Land Use

The America’s cup confusion

19

If the sponsors (and city officials) are right, the America’s Cup is going to be a huge event, attracting hundreds of thousands of spectators, many of whom will want to be on the San Francisco waterfront to watch. But it’s never been clear to me exactly how that’s going to work — how are all those (rich) people who are used to getting around in limos going to travel from their downtown hotels to the viewing areas? If the city wanted to do this right, we should close down the Embarcadero and some of the feeder streets to all vehicles (except ambulances — always needed when rich old people get excited) and force everyone to travel by pedicab. Buy up a fleet of several hundred of the human-powered vehicles and let all the unemployed teenagers get a shot at driving them. Job creation for youth; environmentally sound transportation; potentially fun bumper-car action with well-heeled patrons screaming in fear.


Remember: The f-line, even with improvements, can’t possibly handle the necessary traffic. And the AC types aren’t going to ride the train anyway. No way private cars can all fit without massive gridlock.


So: Pedicabs. My suggestion.


In the meantime, there’s this little problem of 8 Washington.


See, the developer of what would be the city’s most expensive condos ever is planning on excavating 110,000 cubic yards of soil for a massive underground parking garage — right along the Embarcadero, and right during the America’s Cup events. The Draft Environmental Impact Report for 8 Washington indicates that the dump trucks (about 20 big trucks per day, and possibly a lot more) would be using that roadway to get to 101 or 280.


Actually, if activist Brad Paul is correct, there’s no way the developer can excavate that much dirt in the time frame that it’s supposed to happen unless the number of trucks is closer to 300 a day. Imagine all of that happening while 100,000 people are trying to get to the waterfront to watch the show. Oh, and according to the DEIR for the America’s Cup, the Embarcadero will be CLOSED during that period.


The fact is, the 8 Washington project is not only a terrible idea (just what the city needs — more condos for mega-millionaires) but would directly screw up the whole America’s Cup effort. And the amazing thing is that the AC people and the Mayor’s Office don’t seem to be paying attention.


Paul has put together a lengthy critique of the whole mess that makes great reading if you’re into this sort of thing. So I thought I’d just post it all here. Warning: It’s long. Enjoy.


August 15, 2011                                                                                                         


Bill Wycko
Environmental Review Officer
San Francisco Planning Department
1650 Mission Street, Suite 400
San Francisco, CA  94103


Re: COMMENTS ON DRAFT EIR FOR 8 WASHINGTON STREET/
SEAWALL LOT 351 PROJECT    
Case No. 2007.0030E


Dear Mr. Wycko:


I am writing to my provide my comments on the Draft Environmental Impact Report (“DEIR”) for this project, a document that is incomplete, inadequate and in places quite misleading. I’ve organized my comments in sections beginning with a detailed discussion of how the project’s construction schedule has been greatly underestimated. This is followed by discussions of the DEIR’s failure to address key Housing and Population issues, misstatements regarding historic obligations related to Golden Gateway, comments on recreation issues, and more.  In general, I believe the DEIR fails to present objective information and analysis, it omits a number of relevant issues that are critical to the ability of public officials to make objective and informed decisions about the project and it is filled with judgments and assertions that are not supported by facts.


The DEIR is incomplete and inadequate in the following areas:


I. THE DEIR CONSTRUCTION SCHEDULE FOR 8 WASHINGTON IS BOTH INACCURATE AND MISLEADING.


The DEIR construction schedule is based on overly optimistic assumptions that are totally unrealistic; the ramifications of these erroneous assumptions need to be carefully considered as they will cascade throughout the project requiring major revisions to the DEIR before it can be considered accurate and complete.


At the bottom of page II.19 it states:
 
      Project construction, including demolitions, site and foundation work,
      construction of the parking garage, and construction of the buildings,
      would take 27-29 months. Assuming that construction would begin in 2012,   
      the buildings would be ready for occupancy in 2014. The first phase of the
      construction would take about 16 months and would include demolition       
     (2 months), excavation and shoring (7 months), and foundation and below
      grade construction work (7 months).


