Ethics Commission

Editorial: Don’t gut SF campaign law

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The U.S. Supreme Court, which has already ruled that corporations can spend all the money they want on political campaigns, dealt another huge blow to democracy in June when it struck down a campaign finance law in Arizona that was designed to level the playing field for candidates running against better-financed opponents.

The ruling has implications for San Francisco’s public finance law, and already the Ethics Commission has moved to amend — some would say gut — the ordinance. The supervisors also have to approve the changes, and they should move cautiously; there is much about the local law that can still be saved, and there are experts working on alternative models that could still work under the Arizona ruling.

The Arizona law gave public funds to candidates who agreed to limit personal spending to $500. The more privately financed opponents and independent expenditure (IE) committees spent on a candidate, the more public matching money the other candidates received.

The idea: if one rich candidate — or one candidate supported by deep-pocketed special interests — tried to dominate the election, the others would be given enough money to make things fair.

That’s the same motivation behind San Francisco’s law, which sets a spending limit for the mayoral and supervisorial races, provides matching funds for small contributions — and gives public money to candidates who are attacked by outside independent expenditure committees.

It’s possible that the current IE match won’t hold up to legal scrutiny under the Arizona decision. And already some of the city’s biggest downtown interests are threatening to sue to overturn the local ordinance. But there is much about the San Francisco law that will likely survive a court challenge.

Bob Stern, a campaign finance expert and president of the Center for Governmental Studies in Los Angeles, told us that he’s working on a new model law for cities like San Francisco. The Ethics Commission knew that when it voted July 11 to eliminate matching for IEs and to reduce the available pot of money.

Now the law comes to the Board of Supervisors, where eight votes are required to accept the Ethics Commission amendments. Good government advocates say the supervisors should do only what is clearly legally necessary: “The Ethics Commission should have used a scalpel, not a sledgehammer,” Oliver Luby, a former commission staffer, told us.

The November mayor’s race is a huge test for the city’s law; this will be the first time effective public financing will be in place for a citywide race, and the success of the ordinance will draw national attention. The supervisors should stop short of so badly amending it that it will lose all its teeth.

The board should hold public hearings and solicit input from local and national experts. The supervisors shouldn’t be intimidated by downtown lawsuits and consider only the most limited changes — after reviewing every possible alternative. 

 

 

 

Don’t gut SF campaign law

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The U.S. Supreme Court, which has already ruled that corporations can spend all the money they want on political campaigns, dealt another huge blow to democracy in June when it struck down a campaign finance law in Arizona that was designed to level the playing field for candidates running against better-financed opponents.

The ruling has implications for San Francisco’s public finance law, and already the Ethics Commission has moved to amend — some would say gut — the ordinance. The supervisors also have to approve the changes, and they should move cautiously; there is much about the local law that can still be saved, and there are experts working on alternative models that could still work under the Arizona ruling.

The Arizona law gave public funds to candidates who agreed to limit personal spending to $500. The more privately financed opponents and independent expenditure (IE) committees spent on a candidate, the more public matching money the other candidates received.

The idea: if one rich candidate — or one candidate supported by deep-pocketed special interests — tried to dominate the election, the others would be given enough money to make things fair.

That’s the same motivation behind San Francisco’s law, which sets a spending limit for the mayoral and supervisorial races, provides matching funds for small contributions — and gives public money to candidates who are attacked by outside independent expenditure committees.

It’s possible that the current IE match won’t hold up to legal scrutiny under the Arizona decision. And already some of the city’s biggest downtown interests are threatening to sue to overturn the local ordinance. But there is much about the San Francisco law that will likely survive a court challenge.

Bob Stern, a campaign finance expert and president of the Center for Governmental Studies in Los Angeles, told us that he’s working on a new model law for cities like San Francisco. The Ethics Commission knew that when it voted July 11 to eliminate matching for IEs and to reduce the available pot of money.

Now the law comes to the Board of Supervisors, where eight votes are required to accept the Ethics Commission amendments. Good government advocates say the supervisors should do only what is clearly legally necessary: “The Ethics Commission should have used a scalpel, not a sledgehammer,” Oliver Luby, a former commission staffer, told us.

The November mayor’s race is a huge test for the city’s law; this will be the first time effective public financing will be in place for a citywide race, and the success of the ordinance will draw national attention. The supervisors should stop short of so badly amending it that it will lose all its teeth.

The board should hold public hearings and solicit input from local and national experts. The supervisors shouldn’t be intimidated by downtown lawsuits and consider only the most limited changes — after reviewing every possible alternative. 

 

Editor’s notes

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tredmond@sfbg.com

I’m not going to tell Ed Lee he can’t run for mayor. I know he promised he wasn’t going to. I know that if he hadn’t made that promise, he wouldn’t have had the six votes to win the office. I think Lee believed at the time that he didn’t want to run in November, and he may believe it now.

But this is still a democracy, and if Lee thinks the situation has changed and he’s the only person who can properly lead the city over the next four years, he ought to put his name forward.

Right now, though, he’s allowing the “draft Ed Lee” movement to get out of control.

Chinatown powerbroker Rose Pak and political consultant Enrique Pierce (who runs the clearly misnamed Left Coast Campaigns and loves to tout his progressive credentials) have set up an office, are raising money, and have hatched this plan to get Lee to agree to put his name on the ballot and not actively campaign.

The operation — which, let’s remember, carries Ed Lee’s name on it — has already run afoul of the law. The Ethics Commission — hardly an aggressive political watchdog — says the campaign had improperly filed as a political action committee. That’s not Lee’s fault — he has nothing to do with this. But it already taints his reputation.

Lee, by all accounts, has done a far better job with the budget than his immediate predecessor. He’s actually been talking to people. He listens; he accepts logic; he tries to make thing work. I admit, the bar is pretty low — Gavin Newsom was a complete asshole. Still: Lee’s a decent guy.

But he has some heavy political baggage — and most of it has to do with his connections to sleazy operators like Pak and Willie Brown. As long as he’s linked to people who treat campaign finance laws, lobbying rules, and political ethics with disdain bordering on hostility, he’s going to have trouble keeping the public trust.

And right now, those same people are raising money — money that is already being spent on a political campaign — and the noncandidate is letting it happen.

Run if you want, Ed. But if you’re going to keep your promise, then it’s time to call Pak, Pierce and company and tell them to quit.

Ethics chief says “Run, Ed, Run” must register honestly

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As the pseudo-campaign to convince Mayor Ed Lee to change his mind and run for mayor prepares to open a campaign office tomorrow morning – an event with all the trappings of a real campaign but without the candidate or the regulatory controls – the Ethics Commission is asking it to re-register in a less deceptive way.

As the Examiner reported this morning, Progress for All, the group behind the Run, Ed, Run campaign – which has set up a website, bought advertising, and printed and circulated campaign materials around the sole purpose of promoting a mayoral campaign – registered as a political action committee (one not subject to campaign contribution limits or other controls) even though Ethics Director John St. Croix said it is clearly formed around a primary purpose.

Today, St. Croix tells the Guardian that he has asked Progress for All to re-register as a committee formed around the specific purpose of promoting Lee for mayor, but that “I don’t know that they responded completely in the affirmative.” Guardian calls to the group’s main contract Gordon Chin, who also runs the Chinatown Community Development Center, were not returned.

Despite statements to the Examiner by Progress for All campaign consultant Enrique Pearce that this campaign isn’t unprecedented (he cited the 1999 mayoral write-in campaign of Tom Ammiano, who was a willing participant in the effort and formed a campaign committee), St. Croix said it is unprecedented and his office is figuring out how to regulate it.

“There aren’t regulations specifically designed for a scenario like his,” he told us. “They can’t operate in the absence of regulations.”

Right now, while Progress for All lists five co-chairs of the committee, the public has no way of knowing who’s funding the group, how much individual donors have given, or how much is being spent to make the campaign appear to have popular support. That will become more clear at the end of July when the semi-annual campaign finance reports are due, and St. Croix said his office plans to “carefully examine” those filings in order to decide how to proceed.

The group’s current filings list its purpose as “general civic education and public affairs,” but St. Croix said the public has a right to know that it has actually formed around a single candidate. While the courts have struck down fundraising limits for committees like this, the group’s website seems to limit contributions to the maximum individual contribution of $500, apparently acknowledging that there are potential legal problems with its current approach.

Lee has repeatedly said that he doesn’t want to run for mayor and has not encouraged this effort, but he has done little to discourage the efforts by a group led by his closest political allies, so he could be sullied by group’s tactics if he eventually decides to run. St. Croix says that if Lee runs and his campaign has any overlap with the current efforts, it will raised troubling issues of whether there has been any collusion between the two campaigns, which is illegal.

Despite the concerns expressed by Ethics, the agency doesn’t have a great track record of being tough with powerful campaign finance violators, as a Grand Jury report released this week argues. For example, although the Guardian and Bay Citizen each reported back in October about an independent expenditure (partially funded by Willie Brown) on behalf of Jane Kim’s supervisorial campaign that was done through Pearce’s Left Coast Communications, which was Kim’s campaign consultant, that apparently illegal action was never followed up by the Ethics Commission. St. Croix has said he can’t comment on that incident, and he responded to the grand jury report by noting that its recommendations were mild even though “the report itself uses some fighting words,” and he said he was preparing a formal response.

Although some activists have argued that those expressing concerns about this stealth campaign are somehow being undemocratic, the reality is that Progress for All is the only mayoral campaign not playing by the rules. And there are rules that govern elections, rules set up precisely so the public knows who’s really behind the campaign propaganda.

