Government

Tax reform plan goes nowhere

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By Tim Redmond

The governor’s tax-reform commission released its report today, and it probably won’t amount to much, because nobody seems to like it.

But the report shows how badly skewed the whole notion of “tax reform” has been warped in this state. The central premise of the report is that the top income tax rate — the rate that the very rich pay — should be reduced, and the overall income tax structure flattened. The argument: Since the income of the richest Californians changes with the economy, flattening out the tax structure will give us more budget stability.

But that’s an utter crock. As Lenny Goldberg, the director of the California Tax Reform Association, notes:

1. The top personal income tax rate should not be lowered, since figures presented to the Commission demonstrate clearly that the volatility problem is a function of the distribution of income, not a steeply progressive tax. In fact, the tax is relatively flat, assessing the same marginal rate on the upper-middle class (90k +) as the very rich, with a very quick ride through the brackets. If anything, the bracket structure should reflect the federal structure, which has increasing brackets and rates at $137,000, $208,000, and $372,000.

As Phil Spilberg’s presentation on March 16 pointed out, the top 1% take an extraordinary share of income (25%), nearly doubling since the early 1990’s. Their tax burden moves consistently with their share of income, so their disproportionate share of taxes is a function of their disproportionate share of income. That fact alone is what leads to volatility, but lowering their tax burden only exacerbates the mal-distribution of income. And any tax cuts share income with the federal government at a marginal rate of 35%, likely to become 39.6%, so are effectively a capital outflow.

In other words, the reason that tax receipts drop off so much during recessions is that the very rich have too much of the state’s total income. If anything, the tax rate is too flat now.

I’m somewhat intrigued by the new business tax proposals, which amount to what the Europeans call a “value added tax.” You take the total sales of a business, subtract its total costs, and tax the net proceeds, which are supposed to represent the value added during production. It’s a little trickier when you apply that to services, but I don’t think any sane person watching the state’s tax system disagrees with the concept that services ought to be taxed.

But overall, the tax reform commission has offered a very limited perspective — which is too bad, because California’s tax system is a mess and badly needs a comprehensive overhaul.

The national parks: A radical idea

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By Tim Redmond

I have two kids (with piano, gymnastics, tae kwon do, PTA and assorted play dates and sleepovers), a busy job, a dog to walk, dirty dishes to wash … you know the drill. So I haven’t been able to watch every minute of every episode of Ken Burns magnum opus on the national park system. I don’t think I know anyone who has that kind of time these days.

But I tuned in for a while last night, to Episode Two, which tracks John Muir, Teddy Roosevelt, the Antiquities Act etc., and I walked away with a very clear message:

This is a series about what government does right.

In the segment I saw, the feds were the good guys — Congress was saving wild areas, and when the western ranchers and developers tried to commercialize the Grand Canyon (in the name of private enterprise), Roosevelt used his authority to block them, infuriating the states-rights and anti-government Westerners but (of course) preserving what everyone know agrees is a national treasure.

There was a fabulous quote from environmental journalist Juanita Green.

“In other parts of the world,” she says, “there are places that are wild because some nobleman decreed it. In the United States, we don’t need a nobleman. … that’s democracy.”

At a time when the mayor of San Francisco is lauding the death of a billionaire who believed just the opposite — that the private sector should decide what gets saved and that private philanthropy (from fortunes built on tax cuts) is a better solution than public spending (fueled by taxes on the wealthy), we all ought to think about that a little.

If the national parks are “America’s best idea,” as Burns dubs his documentary, then the best thing this nation has ever done is exerted government supremacy over the private sector when it comes to the use of land. It’s sad to think how radical that sounds today.

UC chief’s glib NYT interview raises ire

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By Steven T. Jones
yudof.jpg
While reading the Sunday New York Times, I was surprised to see the magazine’s Q&A with UC President Mark Yudof – and dismayed by the timing and glib tone that he took.

Just days after UC faculty, employees, and students took to the streets in protest of Yudof’s anti-democratic approach to making deep cuts and huge tuition hikes, here he is playing the cutesy wannabe celebrity who jokes about his lack of commitment to and qualifications for this important job.

And when given the chance to criticize Gov. Arnold Schwarzenegger – which would seem a natural, given that he’s been blaming state government for his own destructive decisions – he dutifully plays the good company man and says of the dangerous defunding of higher education, “This is a long-term secular trend across the entire country. Higher education is being squeezed out. It’s systemic.”

WTF? So the head of the UC is fine with just giving up on the public university system? And apparently I’m not the only one bothered by this interview, which Sen. Leland Yee – who has rightfully been hard on the UC in recent years – and others savage in the following press release that he just sent out.

LAFCo and SFPUC joint meeting: The clock is ticking

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By Rebecca Bowe

tide clock.jpg

In the next few years, San Francisco residents will have the opportunity to switch to electricity that is publicly owned, more environmentally friendly, and either the same price or cheaper than power supplied by Pacific Gas & Electric Co. — if all goes according to plan.

That’s turning into a big “if.”

At a joint meeting held between the Local Agency Formation Commission (LAFCo) and San Francisco Public Utilities Commission (SFPUC) last Friday, LAFCo chair Sup. Ross Mirkarimi tried his best to start a fire under everyone’s rear. Clean Power SF, a public power program that will supplant PG&E in the city, had better get into gear without any foot-dragging or hesitation, Mirkarimi warned.

What’s the hurry? A proposed, PG&E-backed statewide ballot measure has cast a pall over Clean Power SF and other municipalities’ efforts at crafting public power alternatives, or Community Choice Aggregation (CCA) programs.

The PG&E-backed ballot measure would require 66 percent of voter approval before any local government could spend so much as a dime establishing a CCA, effectively creating an insurmountable hurdle. If successful, the ballot measure would snuff out any PG&E competition before it even caught on. The utility is poised to spend millions collecting signatures and pushing it through, and it has until Dec. 21 to gather the 694,354 signatures needed to place it on the ballot next year.

ACLU: Will the House protect your privacy?

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We’ve got another big chance to end Patriot Act abuses–but we have to act fast.

The Senate Judiciary Committee had the opportunity to pass legislation to rein in a bill that has become a symbol of out-of-control government invasions of your privacy. They failed–approving a bill that does little to curtail the sweeping powers embedded in the Patriot Act.

That’s why we must do everything we can to ensure that the House of Representatives passes a stronger bill–one that can lead to genuine reform of the deeply-flawed Patriot Act.

Act right now. Ask your representative to co-sponsor the USA Patriot Amendments Act of 2009.

Remembering Don Fisher

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By Steven T. Jones

It’s rude to speak ill of the recently deceased, but as I read the laudatory obituary of Don Fisher in today’s San Francisco Chronicle, it seems appropriate for us to say a few words about the legacy of a man long criticized by the Guardian for his sponsorship of right-wing and corporatist causes.

Most of what Fisher is now being praised for is how he spent his vast fortune, accumulated through The Gap clothing chain he created. Some of those expenditures (such as children’s programs and buying great art, which he arranged days before his death to have SFMOMA display) were good and many of those expenditures we opposed.

But the point to consider now is why US tax policy has allowed the Don Fishers of the world to keep so much of the wealth they accumulated – in this particular case, largely through exploitive sweatshop labor around the world — and to use it to attack the public sector and empower corporations.

As we praise the philanthropy and generosity of Don Fisher, it’s worth asking whether the billions of dollars that he was allowed to keep (money the federal government would have appropriated for public use up until the late ‘70s, when the tax rate on top earners was as high as 90 percent) might have been better spent by our elected leaders.

Prison report: Who are the bad people?

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By Just A Guy


Editors note: Just A Guy is an inmate in a California state prison. His dispatches appear twice a week.

Republican gubernatorial candidate Steve Poizner was recently quoted in the Sacramento Bee saying: “You have to be a really bad person to get into state prison. So I’m opposed to releasing people who are dangerous, absolutely opposed. That’ s no way to balance the budget.”

I’m curious to know what Poizner thinks everyone is in prison for. Does he even realize that at least 18 percent of the population is in prison for drug crimes? If so, then is he saying that all people in prison for drugs are “really bad people?”

As if the stigma of being an addict and in prison isn’t enough.

I wonder if Poizner thinks alcoholics are “really bad people” — or just people who need a 12-step program.

What is a “really bad person” anyway? Are the many of you who have done some stupid things in your past but just didn’t get caught “really bad people” too? Or does the stereotype apply only to people in prison?

I’m opposed to the early releases of people who are dangerous, also. But how does one determine who’s dangerous? Is the 80-year-old infirm man in a wheelchair a danger? Let’s be honest — who doesn’t have the capacity to be dangerous? Prisoner or not?

Poizner says this is no way to balance the budget. But what about the consequences of cutting even more money from other services? (See my most recent blog here.
Has he considered that the industrialization of prisons in California with the three strikes, archaic laws and sentencing, is no way to create jobs?

The other Republican gubernatorial candidate, Meg Whitman, said “the most important role government has is public safety. It’s very important to be consistent.” She’s also opposed to early releases and prison reform. Odd that the former CEO of Ebay is so short sighted about the long-term effects of the current budget and prison situation. Isn’t this a women who had to please stockholders and a board of directors and had to have insightful long-term visions planning Ebay strategy — which she did quite successfully? I guess your strategy changes drastically when you’re selling a service as opposed to selling fear.

The only things consistent about California prison policy are lock-em-up-and-throw-away-the-key strategies. Most politicians are also consistently spouting tough-on-crime policy against their better judgment because they are consistently afraid of the Willie Horton syndrome.

A couple of gubernatorial candidates from the Democratic side are, amazingly, looking at prison reform as a way to alleviate some of California’s budget problems.

The biggest threat to public safety is not the people in prison or their releases (most of them are going to get out anyway). It’s consistently cutting money for health care, education, welfare and myriad other programs that help to create a brighter future for Californians. Public safety also means maintaining roads and bridges, supplying water, educating citizens etc. The best way to have public safety is to have an environment that creates hope, not antipathy.

Finally, the Canadian government is considering creating a prison system similar to California’s — and a rather scathing indictment came out from opponents who say doing so is a bad idea.

The majority of first world countries see California and its prison policies as insane — why can’t we see that for ourselves? It’s like we have “prison addiction.”

I wonder if people with prison addiction should be consistently labeled “really bad people.” The rest of the world seems to think so.

Hellman and partners to launch Bay Area newsroom

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By Steven T. Jones
hellman.jpg
Warren Hellman was featured in the Guardian two years ago.

San Francisco financier Warren Hellman – in partnership with KQED, the UC Berkeley School of Journalism, and perhaps even the New York Times – is about to launch a nonprofit, locally focused, online news organization with a medium-sized newsroom of full-time journalists, Hellman has confirmed to the Guardian.

Hellman says he will provide $5 million in seed money for the Bay Area News Project, which is about half the annual budget for a projected staff of about two-dozen journalists, and he expects to get foundation funding and perhaps even government grants for the rest. They are currently interviewing for a managing editor, which they hope to hire in the next month or so, and expect to go live sometime next year.

“We’re forming a new media news center. Basically, it will be a not-for-profit 501c3 that will be source of Bay Area news,” Hellman said. “It will focus on local news events, including politics and the arts, the kind of thing that is just dying at the Chronicle.”

The mayor’s race begins

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By Tim Redmond

So now it’s official: Just when San Francisco political junkies needed something other than the generally dull November election to talk about, Bevan Dufty has done us all a favor and fired the opening gun in the 2011 mayor’s race.

It’s no surprise, really — everyone knew that Dufty was running. Just as everyone knows that City Attorney Dennis Herrera and state Senator Leland Yee will be in the race, and that Assessor Phil Ting is looking at it, and that Sup. Ross Mirkarimi and Public Defender Jeff Adachi are mulling their prospects.

