Ethics

Two drug execs escape jail … for now

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By G.W. Schulz

Two former executives at the San Francisco-based McKesson Corp. escaped prison sentences by the skin of their teeth late last week in this ongoing era of blind fury over corporate corruption. And McKesson’s former blue suits have the indecisiveness of just one juror out of 12 to thank.

The two were acquitted on one count of securities fraud stemming from a $9 billion accounting scandal, but a mistrial was declared after the jury deadlocked 11-1 on three of the remaining counts. Four other executives were previously convicted in a scheme by which the company allegedly overstated revenue to the tune of $300 million during its merger with an Atlanta-based outfit called HBO & Co.

McKesson is one of the nation’s largest prescription-drug wholesalers with revenue of $88 billion annually. It’s current CEO, John Hammergren, makes more each year than even the head of Bay Area-based ChevronTexaco.

One juror told the Associated Press that the rebel holdout “got to the point where he didn’t want to be talked to anymore.” U.S. Attorney Kevin Ryan’s office is determining whether to retry, which could still land the two men, Charles McCall and Jay Lapine, in jail for 10 years each.

The Guardian reported in late October that McKesson is in no small amount of trouble these days. The company, along with the New York-based Hearst Corp., which owns the San Francisco Chronicle, was charged by a group of unions in a civil suit filed in a Boston federal court last year of conspiring to inflate drug prices. Hearst owns a drug info publishing company based in San Bruno called First DataBank. The suit alleges that the effort caused consumers to overpay $7 billion for prescription drugs between 2001 and 2005. First DataBank has since settled, as we reported, but McKesson is still a major target of the lawsuit.

Big Pharma is nearly as profitable as Big Oil these days. The state of California pays out over $3 billion each year for prescription drugs through programs that benefit children and the indigent, while Santa Clara County alone — as a smaller-scale example — pays out nearly $35 million. (Santa Clara County sued a bunch of manufacturers and wholesalers a couple of years ago for allegedly rigging prices, but the case was recently tossed out of federal court in San Francisco.)

Defense attorneys for the former McKesson execs are calling last week’s ruling a victory, but Wall Street didn’t appear to see it that way. Value of the company’s shares dropped by nearly a half following announcement of the news to $35. The company quickly informed the business press just a few days later of its $1.1 billion purchase of Georgia-based Per-Se Technologies and just as soon recovered $15 per share of the drop. Guess corporate ethics don’t have to be much of a pain in the monetary ass after all.

Prosecute election theft

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EDITORIAL There’s no doubt at all that a group of downtown businesses operating through a series of supposedly independent political committees organized in part by attorney Jim Sutton have used every tool at their disposal to influence the outcome of the District 6 supervisorial election. And there’s no doubt that what these folks have done violates at least the spirit of the city’s election laws, which were designed to offer, as much as legally possible, a level playing field for candidates and full disclosure of campaign expenses.
There’s also no doubt that Sutton has been willing to bend and at times break the rules: in 2002 his law firm was fined $240,000 — the largest penalty of its kind in city history — for failing to disclose late contributions from Pacific Gas and Electric Co. to a campaign to defeat a public power initiative.
At some point this sort of conduct rises to the level of a crime — and at least some respectable, credible activists and observers think the attacks on Sup. Chris Daly have reached that level. In a letter to the Guardian, published on page 8, former ethics commissioner Joe Lynn argues that Sutton and his allies are guilty of attempting to steal an election.
There’s no crime in the books called “Grand Theft, Election,” although there probably should be. But Lynn says that what’s happened here — unregulated committees raising and spending tens of thousands of dollars and not fully disclosing it until late in the cycle — is not merely sleazy and unethical but criminal.
We’re always nervous about bringing the criminal justice system into political disputes (we still remember how then-mayor Art Agnos pushed the district attorney into conducting a witch-hunt investigation into the opponents of a downtown ballpark ballot measure). But we’re also sick of seeing the likes of Sutton, Don Fisher, and SFSOS operate with virtual impunity when what they are doing comes very, very close to a conspiracy to subvert local election laws. The Ethics Commission needs to conduct a full investigation here, but that body can impose only civil penalties, which means cash fines — and for billionaire Fisher, whose money is behind a lot of these shenanigans, a stiff fine is just the cost of doing business.
District Attorney Kamala Harris ought to look into this. The problem is that Sutton was her lawyer in a heated campaign in 2003 during which her opponent, Terence Hallinan, raised similar charges. So Harris is conflicted; the best solution would be to appoint outside counsel — a special prosecutor, to use the Washington terminology — to investigate whether Sutton, Fisher, SFSOS, or anyone else ought to face criminal prosecution. The sooner that process gets started, the better. SFBG

The dirt in D6

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› amanda@sfbg.com › sarah@sfbg.com If you live in San Francisco’s District 6, it’s pretty difficult to avoid what some residents are calling a new filth polluting Tenderloin corners and SoMa streets. It’s not overflowing trash bins or urine-stained door frames — it’s the relentless election billeting that uses those images to support Rob Black and oppose Chris Daly for the district’s seat on the Board of Supervisors. “We’re tired of talk. Of loud, whining, condescending, offensive, abusive, lying, showcasing, arrogant talk,” reads a recent poster on a telephone pole. “District 6 is dirty and dangerous. District 6 is still poor. Chris Daly is why. Dump Daly. Back Rob Black.” “I was totally offended by this,” Debra Walker, a progressive activist and resident of the district for 25 years, told the Guardian. “This kind of message intentionally suppresses the vote. People I’ve talked to in the district who aren’t very political are totally turned off by the mailings from Rob Black or made in his benefit.” Some of the mailings, posters, and literature can be directly attributed to independent expenditure (IE) committees recognized by the Ethics Commission and acting legally. Some, however, have more dubious ancestry but apparent links to a campaign attorney with a long history of using millions to control the outcome of elections in San Francisco: Jim Sutton (see “The Political Puppeteer,” 2/4/04). Sutton did not return calls for comment. Most of the anonymous literature directs people to the Web site www.DumpDaly.org. SFSOS’s Wade Randlett told us his group paid for the site and a volunteer set it up. SFSOS and Sutton formed Citizens for Reform Leadership 1–6 — IE committees listed on many of the signs and much of the literature, including the poster quoted above. The committees haven’t filed any IE reports with the Ethics Commission. Walker, along with Maria Guillen, vice president of SEIU Local 790, and another District 6 resident, Jim Meko, submitted a complaint with the Ethics Commission on Sept. 29 with nine pieces of physical evidence supporting their concern that the roof had been blown off the $83,000 spending cap on the campaign, in place because all candidates agreed to public financing. The evidence submitted with the complaint varied and included three different mailers from “Concerned Residents of District 6,” a committee that has yet to exist on paper in the Ethics Commission filing cabinets. The mailers from the “Concerned Residents” are glossy triptychs critical of Daly but not explicitly advocating for another candidate. They do not state the amount the committee paid for them, which is required of any electioneering communication. On Oct. 6 the Ethics Commission released a statement saying the spending cap for District 6 was no longer in effect. John St. Croix, executive director of the commission, has identified at least $90,000 in IEs, including three unreported mailers. “At some point we will attempt to determine who distributed the mailers,” St. Croix said. “But it’s not likely before the election.” The tactic of breaking the law before the election and taking the heat after the ballots are in has been used in the past, and this new example flouts recently passed legislation. These mailings should have been filed with the Ethics Commission, according to an ordinance passed in 2005 in response to similar anonymous hit pieces that came out in the elections of 2003 and 2004 against Supervisors Gerardo Sandoval and Jake McGoldrick. (Sutton defended SFSOS’s main funder, Donald Fisher, in his successful Strategic Lawsuit Against Public Participation against Sandoval over the issue.) “It’s a strategy taken straight from Karl Rove’s playbook,” Meko, a 30-year SoMa resident, told us. Joe Lynn, former Ethics Commission member and staffer, told us “all the committees in San Francisco should turn their backs on contributions from people who are involved in this scheme — at least until they explain their involvement. These are the most sophisticated folks in San Francisco politics. I think a full investigation including possible criminal activity ought to be assigned to a master.” He said District Attorney Kamala Harris used Sutton in her race and therefore may have a conflict of interest. The Rob Black for Supervisor committee claims no connection to the literature that hangs on doorknobs and clogs mailboxes, the push polls calling people, or the postings in the streets and tucked under windshields. “I don’t support the anonymous pieces. If people are doing it on my behalf, I don’t want it,” Black told us. But Daly told us “the IEs appear to be coordinated…. The Black committee is not running a campaign that would be independently competitive. He’s only sent one piece of mail, but he’s had eight sent on his behalf.” Residents suggest it’s even more than that: Walker received three more anti-Daly mailers Oct. 20. Black confirmed that he had only sent one mailing to the district, and he’s “not surprised” that so many IEs have sent out mailings in his support. With the exception of a filing from the Police Officers Association, the only legal IEs reported with the Ethics Commission so far are from the Building Owners and Management Association (BOMA) and Golden Gate Restaurant Association (GGRA). They also trace back to Sutton, Black’s former boss at Nielsen Merksamer, a law firm that represented PG&E in the 2002 campaign against public power, for which the firm was fined $100,000 for failing to report until after the election $800,000 from PG&E, the biggest fine ever levied by Ethics. Sutton left the firm shortly after. Black stayed on until 2004, when he took a position as legislative aide with Michela Alioto-Pier. The most recent poll released by Evans McDonough purports to show Black ahead by six points (with a five-point margin of error). It was commissioned by Barnes, Mosher, Whitehurst, Lauter, and Partners, which has also been employed by Sutton through BOMA and the GGRA for the IEs in the District 6 election. The financial shenanigans have been a rallying point for the Daly campaign. More than 70 volunteers signed in at an Oct. 21 rally and hit the streets: shaking hands, distributing literature, and making phone calls raising support for Daly. Sup. Ross Mirkarimi criticized the soft money’s “ugly, nasty, mean-spirited tactics” to oust Daly. “If they have to resort to these tactics, is that the kind of government we want in San Francisco?” he asked the crowd. “This is the nastiest, most personal and hateful thing I’ve ever been involved with,” Daly said. “It’s very painful.” But, he said, “our people power is better than their money power.” Outside a volunteer shouted into a bullhorn, “Don’t let downtown interests buy your democracy!” SFBG

Why won’t the PG@E attorney for supervisor answer some questions?

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Douglas Chan, an attorney with the law firm of Chan, Doi, and Leal, is a candidate for supervisor from the Sunset District. PG@E has paid $2l0,054 to his firm the last two years, according to PG&E’s filings with the California Public Utilities Commission.

Chan also disclosed that he has received more tthan $l0,000 during the last year in gross income including his pro rata share of the gross income of the firm from five clients (PG&E, Ferry Plaza Limited Partnership, Chess Ventures Legal Challenge, Sugarbowl Bakery, and Chinese Consolidated Benevolent Association), according to his Statement of Economic Interest filed with the Ethics Commission. This is nothing new for Chan: Back in 2002, he put his name on PG@E campaign material opposing the public power initiative and supporting PG@E and thus earned a spot in the Guardian’s Hall of Shame that year.