While the DEIR unequivocally states the project will take 27-29 months to construct, from 2012 to 2014, facts provided elsewhere in the DEIR together with current city policies,  the City’s America’s Cup Host and Venue Agreement and basic math indicate that this schedule is not tenable. The remainder of this section provides the data and analysis that lead to the conclusion that construction of 8 Washington will take much longer than 27-29 months, almost TWICE AS LONG, with excavation taking 2.5 to 3 TIMES longer.  


 


Table 1: Requested Changes to the overall DEIR construction schedule


          ACTIVITY             MINIMUM           MAXIMUM


    DEIR’s construction schedule: 27 months    to    29 months  


    Actual excavation schedule:  18 months           22 months
    — DEIR estimate for excavation – 7 months            – 7 months
    + Increased excavation time  11 months      to       15 months 
    + Archeology delays                .5 months      to         2 months
    +  America’s Cup delays                  2.5 months       to         5 months
    +  Weather delays                        .25 months      to         1 months


   ACTUAL CONSTRUCTION TIME 41 months       to      52 months



 
To refute the numbers in Table 1, project sponsors must present additional, verifiable data supporting their unrealistic assumptions, beginning with the claim that the first phase of construction takes 16 months with a mere seven months allocated for excavation/shoring.


A. The DEIR fails to accurately ascertain and analyze the excavation/shoring schedule.


The DEIR states on page II.20 that “approximately 110,000 cubic yards of soil” will be excavated from the site for an underground garage (approximately 90,000 cubic yards) and other foundation work during the seven (7) month “excavation” portion of the projected timeline. It later states excavation will take place 6.5 hours per day with an average of 20 truck trips per day (pg.IV.D.31). Assuming the average dump truck holds 12 cubic yards of dirt (typical payload for a dump truck), that would mean:


      · 110,000 cu. yards/12 cubic yards per truck = 9,166 truck trips


      · 20 trucks/day X 12 cubic yards/trip = an average of 240 cu. yards/day


      · 110,000 cu. yards/240 cu. yards per day = 458 working days for this task


Could this task be completed in seven (7) months as claimed in the DEIR?  NO.


     ·5 working days per week X 52 weeks = 260 working days per year
             – 11 holidays per year
                   249  total working days/year
   


     ·458 days to finish task/249 working days per year = 22 months  (not 7)
     
For this to take 7 months as the DEIR asserts, the following would have to be true:


   · 20 trucks/day X 7 months (145 working days ) = 2,900 total truck trips


   · 110,000 cu. yards/2,900 trucks = each truck must average 38 cubic yards/trip
Empirical evidence exists, however, proving the DEIR’s claim that the excavation portion of the schedule will take seven months is inaccurate and misleading:



             
        CASE STUDY #1: San Francisco General Hospital Rebuild Project


A recent SF General Hospital (SFGH) Newsletter reports the hospital’s contractor just finished hauling 120,000 cu. yards of dirt from the 45’ deep hole that was dug to build two basement levels and the foundation for a new hospital building. This is as close as anyone is likely to get to replicating what 8 Washington proposes, a three level 40’ deep underground garage accounting for most of the 110,000 cubic yards of dirt that must be removed from the site. 


A call to the SFGH Rebuild office revealed their excavation process took seven (7) months with an average truck load of 13 cu. yards per trip. How was that possible?


“The average truck load was 13 cubic yards. Some days we had
over 300 truck loads hauled in one day. This volume was possible
through use of a paved drive that allowed trucks to enter the side, be
loaded up then tires washed to prevent dirt on road causing storm-            
water pollution and dust.”


The SF General site is just a few blocks from U.S. 101 with direct access via Potrero Ave., thus minimizing potential traffic conflicts. The 8 Washington site will require driving long distances on city streets including “The Embarcadero, Harrison Street, and King Street… likely the primary haul and access routes to and from I-80, U.S. 101, and I-280 (pg. IV.D.31).” Imagine 300 trips a day on one of these streets.


