Jobs

Saluting small business

0

> bruce@sfbg.com

  Back in my hometown of Rock Rapids, Iowa, a flat land of tall corn and homestead farms way out in northwest Iowa, my grandfather and father ran a small, family owned drug store for more than seven decades. Their slogan, known throughout the territory, was "Brugmann’s Drugs: Where drugs and gold are fairly sold, since l902."

   The town was then and still is about 2,800 in population, and we were miles away from the nearest cities of Sioux Falls, South Dakota, and Sioux City, Iowa. The merchants, and the farmers and townsfolk who patronized them, had to go it pretty much alone and depend on each other for economic sustenance.  The two Brugmann families bought shoes at Jensen’s and Hornseth’s shoe stores, purchased clothes that often didn’t quite fit at Bernstein’s department store, bought our groceries from Bob Bendinger and Tony Sieparda’s grocery stores, ate meals out at Jay’s and the Grill Café, banked at the Rock Rapids State Bank and later the Lyon County bank,  went to endless church suppers in town and in the country to support the local churches, hired Jim Wells to do our taxes, used both Doc Wubbena and Doc Cook, the town’s two doctors, and had our teeth done by Doc Lee and Doc Fisch.

   My dad, as the town pharmacist, would often get called at night, sometimes twice, to go down to the store and fill a prescription for one of the doctors tending a patient who needed emergency help. My wife’s father, who owned a lumberyard in Bennet, Nebraska, and later a hardware store in Le Mars, Iowa, followed the same routine. As did her grandfathers, one who founded banks in small towns in Nebraska and Kansas, another who ran a grocery store in Topeka, Kansas.

   I asked my grandfather and my dad why they went out of their way to do all these things in town and why I always got pulled along as Con Brugmann’s boy. "We want to keep our money working in town," they would reply. "That helps the store and that helps the town." I also asked why they put regular ads in the local Lyon County Reporter, run by Paul Smith as the fourth generation of the pioneering Smith family, when everybody already knew what the store offered in merchandise and service. "That’s the price of having a good local paper in town,” my dad would say.

   Significantly, Brugmann’s Drugs and our old store building have been transformed into the B and L café, a friendly oasis featuring yummy homemade pies and soups and a unique setting full of antique furniture. It is owned and operated by Beth and Lawrence Lupkes, a husband and wife team who work long and hard to keep the café going from dawn till dusk seven days a week. Their key to economic sustenance: they keep their “day” jobs, Beth as a dispatcher for the county’s emergency services, Lawrence as a rural mail carrier and mayor. Lawrence’s sister is the main cook and they press family members into service.

   When my wife Jean Dibble and I founded the Guardian in l966, we quickly found that the cooperative small business way of life that worked in little towns in Iowa and Nebraska and Kansas worked the same way in San Francisco with its tradition of neighborhoods and communities. Small business, we found, was not only the leading job generator and a key piece of the city’s urban fabric. Small business was critical to building sustainable local economies in San Francisco and most other cities. Jean and I like to think that the Brugmann and Dibble families have been continuously making small business contributions to our communities since l902.

   A long list of studies shows that small businesses keep more money circuutf8g in the local economy than big chains. The chain money is wired out of town every night—and chains are more likely to buy from other chains, in bulk, and thus rarely patronize other local businesses. So very little of the dollar you spend at a chain store stays in the community, which means its impact on the local economy is negligible. Money that stays in town creates more jobs, more business activity, a more stable economy and a larger tax base. Thankfully, no Wal-Mart came to the Rock Rapids area, but Wal-Mart came to several other Iowa communities with disastrous consequences to the downtowns and local tax bases of three towns and seven counties. Many other studies showed similar consequences in many other areas of the country.  (The Hometown Advantage, Big Box Economic Impact Studies from the Institute for Local Self Reliance. http://www.newrules.org/retail/econimpact)

    When academics and policy makers around the country are increasingly discussing ways that cities can be more self-reliant, work more with local resources and thus be both environmentally and economically stronger, they are talking about the value of small, locally owned, independent businesses.

    Economies are all subject to business cycles. If a city’s economy is dominated by a monocrop and or a few big companies, the entire economy suffers when they take a hit. Rock Rapids is tied to the farms and the weather.  Detroit’s fate is tied to the auto industry. If Microsoft and Boeing have blips, the impact is felt across Seattle. But a community with many different local businesses in many different niches is much more able to survive and even prosper in tough times.  After the l906 earthquake, it was the entrepreneurs and small businesses that lifted the city from the ashes. After the dot-com bust, it was again the small businesses and the entrepreneurs who are helping cushion the blow and leading the recovery.

    The bottom line is that the big chains see a community like San Francisco as a place to extract money from as quickly as possible, much like the strip miners in the Sierra. Small businesses see the city as a place to invest human capital to build real community—to join merchant groups, get involved in local politics, hire local kids, patronize other businesses, work to invigorate their neighborhoods, spread the gospel of shopping local. (See the San Francisco Locally Owned Merchants’ Alliance at http://www.sfloma.org/whylocal.com)

    Jean and I and the Guardian staff are happy to salute the small business community with our second annual Small Business Awards. Our congratulations to the winners, all working in their own way to transform San Francisco into a sustainable local economy. And our congratulations to the thousands of small business people in San Francisco, and the merchant groups behind them, who daily struggle valiantly against daunting odds to keep their businesses going, their neighborhoods vibrant, and San Francisco an incomparably great city.

     This year, we give special recognition to Arthur Jackson, who for almost four decades helped thousands of people get jobs in small, independent, locally owned businesses through his employment agency, Jackson Personnel Agency. He died on April l0 at     age 58 after a courageous fight against a series of illnesses including a kidney transplant.  He lived his favorite quote: “Putting people to work is a passion for me, because the paycheck fully empowers our community.” Arthur, as we all called him, won our diversity in small business award last year and his name will live on at the Guardian in the form of our annual Arthur Jackson diversity in small business award.

The right housing fees

0

EDITORIAL The San Francisco Chronicle has finally noticed what we reported a month ago: The Board of Supervisors has effectively put in place a moratorium on new market-rate housing on the east side of the city. We hear that city planners are looking for loopholes to undermine the temporary ban, but the intent of what the supervisors did is clear: Until there’s a detailed and valid review of how new high-end condos and lofts impact blue-collar jobs and low-income housing, the developers will have to let their demolition and excavation equipment idle.

Meanwhile, Sup. Chris Daly is moving to increase significantly the amount of low-cost housing that private developers have to build to win permission for future projects. Daly’s legislation is a good start and sets the right tone for the debate, but the board should go even further.

The Daly plan would apply to almost all new market-rate housing built anywhere in the city and would take effect whenever the moratorium ends. It would require most developers to offer 15 percent of the units of any project for less than market rates, and that number would jump to 25 percent if the affordable housing was built on another site. In other words, a builder who wants to put up 500 luxury condos in SoMa would have to build 125 affordable units somewhere else in the city.

That’s nice, but it’s not enough.

The city’s own general plan makes it clear that 72 percent of all new housing needs to be affordable to moderate- and low-income people. And the planning process for the eastern neighborhoods has still offered no proposals for how to make that happen.

At the same time, of course, the plans to intensely develop an area poorly served by transit and generally bereft of public infrastructure and open space utterly ignore the fact that it will cost hundreds of millions of dollars to create real neighborhoods (instead of clusters of heavily fortified, gated buildings).

Daly’s got the right idea: Developers are making a fortune building million-dollar condos in San Francisco, and they can well afford to give the city a whole lot back. But it’s worth taking a longer approach here and considering the price of bringing as many as 100,000 more people to SoMa, Potrero Hill, Dogpatch, the central waterfront, and BayviewHunters Point and figure out who is going to pay for it.