The PG@E connection raises some serious questions for Chan. He refused to be interviewed for our Guardian editorial endorsement interviews of candidates for supervisor (even though most other candidates in other races came in for interviews.) And he and his campaign staff have refused to talk to us about these questions. So it may be up to the residents inside and outside the Sunset District to ask him these questions at candidates’ nights and when they spot Chan on the campaign trail. Good luck! Let us know. These are the questions I emailed today to Chan, his campaign manager Tom Hsieh jr., and his firm.

To Doug Chan, Tom Hseih jr., Nicole Yelich, and to Chan, Doi and Leal:

We’ re sorry that Doug Chan, as a candidate for public office in the Sunset District (not far from where I live), has decided not to come to the Guardian for our normal round of candidate interviews, as almost everyone has done in other campaigns.

We’re also sorry that we cannot reach him, or anyone in his campaign, who can answer some important questions about the relationship that he and his law firm have had with PG@E for years. So I am asking these questions by email (for Guardian coverage and for my Bruce Blog at sfbg.com):

l. PG@E has paid $2l0,054.ll to the Chan, Doi, and Leal law firm during the last two years, according to PG@E filings with the CPUC. What has PG@E paid the law firm so far this year? Will PG@E be an ongoing client of the firm? What is the total that PG@E has paid the law firm through the years? What percentage of the firm’s revenue has been paid directly or indirectly by PG@E, year by year? If elected, will Chan fully divest himself and disengage completely from the firm?

2. What work has Chan himself done for PG@E? In reading through the resume of Chan and the partners of the firm, it doesn’t appear that this firm or its partners have any specific utility or energy expertise. Why then did PG@E hire this firm?

3. Did PG@E encourage Chan to run for the Sunset supervisorial seat?

4. Have you asked the city attorney for an opinion on how PG@E’s hiring of the firm and Chan would affect his votes and whether he would have to recuse himself on such votes as public power, the community choice aggregation project, and the many other projects and votes involving PG@E? If you have an opinion, what is it?

5. What is Chan’s position on enforcing the Raker Act and bringing Hetch Hetchy power to the city for our residents and businesses? Would he vote to put on the ballot an initiative proposal to buy out PG@E’s transmission lines and make San Francisco a public power city? Would he for example support proposals such as the last two public power proposals that went on the ballot? We would appreciate his reasoning on this critical issue that costs the city hundreds of millions of dollars a year.

6. Would he vote to direct the city attorney to sue PG@E to make null and void the city’s l939 PG@E franchise fee, which is the lowest in the state, and PG@E claims is signed in perpetuity? If not, why not? We would appreciate his reasoning on this critical issue that costs the city tens of millions a year.

7. What is Chan’s position on the community choice aggregation proposal now before the board? On the city’s development of alternative power sources such as solar, tidal, etc.? ON tearing down the ruinous Potrero Hill power plant?

7. The critical question: given PG@E’s heavy investment in Chan and his firm, could Chan explain to us and the people of the Sunset how you would represent them fairly and honestly on these critical public power/public resource issues and not be under the influence of your former client PG@E?

Thanks very much. We would appreciate talking to Chan directly or, if that is not possible, getting his answers to the above crucial public power and public policiy quetions from him. Thanks very much. B3

Doug Chan, PG&E’s man at City Hall

No limits

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By Steven T. Jones
Well, the gloves have come off in the District 6 supervisorial race. The Ethics Commission has just announced that the voluntary spending caps have been lifted in that race, responding to complaints that the tens of thousands of dollars in hit pieces on Sup. Chris Daly have effectively blown the caps. Daly, Rob Black, and the other major candidates had agreed to limit their campaign expenditures to $83,000 or less, and both Black and Daly have already spent about half that, according to just filed campaign finance statements. Now that the caps are gone, Daly is free to spend the $95,000 he has in the bank, outstripping the $52,000 Black has on hand. Add those totals (which are far from complete with a month still to go) to the fat wads of cash that anti-Daly forces are still like to throw around and expect the fur to fly.

Be a liver

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› andrea@altsexcolumn.com
Dear Andrea:
Many years ago, I contracted the Hepatitis C virus (HCV). I had many partners before tests became available. None, to my knowledge, has contracted HCV from sexual contact with me. I know it’s possible to pass it through sexual contact but it’s very rare. It requires blood to blood contact: someone would need to stick their bloody penis in some equally bloody orifice on my body — not gonna happen! I’m always safe when it comes to anal sex. As for oral, well, that does give the opportunity to examine my partner more closely. Am I obligated to tell every partner I have about my HCV status?
The Centers for Disease Control and Prevention (CDC) consider HCV to be a sexually transmitted disease, but health departments of other countries — Australia for example — do not. My faith in the truthfulness of an agency of the US government in the current political climate is doubtful, especially when it comes to sexual matters.
I’m not a slut, but I satisfy my needs when they arise. I’ve never had an STD of any kind. I don’t know if it matters, but I’m a transsexual woman.
Love,
Liver It Up

Dear Liv:
Nope, doesn’t matter a bit!
It is maddening that we still know so little about sexual transmission of hep C. There are studies, but they contradict each other, are too specific to generalize from, or are otherwise just not capable of answering the big question: can you for sure get this from fucking? Seeing as the virus is pretty common though, there really ought to be more cases of transmission between monogamous non-drug-injecting partners. The cases just aren’t there, so it is tempting to shrug and say, “Guess it isn’t sexually transmitted after all.” If hep C were the common cold, I’d be cool with that, but seeing as it’s the leading cause of liver transplants in the United States and can totally kill you, we can’t be quite that cavalier about it.
It’s worth noting that while the CDC groups HCV with the sexually transmitted diseases on its Web site, it has little to say about actually getting it through sex. Click on the link and you get a list of risk factors (transfusion or organ transplant before routine testing was implemented, injection drug use, etc.) with nary a mention of sex of any sort. And when you dig a little deeper you find this: “HCV can be spread by sex, but this does not occur very often. If you are having sex, but not with one steady partner: You and your partners can get other diseases spread by having sex (e.g., AIDS, hepatitis B, gonorrhea or chlamydia).”
This is really a nice bit of legerdemain: “Sure, it could happen, but we don’t want to be quoted saying it could happen to you, so, uh, don’t get the clap.” I was guilty of the same sort of sleight of hand way back when I was working as a women’s safer-sex educator but really didn’t believe that the population we were reaching was actually at the slightest risk of contracting HIV through sex. No matter how stridently the AIDS establishment insisted that everyone was at equal risk, it wasn’t and still isn’t true, so I’d hand the girls the AIDS-prevention pamphlet I was paid to distribute and then tell them how not to get warts. Win-win, as far as I was concerned.
So do you have to tell everyone? This may be more of a question for that ethics guy than for me, but I kinda want his job anyway, so I’m going to have to say yes. You can play it down, you can say the chances of exchanging enough blood during sex are extremely low and you’ll be using condoms anyway, but since there have been cases of sexual transmission (no, we don’t really know what those people were doing, only what they say they were doing), we can’t pretend that there’s zero risk. “Almost zero” isn’t zero. I’m really sorry.
I had to do this, kind of. I discovered that a forever-ago partner had developed the disease, and as much as I would rather have sporked my own eyes out, I called the people I’d seen since (thankfully, there weren’t many of these) and informed them of the teensy-weensy risk. Nobody cared. I do hope I called them back after I finally got tested … um … all clear, guys, OK?
As for the right-wing antisex conspiracy, well, I’m with you as far as not trusting this administration as far as I could throw them — and really, really wanting to throw them — but the CDC is not so bad (and anyway the World Health Organization agrees with it about HCV). Look up Dr. Julie Gerberding, the Bush-appointed director of the CDC, and you’ll find her support for safer-sex education reviled and her appointment tsk-tsked on the Web sites of Focus on the Family, Concerned Women for America, and Accuracy in Media, among others. The enemy of your enemy is your friend.
Love,
Andrea
Andrea Nemerson has spent the last 14 years as a sex educator and an instructor of sex educators. In her previous life she was a prop designer. And she just gave birth to twins, so she’s one bad mother of a sex adviser. Visit www.altsexcolumn.com to view her previous columns.

District 6 sleaze

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EDITORIAL The fall campaign season has only begun, and already the District 6 race is getting really ugly. A downtown-funded operation, hiding behind anonymous mailers and front groups, is spending gobs of money to smear Sup. Chris Daly, and thanks to the city’s campaign-spending laws, Daly’s ability to fight back is limited. The whole mess points to a real problem in the way so-called independent-expenditure committees are regulated, and the supervisors and the Ethics Commission should take up the issue immediately.
Daly, who’s represented the district for almost six years, has offended a lot of people — including some of the city’s richest and most powerful interest groups. They tried to unseat him four years ago with no success, but this time around they have more money and a slimy, secretive strategy that appears to expose a loophole in local law.
The first salvo landed a few weeks ago: a slick, 22-page mailer called “The Case Against Chris Daly” that attacks him on almost every front. The hit piece is unsigned, so the people who received it have no way of knowing exactly who’s behind the message. And there’s no requirement that the sponsors register with the city’s Ethics Commission and reveal their source of financing.
It’s pretty clear, though, who produced and paid for the piece. The money is going through a group called Citizens for Reform Leadership #1, which was set up by downtown elections lawyer Jim Sutton, organized by SFSOS, and funded in large part by Republican kingmaker and the Gap founder Don Fisher. (Sutton has also established Citizens for Reform Leadership committees two through six, indicating that there’s more of this to come.)
The way San Francisco’s campaign-spending limits work, no candidate for supervisor can spend more than $83,000 — unless one of the other candidates breaks that cap. Then all rules are off. But that cap doesn’t apply to whoever put out the 22-page hit piece — in part because we don’t even know legally who it was. That means the SFSOS-Fisher crew can spend hundreds of thousands of dollars hammering away at Daly — and he can’t spend more than $83,000 fighting back.
The candidate who benefits most from this sewer money is Rob Black, a former aide to Sup. Michela Alioto-Pier who has the backing of Mayor Gavin Newsom and is by any account Daly’s most serious challenger. Black told us he has no direct connection to the hit squad — but he stopped short of promising not to engage in negative campaigning himself. And he’s certainly not going around town denouncing the anti-Daly sleaze.
That should change now. If Black wants to be seen as anything other than a pawn of Fisher, he should put out a formal statement calling on SFSOS and its allies to back off, quit the anonymous name-calling, and either come clean or stay out of District 6. So should every other candidate in the race. (The hotly contested District 5 battle two years ago was remarkably clean, in part because all of the candidates agreed not to accept this sort of nonsense.)
The Ethics Commission should launch a full investigation of this anonymous campaigning with the aim of exposing the forces behind it — and if the city’s current law doesn’t allow a ban on secret hit pieces, the supervisors should amend it today. Meanwhile, the commission ought to lift the expenditure limit for District 6; it’s not optimal, but in this case it’s only fair. SFBG

The Village Voice, 1953 to October 2005 (the date the New Times purchased the Voice), RIP

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The hitman cometh

There’s a key phrase in this morning’s New York Times account of the Mike Lacey massacre at the Village Voice (“Village Voice Dismisses 8, including Senior Arts Editors, a ‘reconfiguration’ leaves the critic Robert Christgau unemployed”). Click here

It followed the standard boilerplate press release that always accompanies what a former Voice press critic Cynthia Cotts called “the signature New Times bloodbath.” The boilerplate: Village Voice Media/New Times/Mike Lacey described the layoffs as an effort to “reconfigure the editorial department to place an emphasis on writers as opposed to editors.” The company added: “Painful though they may be in the short term, these moves are consistent with long-range efforts to position the Voice as an integral journalistic force in New York City.”

