Gavin Newsom

San Franciscans want higher taxes

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At least, I assume they do. That would seem to be the what the evidence shows. Because in 23 polls taken over the past nine months, Americans say they support higher taxes  as a part of the budget solution — by an average margin of 65-30. And by almost every measure, San Franciscans are more liberal than Americans as a whole. So it’s likely that if those polls collected data just from this city, we’d see closer to 75 percent of the voters saying they support higher taxes, particularly on the rich and big corporations.


And since San Francisco is so far out on the cutting edge on so many other issues, I have to wonder: Why is everyone at City Hall so afraid of taxes? Why is progressive taxation (and not pension reform) the central issue in the mayor’s race?


Gavin Newsom build his political career on a plan to cut welfare payments for homeless people. Jeff Adachi is trying to get elected mayor by campaigning to cut city employee pensions. Dennis Herrera is talking about his efforts to legalize same-sex marriage. But there’s not a single politician in town who has made fair taxation the centerpiece of a citywide campaign. Although it’s likely that three-quarters of city residents would support at least the concept of higher local taxes on the local rich, this isn’t a signature issue for anyone running for anything. 


Doesn’t that seem a little odd?

Inside the V.I.P. cocktail party with Willie Brown

The Alliance for Jobs and Sustainable Growth hosted a V.I.P. reception just before a mayoral candidate forum held at UCSF Aug. 16, and former Mayor Willie Brown appeared to be the guest of honor. Although the theme of the event was technically “honoring San Francisco’s mayors” — former Mayor Frank Jordan was there, someone indicated that former Mayor Art Agnos was in the room, former Mayor Gavin Newsom was invited but didn’t show, and Mayor Ed Lee was of course in attendence — Brown seemed to be given more prominent recognition than any of the others.

The moment he strolled in, Sup. Mark Farrell, who was doing introductions for the the affair, scrambled onstage to announce Brown’s presence and deliver a warm welcome, and everyone applauded. Within minutes, the former mayor was seen chatting with a crowd that included Mayor Lee and several others. Soon after, Brown and former Mayor Frank Jordan were summoned to the stage to say a few words.

Once in the limelight, Brown cracked a few jokes. He said he felt for the 36 mayoral candidates, who are forced to campaign in an era when the Internet threatens to reveal videos and photos of them at any time to thousands of online viewers. “I’m glad they didn’t have that kind of communication system when I was running,” he said. “I can’t imagine the photographs you’d have of me floating around doing things I shouldn’t have been doing.”

As for his own time in Room 200, “I enjoyed every single solitary minute of it, and if I really thought I had great skills, I would be number 37,” he said, drawing more applause.

Then again, common wisdom says it isn’t necessary for Brown to bother campaigning in order to gain access to Room 200 these days. Later that same evening, during his own turn in the spotlight at the mayoral debate, Mayor Lee came under fire from Board President David Chiu, who revealed that Lee had privately confided to him about a week before he announced his candidacy that he was having a difficult time saying no to Brown and influential Chinatown business consultant Rose Pak when it came to launching a campaign for a full term.

Chiu’s pointed question for the mayor was what had changed in his mind since that conversation, but Lee referenced neither Brown nor Pak in his answer. Instead, he said he’d changed his mind after witnessing his success in changing the tone of government and getting things done in City Hall.

Back at the V.I.P. reception, Brown and Jordan were invited onstage again, this time to receive awards presented by the Alliance for Jobs and Sustainable Growth. But first Steve Falk, president and CEO of the San Francisco Chamber of Commerce, reminded the crowd that there was still time to buy a drink before the debate got underway. He said, “Debates are much more interesting after three drinks.”

Before Falk presented Brown with a commemorative plaque, he said, “It’s tough to put in a few sentences the life and times of Willie Brown,” and proceeded to note that, with his term in the California Assembly and time serving as mayor of San Francisco behind him, Brown “has now followed his friend Herb Caen into an honest line of work as a columnist for the San Francisco Chronicle.”

Being a newspaper columnist doesn’t mean Brown is always kind to members of the local media. While mixing through the crowd minutes after receiving his award, he fired some harsh words at a well-known City Hall reporter who had recently published some unflattering articles about the “Run, Ed, Run” effort to encourage Lee to seek a full term.

In recent months, Brown’s columns have provided the public at large with a rare glimpse into Mayor Lee’s dining experiences in San Francisco. In February, Brown wrote in one of his columns that he went out to North Beach Restaurant at sat at the window table with Lee, Brown’s “friend” Sonya Molodetskaya, and Jack Baylis, who serves as the US Group Executive of Strategic Development for AECOM, one of the city’s largest contractors and a sponsor of the Alliance for Jobs and Sustainable Growth Event. (Baylis was on the invite list for the V.I.P reception, too.)

Apparently, AECOM had something to celebrate that same day — according to an Aug. 16 press release, an AECOM joint venture was just awarded a $150 million contract for program management services for the San Francisco Public Utilities Commission’s wastewater improvement program.

The V.I.P. reception had representation from many key players in the downtown business community, with sponsorship from AT&T, AECOM, Pacific Gas & Electric Co., Wells Fargo, Motorola, California Pacific Medical Center, the San Francsico Chamber of Commerce, the Building Owners and Managers Association, the San Francisco Police Officer’s Association, Shorenstein Properties, and others. Several labor unions, including the United Association of Plumbers & Pipefitters Union Local 38, United Brotherhood of Carpenters and Joiners of America Local Union No. 22, and United Food and Commercial Workers Union Local 5 were also listed as sponsors. Guests included district supervisors, developers, lobbyists, business owners, mayoral candidates, media spokespeople, executives from the health care industry, and other political insiders.

Clearly, there were many people in the room who wanted to get on Brown’s good side.

So much for civility

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rebeccab@sfbg.com

The San Francisco mayor’s race went from a lackluster affair to a dynamic match as the Aug. 12 filing deadline drew near and two prominent city officials who had previously said they wouldn’t run tossed their hats into the ring.

Mayor Ed Lee’s Aug. 8 announcement that he’d seek a full term prompted several of his opponents to use their time onstage at candidate forums to decry his reversal and question his ties to the moneyed, influential backers who openly urged him to run. Several days later, Public Defender Jeff Adachi’s last-minute decision to run for mayor signaled more tension yet to come in the debates.

At this point, eight current city officials are running campaigns for higher office, and the dialogue is beginning to take on a tone that is distinctly more biting than civil. Adachi, who had not yet debated onstage with his opponents by press time, told reporters he was running because he wanted “to make sure there’s a voice in there that’s talking about the fiscal realities of the city.”

Adachi authored a pension reform ballot measure that rivals the package crafted by Lee, labor unions, and business interests (see “Awaiting consensus,” May 31, 2011). At an Aug. 11 candidate forum hosted by the Alice B. Toklas Democratic Club, the San Francisco Young Democrats, and the City Democratic Club, all of the top-tier candidates who were present indicated that they would support Lee’s pension reform measure and not Adachi’s.

“The reforms that I have championed are reforms that are absolutely needed, along with action,” Adachi told reporters moments after making his candidacy official. He added that after watching the mayoral debates, “I became convinced that either the candidates don’t get it, or they don’t want to get it.”

Those fighting words will likely spur heated exchanges in the months to come, but until Adachi’s entrance into the race, it was Lee who took the most lumps from opponents. Even Board President David Chiu, a mayoral candidate whose campaign platform is centered on the idea that he’s helped restore civility to local government, had some harsh words for Lee during an Aug. 11 mayoral debate.

“I do regret my decision to take Ed Lee at his word when he said he would not run,” Chiu said in response to a question about whether he regretted any of his votes. He also said his first interaction with Lee after the mayor had announced his candidacy was “a little like meeting an ex-girlfriend after a breakup.”

Lee, whose pitch on the campaign trail features a remarkably similar narrative about transcending political squabbling in City Hall, became the target of boos, hisses, and noisemaker blasts when a boisterous crowd packed the Castro Theater for an Aug. 8 candidate forum. He received one of the most forceful rebukes from Sen. Leland Yee, an opponent whom Lee supporters are especially focused on defeating.

“Had the mayor said that he would in fact run, he may not have gotten the votes for interim mayor,” Yee said. “Will you resign from your post,” he asked, challenging Lee, “in order to then run for mayor?” Days later, Yee had developed a new mantra about throwing power brokers out of City Hall instead of “wining and dining with them.”

Yet Lee said his decision to enter the race wasn’t because of the push from his backers, but because of how well things have gone during his brief tenure in Room 200. “Things have changed at City Hall, particularly in the last seven months,” he told reporters Aug. 8. “And because of that change, I changed my mind.”

In yet another twist, former Mayor Art Agnos — whom progressives had looked to as a potential appointee to the vacant mayor’s seat back in December, before Lee was voted in to replace former mayor and Lieutenant Governor Gavin Newsom — delivered a surprise endorsement of City Attorney Dennis Herrera shortly after Lee declared. The decision was particularly significant since Agnos first hired Lee to serve in city government, and has a long history of working with him.

“[Herrera] is an independent person who will empower neighborhoods … and won’t be beholden to power brokers,” Agnos said. He also told the Guardian he wasn’t surprised that Lee had opted to run, given the role former Mayor Willie Brown and influential business consultant Rose Pak had played in orchestrating Lee’s appointment.

“Anybody who is an astute political observer saw the signs from the very beginning,” Agnos said. In response to a comment about his unique vantage point as a would-be caretaker mayor, he said, “I would’ve kept my word and not run for reelection.”

Intense focus on Lee’s flip-flop, and on the Progress for All-backed “Run, Ed, Run” effort that was the subject of an Ethics Commission discussion that same week, stemmed at least in part from the threat the incumbent mayor represents to other candidates. A CBS 5-SurveyUSA poll suggested he became an instant front-runner.

Yet questions about “Run, Ed, Run” — some raised by observers unaffiliated with any campaigns — also served to spotlight the candidate’s longstanding ties with backers closely connected to powerful business interests that stand to lose big if their links to city government aren’t preserved.

Retired Judge Quentin Kopp issued an open letter to District Attorney George Gascón Aug. 1 urging him to convene a criminal grand jury to investigate whether illegal and corrupt influencing had occurred when Pak — a close friend of Lee’s and a key driver behind the “Run, Ed, Run” effort — reportedly recruited executives of Recology to gather signatures urging Lee to run.

Recology, which handles the city’s waste, was recently awarded a $112 million city contract, and Lee’s scoring of the company and recommendation to raise rates in his previous capacity as city administrator benefited the company. Brown received substantial campaign donations from Recology in previous bids for mayor. Kopp is the coauthor of a ballot initiative asking San Francisco voters if the company’s monopoly on city garbage contracts should be put out to bid.

“A criminal grand jury is vital in order to put people under oath and interrogate them,” Kopp said. “They would put Willie Brown under oath, put Pak under oath, put [Recology President Mike Sangiacomo] under oath, put [Recology spokesperson Sam Singer] under oath … That’s the course of action that should be pursued by this.”

Although Kopp told the Guardian that he hadn’t yet received a response from Gascón, DA candidates Sharmin Bock, Bill Fazio, and David Onek nevertheless seized the opportunity to publicly and jointly call for Gascón to recuse himself from any investigation into Progress for All. Gascón has a conflict of interest, they argued, since he reportedly sought Pak’s advice when deciding whether to accept Newsom’s offer to switch from his previous post as police chief to his current job as top prosecutor.