Tourk’s clients sully Herrera’s mayoral campaign

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Does anyone really believe that lobbyist and campaign consultant Alex Tourk isn’t talking to City Attorney Dennis Herrera, whose mayoral campaign Tourk is running, about the biggest clients and issues that Tourk is representing? Honestly, do they believe the public is that stupid?


Apparently so, because that’s the story they were feeding to the Chronicle and its readers today, denying that the two men had ever talked about the Stow Lake Boathouse vendor contract or California Pacific Medical Center and its controversial plan to build a new hospital and housing project on Cathedral Hill.


I mean, c’mon, Tourk even filed documents with the Ethics Commission stating that they had talked about those issues and clients, only to now deny it after realizing that it’s actually illegal to lobby one of your campaign clients. Luckily, Herrera had the good judgment to refer the matter to the Oakland City Attorney’s Office to investigate, considering that this city’s hopelessly corrupt and ineffectual Ethics Commission has abdicated its watchdog responsibilities in favor of repeatedly rubber-stamping every ethics waiver that comes before it, making a mockery of itself and contributing mightily to culture of political corruption that has been on the rise in San Francisco.


This is a problem that runs far deeper that just the Recreation and Parks Department steering the Oretega family vendor to Tourk, who then used his insider connection to get them the contract, which is unseemly enough. No, that’s just the tip of the iceberg with a consultant who has deep connections to monied interests and who has been hired by a mayoral candidate who actually hopes to gain some progressive support.


Consider Tourk’s client list. CPMC is perhaps the most controversial project facing city approval this year, one in which a powerful corporation is making big demands that are being strenuously opposed by a wide swath of working class San Franciscans. Whether Herrera would support this project as mayor and what modifications he would make are important litmus tests to determine what kind of mayor he would be. Yet his campaign consultant is simultaneously advocating for CPMC.


How would Herrera be on police issues, ranging from officer accountability to pension reform to whether to retain new Police Chief Greg Suhr? And can we really have faith that whatever stands Herrera takes weren’t influenced by the fact that the San Francisco Police Officers Association is another Tourk client?


Other Tourk clients include Civil Sidewalks, which advocated for the sit-lie ordinance that police are now struggling with how to legally implement; CH2MHill, the Lennar subcontractor who exposed Hunters Point residents to carcinogenic construction dust; Medjool Restaurant, whose politically connected owner has pushed projects that clash with local planning codes; Prado Group, which has a number of development proposals in SF; Target Corp., which is doing a controversial remodel of the Metreon; and many others.


Is Tourk touting his inside access to man who may be the next mayor? Will Herrera’s campaign benefit from that cross-pollination? I’ve left messages with Tourk and Herrera to ask these questions and others, and I’ll update this post when the call back, but what do you think they’re going to say? And, based on their credibility-stretching comments to the Chron today, will anyone believe them?


UPDATE: Herrera called back, but he wouldn’t discuss these issues on-the-record, instead just giving me a quote similar to the one he gave the Chron: “I was surprised to read that Alex Tourk listed me on his lobbying disclosure forms because he never lobbied me on any of those clients and issues.”

Seeking a watchdog’s watchdog

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rebeccab@sfbg.com

When cash pumps through the guts of city politics, the Ethics Commission is charged with keeping track of it all to help members of the public follow the money. But what happens when the public loses faith in the ethics of the Ethics Commission?

In the run-up to a hotly contested mayoral race, in a city marked by rough-and-tumble politics influenced by moneyed power brokers, the function of this local-government watchdog agency is especially critical — and to hear some critics tell it, the Ethics Commission needs reform if it is to perform as an effective safeguard against corruption.

So it was hardly surprising that an April 5 discussion at the San Francisco Board of Supervisors meeting about whom to appoint to the Ethics Commission featured a low-level tug-of-war with some potentially high-level implications.

Sup. Eric Mar proposed that the board consider Allen Grossman for the seat. An octogenarian government watchdog unaffiliated with any political party, Grossman has gone so far as to file a successful lawsuit against the Ethics Commission for not following its own public-disclosure rules. As a potential appointee, he was widely viewed as reform-minded, following in the footsteps of others who have been purged from the body in recent years.

“Open government and good government work together, hand in hand,” Grossman told members of the board’s Rules Committee several weeks prior, interlacing his fingers for emphasis.

Grossman won the backing of Sups. John Avalos and Ross Mirkarimi. But Board President David Chiu spoke against the idea, throwing his support instead behind Dorothy Liu, an attorney and professional colleague of his through the Asian American Bar Association. The Rules Committee, chaired by Sup. Jane Kim and filled out by Sups. Sean Elsbernd and Mark Farrell, also turned down Grossman in favor of Liu.

“She’s extremely hard-working and does her homework,” Chiu later told the Guardian. He also saw it as a plus that Liu was not a political insider: “I think we need an individual on the Ethics Commission who will be impartial,” he said, adding that he’d prefer “someone who has not been involved in the rough-and-tumble of San Francisco politics.” Sup. Carmen Chu echoed Chiu’s comments during the meeting, saying she thought Liu would be an ideal candidate because she did not seem to have an agenda.

Mirkarimi and Avalos, on the other hand, said they were looking for a candidate who did possess a vision for strengthening the role of the agency as a watchdog. “I think our Ethics Commission and the department, as it stands, needs all the help it can get,” Mirkarimi said during the meeting. “I think having people who are well-seasoned with an understanding in the law of ethics and sunshine is something we should be looking for. Mr. Grossman has exhibited that well over the years in trying to do everything he possibly can to advance the cause in a nonpartisan way of making sure that we have a very strong Ethics Commission.”

Mar’s motion to consider Grossman was shot down on an 8-3 vote with Mirkarimi, Mar, and Avalos dissenting; Liu then won the commission appointment on a 10-1 vote, with Avalos dissenting.

Until recently, the Board of Supervisors seat on the Ethics Commission was held by Eileen Hansen, a progressive who had called for political reform under Mayor Willie Brown’s administration prior to being named to the post. When she was being considered for the commission, Hansen recalled, then-Sup. Michela Alioto-Pier raised an objection. “[She] thought the perfect person would be somebody who … would come essentially as a clean slate,” Hansen remembered. “Because I had been involved in organizing campaigns and had run for office, that was deemed too political.”

Yet Hansen viewed her familiarity with the system as an asset that helped her serve as an effective watchdog against corruption. During her six-year tenure, Hansen often cast lone dissenting votes against decisions she believed were weakening ethical standards. She told the Guardian she’d tried floating remedies for situations she viewed as inappropriate, only to have them summarily ignored, a role similar to that of former Ethics Commission member and staffer Joe Lynn.

In one case, Hansen recalled, she became concerned about a planning commissioner who also directed a nonprofit. To raise money, her organization held fundraisers that were ostensibly attended and funded by the very same developers and lobbyists who appeared before her at the Planning Commission. Yet Hansen said she was unable to persuade the other commissioners or staff to call for an investigation.

A more recent Ethics Commission vote underscores the same tension. On March 14, the commission voted unanimously to waive a pair of ethics regulations to allow a mayoral staff member to become executive director of the America’s Cup Organizing Committee (ACOC). Composed of highly influential business figures including at least two billionaire investors, ACOC is tasked with securing corporate donations for the America’s Cup to offset city costs of hosting the race.

Kyri McClellan, project manager with the Mayor’s Office of Economic and Workforce Development, helped craft a memorandum of understanding with ACOC regarding its fundraising obligations to the city. In her new job, without skipping a beat, she’ll interface with the city on behalf of ACOC. The rules that were waived for her benefit are meant to prevent city officials from holding undue influence over their former coworkers after leaving public service, and to prevent city staffers from accepting money from city contractors right after departing from city employment.

“If I had been there, there would have been at least one vote against that waiver,” said Hansen, whose term on the commission ended before this vote. “We have this law in place for a reason. By continuing to provide waivers … we create a situation where the public will not trust the Ethics Commission as a watchdog.”

Hansen said she was scouting for a new commissioner who would carry on with her work. “I was looking for and trying to recruit a visionary — someone who could really be a reformer,” she said. “We’re almost in a position now where we need a watchdog over the watchdog.” She said she saw Grossman as the right fit.

Other observers, such as CitiReport blogger Larry Bush — an investigative reporter who called for the creation of the Ethics Commission in San Francisco in the early 1990s — questioned whether Liu was the best choice after hearing her statements at the March 17 Rules Committee hearing. Liu did not come out strongly in favor of televising Ethics Commission meetings, which has long been a sticking point for open-government advocates.

“I absolutely support televising the Ethics Commission, I think it’s really important,” Kim noted when we asked her about this. She added that she would have supported Oliver Luby — a former Ethics Commission staff member and whistleblower who was ultimately ousted from the job — if he’d applied.

Kim noted that an initial concern she’d had in seeking an ethics commissioner was whether the person would vote to allow Mayor Lee to resume his job as city administrator after serving out his term as interim mayor, a key decision that the commission was scheduled to consider April 11.

Once she was advised that it would be inappropriate to ask which way they would vote when conducting candidate interviews, Kim said she withheld her question — and still didn’t know Liu’s or Grossman’s position at the time she spoke with the Guardian. “I think it’s very appropriate for him to get his job back,” Kim noted. “That vote is very important to me.”

That vote drew closer scrutiny, however, after Ethics Commission staff recommended that the exemption that would be built into the law for Lee’s benefit should be expanded to include appointed members of the Board of Supervisors. “This new proposal would convert a targeted, narrow exemption to deal with a special case into the ‘Politician Job Protection Act’ and could open the door to all kinds of unintended consequences,” charged Jon Golinger of San Franciscans for Clean Government.

Meanwhile, Luby seemed disheartened by the board’s selection of Liu for the Ethics Commission. He was looking to Grossman to fill Hansen’s shoes as the commission’s reformer — a role previously held by Lynn, Luby’s good friend and mentor who died last year.