Then comes the standard line that is widely known to all of us who have tried in vain for years to get Lacey, the editor in chief of VVM/NT and the l7 paper chain from Phoenix, Arizona, to respond on the phone or by email to legitimate news issues:

Lacey “did not return calls seeking further comment.”

Lacey is a colorful editor. After New Times purchases a paper, he loves to ride into town and shoot up the saloon
and massacre the staff and the paper. He did this in San Francisco when the New Times bought the SF Weekly and he did it with the Voice in New York. He loves to whack away at me and the Bay Guardian with long screeds (his latest, a 20-pager of high volume vitriol up on the web somewhere, with the head, “Brugmann’s Brain Vomit, cleaning up the latest drivel from San Francisco’s leading bullgoose looney.”) It full of marvelous stuff and is one of my prized possessions.

But Mike and the New Times folks have a fatal flaw: They love to hit, run, and hide.

That’s how I started guerrilla blogging awhile back. The local version of Lacey’s journalistic ethics, the SF Weekly, would through the years blast away at me and the Guardian and our issues with a distinct pattern: they rarely would call for comment before publication. When they did call, they would get the quote wrong or out of context. And, when we would write a letter to the editor to correct the quote or get our point out, they would refuse to run the letter and would not explain why.

So I started doing some guerrilla blogging and sending my points by email to the SF Weekly/New Times people-and, of course, to Mike safely hunkered down in his foxhole in Phoenix.

The classic was when the SF Weekly/New Times/Lacey gave me a Best of award in 2003 for “Best Local Psychic.” It read: “Move over, Madam Zolta, at least when it comes to predicting the outcome of wars, Bruce-watchers will recall with glee his most recent howler, an April 2 Bay Guardian cover story headlined ‘The New Vietnam.’ The article was accompanies by an all caps heading and a photo of a panic-stricken U.S. serviceman in Iraq, cowering behind a huge fireball. The clear message: Look out, folks; this new war’s gonna be as deep a sinkhole as the old one. Comparing a modern U.S. war to Vietnam-how edgy! How brilliant! How original! And how did the prediction pan out? Let’s see now: More than 50,000 U.S. soldiers got killed in Vietnam vs. about l00 in Iraq. Vietnam lasted more than l0 years; Iraq lasted less than a month (effectively ending about two weeks after the story ran.) Vietnam destroyed a U.S. president, while Iraq turned one into an action hero. Well, you get the picture. Trying to draw analogies between Vietnam and Iraq is as ridiculous as Brugmann’s other pet causes. Scores of reputable publications around the nation opposed the Iraq war, but did so in a thoughtful, intelligent manner. Leave it to the SFBG, our favorite political pamphlet, to help delegitimize yet another liberal cause. Bush, Rumsfeld, and Ashcroft send their sincerest thanks, Bruce.”

Three years later, the war drags on, “reputable publications” all over the country are calling it another Vietnam–and Lacey and his Best of writers and editors look like fools and we still don’t know what the Lacey/New Times position is on Bush, the war, and the occupation. But this is vintage Lacey and vintage New Times politics distilled into their publication run largely on a centralized format out of Phoenix. The key point: the article was not bylined and I tried, again and again by guerrilla email and phone calls to Lacey and his SF Weekly editors, to get someone to say who conceived, wrote, and edited the item. Nobody would fess up. But I was told reliably that the writer was the cartoonist Dan Siegler and the editor was John Mecklin, then reported to be Lacey’s favorite editor and hand-picked by Lacey to take on the Guardian in San Francisco. I confronted them with emails, asking for confirmation or comment. I have not gotten any to this very day.

Alas, that in a nutshell is the political and journalistic and ethical policies that Lacey and the New Times have imposed on the Voice. No more liberal politics. No more James Ridgeway in Washington. No more Press Critic Syd Schanberg and no more press clips columns. No regular section criticizing the Bush administration and the war. No more editorials and no more endorsements and no more legendary Voice thundering away on the major New York and national issues of the day that cry out for a strong news and editorial voice from the Left.

And, according to the Times story, Voice layoffs and firings that “decimated the senior ranks of its arts staff,” including theater editor Jorge Morales, dance editor Elizabeth Zimmer, senior editor in charge of books Ed Park, art director Minh Uong, and Robert Cristgau, 64, who as a senior editor and longtime pop musit critic “helped put the Voice on the map,” as the Times put it. Cristgau had been with the Voice off and on since l969 and is quite rightly known as the dean of the Voice.

No more Village Voice as we have known it through all these years.

Instead, the Voice has Mike Lacey. I last ran into Mike at the annual business meeting of the Association of Alternative Newsweeklies (AAN) in Little Rock in June.
I held out my hand for a handshake and said, in a friendly way, “Mike, how are you doing?”
He stopped, looked at me, and said, “Bruce, Go fuck yourself.” And he turned and scampered off, never to return to the meeting and never to come near me again.

Mike, get out out of your bunker and give people a chance to ask you some questions. Start a blog.

P.S. We had fun with the Best of issue. We did a counter Best of, a full page ad, titled “Best Premature Ejaculation,” a special award to the editors of the SF Weekly/New Times.
We ended with this note: “Sorry, folks: WE wish the war in Iraq were as neat and tidy as you, Bush, Rumsfeld, and Ashcroft would like to think it is. But you, um, spoke too soon.”

Our postscripts drove home the points about Lacey’s style of hit and run journalism.
“PS: The real mystery of the city: who wrote the SF Weekly piece? Who assigned it? Who edited it? We’ve been calling, writing, e-mailing, and faxing the local office and corporate headquarters in Phoenix, but nobody will tell us.”

“PPS: Gee, what’s the New Times position on the war, anyway. We can’t seem to figure it out.”

And, let me add in retrospect, what was their position on Bush’s reelection? Well, as far as I can tell, the only endorsement published in any New Times paper came at the end of their syndicated sex column by their gay sex columnist Dan Savage just before election day. Dan, bless his heart, came out for Kerry and is now pushing publicly for impeachment. Where’s Mike? Mike? Mike? B3

A final PS point: If any one at New Times is still wondering about their pretty little month-long war that turned a president into an action hero, check out This nice item from the NY Times. We’re still at war, Mike, and kids are still dying. In case you hadn’t noticed.
‘Voice’ Staffers To Be Crying Into Their Bongs Tonight?

The Dean is Dead

‘Voice’ Issues Statement on Staff Decimation

WEDNESDAY

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AUG 2

Californian campaigns

Come to a campaign finance reform panel with Kris Greenlee of California Common Cause; Maria Guillen of SEIU Local 790; and Dan Purnell of the City of Oakland Public Ethics Commission. The panel – moderated by Tony West, a UC Hastings College of the Law board member – will discuss how to take reforms to the state level. (Deborah Giattina)

Noon-1 p.m.
Commonwealth Club of California
595 Market, second floor, SF
Free, advance registration required
(415) 597-6700

Music

International Youth Music Festival

Musical whiz kids from around the United States and Europe converge on San Francisco for a run of orchestral shows at SF landmarks St. Mary’s Cathedral (Wed/2), Mission Dolores (Mon/7), and Grace Cathedral (Tues/8). The chamber orchestra will perform music by Dvořák, Brahms, Shostakovitch, and others. With performers ranging in age from 12 to 21, prepare to be blown away by the level of play and prodigious talent. (Joseph DeFranceschi)

7:30 p.m.
St. Mary’s Cathedral
1111 Gough
$10-$16
(510) 595-9378
www.youthmusicinternational.com

