Gavin Newsom

Editor’s Notes

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› Tredmond@sfbg.com

Muni is heading for a hiring freeze and delaying system improvements at the same time that Mayor Gavin Newsom says this is "not a time to raise fees and taxes on business." The head of the California High-Speed Rail Authority is fighting with the head of the Transbay Terminal project over money to extend train tracks downtown. The United States of America is bailing out car companies that have been fighting for years against tougher emissions standards and still can’t seem to make fuel-efficient vehicles. And we’re all worried about global warming and a deepening recession.

I’m not getting this.

Historians and economists can argue forever about the causes of the Great Depression, but most people agree about what brought it to an end: massive, over-the-top levels of public spending. Huge investments in infrastructure. Huge investments in employment programs.

Tax cuts didn’t end the Depression. Government layoffs and belt-tightening didn’t end the Depression. Under President Roosevelt, the government taxed and spent, borrowed and spent — and spent and spent and spent — starting with the New Deal and continuing through the gigantic reindustrialization of America known as World War II. And money went into things that actually created jobs — in many cases, public-sector jobs.

So now we’re in a period where San Francisco, California, and the nation desperately need new infrastructure . We need to shift, fairly radically, away from a car-based transportation system to one based on energy-efficient transit, particularly trains. We need to profoundly shift the electricity grid, away from nuclear and fossil fuels (and away from private control). All these things create jobs. It’s kind of a no-brainer.

California just approved $9.9 billion in bonds for a high-speed rail system between San Francisco and Los Angeles. But even that money isn’t going to be enough, and progress is going to be slow. Take 1/10th of the $800 billion the federal government is putting into propping up big banks and spend it on an emergency plan to build high-speed rail all the way from Seattle to San Diego, and imagine how many jobs that would produce. Jobs for planners, engineers, accountants, office-support people, steel fabrication, construction work, heavy equipment operators … jobs for college grads, jobs for high school grads, union jobs, steady jobs, jobs that train people for other jobs –tens of thousands of them.

Take another 10 percent of that and spend it building solar panels on every public building on the West Coast. Again: jobs of every sort, at every level. Mandate that all the work gets done in America, and you’ll develop an entire new industry or two (we don’t build trains in this country much, but we could, and we already have auto workers and factories that are about to be idled).

I hear some talk about this from the Obama administration, but I also hear some caution and some discussion about budget deficits and keeping the financial sector happy. Fact: the financial sector will be happy when a few million more people are working and spending money. That’s where the economy starts.

I just watched all 34 minutes of the economic segment of Newsom’s state-of-the-city YouTube extravaganza. In and around the rhetoric, he devoted a few moments to the city’s budget deficit and how he was going to institute a hiring freeze, lay off workers and consolidate departments. All wrong.

In fact, this is an excellent time to raise taxes and fees — on the rich, the well-off commuters, the big businesses, the billionaires … Shifting wealth from the top to the bottom, creating public sector jobs in the process, is an fine recipe for economic stimulus. At every level of government.

Cut half the general fund?

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by Tim Redmond

I’m not kidding. That’s what the numbers right now suggest. San Francisco over the next year could face a budget deficit of $576 million — almost half of the entire discretionary money that the city has to spend.

Mayor Gavin Newsom, frankly, is entirely missing in action on this one. He’s been hiding out, doing his budget discussions in secret, playing Where’s Waldo (even showing up that the board meeting without a budget plan) and leaving City Hall and thousands of city workers, nonprofits and activists wondering what the hell is going on. The lack of leadership is mind boggling.

In the vacuum, the Coalition to Save Public Health has proposed a series of alternative cuts, and Sup. Aaron Peskin, writing in tomorrow’s Bay Guardian, suggests that the board consider them. The proposals include eliminating unnecessary jobs that pay more than $100,000 a year, cutting back the mayor’s seven-person PR staff, cutting the money the city gives to the Opera and Symphony and re-opening the police and fire contracts. These are all good ideas — and they might, in the best of all circumstances, add up to ten or 20 percent of the deficit.

The reality is that the mayor is going to be making some brutal cuts now — and it will be much worse in a few months, when the supervisors have to deal with the next fiscal year’s budget. You can’t cut half a billion dollars out of San Francisco city government without eliminating a lot of essential programs. Public health? Decimated. Parks and Rec? A wreck. Muni? Service will get way worse, fares may go up, and the city’s commitment to public transit will be at risk. What’s the city do for you? Get ready to give it up.

And you think the job market is bad now and the recession starting to hit the city hard? Imagine when a few thousand city employees join the unemployment lines.

So what are we supposed to do? Let me make a suggestion.

The worst thing a government agency can do in a recession is cut spending. The feds can borrow money and keep spending, but the city can’t. So we simply need to face the fact that this is an emergency, a crisis, the worst situation since the 1930s – and we need to look for new revenue.

We can’t mess around with half steps, either. We need big money, right now – and the best, most fair and progressive way to get that is with an income tax.

Now, the city can’t just impose an income tax on residents, the way New York City and Philadelphia do. The California Constitution pre-empts that. But the city CAN levy a tax on all income earned within the city. So the commuters pay, too (although residents who live here and work somewhere else don’t; it’s an imperfect world). Oakland passed a tax on income earned in the city in the 1970s, and the issue went all the way to the state Supreme Court, which ruled in Weekes v. City of Oakland that the tax was perfectly legal (the City Council dropped the tax anyway). Here’s an opinion on it.

The nice thing about income taxes is that they hit the rich harder than the poor. In fact, San Francisco could exempt, say, the first $100.000 of income, then use a progressive scale to make sure that only well-off people paid anything, and the richest paid the most. Even in a recession, there are rich people in this town, people who have done very well under the Bush tax cuts – and shifting money from the rich to the poor during a recession is excellent economics.

And an income tax could actually bring in enough cash to make a real difference.

Of course, the rich people who pay it can deduct the local tax from their state and federal returns – so a lot of the money actually comes to SF from Washington and Sacramento.

Passing something like this would be a huge political challenge – it would have to go on the ballot, and nobody wants new taxes, and the Chamber of Commerce types would howl and raise huge sums to defeat it. It could only work if the entire City Hall establishment, starting with the mayor, was willing to go out and campaign, hard, for the measure. Make it temporary – the tax would expire in two years. Make it progressive – nobody who is hurting financially would pay a heavy burden. And tell the voters: We tax the rich, or we close libraries, and eliminate Muni lines, and take cops off the streets, and close fire stations, and let sick people die because they can’t see doctors – and watch the local economy fall even deeper into recession as city spending plummets.

Because that’s what we’re talking about here. These are the choices.

There’s a good chance the state will have a special election in the spring – a tax measure could go on the ballot then. Or the city could hold its own special election. And if the city income tax doesn’t fly, I’m open to something – anything – else. But is has to be big, and we have to move on it now.

Any takers?

Newsom’s shocking Board appearance

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WTF?! Mayor Gavin Newsom shocks everyone by making a surprise “Bad News” visit to the Board.

Photos by Luke Thomas
Text by Sarah Phelan

For years, voters have been asking Mayor Gavin Newsom appear before the Board of Supervisors for monthly policy discussions. And for years, MGN has refused, claiming that such invites were “political theater.”

So, eyeballs understandably popped and jaws dropped when Newsom showed up at today’s Board meeting.
What could have possibly got the Mayor to come and talk to the Board?

A $576 million budget deficit, as it turns out. That’s almost half the City’s $1.2 billion in discretionary funds.

“That arguably makes it the most daunting crisis since the Great Depression,” Newsom observed.

But while the Mayor claimed he had come to the Board to “share the challenge”, he did not share copies of his proposed solution, until hours later at a press conference he did not attend. In other words, no one could ask the Mayor hard questions about his proposed plan in real time. And that was a tad frustrating.

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The media try to make sense of the Mayor’s proposal as Dr. Mitch Katz talks about what it means for the City’s Public Health Department.

Instead, Newsom did what he seems to do best: he stood there, hair and nails immaculate, spouting numbers, percentages, and statistics about his package which he dubbed, ” $118 million in proposed mid-year solutions.”

Somehow,he didn’t get to the part about the 399 pink slips that will be sent to City workers on Friday, or the 313 vacant positions that will also be eliminated.

Those details were left to Controller Ben Rosenfield and Budget Director Nani Coloretti to share with the press, as we stood in the International Room, surrounded by glass cases filled with signed memorabilia from the likes of “Their Royal Highnesses” Prince Charles and his wife Camilla.

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The Mayor’s “dream team” address media questions in the International Room,

It also fell lto the Mayor’s financial team to spell out that this mid-year proposal only addresses $100 million of the problem, meaning 2009-2010 will likely look four times worse.

Meanwhile, some supervisors were left wondering of there will there be any meaningful collaboration between Newsom and the Board, or whether it will take the form of the usual feral faction versus manicured tribe?
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Sup. Chris Daly wonders aloud about “real collaboration.”

“We have the capacity, the ingenuity and the spirit to solve this,” Newsom told the Board, looking painfully alone as he stood in their chambers this afternoon.”It’s going to take all of us working together. It’s in that spirit that I am here..The mid-year solution–difficult and painful as it is–its he easy part. The difficult part comes in the next four months.”
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His appearance was a good first step, but will he follow it up with regular monthly visits, so that the Board can engage him in policy discussions, as per their voters’ requests?

It looks as if the Board isn’t banking on it: Peskin and his fellow supervisors have put together their own package of solutions–an ordinance deappropriating $8.5 million in alternative cuts from the General Fund.

As one aide told me, “It’s important for the Board to set the stage now for the budget discussions in the Spring.”

But it would be great if there was a silver lining to the global crisis-in which the SF Board and Mayor started acting as equal partners in their efforts to save what they can from the economic wreckage.
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Newsom swears in Campos

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By Steven T. Jones

A day after appointing David Campos to fill the Board of Supervisors seat vacated by new Assemblyman Tom Ammiano (which Campos won in last month’s election), Mayor Gavin Newsom marveled at the huge and enthusiastic crowd that showed up at City Hall for Campos’s swearing in ceremony.

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“Thanks for coming here on remarkably short notice,” Newsom said. “I’m impressed with his ability to raise a crowd, which is a cautious warning as well.”

Indeed, after an election in which progressives such as Campos consolidated their legislative power, Newsom does have something to fear if he continues with his autocratic attacks on progressive priorities, as we could see more of tomorrow when he is scheduled to announce a package of mid-year budget cuts.

But for today, they were just one big city family, a tone strongly set by Campos, who pledged to work well with Newsom, fellow supervisors, and those who supported other candidates in his race. And he singled out Ammiano for special praise, telling him, “I’m going to do my best to make you proud.”

Sheehan’s strange coporate media crusade

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By Steven T. Jones

Anti-war activist Cindy Sheehan got a respectable 44,804 votes (16.2 percent of the total) against Speaker of the House Nancy Pelosi. But Sheehan honestly thought she could win the race and blamed her loss on the media, writing to supporters last month that she going to run again in 2010 with the help of a new radio show on Green 960 AM, “right after Corporate Democrat Gavin Newsom,” who has a Saturday morning show.

“The reason we are undertaking this show in that the corporate media (locally and nationally) wrote me off and put a blockade on coverage even before we began our campaign,” Sheehan wrote Nov. 14 in an e-mail entitled “The Revolution Will not be Reported!”

Now, I love to bash the corporate media as much as the next alt-weekly editor; we endorsed Sheehan; and I personally voted for her and thought her supporters gave Pelosi a good challenge. But Sheehan’s rhetoric has gotten ridiculous. For one thing, Sheehan simply wasn’t going to dethrone the Speaker of the House, no matter what the media said or how out-of-touch with San Francisco values Pelosi may be. For another, the station on which Sheehan is going to launch her revolution is owned by Clear Channel, the biggest corporate media villain on the dial. And honestly, if it weren’t for the corporate media promoting Sheehan’s Camp Casey a couple years ago, would we have any idea who she is?

I wrote Cindy back to ask about the contradiction and got no response. But today, I got another mass e-mail from her asking for money to fund her new show (which she said begins Jan. 4 and for which she says she needs $1200 per week). For a donation of $500 or more, Sheehan will even do a 30-second PSA plugging “any event you are doing” or organization you wish. So much for integrity.

Rather than selflessly pushing for progressive revolution, it often seems that Sheehan just loves the spotlight.

