Employment

The “jobs” shell game

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Written with Nima Maghame

news@sfbg.com

While many San Francisco city officials have been trying to figure out how to close a projected budget deficit of more than $520 million, Mayor Gavin Newsom has spent the last month trying to make that spending gap even larger by aggressively pushing a variety of business tax cuts that economists say will do little to improve the local economy and could actually make it worse.

Newsom first proposed his so-called “local economic stimulus package” a year ago during his ill-fated run for governor, just as President Barack Obama was pushing his own economic stimulus plan. But unlike the federal government’s $787 billion plan, about a third of which involved tax cuts demanded by conservatives, Newsom proposed to cut local business taxes while also deeply slashing local government spending and laying off hundreds of city workers.

Most economists say that’s a terrible idea. In fact, a report issued at the time by Moody’s Investor Services made it clear that every dollar of direct government spending adds about $1.60 into the economy (or $1.73 if it’s on food stamps, the most stimulative spending government can make), whereas business tax cuts add only about $1 to the economy for every dollar spent.

We clashed with the Mayor’s Office at the time on our Politics blog (see “Mayor Newsom doesn’t understand economics,” 2/13/09), with Newsom’s spokesperson telling us the mayor was relying on the input of City Economist Ted Egan. But when we interviewed Egan about the issue, he agreed that it’s a bad idea to slash government spending to pay for tax cuts.

“We were in no way saying you should cut taxes to stimulate the economy, particularly if it means reducing government spending,” Egan told us then. And when we asked directly whether it’s better for San Francisco’s economy for the city to directly spend a dollar on payroll or to give that dollar away in a private sector tax break, he told us, “The consensus among economists is that most of the time government spending stimulates the economy more.”

The Board of Supervisors basically ignored Newsom’s proposal. But he revived it last month, expanding the proposals with even more private sector subsidies and making them the centerpiece of his Jan. 13 State of the City speech, publicly pushing it since then with a series of public events at businesses located in the city.

And this time — with the local economy still slow, projected city budget deficits bigger than ever, and little serious talk about how the city can bring in more money — it appears the proposals will be the subject of a series of hearings before Board of Supervisors’ committees in the coming weeks.

Newsom’s tax cut proposals include a proposal to waive the 1.5 percent payroll tax (the city’s main business tax) for all new hires; extend and expand the payroll tax exemption for biotech companies (see “Biotech’s bonanza,” p. 12); give small businesses tax credits for their spending on health plans; and allow developers to pass one-third of their affordable housing in-lieu fees onto future homeowners.

Newsom and his Press Secretary Tony Winnicker have spoken euphorically about the proposals, saying they’re desperately needed to spur the local economy. “We believe that enacting these tax incentives, particularly the payroll tax credit for new hires, is one of the single biggest things we can do for economic growth,” Winnicker said.

Despite repeated questions about the economists’ concerns over financing tax cuts with government spending cuts, we couldn’t get them to address the tradeoff directly. “The mayor will support critical public services,” was all Winnicker would say about the deep cuts that Newsom is expected to announce in his June 1 budget.

Sup. John Avalos, who chairs the Board of Supervisors Budget and Finance Committee, expressed more skepticism about the mayor’s proposals. “Do tax breaks have the intended effect of stimulating the economy? As we underfund government services, are we getting a net gain or are we getting something taken away? For the very small businesses in my district, it’s going to be trickle-down economics. It’s very unrelated and unmeasurable in benefit,” he told us.

David Noyola, board aide to President David Chiu, said his boss is supporting the biotech tax credit but reserving judgment on the rest. “It’s going to be a cost-benefit analysis,” Noyola said. “When we’re talking about jobs, we’re talking about public and private sector jobs, always.”

While Egan’s economic analysis predicts tax cuts will encourage some economic growth, even he is circumspect about the good it will do, particularly without finding a way to avoid deep cuts in city spending. “The truth of the matter is that our stimulus efforts are small because the city has relatively small power to affect the local economy,” Egan told us.

That’s the consensus economic opinion. Huge federal spending can help a national economy a little bit, but local economies are just different animals that local governments are largely powerless to really alter, particularly through tax cuts.

“I agree with Egan: city government has little power over the local economy,” Mike Potepan, an urban development economist at San Francisco State University, told the Guardian.

Both economists agree that tying tax cuts to job creation or development stimulus is better than general tax cuts, but that neither is good if it means laying off more city workers.

“Research shows that by cutting taxes you have more business activity where studies show it is likely to effect employment,” Potepan said. “On the other side, you have to think about revenue. Cities are going to have to balance their budgets, which could mean a cut in services.”

Author Greg LeRoy expresses a more critical perspective in his book The Great American Jobs Scam: Corporate Tax Dodging and the Myth of Job Creation (1995, Berrett-Koehler), amassing evidence from economic studies and CEO surveys that corporate tax breaks, even those tied to new job creation, have almost no effect on private companies’ decisions about where to locate and whether to hire.

“How can companies get away with this? Because the system is rigged. Corporations have it down to a science. They have learned how to chant ‘jobs, jobs, jobs’ to win huge corporate tax breaks — and still do whatever they wanted all along,” LeRoy writes. “That’s the Great American Jobs Scam: an intentionally constructed system that enables corporations to exact huge taxpayer subsidies by promising quality jobs — and lets them fail to deliver. The other benefit often promised — higher tax revenues — often proves false as well.”

While proposing to forgo collecting millions of dollars in payroll taxes (the Controller’s Office is still working on a projected total for the tax cut package), the Mayor’s Office also wants to spur development of new housing with a proposal that would delay collection of needed affordable housing money by more than a decade.

After hearing mostly from a large crowd of desperate developers and construction workers during a Jan. 21 hearing on the proposal, the Planning Commission approved the package on a 4-3 vote, with the mayor’s appointees in agreement and the board’s appointees in dissent. It will be considered by the Board of Supervisors Land Use Committee sometime after Feb. 12.

The most controversial part of the fee reform package involves reducing the fee developers pay to support affordable housing by 33 percent, then charging a 1 percent transfer tax to subsequent buyers of those homes. Egan estimates developers would save almost $20,000 per housing unit, and that it would take an average of 16 years for the city to recover that money. But for high-rise luxury condos, the city would eventually recover about $27,000 per unit.

“It’s a classic make-an-investment-now-to-get-more-later strategy,” Michael Yarne, who crafted the policy for the Mayor’s Office of Economic and Workforce Development at Newsom’s direction, told the Guardian.

“If it makes it feasible for projects to be started, then it is worth passing,” Tim Colen, a representative of San Francisco Housing Action, said at the Planning Commission hearing, expressing hope that it will help create desperately needed construction jobs and new market rate housing.

But affordable housing advocates and some progressives criticize the policy as completely backward, saying that affordable housing development is desperately needed now, during these tough economic times, rather than a policy that encourages more market rate housing and bails out bad investments made at the height of the real estate bubble.

“What the city needs to do is directly build affordable housing, for which there is a demand,” affordable housing activist Calvin Welch told us. “The problem is that the banks don’t want to lend these guys money because they know nobody can afford to buy houses at the prices that these guys are demanding.”

Debra Walker, who is running for supervisor from District 6 and voted against the proposal when it came before the Building Inspection Commission (the sole vote on a commission dominated by mayoral appointees), agrees.

“The whole argument is that it stimulates development, but it doesn’t,” Walker said, arguing that the incremental gains (about 25 housing units per year, Egan estimates) will be offset by delayed affordable housing construction. “There would be more economic stimulus by using the fee to build more affordable housing.”

Instead, it simply shifts resources to favored entities: from home owners to developers, in the case of the affordable housing fees, or in the case of the tax credits, from the public to the private sector. But Newsom’s office just doesn’t see it that way.

“The Guardian believes in protecting public sector employees over private sector employees,” was how Winnicker formulated our understanding of what the economists are saying. “Most people don’t work for the city, and if we can support private sector jobs, that adds to sales tax revenues and benefits the economy. Despite a short-term impact of the tax credit, that’s a benefit.”

Adam Lesser contributed to this report

 

Editor’s Notes

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tredmond@sfbg.com

Progressives don’t have to be afraid of economic development, don’t have to be afraid of promoting business and creating private-sector employment. And we don’t have to be terrified of a mayor who wants to label anyone who opposes Reagan-era economic policies as anti-jobs.

The thing is, San Francisco needs to promote the biggest engine of new employment — small business — and needs to encourage entrepreneurship and innovation. But there’s enough good economic science out there, enough evidence of what works and what doesn’t, that we don’t have to be stupid.

The most obvious example of that is tax cuts. We talk about the mayor’s tax plans this week — and what’s most remarkable is the consensus among economists, even the city’s own economist, that what Newsom is proposing won’t work.

If cutting specific taxes for certain businesses — say, waiving the 1.5 percent payroll tax for biotech — would actually lead local companies to hire hundreds of new people, it might be worth the budget pain. But that’s not going to happen. If allowing developers to pay their affordable housing fees years down the road would put thousands of construction workers back on the job, you could make the case for it — but nobody with any sense really thinks that’s likely.

What do we know would create employment opportunities? Well, a giant affordable housing bond, hundreds of millions in city money going to build new apartments, would generate construction jobs. But what most small businesses really need, what would really encourage hiring, is credit. If San Francisco took the money it’s going to expend (and tax cuts are an expense; let’s be honest) and put all of it into a revolving microloan fund for community businesses, we’d get a lot more jobs. In fact, almost any way that San Francisco spends that money on direct services would create more jobs than these tax cuts.

That’s not politics or ideology or anything else. It’s just reality.

Editor’s Notes

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The mayor of San Francisco is mad that the Board of Supervisors won’t even schedule a hearing on his proposals to stimulate business and job creation in San Francisco. He ought to be happy. If this loopy plan ever gets to the point of open, full discussion, Gavin Newsom will wind up with a real political embarrassment.

Let’s analyze, for example, the suggestion that the city waive payroll taxes for biotech companies. That’s supposed to make those companies more likely to hire new people. After all, any economist knows that taxing something discourages people from doing it, so taxing a payroll ought to make companies less likely to hire. And getting rid of that tax ought to create jobs.

Well, since one of the things I do is help run a small business in San Francisco, let me explain how it actually works.

Say you’re a biotech company that wants to hire a new entry-level worker at a modest $35,000 a year. Can you afford it? Let’s cost it out.

There’s the salary, of course. Then there’s the 7.5 percent you’re paying in federal Social Security tax. That’s $2,626 more. And since you’re in San Francisco, you’re paying for health insurance; that’s probably between $2,000 and $4,000 a year, depending on the plan, but let’s peg it at the city’s minimum mandate, which is $1.09 an hour, or $2,267.

So now your $35,000 worker costs $39,893. Then there’s unemployment and disability insurance and workers’ compensation. The person’s going to need a desk and a chair, or a lab bench and a stool (and they have to be ergonomically correct), and probably a computer, a phone line, and software. And you’re going to have to spend some money on training. You’re going to offer a couple weeks of paid vacation, right? And you have to give sick days. So you have to account for the money you’re spending to cover your new worker when he or she isn’t working. If it all pencils out at less than $42,000, you’re doing well.

Oh, wait, I forgot — there’s the damn city payroll tax. That job-killing factor that could make the difference between hiring and not hiring. Better account for that; it could be a deal breaker.

Are you holding your breath? Ready for the ax to fall? Here you go: the payroll tax on your new hire is a whopping $525 a year. About $10 a week. You probably spent more on the help wanted ads.

So let’s be honest — the payroll tax may sound awful (and actually, I think a gross receipts tax would be more fair, for a lot of reasons). But suspending it won’t create a single new job. It’s too small a factor to count as more than decimal dust in anyone’s hiring decisions.

Here’s what suspending the payroll tax for biotech companies will do: reduce city revenue, almost certainly by enough to force more program cuts, and that means more job cuts for city workers. So you gain no private sector jobs — zero — and you lose public sector jobs. How, exactly, is that encouraging employment growth?

