the end of December,” Amerson said. “They sent me to the Transbay as a flagger, and I rode by the other day, and saw they had an apprentice operator doing flagging.”


“When we are not working, we always come back to James [Richards]’s church at Double Rock,” he continued. “We meet at 9 a.m., Monday through Thursday. James is sick with diabetes. But he ain’t asking for anything. He’s here for the people, coming out here, buying food every day. We feed everybody. Yesterday he was feeding the police officers.”

Finally, Richards emerged from his meeting with UC officials. After he crossed 16th Street slowly, Richards was encouraged take a swig of orange juice from the back of ABU’s flatbed truck before giving folks an update.


“When DPR needs someone for a job, they’re gonna call Dwayne Jones, and then Dwayne will let us know,” Richards finally said. “There’s enough work for everybody. There’s hundreds of jobs, but I don’t know if they are in every trade. So, I feel good. But not so good that I can say that ten carpenters will be hired tomorrow. There’s not enough need for that, right now. But the work that’s there, when they call, you’re going to know it. Laborers, there are going to be no others going first. You guys are going first. So, I suppose next week, more laborers should be going, then more carpenters.”

Asked if ABU was going to continue its protest, Richards ‘said he thought folks needed to regroup.


“I think we got enough to not have to come out here tomorrow again. So, we’ll come back to church on Monday and let everyone know what happened. Then we’ll make a decision about what we are going to do. If the majority says, fuck this man, make ‘em hire 10 or 20 more folks, then that’s what we’ll do. But for now, we gotta regroup.”

Reached by phone, as ABU members prepared to pack up for the day, Cindy Lima, executive director of UC Mission Bay Hospitals Project, said she felt UC’s meeting with Richards was positive


“We clarified some misunderstandings and made some progress,” Lima said. “Our goal is still to create jobs for San Francisco residents and make this project happen. So, we are continuing to try and match people who need to go to work with available job opportunities. The bottom line is that there are a lot of people in this city who are out of work and a lot of groups with different intentions in mind and we get tangled in that process. So, maybe we need to have more dialogue about when jobs will become available. And we have made a commitment to talk more.”










Don’t nobody still give a damn?

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For the second day in a row, Aboriginal Blackmen United (ABU), a community organization that represents unemployed construction workers from Bayview Hunters Point, embarassed University of California officials by blocking the front gate of UC’s $1.7 billion Mission Bay hospital project.


ABU members claim UCSF is refusing to hire workers from local neighborhoods and they say they are prepared to go to jail if their demands aren’t met.

“At 6: 30 this morning, we were full of energy,” ABU President James Richards said on the first day of the protest. And ABU members recalled that they saw ” nothing but skunks”  when they arrived outside the construction site at 6 a.m.


“They’d locked up everything and guarded back fence, so we stopped everyone from coming in this front entrance, including management and cars,” Richards said, as he stood outside UC’s 16th Street and Fourth Street construction site, while ABU members chanted, “If we don’t work, nobody works.”


Richards said the police told employees to go around to the site’s back entrance, as they made calls, trying to figure out what was going on.

“We’ve been out here every day for almost a year and nothing has changed except the paperwork,” Richards continued. “We have qualified union workers standing outside the job site that are ready, willing, and able to work and if the community doesn’t work, no one works.”

But UC officials say they want the Mission Bay Hospitals project to be a model for the nation of how to put people to work, even though, as a state agency, they cannot mandate local hire requirements or give preference to any particular domicile.

“UC is very committed to maximizing local hire where we can,” Cindy Lima, executive director of the Mission Bay Hospitals project, said. “It’s unfortunate that there is a protest because it gives the sense that we haven’t been working with the community, when in fact we have been working with the Mayor’s Office, CityBuild and every stakeholder interested in this project, including ABU.”

Richards said ABU decided to mount their protest this week for two main reasons: to challenge UC’s claims that it has been hiring more local residents at the site, and to register anger over the distribution of a  flier that encouraged local residents interested in working at the UC site and other construction projects in town to sign up with a group called the San Francisco Workforce Collaborative.