Sunburned

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› amanda@sfbg.com
The Mayor’s Office of Communications has for months been fighting with Sup. Chris Daly and several unrelated activists over the release of public documents. By denying and ignoring Sunshine Ordinance requests — including some by the Guardian — the office has garnered a reputation for secrecy that has transformed a disparate group of activists into a united force pushing the boundaries of the city’s landmark open government law.
The Sunshine Ordinance Task Force (SOTF) on July 25 found the MOC in violation of the Sunshine Ordinance on two counts, but the mayor’s spokespeople defied its decision and refused to release seven pages of MOC e-mails that Daly requested. Jennifer Petrucione, who spoke for the mayor at the meeting and left before a final decision had been reached on one of the violations, told the Guardian, “I was contemptuous of the process.”
Her view and that of mayoral press secretary Peter Ragone, as they explained to the Guardian, is that the voluminous nature of some requests and the political motivations of document requesters like Daly violate the spirit of the Sunshine Ordinance, which voters passed in 1993 to encourage public access to how decisions are made in city hall. Instead of disclosing documents, the MOC has found loopholes in the broadly written law permitting them to hide information.
“We have the right to withhold certain documents if they are recommendations,” Petrucione told us July 28, even though the task force generally supports disclosure of such documents. In another case of ignoring a request, she chalked it up to an accident: “That was not us trying to avoid Sunshine, it was us doing it too quickly and overlooking things.”
While both Ragone and Petrucione insisted it’s their policy to release everything they can, even if it’s logistically difficult given the volume of requests they receive, they’re still having a hard time producing documents in a timely fashion. So some activists have reacted to early inaction with ever more voluminous and complicated requests.
The day after we discussed the MOC Sunshine Ordinance policies with Petrucione and Ragone, Mayor Gavin Newsom appeared at a town hall meeting in the Richmond, where we asked him about the dispute with Daly’s office. “I haven’t been privy to the details,” he told us. “I would like to see us readily provide whatever information is being requested. I said, ‘Peter, just send all the information, even in the spirit of the ordinance. We have nothing to hide.’”
Two days later, Petrucione called the Guardian to say the mayor had ordered her office to release the disputed documents after all. She told us, “You guys want to make an issue of it, so we decided to just put them out there.”
BURIED DOCUMENTS
The disputed e-mails requested by Sup. Daly involve Ragone’s purchase last year of a tenancy in common (TIC) from which two disabled residents had been evicted by a landlord evoking the Ellis Act, as first reported by the blog www.beyondchron.org.
Daly was curious if there might be any connection between Ragone’s new digs and Newsom’s vetoes of proposals that would have protected tenants from those kinds of evictions. Daly’s office filed an immediate disclosure request for any documents regarding evictions or condominium conversions.
After the MOC initially responded that they didn’t have any such documents, which Daly’s office didn’t believe, the issue dragged out over four months in front of the SOTF, with the MOC eventually turning over about 25 relevant documents but withholding seven e-mails, with Petrucione citing Section 67.24 of the Sunshine Ordinance: “Only the recommendation of the author may, in such circumstances, be withheld as exempt.”
Daly appeared at the meeting to speak on his own behalf. “I’m not attempting to have a gotcha on the Mayor’s Office. I’m attempting to form a decision,” he said.
The task force doesn’t have the power of subpoena or investigative authority — its members can’t look at the e-mails and decide if they’re public — so the matter was referred to the Ethics Commission, which does. Petrucione, who had the documents at the meeting, could have just handed them to Daly. She told the Guardian, “We’re not concerned about what the e-mails say. We’re trying to adhere to the letter and the spirit of the law.”
In fact, the documents contained only mildly embarrassing information, with a pair of e-mails from Petrucione plotting ways to overshadow the news of Newsom’s tenant protection veto last September by releasing word of the veto late on a Friday and coupling it with a high-profile announcement of San Francisco’s Hurricane Katrina relief efforts, “which will bury any interest in the Ellis release.”
But the MOC’s resistance to disclosure — both to Daly and to activists also seeking information during that same time period — has only served to galvanize those seeking public records.
ACTIVISTS’ SUNRISE
Everyone starts with a little kernel of concern, a reason to wonder or worry about what those elected officials are up to. Kimo Crossman last year wanted to know more about the sketchy municipal wi-fi deal with Google and Earthlink that Newsom was proposing. After hitting initial roadblocks when making requests for specific information like a copy of the contract, Crossman started asking for reams of documents, anything remotely related to the TechConnect plan. His concerns have now expanded to disaster preparedness issues and finally to the Sunshine Ordinance itself.
Last week at the SOTF meeting, where Crossman is now a regular member of the audience, he filed a complaint that the mayor had not provided the opportunity for public comment at a Disaster Council meeting June 5. After reviewing video and transcripts of the meeting and hearing Petrucione’s evolving explanations, the task force found a violation.
Crossman — who at one time was being considered for “vexatious litigant” status by city officials who wanted to tone down his voluminous requests — was pleased and said, “I thought it was a success that the mayor was held accountable to Sunshine just like everyone else in the city.”
Perhaps the violation will inspire the Mayor’s Office to fulfill the outstanding records requests of other citizens, like Wayne Lanier, who had a little home improvement issue.
About a year ago, Lanier and a few of his neighbors repaired the sidewalk around a few trees and planted some flowerpots in front of their homes. Then the city slapped them with a $700 tax, under the Occupancy Assessment Fee for Various Encroachments.
The ordinance was introduced by the mayor and passed the Board of Supervisors in July 2005. It was designed to tax property owners who eat up the public right-of-way with stairways and fences, but the ordinance became what Lanier likes to call the “tree and beauty tax.”
Lanier wanted to know what kinds of meetings and discussions had led up to this ordinance, so in March he sent a Sunshine Ordinance request to Newsom. “I requested his calendar prior to July,” Lanier told the Guardian. “A very simple e-mail request under the Sunshine act.”
Lanier says he has yet to receive an answer to his request, let alone any correspondence or acknowledgement from the Mayor’s Office that they’re working on it. Later, he had concerns about avian flu, where he was again rebuffed in his attempt to get documents.
THE PRICE OF DELAY
The frustrating stories of Crossman and Lanier eventually caught the interest of Christian Holmer, who championed their causes and set out with Crossman on a project they think could streamline the practice of releasing public documents.
Holmer is the secretary of the Panhandle Residents Organization Stanyan Fulton, which has a Web site compendium of all the Sunshine Ordinance requests he knows about. He posts a running countdown of how many days each request has been outstanding, as well as details on the runaround and excuses he receives from city officials.
His goal is to standardize how various departments produce documents and make them more easily accessible to the public “in as few keystrokes as possible,” as he puts it. And to do that, he’s made lots of Sunshine Ordinance requests, which MOC officials argue are too onerous for them to deal with, particularly given Holmer’s lengthy, heavily annotated e-mails, which he fires off to a variety of city departments on a daily basis.
As the many city reps who receive these e-mails will attest, it can take well over an hour to read the entire contents of one e-mail, only to find out it includes enough attachments to keep the reader busy for the better part of a day.
Petrucione and Ragone, who have received Holmer’s request for the mayor’s daily calendar but not yet answered it, cite the difficulty in figuring out exactly what Holmer wants. However, even the Guardian’s simply worded requests for that same information, as well as documents related to the recent health care measure, weren’t filled by the timelines set out by the ordinance.
Ragone says his office is just trying to keep up with the deluge of document requests. He raised the possibility of reforms, such as a designated Sunshine Ordinance officer or standardized form, but the MOC hasn’t formally proposed any.
Matt Dorsey of the City Attorney’s Office is wary of standardizing the system: “I don’t think the law should create a barrier — a ‘you didn’t sign this so I don’t have to answer it’ situation.” SFBG

{Empty title}

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› tredmond@sfbg.com
The local daily newspapers haven’t paid much attention to it, but there’s a ferocious fuss going on in the blog world over political power and journalistic ethics, and it’s all swirling around a 34-year-old who runs the world’s most popular political blog out of his home in Berkeley.
It’s a fascinating story because of what it says about the revolution that’s taking place in media and politics today.
Markos Moulitsas Zuniga runs the blog DailyKos, which started off as just another liberal political blog by a liberal political activist (who used to be a political consultant and worked at one point for Howard Dean). But in the past three years it’s become phenomenally successful: DailyKos.com gets about a half million page views a day, which puts it in the league not with most of the other blogs but with major mainstream news operations. Moulitsas has no staff — no reporters, no editors, no reviewers, no nothing. His readers — or, more accurately, the members of the huge and growing DailyKos community of 92,000 registered users — provide almost all of the content. They write their own personal blogs called diaries, they comment on each other’s stuff, they promote (and dis) candidates, and they have formed the best known place in the country for the Dean wing of the Democratic Party to meet and confer.
The politicians have noticed, big time: Leading Democrats (like Rep. Nancy Pelosi) post on the site. A couple of months ago, a former president (Jimmy Carter) stopped by to blog. When the Kossacks organized an annual convention this summer, Sen. Harry Reid and presidential hopeful Mark Warner showed up.
So now DailyKos is in the big leagues — and not surprisingly, critics are starting to snipe.
The latest: Moulitsas and Jerome Armstrong, who runs MyDD.com, have written a book together, and are longtime pals. (Moulitsas calls Armstrong his “blogfather.”) Armstrong is an active political consultant, and the candidates he works for sometimes get nice mentions on DailyKos. There’s been a lot of mumbling about how there might be some kind of sordid conspiracy here (hire Armstrong, get plugged on DailyKos), and it all became louder when the New Republic got word that Armstrong had been accused of illegally hyping stocks on the Web several years ago — and that Moulitsas had sent an e-mail around to a private mailing list urging other bloggers to keep it quiet.
The right-wingers (including David Brooks of the New York Times) have had a field day with this, acting as if they’ve finally unmasked the Great Left-Wing Conspiracy. Actually, the fact that it all came out in the open pretty quickly shows what a lousy secret cabal the bloggers make. Mostly, Moulitsas’s e-mail was just pretty stupid. But the whole episode raises the question: At what point do bloggers have a responsibility to be accountable, to have ethics and disclosure standards the way “mainstream” journalists are supposed to?
I e-mailed Moulitsas about it, and he’s pretty clear: “People like you keep trying to pound a round peg into a square hole,” he said. “This is citizen media. It is what it is … Old media might want the media landscape to resemble their old world, but it doesn’t, not anymore.”
Which is absolutely true. And I love DailyKos. And the blog explosion is perhaps the most democratic thing that’s happened to media in the history of civilization.
But at some point, citizen journalism isn’t enough — you need reporters and editors and a real staff to give the public real information about the world. And when that happens in the blog world (and it will soon) a lot of the rules are going to change. SFBG

Business ethics 101

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› gwschulz@sfbg.com

Marcoa Publishing seems to be at the top of its game. The San Diegobased company bills itself as the "nation’s largest publisher of advertising-supported, local business publications."

It rarely misses an opportunity to remind prospective advertising clients and employees alike about its exclusive contract to print industry-specific guides and an annual membership directory for the San Francisco Chamber of Commerce, of which it is also a member and business partner.

In fact, Marcoa’s San Francisco offices are located just four floors below the Chamber in the heart of the Financial District, at 235 Montgomery St. But what the oldest Chamber of Commerce in the western United States may not have known is that its "exclusive publisher" is being investigated by the California Department of Industrial Relations (DIR) for possible violations of the state’s labor code.

And now the question is: Does the business community’s biggest booster have a blind spot for dubious ethics?

Paula Ceder went to work as an ad sales specialist for Marcoa’s SF office from her home in November 2004. But despite the fact that she quickly became the San Francisco office’s top seller, she realized that Marcoa had no interest in reimbursing her for business expenses. High-end salespeople regularly spend thousands of dollars a year making personal contact with their clients money that employers generally reimburse.

It’s perfectly common, and in fact legally required, for employers to reimburse workers for such expenses. And Marcoa has even promoted the claim that it offers expense reimbursements in its job postings on Monster.com.

But by the time Ceder left Marcoa, in August 2005 having worked much longer than many former Marcoa employees she told the Guardian she had accrued $2,500 in reimbursable business expenses. Over that nine-month period, she didn’t meet another employee who’d received reimbursed expenses, meaning former Marcoa employees could still be awaiting thousands of dollars in compensation. Marcoa did, however, claim to offer a taxable $10 "parking bonus" for each ad contract that the sales specialists managed to sell. But even then it took her four months to get the "bonus," Ceder said. Some ad buyers can commit as much as $12,000 to a two-page spread.

"As soon as I went to work for Marcoa, it became clear that there was no program for expense reimbursement, and I was aware that that was against the law," Ceder said recently. "That was entirely different than any experience I had ever had. Had I known I was going to have that experience, I would have never gone to work for them."

Section 2802 of the state’s labor code reads: "An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer."

Believing she’d never see the money, she approached the California Labor Commission, which ruled in her favor and granted her $1,693 of the expenses in January. At the hearing, Marcoa CEO Stewart Robertson told the administrative judge he would produce the company’s policy regarding expenses. He never did.

During her tenure, Ceder had managed to squeeze a substantial raise out of Marcoa, due mostly, she said, to her top performance. But she said others weren’t so lucky.

Ceder said she concluded that the company not only failed to maintain any sort of policy regarding expenses but also seemed to systematically shortchange workers, from declining to pay simple business expenses to withholding commission payments for months on end or never making the payments at all. Salespeople often earn a percentage of each ad contract in the form of commission as an incentive to sell, which Marcoa portrayed as a significant part of its compensation package.

"My entire point for pursuing a claim for myself was not to receive my expense reimbursement back, although it’s always nice to get the money you put out," Ceder said. "My aim was twofold: One, to have the state investigate and prosecute Marcoa, so that the result of that investigation and prosecution would be an across-the-board change in Marcoa’s current noncompetitive business practices. And second, to get the Marcoa story out into the public."