He lamented, “This will mark the first time in over 10 years to have an Ethics Commission without someone who has past experience advocating for good government.” 

 

Ethics Commissioner: No surprises, please

The San Francisco Ethics Commission voted unanimously on April 11 to amend a post-employment ban under the city’s Campaign and Governmental Conduct Code, creating a provision that’s designed to allow Mayor Ed Lee to resume his post as City Administrator following the completion of his term as interim mayor.

The change allows an appointed mayor to obtain city employment immediately after serving out a term, provided that he or she doesn’t pull papers to run for office, was previously employed by the city, and doesn’t receive a salary that’s higher than the last year of city employment prior to taking office. The amendment builds in an exception to a rule banning the mayor and members of the Board of Supervisors from obtaining city employment for one year after leaving office.

Ethics Commission staff had recommended that this provision be expanded to apply to appointed members of the Board of Supervisors. While Mayor Lee’s circumstance is a rare occurrence, supervisors are appointed far more often. “The underlying ordinance applies only to the mayor and the board, so we thought, why just do one, why not do both?” Ethics Commission director John St. Croix explained.

But a couple commissioners took issue with that idea, saying it was too far outside the scope of the law that voters enacted, and it ultimately did not win approval. “I don’t see the compelling reason to include the supervisors,” noted commissioner Charles Ward, “and I expect that members of the public are going to be awfully surprised. As a member of the public, I’d be surprised myself.”

Rule change for Mayor Ed Lee could expand beyond special case

Last week, the Guardian reported on the Ethics Commission’s decision to waive two post-employment bans for city officials in order to allow mayoral staffer Kyri McClellan to take a job as executive director of the America’s Cup Organizing Committee, a role that will put her into direct contact with the same office she’s departing from as a representative of private-sector interests.

The April 11 Ethics Commission meeting will feature another discussion on whether to bend the rules on post-employment for city officials.

Shortly after former City Administrator Ed Lee was appointed as interim Mayor, Board President David Chiu introduced legislation that would modify post-employment restrictions to allow Lee to go back to his former job directly after serving out his mayoral term. Under the Campaign and Governmental Conduct Code, the mayor and members of the Board of Supervisors must wait a full year after serving office to obtain employment with the city. Unlike in McClellan’s case, this rule cannot be waived for an interim mayor, so the law must to be changed to include an exception to accommodate Lee in this special case.

As it stands, “This rule is designed to restrict these elected officials from using their influence to create golden parachutes as they leave office,” according to a memo issued by Ethics Commission Deputy Executive Director Mabel Ng.

Yet Ng’s memo proposes expanding the reach of the rule change, advocating for it to apply not only to an interim mayor but any appointed member of the Board of Supervisors who does not plan to seek office after filling out a term.

“If the commission approves this legislation, staff recommends that the Commission also extend the exception to a member of the Board of Supervisors in the same circumstances,” Ng’s memo notes. “Staff makes this recommendation because the same arguments supporting an exception for appointed mayors like Mayor Lee apply equally to appointed members of the board.”

Not so fast, says Jon Golinger of San Franciscans for Clean Government, who issued a press release warning of the possible rule change on April 11. While Lee’s case is rare indeed, supervisors are appointed to fill vacant seats far more frequently, Golinger pointed out. “It introduces a whole new level of uncertainty and political abuse,” he charged. “We don’t want our top officials playing games with public funds so that they can have a job with the city” after leaving office.

Golinger said his group thought the provision that would allow for Lee to resume his old post should include a sunset clause to make it a temporary change, since in his view, “there’s no reason that should be a permanent change.”

As for going a step further to include appointed members of the board, “It’s a major change,” Golinger said, “and it does raise the broader issue of whether Ethics Commission reform is needed.”

In order to be approved, the rule change would have to win at least four votes at the Ethics Commission and at least eight votes at the Board of Supervisors.

Ng’s memo noted that a representative of Chiu’s office would attend the April 11 meeting and respond to questions from staff about the proposed legislation to create an exemption from the post-employment ban for Lee. Reached by phone, Chiu’s legislative aide Judson True said his office had not yet formed an opinion on whether the rule change ought to be extended to the Board of Supervisors.

Mayoral staff member to direct America’s Cup Organizing Committee

The San Francisco Ethics Commission voted unanimously on March 14 to waive a pair of ethics rules in order to allow Kyri McClellan, a project manager in the Mayor’s Office of Economic and Workforce Development (OEWD), to become executive director of the nonprofit America’s Cup Organizing Committee (ACOC). The fundraising arm of the America’s Cup effort, ACOC’s role in bringing the world-famous sailing regatta to San Francisco is to secure corporate donations to offset city costs.

For months, McClellan has been on the city’s side of the negotiating table in discussions with ACOC to hash out a memorandum of understanding (MOU) concerning its fundraising obligations to the city. Without skipping a beat, she’ll now be interfacing with the city on the ACOC side. At press time, it was unclear whether McClellan had already started her new job, but her voicemail with OEWD was still in service. We left a message, but haven’t heard back.

McClellan sat down with the Guardian last November for an interview about the America’s Cup. She seemed knowledgeable and organized — and race organizers were clearly impressed with her performance. Regardless of how qualified she may be, however, the Ethics Commission’s decision to grant these waivers raises the question of whether McClellan received special treatment from the very entity that’s tasked with ensuring ethical government conduct.

The move also raises concerns about a revolving door between the Mayor’s Office of Economic and Workforce Development and the powerful private-sector interests behind the prestigious sailing event. Rather than preserving the ethical barrier that the rules intended, ACOC will now gain a team member who has detailed knowledge of OEWD’s inner workings.

In order to accommodate McClellan, commissioners agreed to waive two post-employment restrictions for city officials. The first is a yearlong post-employment communications ban, and the second prohibits former city employees from receiving compensation from city contractors for two years.

To better understand the intent behind these bans, the Guardian phoned the Ethics Commission and was connected to Deputy Executive Director Mabel Ng. She explained that the communications ban prohibits former city employees from taking private-sector positions that interface with the same department they worked for, “because you might have some undue influence.”

The two-year ban on receiving compensation from city contractors is meant to ensure that city officials engaged in negotiating contracts are not doing so to secure an outcome that would benefit them personally. “This again, just to make sure that when you are negotiating a contract … you’re doing this on behalf of the city,” Ng said.

Asked to explain the commission’s reasoning behind the granting McClellan the waivers, Ng said it was because “it determined that there would not be a potential for undue influence … because it seemed like [ACOC’s] interests were aligned with the city’s interests.”

As one ethics commissioner pointed out during the meeting, however, the same could be said of virtually any nonprofit entering into an agreement with the city.

Asked what would happen if ACOC somehow failed to raise the agreed-upon funds, placing McClellan in the position of having to explain the shortfall or re-negotiate with her former coworkers, Ng allowed, “If something like that happened, there might be a conflict.”

And what justification was given for waiving the ban on former employees receiving compensation from city contractors? “For that one, in the law itself, it says the commission may waive it … if it would cause extreme hardship,” Ng explained. “There would be a hardship, because … this is a great opportunity for her, and there was a short timeline for her to do it.”

Pressed on that point, Ng confirmed that the “hardship” in this case was the possibility of being barred from a great job opportunity, not the threat of financial impact or job loss.

The other issue, Ng said, was that without McClellan serving in that post, the committee’s fundraising effort might not be successful. “It just seemed like, you need to have somebody take charge,” she said. “The committee may suffer without her at the helm. If she were not able to do that, the committee — which plays a very crucial role in this — may not be able to meet its obligations.”

When we mentioned to Ng that the committee was composed of some very well-connected individuals, she noted that she was not familiar with its membership.

As we reported in previous coverage of the America’s Cup, ACOC is a veritable who’s who. Hollywood mogul Steve Bing, who’s donated millions to the Democratic Party and funded former President Bill Clinton’s 2009 trip to North Korea to rescue two imprisoned American journalists, is on the committee. Tom Perkins, a Silicon Valley venture capitalist, billionaire, and former mega-yacht owner, has a seat. George Schultz and his wife, Charlotte, are members. Billionaire Warren Hellman, San Francisco socialite Dede Wilsey, and former Newsom press secretary Peter Ragone are also on the committee. And that’s to say nothing of the less well-known investors, or the honorary members — elected officials serving at all levels of government. Would a powerful crew such as this have a difficult time raising money without McClellan’s leadership? Seems like a stretch, but that reasoning was offered as a factor in the decision to grant the waiver.

In an odd twist, McClellan might also be working alongside her former boss on the America’s Cup effort. In January, ACOC named its “first ever” Ambassador at Large: Lt. Governor Gavin Newsom.

While several ethics commissioners raised questions before granting the waiver, the vote ultimately came to 4-0 in favor of McClellan’s request. Board President David Chiu sent his legislative aide, Judson True, to speak in support of issuing the waiver.

Ethics Commission complacency continues

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As the Rules Committee considers two diametrically opposed nominees to the Ethics Commission – one a reformer and the other an ally of those who want this political watchdog to be as toothless as possible – Larry Bush with the new CitiReport blog has penned an excellent rundown of the sad recent history of an agency that is ineffective at best and corrupt at worst.

We at the Guardian have reported extensively on the problems with the Ethics Commission, from its coverup of Gavin Newsom’s money-laundering to its failure to regulate Willie Brown’s blatant flouting of city lobbying laws, as well as how the agency has expelled the only public-spirited employees it’s had, such a Oliver Luby and Joe Lynn.