Quit complaining, Mr. Mayor — the last thing your proposals need is real public scrutiny.

DEIR in the headlights

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GREEN CITY Public comments on the city’s draft environmental impact report (DEIR) for Lennar Corp.’s massive redevelopment proposal on Candlestick Point and the Hunters Points Shipyard includes complaints that the comment period was too short (see “The Candlestick Farce,” 12/23/09), concerns that the city violated state requirements to notify the Ohlone Tribe, and frustration that the city’s preferred plan represents the most significant and substantial impacts of any of the five scenarios analyzed in the DEIR.

These and many other concerns about the impacts of the 10,500-home project will need to be addressed in the final EIR, which Mayor Gavin Newsom and other project proponents expect to be completed by June.

Some object that the city is considering an early transfer of the shipyard and would undertake activities that are currently the Navy’s responsibility (see “Eliminating Dissent,” 06/17/09), saying the final EIR should prominently reference Proposition P, which voters approved in 2000, establishing community acceptance criteria for the cleanup.

Saul Bloom, executive director of Arc Ecology, submitted his organization’s comments “under protest for the inadequate extension of the public comment period, which we believe unfairly penalizes the public review of the draft EIR.”

Land use attorney Sue Hestor called the public comment submission schedule “abusive” in comments submitted for POWER (People Organized to Win Employment Rights). “The schedule is being driven by an insane desire to have the final EIR certified and all local approvals done by June,” Hestor said.

Ohlone chairperson Ann Marie Sayers and Neil MacClean of the Ohlone Profiles Project wondered why the Planning Department did not contact anyone on the city’s list of official Ohlone representatives. “We want the SF Planning Department to follow Senate Bill 18, which requires them to include Ohlone people in the planning process,” MacClean said, noting that there are at least four Ohlone villages within the proposed development area.

Jaime Michaels, coastal program analyst for the San Francisco Bay Conservation and Development Commission, expressed concerns about the DEIR’s proposal to make a 23.5 acre reduction in existing state park boundaries (see “Can I buy your park?” 08/12/09).

Project proponents, Michaels said, “would need to demonstrate that the decreased area would not compromise or reduce its value as a park/beach facility.” Michaels also worries about the impact of adding a minimum of 1.7 acres of fill in the bay to accommodate a bridge at Yosemite Slough, a plan she described as “a significant amount of coverage, particularly for a facility where the large majority of its coverage is needed to serve vehicles accessing the new stadium only 12 days a year.”

Michaels expressed concerns that the project’s plans to address sea level rise would negatively affect bay views and public access to the shoreline.

The project includes a 9.6-mile trail and a variety of other public amenities directly adjacent to the shoreline. Proposed building structures located away from the immediate shoreline would accommodate a 36-inch sea level rise by 2075, and the DEIR promises to employ adaptive management strategies along the perimeter beyond 2050.

“Unfortunately, partly due to illegibility and the scale of the drawings, it is difficult to assess precisely how these adaptations would appear,” Michaels observed. “However, it can be assumed that over time levees would need to be raised and likely widened at the base, thereby partly or entirely obstructing the public’s view of the bay from inland areas, encroaching on and reducing the area devoted for public use and impacting the overall public access experience.”

Arc Ecology discussed the DEIR’s failure to provide a comprehensive sustainability plan, address adjacent development projects, justify a 49ers stadium on the shipyard, or evaluate the potential for the development of port-related heavy industrial activities.

“The city is determined to get this project passed right now, and the developer is afraid that if someone else comes along as mayor and District 10 supervisor, they may not be as sympathetic,” Bloom said. “But the project — as outlined in the DEIR and the city’s way of approaching the deal — is against the interests of San Francisco.”

Scraping bottom

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The job of scrubbing down a city bus after it’s gone out of service is no picnic. At a Jan. 20 Budget and Finance Committee hearing called by Sup. Chris Daly to discuss health and safety impacts related to Municipal Transportation Agency layoffs, supervisors took a virtual tour of a Muni bus that was trashed on multiple levels: tagged inside and out, soiled with vomit, and strewn with garbage. Among the roughly 100 Muni workers who will lose their jobs to midyear budget cuts are 10 “car cleaners” — those unsung heroes who scrub away late into the night, tackling the residue left behind by the Sharpie-wielding, litterbug masses.

“We do send out all of our vehicles clean,” MTA spokesperson Judson True told the Budget and Finance Committee members at the hearing. “We do not send out any of our vehicles with any health issues … and we will not.” Despite his assurances, members of the Board of Supervisors and some Muni staffers voiced fears that with fewer and more overworked car cleaners, the overall experience of riding public transit could suffer.

It’s just one small example of on-the-ground impacts of painful budget cuts inflicted to solve a steep shortfall affecting the city’s transit agency. The fiscal woes aren’t unique to Muni. In coming months, San Francisco city departments across the board will have to contend with revenue shortfalls and find ways to continue providing services with diminished resources.

But with layoffs and other proposals such as raising fares, reducing service, and charging more for discount passes on the table, many are raising objections — including several members of the MTA Board of Directors, a body that is wholly appointed by Mayor Gavin Newsom. In a rare show of defiance at a Jan. 19 MTA Board meeting, several directors even resuscitated the idea of extending parking-meter hours and raising meter fees to generate new transit revenue, an idea Newsom previously rejected.

$49 MILLION IN THE RED

Muni has lost $180 million in state funding over the last three years due to “the nightmare in Sacramento,” as True put it, and no one seems to believe the fiscal crisis can be resolved without some degree of pain.

At the Jan. 19 MTA Board meeting, transit agency Chief Financial Officer Sonali Bose outlined the dismal financial picture, explaining that Muni has been hit hard by declining parking and taxi fees and impacts to the city’s general fund, leaving it about $49 million in the hole for the current budget cycle. After the layoffs, Muni will still face a $17 million problem. To solve it, suggestions include jacking up the historic F Line trolley fare from $3 to $5, charging $30 for discount monthly passes for seniors and passengers with disabilities, and reducing service.

Even against the gloomy fiscal backdrop, the prospect of eliminating jobs to make up for the losses drew serious concerns from MTA directors. “Once somebody’s gone, they’re gone,” Director Shirley Breyer Black noted. “I think moving forward with cuts in these classifications will send us into deeper fiscal crisis.”

All the affected workers — most of them frontline employees — are slated to lose their jobs by May 1, and around one-third of them were dismissed Jan. 22.

Muni Executive Director and CEO Nathaniel Ford emphasized that the decision to cut jobs was not made lightly. But at a Budget and Finance Committee meeting the following day, progressive members of the Board of Supervisors expressed alarm after hearing union members sound off about how the cuts disproportionately affect lower-paid classifications. The majority of layoffs target members of Service Employees International Union Local 1021, San Francisco’s largest labor union, which represents frontline workers across city departments.

“I understand that there are no good decisions,” Daly told the Guardian, adding that a certain group of workers seem to bearing the brunt of the cuts. “What progressive supervisors are calling for is for the budget to be handled more evenly,” he said.

A single Municipal Executives’ Association (MEA) employee — an MTA manager earning between $105,950 and $135,200 per year — was let go during this latest round of about 100 Muni layoffs, according to an agency memo. In the past year, MTA reduced its upper-level management team from 108 to 96 employees. In contrast, 33 members of SEIU Local 1021 — the majority frontline workers earning between $45,656 and $64,272 a year — will be affected by the cuts.

“Unfortunately, when MTA discovered that they had a budget problem, they didn’t bring all parties to the table,” SEIU Organizer Leah Berlanga testified at the Budget and Finance Committee hearing. “The way we got invited was via pink slips. That’s the only time they will talk to people who do direct services.”

When asked whether Muni had assessed mid- and upper-management level jobs to even the scales, True responded that a few mid-level managers were included in the latest round of cuts. One reason the layoffs seem disproportionate, he added, is that there are so many more frontline workers than others. “The budget picture has affected the entire agency,” he said. “No one is happy about these decisions.”

But SEIU Local 1021 characterized the layoffs as misguided, and attempted to identify waste and mismanagement within the agency in a packet of alternative cost-saving measures it submitted to MTA. At the top of the list was the suggestion that the agency eliminate 35 retired Muni employees, who are allowed to work up to 960 hours per year and earn wages in addition to their pensions. And according to the union, there are 21 temporary workers in the agency who’ve exceeded a two-year limit for short-term employment. SEIU recommended that those temps be dismissed too.

SEIU also criticized the decision to lay off 24 parking control officers (PCOs) — uniformed workers who have the unenviable job of issuing parking citations to bring in revenue for the city. “To me, if you do the simple math, it doesn’t make any sense. They make most of the money for the MTA,” said a PCO who testified at the hearing.

According to SEIU’s calculations, eliminating 24 employees who dole out parking tickets could result in a $7.2 million loss for the city in parking revenue. But True said MTA disagrees with this figure, and pointed to an internal memo showing how revenue from parking citations dropped in recent years even as more PCOs were hired. Nonetheless, at the urging of SEIU, the MTA Board agreed to postpone those 24 layoffs until February to buy time to study the impact. For other positions, negotiations between MTA and the union are ongoing. The details on still more layoffs, which will affect transit operators, is yet to come.

Sup. David Campos is asking for a management audit to see if Muni is spending its money efficiently. “I think we should look at best practices and how we’re operating before we finalize any cuts,” he said.

THE PARKING POLITICS

During a round of MTA budget talks last fall, the idea of extending city parking meter hours and raising meter fees was floated as a means of recouping losses — but Newsom balked at the idea, saying higher parking fees could harm small businesses. Now MTA Director Bruce Oka has revived — and endorsed — the concept.

“I can hold my nose and vote on anything, but I refuse to vote on something when I believe we have not looked under a rock for every source of funding,” Oka said at the meeting. “We have to extend the parking meter hours — we have to find dollars. If Room 200 [i.e. Newsom] doesn’t want that to happen, well then … he’s got to come up with a way to do what we need to do. If he’s not going to raise parking meters or extend parking meter time, he’s got to come up with some money.”

Tom Radulovich, executive director of nonprofit Livable City and one of the individuals who helped to create MTA in 1999, summed up Oka’s comments with a note of surprise: “He really called out the mayor,” he said. “I haven’t seen MTA Board members do that — they usually cover for him.”

Radulovich — who is also on the BART Board — says targeting motorists for more revenue instead of transit riders would be more equitable, sustainable, and in keeping with the city’s Transit First goals in the long run. Proposition A, passed November 2007, established “a strong mandate to reduce transportation-related greenhouse gas emissions,” he pointed out. But, he noted, with layoffs that could affect the qualify of service and possibly deter people from riding, “We don’t see how MTA is going to get to those voter-mandated transit goals.” *

MUNI MEETINGS

PUBLIC MEETINGS ON SFMTA BUDGET

Saturday, Feb. 6, 10 a.m. to noon

Tuesday, Feb. 9, 6 p.m. to 8 p.m.

Saturday, Feb. 20, 10 a.m. to noon

One South Van Ness Ave. at Market Street, 2nd Floor Atrium

SFMTA BOARD MEETINGS

Friday, Jan. 29, 10 a.m.; discussion of FY10 options, including Muni service reductions

Tuesday, Feb. 16, 11 a.m.; public hearing on proposed FY10 budget actions

Tuesday, Mar. 2, 2 p.m.; public hearing and possible board approval of FY10 budget actions

Location: City Hall, 1 Dr. Carlton B. Goodlett Place, Room 400

The Candlestick farce

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No one was really surprised when commissioners for the Redevelopment Agency and Planning Department voted last week to only give the public a Scrooge-like 15 days to review a six-volume, 4,400-page draft environmental impact report for Lennar Corp.’s massive 700-acre Candlestick Point redevelopment project.

Everybody knew that Michael Cohen, Mayor Gavin Newsom’s top economic advisor, wanted to jam this proposal through the certification process by early June in a last-ditch effort to win back the 49ers, even though the team has said it wants to go to Oakland if the City of Santa Clara doesn’t vote to build a new stadium.