The Ethics Commission determined unanimously Aug. 8 that the activities of Progress for All, the committee that was formed to encourage Lee to run, had not run afoul of election laws despite director John St. Croix’s opinion that it had filed improperly as a general purpose committee when it ought to have been a candidate committee, which would have placed caps on contribution limits.

“The Ethics Commission has spoken, and they’ve supported our position,” Progress for All consultant Enrique Pearce of Left Coast Communications told the Guardian.

St. Croix did not return Guardian calls seeking comment, but an Ethics Commission press release included a caveat: “Should facts surface that coordination occurred between Mayor Lee and [Progress for All], such allegations will be investigated under the Commission’s enforcement regulations.”

At a Lee support rally organized by his official campaign team on Aug. 11, volunteers who arrived with “Run, Ed, Run” materials produced by Progress for All were told they could not display those signs and T-shirts; the same people were on a first-name basis with one of Lee’s campaign team members.

Pressed on the question of whether there was any coordination between agents of Progress for All and Lee, Pearce said the Ethics Commission discussion had focused on whether Lee had been a candidate. “Whether or not he’s a candidate has nothing to do with whether or not he has dinner with Rose [Pak],” Pearce noted. He insisted that there had not been coordination, and that the efforts to encourage Lee to run and to support Lee as a candidate were totally separate.

Sup. John Avalos, who is running for mayor on a progressive platform, recalled at an Aug. 8 candidate forum how things unfolded when Lee’s name first came up as an appointee for interim mayor.

Avalos reminded people that he had called for postponing the vote back in December because he hadn’t even had a chance to sit down and meet with Lee, who was in Hong Kong at the time. With behind-the-scenes deals orchestrating his appointment, Avalos said, “We saw City Hall turning into one big back room.”

Lee appointment of Nuru darkens the ethical cloud over Room 200

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City Attorney Dennis Herrera deserves credit for being the one mayoral candidate willing to bring a full-throated denunciation of the sleazy and corrupt politics now flowing from Mayor Ed Lee, who yesterday appointed discredited political fixer Mohammed Nuru to head the Department of Public Works, compounding a series of ethically questionable actions by Lee and his supporters.

While it was inexplicably buried by editors at the bottom of Section C, the Chronicle’s City Insider today had a pair of good stories on Lee’s mounting political problems. The first was about how the U.S. Attorney’s Office has reportedly launched a probe of Progress for All and its “Run, Ed, Run” campaign, for which Lee ally Rose Pak illegally sought support from executives at Recology, the garbage company that had just been awarded a huge city contract, largely because then-City Administrator Lee had given the company far higher ratings than the other two supposedly impartial bid judges.

The second story was about Herrera slamming Lee’s choice of Nuru. On his campaign website, Herrera reminded voters about the scandals that have surrounded Nuru – like Lee, someone who has always taken his cues from former Mayor Willie Brown – who illegally diverted city funds and workers into campaigning for Brown in 1999 and Gavin Newsom in 2003. Brown now writes for the Chronicle and is even allowed to comment on the mayor’s race.

The scandal – first broken by the Chronicle in 2004, furthered by reporting in the Guardian, and then investigated by Herrera’s office – involved Nuru steering city funds to his nonprofit San Francisco League of Urban Gardeners and then requiring its employees to illegally do campaign work during work hours. Nuru then went to work for Lee at the DPW while continuing to illegally use SLUG’s funds and employees for political purposes.

Herrera said the appointment smacks of “cronyism, politics, and poor judgment.” Previously, Herrera had the best line about Lee as he jumped into race, telling a mayoral forum: “To my mind, Ed Lee’s biggest problem isn’t that he’s a dishonest man – it’s that he’s not his own man,” Herrera said. “The fact is, if Ed Lee is elected mayor, powerful people will continue to insist on things.”

Topping that list of the powerful people who have clearly been pulling Lee’s strings throughout his career are Pak and Brown, both of whom are consultants who regularly get paid by corporations that do big business with the city and need support from the Mayor’s Office. And their actions are often blatant and shameless, just like Nuru’s history, and even exposure of the misdeeds doesn’t correct the problem.

For example, as I reported last week, Brown’s administration helped Pak buy a Rincon Hill condo for half-price through a city affordable housing program in 2002, even though her disclosure forms showed she had $73,414 in her checking account, some of which probably included the $12,000 consulting fee she reported on her tax return from Emerald Fund – the politically connected developer of the project, employees of which are barred from buying such below-market rate units – and $10,000 from Chiang CM Construction, which helped fund Progress for All.

Most of this information was prominently reported in 2003 by the Examiner, but nothing was ever done. Pak got to keep her taxpayer-subsidized condo. Same thing with Nuru, who remained at DPW even after the City Attorney’s Office and Controller’s Office concluded his actions were corrupt. And Lee was appointed interim mayor even after being tied to several corrupt Brown scams, including overriding city workers to give contracts to fraudulent companies at Brown’s behest.

And now, Lee has placed Nuru in charge of a city department with a $129 million city budget and 1,200 employees, despite Nuru’s proven history of directing his subordinates to illegally campaign for his mayoral benefactors. You couldn’t even make this stuff up, and even Examiner columnist Melissa Griffin flatly calls the move “stupid.”

But I think it’s more than just stupid. And the appointment of Nuru is more than just a setback from DPW that good government activists had been fearing for a long-dysfunctional department that had gotten much better in recent years. It looks like flat-out corruption of the sort that ought to knock Lee out of the frontrunner position and hopefully land him in front of a grand jury at some point.

Adachi jumps in and the slugfest begins

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With the Examiner reporting that Public Defender Jeff Adachi this morning unexpectedly pulled papers to run for mayor, the wide-open race – now with 11 top-tier candidates who are either office-holders or strong fundraisers – just got a bit more interesting and will probably get a lot more nasty.

While Mayor Ed Lee has the advantage of incumbency and support from powerful players like former Mayor Willie Brown and Chinatown fixer Rose Pak, he also has the biggest target on his back and decades of patronage politics dirt to be dug up on him, a process that has already begun and will get far worse in the coming months.

Previously, Leland Yee and his history as a political weather vane had been the biggest target for op-shop research and popular derision, but Adachi might now displace him as the second-biggest target of political ire after his back-to-back campaigns of pushing pension reform proposals that didn’t have buy-in from labor.

The only certain thing about this year’s mayor’s race, which has so far been marked by downright boring levels of civility, is that it is likely to turn into slugfest, ranked-choice voting be damned. Sure, Lee’s camp will labor mightily to sell its unofficial “it’s all about civility” motto, but perhaps they should have thought about that before naming Gavin Newsom’s prickly and belittling former press secretary, Tony Winnicker, as its spokesperson.

So buckle up, everyone, with today’s deadline for filing to run passing by, it’s game on!

Ed Lee does some ‘splainin

Ed Lee, appointed San Francisco’s interim mayor early this year after giving the San Francisco Board of Supervisors his word that he would not seek a full term, filed papers to enter the race as a mayoral candidate on Aug. 8.

“I haven’t changed at all,” Lee said when reporters questioned his 180-degree turnaround. “I’ve just made a change of mind in terms of running for this office.”

Standing beside his wife, Anita, the mayor delivered a five-minute speech about what has transpired in his seven months as interim mayor, saying he was motivated to run by his accomplishments in office so far.

http://www.youtube.com/watch?v=7u4DudZPY80

Lee said he had met with members of the Board of Supervisors and understood that some would be looking for an explanation on his change of heart.

Former District 6 Sup. Chris Daly has said he believes Lee’s run for mayor was scripted from the start. Whatever the case, an outburst that occurred as Lee was filling out paperwork certainly was not part of any script. Surrounded by news cameras, Charles Khalish heckled Lee, asking, “Sir, are you going to step down? You’re in the office under false pretenses, Mr. Lee.” When security surrounded him, he loudly protested, and a group of sheriff deputies and mayoral security officers with the San Francisco Police Department closed in and grabbed him.

http://www.youtube.com/watch?v=Gs0tFvWCNzo

While it was impossible for this reporter to see exactly what took place seconds before Khalish was forcibly removed, Tony Winnicker, a former press secretary to Mayor Gavin Newsom who is now issuing media advisories for Lee’s mayoral campaign, later claimed he wouldn’t have been removed if he hadn’t gotten pushy. The officers hauled Khalish down the corridor as he shrieked, “Heeeeeeelp!!” They restrained his arms behind his back and placed his head in a lock while they told him to stop resisting.

“He was cited for obstructing public business,” sheriff spokesperson Eileen Hirst later told the Guardian. “It is likely that he will be released as soon as the paperwork is finished.” She added that she had not yet seen an incident report.

The interim mayor said he made the decision to run over the weekend with the help of his family members. Chinatown power broker Rose Pak is not part of his family, but Lee’s daughter Brianna wrote in a January editorial called “Fear the ‘ Stache” that she had always known Pak as “Auntie Rose.”

Pak was a key driver behind “Run, Ed, Run,” the campaign backed by Progress for All that plastered cartoon drawings of Lee all over San Francisco. Progress for All will be the subject of discussion at the Aug. 8 Ethics Commission meeting, since Ethics director John St. Croix has stated he believes the political organization filed improperly as a general purpose committee. In late July, five mayoral candidates — including Board President David Chiu — joined Democratic County Central Committee chair Aaron Peskin in asking for an investigation into whether Progress for All had violated local campaign laws. Campaign finance reports, meanwhile, show that the effort was backed by a small group of inflential business insiders. Asked about the role of “Run, Ed, Run,” on his campaign for mayor, here’s how Lee responded:

http://www.youtube.com/watch?v=CBI5SSmVr4E

This evening, Lee the will participate in a mayoral candidate forum hosted by the Duboce Triangle/Castro/Eureka Valley Neighborhood Association at the Castro Theater at 7 p.m.

is Rec-Park really broke?

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By David Looman

OPINION The senior staffers at the Recreation and Park Department routinely cry that the department is poor and going broke. Is it possible they are lying?

Conspicuously lacking in discussions of Rec-Park funding is any kind of hard data about how well or poorly San Francisco Rec-Park is really funded. Whether it’s the mainstream media, the alternative press, or our elected representatives on the Board of Supervisors, nobody seems to know how our park system compares with other park systems in California or the U.S.

And nobody seems to want to check up on Rec-Park’s sad-sweet story.

This lack of real information is particularly surprising, since the data is readily available. Every year, the Trust for Public Land, a well-respected, San Francisco-based park advocacy organization, conducts a meticulous and comprehensive survey of how well recreation and park systems across the country are being funded. The survey is always available on the Web, at www.tpl.org.

Surprise!

In the TPL’s 2000 book, Inside City Parks, by Peter Harnik, San Francisco was among the three best-funded systems, measured either per acre or per resident. In every annual survey after that, San Francisco continued to rank in the top three, until 2006. In 2006, the TPL found San Francisco to be the best-funded park system in America.

That’s right, the best-funded department in the entire U.S.!

This year’s survey, based on the 2008 figures, has changed its methodology a bit, and expenditures are no longer calculated per acre. With the new methodology, San Francisco has slipped a bit. The city is now only the fourth-best funded park system in the country for cities with populations larger than 500,000, and the sixth best for cities over 250,000.