Shop Local, get more

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By Paula Connelly

Today Mayor Newsom held a press conference to announce the ‘Shop SF. Get More’, an economic promotion campaign for December / January. This promotion is a collaboration between SF Economic & Workforce Development, SF Office of Small Business, SF Convention and Visitor Bureau, SF Chamber of Commerce, Hotel Council, MTA, MUNI, DPT, BART, Chronicle, Examiner, Business Times and Bay Guardian to encourage people throughout the nine county Bay Area to shop in San Francisco. The Bay Guardian has been promoting small business and sustainable economic programs for years and this holiday season is urging its readers to spend $100 of their holiday money at locally owned, independent businesses – a move that would pump nearly $100 million into the city’s recession-plagued economy.

The press conference was held Wednesday, December 3, 11:45am, at the Ark Toy Store, which is located at 3845 24th St (near Sanchez), in Noe Valley San Francisco.

Visit the San Francisco Visitor and Conventions Bureau’s website: www.onlyinsanfrancisco.com to lean about Shop Local offers from participating businesses or visit www.sfbg.com/local to find out how to win $500 in the Guardian’s Shop Local Reader’s Contest.

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Ark Toy Storefront in Noe Valley

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Gavin Newsom kicks off the Shop Local campaign
http://cbs5.com/video/?id=42754@kpix.dayport.com

Decongest me

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› sarah@sfbg.com

San Francisco could raise $35 million to $65 million for public transit improvements annually by charging drivers $3 to cross specific downtown zones during peak travel hours, according to a San Francisco County Transportation Authority congestion pricing study.

The aim of those fees, SFCTA staffers say, is to reduce congestion, making trips faster and more reliable, neighborhoods cleaner, and vehicle emissions lower, all while raising money to improve local and regional public transit and make the city more livable and walkable — improvements they hope will get even more folks out of their cars.

London, Rome, and Stockholm already have congestion pricing schemes, but plans to charge congestion fees in New York got shelved this July, reportedly in large part because of New Jersey officials’ fears that low-income suburban commuters would end up carrying a disproportionate burden of these fees.

As a result of New York’s unanticipated pressing of the pause button, San Francisco now stands poised to become the first city in the United States to introduce congestion pricing. But the plan requires approval from both local officials as well and the state legislature.

As SFCTA executive director Jose Luis Moscovich told the Guardian last week, "The state has control over passage of goods and people. Therefore, if we want to restrict that in any way, e.g. charging a congestion fee, [we] have to get the state’s permission."

If a congestion pricing plan is to go forward, it will need the support of Mayor Gavin Newsom. Wade Crowfoot, the mayor’s climate change advisor, told us, "It’s obvious that the mayor embraces the concept, as he laid out in his 2008 inaugural address."

But Newsom isn’t signing the dotted line just yet. "The mayor wants to make sure that there are no negative impacts that would make people not want to come to San Francisco, or would harm low-income people who live in areas that are not served by public transit and have no other choice but to drive," Crowfoot said.

"We are encouraging the [Transportation Authority] to do vigorous public outreach so that no one feels blindsided," Crowfoot added.

But as SFCTA executive director Jose Luis Moscovich explained Nov. 25 to the supervisors, who also constitute the transportation authority board, even if San Francisco gets the legislative green light, it could take two to three years to implement a congestion pricing plan.

"We’re not making a proposal," Moscovich said. "We’re just showing the initial results of our analysis."

That said, it’s clear Moscovich believes congestion pricing is feasible and would contribute to local, regional, and statewide transit goals.

TOO MANY PEOPLE


With San Francisco planning to accommodate 150,000 new residents and 230,000 new jobs over the next 25 years, Moscovich’s principal transportation planner, Zabe Bent, outlined four scenarios last week that would mitigate impacts in already congested areas.

These scenarios involve a small downtown cordon, a gateway fee with increased parking pricing downtown, a double ring that combines gateway crossings with additional fees downtown, and a cordon that imposes fees on crossings into the city’s northeast corner. (See www.sfmobility.org for details, including maps of the four possible zone scenarios.)

It seems likely the SFCTA will pursue the double ring or northeast cordon option.

As Bent told the board, "If the zone is too small, people will drive around it. And drivers within the zone could end up driving more, thereby eroding anticipated congestion benefits."

But all four scenarios aim to alleviate an additional 382,000 daily trips and 30 percent extra time lost to traffic congestion that would otherwise occur by 2030, according to SFCTA studies.

"We won’t reach environmental goals through clean technology alone," Bent explained. "Even if everyone converted to a Prius, the roads would still be congested."

Observing that it already costs at least $4 to get into the city by car — on top of $2 per gallon for gas and high parking fees — Bent argued that congestion, which cost the city $2 billion in 2005, reduces San Francisco’s competitiveness and quality of life.

Stockholm raised $50 million a year and reduced congestion by 22 percent with congestion fees, while London raised $200 million a year and reduced congestion by 30 percent.

In San Francisco, the SFCTA used computer models to determine that by charging $3 per trip at peak hours, the region would get maximum benefits and minimum impacts.

Discounts would be available for commercial fleets, rentals, car shares, and zone residents, Bent said, with toll payers getting a $1 "fee-bate" and taxis completely exempt.

As Moscovich noted, "Taxis are viewed as an extension of the public transit system."

BIG BUSINESS GRUMBLES


With concerted public outreach scheduled for the next two months, and business groups already grumbling about even talking about any increases to the cost of shopping and commuting with the economy in meltdown, Moscovich warned the supervisors not to wait until after the next economic boom hits, before planning to deal with congestion.

"Now is the right time to study it, but not implement it yet," Moscovich said.

Kathryn Phillips of the Sacramento-based Environmental Defense Fund told the Board that in Stockholm, public support grew to 67 percent once a congestion fee was in place.

"People saw that it reduced congestion, provided more public transit services, and made the city more livable and walkable," Phillips said.

BART director and Livable City executive director Tom Radulovich believes that free downtown transit would make the fees more palatable. "Fares could be collected when you get off the train if you travel outside of the zone," Radulovich said.

Noting that BART is approaching its limits, Muni Metro needs investments, and parking fees are an effective tool for managing congestion, Radulovich added. "Congestion pricing’s main criteria should not be to make traffic move faster. I don’t want to create more dangerous streets, but generally speaking, I think that plan is on the right track."

As for fears that San Francisco’s plans could tank at the state level because of concerns about working-class drivers being unfairly burdened, Radulovich noted that SFCTA studies at Doyle Drive determined that only 6 percent of peak hour drivers are low-income.

"The vast majority are earning more than $50,000 a year," Radulovich said. "And since the number of low-income drivers is very small, they could be given discounts. The real environmental justice issue here is what current congestion levels are doing to people living downtown, who are mostly low-income. They put up with inhumane levels of traffic and congestion, which affects the health and livability of their neighborhoods."

Dave Synder, transportation policy director for SPUR (San Francisco Planning and Urban Research Association), said he believes the regressive tax argument is a misleading attack.

"The truth is, that without the revenues this program will bring, the MTA will have to cut service for poor people, not increase service to meet increased demand for people who can no longer afford to drive," Synder told us.

But several local business groups are claiming that San Francisco doesn’t have a congestion problem compared to European cities.

Ken Cleveland of San Francisco’s Building Owners and Managers Association, said he believes that reports of congestion in San Francisco "are more hype than reality.

"We have no problem compared to London, Rome, and Stockholm," Cleveland said. "Congestion fees may work when you have a huge city with millions of people crammed in, like in London, Manhattan, Rome, but not in San Francisco."

Cleveland urged a hard look at what this increase means for people who drive now. " Fees of $160 a month would be "a real hit" on the middle and working classes, he said.

Jim Lazarus of the San Francisco Chamber of Commerce said he opposed a local cordon, but supports a regional congestion pricing program. "Look out the window at 10.45 a.m., and you’ll see that there is no congestion on Montgomery and Pine," Lazarus told us, noting that unlike London, which covers 600 square miles, San Francisco only has a 49-square-mile footprint.

"If you decide not to go into downtown London, the odds are your taxes, jobs, and revenues will still go into London’s coffers," he said. "That’s not the case in San Francisco. So from a small business point of view, it doesn’t make sense."

Bent says the SFCTA’s study provides numbers that are irrefutable, in terms of showing how travel times are impacted by congestion, during peak hours. "We’re talking about modest improvements in speed, but significant improvements in travel time," Bent said.

The proposed fees won’t affect shoppers, museum-goers, or those going out at night, but would benefit all users of the public transit system, Moscovich said.

"We’re not designing for London, we’re designing for San Francisco," Moscovich told the Guardian. "And this is not an anti-automobile program. This is an effort to achieve a balanced transportation system."

With the congestion fee revenue reinvested in transportation infrastructure, Moscovich adds, public transit will be less crowded, and provide more frequent, faster service.

"It all makes perfect internal sense: folks with the least resources are likely to benefit the most," said Moscovich, who predicts that San Francisco will agree on some form of congestion pricing.

"The mayor wants to be seen as a leader in initiating climate change commitment, and transportation is one of the first ways to achieve this," he said. "Especially since 50 percent of San Francisco’s greenhouse emissions occur during peak hour travel."

"We’re trying to change behavior, not just engineering. We don’t want people in cars. … For every pollution-free Prius, you have diesel buses and older cars sitting in traffic idling, essentially eroding any benefits. The best way to optimize results is to get some cars out of the peak hour."

Sup. Jake McGoldrick, who is president of the SFCTA board and has supported the congestion fee-pricing system since it was implemented in London, said that "business will have to step up [and] make a willing suspension of disbelief to see that enhanced mobility will enhance business opportunities.

"There will be no need to get mauled at the mall," McGoldrick predicts. "San Francisco has wonderful things to offer, not just a sterile, homogenous, single-purpose environment. You can’t match museums and cultural amenities out at the malls. San Francisco is a cultural center, not just a strip mall."

McGoldrick, who is termed out in January, said that the new Board "will lean very positively toward doing this." He added that state representatives, including Sens. Leland Yee and Mark Leno and Assembly Members Fiona Ma and Tom Ammiano "will see the benefits.

"They should be willing to carry the banner because of the long term benefits for their grandchildren," McGoldrick said.

(The Board will consider the congestion pricing scenarios and impacts Dec. 16. See www.sfmobility.org for details of public workshops and meetings.)

Comrade Newsom slices and dices

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By Steven T. Jones

After watching Mayor Gavin Newsom’s virtual State of the City speeches (delivered on You Tube rather than the traditional venue of City Hall) – and reading the criticism of them today in both the Chronicle and the Examiner, even from Newsom’s two BFF columnists – I’m torn between two metaphors.

In the first few minutes, Newsom seemed like a salesman in a late night infomercial, telling me how I could get a complete set of Ginsu knives for just $19.99. “But wait, there’s more,” Newsom seems to say, if I order now then he’ll throw in a comprehensive climate change plan, absolutely free, the first city in the country to make an offer like this. Operators are standing by.

But then it just went on and on and on (there are almost eight hours of this stuff being rolled out this week) until Newsom seemed to morph into Fidel Castro or some other Soviet Bloc dictator, just droning on endlessly about the glories of the State (or in this case, The City) with the self-assuredness and lack of self-censorship that flow from feeling omnipotent and beloved by subservient subjects.

And to add to the surreal nature of this strange exercise in over-inflated egoism, Newsom flacks Nathan Ballard and Eric Jaye (apparently the brainchildren – so to speak – behind this fiasco) are trying to cast this cyber-lecture as facilitating a dialogue with the community (even though they turned off the comments section on the You Tube posting).

We’ve long argued that Newsom is overdue for some real dialogue, particularly with progressives and the city’s legislative branch, which was why the city charter called for an annual State of the City address in the first place. So if Newsom now prefers the online world to the real one, please use our comments section to place your orders or offer dear leader some healthy feedback.

Now what with this power plant, Mayor?

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By Amanda Witherell

The Board of Supervisors voted unanimously against Mayor Gavin Newsom’s proposal to retrofit Mirant Potrero power plant at their Nov. 25 meeting.

Everyone’s been calling this political theatre, as the legislation was originally tabled, then dragged off the table at the last moment by Sup. Aaron Peskin. At the Board’s Nov. 18 meeting Peskin and Sup. Sean Elsbernd rattled sabers over whether or not tabling equaled death to the legislation and all it contains. The supervisors agreed with Peskin to take it off the table and vote it down properly, in a 7-4 vote (sans Elsbernd, Carmen Chu, Michela Alioto-Pier, and Chris Daly, who, in an aside to the press box, said he voted ‘no’ on everything related to the power plant. “If I keep voting ‘no’ there will be no power plant.”)