At a time when big corporations and local power brokers are cutting backroom deals to give away millions of dollars in taxpayer revenue, and when even public officials are refusing to answer basic questions about ethics violations and influence peddling, this would seem to be a good time to try to restore faith in the agency that is supposed to be regulating that kind of thing.

Instead, powerful interests seem to be doubling down and going for broke, hoping that the public is too trusting or complacent to do anything about it. Sadly, they may just be right.

Unregistered lobbyist

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tredmond@sfbg.com

In 2007 and 2008, Pacific Gas and Electric Co. paid former Mayor Willie Brown a total of $480,000 for consulting work. Since Brown has never been utility lawyer, it’s almost certain that money has bought political advice and access.

Brown is also working for the owners of the Fairmont Hotel, which wants to tear down one of its towers and build as many as 180 luxury condos.

His public affairs institute shares office space with one of the most powerful lobbying firms in town. He meets with or talks regularly with the mayor and members of the Board of Supervisors.

Yet unlike dozens of others who seek to influence public policy for hire, Brown is not registered as a lobbyist at City Hall.

On the surface, it’s a fairly modest issue — all Brown would have to do to comply with the letter and spirit of the city’s law is to fill out a form, list his clients, and reveal which officials he’s been talking to. It would take him 10 minutes.

But the fact that someone who is widely acknowledged to be among the most influential power brokers in San Francisco refuses to disclose whom he’s working for leaves city officials and the public in the dark — and raises a long list of questions about the effectiveness of the city’s ethics laws.

There’s a reason city law requires people who seek to influence city officials for money to disclose what they’re up to. When elected officials, commissioners, or department heads meet with advocates, they need to know who’s paying the bills. If, for example, Sup. Jane Kim has breakfast with Brown (which Brown himself reported on in a recent column in the San Francisco Chronicle), she needs to know: Does he have a client with an agenda? If he asks her to meet with someone, is he just looking out for the interests of the city — or is he pushing a paid special interest?

When Brown has dinner with Mayor Ed Lee (as he did several weeks ago) the voters need to know: Is this dinner companion pushing the mayor to make policy decisions that might help a private interest?

 

THE RULES

The definition of “lobbyist” in city law is designed to avoid putting special requirements on advocates who push issues on their own or for purely political reasons. A neighborhood activist pushing for a stop sign or better police patrols doesn’t have to register. Neither does a restaurant owner looking for a permit to put tables on the street. The only people who have to register are those who represent a client who pays them more than $3,000 in any given three-month period.

Lawyers are exempt if they’re contacting city officials purely about specific pending litigation or claims. Labor leaders are exempt if they’re talking about wages or benefits for their union members.

The requirements aren’t onerous. Lobbyists simply disclose their clients, the issues they’re working on, the city officials they have contacted, and any campaign contributions they’ve made.

There’s no doubt Brown meets the financial threshold in at least one instance. Documents on file with the state Public Utilities Commission show that PG&E paid him $280,000 in 2007 and almost $200,000 in 2008. And although Brown is a lawyer, there’s no indication that he is representing PG&E in any litigation against the city.

On the other hand, PG&E is fighting hard to derail the city’s community choice aggregation program. Is Brown part of that effort? There’s no way to know.

It’s clear he talks to local officials regularly. Most members of the Board of Supervisors we contacted said they had talked to Brown at some point in the past year. “He called me to ask how he could help with the local hire legislation,” Sup. John Avalos told us. “I told him he could call (then-Sup.) Bevan Dufty. He said he would, but I don’t know if it ever happened.” Sup. Sean Elsbernd told us he speaks to Brown about “the state of local political dynamics,” but said he can’t remember being lobbied on any particular issue.

Insiders say that’s typical — Brown rarely lets anyone know exactly what his interests are. “The talent of Willie is his ability to create plausible deniability,” one city official, who asked not to be named, told us.

But when Brown is involved, things have a funny way of happening. Take the Fairmont Hotel.

 

FRONT OF THE LINE

The Fairmont’s owners, who include the Saudi royal family and a group of American investors, want to tear down one of the hotel’s towers, eliminate several hundred hotel rooms, and replace them with high-end condominiums. That requires a city permit — legislation by former Sup. Aaron Peskin limits the number of hotel rooms that can be converted to condos and requires applicants to submit to a lottery for the right to convert.

The Fairmont applied for a permit in 2009, and won tentative approval. But in October 2010, the Planning Commission refused to certify the project’s environmental impact report. With no valid EIR, the permits expired, meaning the hotel would have to go back and reenter the lottery, with no guarantee of success.

So the Fairmont owners are seeking special legislation that would allow them to submit a new EIR without going to the back of the line — in essence, an exemption from the lottery. So far there’s no champion on the Board of Supervisors, and the hotel workers union has been dubious about the project, fearing it will cost union jobs in the long run.

But early in March, Mayor Lee quietly submitted his own legislation to the board, offering the Fairmont everything the owners want.

Who’s working for the owners? Willie Brown.

Bill Oberndorf, part of the local ownership group, told us Brown was an “advisor” to the project. “Nobody in the city has more knowledge about how to get things done than Mayor Brown,” he said.

So did Brown talk to Lee before the mayor introduced his Fairmont bill? And isn’t that a valid question? At press time, Lee’s office hadn’t responded to my questions. But if Brown was a registered lobbyist, he’d have to report that information.

Who else are Brown’s clients? Since he doesn’t register, there’s no list. But there are some clues.

For example, the headquarters of the Willie Brown Institute is situated at One Market Plaza, Suite 2250. That’s the same address as Platinum Advisors, the high-powered lobbying firm founded by Darius Anderson. Among the firm’s clients: AECOM, the engineering and construction giant, which has a $147 million contract on the Chinatown subway project; PG&E; and Sutter Health, which wants to build a $1 billion hospital on Van Ness Avenue.

Others who lobby regularly at City Hall don’t always register. Rob Black, who works for the Chamber of Commerce, is a constant presence.

Black told us the chamber used to be considered a “registered lobby entity” that was required to report all contacts with public officials and the issue involved. But the Board of Supervisors changed that law last year, requiring lobbyist registration only from individuals who are paid at least $3,000 per quarter for lobbying. Furthermore, the definition of lobbying doesn’t include attending or speaking at public hearings or writing letters. So while the SF Chamber’s Black, Steve Falk, and Jim Lazarus all lobby city officials, Black said, none have exceeded that threshold. “If we hit the monetary threshold, we’ll start filing individually,” he said.

The fact that Brown is a lawyer doesn’t excuse him from registering, said Ethics Commission director John St. Croix “If someone is paid specifically to lobby government, they should register,” St. Croix said.

Sup. Ross Mirkarimi told us that the city needs to take a look at the lobbyist registration law to make sure that everyone who has private interests is properly registered.

Elsbernd said that others — particularly labor leaders and union staffers — also regularly lobby but don’t register. And while the law may allow them to skate underneath (like Black), there’s a huge difference between, say, Labor Council Executive Director Tim Paulson appearing at City Hall and Brown meeting with city officials.

When Paulson appears, there’s no doubt in anyone’s mind whom he represents. The same could be said of Black. Although the chamber has many members, it’s clear that he’s pushing the interests of the big-business community.

On the other hand, Ken Cleaveland, public affairs director of the Building Owners and Managers Association, is duly registered with the Ethics Commission.

Brown — as is his typical practice — didn’t return my calls seeking comment. But by flouting the rules, he’s able to operate completely behind the scenes, influencing policy decisions in secrecy, with no accountability whatsoever. That’s a violation of the exact reason the lobbyist registration laws exist.

The lobbyist loophole

1

EDITORIAL As the stories in this issue show, open government laws are critical to democracy. Without the city’s sunshine law, we wouldn’t know how the proposal to give Twitter a tax break ballooned into a major giveaway. Without the sunshine laws, Tim Crews, the embattled publisher of the Sacramento Valley Mirror, wouldn’t have been able to use his small paper to hold public officials accountable.

That’s why the laws on the books need to be enforced — and sometimes strengthened. One example in San Francisco is the lobbyist registration requirement.

Here’s the problem: Former Mayor Willie Brown, who now works for at least two major outfits with business before City Hall. As Tim Redmond reports on page 10, Pacific Gas and Electric Co. paid Brown some $480,000 in 2007 and 2008. And although Brown is a lawyer, nobody can honestly believe that was for legal work. He was clearly paid to give the embattled utility political advice and to pull political strings. And PG&E has major interests at City Hall — San Francisco is trying to set up a community choice aggregation system that PG&E opposes, and (of course) the utility has spent almost 90 years trying to block public power in this town. There are dozens of other city issues, from facility safety to the franchise fee, that affect PG&E’s bottom line.

Has Brown tried to influence city officials on behalf of the utility? The public has no way to know. By law, any individual who lobbies for a private client (and earns more than $3,000 a quarter doing so) has to register with the Ethics Commission, reveal his or her clients, and report on all contacts with city officials. Brown has never done that.

Brown also works for the owners of the Fairmont Hotel, who want the right to convert hotel rooms to condos. Mayor Ed Lee just submitted legislation giving the hoteliers what they want, and Brown is Lee’s political mentor. Connection?

The public has a right to know who’s trying to do what deals behind closed doors; that’s why the city has a lobbyist registration law. The voters have a right to know whether lobbyists are giving money to elected officials; that’s why the law requires registered lobbyists to itemize those contributions. But it’s not always honored — and as Brown shows, it can be openly defied. And nothing happens.

Part of the problem is that the Ethics Commission has been far too lax in pursuing enforcement of the laws. The agency lacks the resources to do serious investigations. As a result, its director John St. Croix told us, all the staff can do is respond to complaints. But even with the limited money it has, the commission can do a lot more. Public hearings on the failures of lobbyist registration and campaign contribution reporting would be a good first step. And how hard would it be to cross-check campaign filings with lobbyist filings to see which lobbyists don’t properly report their contributions? A simple computer program could do that in a few minutes.