Daly could start by asking for a detailed independent study of what it really costs a developer to build new condo units in the city and what the current profit margins are. Then take the city’s affordable-housing needs, the need for public-sector development, and the estimated new tax revenue and compare: Can fair taxes and requirements on the developers raise enough money to meet the city’s needs?

And, if not, we get back to the question this paper has been asking for over a year: Why are we building any new market-rate housing, anyway? SFBG

 

Invisible minority

0

A new community-based research report on Pacific Islanders Tongans, Samoans, Hawaiians, Fijians, and other Polynesians reveals disproportionately high dropout, arrest, and depression rates among the population in Oakland.

In the 2000 to 2001 school year, for example, 47 Pacific Islander ninth graders were enrolled in the Oakland Unified School District. By the 2003 to 2004 school year, when those students would have been seniors, only 14 Pacific Islanders were enrolled in the 12th grade.

Pacific Islander youths also have the second-highest arrest rate in Alameda County and the highest arrest rate about 9 in 100 Pacific Islanders each year in San Francisco County, according to the Asian/Pacific Islander Youth Violence Prevention Center.

Often grouped under the larger Asian and Pacific Islander category, Pacific Islanders’ experiences are overshadowed by larger groups like Chinese and Japanese Americans.

"We’re invisible," Penina Ava Taesali, a researcher of the report, told the Guardian. "All we have is anecdotal data on issues. In every segment of the government city, county, state, and federal there’s no data."

Taesali, who is the artistic director of Asian/Pacific Islander Youth Promoting Advocacy and Leadership, said that when she first began working for AYPAL eight years ago, she expected to see a program for Pacific Islander youths and was surprised to see none. She helped create the youth program Pacific Islander Kie Association (PIKA) in 2001.

She is among those now trying to figure out why this relatively small cultural group is having such disproportionate problems and how they might be solved.

Culture Clash

The first wave of immigration from the Pacific Islands came after World War II. During the war many Pacific Islands, including Hawaii, Tonga, and Samoa, were occupied by US troops. Previous to that, many Pacific Islands were colonized by Europeans.

After the United States loosened its immigration policies in 1965, more and more Pacific Islanders moved to the US, as well as to New Zealand, Australia, and Canada. First men, then women, moved abroad for better jobs to send remittance back to the islands. Between 1980 and 1990, the US population of Tongans rose 58 percent.

When the 2000 US census was released, many were also surprised to learn that there are more Pacific Islanders living in California than in Hawaii: 116,961 compared with 113,539. The Bay Area including Oakland, San Francisco, and San Mateo is home to 36,317 Pacific Islanders.

Now a new generation of Pacific Islander Americans is growing up and learning to navigate family, school, and church but many are feeling alienated from all three social structures.

"A lot of times, within Pacific Islander families, the children are very much seen but not heard," Venus Mesui, a community liaison at Life Academy and Media Academy high schools in Oakland, said. "They’re not really able to express themselves at school or at home. Depression comes along with that, because they don’t have the know-how to express themselves in a positive manner. They don’t have a space, or they don’t feel safe, to voice their opinions."

The report also revealed that several youths who were interviewed said domestic violence and corporal punishment occurred within their families.

Pelenatita "Tita" Olosoni, 18, told us she wished more parents would visit the schools to see what’s really going on.

"Parents think school out here is easier than back on the islands," Olosoni said. "It would be helpful if they took time off from work to see what kids are going through every day."

According to Mesui, parents need to be trained in how to support their children, particularly if they attend underperforming schools.

"I know all of the parents want their kids to succeed, but unfortunately, older siblings are asked to take care of the younger ones, and this doesn’t prepare them with good habits that will make them successful in school," Mesui, who is Hawaiian, said.

Olosoni said she and other Pacific Islander students have had to stay home and miss weeks of school to take care of their younger siblings and cousins.

Christopher Pulu, a 15-year-old freshman at Oakland High whose father is a landscaper, said, "That’s what the majority of our fathers do." Most Pacific Islanders in the US are laborers, and 32 percent live below the national poverty level, according to 2000 US census data.

"They always need an extra hand," Olosoni told us. "So the boys will drop school and see it as an easy way to make money and work with their dads."

"Big-boned and heavy-handed"

Like many minority groups, Pacific Islanders suffer from stereotypes. The prevalent minority myth that all Asians (though most Pacific Islanders do not consider themselves Asian) do well in school actually hurts groups like Pacific Islanders, Cambodians, and Hmong, according to Andrew Barlow, a sociology professor at UC Berkeley and Diablo Valley College.

"Most people say we’re big-boned and heavy-handed," Olosoni said. "When Tongans get in trouble, the whole Tongan crew gets in trouble."

Olosoni remembers the day she, her sister, and three friends were called into the principal’s office after a lunchtime fight at Castlemont High School in East Oakland. The security guard called another guard on his walkie-talkie and said, "Gather all the Tongans in the office," Olosoni recalls.

"I was like, ‘No, they didn’t go there,’" she told us. "It was just the five of us involved in the fight, but they called in all the Tongans." After the fight, the five Polynesian girls were given a one-week suspension.

Because Pacific Islander youths only make up 1.2 percent of a district’s population, they are usually a small but visible group within each school. While security guards may not be able to call "all Latinos" to the office, for example, they can do so with a smaller population like Tongans, Barlow said. He said that being so easily targeted increases solidarity within the community but may also lead to insularity and even more stereotyping.

"When people are denied opportunities and when they’re treated unequally, the way they’re going to deal with that is increasing reliance on their community and increasing ethnic solidarity," he said.

Barlow, who teaches courses on race and ethnicity, told us stereotypes are just a part of the problem. Larger systemic issues such as the economy, access to jobs, and educational role models are just as crucial.

"Tongans are already coming into American society with a lot of problems caused by colonialism," Barlow says. "If you don’t have access to a very wealthy school district, if you don’t know people who have access to good jobs, if you don’t have a high degree of education, then you’re in trouble."

A New Generation

Pulu said he hopes to be the first in his family to attend and graduate from college. He has received at least a 3.5 grade point average every semester and attends church regularly.

At the beginning of the school year, his multicultural education teacher asked him to go to the front of the class and point out Tonga on a world map.

"It doesn’t stand out," Pulu said. He is energetic and enthusiastic and doesn’t mind educating others about his culture. "Most people think it’s a part of Hawaii."

Mesui said Pacific Islanders have come a long way. Though the report focuses on a lot of struggles, Mesui said that she has personally seen increasing numbers of Pacific Islanders graduate from high school and go on to college, including her three children.

She believes schools should address the issue of youths who don’t have support at home.

"When they’re not in school, they’re doing something else," Mesui said. "The majority of the arrests are due to them not going to school and getting in trouble on the streets. And I think it falls on the school we’re not doing something to keep them here."

Olosoni said she knows of 3 Tongan youths in the last school year who were kicked out of Castlemont out of about 15 Pacific Islander students in the school for cutting class.

"It comes from the lack of them getting help from people of their own kind to help them understand things better," Olosoni said. She is now attending adult school and working on her GED.

Over the years Taesali has pushed for more programming in the community. PIKA now has about 40 youths who meet every Tuesday afternoon at an Oakland high school.

"If we got more Pacific Islander staff and teachers, there would be immediate results," Taesali said. "I have no doubt about it."

Taesali sees Pacific Islander students engaged when they learn about their own culture.

"Every time we’ve done workshops on Pacific Islander history and culture, [the students] just don’t want to leave," she said. "They are so happy to be learning about their culture." SFBG

Danger! Danger!

0

Dear Andrea:

Being in my second trimester, I’ve read volumes about the so-called danger of air embolisms caused by blowing air into the vagina during oral sex. Now, I can’t imagine I’m part of an elite few who have had the somewhat embarrassing, occasional “vaginal farts” during or after sex. What do you suppose is the risk of the infamous air embolism occurring from simply getting air forced into the vagina from your basic act of intercourse?