Anyway, the big, bad ‘no’ vote happened yesterday. But that doesn’t mean the issue is dead as the Mayor will still need board approval for a contract or any kind of deal with Mirant.

The other political undercurrent is the mayor’s introducing of the legislation in the first place. If you read the actual language [PDF], it would have given him, his staff, and the SFPUC sole authority to negotiate a retrofit with Mirant. If it had passed it would have essentially given the mayor pre-approval for what ever crackpot plan they come.

And, as Peskin and Maxwell uncovered in committee hearings on the issue, retrofitting Mirant is pretty crackpot. It’s something that’s never been done to any similar power plant and may actually be technologically impossible.

So. they moved the Mayor’s legislation forward in order to forcefully kill it. It was Alioto-Pier who called for tabling it. The board went along with the idea, thinking that tabling is effectively killing legislation. but, as Maxwell said yesterday at the hearing, “Originally on this item, I asked for a no vote. Sup. Alioto-Pier asked for a table, and it was tabled. This is just an assurance that no is no. This is not about the Mayor. I’m voting no on this issue, not the Mayor.”

The other day I spoke with Elsbernd about a different issue, but he mentioned the tabling thing and told me, “You can only pull it off the table the week after it’s been tabled.”

Mary Red, clerk for the Rules Committee, told me this is true, but also said tabled legislation can be brought back for up to 12 months — but if more than a week lapses after the tabling, then it has to go back to committee and all the way through the legislative process again.

This is really a minor legislative distinction and its very likely we’ll see a new proposal to retrofit Mirant at some point, but there is a certain kind of message that gets out there when a piece of controversial legislation gets voted down unanimously. For example, the SF Chronicle headline on the story reads, “S.F. supervisors kill mayor’s power plant plan.”

Sounds like a done deal, right?

Eastern Neighborhoods moving forward

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by Amanda Witherell

The Board of Supervisors, at their Nov. 25 meeting, moved the Eastern Neighborhoods plan a little farther along in the legislative process. The political peregrinations that occurred at the previous meeting, during which the legislation was splintered into several pieces for political reasons, were resolved and the entire package is once again unified

As we reported in this week’s issue, Sup. Aaron Peskin had made some last minute amendments to add more accountability to parts of the plan. Sup. Sean Elsbernd didn’t like the move and severed them – effectively making them their own individual pieces of the legislation and vulnerable to line-item vetos from Mayor Gavin Newsom. Why would Newsom veto them? Why would speculating developers want to be required to start building within three years? Right.

Additionally, with Sup. Tom Ammiano outbound for Sacto and Sup. Chris Daly recused from voting because he owns property in the plan area, the board majority on this issue withers to six, with already suspicious intentions coming out of Sup. Gerardo Sandoval.

Anyway, yesterday the Board agreed to mend fences and move forward by rolling all the amendments back into the original legislation, which no longer allows Newsom to target specific parts of it. Most of the amendments still weren’t favored by Elsbernd, Chu, and Alioto-Pier, and Sandoval was the sole vote against a “use it or lose it” provision to reduce speculation (See above link, and our story that details his own precious amendment designed to benefit one developer in particular.)

The legislation will get its last read and vote at the Dec. 9 meeting.

New member of the SFPUC?

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by Amanda Witherell

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From left, Juliet Ellis with Manuel Pastor from UC Santa Cruz and Lori Reese-Brown with the city of Richmond

The San Francisco Public Utilities Commission has had two empty seats for months, but Mayor Gavin Newsom has finally made another appointment to the body that oversees the city’s water and power infrastructures. Juliet Ellis has been offered the “advocacy” seat on the five-member board.

For the past seven years she’s been executive director of Oakland-based Urban Habitat, a non-profit social and environmental justice organization that works on affordable housing, transportation, and land use planning issues throughout the Bay Area, though mostly in the East Bay. The organization has been around since 2004, and receives most of its funding from grants. [PDF of its most recent 990.] (A quick check of grants made by Pacific Gas & Electric since then showed none to Urban Habitat, unlike other purported community groups.)

Ellis told the Guardian she’s interested in joining the SFPUC because it will bring her focus back toward San Francisco, where she’s been living since 1995. She currently resides in Bernal Heights.

When asked how her experiences have prepared her to be a public utilities commissioner, she said, “I have a long track record of working with folks who are often the most left out of the process,” she said, and that would continue at the SFPUC. If appointed, she plans to keep her job at Urban Habitat.

“Our organization is really interested in justice components,” she said, and in particular, climate justice. “What are the implications for low income communities if sea levels rise? If air pollution increases?” And, she pointed out, what kinds of mitigations can protect more vulnerable communities when it comes taxation through congestion pricing or the continual siting of power plants in areas where people live, with their pollution and carbon offsets occurring elsewhere?

That relates intimately to long term water and power issues under discussion in San Francisco, like the 51 percent renewable energy projections for the Community Choice Aggregation plan and what to do about the Mirant Power Plant that’s still operating in the mostly black, mostly low-income, and, consequently, most cancerous part of town, as well as how to move the city toward more affordable energy bills.

Ellis didn’t have much to say on specific issues like Mirant or CCA, admitting that she hasn’t “gone deep enough, I haven’t learned all the information” about these heavily nuanced and political issues.

But, her thinking seemed to fall along the right lines of public accountability and control, citing “the more obvious benefits of having more control than when it’s privatized. It seems like CCA would provide more clean energy and control and that in and of itself makes it something that’s attractive.”

Ellis said she sees real opportunities to connect the SFPUC with the communities she’s been helping at Urban Habitat. “The main issues I’m excited about are job opportunities and thinking through how to position those,” she said, pointing out that the SFPUC is projecting 24,000 jobs through the Water System Improvement Plan. She would like to see some of those jobs go to people who are low-income and jobless now. She’s also interested in “out of the box thinking for mitigating impacts for communities like Bayview Hunters Point and Potrero on water and energy issues.” She said most people don’t understand the scale of work undertaken by the SFPUC and she’d like to build a better relationship between it and low income and communities of color.

She said the recommendation to join the SFPUC came from Fred Blackwell, a former Urban Habitat board member who was appointed by Newsom to head the Redevelopment Agency in 2007. So far she’s met with several members of the Board of Supervisors and her appointment will be heard by the Rules Committee during their Dec. 4 meeting.

After the bubble

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› amanda@sfbg.com

Speculators will be able to sit on tracts of San Francisco land until the market improves. Development impact fees will be set too low to cover the costs of neighborhood improvements like parks, streets, and transit. Affordable housing development is intimately tied to a busted market rate-housing boom.

This is the future of the eastern South of Market, Potrero Hill, Central Waterfront, and Mission District neighborhoods as laid out in the Eastern Neighborhoods Plan, a community rezoning effort that began in 2001 that now fills a binder thicker than a weightlifter’s bicep.

After more than 30 public hearings, the plan is approaching final approval by the Board of Supervisors. While some are lauding all the heavy lifting that’s been done to get it to this stage, there are still some noticeable shortcomings.

"The plan itself is despicably deficient in terms of affordable housing," housing activist Calvin Welch told the Guardian. That sentiment was echoed by spokespeople from the Mission Anti-Displacement Coalition and the South of Market Community Action Network, who may join together in a legal challenge of the plan’s Environmental Impact Report for failing to properly consider socioeconomic impacts.

"There will be environmental impacts in terms of displacement, increased amounts of traffic and cars, increased levels of noise," said April Veneracion, SOMCAN’s organization director. "The Board of Supervisors could have addressed these inadequacies in the EIR with amendments."

Some last minute amendments were added that would audit the financing of projects and reduce land speculation — but due to a tricky legislative maneuver, even these concessions could be axed by a veto from Mayor Gavin Newsom.

The bulk of the plan rezones vast tracts of industrial land on the eastern flank of the city for housing, mixed urban use (including retail and commercial sites), and a light industrial category called "production, distribution, and repair" (PDR) that protects many of the working-class jobs remaining in San Francisco.

Building height limits will increase in some areas and remain at 40 feet in others. Between 7,000 and 10,000 new units of housing are anticipated, with affordable housing rates between 15 to 25 percent, depending on the location and project.

However, the one method of financing affordable housing — known as inclusionary housing, which requires market-rate developers to include a certain percentage of affordable units — is entirely linked to a now-waning economic boom. "Events have rendered it meaningless," said Welch. "The Eastern Neighborhoods Plan is a plan predicated on a red-hot real estate market. Planning has no ability to shift with the market and the market, since mid-September, has changed radically."

The Controller’s Office recently readjusted the city’s revenue projections, suggesting a $90 to $125 million budget shortfall in the current fiscal year, with 40 to 49 percent of that directly connected to flagging real estate transactions.

Yet housing in the Eastern Neighborhoods Plan remains primarily composed of market-rate units, fetching upward of $700,000 apiece, with "middle-income" units discounted to half that, and below-market-rate apartments still costing over $200,000 each. Development impact fees are set for $10 per square foot of construction — not enough to cover the proposed improvements that would make these industrial areas pleasant and safe for everyday residential living and working.

"In order to support the population that’s expected to move in, you need transit improvements, park improvements, street improvements," said Tony Kelly of the Potrero Boosters, a neighborhood group. "Less than half [of these] have been funded by the project."

He characterized the approved parts of the plan as "pretty weak." "They’re rezoning 500 acres of industrial land for housing — predominantly market-rate — right at a time when no one’s building market-rate housing," Kelly said. He also said the plan lacked many creative financing ideas. "When the area plans were presented to our neighborhood back in 2006, the Planning Department outlined all the things a neighborhood needs. There was a chart with 18 different ways to pay for it. How many are now in the plan? One."

Ways to ensure that developer fees are used well and land doesn’t sit fallow were introduced at the last minute. Amendments to the plan, made by Sup. Aaron Peskin, require audits of the neighborhood improvement fees and forcing developers to actually build rather than speculate — but they received a potentially fatal last-minute blow.

The Board’s first vote on the plan occurred during the Nov. 18 meeting and the bulk of the plan received unanimous support (minus Sup. Chris Daly, who is recused from voting because he owns property in the plan area).

But late in the game, a standoff arose between Peskin and Sup. Sean Elsbernd, who opposed blindly rubberstamping the last-minute amendments offered by Peskin during the previous night’s Land Use and Economic Development Committee hearing.

"We saw the actual language of this if you looked in your e-mail in the last two hours," Elsbernd said during the heat of the Board hearing. "I’d like a week to read the changes made by you last night."

The Board voted to continue the matter for a week, but then, at the end of that day’s business, Peskin rescinded the vote and forced the issue. As promised, Elsbernd severed the four Peskin amendments — a legislative tactic that allows one supervisor to slice out parts of legislation and place them into individual files for separate votes.

Peskin countered by severing another amendment, added by Sup. Gerardo Sandoval, which would have allowed special height increases for two lots on Mission Street, where the New Mission Theatre and the Giant Value store currently sit. Gus Murad, who owns the properties as well as the adjacent restaurant Medjool, has been lobbying to convert the properties to commercial and residential space.

The supervisors shot down the "spot zoning" amendment that would let future buildings on the two sites to be built higher than what’s currently allowed on Mission Street. MAC spokesperson Nick Pagoulatos later applauded the move: "It would have been a ridiculous exception to make and one that clearly favored one developer."

Despite Elsbernd’s move to sever the amendments, all four passed, but didn’t receive enough votes to block a veto from Newsom. Supervisors Carmen Chu and Michela Alioto-Pier voted with Elsbernd.

The mayor’s ability to line-item veto some key protections sought by neighborhood activists was at the heart of the move. "That’s absolutely right," Elsbernd told the Guardian, who added that although he hadn’t spoken with Newsom and didn’t know his intentions, "These are issues that absolutely concern me."

The amendments add "metering" and "use it or lose it" provisions to the plan. Metering is essentially an audit performed by the board every five years to ensure that collected developer impact fees are used properly. Peskin said that while they couldn’t meet all the requests of neighborhood groups and housing rights activists, "this was something that we could do that made good public policy sense."