 


        
               CASE STUDY #2: SF PUC’s New Hetch Hetchy Reservoir Tunnel


A recent Oakland Tribune story (4/8/11) describes construction of a new 3.5-mile tunnel designed to protect the water supply from SF’s Hetch Hetchy reservoir from major earthquakes by boring a 2nd, state-of-the-art tunnel from Sunol to Fremont alongside the existing 81-year-old Irvington Tunnel. The article states:


      “By the time the New Irvington Tunnel is completed in 2014, crews will have
        excavated about 734,000 cubic yards of material—the equivalent of 61,000
        dump-truck trips, said officials with the SF Public Utilities Commission.”


Dividing 734,000 cubic yards of soil by the 61,000 dump truck trips that the PUC says are necessary equals 12 cubic yards per truck trip. Given this job’s overall size and $227 million budget, it would seem to confirm the fact that the most efficient excavation equipment for the 8 Washington site will be 12 cubic yard dump trucks.



In light of these facts and the analysis provided above, the only way 8 Washington could meet its proposed seven (7) month excavation schedule would be to:


a) schedule up to 300 TRUCK TRIPS A DAY, over 10 TIMES the average number of trips per day (20) stated in the DEIR and 3 TIMES the absolute maximum of 100 truck trips per day (pg. IV.D.31)  along the Northeast Embarcadero during a period of time that directly overlaps with the major America’s Cup events and activities, something specifically prohibited by the City’s America’s Cup Host and Venue Agreement ,        


         OR


b) average 38 cubic yards of dirt per truck trip, 3 TIMES the average truck payload of both the PUC’s Irvington Tunnel project and SF General Hospital’s 120,000 cubic yard excavation project—assuming that 38 cubic yard trucks:  a) exist in sufficient quantity in   the Bay Area, b) would be available during that period of time described and c) would be allowed on The Embarcadero, Harrison St., King St., Washington St. and Drumm St. by     the City. [see photo comparison of 12 cubic yard vs. 30 cubic yard trucks below]


Unless the project sponsor can demonstrate that one of these two highly unlikely scenarios is possible, then the EIR must reanalyze a number of impacts (e.g. Land Use, Air Quality, Greenhouse Gases) based on a revised excavation schedule, one that takes 2.5 to 3 TIMES as long as the one described in DEIR to complete excavation work, and this 22 month timeline assumes NO archeological remains are found on site and the City imposes NO stop work orders related to America’s Cup (see below).


This 15-month difference between the excavation period analyzed in the DEIR and the ACTUAL time it will take to complete the excavation (22 months vs. 7 months) is a major deficiency in the DEIR with profound impacts.  For instance, some of the most significant unavoidable negative impacts described in the DEIR involve degraded air quality both during and after construction. Adjusting the environmental analysis to reflect how long excavation will actually take means significant air quality impacts related to excavation (with the greatest detrimental effect on seniors, children and people exercising) will persist for 2.5 to 3 TIMES LONGER than described in the DEIR.  This flaw also requires significant revisions to other sections of the DEIR.


In light of this new information, the next draft of the EIR must contain an analysis of    this longer overall construction period—two months for demolition; a range of 18 to 22 months for excavation (not seven months); a built-in range of time for the shutting down of the site when archeological artifacts are uncovered, documented and extracted (something the DEIR’s archeology consultant states is “likely” ); and the building construction period. Finally, given these overly aggressive excavation schedule estimates, all other estimates for later construction phases must now to be cross checked for accuracy by independent contractors (e.g. not working for 8 Washington developer    or the source of the prior DEIR excavation estimate).


B. The actual construction timeline for 8 Washington will be 41-52 MONTHS. 
If the project sponsors disagree with this assessment, they must provide the Planning Department with much more detailed information on how they expect to achieve a shorter construction period given the restrictions described in the DEIR itself as well as mathematical analysis described above. For instance,


– Did the developers err when they reported that the average number of truck
   trips per day would be 20 as analyzed in the DEIR?  If so, what number do they 
   choose to use now and how does that impact various aspects of the DEIR analysis
   such as air quality, conflicts with pedestrians, MUNI and America’s Cup, etc.. 