For operating expenditures (total budget minus capital spending) San Francisco is the fourth best funded among all cities. We don’t have as many capital expenditures as, say, Seattle, whose newer park system is still growing.

The question of where that money goes is another matter. I think I can offer a few suggestions about what happens.

Problem number one is the long and glorious history of absolutely incompetent management, particularly in the last 15 years, under the administrations of mayors Willie Brown and Gavin Newsom. Second is that longstanding Rec-Park Department practice of ignoring and rejecting any public input, including factual input, from people who actually use and know the parks. This has led to a number of costly mistakes.

The department has more ethically dubious faults too—the wages spent organizing so-called “public support” for some of its unpopular projects; more wages spent having employees testify about what a great job the department is doing, etc.

The department presently is trying to privatize everything within reach. Its poor-mouth rational for doing so is false. It’s time we all faced the fact that Rec-Park isn’t giving us the whole truth.

David Looman is a longtime San Francisco political consultant and parks user.

Taking out the trash

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sarah@sfbg.com

A controversial city waste disposal contract appeared primed for final approval by the Board of Supervisors on July 26 (after Guardian press time) — despite being challenged by a lawsuit and initiative campaign — after two progressive supervisors rescinded their initial vote in a July 20 committee hearing and supported awarding the contract to Recology.

City staff had recommended awarding the 10-year, $112-million landfill disposal and facilitation agreement to Recology (formerly NorCal Waste Systems, Inc.), which has grown from a locally based company to the 10th largest waste management firm in the US, with $652 million in annual revenue, according to Waste Age magazine.

If the full board follows the unanimous recommendation of its Budget & Finance Committee, the vote will authorize Recology to transport and dispose up to 5 million tons of the city’s solid waste at the company’s Ostrom Road landfill in Wheatland, Yuba County. The contract will take effect when San Francisco’s disposal agreement at Waste Management Inc.’s Altamont landfill in Livermore expires — estimated to occur in 2015.

The deal will cement Recology’s control, at least for a 10-year period, over all aspects of the city’s solid waste stream, at a cost of about $225 million per year, even as the company faces significant challenges, many related to the city’s 1932 refuse collection and disposal ordinance.

That law, approved during the Great Depression to prevent conflict between competing garbage haulers, has resulted in Recology’s exercising complete control over trash collection and transportation in San Francisco, without having to bid on those contracts or pay the city franchise fees.

During the negotiations over the city’s next landfill contract — the only aspect of San Francisco’s waste stream put out to bid — this 79-year-old law was invoked to explain why Recology has the sole authority to transport trash and compostables to Wheatland, which is 130 miles from San Francisco.

The move also comes as Yuba County is contemplating significantly increasing dumping fees at the landfill — from $4.40 per ton to $20 or $30 per ton — a hike that could erase the $100 million that the Department of the Environment (DoE) claims the Recology deal would save over a competing bid by Waste Management Inc. WM is the largest waste firm in the U.S., according to Waste Age, with about $12.5 billion in annual revenues.

On July 18, WM filed a lawsuit in San Francisco Superior Court to prevent the city from approving the agreements with Recology on the grounds that they violate the city’s competitive bid laws.

“The Department of the Environment inappropriately and unlawfully expanded the scope of its 2009 ‘request for proposal for landfill disposal capacity’ and, therefore, violated the city’s competitive procurement laws,” WM alleges in the suit.

WM has long held that DoE inappropriately issued a tentative contract award for both the transportation and disposal of solid waste to Recology without soliciting any other transportation bids. But DoE, which gleans $7 million annually (to operate recycling, green building, and environmental justice programs and long-term planning for waste disposal) from rates that Recology’s customers pay, ruled last year that WM’s objections are “without merit.”

Now WM is asking the court to require DoE to scrap its award to Recology and issue a new request for proposals to comply with competitive bidding requirements.

“There is ample time for the department to issue a new RFP,” WM stated July 18, noting that there is plenty of room at its Altamont landfill to accommodate the city’s waste after the contract expires.

That same week, a coalition led by retired Judge Quentin Kopp, community activist Tony Kelly, and Waste Solutions CEO David Gavrich announced that it had submitted enough signatures to qualify an initiative on the June 2012 ballot requiring competitive bidding and franchise fees from any company that seeks to win any aspect of the city’s solid waste business.

Kelly says his group was unable to collect enough signatures in time for the November election because Recology hired the city’s two biggest signature-gathering firms to circulate what he calls a “phony petition” in support of Recology’s performance in San Francisco. And signature gatherers say they were harassed by Recology boosters while trying to petition citywide.

“But I believe the question of whether candidates support competitive bidding will continue to be a defining issue this fall,” Kelly said.

The board’s decision on the landfill agreements has already been delayed several months, following a February 2011 Budget and Legislative Analyst report recommending that the board consider submitting a proposition to the voters to repeal the 1932 refuse ordinance so that future collection and transportation services be put to bid. The report also recommended that future residential and commercial refuse collection rates be subject to board approval.

But with two progressive supervisors running in citywide elections this fall, and with Recology exerting massive pressure on elected officials, the Kelly coalition could not find four supervisors to place such a charter amendment on the November ballot, forcing them to launch their own initiative.

And at the July 20 meeting of the board’s Budget and Finance Committee, Sup. Ross Mirkarimi, who is running for sheriff, and Sup. Jane Kim rescinded their initial decision to send the agreements to the full Board without recommendation. Instead, after the committee had moved on to other business, they joined Chair Carmen Chu, one of the most conservative supervisors, in forwarding the Recology agreements to the full board with unanimous support.

Mirkarimi interrupted the committee’s next discussion to rescind the landfill vote. “I think there was some misunderstanding a little bit in wrapping up the landfill agreements with Recology, ” Mirkarimi said. He said that he asked for the vote to be rescinded, “so we can accurately reflect some of the sentiments being articulated here. I think we just learned some things on the fly.”

In many respects, the switch by Kim and Mirkarimi made sense: prior to their initial vote, they made positive statements about the proposed agreements, but also stated an interest in exploring the appropriateness of the city’s 1932 law.

“Overall, I think this was a good contract,” Kim said. But she noted that, thanks to the 1932 ordinance, the city doesn’t get franchise fees. And she claimed that it only gets half of what other Bay Area cities get from their waste contractors. “So, I’m really interested in continuing that conversation, but I think it’s a separate conversation,” she said.

Mirkarimi said it was his concerns that led the committee to “put a pause” on the Recology agreements until it could “undertake more homework.” He also noted that his office “held a number of meetings” and he tried to “leverage this opportunity to reanimate activity at the Port.”

“I was hoping that we might be able to arrive at something much more deliverable,” Mirkarimi said, presumably referring to the fact that these efforts resulted in DoE unveiling an amendment to include two “possible changes” to operations and facilities at the Port of San Francisco in the agreements.

These changes involve utilizing other modes of transportation, including barges, as alternatives to the rail-haul plan proposed in the agreement. They also call for developing new facilities at the Port for handling waste, recyclables, organics, and other refuse. The cost of such alternatives would be passed onto the rate payers.

“I think that, cost-effectively, we may be able to insert the Port into this equation, but it’s not ready for prime-time yet,” Mirkarimi said. He concluded by saying that Recology has been innovative in reducing the city’s waste stream.

“This should be a front-burner conversation,” Mirkarimi said, noting that former Mayor Gavin Newsom focused on making San Francisco “the greenest city” in the United States. He added that San Francisco claims to have a 77 percent diversion rate, the highest in the U.S., and said, “That comes at a cost, it doesn’t come for free.”

After the meeting, DoE deputy director David Assmann said that the City Attorney’s Office is reviewing WM’s filing. “But it’s too soon to comment,” Assmann said.

He also claimed that, thanks to the 1932 ordinance, “there was no practical way” for another company to transport San Francisco’s waste to its designated landfill, “other than building a second transfer station outside the city.”

But Kelly continued to express concerns that the agreements are not competitive, and that the city lacks a contract and ensuing franchise fees. “They are running this as if it’s still the 1950s,” he said.

Kelly claimed that Recology Vice President John Legnitto, who is the 2011 chair of the SF Chamber of Commerce’s Board of Directors, recently told him that Recology has been in negotiations with City Hall around a $4 million franchise fee, but that the money would now be spent opposing Kelly’s competitive bidding initiative.

Best of the Bay 2011 Readers Poll: City Living

1

BEST OF THE BAY 2011: READERS POLL

CITY LIVING

 

BEST STREET FAIR

Folsom Street Fair

www.folsomstreetfair.com

 

BEST HOTEL

The Fairmont Hotel

950 Mason, SF. (415) 772-5000, www.fairmont.com

 

BEST TOURIST ATTRACTION

Golden Gate Bridge

 

BEST TOUR

Local Tastes of the City

2179 12th Ave., SF. (415) 665-0480 and 588 Sutter, SF. (415) 665-0480 www.localtastesofthecitytours.com

 

BEST OVERALL LOCAL BLOG

SFist

www.sfist.com

 

BEST OVERALL LOCAL WEBSITE

Funcheap SF

www.sf.funcheap.com

 

BEST STARTUP COMPANY

Square

www.squareup.com

 

BEST NEWS BLOG OR SITE

Bay Citizen

www.baycitizen.org

 

BEST STYLE BLOG OR SITE

No Pants 2011

www.nopants2011.com

 

BEST SEX BLOG OR SITE

Tiny Nibbles

www.tinynibbles.com

 

BEST POLITICIAN, BEST POLITICIAN YOU LOVE TO HATE

Gavin Newsom

 

BEST NONPROFIT ORGANIZATION

Rocket Dog Rescue

www.rocketdogrescue.org

 

BEST ADULT EDUCATION

The Writing Salon

Various locations, www.writingsalons.com

 

BEST TV NEWSCASTER

Dana King of CBS

 

BEST LOCALLY PRODUCED TV SHOW

Check Please Bay Area

blogs.kqed.org/checkplease

 

BEST RADIO STATION

97.3 Alice

radioalice.radio.com

 

BEST RADIO DJ

Sarah and Vinnie of 97.3 Alice

 

BEST RADIO SHOW

Fernando and Greg of Movin 99.7

 

BEST PLACE TO GET A TATTOO

Black and Blue Tattoo

381 Guerrero, SF. (415) 626-0770, www.blackandbluetattoo.com

 

BEST TATTOO ARTIST

Karen Roze of Sacred Rose

 

BEST LOCAL ANIMAL RESCUE

SF SPCA

www.sfspca.org

 

BEST DOG-WALKING SERVICE

Oakland Dog Walker

(510) 863-0691,www.oakland-dog.com

 

BEST PET GROOMER

VIP Grooming

4299 24th St., SF. (415) 282-1393

 

BEST VETERINARIAN

Mission Pet Hospital

720 Valencia, SF. (415) 552-1969, www.missionpet.com

 

BEST DENTIST

Blair A. Keck, DDS

4128 18th St., SF. (415) 863-9255

 

BEST DOCTOR

Erika Horowitz, ND

(415) 643-6600, www.sfnatmed.com

 

BEST PLUMBER

Thomas Friel Plumbing

245 Connecticut, SF. (415) 626-1662

 

BEST ELECTRICIAN

Pauric Electric

541 Scott, SF. (415) 234-0839, www.thesfelectrician.com

 