The commission also needs to do a better job making its funding case to the supervisors. The utter lack of serious enforcement of laws involving powerful interests doesn’t instill confidence in the agency.

But the law is also vague in parts, and the supervisors need to fix it. A clearer definition of “lobbyist” is a clear mandate. And enforcement needs to be increased. Willful violation of the state’s Political Reform Act is a misdemeanor crime. Violating the city’s lobbyist law should be too.

Editorial: The Willie Brown loophole

0

As the stories in this issue show, open government laws are critical to democracy. Without the city’s sunshine law, we wouldn’t know how the proposal to give Twitter a tax break ballooned into a major giveaway. Without the sunshine laws, Tim Crews, the embattled publisher of the Sacramento Valley Mirror, wouldn’t have been able to use his small paper to hold public officials accountable.

That’s why the laws on the books need to be enforced — and sometimes strengthened. One example in San Francisco is the lobbyist registration requirement.

Here’s the problem: Former Mayor Willie Brown, who now works for at least two major outfits with business before City Hall. As Tim Redmond reports on page 10, Pacific Gas and Electric Co. paid Brown some $480,000 in 2007 and 2008. And although Brown is a lawyer, nobody can honestly believe that was for legal work. He was clearly paid to give the embattled utility political advice and to pull political strings. And PG&E has major interests at City Hall — San Francisco is trying to set up a community choice aggregation system that PG&E opposes, and (of course) the utility has spent almost 90 years trying to block public power in this town. There are dozens of other city issues, from facility safety to the franchise fee, that affect PG&E’s bottom line.

Has Brown tried to influence city officials on behalf of the utility? The public has no way to know. By law, any individual who lobbies for a private client (and earns more than $3,000 a quarter doing so) has to register with the Ethics Commission, reveal his or her clients, and report on all contacts with city officials. Brown has never done that.

Brown also works for the owners of the Fairmont Hotel, who want the right to convert hotel rooms to condos. Mayor Ed Lee just submitted legislation giving the hoteliers what they want, and Brown is Lee’s political mentor. Connection?

The public has a right to know who’s trying to do what deals behind closed doors; that’s why the city has a lobbyist registration law. The voters have a right to know whether lobbyists are giving money to elected officials; that’s why the law requires registered lobbyists to itemize those contributions. But it’s not always honored — and as Brown shows, it can be openly defied. And nothing happens.

Part of the problem is that the Ethics Commission has been far too lax in pursuing enforcement of the laws. The agency lacks the resources to do serious investigations. As a result, its director John St. Croix told us, all the staff can do is respond to complaints. But even with the limited money it has, the commission can do a lot more. Public hearings on the failures of lobbyist registration and campaign contribution reporting would be a good first step. And how hard would it be to cross-check campaign filings with lobbyist filings to see which lobbyists don’t properly report their contributions? A simple computer program could do that in a few minutes.

The commission also needs to do a better job making its funding case to the supervisors. The utter lack of serious enforcement of laws involving powerful interests doesn’t instill confidence in the agency.

But the law is also vague in parts, and the supervisors need to fix it. A clearer definition of “lobbyist” is a clear mandate. And enforcement needs to be increased. Willful violation of the state’s Political Reform Act is a misdemeanor crime. Violating the city’s lobbyist law should be too.

 

Why aren’t Brown and Pak registered lobbyists?

13

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

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

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

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

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

And so it goes in this supposedly progressive city.

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

Sorting out the Kim and Walker claims

2

As the District 6 supervisorial race winds down, we at the Guardian have been inundated by calls and messages by Debra Walker supporters saying how nasty Jane Kim supporters are being, and by Kim supporters complaining that Walker’s people are being mean. And while we’d be the last ones to say that we told you so, everyone should remember that politics is nasty business, particularly when two progressive candidates are targeting the same voters.

It’s not worth trying to sort out the street-level accusations, but it’s worth pointing out some dubious claims in the mailers both sides have sent in recent days, punches and counter-punches that began last week with a mailer by Walker’s camp claiming Kim moved into the district to run for office. Kim’s people dispute that she moved into D6 simply to run, and they note that progressive politicians such as Chris Daly and and Matt Gonzalez were also recent transplants when they decided to run for supervisor.

Yet it’s probably going too far to label this “last-minute lies being spread,” as the latest Kim mailer contends. Another Walker mailer says that Kim is under investigation by the Ethics Commission for illegally coordinating with an independent expenditure mailer funded partially by Willie Brown, which Kim’s camp calls another lie.

It was a story first reported by the Guardian, then picked up by the Bay Citizen, which quoted Ethics head John St. Croix as saying the situation appeared to violate campaign finance law and “warrant an investigation.” Ethics can’t confirm when it is doing investigations, so it might be going to far to say Kim is under investigation, although the incident does appear to involve improper behavior that is probably fair game for criticism.

The mailer also included a Walker campaign accusation that Kim “took off on an all-expenses-paid trip to Vegas – and charged it to the School District” while it was laying off teachers and wrestling with a $40 million deficit. That also has a kernel of truth to it, even that it sounds worse than it was and is probably being blown out of proportion.

The Kim campaign says the trip to speak at a national education conference was paid for jointly between the conference organizers and the school district, which covered about $600 worth of hotel and meal expenses. Again, the accusation has some nasty implications, but it’s probably not an unreasonable accusation during the heat of an election season.

The hit on Walker that the Kim campaign sent out in response also seems to fudge the truth just a bit, but in this case it was in exaggerating Kim’s experience not in criticizing Walker (except for the line that Walker was “Appointed by City Hall insiders” to her spot on the Building Inspection Commission, rather than “Elected by the people,” as Kim was to the school board).

But three of the five claims that Kim makes seem to apply more to Superintendent Carlos Garcia and his administrative staff than to the part-time school board members: “Experience Administering A Budget of $400+ Million,” “Experience Overseeing Over 1,000 Employees,” and “Experience Bargaining With Labor Unions.”

Yet by tonight, all these claims and counter-claims, and all the street-level mudslinging that has been going on, will hopefully fade into memories of a heated political campaign. Hopefully. But if this inter-progressive-movement fight ends up handing this seat over to downtown-backed candidate Theresa Sparks, then the nastiness could be just beginning, because both campaigns will have some explaining to do.

Controlling big money campaigns

0

Big money moved into the district supervisorial races this fall. Downtown forces, working with landlords and a labor union that wants a giant new hospital on Van Ness Avenue, are pouring hundreds of thousands of dollars into races in Districts 6, 8, and 10, trying to alter the direction of the board by electing more conservative candidates. And while district races allow grassroots candidates without huge war chests a decent shot at winning, all this cash is going to have an impact — and might prove to be decisive in some races.

A lot of the money hasn’t been raised directly by candidates, either — it’s in the form of so-called independent expenditure committees, outside operations that, in theory, have no direct connection to any candidate. These committees can raise money without limits, spend it however they like, and ignore the limits that candidates face. And thanks to the U. S. Supreme Court, it’s almost impossible to regulate the committees. So the IEs, as they’re known, can put out attack ads, make scurrilous accusations, even lie outright — and have no accountability.

But San Francisco, which led the nation in using ranked-choice voting and has an impressive system for public financing of elections and disclosure, ought to be working to control this flood of sleaze. There are two major steps the supervisors should be looking at.

1. Respond to the money. San Francisco currently gives matching public funds to candidates who raise enough on their own to meet a threshold. That gives underfunded candidates at least a fighting chance to stay competitive. But it doesn’t address what happens when an outside group comes in and drops, say, $50,000 to promote or attack a candidate.

Unfortunately, federal law and court decisions limit the city’s ability to cap or restrict that spending. But the current system of matching public funds offers a potential alternative.

Suppose, for example, the city offered matching funds not just on the basis of what a candidate has raised — but also on the basis of what his or her opponents (including IEs) are spending. For example, if an IE spends $50,000 attacking a candidate, the city could give that candidate $50,000 (or, better, $100,000) to fight back.

That sounds like a lot of taxpayer dollars — but if the system is designed right, much of it will never be spent. Because the independent expenditure committees are only effective if the money is one-sided. Once these operators realize that all they’ve be doing by spending money against a candidate is increasing that candidate’s own resources, they’re far less likely to mount these campaigns.

The disclosure laws can be tightened too. Campaign ads and mailers have to say where the money’s coming from — but only in tiny type or in rushed voiceovers that few people notice. The federal government’s mandate that cigarette packages and ads have big, prominent statements about the health risks of smoking has been very effective. Requiring campaigns, particularly independent expenditure groups, to identify their major donors in large, visible type in prominent places on printed material and in clear language on radio or TV ads would help the voters understand the players — and the motivations — behind the campaign material.

2. Deal with the legal violations — promptly. A lot of these big-money campaigns have a tendency to skirt — or sometimes flagrantly violate — the city’s campaign law. And by the time the ethics Commission gets around to investigating (if that even happens) the election is over and it’s too late.

The supervisors ought to mandate that all credible allegations of election-law violations be investigated — and resolved if at all possible before Election Day. And if that means Ethics needs more staff, that’s a small price to pay for honest elections. 

 

Controlling big money campaigns

0

Thanks to the U. S. Supreme Court, it’s almost impossible to regulate the so-called independent expenditure committees.

EDITORIAL Big money moved into the district supervisorial races this fall. Downtown forces, working with landlords and a labor union that wants a giant new hospital on Van Ness Avenue, are pouring hundreds of thousands of dollars into races in Districts 6, 8, and 10, trying to alter the direction of the board by electing more conservative candidates. And while district races allow grassroots candidates without huge war chests a decent shot at winning, all this cash is going to have an impact — and might prove to be decisive in some races.