Elsbernd told the Guardian he didn’t object to the concept of metering but would like oversight by the Controller’s Office. "Metering gives the Board of Supervisors full power and takes the executive out of the mix," he said of the plan as it stands now, adding that it should be viewed as a long-term protection. "This is not about Mayor Gavin Newsom. It’s about Mayor Mirkarimi or Mayor Peskin."

The "use it or lose it" requirements are designed to reduce speculation by mandating that a developer with a project that has received a green light from the Planning Department must procure a building permit within three years, after which they have one year to break ground. Currently, there’s no limit to the amount of time a developer can sit on a property, which becomes more valuable after receiving city approval.

Elsbernd said, "Three years is just not fair," but again, he said he thought there was a middle ground and would like to see project developers given opportunities to make cases for extensions. However, if the developer has one of those grandfathered projects that doesn’t have to meet the new, stricter inclusionary housing regulations or pay public benefits charges, they should "have to pay full fare, full affordability, full fees," said Elsbernd.

A second vote on the plan and its amendments is scheduled for the Nov. 25 Board meeting, after Guardian press deadline, but Elsbernd expressed optimism about a compromise as part of last-minute dealmaking. "I would say there’s a possibility, as colleagues realize the potential mayoral veto."

Still, Welch pointed out that resistance to a "use it or lose it" protection is proof that San Francisco’s real estate market is in no way immune to the economic crisis afflicting the rest of the country. "The assumption built into the Eastern Neighborhoods Plan was this robust growing market for condo development and I think the bubble has burst," said Welch. "If that isn’t the case, then why would developers care about a requirement that says you have to build in three years? The Mayor’s Office told me the phones were melting after Monday night’s amendments passed."

But Welch said one of the great ironies of a market-rate housing crash is that it makes nonprofit housing development even more competitive. "That’s why we pushed so hard for ‘use it or lose it.’ It forces developers to say to the city ‘we’ll do it,’ or ‘would you like to buy the site?’<0x2009>" He said the city should be poised to buy those sites in order to build affordable housing and suggested the city lobby Barack Obama’s administration for the funds to do it as part of the large infrastructure improvements planned by the president-elect.

"I think the way housing is financed is going to be totally transformed and the federal government is going to play a bigger role," said Welch. *

Editor’s Notes

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› tredmond@sfbg.com

The Board of Supervisors passed the Eastern Neighborhoods Plan last week, in what seemed to be an awful rush. If it had been my call, I’d have left the transformative rezoning to the next board, which will have to deal with the impacts of it. But that wasn’t to be. The meeting was marked by Board President Aaron Peskin pushing a series of crucial amendments that Sup. Sean Elsbernd wanted to delay — and that Mayor Gavin Newsom may veto. That will force an override vote, and it will be close.

So one of the most important land use decisions in the history of San Francisco is going to be coming down during the holiday season, during the last few weeks that the outgoing board is in place, and possibly after Sup. Tom Ammiano — a solid progressive vote — has left for Sacramento.

This is not good.

The plan itself is a bit out of date — it was designed for a time when developers were champing at the bit to build market-rate housing in southeastern San Francisco. And while housing demand in this city is still strong, the market has dropped a bit, and the notion that fees on high-end condos will be paying for affordable housing and infrastructure is a lot more shaky these days.

I was never that thrilled with the rezoning anyway — it allows way too much expensive housing, nowhere near enough affordable housing, and the fees that developers will pay are utterly inadequate to fund the level of transportation, parks, schools, water and sewer pipes, and other facilities the area needs.

But at least the amendments add some sanity to the plan. One of Peskin’s proposals would mandate that developers who get a conditional use permit for their projects actually start building within three years — or lose their right to special zoning. That not only makes sense, it’s an anti-speculation measure — you can’t just buy up land, get special permission for additional height and density, and then sit on it until you can flip the property for more cash.

Of course, the Mayor’s Office is getting flooded with calls from developers who think this is just an outrage. The builders are also unhappy with another amendment, which requires the city to monitor the payment of building fees to make sure they’re coming in on time and going to the right places.

So if the mayor holds true to form, he’s going to veto those parts of the plan, and right now, progressives don’t have eight votes to override him. If that’s how it goes down, then the new board needs to take up the issue again in January. And while the new supes are at it, maybe they can try to raise the development fees.

The good news is that the lower the housing market goes, the more competitive nonprofit developers can be. And if the Obama administration comes through with some federal affordable housing money, the community-based organizations could be the ones driving the new wave of construction.

It sucks that Prop. B didn’t pass, because this is a rare opportunity for the public sector and the nonprofits to grab building sites. The supervisors can still allocate money for affordable housing in the next budget. And if there’s federal money to match it, Newsom, who refused to spend the last allocation, should be hammered by every part of the city if he screws up this sort of chance.

Fueling change

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EDITORIAL As a lame duck Board of Supervisors winds down, and the economic crisis and bloody budget cuts absorb most of the political focus at City Hall, there’s a major environmental issue creeping toward a January deadline — and city officials need to present a united front.

At issue is the Mirant power plant in Potrero Hill, an aging fossil fuel dinosaur that has been belching pollution into the southeastern part of the city for years. It’s been hard to shut down — the California Independent System Operator (Cal-ISO), the regulatory agency that controls the electric grid, wants some sort of generating facility inside the city lines. Sup. Aaron Peskin, backed originally by Mayor Gavin Newsom, sought to replace the Mirant plant with city-owned combustion turbines — so-called peakers — that would run only when needed. But Pacific Gas and Electric Co., fearing city ownership of power production, fought that proposal, and some environmentalists, arguing that the city should build no new fossil fuel plants at all, also opposed the plan.

On May 5, seven PG&E lobbyists descended on the Mayor’s Office and gave Newsom his marching orders: drop the peakers proposal or we’ll spend whatever is necessary to kill it. Newsom suddenly decided he didn’t like the peakers after all, and started pushing a PG&E-backed alternative: the Mirant plant, which runs on diesel and natural gas, could be converted to run entirely on natural gas, thereby reducing emissions.

The emissions numbers are pretty complicated. If the city ran the natural-gas-fired peakers for only a limited amount of time, they would emit less pollution than the Mirant plant. Obviously neither option is pollution-free; neither is sustainable; and neither is perfect.

Still, the worst of all possible alternatives would be allowing Mirant to continue to operate a private plant. At least the peakers would be city-owned and city-run. The city would have some control over how often they were fired up and could shut them down when more renewable technology becomes available. The Mirant plant — even after a retrofit — would continue burning fossil fuels; the private company would continue to profit; and the city would have no control at all.

Besides, it’s not clear that the plant even can be retrofitted for natural gas. The project that Newsom, PG&E, and Mirant are proposing has never been done before. Mirant may not be able to get the financing; the technology may not exist.

Which means that it’s entirely possible nothing will change. If all goes the way PG&E wants, the city will abandons the peakers, the dirty Mirant plant will continue to run without a retrofit, and the people of southeast San Francisco will continue to suffer.

But there’s a problem facing Mirant, and it could potentially change the whole picture. The plant sucks 200 million gallons of water out of the bay every day for cooling — and its Regional Water Quality Control Board permit expires at the end of this year. The board has said it’s not inclined to renew the permit, since the plant can’t meet modern water-quality standards. So as of January, Mirant could be forced to shut the plant anyway — unless the company, and Cal-ISO, find a way to force the water board to back down.

That’s where the city comes in. The mayor, the supervisors, and City Attorney Dennis Herrera should publicly inform both the water board and Cal- ISO that San Francisco does not want the permit renewed for the current Mirant plant. Even if Newsom thinks the facility can be upgraded, it’s hard to argue that the existing plant is anything but a disaster. And unless and until there’s a credible, peer-reviewed retrofit plan, Newsom has no business siding with Mirant and PG&E.

The water board could force the issue. If the Mirant plant has to close, the city either needs to come back with a peaker plan that environmentalists can accept or find a way to meet Cal-ISO’s mandates without new fossil fuel generation. That sounds like an excellent outcome to us. *

Taxi merger

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› amanda@sfbg.com

A plan to merge the Taxi Commission with the Municipal Transportation Agency will be heard by the Board of Supervisors on Nov. 25. Most city officials and taxi industry bigwigs support the change, but some drivers fear it could signal the end of the semi-autonomous medallion system that has been in place for 30 years.

The merger legislation by Sup. Aaron Peskin is brief, simply transferring duties from the Taxi Commission to the MTA beginning March 1, 2009. But Peskin also helped write another key piece of legislation — last year’s sweeping MTA reform measure Proposition A — that contains a provision allowing the MTA to wipe out all prior taxi regulations.

Skeptics fear that the real target of the merger is Prop. K, the 1978 law that created the current driver permitting system, which requires taxi medallions that are owned by the city to be in every car. With the MTA in control, the door could be open to privatizing taxi medallions. These permits are currently leased by the city for a fee — $658 a year for most cabs — to longtime drivers, but a scheme to sell or transfer them could mean huge profits for the select group of drivers who now hold medallions, with a potentially high transfer fee kicked back to the city.

Reguutf8g San Francisco’s taxi industry involves ensuring cabs are being properly operated, with medallions held by legitimate drivers, and investigating various complaints. But the Taxi Commission barely has enough money to meet its mandate. Proponents of the merger say the MTA can bring more resources and professional attention to the industry. Mayor Gavin Newsom, who as a supervisor in 1998 pushed for formation of the Taxi Commission, has long supported the merger as a way to have all transportation housed in one agency.

“The benefit of merging is the MTA already regulates all surface transportation,” said Jordanna Thigpen, acting director of the Taxi Commission, who was appointed by Newsom after the Taxi Commission ousted Heidi Machen in 2006. “Most cities in the country do incorporate taxis into the common transportation agency.”

Currently, cab companies, medallion holders, and rank and file drivers essentially function as a feudal system, with the serfs driving San Franciscans around in vehicles usually owned by the lording cab companies and permitted by older drivers who hold the coveted medallions. There are only 1,500 of these permits, which are literally tin medallions that correspond to the numbers printed on the sides of cabs. They are owned and regulated by the city, and leased for life to drivers who wait years to move up the list.

Medallion holders make about $20,000 to $50,000 per year leasing their medallions to cab companies, which then charge drivers daily “gate fees” that are set by the city. Drivers pay an average of $96.50 per day to use a cab, but are allowed to pocket all their fares. Drivers usually clear about $150 a day, but that’s before paying gas, tolls, and tickets, and before even sometimes allegedly slipping bribes to dispatchers to get the best assignments. Drivers have no health insurance and are essentially treated as independent contractors.

Drivers have criticized the newly formed Taxi Advisory Group, which has made recommendations to the MTA and is likely to be expanded after the merger into a 15-member council, which would have only three drivers, but seven medallion holders and cab company representatives. Five members of the public would also be seated and their unanimous support would be required for a driver-led initiative or idea to trump the medallion and cab company bloc.

“We want a much greater and fairer representation on this Taxi Advisory Council,” said driver and United Taxicab Workers chair Bud Hazelkorn. “Without that, all the issues that we bring will not be heard.” Those issues include providing health care for drivers and creating a centralized dispatch system so fares are allocated more equitably. He pointed out that drivers are the only people in the system making all their income directly from fares. Everyone else in the industry gets slices from other pies.

And the existing provisions outlined by Prop. K may soon be a thing of the past.

Prop. A included language that allowed for the Taxi Commission merger and stated that once the MTA was in control, “Agency regulations shall thereafter supersede all previously adopted ordinances governing motor vehicles for hire that conflict with or duplicate such regulations.”

During the 2007 election season, this was interpreted by the UTW and Judge Quentin Kopp, a former supervisor who authored Prop. K, as possibly undermining the current medallion system. “The taxicabs CEOs have tried EIGHT times to undo Prop. K, failing each time as voters upheld this good government measure,” Kopp wrote in a paid ballot argument at the time. “Now encouraged by City Hall, Prop. A slips in a deceptive clause undoing 30 years of voter policy.”

Back in 2007, when seeking the Guardian‘s endorsement for Prop. A, Peskin told us, “I have met with the mayor. The mayor has no desire, as do I, to undermine Prop. K, and what we would do if we ever were to transfer the Taxi Commission to MTA, we would transfer upon the condition that they adhere to and embrace by regulation all of the previously voter approved ordinances, such as Prop. K. So I think we have it handled.”

Peskin said he reaffirmed that commitment in a letter, cosigned by Newsom, but neither office could locate a copy of that letter as of Guardian press time.