BEST MOVING SERVICE

Delancey Street Moving and Trucking

600 Embarcadero, SF. (415) 512-5110, www.delanceystreetfoundation.org

 

BEST ALTERNATIVE HEALING

Double Happiness Health

1501 Mariposa, Suite 318, SF. (415) 255-2252, www.doublehappinesshealth.com

 

BEST THERAPIST

Kendra Rae of Linea Body

www.lineabody.com

 

BEST CAR MECHANICS

Pat’s Garage

1090 26th St., SF. (415) 647-4500, www.patsgarage.com

 

BEST MOTORCYCLE REPAIR

Charlie’s Place

3084 17th St., SF. (415) 255-0316, www.charlies-place.com

 

BEST BICYCLE REPAIR

Valencia Cyclery

1065 and 1077 Valencia, SF. (415) 550-6601, www.valenciacyclery.com

 

BEST SHOE REPAIR

Haight Street Shoe Repair

1614 Haight, SF. (415) 565-6710

 

BEST TAILOR

Al’s Attire

1314 Grant, SF. (415) 693-9900, www.alsattire.com

 

BEST LAUNDROMAT

Brain Wash

1122 Folsom, SF. (415) 431-9274, www.brainwash.com

 

BEST SALON

Carmichael Salon

619 Post, SF. (415) 409-2353, www.carmichaelsalon.com

 

BEST HAIRSTYLIST

Greg Griffin of the Barber Lounge

854 Folsom, SF. (415) 934-0411, www.barberlounge.com

 

BEST MASSAGE

The Mindful Body

2876 California, SF. (415) 931-2639, www.themindfulbody.com

 

BEST DAY SPA

Blue Turtle

57 West Portal, SF and 170 Columbus, SF. (415) 699-8494, www.blueturtlespa.com

 

BEST GYM

World Gym

290 De Haro, SF. (415) 703-9650, www.worldgym.com

 

BEST PERSONAL TRAINER

Jennifer Pattee, Basic Training

3301 Lyon, SF. (415) 519-6483, www.basictrainingsf.com

 

BEST YOGA STUDIO

Monkey Yoga Shala

3215 Lakeshore, Oakl. (510) 595-1330, www.monkeyyoga.com

 

BEST YOGA INSTRUCTOR

Deborah Burkman of Burkman Yoga

2876 California, SF. (415) 931-4367, www.burkmanyoga.com

 

BEST AMATEUR SPORTS TEAM

Fog Rugby

www.sffog.org

 

BEST PUBLIC SPORTS FACILITY

Kezar Stadium

755 Stanyan, SF

 

BEST BEACH

Baker Beach

 

BEST NATURE SPOT FOR PEOPLE WITH DISABILITIES

Muir Woods

(415) 388-2596, www.nps.gov/muwo

 

BEST CAMPGROUND

Samuel P. Taylor State Park

Sir Francis Drake, Lagunitas. (415) 488-9897

 

BEST CAMP FOR KIDS

Silver Tree Day Camp

www.sfrecpark.org

 

BEST PARK FOR DOGS

Fort Funston

 

BEST SKATE SPOT

Potrero Del Sol

 

BEST SURF SPOT

Linda Mar

 

BEST PLACE TO WATCH THE SUNSET

Land’s End

Recology president Mike Sangiacomo disses the Guardian as landfill agreements head to full Board

4

Dressed in neon- yellow vests, a crowd of Recology employees filed into the Board’s Chambers to witness the Board’s Budget and Finance subcommittee, which Sup. Carmen Chu chairs, vote to forward the Department of Environment’s proposal to award the city’s landfill disposal and facilitation agreements to Recology (formerly NorCal Waste, Inc), to the full Board.

The B&F vote wasn’t exactly a surprise. In the past six months, Recology’s top brass have been exerting pressure on the committee members to approve the agreements, which got delayed after folks started raising questions about the lack of a franchise fee and competitive bidding on all other aspects of San Francisco’s multimillion dollar municipal solid waste stream. And lobbyist Alex Clemens reported $17, 134.25 in promised payments from Recology between January and June 2011 for services that included contact with B&F subcommittee vice-chair Ross Mirkarimi in mid-June.

If the full Board goes ahead and gives the green light July 26, that approval would authorize Recology, which Waste Age’s June 2011 issue named as the 10th largest waste management company in the U.S.,  to start transporting and disposing up to 5 million tons of municipal solid waste in its Ostrom Road Landfill in Wheatland, Yuba County, once the city’s agreement at Waste Management’s Altamont landfill in Livermore expires, which is expected to happen some time in 2014 or 2015.

The initial refusal of Mirkarimi and fellow B&F subcommittee member Sup. Jane Kim to agree to Chu’s suggestion that they forward the proposed agreements “with recommendation” appeared to be indications that both supervisors harbored some concerns about the deal. UPDATE: But According to DoE communications director Mark Westlund, before yesterday’s meeting was over, Mirkarimi called to rescind the vote on the landfill item asking for it to go to the full Board with recommendation. Jane Kim concurred, and so now it goes to the Board with unanimous committee support. 

“Overall, I think this was a good contract,” Kim said during the July 20 hearing.

Kim added that she thinks “We need to continue the dialogue,” about the city’s 1932 refuse collection and disposal ordinance, which resulted in Recology gaining a monopoly over every aspect of the city’s $225 million-a-year waste stream, except the $11-million-a-year landfill disposal agreement.

Kim noted that under the arrangement that grew out of the 1932 ordiance the city doesn’t get a  franchise fee. And she claimed that San Francisco is getting half of what other Bay Area cities, which all have franchise fees, get from their waste contractors. “So, I’m really interested in continuing that conversation, but I think it’s a separate conversation,” Kim said.

Mirkarimi, who is running for sheriff this fall, noted that he has been “the most outspoken member” of the committee on the Recology item, and that his concerns were what led the committee to “put a pause” on the deal, until the committee could “undertake more homework.”

Thanks to that pause, the city’s LAFCO committee was able to commission a report on what other jurisdictions do around transporting and disposing of their solid waste in landfills, and Mirkarimi noted that his office “held a number of meetings” and he tried to leverage this opportunity to “reanimate activity at the Port.”

“I was hoping we might be able to arrive at something much more deliverable,” Mirkarimi said, presumably referring to the fact that these efforts only resulted in DoE unveiling a last-minute amendment to include two “possible changes” to operations and facilities at the Port of San Francisco in the agreements.

These possible changes, which DoE director Melanie Nutter presented during the July 20 hearing, involve a) utilizing modes of transportation, including barges, other than, or in addition to, the rail haul plan proposed in the agreement, b) developing new facilities at the Port for the handling of waste, recyclables, organics and other refuse, meeting no later than the fifth anniversary of the agreement to discuss the feasibility of such changes, and c) incorporating into the rates, or otherwise financing, the cost of implementing such transportation alternatives and the cost of such facilities.

“I think that cost-effectively we may be able to insert the Port into this equation, but it’s not ready for prime-time yet,” Mirkarimi observed.

Mirkarimi concluded by noting the many innovative things Recology has done in terms of making the city’s waste disposal system more environmentally friendly. “This should be a front-burner conversation,” Mirkarimi said noting that Mayor Gavin Newsom made it a focus of his administration to make San Francisco the greenest city. Referring to the fact that San Francisco claims to have a 77 percent diversion rate—the highest in the U.S—Mirkarimi said, “That comes at a cost, it doesn’t come for free.”

Mirkarimi’s comments came in the wake of Nutter’s claims that Recology’s bid for the landfill disposal agreement will save ratepayers $130 million, over the 10-year course of the agreement, compared to the bid that Waste Management submitted. “This is the best deal for San Francisco,” Nutter said.

Nutter’s estimates were repeated by Jim Lazarus, who spoke on behalf of the SF Chamber of Commerce and the Alliance for Jobs and Sustainable Growth. “This is the right contract for the people of San Francisco,” Lazarus said.

But Nutter’s $130 million estimate was thrown into question by Yuba County Sup. Roger Abe, who had driven the 130 miles from Wheatland to alert San Francisco  that Recology’s bid is based on the assumption that Yuba County will only charge San Francisco a $4.40 per ton host fee.

As Abe pointed out, Yuba’s rates have not changed in 14 years, and his county is considering increasing them later this year by up to $20 or $30 a ton.
Such an increase, multiplied by the 5-million tons of garbage in the agreement, could dramatically increase the cost to San Francisco ratepayers over the course of 10 years, Abe observed..

[If Yuba County approves an increase, and diesel fuel prices also increase, it could eliminate much of the cost differential between Recology’s and WM’s bid: a recent Budget and Legislative Analyst report shows that Recology would charge $58.94 a ton, ($28.53 for tipping and other fees + $30.14 transportation cost per ton), while WM would charge $66.79 for tipping and other fees + $18.33 transportation costs per ton.). But if diesel rises above $2:30 a gallon, SF ratepayers could also get hit with a fuel surcharge.]

Also speaking at the hearing was former D10 supervisorial candidate Tony Kelly, who along with retired Judge Quentin Kopp, David Gavrich’s SF Bay Railroad, and other concerned citizens, recently gathered 12,000 signatures to qualify a petition to require all aspects of San Francisco’s $225-million-a-year waste services to be put out to bid, and to require the winning bidder to pay San Francisco an annual franchise fee.

Kelly et al were originally aiming to qualify their petition for the 2011 ballot, but they blame what Kelly described during public comment as, “a very expensive advertising campaign,” by Recology, plus harassment of petition gatherers and signers, as why they ultimately had to delay qualifying their initiative until the June 2012 election cycle.

Kelly urged the committee to probe the details of a $10 million Special Reserve fund, which Recology could access, under the terms of its facilitation agreement, to cover all its expenses that have not yet been reimbursed through rate hikes. “You’d think the Budget and Finance sub-committee would want to explore those things,” Kelly said.

David Gavrich, who is also President & CEO of Waste Solutions Group, which has hauled 6 million tons of waste in the last 20 years, said approving the landfill disposal agreement, without knowing what rates Yuba County are about to set, was tantamount to “opening up San Francisco’s check book to Yuba County.”

“Recology has never moved a single ton by rail,” Gavrich also asserted.

But while none of the supervisors asked for any clarification of details in the proposed agreements, including the last-minute amendment, during the hearing, Chu was quick to comment about Gavrich’s “blank check” comment, noting that any county can increase its rates. “Alameda County already charges a lot more, so there are no guarantees either way,” Chu said.

She also claimed that the agreements had been subjected to a “very extensive, competitive and open process, especially around tipping fees.” What Chu didn’t mention is that earlier this week, WM filed a writ of mandate with San Francisco Superior Court to prevent the final award of a new long-term solid waste transportation agreement and landfill disposal contract to Recology ordinances, on the grounds that the deal violates the City’s competitive procurement laws.

Instead, Chu urged moving on the deal as soon as possible, by invoking the specter of a disaster hitting San Francisco before a landfill agreement is reached.
“Imagine if we had to go to the open market,” Chu said, apparently ignoring the fact that WM has stated that it would take SF’s waste in an emergency.

After the vote, Kelly expressed concern that the agreements are not competitive, but cost-plus, which means all costs get passed along to ratepayers. And that the city continues to lack a contract and ensuing franchise fees. “They are running this as if it’s still the 1950s,” Kelly said.