The decision gives the public until Jan. 12th to submit written comments on the DEIR. A broad coalition of community and environmental justice groups asked for a 45-day extension.

And the entire process — including condescending remarks by commissioners, a fight, the forcible removal of several members of the audience, and statements from developer allies that were, at best, highly misleading — can only be described as a farce.

The rush to approve the document is entirely political. Santa Clara voters go to the ballot June 8 to decide if they want to build the 49ers a fancy facility near Great America. But June 8 is the same day, according to a spreadsheet maintained by city Shipyard/Candlestick planners, that the San Francisco Board of Supervisors is scheduled to approve the EIR for Lennar’s proposal.

The city’s DEIR envisions building a new 49ers stadium on the shipyard — a position that would allow thousands of luxury condos to be built on the site where the team currently plays, including a significant slice of Candlestick Point State Recreation Area.

To meet the increasingly artificial-looking June 8 EIR deadline, Cohen signaled he’d only be able to squeeze out 15 extra days for draft EIR review.

LENNAR’S PAID SUPPORTERS

With Cohen nowhere in sight at the DEIR hearings last week, his deputy, Tiffany Bohee, was left to kick off Redevelopment’s Dec. 15 and Planning’s Dec. 17 DEIR hearings.

“Time does matter for this project,” Bohee told commissioners, claiming that the project has been vetted exhaustively, including at least 177 public meetings — when the truth was that the public had never had an opportunity to review the complete draft EIR, a binding legal document, before its recent release.

“The consequence of delays is that it precludes the city’s ability to get ahead of the Santa Clara election in June,” Bohee said.

Bohee’s introduction was followed by a string of “no delay” and other off-point comments from representatives of the San Francisco Labor Council, the San Francisco Organizing Project, SF ACORN, and other groups that signed a community benefits agreement with Lennar in May 2008 that promised them millions of dollars in work and housing benefits — provided they show up at public meetings and support the development.

SF Labor Council vice president Connie Ford told commissioners that her organization “looks forward to the day when much-needed resources and support comes our way.”

A dozen residents of the Alice Griffith public housing project talked about their deplorable living conditions.

Asked by Redevelopment commissioner London Breed what the impact of a DEIR review extension would have on the planned rebuild of the Alice Griffith project, Bohee said, “It will jeopardize our ability to get any city decision on the project by June. As a result, delays to Alice Griffith could be indefinite.”

But that’s a stretch — at best. According to Lennar and the city’s own schedule, new Alice Griffith replacement units won’t be available before 2015 at the earliest. An additional 30 days of environmental review at this point will make no difference.

THE BOZO COMMISSIONERS

Compounding the city’s half-truths was the patronizing attitude of those commissioners who thought that their opinion of the DEIR should satisfy members of the public who hadn’t had enough time to review it.

“I think it’s an extremely well done document,” Planning commissioner Michael Antonini told a crowd that had sat through five hours of testimony and been warned by Planning Commission chair Ron Miguel that they’d been thrown out if they spoke during others’ testimony.

Bizarrely, planning commissioner Bill Lee tried to use the fact that the public wasn’t making many substantive comments on the DEIR as an argument against giving anyone more time to read it. Commissioner Gwyneth Borden made the equally odd argument that since people are almost certain to sue the city over the DEIR, there’s no reason to give an extension now.

And Miguel asked the public to put their faith in some vague meeting in the future rather than agreeing to what were asking for at the meeting. “I do believe that when all the comments are considered and answered and the final EIR comes before us and the Redevelopment Agency, that everything will come together,” Miguel said.

By that time, Arc Ecology’s director Saul Bloom, Jaron Browne of People Organized to Win Employment Rights, and POWER’s attorney Sue Hestor told the commissioners that they believe the project’s impacts on transportation, state park habitat, and the foraging requirements of the peregrine falcon had not been adequately analyzed. Eric Brooks of the Green Party expressed concern that sea level rise will be more pronounced than the DEIR projections.

Bloom also explained that a lack of adequate review time hindered his staff’s ability to prepare comments in time for a hearing that came only a month after the DEIR’s release.

Planning Commission vice president Christina Olague and commissioners Kathrin Moore and Hisashi Sugaya tried to extend the review period to February. As Olague pointed out, the commission recently granted a public DEIR review extension to a 15,959-square-foot parcel in Russian Hill, which is tiny compared to Lennar’s 708-acre proposal in the Bayview, where residents have the city’s lowest educational levels

But the Planning Commission’s 4-3 vote against a February extension revealed how mayoral appointees ignore common sense once they have their political marching orders.

COHEN’S FANTASY

“This appears to be all about Cohen’s fantasy of out-maneuvering Santa Clara to get the 49ers to move into a new Hunters Point stadium,” Hestor told the Guardian.

Hestor also pointed to a Dec. 18 San Francisco Business Times guest editorial titled “Business Leaders Can Save the Niners” that Planning Commissioner Michael Antonini had clearly written before Planning’s marathon Dec. 17 hearing.

“The editorial illuminates why, at the Planning Commission on Dec. 17, Antonini argued against any extension for public comment on the DEIR beyond Dec. 28,” Hestor said, noting that Dec. 28 was the absolute minimum DEIR review period required under the California Environmental Quality Act — a review period that straddled Thanksgiving, Hanukkah, Kwanza and Christmas (see Holiday Snowjob, 12/09/09).

Earlier this month, a coalition of environmental and community development groups, including Arc Ecology, the Sierra Club, the Potrero Hill Democratic Club, San Francisco Tomorrow, Literacy for Environmental Justice, Young Community Developers, the Neighborhood Parks Council, the South East Jobs Coalition, Walden House, Urban Strategies Council, India Basin Neighborhood Association, California Native Plants Society, Golden Gate Audubon Society, and the Bayview Resource Center, wrote to Mayor Gavin Newsom, requesting a 45-day DEIR review extension.

The request seemed further vindicated when it became apparent that most of the people who showed up at the DEIR hearings, including those opposed to extending the review period, admitted that they had not actually read the documents in question. And the commissioners’ failure to honor the extension request represents a new low in a process that threatens to become a classic lesson in the dangers of public-private partnerships.

Opponents of giving the public a decent chance to read the DEIR argue that there have already been hundreds of meetings on the proposed project. But as Bloom pointed out, the character and focus of EIR is different from any other document that has been produced for discussion. “If an issue is not raised during the EIR process, it cannot be raised subsequently,” Bloom said. “Releasing an EIR during the holiday season and providing the minimum amount of time allowable under the law for public review undermines the public’s ability to evaluate an EIR and disenfranchises people at one of the most critical points of the project approval process.”

Bloom also noted that a standard strategy for drastically limiting public input while appearing to be transparent is to spend time evaluating nonbinding documents while providing the minimum time required to evaluate the legally binding stuff.

“The Phase 2 Urban Design Plan released in October 2008 was in public discussion until it was approved in February 2009 — five months,” Bloom observed, noting that nothing in that document was legally binding. Neither was Lennar required to disclose negative effects of its plan. But an EIR is a legally binding document. “It’s a fiction that a 45-day DEIR public review extension would have cause a domino effect of indefinitely delaying the approval of the project,” Bloom added.

Climate Change protests

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Text by Sarah Phelan

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“Human chain” protestors protect grassroots groups from all over the world from hundreds of riot police who turned out to keep climate justice activists from entering the Bella Center where the 15th Conference of Parties was being held.

Alicia Garza, co-executive director of the San Francisco-based People Organized to Win Employment Rights (POWER) sent these photos from protests in Copenhagen. Media outlets are reporting that Danish police arrested about 250 protesters and used pepper spray and dogs to contain crowds in Copenhagen today, as a demonstration against the U.N. climate talks converged on the Bella Center ahead of crucial negotiations at the COP15 summit.

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As thousands of activists held a People’s Assembly outside the Bella Center where indigenous activists and G77 representatives walked out of climate talks, activists hung a banner from the trees which said COP15: Business as U$ual. Many activists said that the wealthier nations, such as the EU, France and the United States were prioritizing business interests over the fate of millions of people around the world who are severely impacted by current and impending climate crises.
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Via campesina at COP 15” is an international grassroots organization of farmers and workers from around the world who led activists and civil society who were locked out of the COP. COP officials limited the amount of participation from civil society to 1000 people today, and intend to further limit participation to 90 people tomorrow.
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Don’t rush the Candlestick EIR

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EDITORIAL The Candlestick Point redevelopment project is by far the biggest land-use decision facing San Francisco today, and one of the most significant in the city’s modern history. The project, sponsored by Lennar Corp., would bring 10,500 housing units and 24,000 additional residents to the area. Those residents would need new schools, playgrounds, open space, and transportation systems. Industrial and commercial development would create some 3,500 permanent jobs, and those people would need ways to get to work. Plans calls for new roadways, including a bridge over the fragile Yosemite Slough. The 708-acre site includes areas with significant toxic waste issues.

It’s no surprise that the draft environmental impact report on the project weighs in at 4,400 pages. It took two years to review the land use, transportation, air quality, water quality, population, employment, noise, hazardous materials, and other potential issues.

And now the Planning Department and Redevelopment Agency wants all public comment to be completed in a 45-day period that includes the winter holidays. That’s crazy – and it’s a sign that the city just wants to rush this project through without adequate oversight, review, or discussion.

The EIR in a project this size is a major political battleground. It’s one of the few times that the Planning Commission and Board of Supervisors will get to weigh in on the entire project and look at its local and citywide impacts. It’s quite possibly the only time prior to construction when the economic, social, and environmental issues around the project will get widespread public discussion.

And anyone who reads these reports on a regular basis can tell you that they’re thick, dense, tough to follow, and filled with minute details and arcana that add up to very big policy decisions. Among the most pressing issues:

• The housing mix. The city’s own General Plan notes that almost two-thirds of all new housing built in San Francisco needs to be available at below-market rates. Lennar won’t even meet half that target. So the project would create an even greater unmet demand for affordable housing — something the EIR, at least on first read, glosses over. The report refers to “a broad range of housing options of varying sizes, types, and levels of affordability [that would] be developed at Candlestick Point” and states that “such housing would be in close proximity to the jobs provided by the project, [so] it is likely that future employees at Candlestick Point would seek housing at the project site prior to searching for housing in the surrounding Bayview-Hunters Point neighborhood. However, if future employees did seek housing elsewhere in the neighborhood, the effects would not be adverse.”

Actually, if comparatively well-paid employees at the project’s research and development facilities decided to move into the existing Hunters Point/Bayview neighborhood, it would almost certainly drive up housing prices, displacing existing residents.

• Transportation options. The project projects significant improvements in Muni service — but doesn’t say how the city will pay for them. There’s a sizable focus on cars — the EIR estimates the project will need more than 21,000 parking spaces. That’s a lot more cars on the streets of the city, a lot more traffic in the southeast — and a direct clash with the city’s transit-first policies.

• What jobs, and for whom? The 3,500 permanent jobs that would be created are badly needed in that neighborhood, which has the highest unemployment rate in the city. But a comprehensive labor pool study, and a discussion of how existing residents will be trained for projected jobs, appears to be missing from the EIR.

• Hazardous materials. The EIR broadly proclaims that “construction activities associated with the project would not result in a human health risk involving the disturbance of naturally occurring asbestos, demolition of buildings that could contain hazardous substances in building materials, or possible disturbance of contaminated soils or groundwater within one-quarter mile of an existing school.” That is — at the very least — a matter of some dispute.

There’s lots more – 4,400 pages more – and if the approval process is going to be anything other than an utter farce, the Planning and Redevelopment directors need to extend the public comment period for at least another 45 days. *

Editorial: Don’t rush the Candlestick EIR

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The city wants to rush the massive Candlestick Point Redevelopment Project through during the holiday season without adequate oversight, review, or discussion. It needs to extend the public comment period for at least another 45 days.