But at a Nov. 17 Government Audit and Oversight Committee meeting, Peskin asked MTA executive director Nathaniel Ford if it was his understanding that this merger was not to undermine Prop. K. “That is my understanding,” said Ford. “I think it is important to all stakeholders.”

Yet the interpretation is still correct. “The MTA will now have the authority to enact provisions that supersede Prop. K,” City Attorney’s Office spokesperson Matt Dorsey told the Guardian.

This past summer, the Taxi Commission established a Charter Reform Workgroup with a primary goal of reviewing Prop. K. The group is expected to meet for about six months with any recommendations subject to a citywide vote.

Although the workgroup has yet to release any specific statements regarding Prop. K, chairman Malcolm Heinecke believes it’s already making strides simply by opening up public discourse among citizens, companies, medallion holders, and drivers.

“One of the problems with the taxi industry and discussions of reform is that they are very insular,” said Heinecke, who is also an MTA board member. “I believe we have a balanced group of voices [in the group].”

Heinecke said he thinks varied stakeholders are essential because of broad dissatisfaction with Prop. K. “You hear everyone — both inside and outside the industry — bemoaning some aspect of Prop. K. It’s a system we’ve had in place for 30 years; rather than just say it’s bad and not do anything, [the goal of the workgroup] is to look at where we are and revise.”

While it may be true that no one is satisfied, that hardly means members of the factional workgroup agree on how exactly Prop. K should be changed. For some, the problem begins with issues of representation. Not everyone agrees with Heinecke that this is a “balanced group.” Of 12 members, there are just three drivers and three members of the public, with the rest representatives from the upper echelons of the industry.

Driver and UTW member Thomas George Williams pointed out that “companies and medallion holders often have the same interests — most companies are owned by medallion holders.”

Furthermore, Mark Gruberg, a UTW member, told us, “Everyone would say some things can and possibly should be done to improve provisions of Prop. K. But it’s one thing to work around the edges to reform a law and another thing to throw it out the window.”

He pointed out that one proposal before the workgroup would allow medallions to be sold for profit, something he said “would be a complete reversal of Prop. K.” If other cities are an example, medallions could fetch as much as $500,000 apiece, enough for the holder to retire handsomely. “People that have them would clean up at the expense of the next generation of cab drivers,” Gruberg said. “It would be a completely indefensible windfall.”

“This is public property, these medallions,” Hazelkorn said. “They could be misused as a pension, but that’s not a pension that applies to everyone.”

When questioned, Heinecke was vague about concrete changes the workgroup might instigate. “This is a delicate position for me because the whole purpose of the task force is to hear the views of all the stakeholders,” he said.

Taxi drivers, the serfs of the industry, do not have high hopes about the merger. “If the merger happens, the MTA [officials] will be able to do whatever they please,” Williams said. “Everyone knows MTA is always in need of money … they don’t care about drivers or improving industry, only their budget.”

Williams worries that, under the MTA, the commission will lease medallions to companies instead of individual drivers, which would “totally ruin the concept of Prop. K.” Gruberg agreed. He pointed out that some proposals mention levying a tax on the medallion transfers, a potential revenue source the MTA could be eyeing. “It’s a whole new ball game with MTA and if they’re so desperate for cash and they see the taxi industry as a cash cow, they might go for any scheme.”

MTA spokesperson Judson True told us, “We have no intention of looking to taxi revenue to supplement existing Muni operations.”

Judge Kopp said, “By itself that does not disturb Prop. K, but if that’s a fig leaf for some recommendation from this ersatz Charter Reform Workgroup, then it becomes ominous.” He said dressing the changes in a group with a pithy name like Charter Reform “is not reform, it’s subterfuge.”

And, he added, Prop. K doesn’t need reform as much as it needs enforcement. “They’ve been at this for 30 years. Their revisions are always to start to restore the pre-1978 conditions and enable them to treat these permits as personal possessions for sale.”

Peskin, with the approval of other members of the committee, calendared the full board hearing on the merger for a date after the MTA announces the result, expected sometime this week, of its national search for a director of taxi and accessible services. Solid leadership has been elusive: two years ago the Taxi Commission fired executive director Heidi Machen, reportedly for being too tough on cab companies. Machen was replaced by another Newsom appointee, Jordanna Thigpen, who said she has applied to stay on the job but doesn’t know if she’ll be selected.

When asked if the merger would unnecessarily stretch the MTA’s resources, Thigpen said, “On the one hand you could look at it that way. On the other hand, we’re so chronically understaffed. Trying to add staff is so complicated because we’re funded by the taxi industry.”

The taxi industry brings about $1.6 million in revenue to the city, mostly from fees paid by 1,500 medallion holders and about 7,000 drivers. However, “Fees do not currently meet the city’s cost recovery needs,” according to a Taxi Commission merger report. “Both Taxi Commission and Taxi Detail are understaffed and additional enforcement personnel are needed.”

MTA’s True said, “We expect some cost savings or at least increased efficiencies,” when asked how the merger will affect the MTA’s budget. “When it comes to changing Prop. K, raising fees, or adjusting how medallions are allocated,” True said, “I can’t say that it’s not on the table … In the last several months the focus has been on procedural issues. I think that policy questions will largely come post-merger.”

Editor’s Notes

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› tredmond@sfbg.com

Is anyone else appalled that the Obamas are not even considering sending their kids to public schools? Seriously. This may not seem like the most important issue on the president’s agenda, but I think it’s a big deal.

According to The New York Times, Michelle Obama has toured Sidwell Friends, the pricey private school where Chelsea Clinton was educated. She’s also looking at Maret School and Georgetown Day, two institutions that cater to the children of the rich and powerful. There are no public schools on the list.

Adrian Fenty, the mayor of Washington, DC has urged the Obamas to consider the schools that most DC kids attend, but he has little moral suasion: Mayor Fenty’s twin sons go to private school.

I’m a public school parent, and this really bothers me. What the Obamas are saying, in essence, is that there is no public school anywhere in the district good enough for their kids. They’re saying that if you’ve got the money, you should flee for the safety of private academies. Those lowly public places are just for the peasants.

That sort of statement matters. It matters when you think about the new president’s priorities. It matters when you think about the role he wants to play not just as a chief executive but as an agent of change and a moral compass for the nation and the world. In a way, it’s his first test, and he’s flunked it.

I’m sorry: the children of the president should go to public schools. The children of mayors, and city council members, and county supervisors, and city attorneys should go the same schools as the kids of the majority of their constituents. And if those schools aren’t as good as they’d like, well then, join the team. The rest of us are working like hell to make the under-funded, over-stressed public schools better. You can, too.

And by the way, Mr. President-elect, my public school in San Francisco is giving my son and daughter a great education. And they’re growing up with kids who aren’t just like them. That’s worth way more than your fancy $21,000 private school can ever offer.

* * * *

The election of Sup. Ed Jew two years ago gave ranked-choice voting a bad rep. This year, however, I think we saw how the system can work.

I understand the critics who say that old-fashioned runoffs — second-round elections held a few weeks after the general — are more fair and allow for excitement, like Tom Ammiano vs. Willie Brown in 1999 and Matt Gonzalez vs. Gavin Newsom in 2003. But they also create a problem, particularly when one side has a lot more money than the other.

Downtown had almost endless resources to try to defeat Eric Mar, David Chiu, and John Avalos. The Democratic Party, thanks to the progressive takeover this summer, was supporting the three progressives, as was labor, the Sierra Club, and the Tenants Union. And while party chair Aaron Peskin raised a sizeable sum for slate cards and labor spent cash on organizing efforts, that was dwarfed by the landlords and developers.

Mar, Chiu, and Avalos had the advantage of a high-turnout election. If they’d been forced to run again three weeks later, downtown would have again dumped hundreds of thousands of dollars into the races — and at some point, the good guys would run out of money. Plus, RCV gave the candidates an incentive to make alliances.

Not a perfect system, but better, I think, than the obvious alternative.

Politics behind the picture

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› news@sfbg.com

The new Harvey Milk movie, which opens later this month, begins as a love story, a sweet love story about two guys who meet in a subway station and wind up fleeing New York for San Francisco. But after that, the movie gets political — in fact, by Hollywood standards, it’s remarkably political.

The movie raises a lot of issues that are alive and part of San Francisco politics today. The history isn’t perfect (see sidebar), but it is compelling. And while we mourn Milk and watch Milk, we shouldn’t forget what the queer hero stood for.

Milk started out as something of a pot-smoking hippie. “The ’70s were a hotbed of everything,” Sup. Tom Ammiano remembered. “Feminism, civil rights, antiwar.” Milk’s early campaigns grew out of that foment. “Sure, he wanted to be elected,” Ammiano told us. “But the main ingredient was courage. He was fighting with the cops when they raided the bars … what he did was dangerous.”

Milk never would have been elected supervisor without district elections — and the story of district elections, and community power, ran parallel to Milk’s own story, for better and for worse.

Milk tried twice to win a seat on the at-large Board of Supervisors and never made the final cut. But in the mid-1970s, a coalition of community leaders, frustrated that big money controlled city policy, began organizing to change the way supervisors were elected. The shift from an at-large system to a district one in 1976 was a transformational moment for the city.

“I think that San Francisco doesn’t always appreciate the sea change that district elections brought,” Cleve Jones, a queer activist and friend of Milk who helped Dustin Black write the script for Milk, told us. “It wasn’t just important to the various communities that had been locked out of power at City Hall — it was the glue that began to grow the coalitions.”

Milk was elected as part of what became the most diverse board in the city’s history, with Asian, black, and gay representatives who came out of community organizations. The board, of course, also included Dan White, a conservative Irish Catholic and former cop. And it was the assassination of Milk and Mayor George Moscone by Sup. White — and the civic heartbreak, chaos, and confusion that followed — that allowed downtown forces to repeal district elections in 1980. That gave big money and big business control of the board for another 20 years, a reign that ended only when district elections returned in 2000.

Milk was a gay leader, but he was also a tenant activist, public power supporter, advocate for police reform, supporter of commuter taxes on downtown workers, and coalition-builder who helped bring together the labor movement and the queer community. It started, ironically, with the Teamsters.

“Those of us who came out of the antiwar movement remembered that the Teamsters supported Richard Nixon until the very last moment,” Jones said. “And they were seen as one of the most homophobic of all the unions.”

But in the 1970s, the Teamsters were at war with the Coors Brewing Company, and trying to get San Francisco bars to stop serving Coors beer. Allan Baird, a Teamsters leader who lived in the Castro District, saw an opportunity and contacted Milk, who agreed to help — if the Teamsters would start hiring gay truck drivers.

“It wasn’t just San Francisco and California,” Jones recalled. “We got Coors beer out of every gay bar in North America.” And gays started driving beer trucks.

Today, the queer-labor alliance is one of the most powerful, effective, and lasting political forces in San Francisco.

Milk was never popular among the wealthier and more established sectors of the gay community; he believed in a populist brand of politics that wasn’t afraid to take the fight to the streets — and beyond San Francisco. A central theme of the film is the fight against Proposition 6, a 1978 measure by conservative state Sen. John Briggs that would have barred homosexuals from teaching the public schools.

Milk, defying the mainstream political strategists, insisted on debating Briggs in some of the most right-wing parts of the state. He refused to downplay the gay-rights issues. And when Prop. 6 went down, it was the end of that particular homophobic crusade.

Milk was always an outsider, and he ran for office as a foe of the Democratic Party machine. “His campaign for state Assembly was all about Harvey vs. the machine,” former Sup. Harry Britt told us. “His main supporter was [Sup.] Quentin Kopp. He didn’t run as the liberal in the race; he ran against the machine.” And for much of the next 20 years, progressives in San Francisco found themselves fighting what became the Brown-Burton machine, controlled by Willie Brown and John Burton.

It’s too bad the movie wasn’t released early enough to have had an impact on Prop. 8, the anti same-sex marriage measure that just passed in California. Some critics of the No on 8 campaign say the message was far too soft, and that a little Harvey-Milk-style campaigning might have helped.

But for us, one of the most striking things about the movie is the fact that Milk and his lover, Scott Smith, were able to leave New York with very little money, arrive in San Francisco, rent an apartment on their unemployment checks, and open a camera store. That wouldn’t be possible today; the Harvey Milks of 2008 can’t live in the Castro — and many can’t live anywhere in San Francisco. The city is too expensive.

In fact, for all the victories Milk won, for all the successes of the movement he helped to build, much of his agenda is still unfulfilled, even in his hometown.