Former Marcoa workers we interviewed appeared to corroborate Ceder’s claims.

Mario Sarafraz worked as a salesman at Marcoa for 13 months, but he’s worked elsewhere in sales for 17 years. He said he only "tolerated" Marcoa for so long because he liked working closely with the hotel and restaurant industries for the company’s semiannual Business Meetings and More publication.

"Everything else was a nightmare from the beginning," he said. Sarafraz claimed he never received a single commission check, and added that even in a profession where workers move on quickly, Marcoa "had an extremely high turnover rate."

Virtually everyone we talked to said the sales staff had to share two old computers and the company didn’t allow them access to the database of businesses that had purchased ads. Repeated phone calls to businesses that had already grown disenchanted with Marcoa were common, they complained.

A former office manager who asked not to be identified said she believed the Chamber was largely kept in the dark about annoyed advertisers waiting for sometimes long-delayed publication dates and embittered former Marcoa employees.

Carol Piasente, the Chamber’s vice president of communications, said the group had no comment and that the issue was a "personnel matter between Marcoa and their employees." Steve Falk, the Chamber’s CEO and a former publisher of the San Francisco Chronicle, wrote in an e-mail that he "had not heard any complaints about Marcoa" but failed to respond to follow-up questions. No one at the Chamber would confirm whether the group received annual fees from Marcoa for revenue generated from ads placed in Chamber publications.

"It was by far the most shady company I’ve ever worked for," one saleswoman, who also requested anonymity, said. "They turn and burn employees like you would not believe."

Although she too became a top seller for the company, she said she never received commission and never saw her last paycheck.

Dean Fryer, a spokesperson for the DIR’s Division of Labor Standards Enforcement, told us that agency officials pursue an investigation based on the case’s merit.

"On all cases that involve wages due employees, we’ll move forward to collect those wages," he said. "Our primary goal is to collect money due employees."

In Marcoa’s San Francisco office of 10 or so employees, sales can reach anywhere between $1 million and $3 million annually. The company also publishes industry, relocation, and real estate guides in at least four other major cities, including San Jose, Dallas, Austin, and Houston. Elsewhere, Marcoa publishes local resource guides for new trainees at 80 of the nation’s military installations, according to the company’s Web site.

Marcoa’s San Francisco publisher Bart Lally and CEO Robertson declined to respond to a series of detailed e-mail questions.

"Marcoa absolutely believes that it is in compliance with all relevant labor laws," Robertson wrote in an e-mail. "However, we are not going to provide specific responses to any of your questions."

Sarafraz insisted it’s not his nature to complain.

"As far as training and having a working system, I’ve never heard of an organization so out of place," he said. "Every organization has shortcomings. But these people just didn’t care." SFBG

Last call?

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› news@sfbg.com

Concerns about public drinking in North Beach and stifled public debate are conspiring to cripple a pair of popular outdoor festivals, possibly creating a troubling precedent for other events at the start of San Francisco’s festival and street fair season.

"We’ll have to cancel this year’s festival," Robbie Kowal, who runs the North Beach Jazz Festival, said of the possibility of not getting his alcohol permit. "Seventy-five percent of our funding comes from the sale of alcohol."

The Recreation and Park Commission’s Operations Committee is set to review the jazz festival’s permit May 3, and if sentiments among the three mayor-appointed commissioners haven’t changed, they might not allow Kowal and his partners, John Miles and Alistair Monroe, to set up bars and serve drinks to local jazz fans in Washington Square Park, as they’ve been doing without challenge for the past 12 years.

"We’ve never even had a hearing to get a permit before," Kowal said. "We’ve had no arrests and no [California Department of Alcoholic Beverage Control] violations. We’re being punished when we haven’t done anything wrong. We’re caught up in this whole North Beach Festival situation."

Kowal was referring to a dispute involving the neighborhood’s other popular street fair, the North Beach Festival, a 52-year street fair that had its permission to sell alcohol in the park yanked this year. The festival is hosted by the North Beach Chamber of Commerce, whose director, Marsha Garland, is a political adversary of the area’s supervisor, Board of Supervisors president Aaron Peskin.

The problem started when parks general manager Yomi Agunbiade determined that a long-standing ban on alcohol in city parks should also apply during festivals. Two out of three members of the Rec and Park Commission’s Operations Committee agreed with that ruling during an April 5 meeting, and it became official policy.

Then, as the North Beach Festival permit went to the full commission for approval April 20, the words "permission to serve beer and wine" disappeared from the agenda item. Those words had appeared on an earlier version of the agenda, allowing the commission to grant what Garland had received with every permit for the last 20 years. The agenda change meant the commission couldn’t even discuss the alcohol issue, let allow issue a permit that allowed it.

Commissioner Jim Lazarus questioned a representative of the City Attorney’s Office about it and was told that the full commission couldn’t hear the policy if the general manager and Operations Committee were in agreement.

"I was taken aback by the fact that the full request of the applicant to serve beer and wine was not on the calendar," Lazarus told us. "I’ve been on the commission for three and a half years, and I’ve never seen that happen before for this kind of issue."

This story is still unfolding, but observers are openly wondering whether this is an isolated case of political sabotage or whether this battle over beer could hurt the summer festival season.

Wine and beer sales have always played a critical role in the financial viability of many of the city’s summer festivals. In a city that’s never been afraid of a liberal pour, many are beginning to wonder if the good times are over, and if so, why?

"The Rec and Park meeting was so disheartening, and if it’s used as a precedent in any way, it will harm other events. If the oldest street fair in this city can be chipped away at like that, who’s next?" said Lindsey Jones, executive director of SF Pride, the largest LGBT festival in the country.

Some North Beach residents think this Rec and Park procedural shell game is punishment for Garland and her organization’s opposition to Peskin, whom they blame for the change.

"Aaron Peskin would like to take Marsha Garland’s livelihood away," said Richard Hanlin, a landlord and 30-year resident of North Beach who filed a complaint over the incident with the Ethics Commission.

"They want to railroad Marsha," said Lynn Jefferson, president of the civic group North Beach Neighbors. "They want to see her out of business. If she doesn’t have those alcohol sales, she’ll personally go bankrupt."

At the heart of the Garland-Peskin beef is a 2003 battle over a lot at 701 Lombard St. known as "the Triangle," which the owner wanted to develop but which the Telegraph Hill Dwellers wanted for a park after they found a deed restriction indicating it should be considered for open space. Peskin agreed with the group he once led and had the city seize the land by eminent domain, drawing the wrath of Garland and others who saw it as an abuse of government power.

Peskin told the Guardian that it’s true he doesn’t care for Garland, but that he did nothing improper to influence the commission’s decision or agenda. However, he added that he’s made no secret of his opposition to fencing off much of the park to create a beer garden and that he’s made that point to Rec and Park every year since the festival’s beer garden started taking over the park in 2003.

“Just let the people use Washington Square Park. It’s the commons of North Beach,” Peskin said. “The park should be open to people of all ages 365 days a year. That’s just how I feel.”

Yet Peskin said that neither the North Beach Jazz Festival, which doesn’t segregate people by age, nor festivals that use less neighborhood-centered parks, like the Civic Center and Golden Gate Park, should be held to the same standard. In fact, he plans to speak out in favor of the jazz festival’s right to sell alcohol during the May 3 meeting.

Access became the buzzword this year, in response to last year’s decision by the San Francisco Police Department to gate two-thirds of the park off as a beer garden, effectively prohibiting many underage festivalgoers from actually entering a large part of the park. The section near the playground remained ungated, but many families were disillusioned by the penning of the party.

Enter the North Beach Merchants Association, a two-year-old rival of the Chamber of Commerce with stated concerns about booze. President Anthony Gantner learned that the park code banned alcohol from being served in any of the parks listed in Section 4.10, which includes Washington Square as well as nearly every other greenway in the city, unless by permission of the Recreation and Park Commission, which should only be granted as long as it "does not interfere with the public’s use and enjoyment of the park."

Gantner and Peskin both argue that the beer garden does interfere with the right of those under 21 to use the park. "The Chamber is basically doing a fair, and that’s it," Gantner said. "A lot of its members are bars, and they run a very large fair with beer gardens that result in incidents on the streets for merchants."

Though Garland contends that the festival is an economic stimulator, resulting in an 80 percent increase in sales for local businesses, Gantner claims that a number of businesses don’t benefit from the increased foot traffic. He associates alcohol with the congruent crime issues that crop up when the clubs let out on Broadway, and thinks that selling beer and wine in the park only accelerates problems in the streets after the festival ends at 6 p.m.

Gantner has the ear of local police, who are understaffed by 20 percent and looking for any way to lower costs by deploying fewer cops. "It used to be we could police these events with full staff and overtime, but now we’re trying to police them with less resources, and the events themselves are growing," Central Station Capt. James Dudley said.

He’s also concerned about the party after the party. The police average five alcohol-related arrests on a typical Friday night in North Beach, most after the bars close. But those numbers don’t change much during festival weekend, leading many to question the logic behind banning sales of alcohol in the park. Besides, if sales were banned, many festivalgoers would simply sneak it in. Even one police officer, who didn’t want to be named, told us, "If I went to sit in that park to listen to music and couldn’t buy beer, I’d probably try pretty hard to sneak some in."

At the April 20 Rec and Park meeting, Garland presented alternative solutions and site plans for selling beer and wine, which represents $66,000 worth of income the festival can’t afford to lose. Beyond her openness to negotiations, Rec and Park heard overwhelming support for the festival in the form of petitions and comments from 30 neighbors and business owners who spoke during the general public comment portion of the meeting.

Father John Malloy of the Saints Peter and Paul Church, which is adjacent to the park, spoke in support of Garland’s request. "I think I have the most weddings and the most funerals in the city," he said. "I’m praying that we don’t have a funeral for the North Beach Festival. If anyone should be against alcohol, it should be the priest of a church."

So who are the teetotalers? Testimony included 10 complaints from members of the Telegraph Hill Dwellers, Friends of Washington Square, and the North Beach Merchants Association, as well as Gantner and neighborhood activist Mark Bruno, who came down from Peskin’s office, where he was watching the hearing, to testify.

Commissioner Megan Levitan said, "If anyone knows me, they know I like my wine," before going on to explain that she was born in North Beach and even used to serve beer at O’Reilly’s Beer and Oyster Festival. However, she said, she’s a mother now, and parks are important to her.

"It does change a park when alcohol is there," she said. "I do not believe we should serve alcohol in the park."

Will that still be her stance May 3 when the North Beach Jazz Festival requests its permit? The jazz fest has never had beer gardens, and the organizers don’t want them. Instead, they set up minibars throughout the park, which remains ungated, allowing complete access for all ages.

Although there is hired security and local police on hand, by and large people are responsible for themselves. The organizers say it’s just like going to a restaurant for a meal and a drink, except in this case it’s outside, with a stage and free live music.