The Candlestick Point redevelopment project is by far the biggest land-use decision facing San Francisco today, and one of the most significant in the city’s modern history. The project, sponsored by Lennar Corp., would bring 10,500 housing units and 24,000 additional residents to the area. Those residents would need new schools, playgrounds, open space, and transportation systems. Industrial and commercial development would create some 3,500 permanent jobs, and those people would need ways to get to work. Plans calls for new roadways, including a bridge over the fragile Yosemite Slough. The 708-acre site includes areas with significant toxic waste issues.

It’s no surprise that the draft environmental impact report on the project weighs in at 4,400 pages. It took two years to review the land use, transportation, air quality, water quality, population, employment, noise, hazardous materials, and other potential issues.

Killing the dream

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tredmond@sfbg.com

When the first issue of the Bay Guardian hit the stands in 1966, it was still really possible to talk about the California dream. The state had seemingly limitless potential and was in many way a model for the nation — a free public university system that was the envy of the world, an economy that provided jobs to hundreds of thousands of new arrivals, the beginnings of what would be the nation’s premier environmental movement pushing to save San Francisco Bay, save the coast, save Lake Tahoe … and the Free Speech Movement, the Summer of Love, the United Farm Workers Union, and so much more that was transforming politics and culture in the United States from the West Coast.

Twelve years later, it was all falling apart. Eight years of Gov. Ronald Reagan and then the passage of Proposition 13 launched a very different kind of movement out of the West, a movement that sought to dismantle the public sector and the social safety net, to treat government as the enemy, and to use culture wars to convince working-class Americans to vote against their own economic interests.

And now California is being described as the nation’s first failed state. Gov. Arnold Schwarzenegger — the second Republican actor to hold that role — has driven the state to the brink of bankruptcy. The University of California is drowning in red ink, raising fees and turning away students. The state’s water system is a mess; cities and counties are in fiscal collapse; the economy’s in the tank; and nobody seriously talks about a California dream anymore.

The story of how that happened — and how the diseases of tax-revolts, privatization, government corruption, and public disempowerment spread east from California — is the focus of this 43rd anniversary issue. It’s both enlightening and a bit scary to read through old issues, because in hundreds of stories over the past four decades, the Guardian has warned of exactly what was to come.

The very first issue of the Bay Guardian talked about the "historic election" pitting the incumbent, Democrat Pat Brown, against Reagan. A lot of people in the emerging "new left" were arguing that there wasn’t a bit of difference between the two, and that you might as well sit out the election. But the Guardian had a different take. The election was really about the direction California wanted to go, the paper said, a choice between a state that cares about the public sector and social welfare and a state where those things don’t matter.

"Reagan’s stands typify the temper of the cause," the Nov. 7, 1966 editorial stated. "He is on record, at various times, in opposition to the progressive income tax, Social Security, Medicare, the anti-poverty program, farm subsidies, the TVA, the Civil Rights Act, the Voting Rights Act, public housing, federal aid to education, and veterans hospitalization for anything other than service-connected disabilities. How can a man or a movement govern the state of California with such a political philosophy?"

Reagan’s election may have seemed like a fluke, but it was nothing of the sort. By the mid 1960s, with the counterculture — and equally important, the economic left — looking to make major inroads in American policy, the broad outlines of a right-wing attack plan were in place.

That’s something the Guardian always recognized — that powerful people who moved the levers of government typically did so with a long-term plan.

In San Francisco, part of that plan was the transformation of a human-scale city to a West Coast version of Manhattan. The idea: tear up South of Market (then mostly low-income housing) for a shiny new convention center and hotels. Dump dozens of big high-rise office buildings downtown. Construct a fixed-rail system to carry suburban commuters into the dense downtown. Drive up property values — massively — and if that means blue collar jobs and working class people had to go to make way for wealthier office workers, so be it. In the end, of course, the architects of the plan — landowners, developers, bankers, and big business leaders — became immensely wealthy.

On the state and national level, their plans were broader. Even so, they had one major aim: throttle the pubic sector. Cut off the funding for government programs, reduce regulations, undermine any concept of a welfare estate — and cut taxes on the rich.

As we report on page 8, the architects of this plan are happy today to talk about how it worked — how Reagan launched his war on government back in the 1970s, how a group of well-funded think tanks developed plans, and political consultants took advantage of people’s fears (and the Democratic Party’s failures) to put those plans into action.

The movement really got off the ground in 1978 with the passage of Proposition 13.

Prop. 13 emerged from a state in the middle of a massive growth spurt and a heated political cauldron of money, race, and Legislative failure. Howard Jarvis, a Republican landlord lobbyist who hated taxes, hated government, hated public schools, and disdained most Californians — "63 percent of [public school] graduates are illiterate" and would have no need for public libraries, he once quipped — took advantage of a gaping hole in political leadership and set off a movement that would cripple the United States of America.

The measure marked the final, fatal end in California of the era known as the ’60s — a period when the left was ascendant, when taxes on the wealthy funded education, infrastructure and programs for inner cities, and when economic and cultural liberalization seemed to be spreading across the nation.

Rising property values, driven by rapid population growth, were driving up property taxes — and the problem was real. Long-time residents, particularly people on fixed incomes, saw their taxes rise so high they couldn’t afford to stay in their homes. The Legislature could have addressed that (with, say, a split-roll measure that taxed residential and commercial property at different rates) but utterly failed to move on the crisis.

A series of assessor’s office scandals didn’t help, either. And, at the same time, the California Supreme Court ruled that rich school districts had to share revenue with poor districts, infuriating wealthy white property owners.

Jarvis and his partner Paul Gann circulated petitions to roll back property taxes and make it almost impossible to raise taxes in the future. It passed with 65 percent of the vote.

Of course, big businesses (particularly utilities) were the big winners. As the Guardian pointed out on June 1, 1978, the top five utilities in California alone (including Pacific Gas and Electric Co.) would gain billions from the tax cuts.

But beneath it all was a simmering discontent with government — something Jarvis had set afire and would later be used by Ronald Reagan and the right-wing operatives who backed him to undermine the New Deal, the social safety net, and the basic social contract in America. The antitax folks played to white people who didn’t want to see their money going to minorities, to the middle-class folks who thought (thanks to the assessor scandals) their tax money was being wasted by corruption — and to a lot of younger people coming out of the 1960s who had learned from Vietnam, COINTELPRO, and Watergate not to trust government.

The Bay Guardian opposed the measure strongly: "Most analyses indicate that without replacement taxes, hundreds of thousands of California public servants would be thrown out of work (which is exactly what Howard Jarvis intends) … " a May 18, 1978 editorial noted. "Vote for Prop. 13 only if you favor decreased government services (including cutbacks in everything from libraries to schools to street-cleaning crews and possibly police and fire departments) and are fond of half-baked measures that favor the rich."

Prop. 13 set off a national movement to cut taxes — and riding that wave, Reagan was elected president in 1980. He immediately set about attempting to slash taxes on big business and the wealthiest Americans, and eliminate environmental, workplace safety, and employment regulations.

You can see the results in California — and across the nation. The very strategies that emerged in this state and that the right has supported over the years have come very close to destroying the United States economy, leaving millions out of work — while the gap between the rich and the poor has risen to unsustainable levels.

Part of the reason this national attack on government and the public sector worked was the failure of Democrats to recognize that corruption matters. It was no small wonder that Californians were losing faith in government — in the 1970s and 1980s, the state Legislature, under the Democratic control of Speaker Willie Brown, was awash in sleaze, paralyzed by lobbyist influence and campaign money. Yet leading Democrats, fearful of Brown’s power, did little to reign in the appalling corruption.

In fact, when Brown became mayor of San Francisco, the entire Democratic Party, from the president of the United States on down, seemed to treat him as royalty — despite the fact that he was selling the city to every developer and corporate lobbyist who waved money under his nose. When taxpayers knew that a large part of their money was going to fund juicy jobs for Brown’s cronies and pet projects, it was hard to argue for higher taxes.

And it was the Democratic Party leadership in San Francisco who presided over two of the greatest examples of privatization of public resources in modern history: the Presidio and the Raker Act. Rep. Nancy Pelosi was the author of the bill that, for the first time, turned a national park over to the private sector — and hardly a Democratic leader in the city dared to lift a finger in opposition. And for decades — since the Guardian first broke the story in 1969 — the city’s Democratic power brokers have bowed and genuflected to PG&E and allowed the private utility to control the local electric grid and block implantation of the federal law that mandates public power for San Francisco.

And now PG&E wants to pull off one of the greatest feats of privatization in American history. The company has launched a ballot initiative that would wipe out any further attempts at public power in California, essentially guaranteeing that private companies, not the public sector, control the vast, critical resource of electric power in this state.

It’s the latest big battle between two divergent visions of America — and this time, the folks who have done so much damage to this state and this nation can’t be allowed to win. In fact, maybe the campaign against PG&E can be the turning point, the time when California realizes that privatization, attacks on the public sector, tax cuts for the rich, and political sleaze are a formula for disaster.

Events listings

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Events listings are compiled by Paula Connelly. Submit items for the listings at listings@sfbg.com.

WEDNESDAY 21

Distribution Workshop Artists’ Television Access, 992 Valencia, SF; festival@atasite.org. 7:30pm, free. Gain insight into the world of experimental film exhibition and distribution at this workshop and panel discussion featuring Joel Bachar from Microcinema International, filmmaker Jonathan Marlow from SFcinemateque, filmmaker Maia Carpenter from Canyon Cinema, filmmaker Craig Baldwin from Other Cinema, and associate editor and producer of Wholphin, Emily Doe.

Root Division Auction Root Division, 3175 17th St., SF; (415) 863-7668. 7:30pm, $35. Support artists and arts education at this community auction and benefit for local emerging artists and Root Division’s after school art program for Bay Area youth.

FRIDAY 23

Art in Storefronts 989 Market, SF; www.sfartscommission.org/storefronts. 5pm, free. Enjoy live music and pick up a map at the opening party for the Art in Storefronts program, where participating storefronts along central Market and Taylor streets will display original window installations done by San Francisco artists.

Crush It! The Booksmith, 1644 Haight, SF; (415) 863-8688. 6pm; $22, includes book. Meet Gary Vaynerchuk, host of the popular daily webcast The Thunder Show on tv.winelibrary.com, and get a copy of his new book Crush It! Why now is the time to cash in on your passion, a guide on how to turn your interests into businesses.

Haunted Haight Walking Tour Starts in front of Coffee to the People, 1206 Masonic, SF; (415) 863-1416. Fri., Sat., and Sun throughout October, 7pm; $20 advanced tickets required. Discover neighborhood spirits and hunt ghosts with a real paranormal researcher on this haunted tour which includes chances to win spooky prizes and a guidebook.

Leon Panetta Intercontinental Mark Hopkins, 999 California, SF; (415) 869-5930. 11am, $30. Hear CIA director and California native Leon Panetta discuss the current challenges facing national security. Attendees may be subject to search.

SATURDAY 24

BYOQ Music Concourse, Golden Gate Park, 55 Hagiwara Tea Garden Drive, SF; www.byoq.org. Noon, free. Come dance and play at the Bring Your Own Queer music and arts festival featuring bands, DJs, performances, art, fashion, and more.

Passport 2009 Mission Playground, Valencia between 19th and 20th St., SF; (415) 554-6080. Noon, $25 for booklet. Pick up a map and purchase a "passport" at Mission Playground and begin your adventure to various locations around the Mission to collect artist-made stamps that will personalize your Passport 2009 journey.

Save City College Sale Parking area of the Balboa Reservoir across from the San Francisco City College Ocean Campus Science Hall, 50 Phelan, SF; www.ccsf.edu/saveccsf. 9am-2pm, free. Help restore canceled classes at the City College of San Francisco for the Spring 2010 semester at this Save City College garage sale and flea market.