The flier, which fueled suspicions that UC is trying to divide the city’s disadvantaged communities, named Dr. Arelious Walker as President of BayView Hope Community Development Corporation.


“We at the San Francisco Workforce Collaborative partnered with BayView Hope CDC are currently doing sign-ups in ALL trades to afford you the opportunity to work on these projects,” the flier stated.


Richards was particularly outraged that Walker was calling his group “the San Francisco Workforce Collaborative,” since this was the name UC used to describe its community outreach efforts last year.


“We guys were with Walker when he was fighting the Nation of Islam’s attempt to stop development at the shipyard, so it hurts so bad to see this,” he said, pointing to a copy of Walker’s flier, which listed Jan. 25 and Jan. 27 as sign-up dates at Walker’s Gilman Avenue building.

“All I know is that ABU is here for the long run and we’re prepared to go to jail,” Richards said. “Never again will we stand by and let people come into the southeast community and take our jobs. We’re going to fight until the end.”


“When Dwayne Jones was with the City, DPR [which is UC’s construction contractor] was trying to notify him about requirements for job hire, and Jones was supposed to notify ABU for job placements, but now we find out that they have brought in another consultant,” Richards said, noting that Jones has left the city and now works for Platinum Advisors. “And now all of a sudden, UC hires this company and is giving this list to DPR?” Richards continued, noting that UC has hired a consultant called Marinus Lamprecht to handle job submissions at its hospital site, but no one from ABU had been hired, despite the fact that Richards submitted five names to UC, months ago.


“We’ve been demonstrating at this site and marching down the street, and UC was telling us at that time, we’re gonna put some of your folks to work,” Richards said. ” All I know is that ABU is working diligently to try and get our people hired. We want to be the first organization, not the only organization to have people work here. After demonstrating and protesting for over a year, we feel that the people who brought UC to the table and supported the city’s new local hire legislation have the right to work first. But it always seems that the powers-that-be go outside our community to cause division amongst the community.”

“We’ve been here since 6 a.m. today and this is the community,” Richards continued. “No so-called community leaders have joined forces with us, including pastors and political leaders. And that’s why we say, don’t nobody give a damn about us, but us.”

Reached by phone, UCSF’s news director Amy Pyle clarified that in recent weeks UC has committed to voluntary hiring goals at the site. The goals start at 20 percent, and increase 5 percent each year until the completion of the project in 2014, Pyle said.

This means UCSF’s voluntary local hiring plan was put together shortly after the Board of Supervisors approved Sup. John Avalos’ mandatory local hire legislation for city-funded projects. Former Mayor Gavin Newsom refused to sign Avalos’ legislation, leaving Mayor Ed Lee to figure out how to implement Avalos’ legislation, which mandates 20 percent local hire this year, increasing 5 percent each year until mandatory 50 percent goals are reached. And UCSF officials stress that, as a state agency, UC can’t have quotas and isn’t subject to the city’s local hire mandates, since its hospital project is not city-funded. But they note that the university has set voluntary local hiring goals, held monthly meetings with stakeholders, and is currently working on carving out financial incentives to encourage contractors to achieve these voluntary goals.

“Our voluntary goals are not a result of their protest,” UCSF news director Pyle said. “We have been aware of the local hire concerns since before they were protesting. So, I don’t think people should expect there to be a quid pro quo.”

And Lima observed that UC has tried to maximize local hire on construction sites, since 1993. “It’s ranged from 7 to 24 percent, so the average has been about 12 percent,” she said, stressing that a lot has changed in recent years, regarding UCSF, local hire, and the overall economy.

“For a start, this project is six times larger than anything we’ve done,” Lima said. “There’s been a shift in capacity of community groups. The city has centralized its actions, concerning local hire efforts. And now it’s advancing its local hire goals, and then there’s the economy.”

Lima said that it’s because of this changed landscape that UCSF is ramping up its efforts to hire local residents.

“While we cannot mandate that our contractors hire locally, we are holding monthly meetings that are open to all community stakeholders,” she said. “We are doing extensive outreach to offer any stakeholders to submit names. We are keeping a list so as jobs become available. We are able to provide those names to unions for job call opportunities. And we have tried to carve out part of our payment to contractors to put it into an incentive program if they hit those goals.”