 

A lot of the money hasn’t been raised directly by candidates, either — it’s in the form of so-called independent expenditure committees, outside operations that, in theory, have no direct connection to any candidate. These committees can raise money without limits, spend it however they like, and ignore the limits that candidates face. And thanks to the U. S. Supreme Court, it’s almost impossible to regulate the committees. So the IEs, as they’re known, can put out attack ads, make scurrilous accusations, even lie outright — and have no accountability.

But San Francisco, which led the nation in using ranked-choice voting and has an impressive system for public financing of elections and disclosure, ought to be working to control this flood of sleaze. There are two major steps the supervisors should be looking at.

1. Respond to the money. San Francisco currently gives matching public funds to candidates who raise enough on their own to meet a threshold. That gives underfunded candidates at least a fighting chance to stay competitive. But it doesn’t address what happens when an outside group comes in and drops, say, $50,000 to promote or attack a candidate.
Unfortunately, federal law and court decisions limit the city’s ability to cap or restrict that spending. But the current system of matching public funds offers a potential alternative.

Suppose, for example, the city offered matching funds not just on the basis of what a candidate has raised — but also on the basis of what his or her opponents (including IEs) are spending. For example, if an IE spends $50,000 attacking a candidate, the city could give that candidate $50,000 (or, better, $100,000) to fight back.

That sounds like a lot of taxpayer dollars — but if the system is designed right, much of it will never be spent. Because the independent expenditure committees are only effective if the money is one-sided. Once these operators realize that all they’ve be doing by spending money against a candidate is increasing that candidate’s own resources, they’re far less likely to mount these campaigns.

The disclosure laws can be tightened too. Campaign ads and mailers have to say where the money’s coming from — but only in tiny type or in rushed voiceovers that few people notice. The federal government’s mandate that cigarette packages and ads have big, prominent statements about the health risks of smoking has been very effective. Requiring campaigns, particularly independent expenditure groups, to identify their major donors in large, visible type in prominent places on printed material and in clear language on radio or TV ads would help the voters understand the players — and the motivations — behind the campaign material.

2. Deal with the legal violations — promptly. A lot of these big-money campaigns have a tendency to skirt — or sometimes flagrantly violate — the city’s campaign law. And by the time the ethics Commission gets around to investigating (if that even happens) the election is over and it’s too late.

The supervisors ought to mandate that all credible allegations of election-law violations be investigated — and resolved if at all possible before Election Day. And if that means Ethics needs more staff, that’s a small price to pay for honest elections

Downtown massively outspends progressives

17

With only three weeks until the election, downtown interests are massively outspending progressive groups.(Conservative estimates suggest a 5:1 ratio, based on an analysis of campaign finance disclosures at the Ethics Commission.) And these downtown interests have plenty in reserve, as cash is funneled into a bunch of improbably-named political action committees that hope to influence the outcome of district elections and local measures on the fall ballot.

The Alliance for Jobs and Sustainable Growth, which is backed by the Chamber of Commerce, the SF Police Officers Association, and United Health Care Workers, recently got an infusion of cash from the conservative-minded Building Owners and Managers Association and Golden Gate Restaurant Association. And the alliance is already spending gobs of money in support of Theresa Sparks in D6, Scott Wiener in D8 and Steve Moss in D10.

The Coalition for Sensible Government, which recently received a $100,000 injection of cash from the SF Association of Realtors, is spending in support of Sparks in D6, Wiener and Rebecca Prozan in D8, and Lynette Sweet and Moss in D10. The coalition is also spending in support of Proposition G (transit operator wages) and Prop. L (Newsom’s sit-lie legislation)  and in opposition to Prop. M (community policing/ foot patrols) and Prop N (property transfer tax).

And a PAC consisting of the Coalition for Responsible Growth, Plan C, San Franciscans for a Better Muni, SF Forward (sponsored by the SF Chamber of Commerce and SPUR) received $85,000 from the Committee on Jobs, $60,000 from the SF Association of Realtors, and $35,000 from SF Forward.

This PAC, which has already spent $466,000 this year, recently plunked down $1,000 to produce a voter guide for Plan C–a group that focuses on condo conversions and is endorsing Sparks in D6, Wiener in D8, and Sweet (as its first ranked choice) and Moss (as its second ranked choice) in D10.

It isn’t surprising that downtown PACs have deep pockets and almost identical slates. But it is a bit of a shocker that their slates are apparently almost identical to the Small Business Advocates, a group that has somewhat differing values and only a couple hundred members.

Reached by phone, SBA director Scott Hauge said the group has a couple hundred members–and claimed that SBA’s Board supports Sparks in D6, Moss in D10, and supports Measures G, K, L and opposes Measures J, M & N.

Hauge acknowledged that these positions are identical to those of downtown interests.
“We have been working with large companies,” Hauge said, claiming that small and big business’ interests are “the same” in this particular election cycle.

To date, neither the Chamber’s Steve Falk nor UHW’s Leon Chow have replied to the Guardian’s calls about the genesis of their so-called Alliance for Jobs and Sustainable Growth (Chow posted a comment on our politics blog and that is really not the same as a live conversation.)

But Tim Paulson, executive director of the San Francisco Labor Council wasn’t afraid to go on record in opposition to the Alliance and its 2010 slate.

“We’re really disappointed that there are labor organizations that feel they have to team up with Golden Gate Restaurant Association, which is against healthcare, and with CPMC [California Pacific Medical Center], which is working to keep nurses from joining a union,” Paulson said. “This alliance does not reflect what the San Francisco labor movement is about.”

A door hanger that the Labor Council distributed in conjunction with the SF Democratic Party confirms that both organizations support Debra Walker in D6 and Rafael Mandelman in D8. But while the Dem Party supports DeWitt Lacy, Malia Cohen and Eric Smith (in that order) in D10, the Labor Council only supports Cohen and Chris Jackson (in that order) in D10.

But despite their differing D10 candidate slate, both these progressive groups support Measures J, M and N, and oppose Measures B, K and L.

“When we see the Hotel Council stoop to attack Mike Casey, one of the greatest labor leaders in SF history, for fighting hotels who want to take away healthcare and diminish the retirement benefits for workers who make $25K to $30K a year, that’s really disturbing,” Paulson said, referring to a recent op-ed in the SF Examiner that was written by Patricia Breslin, executive director of the Hotel Council.

“And any union that makes an alignment with groups that don’t share the values of the San Francisco Labor Council, that’s really disturbing to me and the Labor Council,” Paulson said.

Noting that downtown is spending buckets of money on the election, Paulson observed that the Labor Council’s values are about “sharing the wealth.”

“So we don’t want Measure B [Jeff Adachi’s pension reform] or K (Newsom’s hotel tax) or L (Newsom’s sit-lie legislation),” Paulson concluded. “And we have three solid weeks to do this.”

Newsom campaign also plugging Sparks

9

UPDATED WITH RESPONSE FROM SPARKS.

Gavin Newsom’s campaign for lieutenant governor might have a tough time beating moderate Latino Republican Abel Maldonado – indeed, even many of his local allies privately tell us they fear he’s going to lose – but it is still using some of its significant resources and energy to promote the candidacy of Theresa Sparks, whom Newsom endorsed to replace Chris Daly on the Board of Supervisors.

“I’m hoping we can count on your vote for Gavin Newsom for lieutenant governor and Theresa Sparks for District 6 supervisor,” a volunteer with the Newsom campaign said during a call that I received today, the first I’ve gotten from the Newsom campaign.

As of Sept. 23, the Sparks campaign reported having $29,361 in the bank, about half of what her main District 6 rival Debra Walker had on hand on that date ($57,895), even though Sparks has out-fundraised Walker $124,000 to $110,000, according to the most recent campaign finance reports.

Yet even these strong local fundraising totals pale in comparison to what a statewide candidate like Newsom can pull down. As of the last full campaign report that extended through June 30, Newsom’s campaign had $494,000 in the bank after raising $1.4 million, and his recent late contribution reports show hundreds of thousands of dollars more rolling in since then.

Among the recent Newsom contributors are downtown political players such as the San Francisco Apartment Association ($3,500 on 9/16), Shorenstein Realty Services ($6,500 on 9/16), Recology (the company bidding on SF’s big garbage contract, $2,500 on 9/16), San Francisco Building Owners and Managers Association ($5,000 on 9/1), and Sen. Dianne Feinstein ($5,000 on 9/4) – all of which far exceeds the $500 local limit on campaign contributions

It’s unusual for a local and statewide candidate to share a phone-banking operation, and clearly a sign that Newsom would really like to deal with a more ideologically friendly (that is, less progressive) Board of Supervisors if he doesn’t move to Sacramento in January. And from a campaign finance perspective, both campaigns will probably need to document where the resources came from for this shared campaigning when the next pre-election statements are due on Oct. 5.

“Generally speaking, if they share resources they should be apportioning those costs,” Mabel Ng, deputy director of the San Francisco Ethics Commission, told the Guardian. Yet she also noted that California Gov. Code Section 84310 makes a distinction between automatic robo-calls and the kind of live “volunteer” that the caller identified himself as. “If it’s a live person, some of these rules don’t apply,” Ng said. If that’s the case, Sparks might be in for lots of no-cost campaigning during the final pre-election push.

The Newsom campaign has not responded to a Guardian inquiry about the issue, but Sparks returned our call after this article was initially posted. Although she took issue with the implication that there was anything wrong with her benefitting from calls by the Newsom campaign, comparing it to the support Walker has received from the Democratic County Central Committee, she admits to the coordination on the matter between her campaign and Newsom’s.