The first time Harvey Milk gives a public speech in the film, he’s standing on a soapbox … literally. He brings out a box with “soap” written on the side; a funny gag, but a serious and telling moment for him and San Francisco.

The issues that Milk spoke so passionately about in that speech included police reform, ending the war on drugs, protecting tenants and controlling rents, and improving parks and protecting people’s rights to use them liberally — all issues with as much resonance today as they had back then.

The movie leaves us with a painful question. For all the celebration of Milk’s legacy by San Franciscans of various political stripes, why have we made so little progress on some of his signature issues? We celebrate the martyr — but often forget what the man really advocated.

Support for gay rights is de rigueur for anyone who aspires to public office in San Francisco. But a quarter of city residents still voted to take away same-sex marriage rights in this election. Many older gay men today are barely able afford their AIDS medication and rent. And transgender people and other nontraditional types are still ostracized, unable to get good jobs, and sometimes treated contemptuously when they seek help from their government.

Sure, marijuana is supposedly legal for medical uses in California and pot clubs proliferate around San Francisco. But even these sick patients are still targeted by the federal government and its long arms in San Francisco, including former US Attorney Kevin Ryan, whom Mayor Gavin Newsom named his top crime advisor and who is now seeking to crackdown on the pot clubs. Why, 30 years after Milk was shot, does one have to claim an ailment or illness to smoke a joint in this town?

Two-thirds of city residents are renters, a group Milk championed with gusto, but we barely beat a state initiative in June that would have abolished rent control. Housing is getting steadily more expensive. And in this election, Newsom and his downtown allies opposed Proposition B, an affordable housing measure, and Proposition M, a common sense measure to prohibit landlords from harassing their tenants. Such harassment is a common tactic to force tenants from rent-controlled units, even though the City Attorney’s Office is currently suing the city’s biggest landlord, Skyline Realty, for its well-documented history of harassment. Newsom may be the champion of same-sex marriage, but when it comes to issues like tenants’ rights, we suspect that Milk would be appalled at Newsom’s gall.

Ted Gullicksen of the San Francisco Tenants Union noted that in the wake of Milk’s death and before the repeal of district elections, San Francisco established rent control and limits on condo conversions. The tenant movement has grown steadily stronger and more sophisticated, he said, as it had to in order to counter increasing economic and political pressures and creative gambits by landlords.

“The city has gentrified phenomenally since that time, and that’s put tremendous pressure on tenants and on condo conversions,” Gullicksen told us. “It continues to be a real struggle.”

Police reform was also a huge issue for Milk and his gay contemporaries, who suffered more than most groups from the behavior of thuggish cops protected by weak oversight rules and a powerful union. And today, the Police Officers Association is stronger and meaner than ever, but the oversight has improved little, as both the Guardian and San Francisco Chronicle have explored with investigations in recent years.

And in our public parks, San Francisco officials in recent years have banned smoking cigarettes, drinking alcohol, playing amplified music, and even gathering in large numbers without expensive, restrictive permits. Even in the Castro, where Milk and his allies took it as a basic right to gather in the streets, Newsom and the NIMBYs unilaterally cancelled Halloween celebrations and used police to chase away citizens with water trucks.

Is this really the city Harvey Milk was trying to create? In the film, he talks about transforming San Francisco into a vibrant, tolerant beacon that would set an example for the rest of the country, telling his compatriots, “We have got to give them hope.”

Well, with hope now making a comeback, perhaps San Francisco can finally follow Milk’s lead on the issues he cared about most.

>>Back to the Milk Issue

Fighting Newsom’s mid-year cuts

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EDITORIAL If Mayor Gavin Newsom moves forward aggressively with mid-year cuts to the city budget, a lame duck Board of Supervisors with four veterans — including the board president and chair of the Budget Committee — on their way out the door could be voting on harsh reductions in city spending on health care, parks, and other services. That’s not the best way to make policy; we’d rather the cuts go to the new board, which will be dealing with next year’s budget anyway. But if the mayor is pushing reductions now, the current board needs to act aggressively and quickly to be sure that the mayor’s wrongheaded priorities don’t carry the day.

We recognize that the city has money problems. Like every other taxpayer-financed entity in America, San Francisco is getting hit hard by the recession. When retail sales drop, so do local sales taxes. When real estate values plummet, so do property taxes receipts. And while some prominent economists are urging President-elect Barack Obama to pour federal money into cities this spring, nobody can count on that happening.

City Controller Ben Rosenfield is projecting that the city will be around $100 million short of cash by the end of the fiscal year. And since California cities (unlike the federal government) can’t run a deficit, that money has to come from somewhere. (Fortunately, the red ink won’t be as bad as it might have been — with little help from the mayor, Sup. Aaron Peskin got two new revenue measures passed in November that will bring some $50 million more into city coffers).

Newsom’s chief target at this point is the Department of Public Health, which is facing more than $256 million in cuts. That’s on top of all the cuts the department has had to absorb over the past two years — and it will cut deeply into the city’s ability to maintain its landmark Healthy San Francisco program. The Recreation and Park Department, libraries, and Muni will face cutbacks too, and there’s almost certainly a Muni fare hike (essentially a tax on the poor) on the horizon.

But there’s no talk of reducing or eliminating any of the mayor’s pet programs — like the 311 call center, which is a fine service but perhaps not as important as medical staff at SF General — or cutting significantly into his own office spending.

And, as always, the mayor has failed to look at any additional sources of revenue (with the possible exception of new parking meters in Golden Gate Park and at Marina Green). It’s particularly frustrating that Newsom and his hired gun, Eric Jaye, pushed so hard to help Pacific Gas and Electric Co. defeat the Clean Energy Act when public power would be the source of hundreds of millions in annual revenue. (PG&E killed 10 other ballot measures that would have brought cheap Hetch Hetchy public power to San Francisco, the largest source of potential new revenue for the city, and the private monopoly yanks more than $650 million a year out of the city in high rates, according to a Guardian study.)

The supervisors don’t have to wait for the mayor to propose cuts and then react. They can begin to move now. They can begin to identify their own set of cuts and revenue enhancements — and can begin establishing an alternative set of priorities. Is it better to cut 311 and the mayor’s special global warming deputy than to cut nurses at General? Is it better to close some redundant fire stations than cut hours at libraries? Should parking meters and garage fees go up downtown before city parks get meters? Back in 1973, in his first run for supervisor, Harvey Milk proposed eliminating the police vice squad (see "I remember Harvey"). That’s an idea whose time may have come again.

The point is that the mayor, who is weak and more focused on running for governor than on running the city, shouldn’t be driving the fiscal agenda alone. The supervisors need to either agree that they won’t act on cuts until the new board takes office or offer some alternative plans today.

Cindy: Revolution will not be reported!

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From Cindy Sheehan

The Revolution Will not be Reported!

Or Funded by Corporate Interests!

Dear Friend/Supporter,

It has been 10 days since the election and Cindy for Congress is still going strong.

I am going to start a radio show on Green 960 AM beginning November 29th at 11:30am. The brilliant part of my show is that I will be on right after Corporate Democrat, Gavin Newsom (mayor of SF). My new show is called: Cindy Sheehan’s Soap Box and we will have an amazing guest to interview each week and I will sound off on different topics: war/peace; politics; human rights; international relations; foreign policy; etc. My show will have a global/local scope to it and will also be a call to action. Also, on every show, I will answer a couple of the hundreds of emails we get every week. We will pod cast the show from our website.

The reason we are undertaking this new show, is that the corporate media (locally and nationally) wrote me off and put a blockade on coverage even before we began our campaign. When there was coverage, the writer would opine that either: a) wouldn’t get on the ballot as an independent; b) not even beat the Republican; c) not even get 10 percent. Well, friend, I a) got on the ballot (which took 10,198 signatures); b) beat the Republican by a lot and c) got almost 17% of the vote. We did far better than anyone who has ever run against Pelosi in the past and that was with very, very little media coverage. Some election night coverage only reported the stats from Nancy Pelosi and the Republican, leaving me out entirely!

So far, (still counting) we have over 45,000 votes! With your help, we were able to mount a very serious campaign that was fueled by our very progressive platform and the support of thousands of people all over the country. Thank you so much for believing in peace, accountability and true progressive values!

We are already organizing for 2010 and have kept a skeletal staff and our office to do this and we are starting a PAC (political action committee) to be able to sustain our campaign until we come out even stronger than before in 2010. We also have some campaign debt to pay off.

I truly believe with the foundation that we have built and the growing disasters that our confronting our country, (facilitated by the “leadership” of Nancy Pelosi), we have an excellent chance of taking her seat in 2010 and finally giving San Francisco a true progressive Congressional Rep. Finally, we will also be working with progressive political activists around the nation to mount challenges to every Congressperson that does not effectively represent the interests of “We the People,” and not the corporate pirates.

Love & Peace

Cindy Sheehan

Politicians look beyond SF

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By Steven T. Jones

Is it too much to ask that our top elected officials focus on San Francisco rather than their political careers? Perhaps so. After all, if they can make it here, in this rough and tumble city, they can probably make it anywhere, or so their thinking goes. Yet that’s not entirely true, as a pair of front page stories in today’s Chronicle shows.

Most notably, new polling data shows that Mayor Gavin Newsom’s favorable ratings of just 25 percent statewide are below even perennial gubernatorial candidate John Garamendi, and that an astounding 41 percent of voters have unfavorable view of our slick celebrity mayor. Sure, his bungled approach to Prop. 8 is a factor, but an even bigger one is that Team Newsom’s ambitions have gotten ahead of political reality. Sure, he’s got charisma, but not much substance yet (unless you count claiming credit for other people’s initiatives). And even Newsom’s big personality, arguably his greatest asset, is often tinged with a thin-skinned defensiveness and smirky arrogance that turned him into the Yes of 8 poster boy. Rather than looking past San Francisco, as he’s been doing for so long, he’d do well to just try to be a good mayor and more actively engage with progressives here — win a few and lose a few, and mature in the process. Instead, he’s simply trying to shore up his conservative credentials.

District Attorney Kamala Harris has also been looking past San Francisco, similarly trying to get tough on lawbreakers and other poor souls, and she’s now announced her intention to run for attorney general. She made that trial balloon official just after noon today, sending out press releases in which she said, “I will fight for all Californians – from distressed homeowners to families whose neighborhoods are under siege. In the coming months, I will detail new ideas on how we can fight street gangs, go after subprime lenders and others responsible for the financial crisis, and fundamentally reform our prison system. We have to shut the revolving door that simply recycles criminals in and out of our neighborhoods.”

So get ready, San Franciscans, we’re about to once again be turned into guinea pigs for programs intended for a larger audience than us, as our current crime wave takes a back seat to more important concerns.

Why we waited — too long

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OPINION The California Supreme Court’s landmark ruling in May finally allowed same-sex couples their constitutional rights to marry. This was justice for the 4,000 same-sex couples issued marriage licenses in San Francisco from Feb. 12 to March 11, 2004. We were lucky to be one of those couples — but within five months the courts had voided all 4,000 licenses. I marched with hundreds to City Hall that day and angrily waved my nullified marriage license in the air. Del Martin and Phyllis Lyon provided a balm, saying with a laugh, "Oh well, guess we have to go back to living in sin."

Over the past four years, we’ve continued to wear our rings and celebrate our wedding anniversary. When the County Clerk’s office offered us a refund for our marriage license, we requested the refund go toward the city’s legal battle over same-sex marriage. It appeared that San Francisco had won that battle on May 20, 2008.

But we decided not to remarry until after the November election, when we would know if California agreed with the state Supreme Court. Attorney General Jerry Brown assured us that these wedding licenses could not be voided, but the memory of seeing couples in tears on March 12, 2004, when we had just been married the day before, was reason enough to wait.

In our hearts, we knew that Proposition 8 was likely to pass; since 1980 we have witnessed California consistently shoot itself in the foot by voting for petition-driven propositions.

In the past three months, one of us has devoted nearly 60 hours in an effort to defeat Prop. 8. The irony is that back in January, Troy was precinct captain for Obama in the California primary. He most likely talked to a good portion of voters out in the Sunset District who voted in favor of Prop. 8. And while the Mormon Church funded most of the Yes on 8 campaign, it is now clear that their message got through to many of California’s minorities, who turned out in record numbers to vote for Barack Obama. The No on 8 campaign should have targeted those communities; instead it only showed white people in its television ads. Now we are the ones with a dream deferred.