– Does the developer plan to raise the limit of truck trips per day from 100 (as
   per the DEIR) to 300 truck trips per day? If so, how often will this happen and 
   how will these changes impact various aspects of the previous EIR analysis (e.g. air
   quality, traffic/transit/pedestrian conflicts, America’s Cup)?


– Does the developer plan to lengthen the average workday or work six days a
   week? If so, how often and how would this impact the previous DEIR analysis?
   NOTE: The DEIR construction schedule (27-29 months) was not predicated on the
   trucks operating 6 days a week EVERY WEEK. But even if the developer ran dump  
   trucks 6 days a week for the ENTIRE excavation period it would still take TWICE AS
   LONG as the DEIR states to remove 110,000 cubic yards of dirt .


– Where is the project sponsor planning to route 100 to 300 trucks a day as they
   leave the site, particularly during the various America’s Cup trials (2012) and
   finals (2013) when vehicular traffic will be severely limited or prohibited?
   Washington Street? The Embarcadero? Drumm Street? Clay Street?, where exactly?


– Have the developers located a source of 30+ cubic yard trucks and secured
   city permission to use them on the specific streets described in the DEIR?
   It seems fair to assume the SF General Hospital’s excavation contractor would have
   done this if it were possible (and the SF PUC’s Irvington Tunnel contractor). See the  
   three photos below to get a sense of the size difference between a typical 12 cubic yard
   dump truck and the type of tractor-trailer rig required to carry 30 cubic yards or more.



As the questions and examples (SF General Hospital) above demonstrate, the DEIR’s claim that 110,000 cubic yards can be excavated in seven months defies the laws of physics and math, not to mention the America’s Cup Host & Venue Agreement between the City and Larry Ellison’s Oracle BMW Racing Team 


 A thorough reading of the DEIR’s Archeology section and the America’s Cup Host and Venue Agreement indicate that additional time must be built into the construction schedule for predictable work stoppages related to both issues.


KNOWN ARCHEOLOGICAL RESOURCES IDENTIFIED ON THIS SITE IN THE DEIR


On page IV.C.12, the DEIR’s archeology consultant, Archeo-Tec, identifies the Gold Rush ship Bethel as located under a portion of the site and states that “If discovered, the Bethel would be the oldest known (and perhaps most intact) archeological example of an early Canadian built ship (Pg. IV.C.3)”. On page IV.C.11, the archeology consultant states “Significant archeological resources are likely to exist at this site”.  The DEIR, goes on to state the proposed project will destroy a portion of city’s original Seawall causing “the largest disturbance of the Old Seawall to date”.


As a result of these DEIR findings, the archeology consultant should now be asked for an estimate of the time required to mitigate the discovery of the Bethel and other likely finds (e.g. original Seawall, other Gold Rush ships, original Chinatown). This “likely” work delay should be built into the construction schedule and stated as a range. For purposes of the matrix below (Table 1) we chose a time of two weeks to two months based on anecdotal information from other similar sites. Archeo-Tec, the archeology consultant, should be able to come up with a more precise estimate.


KNOWN AMERICA’S CUP SCHEDULING CONFLICTS


Based on recent MTA staff presentations on protocols for the America’s Cup, it seems clear that traffic, particularly construction dump trucks, will be banned from Washington Street, Drumm Street and The Embarcadero during major America’s Cup events that include, at a minimum, the America’s Cup World Series warm-up races (July/Sept. 2012), the penultimate Louis Vuitton Cup Series (July/August 2013) and the America’s Cup finals (Sept. 2013).  


This represents a minimum of 2.5 months that must be added to the construction schedule, something the DEIR authors should have included if they had read the America’s Cup DEIR which states there are 9+ weeks of races associated with this event in 2012/2013. The extra few weeks added to the low end range in Table 1 (below) are there to accommodate last minute weather delays and various large non-racing events held along the waterfront that will require closure of The Embarcadero, Washington Street, Drumm Street, etc.


Table 1 below lays out a more credible and realistic construction schedule based on the factors described at length above, taken directly from the DEIR or readily available from the city (e.g. America’s Cup DEIR) and the America’s Cup Host and Venue Agreement.