Kelly claimed that Recology Vice President John Legnitto, who is the 2011 Chair of the SF Chamber of Commerce’s Board, told him that Recology had been in negotiations with City Hall around a $4 million franchise fee, but that the money would now be spent opposing Kelly et al’s competitive bidding initiative.
But when the Guardian approached Legnitto after the hearing, he refused to comment, telling me my questions should go to Recology’s Robert Reed.
And Recology President Mike Sangiacomo, who was speaking to Chronicle reporter Rachel Gordon rudely told me, “Not today thank you,” when I approached him seeking comment on the Board committee’s vote.

“What did you do to him?” Gordon asked, as she followed Sangiacomo into a corner of City Hall. Er, nothing. Except what any self-respecting reporter would do. Like ask questions, read documents, and challenge the spin.

But that something clearly has ruffled the feathers of Recology’s top brass.
 “It’s like Godzilla, it’s like Monster Island, they can’t help themselves,” Beyond Chron’s Eric Smith commented to me during the hearing. “I’m disgusted by how money, labor and all these different entities can influence what happens. They don’t care about the little people. They care about the bottom line.”

Smith, who ran for D10 supervisor in 2010, spoke to the huge pressure that has been exerted on those supervisors who have publicly raised questions about Recology’s monopoly over all other aspects of the city’s $225 million-per-year waste stream. “Big corporations like Recology throw big money around and intimidate the electeds,” Smith said.

Meanwhile, DoE deputy director David Assmann confirmed that the City Attorney’s Office is looking at WM’s writ of mandate. But Assmann added that it is too early to respond to questions about the implications of that legal action on the Recology agreements.

Assmann also responded to a number of questions I’d already raised on the Guardian’s blog about the juicy details buried in the Recology agreements, beginning with a special reserve fund that was established in 1988, as part of Recology’s facilitation agreement that governed the transportation of waste to WM’s Altamont landfill, which is where San Francisco has been depositing its trash since 1987, and that will be rolled over to form the basis of a new special reserve fund.

Assmann said the fund currently contains almost $29 million, but only needs a baseline of $15 million. The extra funds will be the subject of a hearing this fall, he said, to determine how to use the balance, including exploring the possibility of using the funds, which were collected through a 1.3 percent surcharge on ratepayers, to lower the garbage rates.

Assmann also noted that while there is no limit on how much Yuba County can theoretically increase its host fees, “there has to be a nexus with associated costs,” and that Yuba County supervisors would have to bring any such proposed increase, which would also apply to all their other landfill users, to their voters.

Assmann further noted that the idea behind developing new facilities relates to the city’s 2020 goal of zero waste is “to get to zero waste we need new methods of handling waste,” Assmann told me explaining that San Francisco wants to be able to take residual material and process it so it could be recycled and wouldn’t end up in the landfill.

Assmann said a consultant is comparing the feasibility of building those facilities on land next to Recology’s Tunnel Road facility in Brisbane, or on land the Port owns in San Francisco, and the report should be completed later this year. He also noted that the transportation amendment would allow the City to switch or improve its transportation mode, during the life of the agreement, should cleaner technologies be developed, “including trains that run on less polluting fuel.”

Assmann clarified that San Francisco ratepayers won’t be footing the cost of building a new rail spur in Yuba County. “We’re not paying capital costs. The rail spur is not a cost that Recology can charge because it’s out of county. And if San Francisco only produces 2 million tons during the life of the agreement, we are under no obligation beyond that.”

And he noted that a potential $10 million contingency payment would only go into play if the City gave Recology the green light, and the company incurred costs related to rail haul, and the City then reneged on its deal, at which point Recology could then use its incurred costs to justify why it needs up to $10 million to included in the garbage rates.

All interesting details as we approach the Board’s July 26 vote—with a lawsuit hanging over the City’s head. So stay tuned…

The long wait for sleep

7

rebeccab@sfbg.com

Rodney Palmer is 52, and he uses a cane because he has a bad hip. Walking is painful for the homeless native San Franciscan, but to reserve a bed at a shelter, he’s got to get up early and cover a lot of ground. “I get up at 4 a.m. and go to Glide” in hopes of getting a long-term shelter bed, he told the Guardian. “By the time I get there, there’s people sleeping on the ground.”

People arrive at the homeless assistance center so early because the shelter beds that can be reserved for 90 days free up at 7 a.m. on a first-come, first-served basis — and they’re quickly snapped up.

Palmer reached into his sock and pulled out a small plastic bag full of painkillers to demonstrate how he copes. Lately he hasn’t had any luck getting a long-term bed, so he’s devoting many hours a day to getting on wait lists for overnight beds. That means heading to drop-in centers in SoMa and the Mission, where at least there are chairs he can rest in. “It’s an all-day job,” he said. When it comes to waiting outside, “I feel vulnerable. People can die like that when the winter comes.”

 

BEYOND SHELTER

A coalition of homeless advocates is trying to change the way shelter beds are allocated in San Francisco, and District 6 Supervisor Jane Kim has taken up their cause, spearheading an initiative for the Nov. 8 ballot. The Fair Shelter Initiative would eliminate “shelter” from the definition of housing under Care Not Cash, the signature homeless policy created under former Mayor Gavin Newsom.

Since about 41 percent of shelter beds are set aside as housing for Care Not Cash recipients — who represent an estimated 7 percent of the city’s homeless population — advocates say the move would effectively free up long-term shelter space for veterans, disabled people, seniors, and others who don’t qualify for Care Not Cash. It would, they say, give everyone an equal shot at getting a bed.

At the same time, proponents say, it would solve a recurring problem of beds going unfilled even as shelter seekers wait for hours on end only to be turned away or to finally give up, discouraged by the system.

Cyn Bivens, a peer advocate at Mission Neighborhood Resource Center, says roughly 60 people sign up for shelter beds on a given day at his facility. People who are trying for the 90-day beds show up before 7 a.m.

“They may drop between one and five beds, but we may have 50 people in line,” Bivens explains. “Usually, by 7:15, I’m saying sorry, they’ve only dropped two beds.” People then continue to sign up all day in hopes of reserving overnight beds, which are released later in the day. Bivens estimates that about half the people who start out seeking a bed don’t wind up getting one.

While Kim and supporters of the Fair Shelter Initiative view the proposed change as a simple adjustment that would improve a dysfunctional system, they face opposition from Mayor Ed Lee and Human Services Agency Director Trent Rohrer, who have described it as a bid to dismantle Care Not Cash.

 

$59 A MONTH

As things stand, several hundred indigent adults in San Francisco benefit from County Adult Assistance Programs (CAAP), an umbrella encompassing General Assistance and several other programs intended for people who are waiting to receive Social Security Income (SSI) or seeking employment.

Each month, CAAP beneficiaries are allocated a maximum of $422, or $342 in the case of General Assistance recipients, but they never actually see that money. Instead, under Care Not Cash, they receive $65 and $59, respectively, since the rest is deducted for housing. Some CAAP recipients have actual housing in single-room occupancy (SRO) hotels, but roughly two-thirds are guaranteed shelter beds to meet their housing needs, according to an estimate from the Coalition on Homelessness.

The upshot of this system is that most CAAP recipients are effectively made to pay up to $357 a month from their benefits to sleep on a cot in a shelter, provided they make it there by curfew. For one frustrated homeless man on General Assistance who spoke at a July 14 hearing about the proposed initiative, living on less than $2 a day rather than closer to $11 a day was making it very difficult for him to improve his situation.

“I’m trying to look for work,” he said, adding that he’d seen job postings in other cities. “How am I going to subsidize my trip to Emeryville or San Jose? I’m stuck, and there are things that I cannot do.”

Mark Leach, another homeless CAAP beneficiary, said the low cash grant posed a vexing problem for him too: “I can’t afford to pay my phone bill.” Living on nothing more than $65 a month can mean living in isolation, with no way to receive calls in case work becomes available.

Another issue arising from the current system, according to Bob Offer-Westort of the Coalition on Homelessness, is that a disproportionately high number of beds are reserved for the relatively small number of CAAP recipients citywide, and those program beneficiaries don’t always use their beds. Some don’t make it to the shelter in time for curfew, others couch surf, and still others may prefer to sleep outside, far from the confines and crowds of the shelters. If they don’t show up to claim the bed, it will eventually become available to someone else for the night — but that can take hours. So people who either aren’t enrolled in CAAP or don’t already have long-term beds are reduced to waiting, day after day, for space to free up overnight.

If the Fair Shelter Initiative were in place, CAAP recipients “won’t be guaranteed a shelter bed” as part of Care Not Cash, says Offer-Westort. “But they’ll be competing for more beds,” he added, which “should reduce the wait time.”

In the meantime, CAAP recipients who aren’t being housed in SROs or some other transitional housing would receive the full amount of their benefits. Rohrer, the HSA director, seized on this point as problematic, saying that doling out the full cash grants would draw people to San Francisco from other counties where benefits are lower. “If we start to get folks from other counties and states … the result will be more homeless people in San Francisco and less access for folks,” Rohrer said.

Jennifer Friedenbach of the Coalition on Homelessness countered this, saying, “they have never been able to prove that people will come from out of town.” She addressed the notion that the Fair Shelter Initiative would dismantle Care Not Cash by saying, “It’s news to me — big news — that shelter is the entirety of Care Not Cash.”

Opponents of the measure who spoke at the hearing argued that $422 a month was too much to give to a homeless person because it could feed addiction. While it’s true that many homeless people in San Francisco have substance-abuse issues, many others are disabled or have just fallen on hard times. Advocates say they’ve noted a surge in newly homeless people accessing services, particularly women.

 

HUNDREDS OF BEDS CUT

Compounding the overall problem is that more than 300 shelter beds have been lost since 2004. During the hearing, L.J. Cirilo ticked off a long list of homeless service programs and facilities that had vanished in recent years due to budget cuts, going on for several minutes.

Palmer falls into the category of people who might benefit from a shorter wait time if Kim’s initiative were in place. He was just one of many who turned up at the Mission Neighborhood Resource Center — a homeless drop-in center that offers a clinic, shower, and laundry facilities — to watch a movie and eat supper. Two of the others there said they had experienced traumatic brain injuries and had been victims of identity theft. A construction worker explained that he was seeking odd jobs with little luck. Another man shuffled impatiently back and forth as he spoke, scratching incessantly, while he condemned the entire homeless services system as corrupt.

The measure has drawn opposition from Mayor Lee, who is “concerned that changes to Care Not Cash may begin a process that would unravel the program,” according to Christine Falvey, Lee’s spokesperson. “He wants to make sure we don’t do anything to prevent our department from providing the program.”

Falvey also noted that Lee was interested in meeting with advocates to find an administrative fix, rather than a ballot initiative, that could address concerns about the shortcomings of the shelter system. Kim expressed some openness to that idea at a hearing, but seemed committed to moving forward with changing the system that’s in place. “We do want to address inequity,” she said. “There absolutely should be no vacant beds.”

The Chron says “Ed, Don’t Run”

8

Interesting, the politics of the media and the mayor’s race. While the Chron is typically the downtown/conservative paper, and some of those same folks are pushing Mayor Ed Lee to run for another term, the Chron’s big editorial July 17th made the case against Run Ed Run. Why? Well, mostly because the mayor promised:


But there is an even more important reason Ed Lee should not run: He said he would not. … He also said he took the job with a “clear, basic understanding” that he would run the city for the final year of Gavin Newsom’s term with “no distractions.”