Marriage was not something we always believed in. When you’re used to outsider status, sometimes you learn to roll with the injustices perpetrated upon you. When Mayor Gavin Newsom and the city offered us a taste of it back in 2004, it didn’t take much to realize how much we were missing. The marriage itself was one of the best days of our lives, and having it voided was a very, very bitter feeling I won’t soon forget.

To those of you so motivated to vote for Prop. 8, we can simply tell you this: in a world of massive problems, of great economic and environmental woes we are only now beginning to feel acutely, can we bring it upon ourselves to actually join together with all of our brothers and sisters and confront all hatred with an idea of a greater social good? Can we imagine a world where our children aren’t judged by the gender of the ones they love, but by the content of their character?

Yes we can.

Victor Krummenacher is a musician and contributing designer for Wired magazine. Troy Gaspard is a surly activist and frugal trader.

Money is power

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› amanda@sfbg.com

GREEN CITY While the latest public power proposal was soundly defeated at the polls, the apparent failure of a pair of electricity generation initiatives backed by Mayor Gavin Newsom and Pacific Gas & Electric Co. is fueling an existing plan to create more city-owned energy projects.

Proposition H, which would have moved the city toward 100 percent renewable energy by 2040 and allowed public power to help meet that goal, lost Nov. 4 by more than 20 percentage points. PG&E spent a record-breaking $10.3 million against the measure, or more than $53 per vote as of the Nov. 10 tally.

For that kind of money, said campaign finance expert Bob Stern of the Center for Government Studies, "they could have taken every voter out and bought them an expensive meal." But, he said, that’s a pittance for a company like PG&E. "They knew spending $10 million was going to save them a bunch of money."

Two days after the election, PG&E announced a 9 percent increase in year-to-date profits over last year, boosted partly by a 6 percent rate increase PG&E implemented Oct. 1, which it argued was needed to cover the increased cost of natural gas.

Prop. H would have moved San Francisco away from volatile fossil fuel prices, although the city is still hoping to procure 51 percent of its energy needs from renewables by 2017 through the community choice aggregation (CCA) program.

Meanwhile a plan to retrofit the Mirant Potrero Power Plant is looking shakier since Nov. 4, when the Board of Supervisors tabled legislation that would have authorized the Mayor’s Office and San Francisco Public Utilities Commission to negotiate the deal.

Prior Land Use and Economic Development committee hearings showed that retrofitting the plant to run on natural gas instead of diesel may not be as technologically or economically feasible as suggested in a report commissioned by Mirant (see "Power possibilities," Nov. 5).

But a recent report on CCA outlines ways the city may be able to procure the baseload energy demand required by the California Independent System Operator (Cal-ISO) without retrofitting Mirant or building new peak-demand fossil fuel plants (known as "peakers"), as city officials originally proposed.

The report by Local Power, the lead CCA consultant hired by the city, suggests that the SFPUC’s current plan to upgrade natural gas steam boilers in large downtown buildings can be modified to capture waste heat and turn it into energy, a process known as cogeneration.

The city Department of the Environment has already identified 106 MW of potential energy — about the same amount Cal-ISO is requiring the city to have on hand for energy reliability. Although this isn’t renewable energy because it’s capturing wasted gas heat, "it’s really clean, good quality brown power," said Paul Fenn of Local Power, noting that it makes use of something that is currently being wasted.

Local Power’s draft report, which lays the groundwork for what the city needs to do before 2010 to make CCA work, also disputes the conclusions of a tidal power feasibility study conducted for the SFPUC. In July, URS Corp. reported that tidal power in the Golden Gate would cost between 80 cents and $1.40 per kW-hour and only generate a little over 1 MW of power. "We do not consider a tidal power project located in the vicinity of the Golden Gate to be commercially feasible at this time," the report states.

Local Power contends that URS undervalued the potential energy by using computer modeling rather than actual tidal data and overlooked the strongest area for building an underwater turbine. It also failed to account for public financing at a lower interest rate, which would make city-owned tidal power much cheaper.

"We are confident you can get 10 MW," Fenn said. "The whole thing was modeled on PG&E ownership."

Local Power recommended the city get actual tidal data from the best spot and run the numbers again. "The ocean is the ultimate energy resource for San Francisco," said Fenn, who compared the challenge of constructing this kind of infrastructure to the Hoover Dam.

Newsom, who opposed Prop. H but still claims to support CCA, remains committed to tidal power. "Mayor Newsom supports advancing a tidal project at the mouth of the bay," his spokesperson, Joe Arellano, wrote in an e-mail.

The rollout of CCA is expected in 2010, when the city issues a request for proposals from companies interested in building or supplying energy. Several companies have already responded to a request for information. CCA is slated to include a 150 MW wind farm, 31 MW of solar, 103 MW of local distributed generation, and 107 MW of efficiency technologies. Funding would come from $1.2 billion in renewable energy bonds that have already been approved.

Local Power’s report includes concrete actions the city can take, including a plan to finally make Hetch Hetchy power available to citizens, a recommendation that the wind farm be built in the Delta for easy access to the Transbay Cable — a new 400 MW, 59-mile transmission line between Pittsburg and San Francisco that’s scheduled to be completed in 2010 — and urging the city to petition the California Public Utilities Commission (CPUC) for so-called public good charges collected from ratepayers that currently go to PG&E’s energy efficiency programs.

"We’re trying to put ideas on the table for the RFPs," said Fenn, who stressed that the city should make it as easy as possible for CCA to get underway, a goal that will require a lot more cooperation between departments. For example, the report outlines several hindrances to getting renewable energy up and running, from permit hassles to delayed interconnections to PG&E’s grid.

"Where we see problems in the city for permitting and zoning, we can seek to change them now," Fenn said.

That chance may come soon. The Land Use and Economic Development Committee is hearing legislation Nov. 12 to require conditional use permitting for all power plants greater than 10 MW. Though the legislation originally targeted the Mirant plant, the Planning Department, in its review of the draft legislation, suggested that all power plants be subject to the additional review. Sup. Aaron Peskin, who sponsored the legislation with Sup. Sophie Maxwell, suggested the change wasn’t appropriate. "It just means more public process."

But, Fenn said, "To set standards based on pre-CCA era is at this point confusing. Like [Sup.] Ross [Mirkarimi] said, the CCA program should be the unifying principle of energy policy in San Francisco. Integrating all the pieces is indeed the entire secret of making all the parts perform better so that we can achieve the required meet-or-beat-PG&E-rates outcome."

Mirkarimi told us the program could obviate retrofitting Mirant or pursuing the peakers. "CCA still has not been taken seriously enough by the SFPUC or the Newsom administration."

The people’s election

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› news@sfbg.com

By midnight Nov. 4, the drama was long over: John McCain had conceded, Barack Obama had delivered his moving victory speech — declaring that “change has come to America” — and the long national nightmare of the Bush years was officially headed for the history books.

But in San Francisco, the party was just getting started.

Outside of Kilowatt, on 16th Street near Guerrero, the crowd of celebrants was dancing to the sounds of a street drummer. In the Castro District, a huge crowd was cheering and chanting Obama’s name. And on Valencia and 19th streets, a spontaneous outpouring of energy filled the intersection. Two police officers stood by watching, and when a reporter asked one if he was planning to try to shut down the celebration and clear the streets, he smiled. “Not now,” he said. “Not now.”

Then, out of nowhere, the crowd began to sing: O say can you see /By the dawn’s early light …

It was a stunning moment, as dramatic as anything we’ve seen in this city in years. In perhaps the most liberal, counterculture section of the nation’s most liberal, counterculture city, young people by the hundreds were proudly singing The Star Spangled Banner. “For the first time in my life,” one crooner announced, “I feel proud to be an American.”

Take that, Fox News. Take that Sean Hannity and Rush Limbaugh and Sarah Palin and the rest of the right-wing bigots who have tried to claim this country for themselves. On Nov. 4, 2008, progressives showed the world that we’re real Americans, too, proud of a country that has learned from its mistakes and corrected its course.

President Obama will let us down soon enough; he almost has to. The task at hand is so daunting, and our collective hopes are so high, that it’s hard to see how anyone could succeed without a few mistakes. In fact, Obama already admitted he won’t be “a perfect president.” And when you get past the rhetoric and the rock star excitement, he’s taken some pretty conservative positions on many of the big issues, from promoting “clean coal” and nuclear power to escautf8g the war in Afghanistan.

But make no mistake about it: electing Barack Obama was a progressive victory. Although he never followed the entire progressive line in his policy positions, he was, and is, the creature of a strong progressive movement that can rightly claim him as its standard-bearer. He was the candidate backed from the beginning by progressives like Supervisors Chris Daly and Ross Mirkarimi (a Green). And only after his improbable nomination did moderates like Mayor Gavin Newsom and Sen. Dianne Feinstein jump on the bandwagon.

From the start, the young, activist, left wing of the Democratic Party was the driving force behind the Obama revolution. And while he has always talked to the Washington bigwigs — and will populate his administration with many of them — he would never have won without the rest of us. And that’s a fact of political life it will be hard for him to ignore, particularly if we don’t let him forget it.

For a few generations of Americans — everyone who turned 18 after 1964 — this was the first presidential election we’ve been able to get truly excited about. It was also the first presidential election that was won, to a significant extent, on the Internet, where progressive sites like dailykos.com raised millions of dollars, generated a small army of ground troops, and drove turnout in both the primaries and the general election. The movement that was built behind Obama can become a profound and powerful force in American politics.

So this was, by any reasonable measure, the People’s Election. And now it’s the job of the people to keep that hope — and that movement — alive, even when its standard-bearer doesn’t always live up to our dreams.

The evidence that this was the People’s Election wasn’t just at the national level. It showed up in the results of the San Francisco elections as well.

This was the election that would demonstrate, for the first time since the return of district elections, whether a concerted, well-funded downtown campaign could trump a progressive grassroots organizing effort. Sure, in 2000, downtown and then-Mayor Willie Brown had their candidates, and the progressives beat them in nearly every race. But that was a time when the mayor’s popularity was in the tank, and San Franciscans of all political stripes were furious at the corruption in City Hall.

“In 2000, I think a third of the votes that the left got came from Republicans,” GOP consultant Chris Bowman, who was only partially joking, told us on election night.

This time around, with the class of 2000 termed out, a popular mayor in office and poll numbers and conventional wisdom both arguing that San Franciscans weren’t happy with the current Board of Supervisors (particularly with some of its members, most notably Chris Daly), many observers believed that a powerful big-money campaign backing some likable supervisorial candidates (with little political baggage) could dislodge the progressive majority.

As late as the week before the election, polls showed that the three swings districts — 1, 3, and 11 — were too close to call, and that in District 1, Chamber of Commerce executive Sue Lee could be heading for a victory over progressive school board member Eric Mar.

And boy, did downtown try. The big business leaders, through groups including the Committee on Jobs, the Chamber, the Association of Realtors, Plan C, the newly-formed Coalition for Responsible Growth, and the Building Owners and Managers Association, poured more than $630,000 into independent expenditures smearing progressive candidates and promoting the downtown choices. Newsom campaigned with Joe Alioto, Jr. in District 3 and Ahsha Safai in District 11. Television ads sought to link Mar, John Avalos, and David Chiu with Daly.

Although the supervisors have no role in running the schools, the Republicans and downtown pushed hard to use a measure aimed at restoring JROTC to the city’s high schools as a wedge against the progressives in the three swing districts. They also went to great lengths — even misstating the candidates’ positions — to tar Mar, Chiu, and Avalos with supporting the legalization of prostitution.

And it didn’t work.

When the votes were counted election night, it became clear that two of the three progressives — Avalos and Chiu — were headed for decisive victories. And Mar was far enough ahead that it appeared he would emerge on top.

How did that happen? Old-fashioned shoe leather. The three campaigns worked the streets hard, knocking on doors, distributing literature, and phone banking.

“I’ve been feeling pretty confident for a week,” Avalos told us election night, noting his campaign’s strong field operation. As he knocked on doors, Avalos came to understand that downtown’s attacks were ineffective: “No one bought their horseshit.”

A few weeks earlier, he hadn’t been so confident. Avalos said that Safai ran a strong, well-funded campaign and personally knocked on lots of doors in the district. But ultimately, Avalos was the candidate with the deepest roots in the district and the longest history of progressive political activism.