Lima said the final details of the incentive plan haven’t been worked out.
“But they are substantial,” she said.

She insisted that ABU did not succeed in completely shutting down UC Mission Bay Hospitals’ construction site in the last two days, and she claimed that if the goals of UCSF’s voluntary local hire program are reached, UC will double its historical local hire average, eventually.

Lima pointed to UC Mission Bay’s website where minutes of a Jan. 13 meeting between UCSF and representatives for the local workforce are posted.

Those minutes show that UCSF has agreed to work with its Mission Bay construction contractor DPR “to ensure that qualified San Francisco residents have access to jobs, Lima said, and that names can be submitted to consultant Marinus Lamprecht, using submission forms available here.

UCSF also intends to prepare trade-by-trade name call opportunities and has promised to report on actual local hiring progress at monthly community workforce meetings to be held the second Thursday of each month, she said.


UCSF’s news director Amy Pyle clarified that under UC’s voluntary local hire program,  “local residents mean people who live in San Francisco generally.”


“Of course we are looking to be good neighbors and hire people from an area we know has been hard hit,” Pyle said.

Meanwhile, Lima said UC has not entered into any contract with BayView Hope CDC and requested a copy of Walker’s flier to see if his group “overstepped.”
“For many years, UC did have a memorandum of understanding with the community and was working with a group called the San Francisco Workforce Collaborative,” Lima clarified. “The name has lasted, but the organization has changed. It was very successful historically, and there’s been an effort in the community to resurrect that group and make it stronger, but the landscape has changed, so we decided to open the doors to everybody.”

According to Lima, any interested party can now submit names to UC’s sign-up list.

“I carry that list around with me,” Lima said, promising folks will be hired in the order their names are received, if they match available opportunities.

“The contractors talk to the subcontractors who give them their best monthly estimates,” Lima said, noting that the subcontractors arrive with a core crew and then call the unions to fill their remaining needs.


Lima said part of the current uproar over local hire at UC Mission Bay’s hospital site stems from the misperception that there are lots of jobs available now.


“Job opportunities should ramp up in May, but right now, they are installing 1,052 structural piles,” she said. “So if there is an opportunity for a carpenter or a laborer to get decks built, we call the union.”

Lima added that folks are welcome to review data that UC’s compliance officer gathers.
‘It’s in our and the community’s best interest to put people to work,” she said.

But so far UCSF’s stance has continued to angered ABU members. They note that the university’s local hiring rates hovered at less than 10 percent until a series of ABU-led community protests in late 2010 forced UCSF and its contractor DPR  to request voluntary reporting of worker residency. 

And while UCSF claims that local employment is on the rise at the site, ABU questions the reliability of the university’s self-reported performance at the site. As a result, ABU imembers continued to protest at the site Jan. 26, even as efforts appeared to be underway to address their concerns.

“Dr. Walker called us, he was apologetic,” ABU’s Ashley Rhodes told the Guardian Jan. 26, referring to BayView Hope CDC’s flier. “And the Mayor’s Office just called, saying they wanted to talk with James [Richards, ABU’s leader]. So, that’s where he is right now. But tomorrow we may go to jail.”

Rhodes noted that on Jan. 26, DPR hired one carpenter from ABU’s list.  “And a female receptionist is being interviewed, but we still have three out of five names we submitted last year to bring in,” he said.

Outside UC’s Mission Bay construction site , Michelle Carrington, a 58-year-old Hunters Point resident, continued her protest for a second day straight.

“I’ve been out of work for ten years,” Carrington said, noting that she has over a decade of construction experience as a flagger and an operating engineer.
“I graduated from YCD in 1999,” she said, referring to Young Community Developers. “Dwayne Jones trained me. He just left the Mayor’s Office and now he is working to help us get jobs.”

What if everybody ran for mayor?

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I mean, not everybody. I’m not running. Tom Ammiano isn’t running. Mark Leno isn’t running. Ed Lee isn’t running, unless he is.