Love,
Airy Mary

Dear Mary:

I’ve actually looked into this subject some while in the process of putting together a talk on all the horrible things that can happen to you while having what you thought would be nice, normal, even salubrious sex. You can break your penis or someone else’s penis! You can burst a previously unsuspected ovarian cyst! You can well, never mind. You can do all sorts of horrible things to yourself or someone you are quite fond of, but chances are, you won’t.

A few years after essentially pooh-poohing the embolism issue (“Don’t sit on an air compressor,” I believe I wrote), I had the opportunity to interview and then work with Dr. Charles Moser, the unchallenged expert on how to avoid killing yourself or others in the pursuit of sexual gratification, and he succeeded in convincing me that air embolisms really are a potential danger, even (occasionally) in nonpregnant women. But not even the good doctor suggested that intercourse was likely to cause one, except in certain very specific circumstances that we will get to shortly. A quick review of the literature turns up many articles on air embolisms due to (poorly executed, one assumes) oral sex, although the cases themselves are pretty scarce and often not fatal. You get to go to the hyperbaric chamber, like Michael Jackson!

Since “vaginal farts” are caused by air pumped into the vagina during intercourse, not, heaven forfend, into the uterus, there is likely no correlation whatsoever between your propensity for producing them and any possible danger to you or your fetus. The air has to get into your bloodstream, and the most likely route for that would be through the (open) cervix into a (possibly damaged) uterus. You will, of course, have had a thorough exam, including an ultrasound, to clear you for any cervical or placental abnormalities, before taking my word on anything like this. If you haven’t, we are not having this conversation.

Now, those few fatalities. They were mostly due to intercourse too soon after delivery, a thought that makes me cringe anyway, although I have spoken to women who felt ready to go as soon as the doctor cleared them for takeoff. Doctor and cleared would be the operant words there.

Love,
Andrea

Dear Andrea:

My girlfriend and I always have sex with a condom, and only when she is on birth control, to play it extra-safe. Recently, however, she’s been noticing the antiabortion displays that show up on our college campus sometimes. She now refuses to have sex, because she is so freaked out about becoming pregnant and needing to have an abortion, and she talks about seriously never having sex again because of it. I obviously want to talk to her about this and reassure her, but everything I say, no matter how understanding, makes her think I’m just trying to persuade her into giving me sex. How should I help her calm down about this situation?

Love,
Out in the cold

Dear Cold:

You realize your girlfriend’s reaction is way out of the norm, right? That is to say (not that I recommend putting it this way when you do have that conversation), she’s gone a little off-plumb, at least where her risk assessment abilities or lack thereof come into play. Or was she always a little nutty on this topic, as evidenced by the doubling-up of pill plus condoms, which is borderline nutso overkill for birth control purposes (although perfectly rational for disease prophylaxis)?

Look, I have walked through those antiabortion displays. Quite recently I arrived at the restaurant where I was meeting my husband a little pale and shaky from having to walk through two rows of giant, dismembered-fetus posters. They were stationed outside of what I believe was an obstetrician’s convention, and I confess I could neither eat nor engage in small talk until the ghastly images, mixed with my anger at the fact that these assaultive theatrics were aimed at doctors who provide essential health care to women, had faded. But, dude, I got my groove back. There is something going on with your girlfriend that cannot easily be laid at the feet of the antichoice brigade, not that it wouldn’t give me great pleasure to heap blame upon them.

Suggest that your girlfriend go see a nurse practitioner or someone who can calmly walk her through the actual risks (essentially nonexistent) of condom-wrapped, hormonally blocked intercourse. If that plus taking a different route across campus when the crazies are afoot don’t work, well, I hope you like blow jobs. I hear they’re quite popular.

Love,
Andrea

Andrea Nemerson has spent the last 14 years as a sex educator and an instructor of sex educators. In her former life, she was a prop designer. Visit www.altsexcolumn.com to view her previous columns.

The condo war continues

0

EDITORIAL The San Francisco Planning Department is having a little trouble dealing with the fact that for the moment no more condo developers can build high-priced units in the eastern neighborhoods. In the wake of a Board of Supervisors decision demanding an extensive environmental review of a condo project at 2660 Harrison St., planners have been ducking and weaving around the reality that the supervisors have effectively put a moratorium on market-rate housing projects and on anything else that could displace blue-<\h>collar jobs (see “A Grinding Halt,” 3/22/06).

The latest installment is a March 31 memo from Paul Maltzer, the department’s chief environmental review officer, who concluded that yes, indeed, all developments in the vast eastern neighborhoods project area that could affect affordable housing or jobs would need detailed environmental review. That’s an admission, of sorts, that no more market-<\h>rate housing can be quickly approved, but it comes with a caveat: The memo states that projects will be evaluated on a "case-by-case basis" and leaves an awful lot of wiggle room. It also suggests that as soon as the city’s official broad-based environmental impact report on the eastern neighborhoods rezoning is completed, the floodgates will be opened again.

That EIR is on the fast track: Maltzer projects that a draft will be completed by late this summer and a final report by March 2007. But there’s a huge problem: An EIR has to evaluate a specific project, and the "project" a rezoning of some 3,800 acres of the city is pretty damn vague at this point. For example, there’s nothing about affordable housing in the scope of work that was put forward for the EIR.

So it’s entirely possible that the Planning Department will produce a report next spring that glosses over the biggest issues surrounding the future of the eastern neighborhoods and that developers will use it as a green light to begin a new building boom that will forever change the city.

We’d like to hold a few facts to be self-<\h>evident: San Francisco doesn’t need more million-<\h>dollar condos for young single people who work in Silicon Valley. The city can’t build the equivalent of another good-size town, with a population of perhaps 100,000 new residents, in eastern San Francisco without massive improvements in infrastructure, particularly transportation. The costs of the new streets, bus lines, train lines, and pedestrian walkways will run into the hundreds of millions of dollars and there’s nothing anywhere in any Planning Department document about who will pay for it.

And there’s nothing in the current proposals for the eastern neighborhoods that’s consistent with the housing element of the city’s own general plan.

The housing element is clear: San Francisco needs a lot of new below-<\h>market housing housing for families with kids, housing for people who work in the city and make moderate wages, housing for people living on fixed (and not gigantic) incomes. Housing for teachers and firefighters. Housing for the people who change the sheets at the hotels and clean the bathrooms at the convention centers that keep the city’s biggest industry thriving. In fact, it says, 40 percent of all new housing needs to be affordable for low- and very-low-<\h>income people, and another 32 percent needs to be affordable for families with moderate incomes. That kind of housing simply won’t be built under the current plans and that means any EIR the planners (or any private developers) prepare will be fundamentally flawed.

There’s a solution here, and if the Planning Commission won’t demand it, then the supervisors must: Any final EIR on the eastern neighborhoods has to consider not only the current rezoning plans but also an alternative that would bring the city into compliance with its own general plan. Asking planners to comply with their own plans shouldn’t be a radical notion. And until the Planning Department can explain how that might happen, this entire process and all new market-<\h>rate housing needs to be on hold, indefinitely.

{Empty title}

0

So let’s get this straight:

The lieutenant governor is running for insurance commissioner. The insurance commissioner is running for lieutenant governor. The former governor is running for attorney general. The attorney general is running for treasurer.

Round and round and round we spin. Talk about a clusterfuck.

There was a time, and it wasn’t all that long ago, when every single constitutional office in California was held by a Democrat. And it’s entirely possible that this fall — with the Republican president and Republican governor in political free fall — the Democrats will actually lose some top jobs in Sacramento.

Let me humbly suggest one reason why: We have a bunch of people running for office who really ought to find something else to do with their lives.