“This is really about our neighborhood,” Avalos told us at his election night party at Club Bottom’s Up in the Excelsior District. “It was the people in this room that really turned it around.”

The San Francisco Labor Council and the tenants’ movement also put dozens of organizers on the ground, stepping up particularly strongly as the seemingly coordinated downtown attacks persisted. “It was, quite literally, money against people, and the people won,” Labor Council director Tim Paulson told us.

Robert Haaland, a staffer with the Service Employees International Union and one of the architects of the campaign, put it more colorfully: “We ran the fucking table,” he told us election night. “It’s amazing — we were up against the biggest downtown blitz since district elections.”

The evidence suggests that this election was no anomaly: the progressive movement has taken firm hold in San Francisco, despite the tendency of the old power-brokers — from Newsom to downtown to both of the city’s corporate-owned daily newspapers — to try to marginalize it.

Political analyst David Latterman of Fall Line Analytics began the Nov. 5 presentation at the San Francisco Planning and Urban Research Association election wrap-up by displaying an ideologically-coded map of San Francisco, drawing off of data from the Progressive Voter Index that he developed with San Francisco State University political science professor Rich de Leon. The PVI is based on how San Francisco residents in different parts of the city vote on bellwether candidates and ballot measures.

“Several of the districts in San Francisco discernibly moved to the left over the last four to eight years,” Latterman told the large crowd, which was made up of many of San Francisco’s top political professionals.

The two supervisorial districts that have moved most strongly toward the progressive column in recent years were Districts 1 (the Richmond) and 11 (the Excelsior), which just happened to be two of the three swing districts (the other being District 3–North Beach and Chinatown) that were to decide the balance of power on the Board of Supervisors this election.

Latterman said Districts “1, 3, and 11 went straight progressive, and that’s just the way it is.”

In fact, in many ways, he said this was a status-quo election, with San Francisco validating the progressive-leaning board. “A lot of people in the city didn’t see it as a chance for a drastic change citywide.”

In other words, keeping progressives in City Hall has become a mainstream choice. Whatever downtown’s propaganda tried to say, most San Franciscans are happy with a district-elected board that has brought the city a living-wage law and moved it a step toward universal health insurance.

The fate of the local ballot measures was another indication that Newsom, popular as he might be, has little ability to convince the voters to accept his policy agenda.

Voters rejected efforts by Newsom to consolidate his power, rejecting his supervisorial candidates, his Community Justice Center (as presented in Measure L), and his proposed takeover of the Transportation Authority (soundly defeating Proposition P) while approving measures he opposed, including Propositions M (protecting tenants from harassment) and T (Daly’s guarantee of substance abuse treatment on demand).

Asked about it at a post-election press conference, Newsom tried to put a positive spin on the night. “Prop. A won, and I spent three years of my life on it,” he said. “Prop B. was defeated. Prop. O, I put on the ballot. I think it’s pretty small when you look at the totality of the ballot.” He pointed out that his two appointees — Carmen Chu in District 4 and Sean Elsbernd in District 7 — won handily but made no mention of his support for losing candidates Lee, Alicia Wang, Alioto, Claudine Cheng, and Safai.

“You’ve chosen two as opposed to the totality,” Newsom said of Props. L and P. “Prop. K needed to be defeated. Prop. B needed to be defeated.”

Yet Newsom personally did as little to defeat those measures as he did to support the measures he tried to claim credit for: Measures A (the General Hospital rebuild bond, which everyone supported) and revenue-producing Measures N, O, and Q. In fact, many labor and progressives leaders privately grumbled about Newsom’s absence during the campaign.

Prop. K, which would have decriminalized prostitution, was placed on the ballot by a libertarian-led signature gathering effort, not by the progressive movement. And Prop. B, the affordable housing set-aside measure sponsored by Daly, was only narrowly defeated — after a last-minute attack funded by the landlords.

All three revenue-producing measures won by wide margins. Prop. Q, the payroll tax measure, passed by one of the widest margins — 67-33.

Latterman and Alex Clemens, owner of Barbary Coast Consulting and the SF Usual Suspects Web site, were asked whether downtown might seek to repeal district elections, and both said it didn’t really matter because people seem to support the system. “I can’t imagine, short of a tragedy, district elections going anywhere,” Latterman said.

Clemens said that while downtown’s polling showed that people largely disapprove of the Board of Supervisors — just as they do most legislative bodies — people generally like their district supervisor (a reality supported by the fact that all the incumbents were reelected by sizable margins).

“It ain’t a Board of Supervisors, it is 11 supervisors,” Clemens said, noting how informed and sophisticated the San Francisco electorate is compared to many other cities. “When you try to do a broad-based attack, you frequently end up on the wrong end (of the election outcome).”

We had a bittersweet feeling watching the scene in the Castro on election night. While thousands swarmed into the streets to celebrate Obama’s election, there was no avoiding the fact that the civil-rights movement that has such deep roots in that neighborhood was facing a serious setback.

The Castro was where the late Sup. Harvey Milk started his ground-breaking campaign to stop the anti-gay Briggs Initiative in 1978. Defying the advice of the leaders of the Democratic Party, Milk took on Briggs directly, debating him all over the state and arguing against the measure that would have barred gay and lesbian people from teaching in California’s public schools.

The defeat of the Briggs Initiative was a turning point for the queer movement — and the defeat of Prop. 8, which seeks to outlaw same-sex marriage, should have been another. Just as California was the most epic battle in a nationwide campaign by right-wing bigots 30 years ago, anti-gay marriage measures have been on the ballot all over America. And if California could have rejected that tide, it might have taken the wind out of the effort.

But that wasn’t to be. Although pre-election polls showed Prop. 8 narrowly losing, it was clear by the end of election night that it was headed for victory.

Part of the reason: two religious groups, the Catholics and the Mormons, raised and spent some $25 million to pass the measure. Church-based groups mobilized a reported 100,000 grassroots volunteers to knock on doors throughout California. Yes on 8 volunteers were as visible in cities throughout California as the No on 8 volunteers were on the streets of San Francisco, presenting a popular front that the No on 8 campaign’s $35 million in spending just couldn’t counter — particularly with so many progressive activists, who otherwise would have been walking precincts to defeat Prop. 8, fanned out across the country campaigning for Obama.

“While we knew the odds for success were not with us, we believed Californians could be the first in the nation to defeat the injustice of discriminatory measures like Proposition 8,” a statement on the No on Prop. 8 Web site said. “And while victory is not ours this day, we know that because of the work done here, freedom, fairness, and equality will be ours someday. Just look at how far we have come in a few decades.”

San Francisco City Attorney Dennis Herrera, joined by Los Angeles City Attorney Rocky Delgadillo and Santa Clara County Counsel Ann C. Raven, filed a legal challenge to Prop. 8, arguing that a ballot initiative can’t be used to take away fundamental constitutional rights.

“Such a sweeping redefinition of equal protection would require a constitutional revision rather than a mere amendment,” the petition argued.

“The issue before the court today is of far greater consequence than marriage equality alone,” Herrera said. “Equal protection of the laws is not merely the cornerstone of the California Constitution, it is what separates constitutional democracy from mob rule tyranny. If allowed to stand, Prop. 8 so devastates the principle of equal protection that it endangers the fundamental rights of any potential electoral minority — even for protected classes based on race, religion, national origin, and gender.”

That may succeed. In fact, the state Supreme Court made quite clear in its analysis legalizing same-sex marriage that this was a matter of fundamental rights: “Although defendants maintain that this court has an obligation to defer to the statutory definition of marriage contained in [state law] because that statute — having been adopted through the initiative process — represents the expression of the ‘people’s will,’ this argument fails to take into account the very basic point that the provisions of the California Constitution itself constitute the ultimate expression of the people’s will, and that the fundamental rights embodied within that Constitution for the protection of all persons represent restraints that the people themselves have imposed upon the statutory enactments that may be adopted either by their elected representatives or by the voters through the initiative process.

As the United States Supreme Court explained in West Virginia State Board of Education vs. Barnette (1943) 319 U.S. 624, 638: ‘The very purpose of a Bill of Rights was to withdraw certain subjects from the vicissitudes of political controversy, to place them beyond the reach of majorities and officials and to establish them as legal principles to be applied by the courts. One’s right to life, liberty, and property, to free speech, a free press, freedom of worship and assembly, and other fundamental rights may not be submitted to vote; they depend on the outcome of no elections.'”

As Board of Supervisors President Aaron Peskin told the Guardian later that week: “Luckily, we have an independent judiciary, because the voters of California have mistakenly taken away a class of civil rights.”

But if that legal case fails, this will probably wind up on the state ballot again. And the next campaign will have to be different.

There already have been many discussions about what the No on 8 campaign did wrong and right, but it’s clear that the queer movement needs to reach out to African Americans, particularly black churches. African Americans voted heavily in favor of Prop. 8, and ministers in many congregations preached in favor of the measure.

But there are plenty of black religious leaders who took the other side. In San Francisco the Rev. Amos Brown, who leads the Third Baptist Church, one of the city’s largest African American congregations, spoke powerfully from the pulpit about the connections between the civil rights struggles of the 1960s and the fight for same-sex marriage.

The next time this is on the ballot, progressive and queer leaders will need to build a more broad-based movement. That is not only possible, but almost inevitable.

The good news — and it’s very good news — is that (as Newsom famously proclaimed) same-sex marriage is coming, whether opponents like it or not. That’s because the demographics can’t be denied: the vast majority of voters under 30 support same-sex marriage. This train is going in only one direction, and the last remaining issue is how, and when, to make the next political move.

The progressives didn’t win everything in San Francisco. Proposition H, the Clean Energy Act, was taken down by one of the most high-priced and misleading campaigns in the city’s history. Pacific Gas and Electric Co. spent more than $10 million telling lies about Prop. H, and with the daily newspapers virtually ignoring the measure and never challenging the utility’s claims, the measure went down.

“This was a big, big, big money race,” Latterman said. “In San Francisco, you spend $10 million and you’re going to beat just about anything.”

But activists aren’t giving up on pushing the city in the direction of more renewable energy (see Editorial).

Latterman said the narrow passage of Prop. V, which asked the school board to consider reinstating JROTC, wasn’t really a victory. “I would not call this a mandate. I worked with the campaign, and they weren’t looking for 53 percent. They were looking for 60-plus percent,” Latterman said. “I think you’ll see this issue just go away.”

Neither Latterman nor Clemens would speculate on who the next president of the Board of Supervisors will be, noting that there are just too many variables and options, including the possibility that a newly elected supervisor could seek that position.

At this point the obvious front-runner is Ross Mirkarimi, who not only won re-election but received more votes than any other candidate in any district. Based on results at press time, more than 23,000 people voted for Mirkarimi; Sean Elsbernd, who also had two opponents, received only about 19,000.

Mirkarimi worked hard to get Avalos, Chiu, and Mar elected, sending his own volunteers off to those districts. And with four new progressives elected to the board, joining Mirkarimi and veteran progressive Chris Daly, the progressives ought to retain the top job.

Daly tells us he won’t be a candidate — but he and Mirkarimi are not exactly close, and Daly will probably back someone else — possibly one of the newly elected supervisors.

“It’s going to be the most fascinating election that none of us will participate in,” Clemens said.

The danger, of course, is that the progressives will be unable to agree on a candidate — and a more moderate supervisor will wind up controlling committee appointments and the board agenda.

One of the most important elements of this election — and one that isn’t being discussed much — is the passage of three revenue-generating measures. Voters easily approved a higher real-estate transfer tax and a measure that closed a loophole allowing law firms and other partnerships to avoid the payroll tax. Progressives have tried to raise the transfer tax several times in the past, and have lost hard-fought campaigns.

That may mean that the anti-tax sentiment in the city has been eclipsed by the reality of the city’s devastating budget problems. And while Newsom didn’t do much to push the new tax measures, they will make his life much easier: the cuts the city will face won’t be as deep thanks to the additional $50 million or so in revenue.

It will still be a tough year for the new board. The mayor will push for cuts that the unions who supported the newly elected progressives will resist. A pivotal battle over the city’s future — the eastern neighborhoods rezoning plan — will come before the new board in the spring, when the recent arrivals will barely have had time to move into their offices.

Obama, of course, will face an even tougher spring. But progressives can at least face the future knowing that not only could it have been a lot worse; for once things might be about to get much better.

Amanda Witherell and Sarah Phelan contributed to this report.