Though Kowal remains optimistic, he’s rallying as much support as possible, even turning the May 3 meeting into an event itself on his Web site (www.sunsettickets.com). His partners, Monroe and Miles, were concerned enough to swing by City Hall to see Peskin, who agreed to testify and help the Jazz Festival retain the right to sell booze.

"The first person to write a check to start this festival was Mayor Willie Brown," Kowal said. "Peskin has always been a big supporter of the festival, which is why we think it will all work out."

The festival is a labor of love for the three organizers, who barely break even to put the event on; after expenses are covered, any additional profit from the sale of alcohol is donated to Conservation Value, a nonprofit organization that aids consumers in making smart purchases.

"We were the first fair to use Washington Square Park," Monroe, the founding father of the jazz festival, said. "We’re standing up for the right to access the park. It’s not about ‘he said, she said’ or who did what to whom. It’s about hearing free live music."

So now comes the moment when we find out whether this is about alcohol, parks, or simply politics, and whether future street fairs could feel the pinch of renewed temperance. If the jazz festival gets to sell booze, Garland’s supporters argue, that will represent a bias against the North Beach Festival.

The commission will hear Garland’s appeal at the end of May, just two weeks before the festival begins. With contracts already signed and schedules set, the stakes are high. Owing to lack of funds, Garland has already canceled the poetry, street chalk art, and family circus components of the fair. She did receive an e-mail from Levitan promising a personal donation to put toward the street chalk art competition. Even so, she’s preparing for a funeral.

And if alcohol is prohibited at the jazz festival, it could send out a ripple of concern among street fair promoters and lovers around the city. To be a part of the decision, stop by the meeting and have a say. SFBG

PS This weekend’s How Weird Street Faire, on May 7, centered at Howard and 12th Streets, will have beer gardens in addition to seven stages of music and performances. But organizers warn that it could be the last festival because the SFPD is now demanding $14,000, a 275 percent increase from the police fees organizers paid last year.

operations committee hearing

May 3, 2 p.m.

City Hall, Room 416

1 Dr. Carlton B. Goodlett Place, SF

(415) 831-2750

www.sfgov.org

Follow the Money

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It’s an old, old adage, but that doesn’t make it any less true: follow the money. And in Rep. Richard Pombo’s case, that money leads to some very interesting places, such as Abramoff, oil and Indians.

According to the nonpartisan Open Secrets website, which monitors campaign contributions, Pombo received some $10,000 from the Keep Our Majority PAC, which is supported by disgraced lobbyist Jack Abramoff. The former Capitol Hill power broker and convicted felon is also one of the six top donors to Pombo’s RICH Political Action Committee. And Pombo has received more than $500,000 in donations from Indian tribes, members and lobbyists, despite the fact that there are no Indian tribes in the 11th congressional district. Two of the tribes linked to Abramoff, the Saginaw Chippewa and the Mississippi Choctaw, have given Pombo more than $10,000.

Pombo is such a popular fellow with Washington D.C. lobbyists that he made a very special cut. In late 2005, Citizens for Responsibility and Ethics in Washington (CREW), a liberal D.C. watchdog, named Pombo as one of the 13 Most Corrupt Members of Congress: “Pombo’s ethics violations include: misuse of the franking privilege, accepting campaign contributions in return for legislative assistance, keeping family members on his campaign payroll, and misusing official resources,” the group said.

Pombo spokesman Wayne Johnson, not surprisingly, disagrees both with CREW and those alleging that such donations are an indicator of any impropriety. He asserts there was a lot of “sloppy reporting” that in the original Abramoff stories that made a lot of unsubstantiated allegations. “There are Congress members who had a relationship with Jack and Richard was not one of ‘em,” he stated. “Abramoff gave Pombo $7,000 over a number of years and that was returned as soon as Abramoff was exposed.” As far as the Indian tribes go, Johnson says they supported Pombo because he helped the tribes get federal recognition, not because of any connection with Abramoff.

But Abramoff and Indian tribes are not the only people who directly or indirectly gave Pombo scads of cash. The two largest industrial contributors to Pombo are the agricultural and real estate sectors—which makes sense given that those are the dominant industries in his area. But his third largest source of campaign funds is the oil and gas industry, which has given him $178,788 since 1989. Pombo is chair of the house Committee on Resources, which oversees those industries. Chevron Texaco alone gave him $21,500. 

There are plenty of reasons for the oil giant to like Pombo. He opposed a Chinese bid to purchase Unocal — Chevron also wanted to buy Unocal – and has tried to lift the moratorium on oil drilling off the coast of California.

Early this year, investigative reporters with the Los Angeles Times uncovered two cases of what looks suspiciously like back scratching between Pombo and the extractive industries. In 1999, Pombo and Rep John Doolittle (R-Roseville) linked up to put the kibosh on a Federal Deposit Insurance Corporation investigation of Charles Hurwitz, of Maxxam lumber clear-cutting infamy, over his involvement in a collapsed Texas savings and loan company. According to the Times the legislators, both known as “protégés of [Tom] Delay” subpoenaed documents from the confidential FDIC investigation of Hurwitz and promptly published them in the Congressional Record, styming the government’s case. Hurwitz subsequently gave Pombo $1,000 and Doolittle $5,000.

Another LA Times article noted that in late 2005, just three months before Pombo inserted language into a budget bill—without debate or hearings—that would have opened public lands, including national forests, to mining operations, Washington lobbyist Duane Gibson organized a $1,000 a plate fundraiser for Pombo. Gibson is a former aide to Pombo’s House Resource Committee and is now under scrutiny in the Abramoff scandal. While the total dollar amount raised that night is unknown, the paper revealed several mining companies made donations to Pombo. Gibson, who also personally contributed $1,000, also represented some of those companies.  

In 2004, Pombo wrote a letter to then Secretary of the Interior Gale Norton urging her to suspend environmental regulations that the wind-power industry opposed. He neglected to mention that his parents own a wind farm on the Altamont Pass, nor did he mention his own stake in his parent’s ranch. Although wind-farm regulation does fall under his committee, it would have been less unseemly had he acknowledged his potential conflict of interest.

In other family matters, Pombo got into hot water for trying to bill the taxpayers almost $5,000 for a two-week family RV vacation by saying it was government related business because he visited several national parks.

Pombo, like many representatives Democrat and Republican, believes in keeping it in the family. He has paid out $357,325 to his wife and brother for bookkeeping, fundraising, consulting and other services to his political activities.

Rep. George Miller (D-Vallejo/Concord) has twice written Pombo with requests that he investigate allegations of sweatshop conditions, prostitution and gambling on the Marianas Islands. No such investigation has been initiated, but readers might remember that Abramoff lobbied extensively to oppose the implementation of U.S. labor and immigration regulations in the Marianas, which are U.S. trust territories. According to Time magazine, Pombo received $8,050 from Northern Mariana islanders following a visit to the islands.

For further fun facts, check out www.opensecrets.org for who gives Pombo what money or Citizens for Responsibility and Ethics in Washington (CREW) www.citizensforethics.org.

Research assistance by Erin Podlipnik

 