With public financing in place, and ranked-choice voting, the race will be fascinating. Dufty has never run citywide, but he’s a nice guy who can be funny and charming and he’s built a reputation as a nuts-and-bolts supervisor who takes government seriously. “Ross Magowan [of KTVU] asked me what my biggest single issue was, and I said Muni,” Dufty told me today. “He said that Muni was getting better, but hey — crime is down 30 percent citywide and still up on Muni.”

Fixing Muni is a Dufty kind of thing — not a grand civic vision, but a basic public service that people use that has problems. (A classic Dufty story: When the city got rid of the crossing guard at the school my kids go to a couple of years ago, which is in Dufty’s district, the principal called Dufty, and the guard was back the next day. He loves that sort of thing.)

“What I try to be is a collaborator,” he said. “I’ve never had the luxury of knowing I had six votes on the board, so I’ve had to reach out to people.”

He also promised that Mayor Dufty would always show up for question time at the board. He joked that “it’s easy for me to promise that because Chris Daly will be off the board by them” but in the next breath told me how much he likes and respects Daly, who he called “incredibly talented.” (Again, classic Dufty.)

It’s going to be a challenge for him to stand out in this race. He’s not going to get a lot of progressive support; he simply hasn’t been there on a lot of progressive votes and issues. It’s rare to see him defy Mayor Newsom and he’s been on the wrong side of many of the key battles of the past ten years.

He has a lot of support in his district, and among the more centrist parts of the gay community. But he’s not a big downtown guy, not a prodigious fundraiser and won’t be the next Newsom, who ran the first time with the unwavering support of the big-business community and all the money he could ever need.

And Herrera and Yee — both with a proven track record of raising money, both with citywide name recognition — will also be sitting in that political center. Neither of them can claim the support of the majority of the progressive supervisors (although Herrera will no doubt have former Board President Aaron Peskin on his team).

If Mirkarimi or Adachi runs, they’ll take the left flank. Yee will be the more conservative candidate, especially when he’s working the west side of town. I don’t see how Dufty finds his niche.

He doesn’t either, right now — except to say that “I’m not running for anything else. I have no desire to go to Sacramento or Washington. I’m humble and I’m going to run a grassroots campaign.”

What he has, clearly, done is given a kind of shit-or-get-off-the-pot push to the other candidates. The race is a long way away, but with Dufty out there, raising money and seeking endorsements, Mirkarimi is going to have to decide if he’s serious, and if not, the progressives are going to have to decide if Adachi is their man, and the race is going to start firming up. There won’t be a Matt Gonzalez late entry this time around. What you see is what you get, and the late-comers will be at a disadvantage.

Northen high (and low) lights

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>>Check out Jesse Hawthorne Ficks’ TIFF takes here.

FILM FESTIVAL REPORT There weren’t exactly tumbleweeds rolling through Park City, but this January’s Sundance Film Festival did have a becalmed feeling reflecting the economic panic — money, corporate sponsors, and industry personnel weren’t falling from the sky quite so thickly as usual, which naturally made the experience that much more pleasant for those simply there to see movies. There was no such diminished frenzy apparent at the 2009 Toronto International Film Festival (Sept. 10-19), even if one of the local papers lamented "parties are smaller and over early." (Cue the Bee Gees’ "Tragedy.")

There’d been more serious lamentation in recent years that TIFF has gone too Hollywood, too average-viewer-unfriendly, its programming now driven by (rather than simply attracting) celebrity and media attention. That’s clearly not true of the program’s bulk. Still, you’ve got to wonder just how the "art" of cinema is being celebrated when one big-noise 2009 premiere was no less (what could be less?) than Jennifer’s Body, which put Diablo Cody’s Oscar in perspective.

Not much more defensible were a slew of hollow costume flicks, from opening night’s kinda-’bout-Darwin Creation to the closing Young Victoria, with Oliver Parker’s latest Wildean crapfest Dorian Gray, Carlos Saura’s frivolous I, Don Giovanni, and Stephen Poliakoff’s silly Glorious 39 among the plush time-killers unveiled like papier-mâché statuary between.

Those are movies likely to underwhelm soon at a theatre near you — though not so soon as the enthusiastically received latest efforts by the Coen brothers, Terry Gilliam, Michael Haneke, Jason Reitman, Michael Moore, Steven Soderbergh, Jane Campion, Pedro Almodóvar, Todd Solondz, and others no doubt already ramping up their Oscar campaigns. Those were easy to put off. But there was a great deal I was very sorry to miss, like Cornieliu Porumboiu’s Romanian Police, Adjective, Raoul Peck’s Haitian Moloch Tropical, and Shirin Neshat’s Tehran period piece Women Without Men, films whose chances of U.S. distribution are variably remote.

Among titles caught, low expectations were more often met with high rewards than vice versa. Das Boot (1981) in a tank, Venice Film Festival Golden Lion winner Lebanon proved an effective but unremarkable war-is-hell statement. There was controversy over Tel Aviv’s spotlight in the inaugural "City to City" sidebar. But if government propagandist efforts secured that slot as charged, other Israeli features here, like Danny Lerner’s lurid Kirot, were hardly goodwill ambassadors.

On the other hand, Lars von Trier’s Cannes scandal Antichrist turned out neither brilliantly here nor appallingly there — though one viewer did upchuck at a press screening, and a publicist called mine the first neutral reaction she’d heard of.

Elsewhere, the flowers of evil bloomed in myriad hothouse forms, some rather wilted on arrival. Perhaps most intriguing was a portrait of a movie that will never fully exist: L’Enfer de Henri-Georges Clouzot reconstructs footage from an aborted early ’60s thriller by the French genre master. Experimenting with psychedelic imagery to evoke pathological jealousy, he abandoned ship midway, but the remains still fascinate. Another mental health vacation, Werner Herzog’s improbable Bad Lieutenant: Port of Call New Orleans, won numerous fans. Yet it’s much less fraught with danger than Abel Ferrera’s 1992 original, and for all its gratuitous goofing too often looks/sounds like direct-to-cable product.

Plumbing sillier darknesses were the lamentable latests by George Romero (Survival of the Dead) and Joe Dante (The Hole), not to mention yet more not-different-enough vampire stuff (Suck, Daybreakers), a middling Manson recap (Leslie, My Name is Evil), and one dullish Robert E. Howard adventure (Solomon Kane). Midnight Madness’ one shining light was a nasty little Australian number, The Loved Ones, after which you will never hear Kasey Chambers’ "Not Pretty Enough" without cringing. I mean, even more than previously.

Elsewhere, pleasures were scattered and unpredictable, with some uneven films elevated by performances — Woody Harrelson’s delusional superhero in Defendor, Edward Norton as twins in Leaves of Grass, and just about everybody in Rebecca Miller’s The Private Lives of Pippa Lee. Major attention went to Drew Barrymore’s directorial bow Whip It, but Samantha Morton’s own, comparatively overlooked debut The Unloved ranks almost up there with the medium’s greatest horrible-childhood portraits. For originality, nothing quite trumped Corey Adams and Alex Craig’s surreal skateboarder fantasia Machotaildrop, even if its charms eventually wore a bit thin. Which was not an issue for French stop-motion animation A Town Called Panic, 75 minutes of perfect silliness that provided a Gallic heaven to complement Clouzot’s hell.

The $2.8 billion rate hike

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news@sfbg.com

In the middle of what economists are calling the worst economic downturn since the Great Depression, when California unemployment rates have hit post-WWII records, commercial defaults are rising, and families and businesses are hurting, Pacific Gas and Electric Co. is asking for electricity rate hikes that would take at least $47 million out of the local community, a Guardian analysis shows. By some estimates, the impact could be has high as $787 million.

And the economy is already losing between $174 million and $483 million a year because the city hasn’t created a public power system. So the total impact on the San Francisco economy of paying PG&E’s high private rates could total $2.8 billion. That’s money that local residents can’t spend on good and services, local businesses can’t use to hire more workers and city government can’t collect taxes on.

The analysis is based on work done in 2002 by Irwin Kellner, chief economist for Marketwatch and a former economics professor at Hofstra University. Kellner analyzed the savings to the Long Island economy after that community replaced a private utility with a public power system (see "The $620 million shakedown, 9/4/2002).

It’s not a complicated set of calculations.

During the fiscal year ending in 2009, San Francisco residents and businesses paid $644 million on electricity, according to data from the city’s Controller’s Office. If PG&E’s proposed 6.5 percent average rate hike is approved for 2011 (with additional hikes of 1.4 percent and 1.1 percent the following two years) that number would ultimately rise to $704.5 million.

Over the next four years, as those rate hikes kick in, San Franciscans would be handing PG&E an extra $157 million. That’s $106 million businesses won’t have to pay employees or make capital improvements, and $51.3 million consumers won’t have to spend in local businesses.

"That’s $51 million less that would otherwise go into San Francisco neighborhood businesses," said Ted Egan, chief economist in the city’s Office of Economic Analysis. "Instead the $51 million goes to PG&E, and they won’t spend it all in San Francisco. Some will go to shareholders and outside the region, so the rate hike would end up having a larger impact than the initial $51 million."

That "larger impact" is called the multiplier effect: if you give one dollar to someone likely to spend it locally, he or she will buy shoes at a local shoe store, whose owner will use the dollar to buy groceries at the local grocery store, whose owner will pay the counter worker, who will spend the money on paint at the local hardware store — and by the time it’s circulated through the local economy, that dollar has created far more than a dollar’s worth of economic activity.

Economists argue on how to figure the exact impact of that dollar. Kellner has done studies of the economic impact of utility rates and estimates the multiplier — the economic impact of electricity rate hikes — to be five, expanding the $157.4 million to over $787 million.

Egan takes a more conservative view of the San Francisco economy and consumer spending. He estimates that the multiplier for utility rate hikes is closer to 0.3 — or slightly higher when commercial rates are factored in. According to his estimate the impact would be closer to $47,231,083.86.

The multiplier suggested by federal government economists during the stimulus bill discussion is 1.8, the number cautiously posited by Cynthia Kroll, senior regional economist for the Fisher Center for Real Estate and Urban Economics at UC Berkeley. Based on her calculations, PG&E would be yanking $283 million out of the local economy.

Either way, it’s a huge sum of money, particularly in a bad economy.

A PATTERN OF RATE HIKES


This latest rate hike, Mindy Spatt, communications director of the Utility Reform Network told us, is only part of a pattern of attempts by PG&E to raise rates. Every three years, utility companies present a general rate case to the California Public Utilities Commission. But Spatt said utilities can come to the PUC in between to ask for other rate hikes.

"They’re constantly coming back to the commission for this that and the other thing," she said. "[PG&E] came back after they got money for smart meters to get money for smarter meters.

"Overall, the pattern is that rates continue to go up," she continued. "The only other thing going up is executive compensation. We are still plagued with blackouts, we still get crappy service."

She’s right: data from other local utilities show that PG&E rates are anywhere from 20 percent to 40 percent higher than cities that have public power. PG&E would like its customers to believe that higher rates will improve service and reliability — but that’s not what’s happening.

"They don’t spend the money on giving us good service, instead [they focus] on convincing us they are giving us good service," Spatt said.

In its announcement of the proposed hike, PG&E claimed the rate hikes are to maintain infrastructure and reliability. A further $1.1 billion is also being asked for as part of a Cornerstone Improvement Project to increase reliability.

"Reliability" is an old battle horse trotted out every few years as the justification for rate hikes. PG&E is consistently less reliable than other local utilities and even less reliable than other large private utilities. So the company constantly asks for money to upgrade its system — except that reliability doesn’t seem to improve much, and it hasn’t improved much in the past decade, according to California Public Utilities Commission data.