But as the progressives think about the 2011 mayor’s race, there’s a strategy that’s been floating around, mostly in bars, that’s crazy and I’m not even sure I’m serious about it myself, but it might actually make sense.


See, right now there’s no one progressive candidate that everyone can get behind. And there’s no single progressive candidate who has the resources and the citywide base to win a contest where millions of dollars will be spent, not only by the candidates but by indepenent expenditure groups.


So suppose a whole bunch of people ran? Suppose the field included Aaron Peskin, Chris Daly, David Campos, John Avalos, Ross Mirkarimi (although he might want to run for Sheriff), Eric Mar … a half dozen decent candidates get in the race, each of them bringing along constituencies who might not otherwise vote. And in the end, it all comes down to ranked-choice voting, and as we know from the Oakland mayor’s race and D10, anything can happen.


Aaron Peskin gets 15 percent of the vote, comes in first, gets enough second-place votes and suddenly — he’s mayor! Take that, Arthur Evans!


Seriously, the point isn’t to elect Peskin or any other individual. It’s too see if a concerted progressive campaign, involving candidates who work together, the way Jean Quan and Rebecca Kaplan did in Oakland, could get enough voters excited and involved to put one of the candidates over the top.


Again: I’m not even sure this is a good idea. But it’s worth thinking about.

Mayor Lee and Big Pharma

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EDITORIAL A piece of simple, logical legislation that would protect San Francisco consumers, public safety, and the environment appears headed for the desk of Mayor Ed Lee — and his signature would be the first clear sign that he’s not going to let powerful lobbyists (or the legacy of Gavin Newsom) guide his decisions.

The bill, by Sup. Ross Mirkarimi, would establish several secure places where people can drop off unused, unwanted, or expired pharmaceuticals for safe disposal. It seems so simple: every year, huge amounts of prescription meds are flushed down toilets or left around in medicine cabinets or drawers in the city. As much as one-third of all medicine purchased in the country is never used. The stuff that goes down the drain already has had a proven impact on aquatic life; the pills that never get thrown away are a hazard, particularly in households with small children.

But under current law, the only safe way to get rid of old meds is to return them to a pharmacy — and pay a fee. The cost of returning old drugs is enough of a deterrent that most consumers don’t bother.

If you have used motor oil in California, you can drop off and recycle it free. Many hardware stores recycle old batteries, light bulbs, and paint. Computer makers have to pay for recycling their products. Why can’t the city mandate the same rules for medication?

The easy answer: because it would cost about $200,000 a year to set up drop-off sites in drug stores and police stations — and the pharmaceutical industry doesn’t want to pay.

It’s a trivial amount of money, a fraction of what the industry spends on lobbying. In fact, with Big Pharma lobbyists from Washington and Sacramento crawling all over City Hall to block the Mirkarimi bill, it’s possible that the drug companies have already spent more fighting the legislation than it would cost to implement it.

The bill would charge companies that sell pharmaceuticals in the city a very modest fee to pay for the drop-off program. Similar programs in other places (San Mateo County, Washington State) have been highly successful — but nobody yet has asked the companies that make billions of dollars selling these products to underwrite the cost. San Francisco would be the first.

The San Francisco Chamber of Commerce has been fighting hard against the measure, claiming it would discourage biotech firms from investing in the city. That’s a huge stretch, but the chamber’s lobbying had an impact. When the measure came up at the end of 2010, four supervisors — Sean Elsbernd, Carmen Chu, Michela Alioto-Pier, and Bevan Dufty — voted with the Chamber and Big Pharma. So the bill would not have survived a Newsom veto.

But thanks to the oddities of scheduling, the legislation comes up for second reading Jan. 25, giving the new board a chance to weigh in. That will be a test for the new supervisors, but Mirkarimi is confident he’s got the six votes to give the measure final approval.

Then it goes to Lee. And if he can stand up to the chamber and the misinformation campaign from Big Pharma and sign the measure, he’ll not only help San Francisco take a national stand on an important consumer and environmental issue, he’ll also demonstrate that he’s not going to fall in line the way Newsom did every time downtown calls.