The Chron clearly likes Ed Lee, and projects that as a candidate, he would lose the good will he’s created as mayor:


One of the reasons the atmosphere at City Hall this year has been so calm – and the results so impressive – it that the self-effacing occupant of Room 200 has gone out of his way to be collaborative, and the good feeling has been reciprocated.


That dynamic would change in an instant if Lee joined nine very ambitious politicians in the race for mayor. He would be widely regarded as the front-runner and thus would become the No. 1 target of the other nine.


His opponents would include two key members of the Board of Supervisors: President David Chiu and progressive stalwart John Avalos. The chances of anything meaningful emerging out of City Hall for the remainder of the year would plummet.


I’m not sure that’s true, not with ranked-choice voting. Nobody would want to anger Lee or his supporters; they’d all be going for the Number Two votes. (All except Leland Yee. Lee’s biggest backers in Chinatown despise Yee; it would be hard to keep that one civil.) And I don’t think Lee’s personality would suddenly change the minute he entered the race.


It would mean that David Chiu and Dennis Herrera would start to drop in the polls, since at least some of their core supporters would move to Lee. The race would be defined (with some reason) at Yee v. Lee.


But I don’t think it’s going to happen. As long as the mayoral candidates agree to let Lee have his job back (and Yee would be crazy not to make that promise — the thought of Mayor Yee AND Lee having no job might be the kicker that would push Lee into the race), I think the caretaker mayor would be just as happy to bow out. And the more times he says he won’t do it, and the more times players like the Chron urge him not to (and make it about civility and honoring his word) the harder it will be to jump in at the last minute.


(Before all the trolls attack me: I’m not telling Lee not to run. I’ve said all along: I hated the idea of a “caretaker” mayor, and I think Lee has been a great improvement over Gavin Newsom. I just think if he wants to run, he shouldn’t wait until the last minute. And the last minute is getting closer all the time.)


 

Where does Gavin Newsom vote?

23

Now that it’s pretty clear Gavin Newsom no longer has a residence in San Francisco, when is he going to change his voter registration? According to the San Francisco Department of Elections, there’s no statutory deadline; he can stay registered in San Francisco as long as he wants.

But he can’t vote here if he doesn’t live here — which means that if he wants to vote in the November election, he’s going to have to either (a) rent an apartment or buy another house in San Francisco that he can claim is his primary residence or (b) re-register as a resident of Marin County. As it is now, with no fixed place of abode in this city, he can’t come back and vote for the next mayor or sheriff or vote against the measure to change Care Not Cash. Because that would be voter fraud. And the lieutenant governor of California would never want to break the law.

Parks Inc.

6

steve@sfbg.com

Should the city be trying to make money off of its parks, recreation centers, and other facilities operated by the Recreation and Park Department? That’s the question at the center of several big controversies in recent years, as well as a fall ballot measure and an effort to elevate revenue generation into an official long-term strategy for the department.

So far, the revenue-generating initiatives by RPD General Manager Phil Ginsburg and former Mayor Gavin Newsom have been done on an ad hoc basis — such as permitting vendors in Dolores Park, charging visitors to Strybing Arboretum, and leasing out recreation centers — but an update of the Recreation and Open Space Element (ROSE) of the General Plan seeks to make it official city policy.

The last of six objectives in the plan, which will be heard by the Planning Commission Aug. 4, is “secure long-term resources and management for open space acquisition, operations, and maintenance,” a goal that includes three policies: develop long-term funding mechanisms (mostly through new fees and taxes); partner with other public agencies and nonprofits to manage resources; and, most controversially, “pursue public-private partnerships to generate new operating revenues for open spaces.”

The plan likens that last policy to the city’s deal with Clear Channel to maintain Muni bus stops with funding from advertising revenue, saying that “similar strategies could apply to parks.” It cites the Portland Parks Foundation as a model for letting Nike and Columbia Sportswear maintain facilities and mark them with their corporate logos, and said businesses such as bike rental shops, cafes, and coffee kiosks can “serve to activate an open space,” a phrase it uses repeatedly.

“The city should seek out new opportunities, including corporate sponsorships where appropriate, and where such sponsorship is in keeping with the mission of the open space itself,” the document says.

Yet that approach is anathema to how many San Franciscans see their parks and open spaces — as vital public assets that should be maintained with general tax revenue rather than being dependent on volunteers and wealthy donors, subject to entry fees, or leased to private organizations.

That basic philosophical divide over how the city’s parks and recreational facilities are managed has animated a series of conflicts in recent years that have soured many people on the RPD. They include the mass firing of rec directors and leasing out of rec centers, the scandal-tinged process of selecting a new Stow Lake Boathouse vendor, new vending contracts for Dolores Park, the eviction of the Haight Ashbury Neighborhood Center recycling facility, plans to develop western Golden Gate Park and other spots, the conversion by the private City Fields Foundation of many soccer fields to artificial turf, and the imposition of entry fees at the arboretum.

Activists involved in those seemingly unrelated battles united into a group called Take Back Our Parks, recognizing that “it’s all the same problem: the monetization of the park system,” says member John Rizzo, a Sierra Club activist and elected City College trustee. “It’s this Republican idea that the parks should pay for themselves.”

And now, with the help of the four most progressive members of the Board of Supervisors, the group is putting the issue before voters and trying to stop what it calls the auctioning off of the city’s most valuable public assets to the highest bidders.

The Parks for the Public initiative — which was written by the group and placed on the ballot by Sups. John Avalos, David Campos, Eric Mar, and Ross Mirkarimi — is intended to “ensure equal public access to parks and recreation facilities and prevent privatization of our public parks and facilities,” as the measure states. It would prevent the department from entering into any new leases or creating new entry fees for parks and other facilities.

Even its promoters call it a small first step that doesn’t get into controversies such as permitting more vending in the parks, including placing a taco truck in Dolores Park and the aborted attempt to allow a Blue Bottle Coffee concession there. But it does address the central strategy Newsom and his former chief of staff, Ginsburg, have been using to address the dwindling RPD budget, which was slashed by 7 percent last year.

“What a lot of us think the Recreation and Parks Department is actually doing is relinquishing the maintenance of park facilities to private entities,” says Denis Mosgofian, who founded the group following his battles with RPD over the closures and leases rec centers. “They’re actually dismantling much of what the public has created.”

He notes that San Francisco voters have approved $371 million in bonds over the last 20 years to improve parks and recreation centers, only to have their operations defunded and control of many of them simply turned over to private organizations that often limit the public’s ability to use them.

By Mosgofian’s calculation, at least 14 of the city’s 47 clubhouses and recreation centers have been leased out and another 11 have been made available for leases, often for $90 per hour, which is more than most community groups can afford. And he says 166 recreation directors and support staffers have been laid off in the last two years, offset by the hiring of at least nine property management positions to handle the leases.

Often, he said, the leases don’t even make fiscal sense, with some facilities being leased for less money than the city is spending to service the debt used to refurbish them. Other lease arrangements raised economic justice concerns, such as when RPD evicted a 38-year-old City College preschool program from the Laurel Hill Clubhouse to lease it to Language in Action, a company that does language immersion programs for preschoolers.

“Without telling anyone, they arranged to have a private, high-end preschool go in,” Rizzo said, noting that its annual tuition of around $12,000 is too expensive for most city residents and that the program even fenced off part of the playground for its private use, all for a monthly lease of less than $1,500. “They don’t talk to the neighbors who are affected or the users of the park … We’re paying for it and then we don’t have access to it.”

They also refused to answer our questions. Neither Ginsburg nor Recreation and Park Commission President Mark Buell responded to Guardian messages. Department spokesperson Connie Chan responded by e-mail and asked us to submit a list of questions, which department officials still hadn’t answered at Guardian press time. But it does appear that the approach has at least the tacit backing of Mayor Ed Lee.

“In order to increase its financial sustainability in the face of ongoing General Fund reductions, the Recreation and Parks Department continues to focus on maximizing its earned revenue. Its efforts include capitalizing on the value of the department’s property and concessions by entering into new leases and developing new park amenities, pursuing philanthropy, and searching for sponsorships and development opportunities,” reads Mayor Lee’s proposed budget for RPD, which includes a chart entitled “Department Generated Revenue” that shows it steadily increasing from about $35 million in 2005-06 to about $45 million in 2011-12.

And that policy approach would get a big boost if it gets written into the city’s General Plan, which could happen later this year.

Land use attorney Sue Hestor has been fighting projects that have disproportionately favored the wealthy for decades, often using the city’s General Plan, a state-mandated document that lays out official city goals and policies. She also is concerned that the ROSE is quietly being developed to “run interference for Rec-Park to do anything they want to.”

“By getting policies into the General Plan that are a rationalization of privatization, it backs up what Rec-Park is doing,” Hestor said, noting how much influence Ginsburg and his allies have clearly exerted over the Planning Department document. “It’s effectively a Rec-Park plan.”

Sue Exeline, the lead planner on ROSE, said the process was launched in November 2007 by an Open Space Task Force created by Newsom, and that the Planning Department, Neighborhood Parks Council, and speakers at community meetings have all influenced its development. Yet she conceded that RPD was “a big part of the process.”

When we asked about the revenue-generating policies, where they came from, and why they were presented in such laudatory fashion without noting the controversy that underlies them, Exeline said simply: “It will continue to be vetted.” And when we continued to push for answers, she tried to say the conversation was off-the-record, referred us to RPD or Planning Director John Rahaim, and hung up the phone.

The rationale for bringing in private sources of revenue: it’s the only way to maintain RPD resources during these tight budget times. A July 5 San Francisco Examiner editorial that praised these “revenue-generating business partnerships” and lambasted the ballot measure and its proponents was titled “Purists want Rec and Park to pull cash off trees.”

But critics say the department could be putting more energy into a tax measure, impact fees, or other general revenue sources rather than simply turning toward privatization options.

“We need to see revenue, but we also need to stop the knee-jerk acceptance of every corporate hand that offers anything,” Mosgofian said. “Our political leadership believes you need to genuflect before wealth.”

And they say that their supporters cover the entire ideological spectrum.

“We’re getting wide support, everywhere from conservative neighborhoods to progressive neighborhoods. It’s not a left-right issue, it’s about fairness and equity,” Rizzo said.

In sponsoring the Parks for the People initiative and unsuccessfully trying to end the arboretum fees (it failed on a 5-6 vote at the Board of Supervisors, with President David Chiu the swing vote), John Avalos is the one major mayoral candidate that is raising concerns about the RPD schemes.

“Our parks are our public commons. They are public assets that should be paid for with tax dollars,” Avalos told us. He called the idea of allowing advertising and corporate sponsorships into the parks, “a real breach from what the public expects from parks and open space.”

When asked whether, if he’s elected mayor, he would continue the policies and let Ginsburg continue to run RPD, Avalos said, “Probably not. I think we need to make a lot of changes in the department. They should be given better support in the General Fund so we don’t have to make these kinds of choices.”

ROSE will be the subject of informational hearings before the Planning Commission on Aug. 4 and Sept. 15, with an adoption hearing scheduled for Oct. 13. Each hearing begins at noon in Room 400, City Hall, 1 Dr. Carlton B. Goodlett Dr., San Francisco.