"It’s interesting to compare their rates to municipal utilities and how much higher they are," Spatt said. "What do we get for the extra money we pay? Because by most measures they’re not doing a great job."

In fact, Guardian research shows that local municipal utilities have consistently better reliability records than PG&E (see "The blackout factor," 8/5/09).

PUBLIC POWER SAVINGS


The direct cost of PG&E’s high rates costs the local economy — and those losses are compounded by the money that could have been saved with public power.

A detailed Guardian analysis concluded last year that San Francisco would be able to cut electric rates by 15 percent if it ran its own utility (see "Cleaner and cheaper," 9/10/2008). That’s an entirely reasonable estimate, according to Jeff Shields, general manager of the South San Joaquin Irrigation District, which is fighting with PG&E to take over electricity distribution in its service area. He projects similar savings for his customers.

Shields thinks his system (and one in San Francisco) could cut rates even further. As nonprofit, he explained, SSJID can save money in multiple areas and pass those savings onto customers.

"We don’t pay taxes on earnings," he told us. "PG&E, as a shareholder company, can collect an 11.45 percent margin of profit. We don’t pay that. We don’t have the same overhead. We don’t have high-rises or corporate jets."

Public power agencies pay less to borrow money, are eligible for tax-exempt financing, typically have a higher credit rating and often keep a substantial cash reserve.

"[Selling electricity] will continue to produce substantial income," he said. "As a nonprofit, the only thing we can do with that income is continue to drop rates."

Other municipal utilities, like Silicon Valley Power in Santa Clara, have been able to keep rates low as PG&E has continued to raise rates. Larry Owens, customer services manager at SVP, said its residential rates are half of PG&E’s, and less for larger users.

The opportunity cost of not having municipal power — factoring in PG&E’s proposed rate hike and the assumption, based on Guardian and SSJID analyses, that rates would be lowered by at least 15 percent — is approximately $545 million over the next four years. Theoretically, that money could have resulted in a $980 million to $2.8 billion bump in the local economy.

This doesn’t include what some municipal utilities call "general fund transfers" or money that goes directly into a city’s piggy bank to be spent on libraries, schools, public health, and other services.

"Private sector utilities pay money to shareholders," said Joyce Kinnear, utility marketing services manager in Palo Alto. "We give these payments to the general fund to give services to local residents."

In Palo Alto’s case, this amounts to more than $9.25 million annually, or 9 percent of annual sales revenue, according Ipek Connolly, senior resource planner for the Palo Alto Utilities Department. Alameda Municipal Power’s Alan Hanger says AMP pays at least $4.2 million into city coffers. Silicon Valley Power, according to Owens, sends 5 percent of its revenue back to the city in the form of $12.92 million.

Shields, at SSJID, said the utility plans to give 4 percent of revenue to a public benefits program for "various social services, conservation, and energy efficiency programs." This, in addition to general fund transfers, constitutes a direct contribution to the community 50 percent larger than PG&E’s.

"Public power systems provide a direct benefit to their communities in the form of payments and contributions to state and local government," Nicholas Braden, director of communications at the American Public Power Association, told us. "The total value of the contributions made by the publicly-owned utilities often comes in many forms and is not always easily recognized. In addition to payments such as taxes, payments in lieu of taxes, and transfers to the general funds, many of the utilities make other contributions in the form of free or reduced cost services provided to states and cities."

San Francisco has a 7.5 percent utility user tax, but the tax is only levied on homes and businesses. In other words, PG&E takes hundreds of millions out of the local economy — and gives back nothing.

————-

HOW SF COULD LOSE $2.8 BILLION

Amount San Franciscans paid for electricity IN 2009: $644 million

Additional cost of PG&E rate hike (per year): $157 million

Multiplier (maximum estimate): $787 million

Reduction in costs under public power: $483 million

Multiplier: $2.1 billion

Total impact of high PG&E rates: $2.87 billion

SOURCE: Guardian research based on public records

————

RATE HIKES HIT THE POOR HARDEST

Pacific Gas and Electric Co. estimates that its current rate hike proposal will add between $2.23 and $16.76 per month to an average residential electricity bill. That may not seem huge — but it adds up.

"Each rate hike in and of itself isn’t that much money," acknowledges Mindy Spatt of the Utility Reform Network (TURN). "But overall, rates are very high."

And if you’re in one of the 24,000 San Francisco families that, according to U.S. census data, livie in poverty, even the smallest increase in utility bills can have serious ramifications.

"A few dollars here, and a few there can really affect low-income households," said Stephanie Chen, legal fellow at the Greenlining Institute, a public policy research and advocacy group. "It can mean the difference between ‘Do I pay the power bill, or do I buy groceries?’"

Utility bills are not a discretionary expense, and, as unemployment continues to rise and adjustable rate mortgages continue to adjust upward, more households are finding themselves squeezed on all sides. Depending on timing and cash flow, Chen said it would be easy to imagine a formerly stable household unable to pay the utility bill.

And if a household can’t pay the bill for two weeks, PG&E sends a notice of termination and shuts off power. According to Spatt, PG&E shuts off 15,000 households in its service area each month.

"Rate hikes are certainly not going to bring down that number," she said. "These are not people who can’t pay for a Mercedes and got it repossessed. They are people who are losing heat, electricity, the ability to cook."

To turn the power back on, PG&E requires a deposit of twice the average bill to reestablish credit. If a household can’t pay its regular bill, paying twice the amount is even harder.

Spatt says TURN is working to push the CPUC to do something about this and help consumers who are struggling. Chen says utility companies already know their customers are hurting during the recession.

"All the utilities are facing decaying infrastructure concerns and renewable energy goals," Chen said. "They are facing increased costs, which they pass on to ratepayers. We know rate increases are inevitable — but we want to make sure they are necessary and cost-effective."

Stopping PG&E’s fraudulent initiative

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EDITORIAL A ballot measure that could spell the end of public power in California is headed for either the spring or fall 2010 ballot — and so far, the opposition is missing in action. This is a profoundly important issue, and every elected official, city council, board of supervisors, and utility agency in the Bay Area needs to immediately come out in opposition and start organizing to defeat it.

The source of the proposition, of course, is Pacific Gas and Electric Co. PG&E is facing political wildfires all over the state as communities rebel against bad service and high rates. In Marin County, a community choice aggregation (CCA) plan is moving along, full speed. In San Francisco, CCA is a little slower, but still on track. These efforts could turn two of PG&E’s most profitable territories into public power beachheads. Meanwhile, in San Joaquin County, a public power movement is trying to take over part of PG&E’s service area, and PG&E just spent millions of dollars fighting a similar effort in Davis.

So the utility has decided to fight back — not just in the local communities where activists can beat PG&E back, or in the state Legislature, where the giant company has fewer and fewer friends, but with a ballot initiative that has a misleading name, a misleading political message — and tens of millions of dollars to back it up.

Signature-gatherers are out in force already, collecting names for a measure called "New two-thirds requirement for local public electricity providers." The paid petition crews are describing it as a "right to vote" measure, giving the public a chance to weigh in on government action.

What the measure would really do is require a two-thirds affirmative vote before any public power agency could add new customers, or any local agency could get into the power business. It would force the existing CCA movements to get two-thirds of the local voters to approve their efforts.

That’s an almost impossible standard — particularly when PG&E spends millions to block public power efforts everywhere they appear.

The two-thirds voting requirement is increasingly being assailed as undemocratic. The state Legislature has been paralyzed by its own two-thirds requirement for passing a budget, and there are multiple moves to reduce that threshold. The two-thirds mandate for passing local taxes has been widely blamed for driving cities and counties to the brink of fiscal ruin.

And yet PG&E is trying to add a new, crushing mandate — aimed entirely at snuffing out public power advances. The impact on the state will be enormous. As Megan Rawlins reports on page 8, high PG&E rates and the lack of public power cost the San Francisco economy alone as much as $2.8 billion a year. Multiply that by a factor of 10 or 20, and you see what a devastating financial blow this PG&E move would be to California’s crumbling economy.

So where, exactly, is the opposition?

Sup. Ross Mirkarimi called a meeting last week at the offices of the Utility Reform Network (TURN) to try to get other public power communities involved in a statewide campaign. But it’s been slow going.

That’s not going to work. Every elected agency in the Bay Area needs to get this on the agenda — now. Every city official (starting with Mayor Gavin Newsom, who wants to be governor) and every state official (starting with Attorney General Jerry Brown, who also wants to be governor) needs to loudly and publicly denounce this move, help establish a high-level coalition to beat it back, and start raising money for the campaign.

There may be a legal strategy, too. The law that authorized cities and counties to set up CCAs bars PG&E and other private utilities from interfering with local CCA efforts — and it’s pretty clear that this initiative is designed to do exactly that. City Attorney Dennis Herrera needs to immediately investigate the possibility of suing to get this disastrous initiative off the ballot. *

Prison report: What the state really wants

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By Just A Guy

Editors note: Just A Guy is an inmate in a California state prison. His dispatches appear twice a week.

I guess this is sort of a continuance from my last blog, which was, What Plan?My sentiment hasn’t changed — what the California Department of Corrections and Rehabilitation has offered the three-judge panel is a “plan” that will surely get rejected.

The political rhetoric indicates that the state will fight — but it really is weak rhetoric, spoken just between the ears of constituents by politicians who want to appear tough on crime.

For those who that don’t deal directly with lawyers and politicians on a daily basis, the “we-will-fight-the-feds” speech really is weak. They have to say that — to appear tough on crime and strong for public safety (in their minds anyway). But I believe a good percentage of them are silently grateful for the escape granted to them by the feds. Ultimately, the court will reject their weak plan and take over long enough to release dozens of thousands of us .

If CDCR and the politicians who say they’re against releases felt as strong as they would have you think, a much more robust, pragmatic, well-thought-out process to deal with overcrowding would have been presented.

The Republicans claim to be against big government. If they really thought that way about the release scenario, they would have pushed for a plan that would have been acceptable to the courts and kept the big federal government out of the California prison system.

The Democrats who speak against releases and federal interference are just hypocrites scampering for a way to ride out the potential political fallout they perceive if they don’t “speak out” against releases.

Meanwhile, the ones who are speaking up for sanity are not getting the shaft that the others so feared.

The long-term results of the current budget cuts for health care, welfare and education are not seen as threats to public safety. But its so right in front of everyone to see and it’s not too complicated to explain nor to understand:

— Cuts to welfare mean more people have to find a way to feed themselves and their families. Consequently, they may steal or deal drugs.

— Cuts to health care mean less money to pay for you and your family’s health — consequently people will steal or deal drugs to pay for health care.

— Cuts to education mean a less-educated workforce that can’t get jobs because the economy sucks so they get on welfare …. oops, there is no welfare. Consequently, they steal or deal drugs to pay for food or healthcare or both.

Of course, there are those that wind up on drugs because it’s easier to worry about the next high than your next meal.

40,000 now — or what, 400,000 in five years?

Power Exchange bust: an eyewitness report

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This weekend, the Power Exchange sex club, one of the few in the city that welcomes more than gay bio-men, was busted by police at its new Tenderloin location last Friday night, ostensibly because of permit violations. It had been facing some ridiculous backlash. Was it really because of transphobia? Commenter robintv posted this eyewitness report. We’ve been unable to confirm robintv’s identity, but if you were there or have any other information please post it in the comments.

Intolerance closes the Power Exchange club in San Francisco
by robintv

Late Friday night the forces of intolerance prevailed in San Francisco, using the San Francisco government to do their bidding.

Around 10:30pm, I heard voices telling everyone to leave the premises, and saw a large number of uniformed San Francisco fire and police personnel had entered the Power Exchange club (PE) at 34 Mason Street. The PE usually is not real busy till after midnight, so there was not a large number of people inside. The whole process was peaceful, and from what I saw, the police and fire dept personnel were courteous and discreet and just following orders and there were no cuffs, no id checks, no photos, we were just told to leave the club.