The political puppeteer

0

By offering envelope-pushing legal and political advice at key moments in the fall campaign, attorney Jim Sutton was perhaps the single most influential individual behind the victories of Mayor Gavin Newsom and District Attorney Kamala Harris.
In the process, Sutton solidified his reputation as the dark prince of San Francisco elections, a hired gun who helps downtown interests and well-funded campaigns continue to dominate the electoral field even after voters passed reforms that restricted campaign giving and spending and required more official disclosure.
“He knows more election law than anyone, and he knows it better than anyone else,” local political consultant David Looman told the Bay Guardian. “He is the guy you call.”
New era, new player
Sutton, 40, stepped on the political stage just as voters were going to the polls in the fall of 1997 to demand more transparency in campaigns, a reaction to the leadership of Mayor Willie Brown and the dealings of powerhouse consultants like Jack Davis and Robert Barnes. At the time Sutton worked for Nielsen, Merksamer, Parrinello, Mueller, and Naylor, a Mill Valley firm that specializes in election law.
Sutton took on mostly big-money campaigns backed by downtown interests — such as Brown’s 1999 reelection and Pacific Gas and Electric Co.’s successful, multimillion-­dollar bids to squelch the public power movement in 2001 and 2002. Highly versed in the minutia of campaign finance law, he became a major player in electoral politics in San Francisco — and across the state.
“He is one of a small handful of very influential political law attorneys who typically represent moneyed, influential candidates,” California Common Cause executive director Jim Knox told us. “And he seems to be on something of a crusade right now.”
A search of the San Francisco Ethics Commission’s online database shows that over the past six years, Sutton has acted as treasurer or in another legal capacity for at least 20 campaigns and counts such heavily funded political action committees as the Golden Gate Restaurant Association, the Alice B. Toklas Lesbian Gay Bisexual Transgender Democratic Club, and the San Francisco Association of Realtors among his permanent clients. For that work, which doesn’t include the fall election, he earned at least $750,000.
Many of the city’s progressive activists and leaders see him as a dark agent — a tool only well-heeled interests can hire to navigate regulatory loopholes in order to spend as much as possible, even it means pushing the limits of the law, to sway voters.
“He’s an opportunistic lawyer who works against populist issues,” Sup. Tom Ammiano said.
Moreover, activists and state campaign finance experts say, he exerts an extraordinary level of influence over the city’s campaign regulators, including the top staff at the Ethics Commission and the deputy city attorneys who work with that agency.
“He is a high-powered fixer who has relationships with people in power that let him deliver for his clients in a way that leaves the less-connected among us flabbergasted,” said Marc Solomon, a Green Party member who worked on Sup. Matt Gonzalez’s mayoral campaign.
For his part, Sutton says that’s nonsense.
“There’s absolutely no proof or evidence of that,” Sutton told us. “I’m a professional, and I don’t want special access. I don’t need it, because I have a knowledge of the law.”
Rising to the top
By the time Sutton left his old firm last May to create Sutton and Associates, he had sealed his reputation as a go-to guy and counted among his clients the man who would be mayor. Sutton was everywhere. Consider:
• Having lawyered Newsom through the embarrassing flap in early 2003 over the $1 million loan from mentor Gordon Getty that (whoops!) Newsom neglected to disclose on his economic interest statements, Sutton served as treasurer to the Marina District supervisor’s mayoral campaign.
• When district attorney candidate Harris’s consultants realized their client was facing disaster if they couldn’t get her out of a legally binding pledge she signed in January 2003 to abide by the spending limits set in that race, they summoned Sutton, who got her out of the jam. The Ethics Commission’s decision to lift the spending limit was one of the agency’s most egregious acts in years and was truly an extraordinary event, activists say. It allowed Harris to spend hundreds of thousands of dollars to get past Bill Fazio in the runoff and eventually beat incumbent Terence Hallinan.
• Sutton handled the regulatory filing procedures for the California Urban Issues Project, a nonprofit lobbying outfit that churned out campaign mailers slamming Hallinan and mayoral contender Gonzalez for, among other charges, an unwillingness to crack down on the activities of homeless people. Though the group’s status prevents it from taking positions on candidates, the mailers clearly favored one candidate over the other. However, since the pieces didn’t actually include a “vote for candidate X” command, they fell within the bounds of the law as recently interpreted by the appellate courts, Sutton told us.
“What I do is say, ‘I am the lawyer. It’s my job to say this is what the law says. This is what it does or doesn’t allow,’ ” Sutton said. “It’s not about any kind of ideology on my part.”
• Sutton also served as treasurer for the campaigns behind two successful measures funded by downtown interests: the clean-streets initiative (Proposition C) and the controversial anti-panhandling legislation sponsored by Newsom (Proposition M). Interestingly, Harris particularly benefited because of her support for Prop. M. San Francisco pollster David Binder told us in December that her position on Prop. M helped her win over much of Fazio’s base and was key to her victory.
• Sutton’s expertise helped Newsom and Harris raise money in larger chunks during the runoff than they might otherwise have done. That’s because Sutton is keenly aware of a detail in the city’s campaign finance law that says if a candidate carries “accrued expenses” from the general election to the runoff, that candidate can collect $500 (instead of $250) from contributors. He should be — the ruling came as a result of his suggestion to local regulators.
For practical purposes, it can become a matter of shuffling the books. Newsom and Harris had so much cash behind their candidacies that it’s tough to believe they had any real debt. And in the case of at least Newsom, the amount of “debt” certainly seemed to be a moving target.
Shortly after the general election, Newsom campaign manger Eric Jaye told us he thought Newsom bore roughly $30,000 in accrued expenses. But when the campaign filed the paperwork, Newsom showed $225,322 in unpaid bills (see “Tainted Dough,” 12/03/03).
Neither Hallinan’s nor Gonzalez’s campaign took advantage of this provision in the law, even though Gonzalez treasurer Randy Knox brought it to the candidate’s attention. Gonzalez told us at the time that he didn’t consider such a move ethical.
Learning the ropes
A self-described politics nerd who interned in his state assemblymember’s office in high school, Sutton credits the rigors of the tight-knit environment of Pomona College — more than his three years at Stanford University Law School — with influencing the way he works today.
“I learned early I wasn’t going to get away without doing my homework,” he told us.
After clerking for former California Supreme Court Justice Edward Panelli from 1988 to 1989, he searched for a way to combine his legal degree with his keen interest in politics and government. In 1990 he found his way to Nielsen, Merksamer, though he lived, as he still does, in San Francisco.
Since he knew the city, he evolved into the firm’s attorney who dealt with San Francisco matters, he told us, even though he’s a member of the Republican Party — a rare bird here. In fact, he even served a stint as general counsel for the California Republican Party.
His first work in the city was on behalf of large institutions — the M.H. de Young Memorial Museum’s early bond campaigns, for example. He also made a key alliance with consultant Barnes, who was on his way to building a hugely influential career here and becoming closely connected to former mayor Brown.
In spring 1998, Sutton acted as treasurer for Bay Beautiful, a PAC aimed at defeating Proposition K, which former state senator Quentin L. Kopp put on the ballot to restrict Brown’s control of the development of Treasure Island. (Though the measure passed, the Brown-controlled Board of Supervisors failed to implement it.)
In November 1999, Sutton played a role in the orchestrated independent expenditure campaign on behalf of Brown’s reelection efforts in his handling of the Willie Brown Leadership PAC. The PAC directed some $55,000 into Brown’s bid for a second term (see “The Soft Money Shuffle,” 2/16/00).
At the time, Sutton had gone public with his strong opposition to efforts to restrict spending in political campaigns, writing in the San Francisco Examiner, “Not only does a spending cap decrease the quantity and quality of the issues discussed in the campaigns, it also infringes on First Amendment rights.”
One year after Brown’s reelection, the Leadership PAC, together with the pro-downtown Committee on Jobs, pumped some $67,000 into an unsuccessful bid to defeat Proposition O, which reinstated limits on independent expenditures and provided public financing for campaigns. Sutton handled the legal work for No on O.
No surprise there, Sutton’s critics say. Where money seeks to influence politics, that’s where you’ll find him. Sutton, though, says the list of campaigns he’s served doesn’t reflect his ideology as much as it does his skill set. He told us the best-funded campaigns “tend to have the more complicated legal questions, since they’re going to do more stuff.”
Money and politics
Advocates of campaign finance reform say Sutton has taken his opposition to campaign spending limits on the road, seeking to erode local ordinances that restrict spending.
“Sutton is active all over the state in his opposition to campaign finance reform,” said Paul Ryan, political reform project director for the Los Angeles–based Center for Governmental Studies.
Most recently Sutton testified before the San Diego Ethics Commission at a Jan. 21 hearing on a proposal to strengthen local campaign finance law. Sutton argued the commission should repeal the local law and replace it with the state’s version, which happens to be weaker.
“When we wrote the Political Reform Act of 1974, we put in there that local laws could be stronger than the state law,” Center for Governmental Studies director Bob Stern said. “What we have now is about 100 cities and counties that have gone beyond the state law. What [Sutton] is doing is pushing local jurisdictions to follow the state law only. And that’s unfortunate, because each local jurisdiction needs to deal with its own problems.”
Sutton said he just wants a uniform standard, with the minimal local amendments.
“[Cities and counties] keep making more and more laws, which are making things more and more complicated and difficult for anyone who wants to run for election to figure out,” Sutton said. “It has a dampening effect.”
Ryan and others are concerned Sutton might succeed in discouraging officials in municipalities such as Los Angeles and San Francisco from sticking by their stronger local laws. Compounding their concerns is that Sutton appears to have a great deal of influence over regulatory officials — at least in San Francisco.
Charlie Marsteller, who formerly headed up a San Francisco chapter of California Common Cause, believes the Ethics Commission has for more than a year failed to act on a complaint he filed against Sutton in late 2002, because of Sutton’s influence on the agency. (The complaint was over Sutton’s failure to disclose some $800,000 in contributions from PG&E to a committee aimed at defeating Proposition D, another public power measure.)
“It seems to me they are waiting until after February, when a seat on the commission is up and they’ll be able to replace [Bob Planthold] with a Sutton-friendly commissioner,” Marsteller said. (Assessor-Recorder Mabel Teng is expected to name Planthold’s replacement any day now.)
More recent examples activists point to include the Harris spending-cap matter and the latest: a charge made Jan. 16 by two Ethics Commission staffers that director Ginny Vida ordered the destruction of documents accidentally e-mailed to the agency by a secretary in Sutton’s office. Those documents, which were first reported on in the San Francisco Sentinel, strongly suggest that funds raised by the San Francisco Swearing-In Committee (without contribution limits) for Newsom’s inauguration were used to pay off a long list of consultants who worked on the campaign — a charge Sutton has vehemently denied.
On Jan. 28, Sutton filed paperwork for the committee reporting contributions but not expenditures. The total raised was $317,850 and included donations of $10,000 to $20,000 from such downtown players as Shorenstein Co., Gap founder Don Fisher, the San Francisco Association of Realtors, and Clear Channel.
Though Sutton insists he enjoys no undue influence on local regulators, even one of Harris’s consultants told us Sutton was hired for just that reason. “Jim Sutton has a certain amount of influence with Ginny Vida. He doesn’t think [spending limits] are constitutional,” Looman said. “And I believe that worries her too.”
Vida was on medical leave and couldn’t reached for comment, but her deputy, Mabel Ng, said neither she nor Vida give Sutton special treatment.
“I don’t think he has any more or any less influence than anyone else,” Ng said.
Dealing with Ethics
Sutton’s most impressive act in the Harris controversy was convincing Vida and Ng that Harris didn’t know she was bound to the pledge she signed in January 2003 to stay under the spending cap. Had ethics officials concluded that Harris knew her pledge was binding when she blew the cap sometime in September, they could have disqualified her from the race, according to the terms of the city’s campaign finance law.
Instead the Ethics Commission signed onto a settlement agreement stipulating that Harris’s had been an innocent mistake — though there was plenty of evidence that her campaign officials fully knew the pledge was binding (see Campaign Watch, 9/17/03 and 10/08/03). But in buying into Sutton’s version of events, the commission allowed Harris to continue spending money that helped her win the race.
“To facilitate the needs of Sutton’s clients, [Ethics] staffers gave in to Sutton the way he wanted,” Marsteller said. “The commissioners dropped the ball in that they needed to request an audit to check out the veracity of the statements being made by Harris…. They could hardly decide that the violations by the Harris committee were unintentional absent an audit. It’s one of the greatest demonstrations of incompetence I’ve seen, and Sutton led them into it.”
For his part, Sutton disagrees that Vida gave him an easy of time of it. “They fined [Harris] $34,000, and they made sure we printed flyers and ads telling the public of the mistake,” Sutton said.
That’s true. But Ryan and others view the matter as strong evidence of Sutton’s influence.
“It appears as though many of the arguments he makes personally are then likewise made by Ginny Vida and Mabel Ng,” Ryan said. “It appears as though Jim Sutton is influencing the public policy and San Francisco and the interpretation of the city’s finance laws.”