Opera Costume Sale San Francisco Opera Scene Shop, 800 Indiana, SF; sfopera.com. Sat. 11am-5pm, Sun. 11am-4pm; free. Get a last minute Halloween costume at the San Francisco Opera’s warehouse sale featuring hats, masks, fabrics, shoes, and handmade costumes for women, men, and children.

Potrero Hill History Night International Studies Academy, 655 De Haro, SF; (415) 863-0784. 5:30pm; free program, $6 for BBQ. Enjoy BBQ from Potrero Hill restaurants and music by the Apollo Jazz Group, followed by a performance by the I.S.A. Community Choir, and ending with interviews of unique long-time residents.

Walk for Farm Animals Ferry Market Plaza, meet behind the Vallicourt Fountain in Justin Herman Plaza, SF; 607-583-2225. Noon, $20. Help expand awareness of the unnecessary suffering that farm animals endure and help raise funds for Farm Sanctuary, a farm animal rescue, education, and advocacy organization.

BAY AREA

Exotic Erotic Ball Cow Palace 2600 Geneva, Daly City; (415) 567-BALL. 8pm, $79. Attend the 30th anniversary of the Exotic Erotic Ball, a lingerie, fetish, and masquerade celebration of human sexuality and freedom of expression featuring live music, DJs, and costume contests.

SUNDAY 25

BAY AREA

Sister of Fire Awards Oakland Asian Cultural Center, 388 9th St., Oak; (510) 444-2700. 11am, $50-5,000. Help honor four remarkable women: Civil rights and immigration advocate Banafsheh Akhlaghi, Colombian indigenous rights advocate Ana Maria Murillo of Mujer U’wa, employment and labor rights advocate and author Lora Jo Foo and Tirien Steinbach of the East Bay Community Law Center. Featuring brunch and live music.

MONDAY 26

Ghosts of City Hall SF City Hall, meet at South Light Court, through Polk street entrance, 1 Dr. Carlton B. Goodlett Place, SF; (415) 557-4266. 6:30pm, free. Hear stories of disinterred remains, assassinations, and other ghostly lore, like the little-known fact that a cemetery once covered Civic Center. Allow time for security check.

H1N1, round two

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news@sfbg.com

The H1N1 virus has already taken a deadly toll in San Francisco, and is expected to hit young people harder than any other group this fall, San Francisco public health officials warned.

Although the virus, also known as swine flu, is reportedly no more serious than conventional strains of flu, health officials told the Guardian that the number of young patients contracting the illness could be significantly higher due to a lack of partial immunity against the strain.

"In terms of the severity of the illness, we are not seeing a difference at all between normal and H1N1 swine flu," said Susan Fernyak, director of communicable disease control and prevention at the San Francisco Department of Public Health. "Yet while a lot of people have partial immunity to seasonal influenza, most people have no immunity from this virus.

"It might not have a higher transmission rate or be any more severe, but we are predicting more illness in the community," she added.

According to Fernyak, vaccinations will soon become available for "high-risk individuals." These include pregnant women, health care workers, people between 25 and 64 with underlying chronic health disorders, and everyone between the ages of 6 months and 24 years.

In late August, the Castro District community was left in shock when 41-year-old Doug Murphy, co-owner of Moby Dick and the recently opened Blackbird bars, died after contracting the H1N1 virus.

Blackbird co-owner Shawn Vergara spent most of his working life with Murphy and shared the same birthday (Aug. 3) with his friend. He said the community was left speechless at the loss of such a prominent and important member.

"It is a tragic loss for us here at Blackbird, and we are suffering terribly from the death of our friend," Vergara said. "We thought he had a cold and had absolutely no idea how serious it was. People should be careful and just use good common sense when taking precautions from this virus."

Although people over 65 are usually the ones who require hospitalization or die from conventional strains of flu, younger people have been most affected by the H1N1 virus, local doctors said. "The difference with this virus is that people who are over 65 are underrepresented in the number of people getting sick, going to hospital, and dying," said Dr. Lisa Winston, an epidemiologist at San Francisco General Hospital.

Experts believe there might be some preexisting immunity among the older age groups, she added. Although initial data from Australia suggests people will be immune from the virus within 10 days of taking the vaccine, Winston is still concerned about the impact H1N1 will have within the community.

"Hopefully we can make the impact less if we get a lot of the vaccine and distribute it properly," Winston said. "But it could still impact a lot of areas, from schools to employment, and place a severe burden on the healthcare system.

"We are still concerned that even if we only have a small number of people having bad outcomes from the virus, there could still be a substantial number in hospitals," she said. "We know there is still some H1N1 circuutf8g and expect a peak, but we are not sure when it’s going to be. There is anxiety around it, and a lot of that is appropriate."

According to Winston, two-thirds of the people who have been hospitalized and died from H1N1 have had underlying medical conditions. Unlike with seasonal flu, those who are morbidly obese also have been highlighted as being possible high-risk patients.

Avalos tries to halt pending evictions of low-income families

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By Rebecca Bowe

The toll that the economy is taking on low-income families was painfully apparent at yesterday’s Land Use and Economic Development Committee hearing, when single mothers with weary eyes asked city supervisors to help them stay in their homes.

The hearing was being held to discuss Sup. John Avalos’ proposed legislation to extend a rental-subsidy program administered by the city’s Human Services Agency (HSA) from two years to a maximum of five years. “We have a recession that’s pretty deep, and it is affecting a lot of families in a pretty hard way,” Avalos said. “Families, especially low-income families, are finding it more and more difficult to maintain their employment.”

With unemployment soaring, and many of the people in this program facing challenges such as having a lack of marketable skills, health problems, or language barriers, work prospects are dwindling. Many of the people who testified during public comment said that they were within days of losing their rental subsidies.

“I’m scared to wind up out on the street with my kids,” a woman who spoke in Spanish said via a translator. Many people who enrolled in the program in 2007 have received letters telling them that the city can no longer provide the subsidy, because they’ve reached the program time limit. A phone number for a homeless shelter was listed among the suggested alternatives in the letters, but the shelter has a six-month waiting list. Meanwhile, there are an estimated 17,000 people on the wait-list for public housing in the city.

Throughout the public hearing, small children could be heard crying in the background.

The inside outsider

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news@sfbg.com

A private-sector engineering and construction consultant has worked for years out of the San Francisco Department of Public Works (DPW) offices for free, using public resources and having inside access to top department officials, a status gained through a questionable competitive bidding process, a Guardian investigation has revealed.

Andrew Petreas, senior project manager for Environmental and Construction Solutions, Inc. (ECS), which has done contract work for DPW since 2004, has a city e-mail address. Petreas and his assistant both work on the fourth floor of DPW’s Bureau of Construction Management (BCM) building on Mission Street, in close proximity to bureau manager Donald Eng.

According to documents obtained by the Guardian earlier this year, ECS is providing construction and consultation services for various DPW projects, including repairs to the building where he works, trying to bring it in line with the city’s Green Building Ordinance, a project that is still going three months after its scheduled completion date of June 2009.

Because of the city’s competitive bidding process for using outside consultants on DPW projects — such as construction, repairs, and construction management on all city-owned buildings and maintenance of city streets and sewers — Petreas’ inside access raises questions of fairness among competing bidders and could pose a conflict of interest. DPW officials confirm the working arrangement, but deny that there’s anything improper about it.

DPW spokesperson Christine Falvey told us that Petreas’ occupancy is necessary to "improve the flow of communication between staff and consultants" and "deliver the project more efficiently." She also said Petreas will vacate the premises once his contract has expired. But insider sources and department documents indicate that Petreas has been in the department for many years, beginning as an employee under Don Todd Associates, which first began consulting for DPW in the early 1990s. And because of questionable contract extensions, there seems to be no end in sight for the department’s relationship with Petreas or his great deal on office space.

No other contractor appears to receive this kind of advantage, and all are subject to the same competitive bidding process for obtaining contracts. City Attorney’s Office spokesperson Matt Dorsey told the Guardian that "it makes sense in some cases to co-locate," but he couldn’t provide specific guidelines that regulate such arrangements.

When the Guardian requested all correspondence directed to and from Petreas’ city e-mail account, we were given e-mails dating only as far back as July 2008. We were further stonewalled by DPW when we asked how long Petreas has had a working relationship with the department.

Frank Lee, executive assistant to the director of the DPW, told us via e-mail: "I do not know the exact length of time that Andrew has worked for our department, but the e-mails that were forwarded to you were the only e-mails that we currently possess." He further told us that five e-mails were withheld in accordance to California Evidence Code Section 1152, which essentially states that public records can be withheld if it contains information about a money dispute between the city and a contractor. Lee would not say if the disputing contractor was Petreas or his firm, but did tell us that the matter is in litigation and the content is about "litigation strategies."

Earlier this year, ECS completed work on the department’s Materials Testing Lab, a project that initially began in March 2008 with a two-month timeline, but was given a 15-month extension. The firm also has been contracted to train DPW staff to estimate the cost of DPW projects, a contract worth $102,000, which is just below the $114,000 threshold for inviting competing bidders.

The documents also show that in the 2007-08 fiscal year, the department funneled additional money to ECS on top of its initial contract amount for "multidisciplinary construction management services" — essentailly retainer services — when other contractors on retainer had not yet fulfilled their contracted amount. ECS received an additional $500,000 on top of its contracted $1 million when the other contracted consultants (AGS, Inc., CPM/TMI Joint Venture, and PGH Wong Engineering, Inc.) had spent less than 50 percent of its $1 million contracted amount.

It’s not that ECS is better qualified or cheaper than these other private consultants. Consulting firms for the four open retainer slots are selected by the city’s Human Rights Commission for a two-year period through a competitive request for proposals (RFP) bidding process. For the last two periods, the commission ranked ECS in third place; before that, it came in second, but got a contract anyway.

Yet Petreas continues to be the only consultant who enjoys city e-mail privileges, not to mention a rent-free, roomy office in the city-owned building, with a view from the fourth floor. But if fairness among competing private contractors is an issue, the other contenders aren’t complaining, perhaps out of fear of not being awarded future contracts by DPW or other city agencies.

When asked whether the RFP process was even-handed and if Petreas’ insider status gives him an advantage, Jack Wang, principal engineer for AGS, Inc., hesitated to speak with us, saying that he didn’t want to get in trouble and that he "can’t comment on undue influence." He also told us that Petreas’ augmented contract amount and time extensions were "not enough for me to be alarmed about." He later added that "the industry is small. It’s very competitive."

When the Guardian took a look at all contract agreements between the department and ECS, as well as with Don Todd Associates, we discovered an employment gap that coincided with public scrutiny of the arrangement. Shortly after a September 1999 article by Peter Byrne ("It Ate City Hall") in SF Weekly reporting that Don Todd Associates had been paid $6 million over the course of nine years, some of it in apparent violation of city policies, its contract agreement ended and was never renewed or extended. But Petreas reemerged in 2004 under ECS, where he and his wife are the current owners.

The department offered no explanation for Petreas’ ongoing good fortune or his relationship with Eng, who did not return calls from the Guardian. Instead it diverted inquiries to public information officers. Several attempts were made to contact Petreas and other ECS representatives, but our calls were not returned.

So is it fair to say that there are no guidelines or oversight for the length of time a private consultant may provide services to the city and that it is wholly up to the discretion of the department manager? When we brought up this opportunity for cronyism and corruption — a big loophole in city labor law — to Deputy City Controller Monique Zmuda, she told us that "there’s no prohibition on the city contracting with one entity for a long time."

Earlier this year, ECS completed yet another round of contract negotiations with the city and signed a new master agreement for multidisciplinary services for the next five years, in which it will be paid out $1 million for as-needed services.

Flesh tones

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markeb@sfbg.com

Like a cold, wet pinky, porn has truly inserted itself into every facet of our lives — even our nightlife. Gay porn, especially, is big business in the Bay, and besides the endless stream of between-flicks go-go boys this provides many mainstream gay clubs and a host of porn-themed parties, most featuring DJ Pornstar, it also draws a lot of international hopefuls to our fair shores, maintaining some diversity on the homoclub scene. You wouldn’t believe the amount of Swiss buttboys I’ve met at the disco, child.