After exiting, we milled around outside the PE talking with each other, passerbys, local residents, and M Powers, the PE owner. People continued to arrive at PE by foot and cabs, including a number of transgender (TG) women who frequented the Otis St location and were returning to the PE for their first time at the new Mason St. location. They were returning to the only space where they could safely be themselves, socialize with other TG women and friends and meet people who are attracted to TG women, without risk of being verbally abused, beaten, or even murdered. Many, including myself, have been going to the PE for over 10 years.

For many, the PE has been a sanctuary of tolerance and acceptance in a world of intolerance, persecution and pain.

As I stood there on a beautiful, warm, September SF night, it was difficult for me to believe that this was happening in San Francisco, where the politicians give a lot of lip service to how tolerant SF is.

I believe the PE has limited resources and lawyers are very costly. A business can be right and the city wrong, but still loose if the business has used up its resources in proving it is right, and can not reopen. Thus, even if PE is right, which I suspect they are, they can still be forced to stay closed and intolerant haters will prevail in forcing their religious/moral values on others using the San Francisco government as a forceful vehicle to do so.

What to do?

Will your favorite club/venue/ business be the next target of the intolerance crusade?

Can we talk about capitalism now?

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By Steven T. Jones
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Are we actually, finally, about to have a long overdue national conversation about capitalism? I really hope so, and perhaps the catalyst for that conversation can be Michael Moore’s new film, “Capitalism: A Love Story,” which I saw yesterday and which debuts in theaters on Oct. 2.

Moore doesn’t pull any punches in assailing an economic system that has created huge and growing disparities in wealth, corrupted both the public and private sectors, destroyed people’s lives and the country’s manufacturing base, and is both wasteful and unsustainable — a system that even the mainstream clergy he interviews labels as “evil.”

He makes excellent use of last year’s financial meltdown and the electoral gun that Wall Street power brokers (working inside and outside the federal government, Democrats and Republicans alike) held to the heads of Congress members in order to get their $700 billion bailout, which Moore calls a theft of the US treasury.

But it’s his use of archival footage that really brings home just how much capitalist propaganda has conditioned the American people into accepting as natural and inevitable an economic system that is so hostile to their interests. Particularly powerful was a speech that FDR made a year before his death calling for a “Second Bill of Rights” that would guarantee the right to work for livable wages, have access to affordable health care and quality education, housing that is adequate and reasonably priced, a pension and vacation time, and the resources to enjoy recreation and pursue our happiness.

These are reasonable expectations that the richest 1 percent of the country – which Moore shows as actively conspiring against basic equity, fair competition, and the common good, citing an incriminating Citibank memo among other evidence – has removed from the realm of the possible. And it’s time that the people rose up against our economic masters and demanded a new economic system that is sustainable, equitable, and just, something he shows as already starting to happen here and there.

“I refuse to live in a country like this and I’m not leaving,” Moore said toward the end of the film, soon adding, “Capitalism is an evil and you can’t regulate evil — you have to eliminate it.”

Take warning

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a&eletters@sfbg.com

The forests are in flames, the desert is advancing, the glaciers have vanished, and in a solar-powered facility towering above the ice-free waters of the Arctic, some 800 miles north of Norway, a solitary older man (Pete Postlethwaite) roams the hallways of the Global Archive, a warehouse sheltering banks of data-storage servers, a civilization’s worth of art and invention, and a Noah’s ark of extinguished species. From this lonely outpost, he gravely explores a stomach-churning inquiry: "We could have saved ourselves. But we didn’t. It’s amazing. What state of mind were we in to face extinction and simply shrug it off?"

Good question, and one that Franny Armstrong’s The Age of Stupid, a hybrid merging documentary material and a fictional frame tale, forcefully suggests we start addressing like we mean it — immediately. That is to say, before runaway climate change makes its debut and some or all of its widely forecasted ecological consequences begin to manifest, along with resource shortages, food and water riots, and massive societal collapse.

Delineating the complex global network of climate-change causes and effects, The Age of Stupid interweaves real-life documentary footage from the lives of six present-day subjects in New Orleans, the French Alps, Jordan, southwest England, a small Nigerian fishing village, and Mumbai, India. Interspersed is real and faux (future) archival footage depicting and predicting the environmental consequences of humanity’s bad habits. And all of it is presented as the digital artifacts of a dying-off civilization, preserved for uncertain posterity in the Global Archive. While covering similar terrain to that of An Inconvenient Truth (2006), the film serves as a kind of "No, but really, folks …" in the face of frighteningly incremental gestures toward sustainability — and continued shortsighted resistance — at the levels of national, state, and local government as well as citizenry.

The film’s opening sequence begins with the big bang and hurtles via countdown clock through billions of years, flying past the earliest stages of evolution, past dinosaurs, past the industrial revolution, and past the present day, the titular Age of Stupid, so fast that we barely have time to notice ourselves on the screen before it’s 2055, the Age of Too Late. The message: in the grand scheme of things, we have about a nanosecond left to kid ourselves as we refill our metal water bottle and press the start button on our Energy Star-qualified washer-dryer or Prius — or to find a way, at the level of populace, not green-minded individual, to radically swerve from our current path. According to Armstrong and her cohorts in the Not Stupid Campaign, the film’s companion activist effort, our fate will pretty much be decided by December’s climate talks in Copenhagen. (The film, which premiered in the U.K. in March, has its 50-country "global premiere" Sept. 21-22.)

So then, do the canvas bags, travel mugs, energy-saving appliances, clotheslines, CSA memberships, cycling, recycling, composting, and other ecologically minded efforts of a smattering of well-intentioned individuals matter at all? Or matter enough — in the face of factories, factory farming, methane-emitting landfills, canyons of office towers lit up 24/7, a continent-sized constellation of plastic detritus in the Pacific, and millions of trips cross-country at an average elevation of 30,000 feet?

Colin Beavan, the subject of Laura Gabbert and Justin Schein’s No Impact Man, is banking on yes, being of the "be the change you wish to see in the world" school of thought (admittedly in good company, with Mahatma Gandhi). Taking its name from Beavan’s book project and blog, No Impact Man shadows the NYC-based writer; his wife, Michelle Conlin, a senior writer at BusinessWeek admitting to "an intense relationship with retail" and a high-fructose corn syrup addiction; and their toddler daughter, Isabella, during a year in which they try to achieve a net-neutral environmental impact.

This entails giving up, in successive stages, with varying degrees of exactitude, packaged food (hard on a family whose caloric mainstay is take-out), nonlocal food (hard on a woman who drinks multiple quadruple-shot espressos a day; impossible, as it turns out), paper products (magazine subscriptions, TP), fossil-fuel-dependent transit (airplanes, elevators, and even the subway), electricity (i.e., the refrigerator), and, to a large extent, trash. The idea is to learn empirically — and demonstrate — which behaviors might be permanently ditched and which are virtually hardwired.

There are, predictably, certain criticisms –- from irritated environmentalists, from semianonymous blog commenters, from the New York Times Home and Garden section. There is the matter of giving up public transportation rather than championing it, and the issue (raised by a community gardener who takes Beavan under his wing) of Conlin’s laboring for a high-circulation publication that trumpets capitalist virtues antithetical to the project of tapering off consumption and waste. And Beavan sometimes comes across, particularly in the book, as well-meaning but stubbornly myopic in his focus on self-improvement.

Then again, the guy and his family gave up toilet paper, electric light, motor vehicles, spontaneous slices of pizza, and many deeply ingrained habits of wastefulness for a year while most of the rest of the country got up each morning and brushed their teeth with the water running. What impact the No Impact project might have on, for instance, the mounds of trash-filled Heftys that line Manhattan’s sidewalks each week remains to be seen. But as the Age of Stupid winds down, it’s probably a waste of time to fault anyone’s attempts to forestall the Age of Too Late.

NO IMPACT MAN opens Fri/18 in Bay Area theaters.

THE AGE OF STUPID plays Mon/21, 8 p.m., SF Center. Visit www.ageofstupid.net for additional Bay Area screenings.

Editor’s Notes

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Tredmond@sfbg.com

I’m really glad that you can watch the state Legislature on streaming video, because it gave me something to do Friday night. For a couple of hours, I sat there transfixed, flicking from the Assembly channel to the Senate channel, as the exhausted and somewhat punchy leaders of our state government blazed through about 100 different bills.

I think my favorite moment was when the Assembly Republicans tried to derail AB 962, a bill by Assembly Member Kevin De Leon (D-Los Angeles) that bans the sale of mail-order ammunition. De Leon tried to explain how reasonable the measure is — you can still order ammo on the Internet, but it has to be delivered to a licensed gun store, someplace where a clerk can check to make sure you’re over 18 and not a felon. He spoke of teenagers in his district ordering thousands of rounds of deadly bullets and getting them delivered to their doorsteps.

But oh my, the GOP was outraged. One Assembly Member announced that this was a violation of the Second Amendment and started chanting "let my people go." Another described a letter she received from a senior citizen who apparently had trouble getting around but needed a thousand rounds of live ammo for a "cowboy reenactment." The guy can’t drive to a gun store, but he can shoot live bullets at other old cowboys? What a great country.

At any rate, the Assembly passed the bill, with the minimum 41 votes, and the governor will now get to decide once again if he’s with the gun nuts or reasonable law enforcement.

I was a little worried that the modest prison reform bill would fail. Barely enough Assembly Democrats supported it, and some of the more liberal state Senators said it didn’t go far enough. Which it didn’t, and it doesn’t, and it’s at best a weak plan that could lead to the release of 17,000 nonviolent inmates. But the heart of the original bill, which called for a commission to review the state’s insane and often arbitrary sentencing policies, died. And some Assembly Democrats — including San Francisco’s Fiona Ma — refused to support a proposal to release more inmates to alternative custody, including home detention with electronic monitoring. So an alternative-release bill never made it to the floor.

That means the state is at least $200 million short of the cuts it needs to make in the prison system to balance the budget — cuts that were already included in the fiscal plan approved this summer. And California is still out of compliance with the federal courts, which have ordered the state to release some 40,000 inmates.

Something’s got to give.

The water system isn’t getting any better, either. The five key water bills failed to get approval, so it appears the Legislature will be coming back for a special session on water. Maybe one on education, too. Maybe more prison reform will come up in those sessions. Maybe Fiona Ma will realize that unlike some moderate Dems, she runs no risk of losing reelection over prison releases and can vote the right way next time.

And maybe Tantalus will get to eat some apples. Last I heard, he was still hungry.

Dick Fogel, journalist and FOI legend, 1923-2009

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Scroll down for B3 comments on Dick Fogel.

San Francisco’s Bay City News Service reported today that Dick Fogel, co-founder with his wife of the service, died Wednesday in Thousand Oaks.

Wayne Futak, a key member of the original founding group and now the general manager who has taken the helm,
told me that Dick “was passionate about the importance of journalism in society and he passed that on to the hundreds of young journalists who have come through Bay City News, including me.
In describing Dick’s newsroom philosophy, perhaps the best tribute is the Bay City News Service Credo he established, which was given to all new employees.” Futak sent along the Credo:

“It shall be the constant intention of Bay City News Service reporters and editors:
–to pursue and write the news with fairness, accuracy and a sense of professional detachment;
–to be purposeful and searching in the quest for information; and yet,
–to avoid arrogance and instead maintain a reasonable concern for the personal dignity of sources and contacts.”