I’m not the only one who thinks this. If you talk to people who think about the future of the California Democratic Party — people who might actually play a role in it, say, 10 years from now — what you hear is this: Why are the same old names bouncing around like petrified Ping-Pong balls?

John Garamendi has been running for some office or other (including unsuccessfully for governor) for the past 20 years. He’s been insurance commissioner twice. Now, since he clearly can’t get the top job, he’s angling for number two.

Cruz Bustamante has virtually disappeared since he dared run in the recall election that brought Arnold Schwarzenegger to power. Perhaps he can slip into Garamendi’s post for a while, while he figures out what else to do. Bill Lockyer thought about running for governor but realized he wasn’t going to win, and although he’s not a terrible attorney general, he’s decided to run for treasurer, which makes no sense unless he’s waiting around to try another office at some point.

Jerry Brown was governor once, and after a period of self-imposed exile, he decided to run for president (of the United States), then mayor of Oakland. By the way, he’s a lawyer, so now he wants to be attorney general.

None of these people is evil, and the state could do worse — way worse — than electing any of them. But is anyone else getting the distinct feeling that we’re the party of, well, yesterday?

Just thought I’d ask.

One of my favorite political movies is Robocop, the 1987 Paul Verhoeven sci-fi film that is not generally considered a great social statement about anything. But when you pay attention (and watch it with the right, um, mind-set), Robocop is actually a story about privatization: Detroit has turned over its police force to the Omni Consumer Products Corporation, which decides to save money (for the company’s bottom line) by cutting staff and squeezing pay — to the point where there’s inadequate backup when our hero gets into a firefight with the bad guys and almost gets shot to bits. They revive him as a cyborg, and he tries to be an honest cop — but deep in his electronic DNA is a rule that he can’t arrest or harm any officer of the Omni Consumer Products Corporation.

I thought about that when I heard that the patrol specials — a crew of private armed civilians who wear uniforms and badges and walk the streets under a 19th-century tradition — was asking for expanded authority in San Francisco (see page 5). The message that the group recently sent to the Police Commission: Privatization is the wave of the future in urban law enforcement.

Yikes. *

Transjobless

0

tali@sfbg.com

In the transgender community, to have full-time work is to be in the minority. In fact, a new survey of 194 trans people conducted by the Transgender Law Center (TLC), with support from the Guardian, found that only one out of every four respondents has a full-time job. Another 16 percent work part-time.

What’s more, 59 percent of respondents reported an annual salary of less than $15,333. Only 4 percent reported making more than $61,200, which is about the median income in the Bay Area.

In other words, more than half of local transgender people live in poverty, and 96 percent earn less than the median income. Perhaps it shouldn’t be surprising that 40 percent of those surveyed don’t even have a bank account.

TLC doesn’t claim the study is strictly scientific — all respondents were identified through trans organizations or outreach workers. But the data give a fairly good picture of how hard it is for transgender people to find and keep decent jobs, even in the city that is supposed to be most accepting of them.

It’s been more than a decade since San Francisco expanded local nondiscrimination laws to cover trans people, but transphobic discrimination remains rampant. Fifty-seven percent of survey respondents said they’ve experienced some form of employment discrimination.

And interviews show that job woes are hardly straightforward.

Navigating the job-application process after a gender transition can be extraordinarily difficult. Trans people run up against fairly entrenched biases about what kind of work they’re suited for. Sometimes those who are lucky enough to find work can’t tolerate insensitive, or even abusive, coworkers.

Marilyn Robinson turned tricks for almost 20 years before she decided to look for legal employment. She got her GED and, eventually, a job at an insurance company. The first six months went OK, but then a supervisor "thought he had the right to call me RuPaul," she told us. "And I look nothing like RuPaul." Suddenly the women in the office refused to use the bathroom if Robinson was around. She left within a month.

Once again, Robinson was on the job hunt. She interviewed for a receptionist position, and thought it went well. But on her way out, she saw the interviewer toss her application into the trash with a giggle.

"The reality is, even a hoagie shop in the Castro — they might not hire you," she said.

Still, many activists say the increased attention being paid to trans employment issues is promising.

Cecelia Chung from the Transgender Law Center told us there’s a "silver lining" in the effort the "community is putting into really changing the playing field. We’re in a really different place than we were five years ago."

Activists say true progress will require broad education efforts and the cooperation of business owners throughout the Bay Area. But the project is well under way, with San Francisco Transgender Empowerment, Advocacy and Mentorship, a trans collaborative, hosting its second annual Transgender Job Fair March 22. More than a dozen employers have signed up for the fair, including UCSF, Goodwill Industries, and Bank of America.

HURDLES

Imagine trying to find a job with no references from previous employers. Now envision how it might feel to have interviewer after interviewer look at you askance — or even ask if you’ve had surgery on a fairly private part of your body.

These are just a couple of the predicaments trans job-seekers face.

Kenneth Stram runs the Economic Development Office at the San Francisco LGBT Community Center. "In San Francisco there are the best intentions," he told us. "But when you scratch the surface, there are all these procedural hurdles that need to be addressed." As examples, he pointed to job-training classes where fellow students may act hostile, or arduous application processes.

Giving a prospective employer a reference may seem like a fairly straightforward task, but what if your old employer knew an employee of a different gender? Do you call the old boss and announce your new identity? Even if he or she is supportive, experience can be hard to erase. Will the manager who worked with Jim be able to speak convincingly about Jeanine? And what about your work history — should you eliminate the jobs where you were known as a different gender?

Most trans people can’t make it through the application process without either outing themselves or lying.

Marcus Arana decided to face this issue head-on and wrote about his transition from living as a woman to living as a man in his cover letter.

"It became a matter of curiosity," Arana told us. "I would have employers ask about my surgical status."

It took him a year and a half to find a job. Fortunately, it’s one he loves. Arana investigates most complaints of gender identity–related discrimination that are made to San Francisco’s city government. (Another investigator handles housing-oriented complaints.)

When he started his job, in 2000, about three quarters of the complaints Arana saw were related to public accommodations — a transwoman had been refused service at a restaurant, say, or a bank employee had given a cross-dressing man grief about the gender listed on his driver’s license.

Today, Arana told us, at least half of the cases he looks into are work-related — something he attributes to both progress in accommodations issues and stagnation on the job front.

TG workers, he said, confront two common problems: resistance to a changed name or pronoun preference and controversy over which bathroom they use.

The name and pronoun problems can often be addressed through sensitivity training, though Arana said that even in the Bay Area, it’s not unheard of for some coworkers to simply refuse to alter how they refer to a trans colleague.

Nine out of ten bathroom issues concern male-to-female trans folk — despite the fact that the police department has never gotten a single report of a transwoman harassing another person in a bathroom. One complaint Arana investigated involved a woman sticking a compact mirror under a bathroom stall in an effort to see her trans coworker’s genitalia.

But a hostile workplace is more often made up of dozens of subtle discomforts rather than a single drama-filled incident.

Robinson told us the constant whispering of "is that a man?" can make an otherwise decent job intolerable: "It’s why most of the girls — and I will speak for myself — are prostitutes. Because it’s easier."

The second and third most common forms of work-related discrimination cited by respondents in the TLC survey were sexual harassment and verbal harassment.

But only 12 percent of those who reported discrimination also filed some kind of formal complaint. That may be because of the widespread feeling that doing so can make it that much harder to keep a job — or find another one. Mara Keisling, director of the National Center for Transgender Equality, in Washington, DC, said that "it’s a common understanding within the transgender community that when you lose your job, you generally lose your career."

ANOTHER KIND OF GLASS CEILING

Most of the trans people we spoke to expressed resentment at being tracked into certain jobs — usually related to health care or government.