But what about the music of gay porn? Has it moved beyond the stereotypical boom-chaka-wahow-wahow to reflect our hip-hop-infused, electronic reality? I recently talked via hot pink iPhone with The minor9 (www.theminor9.com), a young production duo who’ve been working with Raging Stallion for the past few months, helping to infuse that megastudio’s soundtracks with a little contemporary flavor, from the neo-tango trappings of the forthcoming Hombre to the trip-hop trimmings of shoe-and-weed fetish flick High Tops, which features a sampled recipe for marmalade(!).

Minor9 members Marcus and Chris stepped into the giant shoes of legend JD Slater, a cofounder of Raging Stallion whose soundtrack work helped bring rock, ambient, and industrial sounds into the porn mainstream, and who recently retired to concentrate on his own music. "It’s amazing the amount of opportunity composing for porn provides," says Marcus. "Obviously we’re not out to make a big artistic statement — the director tells us his vision and we do our best to match it in the background. So no grand chord changes or cymbal crescendos at the climax. But in terms of creative outlets, you couldn’t ask for more."

"My greatest triumph was slipping some bassoon into a scene," adds Chris. The local duo share a past as independent musicians and combine live instrumentation with software hijinks to set the right backseat blow-job mood. Chris and Marcus asked me not to use their last names to avoid future employment kafuffles. So, is there still a porn stigma?

"Porn’s such a fact of life now, and my mom said, ‘That’s great!" when I told her about my new job," says Marcus. "But you never know." Chris chimes in, "Let’s put it this way. I used to be a graduate student in math. Talk about stopping a conversation dead. Now I tell people what I do and suddenly I’m the life of the party."

—————

BEARRACUDA MAGNUM

Sweaty gay leather bears packed in hairy shoulder-to-shoulder, grunting to live sets by dark duo Ejector and drag tragedy Christeene, plus electro-pop DJ Francisco Guerra. Fri/25, $10. DNA Lounge, 375 11th St., SF. www.bearracuda.com

BLOWOFF

Another hairy bear woof attack, this time on the rock remix tip, with indie hero DJs Bob Mould and Rich Morel at the first anniversary of this too-popular party. Sat/26, 10 p.m., $15. Slim’s, 333 11th St., SF. www.slims-sf.com

SISSY FIT

"Rock ‘n roll, cheap bear, and sloppy dick" brought to us by the queer punk Trans Am boys. DJs Dirty Knees and Pickle Surprise help usher in the mosh madness. Sat/26, 10 p.m., $6. Sub Mission, 2183 Mission, SF. www.myspace.com/transamtheclub

SS TRANNYSHACK

What’s better than nutso drag? Nutso drag on a boat. Try to stay seaworthy at this swingin’ who’s-who with Heklina, Dirty Sanchez, DJ Juanita More! and more. Sat/29, 8:30 p.m., $45 advance. Pier 41, SF. www.trannyshack.com

Crunch time

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sarah@sfbg.com

The proposal by city officials and Lennar Corp. to build more than 10,000 new housing units at Hunters Point Shipyard/Candlestick Point is entering a critical phase, particularly for Bayview-Hunters Point residents who want greater oversight and scrutiny of the project.

Candidates are lining up to replace termed-out District 10 Sup. Sophie Maxwell next year; the project’s draft environmental impact report will be released, considered for approval and potentially challenged; and Lennar officials will seek to get the final development agreement with the city signed before Mayor Gavin Newsom leaves office in 2011, or earlier.

The 770-acre redevelopment plan, which the Mayor’s Office is touting as a shining example of a public-private partnership, has come under repeated attack from community advocates after Lennar’s failures to monitor and control toxic asbestos dust at the shipyard. The crash of the housing market and plunge in the company’s stock price also triggered concerns about the project.

And in light of the U.S. Navy’s recent decision to dissolve the Hunters Point Shipyard Restoration Advisory Board (RAB), the community is concerned that decisions about radiologically-affected dumps and the shipyard’s early transfer from the Navy to the city could occur without important public oversight.

Another aspect of the project — a proposal to build condos on 42 acres of Candlestick Point State Recreation Area — was criticized by the Sierra Club, Arc Ecology, and Friends of Candlestick Park. Lennar argued it was necessary for the project to pencil out and this sale of state land was to be authorized by Senate Bill 792, sponsored by Sen. Mark Leno.

In August, Leno secured the neutrality of the environmental groups and the support of the California Assembly (but not Assembly Member Tom Ammiano, the lone dissenting vote) for an amended version of his bill, arguing that selling 23 acres for $50 million would spare the rest of Candlestick Point SRA from being closed by budget cuts. The legislation now awaits Gov. Arnold Schwarzenegger’s signature.

Now, with the project’s EIR due to be released Sept. 28, people have the chance to register concerns about plans for such a massive development project, which includes condos on the Bayview’s only major park and a controversial bridge over Yosemite Slough.

On Sept. 15, community members packed the Board of Supervisors’ meeting to demand an investigation into their concerns, which also include the apparent inability of Newsom’s African American Out Migration task force to issue its overdue final report about the ongoing exodus of the city’s black population, which this project could exacerbate.

Sup. John Avalos told us he is now gathering information on the issue and hopes to schedule Land Use Committee hearings on the shipyard cleanup and Lennar’s economic health. "The documentation gives real strength and power to the community’s contentions," Avalos said.

He also noted that Maxwell is scheduling a hearing into the dissolution of the RAB, while Sup. Ross Mirkarimi is resurrecting legislation that seeks to put the San Francisco Redevelopment Authority under the control of the Board of Supervisors.

Arc Ecology director Saul Bloom said his group will study the project’s EIR to see if it accurately assesses the effects of Lennar’s development.

"We are concerned about the impact of truck traffic, the bridge over Yosemite Slough, and whether the transportation plan is going to effectively put the Bayview between three freeways," Bloom said. "But we’re going to be even-handed. If the EIR does a good job, we plan to say so."

Jaron Browne of the Bayview advocacy group POWER (People Organized to Win Employment Rights) told the Guardian that her group wants the shipyard cleaned up and the community respected.

"This is not just a Bayview issue," Browne said. "The whole city will be affected by the decisions that take place in terms of the future of affordable housing and environmental protection."

Mind your own

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There’s no filmmaker working today who more accurately captures awkward moments than Andrew Bujalski. Funny Ha Ha (2002), Mutual Appreciation (2005), and his new Beeswax unfold like fly-on-the-wall documentaries (though they’re all scripted by Bujalski), following ordinary folks doing everyday things: toiling at temp jobs, crushing on a friend’s significant other, bullshitting around the kitchen table, and generally trying to negotiate the dramas of life that are both small and life-changing.

In 2005, Bujalski told me that he bristles every time he hears his films called "Cassavetes-esque." I suspect he’s also weary of the term "mumblecore," though he’s used it in interviews (and, according to Wikipedia, it was coined by a sound editor who’d worked with Bujalski.) But his films are at the forefront of the genre (see also: Humpday, 2005’s The Puffy Chair), and they’ve consistently defined its characteristics, with amateur actors shot using bare-bones techniques in naturalistic settings. Funny Ha Ha, about a recent college grad trying to figure out what to with her life, stayed in theaters for years, popping up in San Francisco more than once. Mutual Appreciation, a black-and-white look at a Brooklyn musician trying, uh, to figure out what to do with his life, opened locally but overall had less exposure.

Beeswax will surely lure Bujalski fans, but even those who think they hate mumblecore won’t be disappointed by this tale. It’s his best and most mature work to date, focusing on Austin, Texas twins Jeannie (Tilly Hatcher) and Lauren (Maggie Hatcher). Bujalski’s in his 30s now, and his characters — while still facing uncertain futures — have slightly more adult concerns. Vintage shop co-owner Jeannie (whose use of a wheelchair is presented matter-of-factly) worries that her aloof business partner is plotting a power grab, a conflict that unfolds alongside mini-crises, like cash register tape jamming or an employee having an emotional meltdown.

Seeking legal advice, she reignites her relationship with Merrill (Alex Karpovsky, playing the Bujalski role since the director doesn’t act in this one), who’s charming though prone to making accidentally rude remarks. Meanwhile, Lauren’s inability to find steady employment leads her to consider taking a spur-of-the-moment teaching job — in Kenya. As they fumble toward decisions emotional and practical, Beeswax simply steps back and observes. And as with all of Bujalski’s films, it’s hard not to get drawn in.

BEESWAX opens Fri/11 in Bay Area theaters.

Editor’s Notes

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Tredmond@sfbg.com

The governor of California loves to talk about the state "living within its means." That, of course, means cutting education funding, closing state parks, stealing money from cities, wiping out hundreds of social programs, and never, ever, raising any taxes.

He has a different line on water.

The state’s economy is in a severe downturn, but California itself is far from broke. This is still a wealthy state. Between the big businesses and the rich individuals, there’s actually plenty of money in the overall economy to pay for schools and colleges and parks and health care. Defining our "means" as a level of spending that’s possible without raising taxes is a purely political decision that has nothing to do with economic reality. In fact, the California economy would be a lot better off today if Gov. Schwarzenegger hadn’t cut the vehicle license fee the day he took office. (Remember: public-sector jobs are just as legitimate a source of employment as private-sector jobs, and government spending is an excellent way to stimulate private growth.)

Freshwater, on the other hand, really is a finite resource. There’s only a certain amount of rain that falls on the state every year, only a certain amount of snowpack that melts in the spring, only a limited amount that can be stored in reservoirs. You can’t raise new water the way you can raise new revenue; even building new dams just takes water that would have gone downstream and holds it for another purpose.

The state’s freshwater has to meet a lot of demands. Farmers rely on it to irrigate crops — some of them crazy, unsustainable crops — in what is naturally a dry Serengeti. Giant cities and suburbs in the southern part of the state rely on it to fill swimming pools and water lawns. Most of the 38 million people who live in this state rely on precipitation runoff for their drinking water.

And if too much water from Northern California gets diverted before it reaches the Sacramento-San Joaquin Delta, then the complex, fragile ecosystem of the delta and the bay gets badly, maybe irreparably, damaged. And that has wide-reaching consequences (including the collapse of fisheries worth $250 million a year).

And yet, as Rebecca Bowe points out in this week’s cover story, the governor refuses to live within our hydrologic means.

It’s insane what’s been happening with the state’s water. Every year the Department of Water Resources offers to sell more water than the state actually has. In the severe drought of the early 1990s, water diversions from the delta were at record levels. In the current drought, diversions remain high. And that, the numbers suggest, is directly affecting fishing stocks. At this rate, there won’t be any salmon left in the delta in a few years. And that’s before the full impacts of global warming (and the likely decline in freshwater) play out.

Schwarzenegger’s solution: build more dams and a new canal to take more fresh water away from the delta.

The state Legislature is wrestling with a new water policy, and five bills are making the rounds. Some areas are getting desperate and trying what not long ago were considered nutty ideas — Marin County, for example, now wants to build a desalination plant, an expensive and energy-intensive way to get freshwater from the bay.

What nobody seems to want to say is that California, particularly the big agricultural operations in the Central Valley, simply waste too much water. The conservatives in the state capitol don’t believe in conservation.

Any serious Legislative plan has to start with a few fundamental facts. Freshwater flowing into the delta and out through the bay is not a wasted resource; the delta needs a lot more water than it’s currently getting to survive as an ecosystem. If that means the big water districts have to tell their clients to cut back on water use — using proven conservation methods and possibly switching to less water-intensive crops — then that’s a reality we’re going to have to live with. And more dams, canals, and pumping projects will just shift the problems from one part of the state to another.

California can survive on the water it has — if we stop the insanity.