I asked Wayne if the BCN obit ought to have a byline. No, he said, it was a collective effort and should just say from the Bay City News Service. Here it is:

Richard Henry Fogel, 86, longtime newspaper editor and co-founder of San Francisco’s Bay City News Service, died on Sept. 9, 2009, in Thousand Oaks, Calif.

A passionate advocate on issues relating to the public’s right to access government information, Fogel worked tirelessly with other prominent journalists and news organizations across the country to craft the basic principles of what would later become the landmark Freedom of Information Act (Public Law 89-554, 80 Stat. 383).

Regarded as a legend among San Francisco Bay Area journalists, Fogel received the prestigious Northern California Radio-Television News Directors Association (RTNDA) Lifetime Achievement Award in 2005.

Born April 29, 1923, in Santa Monica, California, Richard Fogel, known to friends and colleagues as “Dick,” was the younger of two sons of Moe Miller Fogel and Syndie Aileen Gardner Fogel.

Lawns to highrises

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rebeccab@sfbg.com

When Aaron Goodman walks the grounds at Parkmerced, a sprawling apartment complex spanning about 116 acres in southwestern San Francisco, he picks up on details that might escape the notice of a casual observer. A gregarious tour guide, he chatters on enthusiastically about the unique design elements of an entryway or townhouse facade, the curve of a knee-high brick wall defining the slope of a courtyard, the simple elegance of a tiered planter or classic window frame, or the spacious feel of a breezeway that opens onto shared grassy space encircled by backyard terraces. "No two courtyards are alike," Goodman says. "Each one is like a little vignette."

An architect who lives in a rental unit in one of Parkmerced’s towers, Goodman is on a mission to document the complex’s 1940s-era courtyard landscapes — but he’s racing against the clock. Landscape and carpentry crews are constantly rearranging things before he can get to them, he says — and those piecemeal cosmetic changes are nothing in comparison with what’s coming.

A total overhaul has been proposed for Parkmerced. The low-rise town houses would be razed, the landscape drastically altered, and an additional 5,665 housing units constructed, nearly tripling the number of residents that can be accommodated.

Goodman regards the plan as a "total tear-down," an affront to the work of the influential landscape architect who designed the grounds, and a terrible waste.

But Skidmore, Owens and Merrill, the internationally renowned architecture firm hired by the owner, a real-estate investment group called Parkmerced Investors LLC, describes the future Parkmerced as a cutting-edge eco-neighborhood that would provide the city with desperately needed rental housing. "This will be the largest sustainable revitalization project on the West Coast — perhaps in the entire nation," says Craig Hartman, the principal architect. "Our goal is to create an international model of environmentally sustainable urban living, and all our decisions are being made in that context."

A development of this scale would fundamentally change the feel of an entire San Francisco neighborhood. It’s also, potentially, a case study in one of the most complex urban planning problems of our time.

"This is the kind of problem that America is going to be faced with over and over in the coming decades," Gabriel Metcalf, executive director of the San Francisco Planning and Urban Research Association, told us. "It’s this question of how do we retrofit suburbia?"

Parkmerced is one of many similar areas developed after World War II, "when people hated cities," Metcalf said, "when the idea was that everybody would drive everywhere, and it was a sort of new town in town. It’s a period piece. It’s from a time when people were trying to escape density and traditional Victorian patterns like in the Tenderloin or SoMa or North Beach — [instead], you would have big lawns, and it would look very suburban."

But that model, most environmentalists and planner agree, isn’t sustainable. And activists say that the western part of the city, which has always resisted density, will have to accept more residents in the coming years.

But a development of this size and magnitude, driven by a profit-seeking real-estate operation, creates all sorts of other problems, including potential traffic disasters on the nightmare called 19th Avenue. And while much of the new housing will be rental and some will be affordable, it raises the question: is this the sort of new housing the city needs?

TOO MUCH WATER


The plans for Parkmerced are bold, and the construction timeline spans 15 to 20 years. The 11 towers on the site, which account for about half the 3,000-unit housing stock, would remain standing, while the low-scale apartment dwellings would be demolished to make way for a mix of taller buildings, including 11 new towers at about the same height. Once the project is complete, Parkmerced would have a total of nearly 8,900 housing units, with a mix of rental and for-sale properties.

"Our plan for Parkmerced will directly address the city’s housing shortage for households at all income levels," Hartman told the Guardian, adding that existing rental units would be preserved, and the project would comply with the city’s affordable-housing requirements. The city typically requires about 15 percent affordability, which would mean about 850 new below-market units — and 4,800 at market rate.

And while the complex was originally designed for middle-class families, the owners have been targeting San Francisco State University students — who typically have their parents co-sign the leases and who don’t present a rent-control issue, since they don’t stay long.

Sustainability and energy-efficiency are underpinnings of the project, according to Hartman. The poorly insulated garden apartments are moisture-ridden and inefficient, he said, and the entire neighborhood layout reflects the car-centric mentality of a bygone era. The landscape also poses a problem. "Maintaining the expansive lawns … requires the application of tons of fertilizer and wastes millions of gallons of drinking water annually. In fact, actual metering shows the consumption of 55 million gallons of potable water per year — just for irrigation."

Parkmerced residents would use 60 percent less energy and water per capita than they do now, according to Hartman, through efficiency improvements and investments in renewable energy sources. Plans also call for an organic farm and a network of bike paths. A storm-water management system would naturally filter runoff and use it to recharge Lake Merced, which has been seeping lower in recent years.

The developers hope to re-route the Muni M line through the complex to make transit more accessible. New retail would eliminate the need to drive somewhere for something as simple as a quart of milk.

"To me what’s most exciting about this is, if they get it right, it’s actually taking an area that right now generates a ton of car trips, and making it walkable," Metcalf said.

But Goodman and others have suggested that Parkmerced should be designated as a landmark, which would hamper development plans, precisely because its character is reminiscent of that postwar era. A draft report issued by Page & Turnbull, a historic-architecture firm, found that Parkmerced would be eligible for designation as a historic district on the California and national registers of historic places.

It was built in the 1940s by Metropolitan Life Insurance Co. as part of a government-supported effort to supply housing for the middle-class and families of servicemembers. The "courtyard vignettes" bear the mark of Thomas Dolliver Church, regarded as the founding father of the modern movement in landscape design.

"It was Church’s biggest public project," notes Inge Horton, an architect and former regional planner with the San Francisco Planning Department who completed an historic assessment of Parkmerced for Docomomo, the International Committee for Documentation and Conservation of Buildings, Sites and Neighborhoods of the Modern Movement. Horton has mixed feelings about the proposed development. "It is one of these things where the developer or owner proposes to tear down all the low-rise buildings and put up a high-rise and make it a little bit green," Horton said. "Sorry to be so cynical."

Goodman wonders just what’s so sustainable about demolishing buildings that the owners have just sunk millions of dollars into for fix-ups and cosmetic repairs. "When you look at the overall site, it’s a functioning community — and it’s essential housing," he says, wondering why it can’t be reused and expanded," he says.

Hartman says he views the site "as an architect," and finds it to be incongruous with San Francisco’s character. "To be frank, the architecture is unworthy of this extraordinary site," he says. Instead, he sees potential for what it could be: a pioneering example of a green neighborhood that uses urban density to meet the challenge of climate change.

MOVING OUT


At a public meeting held in June to discuss the future plans, residents shared their anxiety about being forced to move. Some tenants, particularly seniors, have lived there for decades in rent-controlled units. Parkmerced Investors has promised that those residents would be able to maintain their current rents in brand new, comparatively sized apartments. But Goodman points out that many would lose their meticulously cared-for garden plots and be forced to adapt to life in a high-rise instead.

About half the tenants are college students who attend San Francisco State, which lies adjacent to Parkmerced. District 7 Sup. Sean Elsbernd, who represents the neighborhood, told the Guardian that he often receives complaints from his constituents about "keggers" that go on until the wee morning hours.

"Parkmerced is such a fascinating societal study," Elsbernd noted. "You’ve got a lot of folks who’ve been there since it was built, but really the vast majority now are students at San Francisco State who are so transient and really aren’t terribly invested in the neighborhood."

Elsbernd said he also shares a different concern, which came across at the meeting loud and clear: traffic. Although development plans emphasize cycling, Muni access, and a shuttle that would carry passengers to the Daly City BART, the redesign would come with a grand total of more than 11,000 on-street and off-street parking spaces. And it’s situated along the 19th Avenue corridor, which is already notorious for traffic snarls (and for pedestrian deaths). Some fear the combination of two new developments would fuel perpetual, dangerous gridlock.

"At minimum, we’re talking 5,000 additional vehicular trips a day," said Calvin Welch, a longtime affordable housing activist. "You couldn’t build housing further from where people work if you tried." Welch regards the smart-growth school of thought, enthusiastically endorsed by SPUR, with skepticism. The pitfall, he says, is "allowing high-density development in transit-oriented neighborhoods … and then finding out that people drive."

On the other hand, Welch said, market-rate rental housing is much more affordable than market-rate condominiums, so Parkmerced will provide a service compared to the condos that are pricing so many middle-class families out of San Francisco. And the eastern half of the city has had its share of new residential development, so building new rental units in the western half might be an appropriate counterbalance.
Goodman said he has his own vision for Parkmerced, which would employ adaptive reuse of the existing structures and ensure truly affordable housing for people of modest means. "If I had money and tons of land and all the power in the world, I’d do it a completely different way," he says. "But I don’t. I’m a tenant living on site."

The harshest cut

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news@sfbg.com

"I wake up at night at 3:30, hearing the logging trucks and knowing what’s happening," Susan Robinson complains. "It makes me sick."

Robinson lives just off State Route 4 in Arnold, a Calaveras County community perched on the western slope of the Sierra.

For the past nine years, this feisty retiree has been clamoring to get Sierra Pacific Industries, California’s leading timber company, to stop clear-cutting the forest. "I’m the daughter of a forester myself. I am not anti-logging," she told us. "Of course, SPI should be able to log its land. But it shouldn’t have the right to obliterate everything."

A decade ago, logging and forestry practices in the Sierra were big news. Media reports, protests, and legislative action focused on SPI’s practice of slicing through entire large tracts of land, hacking down every tree, bush, and seedling and leaving nothing but devastation behind.

But most of the news media have long since moved on to other issues — and the clear-cutting continues. If anything, the pace at which SPI is felling the forest has hastened since the intensive logging controversies grabbed headlines in the 1990s.

"When I recently read the June 2000 issue of the Guardian exposing SPI’s activities in the Sierra, I was pained because I thought, ‘Wow! This could have been written yesterday,’" said Marily Woodhouse, a Sierra Club organizer in Shasta County.

It’s not as if nothing has changed under the Sierra sun. Some timber companies have adopted more responsible practices. But SPI is still a major problem. And as the largest private landowner in the state, its footprint is huge. Conservation activists have been exploring new opposition tactics while maintaining their diligent efforts on the legislative, legal, and educational fronts.

Susan Robinson and the other members of the Ebbetts Pass Forest Watch often take visitors to tour the backcountry roads and see the damage for themselves. On Winton Road, plots managed by SPI are adjacent to the Stanislaus National Forest, which is administered by the U.S. Forest Service — and the contrast is staggering.

Patches SPI harvested two years ago are still bare due to herbicide spraying. Between stumps, 10-inch-long replanted ponderosa pines may poke their frail limbs out of the churned soil, but there’s nothing left on a 20-acre lot for deer, bobcats, raccoons, or woodpeckers to eat, rest on, or breed in. No bees pollinating. No chickarees denning. It will take decades for the seedlings to reach maturity.

On the opposite side of the gravel road, on Forest Service land, sugar pines, ponderosa pines, lodgepole pines, incense cedars, oaks, and white firs of different ages shelter ferns, mushrooms, and berry plants. The forest has been thinned to reduce fire hazard, but it has not been converted to a monoculture tree farm.