Part of that is because public entities have been quicker to adopt nondiscriminatory policies. San Francisco city government created a splash in 2001 when it granted trans employees access to full health benefits, including sex-reassignment surgery. The University of California followed suit last year.

But it’s also because of deeply ingrained prejudices about what kind of work transgender people are suited to.

Claudia Cabrera was born in Guatemala but fled to the Bay Area in 2000 to get away from the constant insults and occasional violence that befell her. Despite her education in electrical engineering and business and 13 years of tech work, it was difficult for her to find a job — even after she was granted political asylum. In 2002 a local nonprofit she had originally turned to for help offered her a position doing outreach within the queer community.

Cabrera doesn’t make much money, and she sends some of it back to her two kids in Guatemala. But that’s not the only reason she would like another job. She wants to have broader responsibilities and to employ her tech savvy.

"There is a stereotype here in San Francisco [that] transgender folk are only good for doing HIV work — or just outreach in general," she said.

Whenever she’s gotten an interview for another kind of job, she’s been told she is overqualified. Does she believe that’s why she hasn’t been hired? "No," she laughed. But she also acknowledged, "Even though there is discrimination going on here, this is the safest city for me to be in."

Cabrera is now on the board of TLC and is working to create more job opportunities for herself and others in the trans community. She often repeats this mantra: "As a transsexual woman, I am not asking for anything that doesn’t belong to me. I am demanding my rights to live as a human being." *

TRANSGENDER JOB FAIR

March 22

1–4 p.m.

SF LGBT Community Center, Ceremonial Room

1800 Market, SF

(415) 865-5555

www.sfcenter.org

www.transgenderlawcenter.org

www.sfteam.org

Behind and beyond bars

0

Perhaps the best book written about a wrongly convicted man is Jack Olsen’s Last Man Standing, a chronicle of the 27 years Geronimo Ji-Jaga Pratt spent caged in a California prison thanks to crooked FBI agents and Los Angeles cops. The narrative starts with Pratt’s childhood in Louisiana, tracks his involvement in the Black Panther party and the decades he spent dwelling in the American gulag, and concludes with his triumphant release from prison thanks to the tireless lawyering of Stuart Hanlon and the late Johnnie Cochran. It’s a fucking amazing read – meticulously researched yet hyper-engrossing, torturous and ultimately uplifting.

But I’ve always had the nagging sensation that Olsen terminated his book at the perfect moment: before the homecoming euphoria wore off and the challenges and mundanity of day-to-day life set in. Can a person truly get on with his or her life when the authorities have stolen the vast bulk of it?

It’s the sort of question the makers of the documentary After Innocence put to eight men who were wrongfully sent to prison. The answers are, as a whole, tear-inducing – most of the men are grappling only semi-successfully with a callous world that’s done little to make them whole. Prison, as one man says, "breaks down your soul. It breaks down everything about you. It takes your manhood. It takes your pride. It takes your decency."

They find themselves struggling with the basics. They have trouble building lasting relationships with lovers. They have trouble finding jobs – how do you explain a 10- or 20-year blank spot on your résumé?

And at times they have trouble simply experiencing emotions. In what you’d expect to be an emotional highpoint, the film documents the release of Wilton Dedge, who is freed from a Florida prison after wrongly serving 22 years for sexual battery and burglary. But on his big day, Dedge looks uneasy and half-zombiefied, as if his decades in the joint have simply siphoned the life from him. It’s perhaps the most telling scene in a film filled with potent vignettes.

While tremendously powerful, After Innocence isn’t flawless. At times the movie is a little talking head-ish, telling viewers what they should think rather than letting them witness the stumblings and successes of the exonerated men. Overall, though, it’s a remarkable work – and one that deserves the widest audience possible. (A.C. Thompson)

AFTER INNOCENCE  Opens Fri/20  Lumiere Theatre  (415) 267-4893  Act 1 & 2  (510) 464-5980  Showtimes at www.sfbg.com  www.landmarktheatres.com  www.afterinnocence.com

The political puppeteer

0

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

The political puppeteer

0

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

SF’s economic future

0

Sometime early this spring, while most of Washington, D.C. was watching the cherry trees bloom and thinking about the impending Iran-contra hearings, a few senior administration officials began discussing a plan to help domestic steel companies shut down underutilized plants by subsidizing some of the huge costs of pension plans for the workers who would be laid off.

The officials, mostly from the Departments of Labor and Commerce, saw the plan as a pragmatic approach to a pressing economic problem. With the steel industry in serious trouble, they argued, plant closures are inevitable — and since the federal government guarantees private pension plans, some companies will simply declare bankruptcy and dump the full liability on the taxpayers. Subsidies, they argued, would be a far cheaper alternative.

But the plan elicited sharp opposition from members of the Council of Economic Advisors, who acknowledged the extent of the problem but said the proposal was inconsistent with the Reagan economic philosophy. The problem, The New York Times reported, was that “such a plan would be tantamount to an industrial policy, an approach the president has long opposed.”

For aspiring conservative politicians, the incident contained a clear message, one that may well affect the terms of the 1988 Republican presidential debate. To the right-wing thinkers who control the party’s economic agenda, the concept of a national industrial policy is still officially off-limits. In San Francisco, the ground rules are very different. All four major mayoral candidates agree that the city needs to plan for its economic future and play a firm, even aggressive role in guiding the local economy. The incumbent, Dianne Feinstein, has established a clear, highly visible — and often controversial — industrial development policy, against which the contenders could easily compare and contrast their own programs.

The mayoral race is taking place at a time when the city is undergoing tremendous economic upheaval. The giant corporations that once anchored the local economy are curtailing expansion plans, moving to the suburbs and in many cases cutting thousands of jobs from the payroll. The once-healthy municipal budget surplus is gone. The infrastructure is crumbling and city services are stressed to the breaking point.

By all rights, the people who seek to lead the city into the 1990s should present San Francisco voters with a detailed vision for the city’s economic future, and a well-developed set of policy alternatives to carry that vision out.

But with the election just three months away, that simply isn’t happening. Generally speaking, for all the serious talk of economic policy we’ve seen thus far, most of the candidates — and nearly all the reporters who cover them — might as well be sniffing cherry blossoms in Ronald Reagan’s Washington.

“San Francisco’s major challenge during the next 15 years will be to regain its stature as a national and international headquarters city. This is crucial to the city because much of its economy is tied to large and medium-sized corporations….The major source of San Francisco’s economic strength is visible in its dramatic skyline of highrise office buildings.”

—San Francisco: Its economic future

Wells Fargo Bank, June 1987

“In San Francisco, you have the phenomenon of a city losing its big-business base and its international pretensions — and getting rich in the process.”

—Joel Kotkin, Inc. Magazine, April 1987

[

]

IN MUCH OF San Francisco’s news media and political and business establishment these days, the debate — or more often, lament — starts with this premise: San Francisco is in a bitter competition with Los Angeles. At stake is the title of financial and cultural headquarters for the Western United States, the right to be called the Gateway to the Pacific Rim. And San Francisco is losing.

The premise is hard to deny. If, indeed, the two cities are fighting for that prize, San Francisco has very nearly been knocked out of the ring. Just a few short years ago, San Francisco’s Bank of America was the largest banking institution in the nation. Now, it’s third — and faltering. Last year, First Interstate — a firm from L.A. — very nearly seized control of the the company that occupies the tallest building in San Francisco. The same problems have, to a greater or lesser extent, beset the city’s other leading financial institutions. A decade ago, San Francisco was the undisputed financial center of the West Coast; today, Los Angeles banks control twice the assets of banks in San Francisco.

It doesn’t stop there. Los Angeles has a world-class modern art museum; San Francisco’s is stumbling along. The Port of San Francisco used to control almost all of the Northern California shipping trade; now it’s not even number one in the Bay Area (Oakland is). Looking for the top-rated theater and dance community west of the Rockies? San Francisco doesn’t have it; try Seattle.