“Newsom had a volunteer phone bank and he asked if he shoudl add my name to it and I said yes,” Sparks told the Guardian, adding that she’s been pleased with the response to this effort and her own campaign’s phonebanking efforts.

Meanwhile, while Sparks just got a boost from above today, so did Newsom, who was the subject of an e-mail blast from former President Bill Clinton, who wrote, “We have a tremendous opportunity in Jerry Brown and Gavin Newsom, two leaders who realize the promise of their state and will get it back on track. Please join me in helping these candidates win in November.”

Lynette Sweet, the “no comment” candidate

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Lynette Sweet, who is running for D. 10 Supervisor, has already declined to give the Guardian an endorsement interview. And earlier this year, when Sweet sat down for a brief interview as part of our kick-off coverage of the D. 10 race, her campaign manager Shane Meyer kept trying to answer our questions before Sweet could even open her mouth.
But yesterday Meyer took the campaign’s habit of non-communicating to a new level, making us wonder just how much access or information anyone will be able to get out of Sweet, in the event that she actually gets elected, given how she is behaving as a candidate.

“We make no comments to the Guardian,” Meyer told us, when we called to ask if Sweet knew that workers with her campaign had stuck her campaign signs on the doors of the tenants association building in the Sunnydale public housing projects

Now, aside from the fact that Sweet is running a truly off-putting campaign by refusing to communicate on even the most straighforward issues, she might want to make sure her campaign staff are properly trained.

That’s because, as John St. Croix, executive director of the city’s Ethics Commission, told us, “It’s generally illegal to post any sign on public property.”

“All political signs can only be posted on utility poles and lamp posts,” St. Croix added, noting that the Department of Public Works regulates such activity and these regulations are clearly laid out in the Elections Department’s candidate guide.

That guide also states that local law prohibits the posting of signs in excess of 8-1/2 x 11” on all street poles—and that there is a total prohibition on historic lampposts, traffic signals (duh!) and poles with directional signage.

The guide lists common violations of the law regulating outdoor political advertising, which include posting more than one sign on the same pole, and failure to remove signs after Election Day.

“Candidates are strongly advised to become familiar with all applicable laws to avoid such violations,” the guide states.

SEIU wants a hearing on unseemly Ethics ouster

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A day before Oliver Luby’s last day at the Ethics Commission, his union has called for a hearing into why his boss removed a special condition from the job that allowed him to be bumped and whether it was retaliation for Luby’s history of blowing the whistle on problems within the troubled agency.

“Special conditions are rare, specific to the position not the incumbent, and are put into place to promote the policy goal that specialists who are qualified serve in positions that require specific talents,” Gabrial Haaland of SEIU Local 1021 wrote to members of the Ethics Commission and Board of Supervisors. “Removing a special condition is more unusual than placing one on in the first place.  It is likely that an inexperienced Fines Officer would not be able to accurately interpret the necessary and complicated web of statute, local code, case law and FPPC opinions.”

Ethics Commission Director John St. Croix has refused to comment of the controversy, citing the confidentiality associated with personnel matters, but Haaland requested the Board of Supervisors Budget and Finance Committee hold a hearing on it as part their review of the commission’s budget. And Haaland told the Guardian that his union generally doesn’t like special conditions to be placed on positions, but he’s concerned about St. Croix’s motives in removing it: “It seems like retaliation based on his past actions.”

Meanwhile, Luby’s last day is Friday (6/11) and he will gather with friends and supporters after work at Temple on Polk Street. Luby told us he appreciates SEIU’s efforts and supports the idea of a hearing into what happened, but he said he has accepted his fate: “I’m still a goner.”

Another bloody budget

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rebeccab@sfbg.com

In the days since June 1, when Mayor Gavin Newsom unveiled his proposal for San Francisco’s $6.48 billion budget for the next fiscal year, public sector employees and community organizations have been poring over the hefty document to determine how their jobs, services, and programs survived cuts made to close a $483 million shortfall.

For police and firefighters, a key Newsom constituency, the news is good. There were no layoffs to San Francisco firefighters, and while members of the Police Officer’s Association gave up $9.3 million in wage concessions under the lucrative contract Newsom gave them a few years ago, police officers will still receive a 4 percent wage increase on July 1.

For others, the release of the mayor’s budget signified a tough fight looming before the Board of Supervisors, one with high stakes. Cuts to homeless services, mental health care, youth programs, and housing assistance, along with privatization proposals, have raised widespread concern among labor and liberal advocacy organizations. Public input on the budget will continue at the Board of Supervisors Budget and Finance Committee until July 15, when the amended document is considered by the full board.

At a June 1 announcement ceremony, Newsom asserted that the budget was balanced “without draconian cuts,” saying, “We were able to avoid the kind of cataclysmic devastation that some had argued was inevitable in this budget.”

Nearly a week later, Board President David Chiu told the Guardian that sort of cataclysm wouldn’t be staved off for long if the city continues on the course of repeatedly making deep budget cuts without proposing any significant new sources of revenue.

“Now that the smoke has cleared, it is clear that the mayor’s proposed budget is perfect for a mayor who is only going to be around for the short term, but it does not address the long-term fiscal crisis that our city is in,” Chiu said. “Next year, we’re looking at over a $700 million budget deficit. The year after that, we’re looking at almost an $800 million budget deficit. The budget proposal that Newsom put out balances the … deficit on many one-time tricks and assumptions of uncertain revenue.”

Meanwhile, advocates said even the cuts proposed this time would bring serious consequences, especially with unemployment on the rise, state programs being cut in Sacramento, and families feeling the pinch more than ever.

“Poor and working class families, and families of color in San Francisco, are facing kind of an assault on funding and on safety net services on multiple levels,” said Chelsea Boilard, family policy and communications associate for Coleman Advocates for Children and Youth. “I think a lot of it is that families are concerned about their ability to stay in the city and raise their kids here.”

 

“NO NEW TAXES”

During the budget announcement, Newsom emphasized the positive. He found $12 million in new revenue simply by closing a loophole that had allowed Internet-based companies to avoid paying that amount in hotel taxes. He said 350 currently occupied positions would be cut, but noted that it was less than a cap of 425 that public sector unions had agreed to. Cuts were inevitable since the ailing economy inflicted the city’s General Fund with significant losses, particularly from business and property tax revenues.

Nonetheless, Newsom’s budget is already coming under fire from progressive leaders. For one, there are no new revenue-generating measures in the form of general taxes, which could have averted the worst blows to critical safety-net services and might help remedy the city’s economic woes in the long-term.

“There are no new taxes in this budget,” Newsom declared. “I know some folks just prefer tax increases. I don’t.”

Yet Chiu said many of Newsom’s assumptions for revenue were on shaky ground, prompting City Controller Ben Rosenfield — Newsom’s former budget director — to place $142 million on reserve in case the projected revenues don’t pan out.

“These budget deficits continue as far as the eye can see,” Chiu noted. “Even if those amounts come in, something like 90 percent of them are one-time fixes. So even if the mayor is right, it doesn’t solve next year’s problem, or the year after. Which is why many of us at the board believe that we have to consider additional revenue proposals to think about the long-term fiscal health of the city.”

Sup. John Avalos, chair of the Budget and Finance Committee, described Newsom’s budget as “pretty much an all-cuts budget,” noting that he and Chiu planned to introduce revenue-generating measures. They were expected to introduce proposals — including an increase in the hotel tax and a change in the business tax — at the June 8 board meeting.

Because despite Newsom’s rosy assessment, many of his proposed cuts are deep and painful: the Recreation and Park Department would be cut by 42 percent (with its capital projects budget slashed by 90 percent), Economic and Workforce Development by 34 percent, Ethics Commission by 23 percent (basically eliminating public financing for candidates), Department of the Environment by 14 percent, Emergency Management by 10 percent, and the list goes on.

 

CUTS TO SOCIAL SERVICES

Progressives say Newsom’s budget reflects skewed priorities. While relatively little is asked of public safety departments, health and human services programs face major staffing and funding losses. “Poor people are being asked to shoulder the burden,” noted Jennifer Friedenbach, director of the Coalition on Homelessness.

Nearly $31 million would be slashed from the Department of Public Health, and more than $22 million would be cut from the Human Services Agency under Newsom’s proposed budget. While this reflects only 2–3 percent of the departmental budgets, there’s widespread concern that the cuts target programs designed to shield the most vulnerable residents.

Proposals that deal with housing are of special concern. “We have more and more families moving into SRO hotel rooms. We have families in garages. We have a really scary situation for many families,” Friedenbach said.

Affordable housing programs within the Mayor’s Office of Housing would get slashed from $16.8 million currently down to just $1.2 million, a 92 percent cut. Other cuts seem small, but will have big impacts of those affected. Newsom’s budget eliminates 42 housing subsidies, which boost rent payments for families on the brink of homelessness, for a savings of $264,000. Meanwhile, a locally funded program that subsidizes housing costs for people with AIDS would be cut, for a savings of $559,000.

Transitional housing would be affected, too, such as 59 beds at a homeless shelter on Otis Street, which Friedenbach says would be lost under Newsom’s budget proposal. “We’ve already lost more than 400 shelter beds since Newsom came to office, so that’d be a huge hit,” she said. Since the recession began, she added, the wait-list at shelters has tripled. The Ark House, a temporary housing facility that serves LGBT youth, would also be closed.

Overall, homeless services delivered by HSA would take a $12 million hit in Newsom’s budget, or about 13 percent, offset slightly by homeless services being increased by $2 million within the Mayor’s Office budget, a 71 percent increase.