 
Table 1: Requested Changes to the overall DEIR construction schedule


          ACTIVITY             MINIMUM           MAXIMUM 


    DEIR’s construction schedule: 27 months    to    29 months  


    Actual excavation schedule:  18 months           22 months
    — DEIR estimate for excavation – 7 months            – 7 months
    + Increased excavation time  11 months      to       15 months 
    + Archeology delays                .5 months      to         2 months
    + America’s Cup delays                   2.5 months        to         5 months
    + Weather delays                        .25 months      to         1 months


   ACTUAL CONSTRUCTION TIME 41 months       to      52 months


To refute these numbers, the project sponsors must not only present a verifiable and detailed plan to remove 110,000 cubic yards (9,167 truck trips) in seven months that the City has signed off on but also produce a letter from the City and Oracle BMW Racing granting a waiver from Section 10.4 of the America’s Cup Host and Venue Agreement that would allow 20 to 300 trucks a day to drive along The Embarcadero, Washington Street   or Drumm Street during major America’s Cup events in 2012 and 2013.


D. Significant Transportation and Energy issues that were not addressed in DEIR.


More specific information related to the construction process needs to be provided and analyzed in the EIR, particularly regarding the far reaching impacts of those 9,166 dump truck trips, impacts that go beyond the immediate Northeast Waterfront.


The DEIR states “While the exact routes that construction trucks would use would depend on the location of the available disposal sites, The Embarcadero, Harrison Street, and King Street would likely be the primary haul and access routes to and from I-80, U.S. 101, and I-280”. At a minimum, The EIR needs to include information on where the two or three most likely disposal sites are located, based on recent experience (SF General Hospital excavation) so that one can analyze the extent of potential conflicts on the Bay Bridge or 101 South where other trucks will be transporting dirt to and/or from the Transbay Terminal project, Hunters Point Shipyard, Mission Bay, Treasure Island, etc. Without this information, the City could find itself creating significant traffic conflicts on the Bay Bridge or highway 101 that greatly increase air quality, traffic and transit problems without having analyzed these potential impacts in a flawed EIR.


Simply saying “While the exact routes that construction trucks would use would depend on the location of the available disposal sites” isn’t adequate or acceptable. Assumptions must be made regarding most likely disposal sites and routes to those sites and what additional cumulative impacts these routes (and 9,166 trucks) will create. The EIR must provide a MAP of the route to be used for hauling soil, all the way from the departure point at 8 Washington to the final destination(s) with an explanation of where trucks will drive and what restrictions there are on hours, size of payload, safety, etc. for the various streets, highways and bridges they will travel on. If the options include trucking the soil to San Francisco’s southern waterfront to transfer it to barges, then this needs to be disclosed and analyzed, including the potential routes and destinations of those barges.
In addition, to accurately compare the environmental impacts of the project sponsor’s ‘Preferred Project’ to the “No Project” alternative (energy consumption, traffic impacts, air quality degradation, etc.), one needs to know not only the destination of the approximately 9,166 dump truck trips but also the average miles per gallon of a typical dump truck. For instance, if the final destination for the soil was 100 miles away and a typical dump truck averages 8 miles per gallon of diesel fuel, then:



      9,166 truck trips X 200 miles per round trip = 1,833,200 miles for all dump trucks;


      1,833,200 gallons/8 MPG = 229,150 gallons of diesel fuel that would be burned. 


    
In other words, the city’s choices would be:



     229,150 gallons of diesel fuel used to transfer 110,000 cubic yards 1,833,200 miles


VS.


    ZERO (O) gallons of diesel fuel used if the NO PROJECT alternative were approved.


 


E. Importance of accurate, detailed information re: the construction process.


Given the above discussion, it is clear that the construction schedule set forth in the DEIR is inaccurate at best and has led, in many cases, to the significant understating of major negative impacts associated with this project. The lack of a detailed discussion of some of the key aspects of the construction process, e.g. the route and destination of 9,166 dump trucks, is also highly problematic.