"What grows back after you clear-cut is a plantation," said Doug Bevington of Environment Now. "A forest is not simply a collection of trees. What makes a forest a vibrant ecosystem is its diversity, having different species and different ages. And it’s the diversity of the forest that creates the habitat to support more species of life."

CLEAR-CUT FRENZY


You don’t need to travel to the Sierra to get the picture — connecting to Google Earth will suffice. Zoom into Arnold and levitate above Highway 4. Beyond the lush forest "beauty strips," the landscape looks like a moth-eaten blanket of evergreens.

Over the past 10 years, SPI has clear-cut 18 square miles in Calaveras County alone. (Clear-cut also includes slightly more moderate logging techniques that leave few trees and snags remaining on an otherwise desert-like tract.)

State records show that between 1996 and 2006 SPI clear-cut 270,000 acres of forests and dumped 335,000 pounds of herbicide into the soil. That’s roughly 420 square miles of scalped woodland. SPI isn’t the only timber company clear-cutting in this state, it just happens to be the most zealous. And it owns 1.7 million acres.

Proponents and opponents of clear-cutting agree on one point: it’s the most productive and the cheapest way to grow timber. But environmentalists say the ecosystems pay a heavy price for the practice.

Mark Pawlicki, SPI’s director of government affairs, told us that the company meets the standards set by the state’s Forest Practice Rules, and that Californian clear-cutting regulations are the strictest in the country. California allows 20 acre cuts; in Washington, the denuded area can reach 240 acres.

Timber harvest plans are not only reviewed the California Department of Forestry and Fire Protection (CAL FIRE), but also by the California Department of Fish and Game, the Regional Water Quality Control Board, and the California Geological Survey. Recently, SPI has even started to replant its clear-cuts with two or three different tree species.

The scientific community recognizes that clear-cutting has greater ecological impacts than any other harvesting method. Such radical treatment may be the only way to salvage logs from woods killed by insects or fire. And the industry is forced to mitigate some of the impacts — buffer zones, for instance, are required for waterways supporting aquatic life.

But that’s not enough: the tiny tributaries feeding the waterways aren’t protected, so sediment and debris can end up in the protected streams, affecting water quality, fish species, and amphibians. The water cycle is inevitably disrupted, with snowpack melting earlier in the season and rainfall running off the naked slopes. The fragmentation of the forest displaces animals that move around for their living, putting pressure on surrounding lands.

Environmental organizations are also concerned about exacerbation of climate change.

In national forests, clear-cutting has been phased out for more than a decade. Members of Ebbetts Pass Forest Watch wonder why the state can’t make the same rules for private loggers.

"I do reckon that private companies have to make profits," said Forest Watch activist Addie Jacobson. "But we do see companies like Collins Pine harvest timber in a way that all of us are happy with yet make some profit."

GREEN WOOD


Collins Pine has been managing 94,000 acres of timberland in Plumas and Tehama counties since 1941. It primarily uses selective cutting, where only certain trees are sparsely removed. Chief forester Jay Francis says that after a month, you can hardly tell a logged area from a pristine one.

"Our owners do not want us to do anything that compromises the values of our Sierra mixed-conifer forest, whether its wildlife, clean water, recreation, esthetics," he told us. "So we do a very minor amount of clear-cutting. In fact, we just turned in a plan for a 15-acre clear-cut for health reasons. We have an infestation of root-rots in an area. That’s probably the first clear-cut we’ve done in 50 years."

Those cuts are less than six acres wide, meeting the rules of the Forest Stewardship Council (FSC), an international organization that certifies sustainable forest management. Since its inception in 1993, FSC has developed standards to accommodate the commercial, social, and environmental values of forestland. It has the backing of the world’s leading environmental groups, including Greenpeace and the World Wildlife Fund. Consumers can rely on its label to buy environmentally and socially responsible wood products.

Collins Pine was the first privately held logging company in North America to receive FSC certification, in 1993. There are now 22 certified companies.

Gary Dodge, director of science at FSC U.S., contrasted FSC’s approach to wildlife with CAL FIRE’s, which only protects state-listed endangered species. "We also believe that it’s the role of the forest to prevent common species from becoming rare, or prevent rare species from becoming extinct," he said.

In the iconic North Coast redwoods of Mendocino County, the Mendocino Redwood Company has taken its cue from Collins Pine. In 1998, MRC took over 228,800 acres from the environmental villain Louisiana Pacific. From the start, MRC managers stated that they aimed for the business to be a good steward and a successful business. The company received FSC certification in 2000.

"There are a lot of models for what it means to be a successful business, but there are fewer for what it means to be a steward of the land," Sandy Dean, chairman of MRC, told us. "We think quite literally that it is to leave it better than we found it. It includes a reduction in the level of harvest, the elimination of clear-cutting, and the adoption of a specific policy to protect old-growth trees."

SPI is not impressed by this trend. "By and large, the companies that exclusively use selective logging just have a different objective than we do," Pawlicki said. "They’re not growing as much timber as we are."

SPI, nevertheless, is also using the buzz-word sustainability. According to Pawlicki, the state of California requires timber companies to be sustainable anyway. "You can’t cut more than you grow under California law." Jumping on the green-building bandwagon, SPI has also sought certification — with an organization called the Sustainable Forest Initiative that is not recognized by the LEED green building rating system.

NEW BATTLEGROUNDS


These days, conservation activists are trying out new strategies to compel SPI to straighten up its act. ForestEthics’ Save the Sierra campaign aims at protecting forests using the market as a weapon. "The average person may not have heard of SPI," said activist Joshua Buswell Charkow, "but they know its clients: Home Depot, Lowe’s, Kolbe & Kolbe [Millwork Company].

Some environmental groups still resort to litigation. "I’m not too optimistic to think that the industry will reform itself," said Brendan Cummings from the Center for Biological Diversity.

The center recently filed three lawsuits against CAL FIRE for approving timber harvest plans without properly analyzing the greenhouse gas emissions from each specific project. Instead, the agency accepted SPI’s broad assertion that growing its tree plantation over the next 100 years would offset the immediate carbon release caused by plowing the soil and burning the slash. But even if that’s true, the nature of the climate crisis is such that we need to curb emissions right now, said Cummings. In response, SPI withdrew its plans.

Concerned Sierra citizens are also challenging logging plans in the courts. In Shasta County, Marily Woodhouse has been opposing a plan to clear-cut 809 acres in the vicinity of the Digger Creek that flows through her town of Manton for fear it will disrupt an already heavily logged watershed. The Battle Creek Alliance, the coalition she helped form, filed suit in January 2008. "What happens if they drop a plan? Eventually they come back again," she said.

"The lawsuits do slow things down. But the fact is, [the loggers are] never going away."

Past experience has taught activists to be wary. Ten years ago, when SPI’s frenetic activity first came under public scrutiny, rallies and media coverage curtailed the timber giants’ greed. Yuba Valley residents led a protest against a plan to scrape 171 acres along the banks of the South Yuba River. And farther South, locals from Arnold faced with an 884-acre clear-cut launched Ebbetts Pass Forest Watch. SPI kept a low profile for a while, even declaring to the press it would scale back clear-cutting in Calaveras County — only to redouble its practices a few months down the road.

The Yuba River site has been spared, thanks to the intervention of the Trust for Public Land, which has been able to purchase 110,000 acres from SPI. Those parcels, also located in the Tahoe region and Humboldt County, were transferred to public ownership for conservation.

On the policy front, Forests Forever has been leading the charge for 20 years. The lobbying group has sponsored three initiatives in Sacramento to ban or further restrict clear-cutting. The last bill was killed by the Assembly Natural Resources Committee in April 2008.

"There’s a lingering sense that logging is still an economic driver in the state," said Forests Forever executive director Paul Hughes. "But tourism and retirement, which depend on healthy forests, actually contribute more to the economy."

Skeptics say that 80 percent of the wood used in California comes from Washington and Oregon or from the Canadian provinces of British Columbia and Alberta, where clear-cutting is the norm anyway. But as Hughes put it, "You’ve got to start somewhere to fight this abomination."

Editor’s Notes

0

Tredmond@sfbg.com

Every poor and working class community in San Francisco has learned the hard way that its interests are at the bottom of the list as far as City Hall is concerned. At the top of the list are the banks, real estate interests, and large corporations, who view San Francisco not as a place for people to live and work and raise families, but as a corporate headquarters city and playground for corporate executives. By using their vast financial resources, they have been able to persuade local government officials that office buildings, hotels, and luxury apartments are more important than blue-collar industry, low-cost housing and decent public services and facilities.

Sound familiar?

It’s more than 30 years old.

Back in 1974, more than 50 San Francisco community groups — from Bay Area Gay Liberation to the Telegraph Hill Neighborhood Center, from the Federation of Ingleside Neigbhors to the San Quentin Six Defense Committee, from the Golden Gate Business and Civic Women’s Association to the Socialist Coalition — started meeting to develop a plan to take back the city.

It culminated with a Community Congress, on June 8, 1975, at Lone Mountain College (now part of the University of San Francisco). More than 1,000 people attended, and they drafted a remarkable 40-page document that outlined an alternative political, economic, social, and environmental agenda for San Francisco. The movement led, among other things, to the advent of district elections of supervisors (a key element in the platform) and the rise of active community-based organizations in this city.

Calvin Welch and Rene Cazenave, the veteran activists who run the San Francisco Information Clearinghouse, were among the organizers. They found the old manifesto recently and sent it out to a few of us by e-mail. I’ve posted it on the Politics blog. It calls for rent control, a sunshine ordinance, a health commission, full-time supervisors (who were to be paid $20,000 a year, the equivalent of $86,000 today), cable-TV coverage of the supervisors meetings, a mandate that developers build affordable housing and a feasibility study on public power. In fact, much of what the left has achieved in San Francisco in the past three decades is outlined in the Community Congress document.

(The congress also called for decriminalization of victimless crimes, including public inebriation, a guaranteed annual income, the abolition of the criminal grand jury, and some other things that didn’t quite come to pass.)

I mention this not only because it’s a fascinating historical document but because Welch and Cazenave think it’s time for a new Community Congress. Their draft agenda refers to a New Deal for San Francisco, and they’re talking about holding a series of meetings culminating in a major session sometime next year.

It’s tough to get the San Francisco left to come together on issues, even harder to build a broad-based organization that can push an agenda. Sup. Chris Daly tried several years ago, but the San Francisco People’s Organization never got the traction many of us had hoped for.

But although the progressives have accomplished a tremendous amount in this city, and have come a long way since 1975, the need is still there.

"San Francisco’s downtown corporate and banking interests and their representatives in city government are attempting at a local level to shift the burden of the current economic and political crisis ever more fully onto the backs of the poor and working people of San Francisco."

That was then. Today, Welch and Cazenave write, "San Francisco stands at a crucial junction brought about by the collapse of the real estate based speculative bubble and the related steep reduction of city revenue resulting in cuts in funding important programs and services … There needs to be a general coming together of community groups to articulate a set of policies able to be implemented at the local level which seek to maximize community control over the provision of critically needed health and human services and beneficial community development and to maintain a vital public sector."

Sounds like a plan. *

The weird attacks on Van Jones

24

By Tim Redmond

It’s no surprise that the right-wing nuts are going after Van Jones, the Bay Area activist who is now Obama’s green-jobs advisor. The loonies have picked up on the fact that Jones was one of 100 people (along with Daniel Ellsberg and Paul Hawken) who signed a letter raising questions about the government response to the 9/11 attacks. It’s actually not that radical a letter; Indybay has posted it here.