Even the federal government is following the trend. A new federal building is planned for the Bay Area, but not for San Francisco. The building — and hundreds of government jobs — are going to Oakland.

In terms of a civic metaphor, consider what happened to the rock-and-roll museum. San Francisco, the birthplace of much of the country’s best and most important rock music, made a serious pitch for the museum. It went to Cleveland.

For almost 40 years — since the end of World War II — San Francisco’s political and business leaders have been hell-bent on building the Manhattan Island of the West on 49 square miles of land on the tip of the Peninsula. Downtown San Francisco was to be Wall Street of the Pacific Rim. San Mateo, Marin and the East Bay would be the suburbs, the bedroom communities for the executives and support workers who would work in tall buildings from nine to five, then head home for the evening on the bridges, freeways and an electric rail system.

If the idea was to make a few business executives, developers and real estate speculators very rich, the scheme worked well. If the idea was to build a sound, firm and lasting economic base for the city of San Francisco, one could certainly argue that it has failed.

[

]

NOT EVERYONE, however, accepts that argument. Wells Fargo’s chief economist, Joseph Wahed, freely admits he is “a die-hard optimist.” San Francisco, he agrees, has taken its share of punches. But the city’s economy is still very much on its feet, Wahed says; he’s not by any means ready to throw in the towel.

Wahed, who authored the bank’s recent report on the city’s economic future, points to some important — and undeniable — signs of vitality:

* San Francisco’s economic growth has been well above both the national and state average during the 1980s — a healthy 3.67 a year.

* Per-capita income in San Francisco is $21,000 a year, the highest of any of the nation’s 50 largest cities.

* New business starts in the city outpaced business failures by a ratio of 5-1, far better than the rest of the nation. * Unemployment in San Francisco, at 5.57, remains below national and statewide levels (see charts).

San Francisco, Wahed predicts, has a rosy economic future — as long as the city doesn’t throw up any more “obstacles to growth” — like Proposition M, the 1986 ballot measure that limits office development in the city to 475,000 square feet a year.

John Jacobs, the executive director of the San Francisco Chamber of Commerce, came to the same conclusion. In the Chamber’s annual report, issued in January, 1987, Jacobs wrote: “The year 1986 has been an amusing one, with both national and local journalists attempting to compare the incomparable — San Francisco and Los Angeles — and suggesting that somehow San Francisco is losing out in this artificially manufactured competition. Search as one might, no facts can be found to justify that assertion.”

Wahed and Jacobs have more in common than their optimism. Both seem to accept as more or less given the concept of San Francisco as the West Coast Manhattan.

Since the day Mayor Dianne Feinstein took office, she has run the city using essentially the policies and approach championed by Wahed and Jacobs. Before San Franciscans rush to elect a new mayor, they should examine those strategies to see if they make any sense. After nearly a decade under Feinstein’s leadership, is San Francisco a healthy city holding its own through a minor downturn or an economic disaster area? Are San Francisco’s economic problems purely the result of national and international factors, or has the Pacific Rim/West Coast Wall Street strategy failed? Is the economy weathering the storm because of the mayor’s policies, or despite them? And perhaps more important, will Feinstein’s policies guide the city to new and greater prosperity in the changing economy of the next decade? Or is a significant change long overdue?

The questions are clear and obvious. The answers take a bit more work.

[

]

SAN FRANCISCO’S economy is an immensely complex creature, and no single study or analysis can capture the full range of its problems and potential. But after considerable research, we’ve come to a very different conclusion than the leading sages of the city’s business community. Yes, San Francisco can have a rosy economic future — if we stop pursuing the failed policies of the past, cut our losses now and begin developing a new economic development program, one based on reality, not images — and one that will benefit a broad range of San Franciscans, not just a handful of big corporations and investors.

Our analysis of San Francisco’s economy starts at the bottom. Wells Fargo, PG&E and the Chamber see the city first and foremost as a place to do business, a market for goods and a source of labor. We see it as a community, a place where people live and work, eat and drink, shop and play.

The distinction is far more than academic. When you look at San Francisco the way Wells Fargo does, you see a booming market: 745,000 people who will spend roughly $19.1 billion on goods and services this year, up from $15.4 billion in 1980. By the year 2000, Wahed projects, that market could reach $229 billion as the population climbs to 800,000 and per-capita income hits $30,000 (in 1986 dollars), up from $18,811 in 1980. Employment has grown from 563,000 in 1980 to 569,000 in 1986. When you look at San Francisco as a place to live, you see a very different story. Perhaps more people are working in San Francisco — but fewer and fewer of them are San Franciscans. In 1970, 57.47 of the jobs in San Francisco were held by city residents, City Planning Department figures show. By 1980, that number had dropped to 50.77. Although more recent figures aren’t available, it’s almost certainly below 507 today.

Taken from a slightly different perspective, in 1970, 89.17 of the working people in San Francisco worked in the city. Ten years later, only 857 worked in the city; the rest had found jobs elsewhere.

Without question, an increase in per capita income signifies that the city is a better market. It also suggests, however, that thousands of low-income San Franciscans — those who have neither the skills nor the training for high-paying jobs — have been forced to leave the city. It comes as no surprise, for example that San Francisco is the only major city in the country to post a net loss in black residents over the past 15 years.

The displacement of lower-income residents highlights a key area in which San Francisco’s economy is badly deficient: housing. San Francisco’s housing stock simply has not kept pace with the population growth of the past five years. Between 1980 and 1984, while nearly 40,000 more people took up residence in the city, only 3,000 additional housing units were built.

Some of the new residents were immigrants who, lacking resources and glad to be in the country on any terms, crowded in large numbers into tiny apartments. Some were young, single adults, who took over apartments, homes and flats, bringing five of six people into places that once held families of three or four.

But overall, the impact of the population increase has been to place enormous pressure on the limited housing stock. Prices, not surprisingly, have soared. According to a 1985 study prepared for San Franciscans for Reasonable Growth by Sedway Cooke and Associates, the median rent for a one-bedroom apartment in 1985 was $700 a month. The residential vacancy rate was less than 17.

Housing is more than a social issue. A report released this spring by the Association of Bay Area Governments warns the entire Bay Area may face a severe housing crisis within the next two decades — and the lack of affordable housing may discourage new businesses from opening and drive existing ones away. When housing becomes too expensive, the report states, the wages employers have to pay to offset housing and transportation costs make the area an undesirable place to do business.

[

]

WAHED’S WELLS FARGO report shows a modest net employment gain in San Francisco between 1980 and 1986, from 563,000 jobs to 569,000. What the study doesn’t show is that the positive job growth statistic reflects the choice of the study period more than it reflects current trends. In the late 1970s and early 1980s, San Francisco experienced considerable job growth. By 1981, that trend was beginning to reverse.

According to a study by Massachusetts Institute of Technology researcher David Birch, San Francisco actually lost some 6,000 jobs between 1981 and 1985. The study, commissioned by the Bay Guardian, showed that the decline occurred overwhelmingly to large downtown corporations — the firms upon which the Pacific Rim strategy was and is centered. Since 1981, those firms have cost the city thousands of jobs. (See The Monsters that Ate 10,000 jobs, Bay Guardian DATE TKTKTK).

Some of the firms — B of A, for example — were victims of poor management. Some, like Southern Pacific, were caught in the merger mania of the Reagan years. Others, however, simply moved out of town. And no new giants moved in to take their places.

What drove these large employers away? Not, it would appear, a lack of office space or other regulatory “obstacles” to growth: Between 1980 and 1985, San Francisco underwent the largest building boom in its history, with more than 10 million square feet of new office space coming on line. In fact, the city now has abundant vacant space; by some estimates, the vacancy rate for downtown office buildings is between 157 and 207.