 

During America’s Cup, clean-air program takes a step backward

A $5 million clean-air program along the San Francisco waterfront will be temporarily halted to accommodate the America’s Cup, prompting criticism from environmental advocates.

In October of 2010, representatives from the Port of San Francisco joined former Mayor Gavin Newsom and Princess Cruises to unveil a shoreside power installation at San Francisco’s Pier 27 for cruise ships transporting tourists to the city. The fourth system of its kind ever installed, the shoreside power hookup was touted as a way to improve local air quality by supplying passenger vessels with municipal power, making it unecessary for ships to run large diesel generators while at dock.

The U.S. Environmental Protection Agency provided $1 million to finance the emissions-reduction project. Additional financing came from the San Francisco Public Utilities Commission, the Bay Area Air Quality Management District, and Port capital funds.

Modern cruise ships use between 6 and 12 megawatts of power. The Port estimated that 19.7 tons of carbon dioxide would be reduced for every 10-hour ship call, while harmful air pollutants such as particulate matter, nitrogen oxides, and sulfur oxides would be cleared while diesel generators were shut down. The shoreside power was fed by San Francisco’s gravity-based Hetch Hetchy Water System, a relatively green energy source.

The environmental gains from shoreside power could be temporarily lost, however, when America’s Cup racing teams take over Pier 27 in 2012 and 2013 during the high-profile sailing events.

“With just one stroke of a pen, it’s gone,” said Teri Shore, program director at the Turtle Island Restoration Network (TIRN), based in Marin County. While the shoreside power hookup is disabled, “The ships will be coming in and parking, and running their diesel engines” at other waterfront piers.

The Port had already anticipated temporarily halting the shoreside power for a year during construction of a Pier 27 cruise terminal, Brad Benson of the Port of San Francisco told the Guardian. “Assuming there were no America’s Cup, it would already not be in operation … for approximately one year,” he explained. After a year of construction that will mark the first phase of the cruise terminal project, the America’s Cup will move onto the site, he said. “As a result of the America’s Cup, shoreside power is not going to be available for one year.”

By 2014, when cruise ships will be required by state law to have the ability to plug in at the shore rather than run polluting generators, the shoreside power will be in operation again, Benson added. The America’s Cup Event Authority — the primary race organizing team — has agreed to finance a $2 million relocation cost.

Shore, who is working with a coalition of environmental advocates that’s closely watching America’s Cup plans, said she hopes to see the city find some way to offset the impacts from the lost air-quality improvements. As long as ships’ generators are running, “there’s an exposure level,” she pointed out.

Benson said the port is starting to look at how it could offset the impacts, saying there might be ways of reducing carbon outputs during the event in order to make up for the lost emissions reductions. “I can’t tell you whether we could achieve the same level of emissions reductions that shoreside power would provide,” he said. “It’s very effective.”

On Monday, July 11, the city is expected to release a draft environmental impact review for the America’s Cup project.

Mayor Lee’s budget deal

0

The way the daily newspapers are presenting it, the budget that Mayor Ed Lee and the Board of Supervisors Budget and Finance Committee negotiated represents a new era of civility and cooperation at City Hall. The committee, after marathon negotiations, approved the $6.8 billion deal unanimously. Both sides called it a good process and a good result.

And indeed, by any standard, the way Lee worked with community groups was a huge breakthrough. After 16 years of essentially being cut out of the process under mayors Willie Brown and Gavin Newsom, the stakeholders — the people who provide the essential city services — were actually at the table. And the final blueprint isn’t as bad as it could be.

But it’s still a budget that does nothing to restore the roughly $1 billion of General Fund cuts over the past five years, that seeks no new taxes from big business or the wealthy, and that includes spending on a new Police Academy class that even the mayor doesn’t think the city needs.

And from the start, the mayor and his staff were absolutely determined to privatize security at the city’s two big public hospitals — even when it makes no political or fiscal sense.

The privatization plan was the centerpiece of what became a 13-hour shuttle diplomacy session, as staffers and supervisors sought to reach a deal they could all accept. The Mayor’s Office — particularly Steve Kawa, the chief of staff — put immense pressure on the committee members to accept a plan to replace deputy sheriffs with private security guards at San Francisco General and Laguna Honda hospitals. In the grand scheme of things, the $3 million in projected savings wasn’t a huge deal — but the politics was unnecessarily bloody. It’s as if Lee and Kawa were determined to privatize something, whatever the cost.

In the end, Sup. Jane Kim deserves considerable credit for holding firm and refusing to accept the proposal — and since Sup. David Chiu went along with her, they joined Sup. Ross Mirkarimi as a three-vote majority on the five-member panel and shot it down.

Police Chief Greg Suhr pushed for funding for a new police academy class to train 35 officers at a cost of $3.5 million (that’s $100,000 a cop). “I don’t think the department has looked hard enough at how we deploy the existing officers,” Sup. John Avalos told us.

And some key issues are still up in the air — for example, whether the mayor will adequately fund public financing of the November campaigns. With at least eight serious candidates running for mayor (not counting Lee), and most of them looking for the public financing that will help level the playing field, the city’s going to have to come up with at least several million dollars. That’s critical to the fairness of the election.

The bottom line remains: This city has been deeply damaged by years of cuts. And the next budget needs to start with a plan to repair that.

Editorial: Mayor Lee’s budget deal

1

The way the daily newspapers are presenting it, the budget that Mayor Ed Lee and the Board of Supervisors Budget and Finance Committee negotiated represents a new era of civility and cooperation at City Hall. The committee, after marathon negotiations, approved the $6.8 billion deal unanimously. Both sides called it a good process and a good result.

And indeed, by any standard, the way Lee worked with community groups was a huge breakthrough. After 16 years of essentially being cut out of the process under mayors Willie Brown and Gavin Newsom, the stakeholders — the people who provide the essential city services — were actually at the table. And the final blueprint isn’t as bad as it could be.

But it’s still a budget that does nothing to restore the roughly $1 billion of General Fund cuts over the past five years, that seeks no new taxes from big business or the wealthy, and that includes spending on a new Police Academy class that even the mayor doesn’t think the city needs.

And from the start, the mayor and his staff were absolutely determined to privatize security at the city’s two big public hospitals — even when it makes no political or fiscal sense.

The privatization plan was the centerpiece of what became a 13-hour shuttle diplomacy session, as staffers and supervisors sought to reach a deal they could all accept. The Mayor’s Office — particularly Steve Kawa, the chief of staff — put immense pressure on the committee members to accept a plan to replace deputy sheriffs with private security guards at San Francisco General and Laguna Honda hospitals. In the grand scheme of things, the $3 million in projected savings wasn’t a huge deal — but the politics was unnecessarily bloody. It’s as if Lee and Kawa were determined to privatize something, whatever the cost.

In the end, Sup. Jane Kim deserves considerable credit for holding firm and refusing to accept the proposal — and since Sup. David Chiu went along with her, they joined Sup. Ross Mirkarimi as a three-vote majority on the five-member panel and shot it down.

Police Chief Greg Suhr pushed for funding for a new police academy class to train 35 officers at a cost of $3.5 million (that’s $100,000 a cop). “I don’t think the department has looked hard enough at how we deploy the existing officers,” Sup. John Avalos told us.

And some key issues are still up in the air — for example, whether the mayor will adequately fund public financing of the November campaigns. With at least eight serious candidates running for mayor (not counting Lee), and most of them looking for the public financing that will help level the playing field, the city’s going to have to come up with at least several million dollars. That’s critical to the fairness of the election.

The bottom line remains: This city has been deeply damaged by years of cuts. And the next budget needs to start with a plan to repair that.

 

 

Everybody loves parklets

20

The Chronicle’s urban design writer John King, consistently one of the paper’s best writers, today took a celebratory look at the parklets that have been springing up around town, calling them, “the most intriguing urban design innovation in today’s San Francisco.” I agree with that sentiment, and so does the crowd that showed up on Sunday to dedicate “the Deeplet,” the first such parklet in front of a residential property.

It was a collaboration between homeowner Amandeep “Deep” Jawa, his girlfriend Kimberly Conley, and designer Jane Martin, who King quotes in his piece (which only Chron subscribers and read until Sunday when it goes public). The idea is to take underutilized space from automobiles and give it back to people.

Livable City director Tom Radulovich also spoke at the event, talking about how the streets were traditionally the gathering and social spaces in cities, until transportation planners started to value the efficient movement and storage of automobiles over a more inclusive view of streets. But the parklets – along with temporary street seizures like the Sunday Streets events – are part of a movement back to a more holistic view of city spaces.

We at the Guardian have been sympathetically covering this trend for years, and it is notably one of the few areas of agreement that we’ve had with the Chronicle and former Mayor Gavin Newsom, whose administration cleared the way for the permitted creation of parklet. And on this beautiful summer day, agreeing on the importance of having places to lounge and to just be seems like a great starting point for more discussions on the future of this great city.

Editor’s notes

5

tredmond@sfbg.com

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

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

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

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

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

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

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

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

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

Smooth sailing for developers

3

rebeccab@sfbg.com

It’s a mad dash at San Francisco City Hall to put all the pieces together in preparation for the America’s Cup, the prestigious regatta that will culminate in the summer of 2013 along the city’s northern waterfront. But once that spectacle is over, the biggest impact of the event will be a massive, lasting, and quite lucrative transformation of the city’s waterfront by a few powerful players, a deal that has been modified significantly since it was approved by the Board of Supervisors.

As negotiations on the fine terms of the development agreements continue to unfold, the future landscape of a huge section of the San Francisco waterfront is in play. If the America’s Cup Event Authority (ACEA) — the race management team controlled by billionaire Oracle CEO Larry Ellison — aims high in its investments into port-owned infrastructure, it has the potential to lock-in leases and long-term development rights for up to nine piers for 66 years, with properties ranging from as far south as Pier 80 at Islais Creek to as far north as Pier 29, home of the popular dinner theater Teatro ZinZanni.

The possibility of securing long-term leases and development rights to Piers 19, 23, and 29 — provided race organizers sink more money into infrastructure improvements — was added to the deal in the last two weeks of 2010, just before San Francisco won its bid to host the world-famous sailing match. The possibility of obtaining rights to portions of two additional piers, 27 and 80, were also added at the last minute. Race organizers and city officials negotiated the final modifications after the Board of Supervisors signed off on the Host City Agreement on Dec. 14, 2010.

Not all board members knew that three additional city-owned piers were being added as possible extensions of the land deal, and those properties weren’t mentioned in any of the earlier documents that went through a public review process in the months leading up to the approval of the agreement. Yet Board President David Chiu was evidently appraised of how the last-minute negotiations were unfolding and he quietly offered his support.

On Dec. 22, 2010, Chiu sent a letter to Russell Coutts, CEO of Oracle Racing, the team that won the 33rd America’s Cup and is an integral player in laying plans for the 34th. “I understand that Mayor Newsom and the city’s team have been working directly with you since the board’s approval of the Host City Agreement to make the necessary adjustments and clarifications to the agreement to ensure it meets your needs. I am aware of these changes and support them,” Chiu wrote in a letter that was not shared with his fellow supervisors.