But what amazes me is how quickly people who aren’t typically considered wackos have bought into this — take, for example, the former wife of the mayor of San Francisco, who appeared on Sean Hannity’s show to denounce Jones with some bizarre claims:

GUILFOYLE: Well, that’ s a problem. When you say, is there a problem with the vetting process? Clearly he wasn’t vetted. All they had to do was go and ask a couple of questions in San Francisco about this individual. You know there’s a problem when he’s not even wanted in the city of San Francisco where I come from. OK?

HANNITY: That’s a good point.

GUILFOYLE: That’s a huge red flag right there. What is this man’s qualification besides his anti-American theory? He’s far left, radical.

HANNITY: No, he’s a communist. I mean avowed.

GUILFOYLE: Yes.

CUPP: Self-avowed. Yes.

GUILFOYLE: Self-avowed communist. Why is he even in the White House? Is that the reward?

He’s “not even wanted in San Francisco?” What? Van Jones is an icon in this town. Some people think he gets too much fawning press; nobody I know thinks he’s unwanted.

And, um, self-avowed communist? Kimberly, that’s so 50s. I know Van Jones, and I know some communists, and I can tell you that Van Jones — for better or for worse — is not a communist. Guilfoyle must know that, too — in fact, there really aren’t a whole lot of communists left, even in the Bay Area. In the 1980s, I used to see the Revolutionary Communist Party types at political events, but you hardly ever hear from them any more. Calling someone a communist these days doesn’t even qualify as red-baiting; it’s just nutty-mouth.

More:

HANNITY: All right. This is back in March of 2008. We examined this. He called on participants to take a pledge of resistance and — “Not in our name will we invade countries, bomb civilians, kill children, letting history take its course over the graves of the nameless.”

Now, I mean, we can keep going, look at the comment that he made about white polluters steering poison into black communities.

CUPP: Right.

GUILFOYLE: Well, this is an individual that doesn’t have the qualifications to be in the bizarre job that he’s in. And it just raises the issue here about these czars gone wild. This is someone who actually just doesn’t even like the United States of America, wants to reshape it, remake it into something that we would not even recognize, and what’s so wrong with this country that we have an individual like this coming in, meddling in our affairs that has no idea what he is doing, who really is traitorous in his comments against this country.

Actually, I spent several years of my life researching a book on the American environmental movement, which is now available in the remainder bins of finer used books stores here and there, and I can tell you that the question of environmental racism — in this case, of white-owned companies dumping toxic waste in black communities — is well settled. In fact, I was surprised to learn that chemical pollution wasn’t entirely a class issue — poor white communities got less poison than middle-class black communities. That’s 20-year-old news.

I know these guys need ways to attack Obama, but come on, Kimberly: You know better.

At least, I guess, Newsom can always distance himself; isn’t that what ex-wives are for?

The water wars

0

rebeccab@sfbg.com

When arch-conservative Fox News host Sean Hannity decided to weigh in recently on the contentious — and immensely complicated — issue of California water policy, here’s how he summed it up: "Farmers in California are losing their crops, their land, and their livelihood — all because of a two-inch fish!"

Television viewers were treated to scenes of the Central Valley, showing a lush field of crops — followed by a dusty, withered almond orchard that has been cut off from water exports from the Sacramento-San Joaquin Delta. A news anchor informed viewers that the nation’s most productive agricultural lands were "threatened by a small, harmless-looking minnow called the Delta smelt."

Because a federal judge ordered cutbacks in the amount of water shipped from the Sacramento-San Joaquin Delta to farms in the valley, a farmer explained on camera, growers have fallen on hard times. After showing a long line stretching around a food bank in the tiny agricultural town of Mendota, the newscasters concluded: "It’s fish versus families, and [the government is] choosing the fish."

It’s a dramatic portrayal, and the poor farm laborers who are out of work are truly struggling. But it isn’t the fault of a fish.

The state Legislature is now struggling with a series of bills to address a problem that sometimes seems to defy political solution, while agricultural interests — which consume the lion’s share of the state’s water supply — are campaigning aggressively to secure even more water for irrigation.
But while the political forces battle, an environmental nightmare is being created in the Delta. Years of massive water diversions are putting the San Francisco Bay-Delta Estuary at risk. Massive projects that take freshwater from the delta appear linked to declines in bay and delta fisheries, threatening not just endangered species but California’s salmon fishing industry, which lost more than $250 million last year as a result of declining salmon runs.

499-coverchart.jpg
Delta exports (at left) have increased in recent years, while returning Chinook salmon populations have declined at the end of a three-year spawning cycle. Graph created using data from Porgans & Associates

Meanwhile, climate models predict that California’s tug-of-war over water will only get uglier as the state is hit with more frequent droughts. As lawmakers scramble to find a solution to the state’s water woes, the challenge isn’t just to balance the needs of families and fish — it’s to steer an increasingly crowded state toward smarter management of shrinking water resources.
"It all comes down to climate change," Lt. Gov. John Garamendi noted in a recent interview with the Guardian. "Everything we know about water in California is going to dramatically change."

Critics say the bills in Sacramento are, at best, a duct-tape-and-baling-wire solution to a problem that could define the state’s economy and environment in the coming decades. "The bills … have been slapped together in such a slapdash way that it’s reminiscent of energy deregulation," said Nick Di Croce, lead author of "California Water Solutions Now," a report produced by the Environmental Water Caucus.

As things stand, much of the problem is inherent in the system. The pumps that export water out of the delta regularly pulverize federally threatened and endangered fish, yet the government agencies that operate them are rarely held accountable. The agency that is supposed to monitor and protect the health of the San Francisco Bay and the fragile delta ecosystem also gets 80 percent of its budget from water sales. And the state water projects regularly promise more water than they can deliver.

THE GREAT SUCKING SOUND

California’s water wars stem from a tricky dilemma: two-thirds of the precipitation falls in the north, while two-thirds of the people live in the drier south. The delta, located primarily in Sacramento and San Joaquin counties, is the heart of the state’s water supply, where the freshwater flows of the Sacramento and San Joaquin rivers and vein-like tributaries converge. It boasts the largest estuary on the west coast of North and South America, providing critical habitat for at least a dozen threatened or endangered species including salmon, smelt, splittail, sturgeon, and others.

The delta is also like a superhighway interchange of water for the state. Two vast plumbing networks — the Central Valley Project, operated by the U.S. Bureau of Reclamation, and the State Water Project, operated by the Department of Water Resources — transport water from delta pumping stations to cities and agricultural operations across the state.

Roughly 5.7 million acre-feet of water was exported annually from the delta in recent years, a high that many environmentalists say is unsustainable. (An acre-foot, or 325,853 gallons, is the amount that covers an acre one-foot deep.) Before the Central Valley Project was constructed in the 1930s, only 4.7 million acres of farmland were irrigated statewide. By 1997, the acres of thirsty cropland had climbed to 8.9 million, converting many areas that were once barren desert into lush green fields. Agribusiness dominates the sector, with some farming operations like agricultural empires, spanning tens of thousands of acres.

As cropland has expanded, so has agriculture’s demand for water. State and federal agencies sell delta water by issuing contracts to water districts, and the water is priced substantially lower for agricultural use. A report issued by the Natural Resources Defense Council suggests that delta water allocation has traditionally gone something like this: "Corporate and agricultural interests demanded more and more water, and the state and federal agencies let them have it."

No one can say just how much rain will fall from the sky in a given year, so stipulations were written into the water contracts to deal with allocation during times of water shortage. Depending on a district’s water rights — a status determined by a combination of seniority and a hierarchy of uses — it may get 100 percent of the amount promised on paper during a dry year, or a mere fraction of it.

But the districts continue to promise water to farmers, and the state continues to promise water to the districts.

This latest round of water wars is exacerbated by the drought, which has sapped water supply in California for three years in a row. The dry spell has led to cutbacks in delta water exports, affecting farms throughout the Central Valley and sending unemployment rates up. The drought was responsible for two-thirds of the roughly 1.6 million acre-feet shortfall in water exports, and the remaining third was withheld by federal court order to protect the endangered Delta smelt.

Making matters worse, many growers in water-deprived places like the Westlands Water District, in the Central Valley between Coalinga and San Joaquin, have recently shifted to permanent crops like almonds and pistachios instead of annual crops that might be more adaptable to unpredictable irrigation supply from year to year. It’s a bad time for the San Joaquin Valley to take a hit. The region is already plagued with high rates of unemployment from a loss in construction work, foreclosure, and other effects of the economic downturn.

HELL IN A HANDBASKET

State Sen. Joe Simitian (D-Palo Alto) put the dilemma simply: "The question is, how do you ensure that two-thirds of the state has a reliable supply of clean water while at the same time acknowledging and addressing the fact that from an environmental standpoint, the delta’s gone to hell in a handbasket over the last five years?" Simitian has taken a leadership role in crafting legislation to reform the broken system.

"I just think that things have come together at this particular time to suggest that there ought to be a sense of urgency about all of this," Simitian added during a recent conversation with the Guardian. "But I worry that inaction is always the default mechanism, and in a conversation such as this one, I don’t think we can afford inaction very much longer."
Right now five bills are pending in Sacramento. Backers say they strive to meet two "co-equal goals" that in the past have proven to be at odds: more reliable delta water deliveries, and a restored delta ecosystem. Simitian’s bill would create a Delta Stewardship Council, a powerful body authorized to approve spending for a new system for moving water through the delta that could include a new version of the much-maligned peripheral canal, a hydraulic bypass diverting freshwater from the Sacramento River around the brackish delta to ship south.

A bill introduced by Assembly Member Jared Huffman (D-San Rafael), who heads the water committee, would require a 20 percent reduction in statewide urban per capita water use by 2020. Other objectives in the legislation are to firm up ecological protections for the delta, reevaluate the state’s system of water rights, and establish new water-use reporting requirements.

"Is there a win-win here? I think there is," Simitian told us. "But only if you look at this from sort of a big-picture, comprehensive standpoint, which is why we’ve got five different bills that seek to make sure there’s a balancing of interests. One of the things we’ve talked about was the co-equal goals of a reliable supply of clean water with delta restoration. And that’s going to require not looking at any one of these issues in isolation, but taking it all together."

Gov. Arnold Schwarzenegger has made it clear that he believes building a peripheral canal is the best plan. Variations of this idea have been proposed since the 1940s, but in 1982, Californians voted it down at the ballot (with an overwhelming majority of Northern Californians voting no).

Some groups perceive this as a water grab for Southern California and agribusiness, and delta interests say it would cripple both delta agriculture and the estuary by increasing salinity levels from seawater and preventing the delta from being flushed out by natural freshwater flows. Cost estimates for that project range from $10 billion to $40 billion.

Schwarzenegger has also threatened to veto any package proposed by the Democrat-controlled Legislature that doesn’t include bonds for new dams (in their current form, the bills do not). A bond bill would require a two-thirds majority, while the proposed water bills would only need a simple majority vote to pass.

"I think it’s helpful for the governor to weigh in and share his opinions," Simitian noted cautiously. "However, I did not think it was helpful for the governor to simply draw a line in the sand."

The proposals are being met with skepticism from all sides. Many environmentalists who’ve gone to battle over water policy issues for years have little faith, saying the proposed Delta Stewardship Council would cater to the governor’s agenda because he would have the power to appoint four out of seven members. They’re concerned that environmental issues will play second fiddle as plans are hatched.

Lloyd Carter, an environmentalist who grew up on a raisin farm in the Central Valley, is suspicious the policy will be weighted toward agricultural interests. "What’s most useful is to think of water as cash," Carter told us. "It starts out as cash in the public treasury, and one little segment goes in and scoops out as much as it can. Agriculture accounts for less than 5 percent of the state’s economy and they use 80 percent of the water."