The decision to move a business into or out of a city is often very complicated. However, Birch, who has done considerable research into the issue, suggests in the April 1987 issue of Inc. magazine that the most crucial concerns are what he calls “quality of life” factors. Quality-of-life factors include things like affordable family housing for employees; easy, inexpensive transit options and good-quality recreation facilities and schools — and good-quality local government. In many cases, researchers are finding, companies that need a large supply of “back office” labor — that is, workers who do not command executive salaries — are moving to the suburbs, where people who are paid less than executive salaries can actually afford to live.

“Today the small companies, not the large corporations, are the engines of economic growth,” Birch wrote. “And more often than not, small companies are growing in places that pay attention to the public realm, even if higher taxes are needed to pay for it.”

For the past 20 years, San Francisco has allowed, even encouraged, massive new highrise office development, geared to attracting new headquarters companies and helping existing ones expand. In the process, some basic city services and public amenities — the things that make for a good quality of life — have suffered.

The most obvious example is the city’s infrastructure — the roads, sewers, bridges, transit systems and other physical facilities that literally hold a modern urban society together. A 1985 report by then-Chief Administrative Officer Roger Boas suggested that the city needed to spend more than $1 billion just to repair and replace aging and over-used infrastructure facilities. Wells Fargo’s report conceeds that that city may be spending $50 million a year too little on infrastructure maintenance.

Some of that problem, as Boas points out in his report, is due to the fact that many city facilities were built 50 or more years ago, and are simply wearing out. But wear and tear has been greatly increased by the huge growth in downtown office space — and thus daytime workplace population — that took place over the previous two decades.

To take just one example: Between 1980 and 1984, City Planning Department figures show, the number of people traveling into the financial district every day increased by more than 10,000. Nearly 2,000 of those people drove cars. In the meantime, of course, the number of riders on the city’s Municipal Railway also increased dramatically. City figures show more than 2,000 new Muni riders took buses and light rail vehicles into the financial district between 1981 and 1984. Again, city officials resist putting a specific cost figure on that increase — however, during that same period, the Muni budget increased by one-third, from $149 million to $201 million. And the amount of General Fund money the city has had to put into the Muni system to make up for operating deficits rose by some 737 — from $59 million to $102 million.

The new buildings, of course, have meant new tax revenues — between 1981 and 1986, the total assessed value of San Francisco property — the city’s tax base — increased 767, from $20.3 billion to $35.8 billion. But the cost of servicing those buildings and their occupants also increased 437, from $1.3 billion to to $1.9 billion. In 1982, San Francisco had a healthy municipal budget surplus of $153 million; by this year, it was down to virtually nothing.

The city’s general obligation bond debt — the money borrowed to pay for capital improvements — has steadily declined over the past five years, largely because the 1978 Jarvis-Gann tax initiative effectively prevented cities from selling general obligation bonds. In 1982, the city owed $220 million; as of July 1st, 1987, the debt was down to $151 million.

However, under a recent change in the Jarvis-Gann law, the city can sell general obligation bonds with the approval of two-thirds of the voters. The first such bond sale — $31 million — was approved in June, and the bonds were sold this month, raising the city’s debt to $182 million. And this November, voters will be asked to approve another $95 million in bonds, bringing the total debt to $277 million, the highest level in five years.

The city’s financial health is still fairly sound; Standard and Poor’s gives San Francisco municipal bonds a AA rating, among the best of any city in the nation. And even with the new bonds, the ratio of general obligation debt to total assessed value — considered a key indicator of health, much as a debt-to-equity ratio is for a business — is improving.

But the city’s fiscal report card is decidedly mixed. For most residents, signs of the city’s declining financial health show up not in numbers on a ledger but in declining services. Buses are more crowded and run less often. Potholes aren’t fixed. On rainy days, raw sewage still empties into the Bay. High housing costs force more people onto the streets — and the overburdened Department of Social Services can’t afford to take care of all of them.

What those signs suggest is that, in its pell-mell rush to become the Manhattan of the West, San Francisco may have poisoned its quality of life — and thus damaged the very economic climate it was ostensibly trying to create.

MAYOR DIANNE FEINSTEIN’S prescription for San Francisco’s economic problems and her blueprint for its future can be summed up in four words: More of the same. Feinstein, like Wells Fargo, PG&E and the Chamber of Commerce, is looking to create jobs and generate city revenues from the top of the economy down. Her program flies in the face of modern economic reality and virtually ignores the changes that have taken place in the city in the past five years.

Feinstein’s most visible economic development priorities have taken her east, to Washington D.C., and west, to Japan and China. In Washington, Feinstein has lobbied hard to convince the Navy to base the battleship USS Missouri in San Francisco. That, she says, will bring millions of federal dollars to the city and create thousands of new jobs.

In Asia, Feinstein has sought to entice major investors and industries to look favorably on San Francisco. She has expressed hope that she will be able to attract several major Japanese companies to set up manufacturing facilities here, thus rebuilding the city’s manufacturing base and creating jobs for blue-collar workers.

Neither, of course, involves building new downtown highrises. But both are entirely consistent with the Pacific Rim strategy — and both will probably do the city a lot more harm than good.

Feinstein’s programs represent an economic theory which has dominated San Francisco policy-making since the end of World War II. In those days, the nation’s economy was based on manufacturing — iron ore from the ground became steel, which became cars, lawn mowers and refrigerators. Raw materials were plentiful and energy was cheap.

By the early 1970s, it was clear that era was coming to a close. Energy was suddenly scarce. Resources were becoming expensive. The economy began to shift gears, looking for ways to make products that used less materials and less energy yet provided the same service to the consumer.

Today, almost everyone has heard of the “information age” — in fact, the term gets used so often that it’s begun to lose its meaning. But it describes a very real phenomenon; Paul Hawken, the author of The Next Economy, calls it “ephemeralization.” What is means is that the U.S. economy is rapidly changing from one based manufacturing goods to one based on processing information and providing services. In the years ahead, the most important raw materials will be ideas; the goal of businesses will be to provide people with useful tools that require the least possible resources to make and the least possible energy to use.

In the information age, large companies will have no need to locate in a central downtown area. The source of new jobs will not be in manufacturing — giant industrial factories will become increasingly automated, or increasingly obsolete. The highways of the nation’s commerce will be telephone lines and microwave satellite communications, not railroads and waterways.

IF SAN FRANCISCO is going to be prepared for the staggering changes the next economy will bring, we might do well to take a lesson from history — to look at how cities have survived major economic changes in the past. Jane Jacobs, the urban economist and historian, suggests some basic criteria.

Cities that have survived and prospered, Jacobs writes, have built economies from the bottom up. They have relied on a large number of small, diverse enterprises, not a few gigantic ones. And they have encouraged business activities that use local resources to replace imports, instead of looking to the outside for capital investment.

A policy that would tie the city’s economic future to the Pentagon and Japanese manufacturing companies is not only out of synch with the future of the city’s economy — it’s out of touch with the present.

In San Francisco today, the only major economic good news comes from the small business sector — from locally owned independent companies with fewer than 20 employees. All of the net new jobs in the city since 1980 have come from such businesses.

Yet, the city’s policy makers — especially the mayor — have consistently denied that fact. As recently as 1985, Feinstein announced that the only reason the city’s economy was “lively and vibrant” was that major downtown corporations were creating 10,000 new jobs a year.

Almost nothing the city has done in the past ten years has been in the interest of small business. In fact, most small business leaders seem to agree that their astounding growth has come largely despite the city’s economic policy, not because of it. That situation shows no signs of changing under the Feinstein administration; the battleship Missouri alone would force the eviction of some 190 thriving small businesses from the Hunters Point shipyard.

San Francisco’s economic problems have not all been the result of city policies. The financial health of the city’s public and private sector is affected by state and federal policies and by national and international economic trends.