Quoting from a section of the agreement that explains that ACEA is ensured long-term development opportunities in exchange for funding improvements and upgrades, Chiu’s letter went on, “This section specifically applies to … Piers 30-32 and Seawall Lot 330, as well as Piers 26 and 28, and if mutually agreeable could apply to Piers 19, 23, and 29. To obtain the community’s support and agreement for future development rights to piers on the northern waterfront, you will need to invest in a strong partnership with the community … I am prepared to help facilitate that relationship.”

Former Board President and Democratic County Central Committee Chair Aaron Peskin, who has closely followed the America’s Cup land deal and has for decades been actively involved in land-use issues along the northern waterfront, interpreted Chiu’s letter to Coutts as a backroom deal.

“There is no question that the president of the board, without the authorization of the majority of the Board of Supervisors, went behind closed doors, out of view of the public, and committed to [long-term development] for three piers,” Peskin said, highlighting the fact that no other supervisors were copied on Chiu’s letter. “That he has done this unilaterally, without the consent of a board’s vote at a board meeting, is not good governance. If there’s one body that’s supposed to do all of its work for the public, it’s the Board of Supervisors.”

Chiu defended the letter by emphasizing the part that asked for a partnership with the community. “This was all within the broader framework of the Host City Agreement that we signed in the middle of December,” he told the Guardian when presented with the letter during an interview and asked to comment. “They had questions about, well, can we develop on these other piers? And what I said was, ‘Well, as I think the language here specifically says if mutually agreed upon … you could possibly do this.’ And we specifically said you’ll need to invest in a strong partnership with the community.”

He added that specific development plans would still have to be approved by the Board of Supervisors. Proposals for each parcel will be made in separate Disposition and Development Agreements, subject to board approval.

On hearing Chiu’s response, Peskin was still critical of the lack of transparency in this deal: “My position is, if it walks like a duck and quacks like a duck, it’s a duck.”

Meanwhile, an analysis prepared by Budget Analyst Harvey Rose in mid-March suggests that the final amendments did reflect new commitments for the city that go well beyond what was discussed publicly. “No city approval of the Event Authority’s selection of Pier 29 for a long-term lease is required in the agreement, as modified by the Mayor’s Office and other city officials,” the Budget Analyst’s report notes. “This entire provision … was not included in the agreement of Dec. 14, 2010 as previously approved by the Board of Supervisors.”

Brad Benson, special projects manager at the Port of San Francisco, explained the Pier 29 provision slightly differently. “The city would have to be acting in its reasonable discretion to say no,” he said, emphasizing that ACEA would have to invest well above the $55 million threshold to obtain rights to Pier 29.

At a time when a new era of civility is being hailed at City Hall, two elements of the city family are essentially agreeing to disagree on the broader question of whether the 11th-hour modifications to the deal resulted in a greater hit to city coffers than supervisors approved. While Rose stated in public hearings that the modifications would deal a greater blow to city revenues, City Attorney Dennis Herrera, a mayoral candidate, has stood with the Office of Economic and Workforce Development in his assessment that the changes did not significantly exceed the scope of what was approved by the board. Fred Brousseau of the Budget & Legislative Analyst chalked it up to “a difference in opinion,” reflecting “the auditor’s standard for materiality versus the city attorney’s.”

Legalese aside, it’s clear that the race organizers stand to gain some highly desirable waterfront property in exchange for investing in the piers and bringing an event to the city that is expected to generate substantial economic activity. If ACEA invests a minimum threshold of $55 million for infrastructure improvements, it can likely secure long-term development rights for Piers 30-32, a 13-acre waterfront parking lot where Red’s Java House is located, plus win the title to Seawall Lot 330, a two-acre triangular parcel along the Embarcadero that has been discussed as the site of a future luxury condo tower that has already cleared city approval for that use.

A high-rise next door to Seawall Lot 330, called the Watermark, currently has condos going for $1.2 million apiece on average, according to a calculation of online listings. Under the America’s Cup deal approved by the board, the port would have received 1 percent of each condo sale plus 15 percent of transfers or subleases made by ACEA. “Such required payments … have been entirely removed from the agreement as modified by the Mayor’s Office and other city officials,” the budget analyst’s report points out.

Waterfront real estate in San Francisco, always expensive, has recently soared to even higher values. According to a June 22 article in the San Francisco Business Times, Farallon Capital Management recently put up for sale a 3.36-acre parcel in Mission Bay zoned for life science and tech office space — and it’s expected to fetch around $90 million. This past April, BRE Properties shelled out $41.4 million for two Mission Bay residential development sites entitled for 360 residential units, and last year, Salesforce.com acquired a 14-acre Mission Bay property for $278 million, or $140 per buildable square foot.

By comparison, the $55 million that ACEA must invest to be granted a two-acre waterfront parcel on the Embarcadero, plus long-term rights to lease and develop an additional 13 acres across the street, sounds like a good deal. “We’re using an appraisal approach. It’s not going to ridiculously undervalue the property,” Benson said. Under changes made to the deal after the board signed off, base rent for Piers 30-32 will be $4 per square foot of building area. Rent for all other possible piers will be $6 per square foot of building area.

The ability to transfer city-owned Seawall Lot 330 outright to the ACEA is predicated on the approval by the State Lands Commission to strip that property of constraints placing it, like all coastal properties, in the public trust. Lt. Gov. Gavin Newsom, who pushed the deal as mayor, is one of the three members of that commission.

Under a provision in the agreement, the ACEA’s $55 million investment will be applied toward rent credits on city-owned parcels — and depending on how much the company puts in, that credit balance can increase by 11 percent every year. Benson described this as a typical arrangement, saying, “It’s not out of the line with other rent-credit deals the port has done.”

Two former mayoral advisors from OEWD, Kyri McClellan and Alexandra Lonne, have since gone to work for the America’s Cup Organizing Committee (ACOC), a nonprofit entity working in tandem with the city and the ACEA to secure financial commitments for hosting the race. Newsom has also been named ambassador at large for the America’s Cup effort.

Meanwhile, an OEWD budget proposal includes $819,000 in staffing costs for four management-level positions relating to America’s Cup planning. A refund is expected in the form of $12 million that the ACOC has committed to fundraise by the end of 2011, with an ultimate target of $32 million by 2013. So far, ACOC has only raised $2 million, but plans to seek higher donations once it gains tax-exempt status. “I think the $2 million is a really good start,” said Mike Martin, who transferred in February from the San Francisco Public Utilities Commission to OEWD to direct the America’s Cup effort. “They’re building a foundation for an effective pitch.”

For now, city departments are scrambling toward completing the environmental review process for the infrastructure improvements, expected to be complete sometime in November. “It’s incredibly compressed,” Martin said. “There’s a lot to be done in a very short time.”

Peskin, for his part, seemed be keeping a watchful eye on the unfolding America’s Cup plans. “What we, the citizens of San Francisco, have to watch out for is that we’re not being taken advantage of,” he said. “We’ve got to be vigilant that we don’t get taken to the cleaners.”

Fixing Care not Cash

18

I will admit to a bias up front: I was against Care Not Cash in 2002, when Gavin Newsom used it as a cynical play to get elected mayor by bashing the homeless. I always argued that the city would be taking away the already-tiny welfare payments from people in exchange for housing that isn’t there. Imagine living on $422 a month in San Francisco. Now imagine that’s been cut to $59 a month — because the city’s determined that you can sleep in a shelter bed. Great fucking deal.


And that’s what happens. Care not Cash allows the city to reduce a homeless person’s general assistance grant to $59 a month as soon as the city finds housing for the person. And a shelter counts as housing.


There are lots of problems with the scenario — like this and and this. In essence, the city sets aside a certain number of shelter beds for people in the CNC program, but they don’t all show up, so there are empty beds — and people who need a place to sleep can’t get them because they’re earmarked as “housing” for an anti-homeless program.


So five supervisors have come up with a ballot initiative that would make one small, but significant change in the Care Not Cash legislation. It would specify that shelters don’t count as housing. That’s it. That’s the entire amendment. (You can read the proposed law here (pdf)


It makes perfect logical sense. You want to tell a homeless person that instead of giving you welfare payments, we’re going to give you housing? Fine. Then make it housing. Wasn’t that the premise of CNC from the start?


But somehow, CNC stalwarts (including those who make money off the program) are outraged, claiming this will gut the entire effort. In the Chronicle story, Mayor Ed Lee notes that


“By removing the shelter system from the available benefits provided to Care Not Cash recipients, we dismantle this path to getting people housed, ultimately undermining the success of the nationally recognized, award-winning program.”


Of course, the proposal doesn’t remove the shelter system from the available benefits. Sup. Jane Kim, the sponsor, and her colleagues aren’t talking about shutting down shelters or kicking homeless people out. The measure just says you can’t take someone’s welfare grant away just because you found him or her a temporary cot in a noisy, often unsafe shelter that offers no privacy and operates under random rules that at lot of us would find intolerable. 


Again, my bias is against the entire premise of Care Not Cash. I think the city (and the state and the feds) ought to be providing homeless people with enough money to get a place to live and enough to eat. That’s the way it used to work — when I arrived in San Francisco, you could actually afford to rent a room in a shared house with General Assistance money, and you could live reasonably — not in luxury, but reasonably — on federal SSI payments. But the cost of housing has so outstripped the increase in welfare payments that people wind up on the streets. 


But if we’re going to do the Care Not Cash thing, shouldn’t the city be required to provide real housing before the grants get cut off?


Randy Shaw, who runs a bunch of Care Not Cash hotels under city contract, doesn’t think so. He argues that


[T]he measure repeals CNC’s central premise that homeless single adults on welfare should not get $422 per month if they refuse SRO housing. The initiative also dramatically reverses San Francisco homeless policy: it replaces a system designed to get homeless people housed with one subsidizing homeless people to live permanently in shelters. The measure increases homelessness and provides no alternative funding to make up for the millions of CNC dollars that would be eliminated from the city’s supportive housing budget.


 I understand the concern about the CNC money (some of which, again, goes to Shaw’s operation). If the city starts paying $422 a month to some people who are now only getting $59, that money will have to come from someplace. But this whole notion that the proposed change will allow the city to give cash grants to people who “refuse SRO housing” seems a bit off.


“We haven’t changed that part at all,” Jennifer Freidenbach, who runs the Coalition on Homelessness and was involved in drafting the measure, told me. “People who refuse SRO housing would still get their grants cut.”


I asked Shaw about this — and also about my understanding that there isn’t enough SRO housing for every homeless person who wants a place to live. Should people on the waiting list get their grants cut off because the city can stick them in a shelter in the meantime?


For whatever reason, my old pal Randy hasn’t responded. (I continue to be boggled by two things — Shaw never calls people before he trashes them, and he seems unwilling to have substantive debates with me when I want to talk to him. That last time I emailed him to ask why he didn’t call people for comment, he responded: “I see the issue very differently and disagree with your premise.” How is that helpful? This time he didn’t answer at all.)


The oddest thing is that Shaw — a longtime housing advocate who has spent 30 years working to help low-income people — has adopted a remarkably strident, even harsh tone that reminds me of the rhetoric that Newsom and his allies used to use. Consider:


Understand we are talking about people who have the option of accepting permanent housing but refuse. People who want to get a full city grant, live in a city-funded shelter, but want the right to pay nothing.


Jeez. Those lazy welfare bums who want “the right” to a place to live and a miniscule, tiny cash grant.


There was a time when liberals used to talk about a guaranteed national income. Now the debate in progressive San Francisco involves bashing poor people. Wow.