Editorial: A timely test for new Mayor Ed Lee and four new supervisors

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B3 Impertinent Question:  And so we have a timely test for the new mayor and the four new supervisors.  Will they support good consumer and environmental legislation, setting a major national precedent, or will they do a Newsom and go with the Chamber of Commerce  and Big Pharma lobbyists from Washington, D.C., dispatched to City Hall to kill this bill?


Mayor Lee and Big Pharma

EDITORIAL A piece of simple, logical legislation that would protect San Francisco consumers, public safety, and the environment appears headed for the desk of Mayor Ed Lee — and his signature would be the first clear sign that he’s not going to let powerful lobbyists (or the legacy of Gavin Newsom) guide his decisions.

The bill, by Sup. Ross Mirkarimi, would establish several secure places where people can drop off unused, unwanted, or expired pharmaceuticals for safe disposal. It seems so simple: every year, huge amounts of prescription meds are flushed down toilets or left around in medicine cabinets or drawers in the city. As much as one-third of all medicine purchased in the country is never used. The stuff that goes down the drain already has had a proven impact on aquatic life; the pills that never get thrown away are a hazard, particularly in households with small children.

But under current law, the only safe way to get rid of old meds is to return them to a pharmacy — and pay a fee. The cost of returning old drugs is enough of a deterrent that most consumers don’t bother.

If you have used motor oil in California, you can drop off and recycle it free. Many hardware stores recycle old batteries, light bulbs, and paint. Computer makers have to pay for recycling their products. Why can’t the city mandate the same rules for medication?

The easy answer: because it would cost about $200,000 a year to set up drop-off sites in drug stores and police stations — and the pharmaceutical industry doesn’t want to pay.

It’s a trivial amount of money, a fraction of what the industry spends on lobbying. In fact, with Big Pharma lobbyists from Washington and Sacramento crawling all over City Hall to block the Mirkarimi bill, it’s possible that the drug companies have already spent more fighting the legislation than it would cost to implement it.

The bill would charge companies that sell pharmaceuticals in the city a very modest fee to pay for the drop-off program. Similar programs in other places (San Mateo County, Washington State) have been highly successful — but nobody yet has asked the companies that make billions of dollars selling these products to underwrite the cost. San Francisco would be the first.

The San Francisco Chamber of Commerce has been fighting hard against the measure, claiming it would discourage biotech firms from investing in the city. That’s a huge stretch, but the chamber’s lobbying had an impact. When the measure came up at the end of 2010, four supervisors — Sean Elsbernd, Carmen Chu, Michela Alioto-Pier, and Bevan Dufty — voted with the Chamber and Big Pharma. So the bill would not have survived a Newsom veto.

But thanks to the oddities of scheduling, the legislation comes up for second reading Jan. 25, giving the new board a chance to weigh in. That will be a test for the new supervisors, but Mirkarimi is confident he’s got the six votes to give the measure final approval.

Then it goes to Lee. And if he can stand up to the chamber and the misinformation campaign from Big Pharma and sign the measure, he’ll not only help San Francisco take a national stand on an important consumer and environmental issue, he’ll also demonstrate that he’s not going to fall in line the way Newsom did every time downtown calls.

 


Newsom’s (unbelievably short) resignation letter

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When I clicked on the link to “Mayor resignation” on the Board of Supervisor’s website, I expected a video of Newsom making an incredibly gushy and long-winded resignation speech to pop up.

Instead, I found a one-sentence resignation letter that Starr Terrell faxed to Clerk of the Board Angela Calvillo at an unspecified time on Jan. 10, 2011.

“I am resigning my position as Mayor of the City and County of San Francisco, effective this date, so as to assume the role of Lieutenant Governor of the State of California,” Newsom wrote.

The brevity of Newsom’s letter—and the seemingly endless time it took him to vacate the post–reminded me of something Newsom said the Friday before he resigned.

We were all standing outside Room 200, listening to Newsom go on about how great it was that the outgoing Board had nominated Ed Lee to be the new mayor, especially since Lee reportedly didn’t even want the job—an attitude that apparently impressed Newsom when reviewing potential candidates for both the mayor’s and D.A.’s post.