Agricultural interests and the water districts that serve them, not surprisingly, view water cutbacks as a signal of government failure and are hard-pressed to go along with anything that doesn’t include provisions for new dams and a canal. Rather than recognize limits in the amount of available water, they want new projects that will increase the supply.

The Latino Water Coalition, an organization backed by agribusiness that has put together marches and rallies to protest the water cutbacks, is critical of the proposed package of bills because they say it doesn’t go far enough. "For years there’s been committee after committee, board after board. If the best that the legislature can do is propose a new committee, how can that be a good solution?" asked Mario Santoyo, technical adviser to the coalition. "There are people who don’t have jobs, there’s food that’s not being grown. It’s a human rights issue. There has to be a solution, and it has to be real."

Sarah Woolf, media spokesperson for the Westlands Water District, which is among the most vocal advocates for agricultural water, echoed Santoyo’s view. "If you do not have above-ground and below-ground storage and a peripheral canal, then you don’t have a solution," she told the Guardian. "There’s no point in passing legislation that doesn’t solve the whole problem."

But of course, when there’s not enough water to go around, building more dams and canals isn’t going to solve the whole problem, either.

SELLING WATER THAT ISN’T THERE

Patrick Porgans, a Sacramento-based water policy expert, is critical of the proposed package of bills for a very different reason. "We can’t expect the very government that created the problem to solve the problem, because they are the problem," he says.

Porgans arrived at the Guardian office not long ago dressed in a salmon-colored suit with matching snakeskin belt and shoes. The rail-thin 63-year old walks with a bit of a fragile step, but once he gets talking about water, he’s a bundle of uncontrollable energy. For more than two hours, he held a pair of reporters in thrall as he unpacked and held up big armloads of charts, color-coded graphs, and government documents.

It’s just a sampling from what Porgans calls his "database," and he’s got photos: a storage space piled to the ceiling with file boxes containing thousands of pages of documents. This is his life’s work, and it’s easy to wonder how he even has time to eat and sleep.

In the wake of the 1987-92 drought, his consulting firm, Porgans & Associates, publicized the fact that the Central Valley Project and the State Water Project had pumped more water out of the delta during the dry spell than at any other time in their history of operation. The firm is now suing the government for vioutf8g the Endangered Species Act.

Ask Porgans, and he will tell you that "the peripheral canal is a peripheral issue" because it couldn’t possibly address the underlying shortcomings of the water-policy system itself. He pointed out that 80 percent of DWR’s operating budget is derived from water contracts, and noted that many top officials in water-project agencies arrive through a revolving door from the water districts themselves. There’s a conflict of interest, he said, because the agencies are in charge of both selling off delta water and acting as the stewards of the estuary, a natural resource owned by everyone.

Then there’s the underlying problem of the government having sold off contracts for more water than it could actually deliver, a point Porgans highlighted in his notice of intent to sue. In the years following a drought that struck California in the late 1970s, plans were made to expand water storage for the State Water Project — but they fell through at the last minute. Unfortunately, the limited capacity didn’t slow the sale of water contracts.

From 2001 to 2006 alone, the U.S. Bureau of Reclamation signed more than 170 long-term contracts with water districts around the state, promising to increase significantly water deliveries from the Central Valley Project for the next 25 to 40 years.

"Basically, they oversold the project," said Zeke Grader, executive director of the Pacific Coast Federation of Fishermen’s Associations. "We had all these contracts to deliver all this water, but nobody looked to see how much water there was. More importantly, they didn’t look at the minimums that would be needed to protect the delta."

"The shortages are inherent in the project," Porgans said. A court opinion issued by California’s third appellate district court in 2000, plucked from his database, underscores this point. "DWR forthrightly admits that ‘the State Water Project (SWP) does not have the storage facilities, delivery capabilities, or the water supplies necessary to deliver full amounts of entitlement water,’" Judge Cecily Bond noted, citing a DWR bulletin. "There is then no question that the SWP cannot deliver all the water to which contractors are entitled under the original contracts. It does not appear that SWP has ever had that ability."

Grader puts the blame directly on the water districts. The growers, he said, are "innocent third parties affected by the actions of water districts that should’ve known better" because the water contracts specified from the beginning that there would be less water available during times of water shortage.

"We have nothing but empathy for farm workers who are unemployed," said Barbara Barrigan-Parrilla, executive director of Restore the Delta, a 501(c)3 nonprofit representing delta farmers, fishermen, and environmentalists. "But their leadership told them, go ahead and do it. We’ll get you the water."

Farmers have organized rallies and marches to protest the water cutbacks, angrily putting the endangered delta smelt at the front and center of its campaign. A band of farmers traveled up to San Francisco in recent months, chanting "turn on the pumps!" outside Nancy Pelosi’s San Francisco Federal Building office.

Rep. Devin Nunes, a Republican who represents Tulare County and parts of Fresno County, unsuccessfully tried to convince Congress to waive Endangered Species Act requirements to forego protection of the delta smelt and restore irrigation for struggling farmers. (Nunes even attended a Congressional hearing toting a goldfish bowl containing minnows to play up the fish-vs.-families mummery.) The Latino Water Coalition has been particularly vocal, getting airtime on Fox News and publicly appearing with Gov. Schwarzenegger to call for construction of new dams and a canal to ensure a more reliable water supply.

Carter, the environmentalist watching it all unfold from Fresno, shakes his head at the display. If their campaign is successful, he told us, the state will wind up embarking on expensive infrastructure projects that serve an agribusiness agenda at Northern California’s expense. "There’s a sense of entitlement down here," he said. "They say it’s ‘our water.’ But the rivers in California belong to all the people."

DEAD FISH

A series of studies, court decisions, and a Blue Ribbon Delta Vision Task Force convened by the governor have all found that massive water exports out of the delta pose a tremendous environmental problem, and the delta smelt is a mere indicator of the trouble. Failing to ensure adequate freshwater flows through the delta could spell doom for California salmon runs and sound a death knell for the San Francisco Bay-Delta Estuary. And many contend that building a peripheral canal would be the quickest route to the delta’s demise.

According to data Porgans & Associates has collected, excessive delta water exports are aligned with salmon-population nosedives. The numbers tell a tale: high water exports correlate with dramatic decreases in salmon returns after the fish’s three-year spawning cycle. Conversely, fish populations bounce back following years of reduced pumping.

Delta water exports reached an all-time high of 6.7 million acre-feet in 2005, and three years later, the salmon returns were so low that the commercial salmon harvest was cancelled for the first time. It happened again this year.

While Westlands farmers bemoan what they call a "man-made drought," they’re not the only ones facing job loss due to delta water issues — an estimated $255 million was lost last year as a result of low salmon returns, according to California Department of Fish and Game estimates. A report from the Pacific Institute, an Oakland-based environmental research group, estimates puts farm losses due to water shortages at $245 million as of midsummer 2008.

"This closure is among the nation’s worst man-made fisheries disasters," an NRDC report notes. "It is on par with the loss of Atlantic cod fishery, and its economic impact for the fishing industry is comparable to the losses that followed the Exxon Valdez oil spill."

It’s said that California salmon were so plentiful 70 years ago that farmers plucked them from waterways with pitchforks. Now biologists say those salmon runs that haven’t already been listed as threatened or endangered are in a losing battle with worsening water quality and massive water pumps in the Delta.

An estimated 90,000 juvenile salmon die prematurely each year by being sucked into the heavy-duty pumps, according to a U.S. Bureau of Reclamation and Department of Water Resources study. Sometimes the pumping levels are so high it reverses river flows, causing salmon to swim upstream instead of out to sea. "If you or I go out and shoot an eagle, we’ll go to jail," said Barrigan-Parrilla, from Restore the Delta. "But DWR has no accountability to the Endangered Species Act — they’re grinding up fish."

The salmon also suffer from poor water quality, which environmentalists say is a consequence of the voluminous freshwater diversions. If the freshwater isn’t available to flush out the ecosystem, the negative effects of toxins and pollutants discharged into the Delta are amplified, and the water gets warmer, dirtier, and saltier. The ramifications of salmon decline can ripple along the food chain, putting even southern resident killer whales, which feed heavily on Sacramento River salmon in the ocean, at risk.

The impacts of freshwater diversions aren’t limited to the region’s ecology: delta agriculture is taking a hit, too. The construction of a peripheral canal would "destroy the estuary and shift economic problems from one geographic location to another," said Barrigan-Parrilla. "Agriculture in the southern delta would not make it." South delta farmers have already had to contend with increasing levels of salinity due to the massive freshwater diversions, she says. A homegrown bean festival held every year in Tracy has had to resort to purchasing beans, she told us, because it’s become too salty to grow them.

"The estimates are $10 to $40 billion to build a canal," Barrigan-Parrilla said with a note of disbelief. "We’re going to spend that much money on a project when we have just gutted education and welfare?"

As Sacramento lawmakers pull at the threads of this tightly-wound knot, looming uncertainties are waiting in the wings. For one, the delta’s network of 1,100 miles of earthen levees is under increasing strain due to its age, making it susceptible to failure. In fact, some say a peripheral canal could help prevent levee failure. Meanwhile, climate change is a challenge that can’t be ignored because it will affect overall water supply even as the state’s population continues to climb.

"The science makes it increasingly clear that the current system is unsustainable, Simitian said. The scientists are telling us there’s a two out of three chance that in the next 50 years the whole system will collapse, and that serves neither the delta well nor the two-thirds of the state that relies on delta water." Simitian doesn’t endorse the canal, but told us that the system of water conveyance needs to be changed.

Doug Obegi, staff attorney for the Natural Resources Defense Council, told us that thinking about water supply is just as important as thinking about how to move it around. He pointed out that some Colorado River dams just aren’t filling up anymore. If you build a new dam without managing the water supply, he said, "you have a big hunk of concrete that just isn’t doing anything."

Climate change will reduce the Sierra snowpack, an important natural reservoir, anywhere from 15 percent to 60 percent, according to the Department of Water Resources. The warmer air temperatures will also shift the runoff flows to earlier in the year, making major adjustments necessary. Climate change models also predict worsening drought. Water shortages worse than those caused by the 1977 drought could occur in one out of every six to eight years by 2050, and one out of every three to four years by 2100, according to the department’s study. The change in weather patterns will also increase the likelihood of floods.

Rising sea levels will also bring more saline ocean water into the delta, making it necessary to inject more freshwater into the system to maintain water quality and protect native species.

All told, climate change is expected to reduce overall delta water exports from 7 percent to 10 percent by 2050, and 21 percent to 25 percent by the end of the century — a heavy toll that can’t be managed without smarter water management.

Pending water shortages can be addressed in part with what NRDC calls California’s "virtual river," Obegi said, an aggressive system of water efficiency, waste-water recycling, groundwater cleanup and storm-water management that could yield a potential 7 million acre-feet per year.

As for agriculture, the 800-pound gorilla of water consumption in the state, there’s plenty of room for improvement. A report by the Pacific Institute estimates that annual agricultural water savings — with a combination of strategies like smarter irrigation management, modest crop shifting, and more efficient technology — could save up to 3.4 million acre-feet of water per year. The study strongly recommends avoiding expensive infrastructure projects that will burden taxpayers when the state has more budget-friendly options like targeted conservation and efficiency.

It won’t happen without the political will, however. During a discussion about the bills that are currently being debated in Sacramento, Barrigan-Parrilla said she fears the delta will lose out in the end. It’s hard for her to swallow the whole concept of "co-equal goals," she says, because it amounts to putting the environment, which is owned collectively, on equal footing with the interests of a small group of people who consume the vast amount of the state’s water supply.

"It just doesn’t make sense to me," she says. "You can’t have a reliable water supply unless you take care of the environment first."

Editor’s Notes

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Tredmond@sfbg.com

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

He has a different line on water.

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

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

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

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

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

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

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

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

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

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

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