Editor’s Notes

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tredmond@sfbg.com

Nobody really thinks the state budget deal is going to hold, and nobody really thinks San Francisco’s budget deficit is actually closed. So while the Legislature is in recess and the supervisors are moving on to other things, it’s worth thinking about what the next few months will bring. It won’t be pretty.

Paul Hogarth, writing for the online publication BeyondChron, pointed out Aug. 6 that San Francisco will lose more money due to state budget cuts than the city will gain from federal stimulus spending. The numbers are complicated and fluid (San Francisco will lose $100 million that the state will "borrow," but the city can immediately go to the bond market and borrow against the state debt — with any luck at the same interest rate the state will pay the city, so that should be a wash. Should — unless the lenders don’t want to gamble on the state’s debt.) But no matter how you slice it, San Francisco will be out something on the order of $18 million in state cuts alone.

There’s also the fact that nobody knows what the economy will do over the next six months. If employment doesn’t pick up, and consumer sales don’t pick up, and enough businesses get away with demanding property tax reductions, the revenue numbers projected by the Newsom administration will be wrong and things will be even worse. Sup. Ross Mirkarimi, who’s on the Budget Committee, told me he’s expecting at least $100 million in red ink for next year’s budget, and some of that will start to show up this fall.

I can’t even imagine what the 2010-11 budget will look like. By the time budget hearings begin next June, Gavin Newsom will either have won the Democratic primary for governor, and will have entirely checked out of City Hall, or he will have lost and will be angry, bitter, and vengeful.

We were mildly critical of Budget Committee Chair John Avalos this summer; he cut a deal with Newsom that requires the supervisors to believe that the mayor will work with them on any midyear cuts. The problem is that Newsom can’t be trusted. He’s already broken parts of this budget deal. So when, as is almost certain, he breaks his promise to work with the board on midyear cuts, the supervisors will have to take a much more aggressive stance than they did this summer.

Newsom will be in the middle of a heated race for governor — he won’t want to cut cops or firefighters, and he won’t even talk about taxes. (Although a recent Gallup Poll shows that only 46 percent of Americans think their taxes are too high, the lowest number to hold that view since 1961.)

It’s going to be war, and the progressives on the board need to be ready for it — or they’re going to get rolled, again. *

Need a job? Gentlemens clubs to the rescue

2

jobfairflyer0709.jpg

For those currently on the hunt for gainful employment, 11 of San Francisco’s gentlemens clubs — including The Gold Club, Hustler Club, Broadway Showgirls and Centerfolds — are having a job fair next Monday, July 20, at the Holiday Inn at Fisherman’s Wharf (1300 Columbus Ave). The job fair goes from noon to 5PM. One could do worse than to earn between $100 and $400 a night in tips. Like, you could not have a job, or your passion could be blogging.

Pull press release after the jump.

In Mexico, the Dinosaurs return

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By John Ross

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MEXICO CITY (July 16th) — Nine years ago, on a sultry July morning, Mexicans woke up and discovered to their great amazement that the Dinosaur that had hunkered down at the foot of their beds for 71 years was gone. This July 6th, when Mexicans rose in the morning, the Dinosaur was back.

In the famous short poem by Augusto Monterroso, the Dinosaur is the PRI — the Institutional Revolutionary Party — once the longest-ruling political dynasty in the known universe that controlled the destiny of Mexicans from the cradle to the grave for seven interminable decades until it was dislodged from power by the right-wing PAN party in the July 2000 presidential elections. In its unslakable thirst for power, the PRI committed unspeakable crimes against the Mexican peoples, stealing elections from the most humble city hall to the presidential palace, jailing and torturing and executing those who stood in its way, and emptying out public treasuries in an unmatched kleptocracy that was a legend throughout Latin America, “the perfect dictatorship” Latin American novelist Mario Vargas Llosa once dubbed it (for which the PRI had him tossed out of the country).

“Have we Mexicans lost our memories and our minds?” asks Sylvia Insulza from behind the counter of her newspaper dispensary in the old quarter of the capital. Tears of frustration crystallize in the corners of her eyes.

The depth and breadth of the PRI victory July 5th is nothing short of stunning. From a distant third-place finish in the 2006 presidential fiasco in which the rightist PAN stole the election from Andres Manuel Lopez Obrador (AMLO) and his left-wing PRD party by .57% of the popular vote, the PRI (“proven experience and a new attitude” is its current campaign slogan) took 37% of the total ballots cast, nearly doubling its votes three years back, and taking control of congress for the first time since 1997. The once-upon-a-time ruling party’s alliance with the so-called Mexican Green Environmental Party (PVEM – see sidebar below “The Green PRI”) will give it 259 seats out of 500 in the lower house, an absolute majority. In nine out of 31 states, the PRI won every office up for grabs — federal congressional representatives, local congresses, and municipal officials, a “carro completo” or “full car” in the Institutionals’ curious lexicon.

The Dinosaurs also proved triumphant in five out of six governors’ races, winning two statehouses in which the PAN had resided for 12 years. Only in the northern border state of Sonora, where the PRI governor was seen as complicit in the tragic incineration of 48 babies in a Hermosillo day care center a month before the election, was the PAN able to squeeze out a victory in an election in which the PAN and PRI candidates were cousins.

Moreover, the PRI won cities like Naucalpan, an upper middle class Mexico City suburb the right-wingers have controlled since the 1980s, and the nation’s second city, Guadalajara, which the PAN has owned since 1995. In alliance with the Mexican Green Environmental Party, the PRI won its first elected office in Mexico City since 1994. Although the left PRD maintains control of the nation’s capital, the Party of the Aztec Sun does so by a greatly reduced margin. Whereas the PRD registered 51% of the vote in Mexico City in 2006, three years later it weighs in with just 29%.

But Sylvia’s tears of frustration may soon dry. Whether the Dinosaurs are really back or just staying overnight (in Jurassic time) is not yet clear. Mid-term elections are referendums on the sitting president and his administration’s management of the country and July 5th represented a crushing vote of no confidence in Felipe Calderon on whose watch the economy has tumbled into freefall — “growth” in 2009 will measure a negative 8%, the worst slide since the Great Depression of 1929-32. Calderon, who campaigned as the “President of Employment,” has presided over the loss of 2,000,000 jobs. The president’s ill-advised war on the drug cartels has soaked the country in blood — more than 12,000 lives have been lost — and fueled corruption and human rights abuses on the part of the military and the police. Calderon’s panic-driven handling of this spring’s Swine Flu “PAN-demic” kicked the bricks out from under the tourist industry, the nation’s third-largest source of dollars, and his arrogant imposition of candidates in the July 5th vote-taking angered and turned many in his own party against him.

No surrender, no retreat

0

rebeccab@sfbg.com

The dueling budget rallies that preceded the June 16 Board of Supervisors hearing on the city’s spending priorities officially ended the conciliatory approach offered by Mayor Gavin Newsom — a rhetorical political gambit that the Mayor’s Office never really put into practice.

The emotionally charged police and fire workers’ rally — where Police Officers Association President Gary Delagnes riled up the crowd by ridiculing supervisors as "idiots" and "carpetbaggers" — featured Newsom as the guest of honor at an event overseen by Eric Jaye, the political consultant running both the firefighters’ union budget offensive and Newsom’s gubernatorial campaign.

On a stage lined with American flags and burly public safety workers, Newsom condemned the progressive supervisor’s proposal to amend his budget over a blaring sound system. "They’re asking us to retreat," Newsom said, in full battle cry mode, "and we’re not going to do that."

Across the street, city employees from the Department of Public Health held a competing rally, flying a banner that read "No Cuts to Vital Services!" It was painfully obvious that in a squabble between city employees, the mayor was positioning himself on the side of well-paid, powerful union members who got raises instead of layoffs, rather than the public health workers and advocates for the poor whom Newsom’s budget cut the deepest.

But before progressive supervisors challenged Newsom’s proposed budget — which ignored the supervisors’ stated priorities, despite Newsom’s December pledge to work closely with the board on it — the rhetoric was quite different. "We work through our differences and ultimately try to look at the budget as apolitically as possible," Newsom said during a June 1 event unveiling his budget. "It’ll only happen by working together."

Six months earlier, when the mayor made a rare appearance at a Board of Supervisors meeting to announce the unprecedented budget shortfall of more than $500 million, he adopted a similar tone. "We have the capacity, the ingenuity and the spirit to solve this," Newsom told the board in December. "It’s going to take all of us working together. It’s in that spirit that I am here."

The mayor’s proposed budget has spurred outrage from poor people and progressive supervisors, who charge that his decision to cut critical services while simultaneously bolstering funding to the police and fire departments is morally repugnant.

Sups. John Avalos, David Campos, and David Chiu responded by passing an amendment in committee to slash $82 million from the public-safety budget in order to restore some of the cuts to public health and social services. After that move, the spirit of "working together" quickly eroded, and seemed to be replaced by the bare knuckles politics of fear and division.

After the rallies, which even spilled indoors and devolved into shouting matches between the two camps, supervisors finally got to work on the budget. And they didn’t ask Newsom to retreat, they just asked him to listen and work with them.

The $82 million dent in the public-safety budget was described as a symbolic gesture to get the mayor to take progressive concerns seriously. "For many of us, it was the only way we felt we could have a seat at the table — a seat that was real, where the discussion was going to be meaningful," Campos said.

"I do not think that this budget is bilateral. It is a unilateral budget," Chiu noted at a Budget and Finance Committee meeting.

This year’s budget battle is especially intense because of the unprecedented size of the deficit, as well as the dire economic conditions facing many San Franciscans. California’s unemployment rate climbed to 11.5 percent in May, and stood at an only slightly less miserable 9.1 percent in San Francisco, according to the state’s Employment Development Department.

Meanwhile, anecdotal evidence suggests that the number of San Franciscans in need of emergency food assistance, homeless services, and help with other basic necessities has spiked. Everyone seems to be feeling the pinch, but for the least fortunate, falling on hard times can mean relying on city-funded services for survival.

Against this dismal backdrop, big questions are emerging about the role of government. "The city’s budget," City Attorney Dennis Herrera noted at a recent hearing, "is correctly called the city’s most meaningful policy document. More than any other piece of legislation, it sets out the priorities that tangibly express the values of the City and County of San Francisco."

Sup. Ross Mirkarimi took this idea even farther at the budget hearing. "Aside from the politicking and any of the hyperbole, we [have to] do the best we possibly can for all the people of San Francisco," he said. "But in particular, the vulnerable classes, because what is also at stake is … the key question: Who’s this city for? And who gets to live here over the next 10 to 20 years, considering how cost-prohibitive it is to be in San Francisco?"

The budget battle is shaping up around some fundamental questions: is this budget going to protect the politically powerful while ignoring the thousands who are in danger of slipping through the cracks? Or will everyone be asked to make sacrifices to preserve the city’s safety net? And as these difficult decisions are hashed out, is the mayor going to sit down with the board to seek common ground?

A board hearing on the cuts to health services — which state law requires cities to hold when those cuts are deep — illustrated the divide with hours of testimony from the city’s most disadvantaged residents: those with mental health problems, seniors, SRO tenants, AIDS patients, and others.

"If we make the wrong decisions, it will mean that our homeless folks will be in ever-increasing numbers on the street. It means that folks with HIV will not receive the care they need. It will mean that kids will not have the after-school programs they need during their critical years. It will mean that our tenants will continue to live in substandard housing," Chiu summarized the testimony.

Avalos, the Budget Committee chair who has led the fight to alter Newsom’s budget priorities, has said repeatedly that cutting critical services does not work in San Francisco. And even as he proposed the amendment, he expressed a desire to reach a solution that everyone, not just progressives, would find palatable.

"We want to talk directly to the mayor, to have him meet us half-way, about how we can share the pain in this budget to ensure that we have a balance in equity on how we run the city government," Avalos noted as his committee began its detailed, tedious work on the budget. "We can do that across the hall here at City Hall, and we can do it across every district in San Francisco."