Anyways, some brave reporter asked Newsom something about his swearing-in ceremony as Lt. Governor, which was slated to take place at 1:30 p.m. Monday, Jan. 10.

At which point Newsom said, “Willie Brown said it best, when he told me, don’t worry, I’ll be at your funeral Monday.”

 

 

Is Ed Lee a caretaker?

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It’s not a moot question. Already, the Chron’s C.W. Nevius, in an otherwise innocuous column on Question Time, tossed out this nugget:


Lee may be the interim, but don’t kid yourself. There are people right now who are asking him if he’d like to make a run for the office in November.


This, of course, is the problem with the concept of a “caretakler” mayor. There’s no law, no rule that says Ed Lee can’t decide round about mid-summer, shortly before the filing deadline, that he’s changed his mind, loves the job, and can’t resist the siren song of his supporters urging him to seek a full term.


And hey: maybe he does do a great job in the next few months. Why shouldn’t San Franciscans have the right to elect him in November?


Of course, he promised that wasn’t going to be part of the deal. And if he had given any signals that he might want a full term, Sup. Sean Elsbern, who was adamant that he wanted a caretaker, wouldn’t have nominated Lee. David Chiu, who might want to run for mayor himself, would have been a lot less likely to vote for a potential rival. Lee the candidate wouldn’t have gotten the job.


So when he should up for Question Time, one of the supes ought to ask him: Right now, in public, for the record, will you tell us — is there any possibility that you will consider running in November?


I’m not saying the guy should be forced to give up his civic and Constitutional right to seek public office; as I said, that’s why I never liked the caretaker thing. But if he’s thinking of running, the city needs to know that, now, so we can work with him on an honest basis. And if he’s not, he needs to tell Nevius’ sources to quit spinning rumors.


 


 

Lee should stop the recycling eviction

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EDITORIAL Mayor Ed Lee needs to demonstrate, as we noted last week, that he’s making a clean break from the politics and policies of the Newsom administration — and there are things he can do immediately to reassure San Franciscans that he’s going to offer more than another 11 months of a failed administration.

He can start by calling off the eviction of the Haight Ashbury Neighborhood Recycling Center.

The move by Newsom to evict the recycling center, on the edge of Golden Gate Park, was part of his administration’s war on the poor. It made no sense from a financial or environmental perspective. The center, which pays rent to the city, would be replaced by a community garden, which would pay nothing. The center creates green jobs that pay a living wage; all the workers would be laid off under Newsom’s plan. The center also operates a native plant nursery and provides a drop-off recycling site for local businesses.

A community garden makes only limited sense in a shady area that gets fog most of the year.

The only reason Newsom was determined to get rid of the place is that low-income people who collect bottles and cans around the city (an environmentally positive activity, by the way) come by the center to drop them off and pick up a little cash. Some of the wealthier residents of the Haight don’t like poor people wandering through their neighborhood. It’s class warfare, declared by the Newsom administration — and Lee, who got his start as a poverty lawyer, doesn’t have to tolerate it.

Lee should direct the Recreation and Parks Department to cease the eviction proceedings and negotiate a long-term lease for the Frederick Street site.

It seems like a small item in the long list of issues the new mayor will have to deal with — but the HANC recycling center has strong symbolic importance. Ending the eviction and allowing the center to stay would be a sign that Lee intends to be a mayor who is willing to work with the progressives and that he’s not going to try to solve all the city’s problems by blaming, harassing, and criminalizing people who are barely surviving in San Francisco.

The new mayor could take another simple step toward broad credibility by opening up his office — to the public and the press. Under Newsom, Room 200 was an unfriendly place to outsiders, and often the news media were treated as enemies. Lee should start holding regular press conferences — not just stage-managed events designed to showcase one issue, but broad-ranging, open sessions where reporters can ask questions about anything his administration is doing. And he ought to direct his press office to make compliance with the Sunshine Ordinance a priority.

For starters, he could release whatever proposed budget cuts Newsom left behind. It’s hard to believe the former mayor just turned them over to Lee without a list of things that were on the chopping block. The sooner the public sees where the previous administration was going, the sooner we can all determine what, if anything, Lee will do differently.