Bank of America, for example, is reeling from the inability of Third World countries to repay outstanding loans. Southern Pacific and Crocker National Bank both were victims of takeovers stemming from relaxed federal merger and antitrust policies. In fact, according to Wells Fargo, 21 San Francisco corporations have been bought or merged since 1975. Meanwhile, deep cutbacks in federal and state spending have crippled the city’s ability to repair its infrastructure, improve transit services, build low cost housing and provide other essential services.

To a great extent, those are factors outside the city’s control. They are unpredictable at best — and over the next ten or 20 years, as the nation enters farther into the Information Age, the economic changes with which the city will have to cope will be massive in scale and virtually impossible to predict accurately.

Again, the experiences of the past contain a lesson for the future. On of San Francisco’s main economic weaknesses over the past five years has been its excess reliance on a small number of large corporations in a limited industrial sector — largely finance, insurance and real estate. When those industries took a beating, the shock waves staggered San Francisco.

Meanwhile, the economic good news has come from a different type of business — businesses that were small able to adapt quickly to changes in the economy and numerous and diverse enough that a blow to one industry would not demolish a huge employment base.

But instead of using city policy to encourage that sector of the city’s economy, Feinstein is proposing to bring in more of the type of business that make the city heavily vulnerable to the inevitable economic shocks that will come with the changes of the next 20 years.

THE CANDIDATES who seek to lead the city into the next decade and the next economy will need thoughtful, innovative programs to keep San Francisco from suffering serious economic problems. Those programs should start with a good hard dose of economic reality — a willingness to understand where the city’s strengths and weaknesses are — mixed with a vision for where the city ought to be ten and 20 years down the road.

Thus far, both are largely missing form the mayoral debate.

For years, San Francisco activists and small business leaders have been complaining about the lack of reliable, up-to-date information on the city’s economy and demographics. The environmental impact report on the Downtown Plan — a program adopted in 1985 — was based largely on data collected in 1980. That same data is still used in EIRs prepared by the City Planning Department, and it’s now more than seven years out of date.

In many areas, even seven-year-old data is simply unavailable. Until the Bay Guardian commissioned the Birch studies in 1985 and 1986, the city had no idea where jobs were being created. Until SFRG commissioned the Sedway-Cooke report in 1985, no accurate data existed on the city’s labor pool and the job needs of San Franciscans.

Today, a researcher who wants to know how much of the city’s business tax revenue comes from small business would face a nearly impossible task. That’s just not available. Neither are figures on how much of the city’s residential or commercial property is owned by absentee landlords who live outside the city. If San Francisco were a country, what would its balance of trade be? Do we import more than we export? Without a huge research staff and six months of work, there is no way to answer those questions.

Bruce Lilienthal, chairman of the Mayor’s Small Business Advisory Commission, argues that the city needs to spend whatever money it takes to create a centralized computerized data base — fully accessable to the public — with which such information can be processed and analyzed.

A sound economic policy would combine that sort of information with a clear vision of what sort of city San Francisco could and should become.

What would a progressive, realistic economic development platform look like? We’ve put together a few suggestions that could serve as the outline for candidates who agree with our perspective — and as an agenda for debate for candidates who don’t.

* ADEQUATE AFFORDABLE HOUSING is essential to a healthy city economy, and in the Reagan Era, cities can’t count on federal subsidies to build publicly financed developments. Progressive housing experts around the country agree that, in a city under such intense pressure as San Francisco, building new housing to keep pace with demand will not solve the crisis alone; the city needs to take action to ensure that existing housing is not driven out of the affordable range.

Economist Derek Shearer, a professor at Occidental College in Los Angeles and a former Santa Monica planning commissioner, suggests that municipalities should treat housing as a scarce public resource, and regulate it as a public utility. Rents should be controlled to allow property owners an adequate return on their investment but prevent speculative price-gouging.

Ideally, new housing — and whenever possible, existing housing — should be taken out of the private sector altogether. Traditional government housing projects have had a poor record; a better alternative is to put housing in what is commonly called a land trust.

A land trust is a private, nonprofit corporation that owns property, but allows that property to be used under certain terms and conditions. A housing trust, for example, might allow an individual or family to occupy a home or apartment at a set monthly rate, and to exercise all rights normally vested in a homeowner — except the right to sell for profit. When the occupant voluntarily vacated the property, it would revert back to the trust, and be given to another occupant. The monthly fee would be set so as to retire the cost of building the property over it’s expected life — say, 50 years. Each new occupant would thus not have to pay the interest costs on a new mortgage. That alone, experts say, could cut as much as 707 off the cost of a home or apartment.

* DEVELOPMENT DECISIONS should be made on the basis of community needs. A developer who promises to provide jobs for San Franciscans should first be required to demonstrate that the jobs offered by project will meet the needs of unemployed residents of the city. Development fees and taxes should fully and accurately reflect the additional costs the project places on city services and infrastructure.

Land use and development decisions should also be geared toward meeting the needs of small, locally owned businesses — encouraging new start-ups and aiding the expansion of existing small firms.

* ECONOMIC DEVELOPMENT programs should encourage local firms to use local resources in developing products and services that bring revenue and wealth into the city instead of sending it to outside absentee owners and that encourage economic self-sufficiency.

Cities have a wide variety of options in pursuing this sort of goal. City contracts, for example, should whenever possible favor locally owned firms and firms that employ local residents and use local resources. Instead of just encouraging sculptured towers and flagpoles on buildings, city planning policies should encourage solar panels that decrease energy imports, rooftop gardens that cut down on food imports and utilize recycled materials that otherwise would become part of the city’s garbage problem. (Using recycled materials is by no means a trivial option; if all of the aluminum thrown away each year in San Francisco were recycled, it would produce more usable aluminum than a small-to-medium sized bauxite mine.)

Other cities have found numerous ways to use creative city policies to encourage local enterprise. In Minneapolis-St. Paul, for example an economic development agency asked the U.S. Patent Office for a list of all the patents issued in the past ten years to people with addresses in the Twin Cities area. The agency contacted those people — there were about 20 — and found that all but one had never made commercial use of the patents, largely for lack of resources. With the agency as a limited partner providing venture capital, more than half the patent owners started businesses that were still growing and expanding five years later. Some of those firms had actually outgrown their urban locations and moved to larger facilities out of town — but since the Twin Cities public development agency had provided the venture capital, it remained a limited partner and the public treasury continued to reap benefits from the profits of the businesses that had left town.

* CITY RESOURCES should be used to maximize budget revenues. For example, San Francisco currently owns a major hydroelectric power generating facility at Hetch Hetchy in Yosemite National Park. A federal law still on the books requires San Francisco to use that facility to generate low-cost public power for its citizens; that law, the Raker Act, has been honored only in the breach. That means every year PG&E takes millions of dollars in profits out of San Francisco (the company is based here, but very few of its major stockholders are San Franciscans). The last time we checked, San Francisco was losing $150 million (CHECK) in city revenue by failing to enforce the Raker Act and municipalize its electric utility system.

Meanwhile, PG&E continues to use city streets and public right-of-ways for its transmission cables at a bargain-basement franchise fee passes in 1932 and never seriously challenged. Other highly profitable private entities, like Viacom cable television, use public property for private purposes and pay highly favorable rates for the right.

Those ideas should be the a starting point, not a conclusion for mayoral debates. But thus far, we’ve seen precious little consideration of the issues, much less concrete solutions, from any of the candidates.

The mayor’s race, however, is still very much open, and the candidates are sensitive to public opinion. If the voters let the candidates know that we want to hear their visions of the city’s economic future — and their plans for carrying those visions out — we may see some productive and useful discussions yet.*

Learn how to solve the Rubik’s Cube with the easiest method, learning only six algorithms.