The Board approved the interim budget that more evenly shared the budget pain on a 7-3 vote, with Sups. Bevan Dufty, Carmen Chu, and Michela Alioto-Pier dissenting (Sup. Sean Elsbernd was absent because his wife was giving birth to their first child, but was also likely to dissent).

If Newsom chooses to veto the interim budget or the permanent one next month — which the board would need eight votes to override — San Francisco could be in for a protracted budget standoff, the least "apolitical" of all options. But for now, the political theater is yielding to the detailed, difficult work of the Budget and Finance Committee.

Progressive members of the committee have already signaled their intention to scrutinize city jobs with salaries of $100,000 or positions in each department that deal with public relations.

Among those highlighted in a budget analysts’ report is Newsom’s public relations team, a fleet of five helmed by a Director of Communications Nate Ballard, who pulls down $141,700 a year. Yet when the Guardian and others seek information from the office — for this story and many others — we are often stonewalled, ignored, or insulted.

During the budget hearings, the disproportionately high number of positions with six-figure salaries in the city’s police and fire departments also came under scrutiny. "What has worked in a lot of other agencies is you have employees who care deeply enough about the City and County of San Francisco that they are willing to give back in terms of salaries," Campos commented to Fire Chief Joanne Hayes-White during a budget hearing, referring to firefighters’ refusal to forgo raises.

Another looming question is whether new revenue measures will be included as part of the solution. While progressive supervisors continue to call for tax measures as a way to stave off the worst cuts to critical services, Newsom proudly proclaimed his budget’s lack of new taxes.

A press release posted on Newsom’s gubernatorial campaign Web site suggests that since raising revenues doesn’t fit with his bid for governor, it’s not likely to be entertained as a possibility. "Mayor Newsom crafted a balanced budget on time," a press release notes, "without any new general tax increases, without reducing public safety services."

It’s a stand that’s certain to yield more political clashes down the line.

"I don’t see how we can get out of this budget without bringing additional revenue into the system," Campos noted at the committee hearing. "Once people learn about the situation we are facing, they will understand the need for the city and county as a whole to contribute."

The price of normal

0

news@sfbg.com

With a 2010 state proposition on gay marriage in the works and a national gay rally on the Washington Mall being planned for October 10-11 of that year, it’s obvious that more and more of the LGBT community’s resources are being funneled into the battle for marriage equality, while other causes go begging.

Already gay marriage has become a black hole that is sucking untold amounts of money, time, and energy out of our community. In the 2008 election alone, gay marriage supporters raised $43.3 million to defeat Proposition 8, the anti-gay marriage initiative that California voters passed by 52 percent. It may be the biggest chunk of change the community has ever spent for a single fight.

A QUESTION OF PRIORITIES


I’m not against gay marriage. If queer couples want to be as miserable as straight ones, that’s their choice. Marriage is a failed institution. With a 54.8 percent divorce rate nationally and a 60 percent rate here in California, there’s no doubt in my mind that heterosexual "wedded bliss" is more of an oxymoron than a reality.

What’s troubling to me as a queer activist of almost 40 years (much of that time spent on economic justice work) is that, with the tremendous amount of homelessness, poverty, and unemployment in our community, we are spending so much dough on the fight to give a minority of folks — those who opt for tying the knot — rights and privileges that straight married folks have.

Sure, it’s unfair that married straights get tax breaks, not to mention the status of next-of-kin for hospital visits and medical decisions when one partner is ill, and queers don’t. Altogether, married couples have 1,400 benefits, both state and federal, that domestic partners and single people don’t enjoy. It’s a matter of simple justice that the playing field be leveled. Only a right-wing idiot could disagree with that. Now, if only we could fight to give everyone (including singles) those 1,400 benefits.

For me it’s a question of priorities. We are living in scary times. Unemployment is sky-high; millions are without healthcare, including children; foreclosures are robbing homeowners and tenants alike of their housing; and business collapses are leaving a lot of people out in the cold and unable to pay the rent or the mortgage.

DINKS NO MORE


The queer community is no better off.

It’s a popular misconception that queers have a lot of disposable income. The "double income, no kids" (DINK) myth was promoted in the 1980s by gay publishers who wanted to expand their advertising base and their profits. These days, to read many gay publications, you’d think that all queers are going on fabulous vacations and buying expensive clothes, jewelry, and electronic gizmos.

That myth was easily dispelled by a recent study, "Poverty in the Lesbian, Gay and Bisexual Community," published this March by the Williams Institute at UCLA. Like "Income Inflation: the myth of affluence among gay, lesbian, and bisexual Americans," the groundbreaking 1998 study by M.V. Lee Badgett of the Department of Economics at the University of Massachusetts at Amherst, the Williams report found that many members of our community aren’t shopping ’til they drop. They can barely afford to put food on the table.

Nationally, 24 percent of lesbians and bisexual women are poor compared to 19 percent of heterosexual women; 15 percent of gay and bisexual men are poor compared to 13 percent of heterosexual men.

Queers aren’t just low on cash — we’re homeless, too. A 2006 report, "Lesbian, Gay, Bisexual and Transgender Youth: An Epidemic of Homelessness" from the National Lesbian and Gay Task Force and the National Coalition on Homelessness, showed that 20 percent to 40 percent of the 1.6 million homeless youth in America identify as LGBT. In San Francisco, the number of queers in the homeless youth population (estimated at 4,000 by the Mayor’s Office) is "roughly 44 percent," according to Dr. Mike Toohey of the Homeless Youth Alliance in the Haight.

Brian Basinger of the AIDS Housing Alliance says that 40 percent of people with HIV/AIDS, in the city once acclaimed for its care of those with the disease, are either "unstably housed or are homeless." In the Castro, Basinger said, there are only "12 dedicated HOPWA beds" for people with the disease. HOPWA (Housing Opportunities for People with AIDS) is a federal voucher program for low-income people with AIDS that is similar to federal housing assistance program Section 8.

Certain members of our community don’t fare much better in the area of employment. A 2006 survey by the Guardian and the Transgender Law Center reported that 75 percent of transgender people are not employed full-time, and 59 percent make less than $15,299 a year. A mere 4 percent of respondents earned more than $61,200, the then-median income average for San Francisco.

Fifty-seven percent of trangendered people said they suffered employment discrimination, demonstrating the need for the inclusion of "gender identity" in the federal Employment Non-discrimination Act. Human Rights Campaign, a national gay organization, and out Congress member Barney Frank (D-Mass.) cut transgenders out of that legislation the last time it was up before Congress.

It could all get a whole lot worse.

AXING THE FUTURE


Gov. Arnold Schwarzenegger wants to lop at least $81 million from California’s AIDS budget, including money for AIDS drugs, leaving low-income people stranded without their medication. Senior services are also on his cutting block, including $230.8 million from in-home services and $117 million from adult health-care programs. (As we go to press, the state Legislature is working to restore the AIDS money to the budget.)

Mayor Gavin Newsom, in his proposed city budget cuts, is axing $128.4 million from public health and $15.9 million from human services. There’s no doubt these cuts in health and human services will severely affect people with AIDS, seniors, youth, the homeless, and others in our community who can least afford to pay for the city’s budget shortfall.

The millions spent on gay marriage in the past few years could have gone a long way in these lean times. It could have helped make the proposed queer senior housing project, Open House, a reality. With 88 units in the works at 55 Laguna St., the site of the old UC extension, it will be the only such housing for LGBT seniors in San Francisco.

The money also could have funded housing in the Castro for homeless queer youth or people with AIDS. It could have been used as seed money for a much-needed war against poverty in the LGBT community.

A DIFFERENT KIND OF LIBERATION


The queer movement hasn’t always been this obsessed about getting hitched. Forty years ago this week, drag queens and others fought back against the cops who were raiding a gay bar called the Stonewall Inn in New York City’s West Village. Three days of protests led to the creation of the Gay Liberation Front (GLF), a revolutionary group dedicated to the sexual liberation of all people. GLFers weren’t looking to walk down the aisle or form binary couples. In a desire to "abolish existing social institutions," as the NYC branch of GLF said in its statement of purpose, some GLFers explored polyamory (more than one relationship at a time).

That’s why I edited Smash the Church, Smash the State! The Early Years of Gay Liberation, just published by City Lights Books, a collection of writings by former GLF members and other gay liberationists. I wanted to commemorate the 40th anniversary of Stonewall and the birth of GLF with a reminder of who we were and what we did. After all these years, I still don’t want to head to the chapel to get married.

When it really comes down to it, gay marriage is a conservative issue. It’s about wanting to fit in, to be like everyone else. Beyond the important issues of tax breaks and next-of-kin status — and the fact that if any institution exists, it shouldn’t discriminate against queers — marriage is ultimately a means of normalizing binary queer relationships, especially for gay men who have always enjoyed the freedom to be promiscuous. It’s a way to try and rein in our libidos, though the prevalence of extramarital sex among straight couples — 50 percent for women, 60 percent for men, according to a recent issue of Journal of Couple and Relationship Therapy — shows that marriage doesn’t come with a chastity belt.

It also doesn’t come with any guarantees, as researchers discovered in Sweden, where queers were able to contract for same-sex partnerships from 1995 until recently, when full same-sex marriage was instituted. According to a study by the Institute for Marriage and Public Policy, Swedish queers have been divorcing in high numbers, like their straight counterparts, who have a divorce rate that’s just a little higher than the United States.

For queers in Sweden, that’s the price of being normal.

Tommi Avicolli Mecca, who has been a queer activist since he was involved with the Gay Liberation Front at Temple University in Philadelphia in the early 1970s, is editor of Smash the Church, Smash the State! The Early Years of Gay Liberation (City Lights Books).

Lennar’s shipyard: more toxic than you think

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news@sfbg.com

OPINION "So, what do you want us to do?"

That was the question from a staff member at the Bay Area Air Quality Management District (BAAQMD) after he passed along reports of Lennar Corp.’s latest repeated releases of toxic dust containing asbestos, arsenic, lead, and other metals into the air in Bayview-Hunters Point, one of the last remaining African American communities left in San Francisco.

After grudgingly levying more than $500,000 in fines against Lennar in 2008 for earlier brazen violations (after fierce community pressure), why is BAAQMD’s enforcement of clean-air standards against a notorious corporation on a dangerously toxic site still a negotiation?

After years of broken promises and half-hearted mitigation, the toxic partnership between the city and Lennar to develop the shipyard continues to threaten public resources and poison our communities in more ways than one.

In the last few months, with the help of the Mayor’s Office, Lennar is backing away from the promises it made in Proposition G. Instead of making 32 percent of its housing at the shipyard "affordable" to city residents (never mind that this definition of "affordable" is still well out of the reach of the great majority of Bayview residents), Lennar is now placing responsibility back on the city to build the affordable housing. As the Mayor’s Office prepares to use public money to subsidize Lennar’s broken promises, this revised arrangement blows a huge hole in the budget of the Mayor’s Office of Housing and threatens to destroy 30 years of efforts to create and preserve affordable housing elsewhere in the city.

As reported by Sarah Phelan last week ("Eliminating dissent," 6/17/09), state Sen. Mark Leno has legislation that seeks to trade 25 percent of Candlestick Point State Recreation Area for small strips on the shipyard so Lennar can build condos on the parkland (see "Selling the park" in this issue).

With the consent of City Hall, the Navy and Lennar continue to make deals in a backroom, with no public participation. The plan for development of the shipyard is getting even more toxic than you think, and its dangers threaten everyone in San Francisco.

That’s why a large coalition of grassroots organizations is joining forces for a community protest at the front gate of the Hunters Point Shipyard at 1 p.m. Tuesday, June 30. If the government won’t protect our communities from contamination and corporate greed, then we will do it ourselves.

For details, call Greenaction at (415) 248-5010 x107. *

Kelly is president of the Potrero Boosters Neighborhood Association. Schwartz is co-director of People Organized to Win Employment Rights (POWER). Harrison is a community organizer at Greenaction for Health and Environmental Justice. Brooks is the campaign coordinator for Our City.