Outpatient mental health services, such as Community Behavioral Health Services, would also be affected (See “Cutting from the bottom”), in violation of current city law. Several years ago, then-Sup. Tom Ammiano introduced legislation establishing a “single standard of care” to guarantee access to mental health services for indigent and uninsured residents.

“If timely, effective, and coordinated mental health treatment is not provided to indigent and uninsured residents who are not seriously mentally ill, those residents are at risk of becoming seriously mentally ill and hence requiring more expensive and comprehensive mental health care from San Francisco,” according to the ordinance, which was passed in June of 2005. Newsom’s budget proposes changing this legislation to enable cuts to those services, which would result in 1,600 people losing treatment, according to Friedenbach.

Unfortunately, advocates for the poor has gotten used to this ritual of trying to restore cuts made by Newsom. “There are some sacred cows that seem to survive year after year, and then we’re left fighting over what we can get,” said Randy Shaw, executive director of the Tenderloin Housing Clinic (THC).

The Central City SRO Collaborative, which supports tenants living in single-room occupancy hotels in the mid-Market Street area and is operated through THC, is slated to be cut by 40 percent along with three other similar programs — a replay from last year when the mayor proposed eliminating funding and the Board of Supervisors restored the cut.

“I think you’d see more fires, more people dying from overdoses. You’d see really bad conditions,” Jeff Buckley, director of the program, told us of the potential consequences of eliminating the inspections and resident training that is part of the program.

Funding was also eliminated for THC’s Ellis Eviction Defense Program, the city’s only free legal defense program with capacity to serve 55 low-income tenants facing eviction under the Ellis Act.

 

THREAT TO RENTERS

One of the most controversial proposals to emerge from Newsom’s budget is a way for property owners and real estate speculators to buy their way out of the city lottery that limits conversion of rental properties and tenants-in-common (TICs) to privately-owned condos if they pay between $4,000 and $20,000 (depending on how long they have waited for conversion), a proposal to raise about $8 million for the city.

“I went back and forth because I know the Board of Supervisors can’t stand this,” Newsom said as he broached the subject at the June 1 announcement. “I still don’t get this argument completely. Except it’s a big-time ideological discussion. It’s so darn ideological that I think it gets in the way of having a real discussion.”

Yet Ted Gullicksen, director of the San Francisco Tenants Union, said the argument is quite clear: making it easier to convert rental units into condos will accelerate the loss of rental housing in a city where two-thirds of residents are tenants, in the process encouraging real estate speculation and evictions.

“It will encourage TIC conversions and evictions because it makes the road to converting TICs to condos that much easier,” Gullicksen said. “It’s going to be a huge gift to real estate speculators.”

Newsom press secretary Tony Winnicker disputes that impact, saying that “these units were going to convert anyway, whether next year or six years. This merely accelerates that conversion without altering the lottery to protect jobs and services.”

But Gullicksen said the proposal obviously undermines the lottery system, which is the only tool tenant advocates have to preserve the finite supply of rent-controlled apartments, noting that even if the condos are later rented out, they will no longer to subject to rent control. That’s one reason why the Board of Supervisors has repeatedly rejected this idea, and why Newsom probably knows they will do so again.

Avalos said he and other progressive supervisors will oppose the proposal, despite the difficulties that will create in balancing the budget. “It’s kind of like putting a gun to our heads,” Avalos said of Newsom’s inclusion of that revenue in his budget.

To offset that revenue loss, Avalos has proposed a tax on alcohol sold in bars and Gullicksen is proposing the city legalize illegal housing units that are in habitable condition for property owners willing to pay an amnesty fee.

Some housing advocates were also struck by the timing of proposing condo conversion fees while also eliminating the Ellis Eviction Defense Program. “We’re really the only ones doing this,” Shaw noted. He said the program is crucial because it serves low-income tenants, many of whom are monolingual Chinese or Spanish speakers who lack the ability to pay for private attorneys to resist aggressive landlords.

 

PRIVATIZATION PROPOSALS RETURN

The Department of Children, Youth. and Families budget would be reduced by 20 percent under Newsom’s budget, with the greatest cuts affecting after school and youth leadership programs. Roughly a $3 million cut will result in the loss of around 300 subsidized slots for after school programs, said Boilard of Coleman Youth Advocates. Another $3 million is expected to come out of violence-prevention programs for troubled youth; an additional $1 million would affect youth jobs programs.

Patricia Davis, a Child Protective Services employee who lives in the Mission District with her two teenage sons, said she was concerned about the implications for losses to youth programs, particularly during the summer. “You can imagine what’s going to happen this summer,” she said. “I feel that a lot of kids are going to do a lot of things that they have no business doing.”

Davis, who says she’ll have to look for a new job come Sept. 30 because the federal stimulus package funding that supports her position will run out, said she was not happy to hear that police officers would be getting raises just as that summer school programs are being threatened with closure. “Couldn’t the 4 percent [raise] go somewhere else — like to the children?” she wondered.

Meanwhile, privatization proposals are causing anxiety for SEIU Local 1021 members, who recently gave millions in wage concessions and furloughs along with other public employees to help balance the budget. A proposal to contract out for jail health services cropped up last year and was shot down by the board, but it’s back again.

“When you make it a for-profit enterprise, the bottom line is the profit. It’s not about the health care,” SEIU Local 1021 organizer Gabriel Haaland told us. “It isn’t the same quality of care.”

Haaland said he believes the mayor’s assumption that the proposal could save $13 million should be closely examined. Other privatization schemes would contract out for security at city museums and hospitals.

Institutional police in the mental health ward at SF General Hospital and other sensitive facilities are well trained and experienced with difficult situations so, Haaland said, “the workers feel a lot safer” than they would with private contractors.

Regarding Newsom’s privatization proposal, Avalos said the board was “opposed last year and the year before, and we’ll oppose [them] this year.”

In the coming weeks, Avalos and other members of the Budget and Finance Committee will carefully go over Newsom’s proposed budget — which is now being sized up by Budget Analyst Harvey Rose’s office — and solicit input from the public. Chances are, they’ll get an earful.

“People are scared. They are scared to death right now,” Boilard said. “As it is, people’s hours are being reduced. And it’s getting harder and harder to find a job because so many people are out of work that the level of competition has gotten really fierce. This is the time that we need to invest in safety net services for young people and families more than ever — and all those services and programs and relationships that people depend on are disappearing.”

Steven T. Jones and Kaitlyn Paris contributed to this report.

Ethics boss finally ousts Luby, a crusading public advocate

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Oliver Luby has long been the most public-spirited employee of the San Francisco Ethics Commission, the one person in that office who repeatedly exposed powerful violators of campaign finance rules and blew the whistle on schemes to make the system less transparent and effective, drawing the ire of Director John St. Croix and Deputy Director Mabel Ng in the process.

St. Croix repeatedly tied to silence and punish Luby, who fell back on civil service and whistle-blower protections to save his job as a fines collection officer and continue doing it properly. But it appears St. Croix has finally succeeded in ousting Luby, who this week was notified that his last day will be June 11.

During budget season last year, at a time when St. Croix was trying to punish Luby for sounding the alarm about a new campaign finance database would effectively delete important data (something St. Croix defended but the vendor, NetFile, later corrected), St. Croix quietly removed a special condition for Luby’s job that required at least 12 months campaign finance experience.

So when Mayor Gavin Newsom ordered more than 400 layoffs of city employees to balance the budget, Luby’s job was just another 1840 level position, subjected to being taken by someone from another department with more seniority, which is what happened when Ernestine Braxton, a junior management assistant with the Department of Public Works, took the job.

When I asked St. Croix about why he removed the special condition from Luby’s job and whether it was retaliation for his battles with Luby, St. Croix told me, “You want me to talk about a personnel matter and I’m not going to talk about it.”

Yet Luby says its clear the St. Croix targeted him for removal. “Once that condition was removed, it was only a matter of time before I was bumped by someone in the same civil service job class but with greater seniority,” Luby wrote in a message to supporters, adding that he’s still figuring out what his options are.

Luby first got on the wrong side of Ethics Commission management back in early 2004 when he and fellow employee Kevin DeLiban accidentally were sent a memo from the office of campaign attorney Jim Sutton, treasurer for the Newsom for Mayor campaign, detailing a scheme to illegally pay off campaign debts with money laundered through Newsom’s inauguration committee.

Ng and then-director Ginny Vida ordered them to destroy the document, but they saved a copy and exposed the scheme, which Sutton then backed away from implementing (the pair was publicly honored for their efforts). But Luby continued to have professional differences with Vida’s replacement, St. Croix, often over the favorable treatment given the clients of Sutton, who runs the most expensive and deceptive campaigns on behalf of powerful downtown corporations and organizations (and whose hiding of a late PG&E contribution to defeat a 2002 public power measure resulted in a largest fine Ethics ever ordered).

For example, in 2007, Luby wrote a memo showing how enforcement actions by Ethics disproportionately targeted small campaigns (often by progressive candidates) and ignored serious violations by the most powerful interests in the city (which, if pursued, would have resulted in big fines, money the city desperately needs). We at the Guardian obtained the memo and wrote a story, causing St. Croix to order Luby to not longer write memos recommending way to improve operations at Ethics. And in November 2008, Luby wrote an op-ed in the Chronicle showing how St. Croix had ignored and covered up campaign finance law violations at City College of San Francisco that later led to the criminal indictment of former Chancellor Phil Day (whose trial is expected to begin later this year).

With each of these battles, Luby was threatened by St. Croix and had to seek support from his union, SEIU Local 1021, and the protection of civil service and whistleblower laws. But now, it appears that San Franciscans are losing the only person in the Ethics Commission that could be trusted to act in the interests of the city and the public.