The political puppeteer

0

By offering envelope-pushing legal and political advice at key moments in the fall campaign, attorney Jim Sutton was perhaps the single most influential individual behind the victories of Mayor Gavin Newsom and District Attorney Kamala Harris.
In the process, Sutton solidified his reputation as the dark prince of San Francisco elections, a hired gun who helps downtown interests and well-funded campaigns continue to dominate the electoral field even after voters passed reforms that restricted campaign giving and spending and required more official disclosure.
“He knows more election law than anyone, and he knows it better than anyone else,” local political consultant David Looman told the Bay Guardian. “He is the guy you call.”
New era, new player
Sutton, 40, stepped on the political stage just as voters were going to the polls in the fall of 1997 to demand more transparency in campaigns, a reaction to the leadership of Mayor Willie Brown and the dealings of powerhouse consultants like Jack Davis and Robert Barnes. At the time Sutton worked for Nielsen, Merksamer, Parrinello, Mueller, and Naylor, a Mill Valley firm that specializes in election law.
Sutton took on mostly big-money campaigns backed by downtown interests — such as Brown’s 1999 reelection and Pacific Gas and Electric Co.’s successful, multimillion-­dollar bids to squelch the public power movement in 2001 and 2002. Highly versed in the minutia of campaign finance law, he became a major player in electoral politics in San Francisco — and across the state.
“He is one of a small handful of very influential political law attorneys who typically represent moneyed, influential candidates,” California Common Cause executive director Jim Knox told us. “And he seems to be on something of a crusade right now.”
A search of the San Francisco Ethics Commission’s online database shows that over the past six years, Sutton has acted as treasurer or in another legal capacity for at least 20 campaigns and counts such heavily funded political action committees as the Golden Gate Restaurant Association, the Alice B. Toklas Lesbian Gay Bisexual Transgender Democratic Club, and the San Francisco Association of Realtors among his permanent clients. For that work, which doesn’t include the fall election, he earned at least $750,000.
Many of the city’s progressive activists and leaders see him as a dark agent — a tool only well-heeled interests can hire to navigate regulatory loopholes in order to spend as much as possible, even it means pushing the limits of the law, to sway voters.
“He’s an opportunistic lawyer who works against populist issues,” Sup. Tom Ammiano said.
Moreover, activists and state campaign finance experts say, he exerts an extraordinary level of influence over the city’s campaign regulators, including the top staff at the Ethics Commission and the deputy city attorneys who work with that agency.
“He is a high-powered fixer who has relationships with people in power that let him deliver for his clients in a way that leaves the less-connected among us flabbergasted,” said Marc Solomon, a Green Party member who worked on Sup. Matt Gonzalez’s mayoral campaign.
For his part, Sutton says that’s nonsense.
“There’s absolutely no proof or evidence of that,” Sutton told us. “I’m a professional, and I don’t want special access. I don’t need it, because I have a knowledge of the law.”
Rising to the top
By the time Sutton left his old firm last May to create Sutton and Associates, he had sealed his reputation as a go-to guy and counted among his clients the man who would be mayor. Sutton was everywhere. Consider:
• Having lawyered Newsom through the embarrassing flap in early 2003 over the $1 million loan from mentor Gordon Getty that (whoops!) Newsom neglected to disclose on his economic interest statements, Sutton served as treasurer to the Marina District supervisor’s mayoral campaign.
• When district attorney candidate Harris’s consultants realized their client was facing disaster if they couldn’t get her out of a legally binding pledge she signed in January 2003 to abide by the spending limits set in that race, they summoned Sutton, who got her out of the jam. The Ethics Commission’s decision to lift the spending limit was one of the agency’s most egregious acts in years and was truly an extraordinary event, activists say. It allowed Harris to spend hundreds of thousands of dollars to get past Bill Fazio in the runoff and eventually beat incumbent Terence Hallinan.
• Sutton handled the regulatory filing procedures for the California Urban Issues Project, a nonprofit lobbying outfit that churned out campaign mailers slamming Hallinan and mayoral contender Gonzalez for, among other charges, an unwillingness to crack down on the activities of homeless people. Though the group’s status prevents it from taking positions on candidates, the mailers clearly favored one candidate over the other. However, since the pieces didn’t actually include a “vote for candidate X” command, they fell within the bounds of the law as recently interpreted by the appellate courts, Sutton told us.
“What I do is say, ‘I am the lawyer. It’s my job to say this is what the law says. This is what it does or doesn’t allow,’ ” Sutton said. “It’s not about any kind of ideology on my part.”
• Sutton also served as treasurer for the campaigns behind two successful measures funded by downtown interests: the clean-streets initiative (Proposition C) and the controversial anti-panhandling legislation sponsored by Newsom (Proposition M). Interestingly, Harris particularly benefited because of her support for Prop. M. San Francisco pollster David Binder told us in December that her position on Prop. M helped her win over much of Fazio’s base and was key to her victory.
• Sutton’s expertise helped Newsom and Harris raise money in larger chunks during the runoff than they might otherwise have done. That’s because Sutton is keenly aware of a detail in the city’s campaign finance law that says if a candidate carries “accrued expenses” from the general election to the runoff, that candidate can collect $500 (instead of $250) from contributors. He should be — the ruling came as a result of his suggestion to local regulators.
For practical purposes, it can become a matter of shuffling the books. Newsom and Harris had so much cash behind their candidacies that it’s tough to believe they had any real debt. And in the case of at least Newsom, the amount of “debt” certainly seemed to be a moving target.
Shortly after the general election, Newsom campaign manger Eric Jaye told us he thought Newsom bore roughly $30,000 in accrued expenses. But when the campaign filed the paperwork, Newsom showed $225,322 in unpaid bills (see “Tainted Dough,” 12/03/03).
Neither Hallinan’s nor Gonzalez’s campaign took advantage of this provision in the law, even though Gonzalez treasurer Randy Knox brought it to the candidate’s attention. Gonzalez told us at the time that he didn’t consider such a move ethical.
Learning the ropes
A self-described politics nerd who interned in his state assemblymember’s office in high school, Sutton credits the rigors of the tight-knit environment of Pomona College — more than his three years at Stanford University Law School — with influencing the way he works today.
“I learned early I wasn’t going to get away without doing my homework,” he told us.
After clerking for former California Supreme Court Justice Edward Panelli from 1988 to 1989, he searched for a way to combine his legal degree with his keen interest in politics and government. In 1990 he found his way to Nielsen, Merksamer, though he lived, as he still does, in San Francisco.
Since he knew the city, he evolved into the firm’s attorney who dealt with San Francisco matters, he told us, even though he’s a member of the Republican Party — a rare bird here. In fact, he even served a stint as general counsel for the California Republican Party.
His first work in the city was on behalf of large institutions — the M.H. de Young Memorial Museum’s early bond campaigns, for example. He also made a key alliance with consultant Barnes, who was on his way to building a hugely influential career here and becoming closely connected to former mayor Brown.
In spring 1998, Sutton acted as treasurer for Bay Beautiful, a PAC aimed at defeating Proposition K, which former state senator Quentin L. Kopp put on the ballot to restrict Brown’s control of the development of Treasure Island. (Though the measure passed, the Brown-controlled Board of Supervisors failed to implement it.)
In November 1999, Sutton played a role in the orchestrated independent expenditure campaign on behalf of Brown’s reelection efforts in his handling of the Willie Brown Leadership PAC. The PAC directed some $55,000 into Brown’s bid for a second term (see “The Soft Money Shuffle,” 2/16/00).
At the time, Sutton had gone public with his strong opposition to efforts to restrict spending in political campaigns, writing in the San Francisco Examiner, “Not only does a spending cap decrease the quantity and quality of the issues discussed in the campaigns, it also infringes on First Amendment rights.”
One year after Brown’s reelection, the Leadership PAC, together with the pro-downtown Committee on Jobs, pumped some $67,000 into an unsuccessful bid to defeat Proposition O, which reinstated limits on independent expenditures and provided public financing for campaigns. Sutton handled the legal work for No on O.
No surprise there, Sutton’s critics say. Where money seeks to influence politics, that’s where you’ll find him. Sutton, though, says the list of campaigns he’s served doesn’t reflect his ideology as much as it does his skill set. He told us the best-funded campaigns “tend to have the more complicated legal questions, since they’re going to do more stuff.”
Money and politics
Advocates of campaign finance reform say Sutton has taken his opposition to campaign spending limits on the road, seeking to erode local ordinances that restrict spending.
“Sutton is active all over the state in his opposition to campaign finance reform,” said Paul Ryan, political reform project director for the Los Angeles–based Center for Governmental Studies.
Most recently Sutton testified before the San Diego Ethics Commission at a Jan. 21 hearing on a proposal to strengthen local campaign finance law. Sutton argued the commission should repeal the local law and replace it with the state’s version, which happens to be weaker.
“When we wrote the Political Reform Act of 1974, we put in there that local laws could be stronger than the state law,” Center for Governmental Studies director Bob Stern said. “What we have now is about 100 cities and counties that have gone beyond the state law. What [Sutton] is doing is pushing local jurisdictions to follow the state law only. And that’s unfortunate, because each local jurisdiction needs to deal with its own problems.”
Sutton said he just wants a uniform standard, with the minimal local amendments.
“[Cities and counties] keep making more and more laws, which are making things more and more complicated and difficult for anyone who wants to run for election to figure out,” Sutton said. “It has a dampening effect.”
Ryan and others are concerned Sutton might succeed in discouraging officials in municipalities such as Los Angeles and San Francisco from sticking by their stronger local laws. Compounding their concerns is that Sutton appears to have a great deal of influence over regulatory officials — at least in San Francisco.
Charlie Marsteller, who formerly headed up a San Francisco chapter of California Common Cause, believes the Ethics Commission has for more than a year failed to act on a complaint he filed against Sutton in late 2002, because of Sutton’s influence on the agency. (The complaint was over Sutton’s failure to disclose some $800,000 in contributions from PG&E to a committee aimed at defeating Proposition D, another public power measure.)
“It seems to me they are waiting until after February, when a seat on the commission is up and they’ll be able to replace [Bob Planthold] with a Sutton-friendly commissioner,” Marsteller said. (Assessor-Recorder Mabel Teng is expected to name Planthold’s replacement any day now.)
More recent examples activists point to include the Harris spending-cap matter and the latest: a charge made Jan. 16 by two Ethics Commission staffers that director Ginny Vida ordered the destruction of documents accidentally e-mailed to the agency by a secretary in Sutton’s office. Those documents, which were first reported on in the San Francisco Sentinel, strongly suggest that funds raised by the San Francisco Swearing-In Committee (without contribution limits) for Newsom’s inauguration were used to pay off a long list of consultants who worked on the campaign — a charge Sutton has vehemently denied.
On Jan. 28, Sutton filed paperwork for the committee reporting contributions but not expenditures. The total raised was $317,850 and included donations of $10,000 to $20,000 from such downtown players as Shorenstein Co., Gap founder Don Fisher, the San Francisco Association of Realtors, and Clear Channel.
Though Sutton insists he enjoys no undue influence on local regulators, even one of Harris’s consultants told us Sutton was hired for just that reason. “Jim Sutton has a certain amount of influence with Ginny Vida. He doesn’t think [spending limits] are constitutional,” Looman said. “And I believe that worries her too.”
Vida was on medical leave and couldn’t reached for comment, but her deputy, Mabel Ng, said neither she nor Vida give Sutton special treatment.
“I don’t think he has any more or any less influence than anyone else,” Ng said.
Dealing with Ethics
Sutton’s most impressive act in the Harris controversy was convincing Vida and Ng that Harris didn’t know she was bound to the pledge she signed in January 2003 to stay under the spending cap. Had ethics officials concluded that Harris knew her pledge was binding when she blew the cap sometime in September, they could have disqualified her from the race, according to the terms of the city’s campaign finance law.
Instead the Ethics Commission signed onto a settlement agreement stipulating that Harris’s had been an innocent mistake — though there was plenty of evidence that her campaign officials fully knew the pledge was binding (see Campaign Watch, 9/17/03 and 10/08/03). But in buying into Sutton’s version of events, the commission allowed Harris to continue spending money that helped her win the race.
“To facilitate the needs of Sutton’s clients, [Ethics] staffers gave in to Sutton the way he wanted,” Marsteller said. “The commissioners dropped the ball in that they needed to request an audit to check out the veracity of the statements being made by Harris…. They could hardly decide that the violations by the Harris committee were unintentional absent an audit. It’s one of the greatest demonstrations of incompetence I’ve seen, and Sutton led them into it.”
For his part, Sutton disagrees that Vida gave him an easy of time of it. “They fined [Harris] $34,000, and they made sure we printed flyers and ads telling the public of the mistake,” Sutton said.
That’s true. But Ryan and others view the matter as strong evidence of Sutton’s influence.
“It appears as though many of the arguments he makes personally are then likewise made by Ginny Vida and Mabel Ng,” Ryan said. “It appears as though Jim Sutton is influencing the public policy and San Francisco and the interpretation of the city’s finance laws.”