Without a complete and thorough analysis of the impacts of a of an overall construction schedule that is TWICE AS LONG as the one analyzed in this DEIR, city officials will be missing much of the critical information they need to determine whether or not the developer’s ‘Preferred Project’ is necessary, desirable or feasible. A complete and factual analysis of this issue must be included in the next draft of the EIR which, given this and  other major inaccuracies and omissions (see below), should be recirculated in draft form.


 



II. THE DEIR FAILS TO DISCUSS OR ANALYZE ANY CRITICAL HOUSING ISSUES RELEVANT TO 8 WASHINGTON OR UNIQUE ENVIRONMENTAL AND ENERGY IMPACTS THOSE HOUSING ISSUES CREATE. 


A. Impacts of the project on the City’s Housing Needs were Not Analyzed in DEIR.  The DEIR states that potentially significant impacts to Population and Housing will not be discussed because the 2007 NOP/Initial Study found that the proposed project would not adversely affect them. Unfortunately the DEIR lacks the basic information needed to reach such a conclusion and, as we will demonstrate, an objective review of relevant 2008-2011 housing data contradicts this conclusion.


The world, particularly regarding housing, has changed radically since 2007. Relying   on housing and population information from 2007 ignores the financial and housing meltdown of 2008 and is simply indefensible. In addition, back in 2007, the EIR consultants were relying on stale, seven-year-old census data while today they have access to a multitude of fresh 2010 census data. No one can dispute that the housing environment today could not be more unlike the housing environment in 2007.
By relying solely on pre-2008 housing data from the 2007 NOP/Initial Study, this DEIR    lacks any of the basic information needed to conclude that this project would not have adverse effects on Population and Housing and must now revisit and thoroughly analyze these issues.


B. The DEIR fails to analyze how the type and price of housing proposed for
8 Washington determines whether or not it meets the city’s housing needs.


One of the project objectives (Pg II.14) is to “help meet projected City housing
needs.” How is that possible, given the fact that the developer has publicly stated
that these will be “the most expensive condominiums in the history of SF” ? With a
$345,000,000 project cost , 8 Washington’s 165 units will cost $2.0 million a unit
just to build . To secure financing and a ‘reasonable’ profit, each unit will have to
sell for $2.5-$5 million with penthouses selling for $8-$10 million.


Nowhere in the DEIR is ANY of this discussed. There is no analysis of how these
very high sales prices will determine who lives at 8 Washington (e.g. how many San
Francisco families could afford these prices?) and how the incomes of these new
residents ($250,000 to over $1 million/year) will dramatically change a number of
the environmental impacts of the project, with major implications for sustainability
and energy use, among other things.


The final EIR must state the average cost to build each unit and the range of
sales prices expected so that public officials can assess for themselves whether
the proposed condos will or will not  “help meet projected City housing needs.” 


The 2009 Housing Element, signed into law by Mayor Ed Lee on June 29, 2011, states that 61% of the housing need in San Francisco is for below-market-rate housing—serving families making 30-120% of Area Median Income (AMI), and only 39% of the city’s housing need is for market rate housing (120% to 500+% AMI).


As Planning staff and Commissioners know from their Housing Element discussions, the luxury condos proposed for this project are so expensive they will not help the city meet its current unmet housing needs. If this project objective (Pg II.14) is left in the final EIR, it should include a note explaining that the project, as proposed, is unlikely to meet this objective for the following reasons:


Condominiums selling for $2.5 million and more fall into the one segment of the city’s housing market that is currently overbuilt and has historically been over represented in relation to the state’s Regional Housing Needs Allocation (RHNA) goals that underpin the updated 2009 Housing Element of the city’s General Plan. An ABAG report on housing needs vs. housing production in SF (1999-2006) that came out in 2007—a report that should have informed the 2007 NOP/Initial Study for 8 Washington—states RHNA Allocations (Goal), Permits Issued (Permitted) and % of Allocation Permitted (% of RHNA Goal) by income category as follows:



Table 2: SF Housing Production (1999-2006)*


Housing Type  Very Low    Low              Moderate       Market Rate 
by Income    Income Income  Income           Housing
____________________________________________________________________________________________________________
  % of AMI:    21-50%  51-80%  81-120%         120-500+%
  Annual income: [21-50K] [57-81K] [85-123K]   [123K-$1million+]
———————————————————————————————————-
·RHNA Goal (units)   5,244       2,126   5,639                7,363


·Permitted    4,203       1,101      661                        11,474


·% of RHNA Goal     80%      52%       12%             156%


        * from a 2007 ABAG report entitled: A Place to Call Home



A chart like this, showing housing goals by income group (based on RHNA numbers from the State Office of Housing and Community Development), must be included in the DEIR so public officials can analyze what portion of the city’s unmet affordable and middle income housing needs, if any, the proposed project would meet. It illustrates something local housing experts have long known, that the city consistently comes in well above its RHNA goals for market rate condos, and has historically fallen short of its goals in all other categories for affordable housing, the housing that serves the 61% of San Franciscans that cannot afford ‘market rate’ housing.
C. Dramatic changes to the San Francisco housing market since the 2007 NOP/ Initial Study were not acknowledged and analyzed in the DEIR. All the traditional (pre-2007) sources of funding for the city’s affordable housing programs have dried up since the 2008 housing crash. Redevelopment tax increment funds will either be significantly reduced to pay the state to avoid closure of the SF Redevelopment Agency, or they will be eliminated altogether. Proceeds from the state’s $2.8 billion Affordable Housing Bond (Prop. 1C) are all spent. The federal Low Income Housing Tax Credit, a major source of funding for affordable housing, is under attack by House and Senate Republicans and may not survive.


This indicates that San Francisco won’t come close to meeting its pre-2007 affordable housing production levels  until we find a new permanent local source of funding for affordable housing. How long will that take? The DEIR must address this issue.


Another chart that must be included in the DEIR shows the city’s RHNA goals by income category combined with a summary of a recent SF Business Times (6/24/2011) chart showing all San Francisco residential projects under construction, permitted or  in the planning pipeline . Such a chart would look something like Table 3 below:


Table 3: Where does the city need help in meeting its RHNA goals?


          Extremely Low       Very Low            Low             Moderate          Market Rate   
                 Income          Income           Income            Income               Housing
         Below 30% AMI          31-50%            51-80%           81-120%              120-500+% 
      [21K-30K]         [35K-50]        [57K-81K]      [85K-120K]        [120K-$1M+]
____________________________________________________________________________________________________________


RHNA      439/yr.                   439/yr.           738/yr.            901/yr.                    1,632/yr.
Goals:      10.5%        +          10.5%      +      18%        +     22%  =  61%           39%
# of units                    of total        of total
% of goal
                             All Affordable Categories Combined            Market Rate_


Underway:          470 units                 1,557 units


Approved:                  8,751 units             30,878 units


In Pipeline:                   780 units                     4,184 units 
________________________________________________________________________
                          10,000 units             36,619 units 
            or                     or
          21.5% of all units                 78.5% of all units


                        56% of RHNA goals                                300% of RHNA goal
                in all affordable categories                        in market rate category
Some version of Table 3 must be included in the revised DEIR to help public officials determine whether the significant negative environmental impacts this project creates are outweighed by the ‘need’ for the type of housing that 8 Washington provides given the priorities set forth in the Housing Element of the General Plan and what the above-mentioned SF Business Times chart tells us about likely housing production for each segment of the city’s housing needs (from 2011-2014). 


Table 3 demonstrates that in a few years, if nothing changes, the city will have approved and built out 300% of its RHNA goal for Market Rate projects (such as 8 Washington) but only 56% of its RHNA goals for all other housing that serves San Franciscans making 30% AMI to 120% AMI. But given what we now know about the current lack of funding for affordable housing, the exact opposite of what was true in 2007 (when the city had significant amounts of Redevelopment tax increment and other affordable housing funds), many of the affordable housing projects listed by the Business Times are now on hold and unlikely to come on line by 2014. This means the mismatch between market rate (39% of need but 300% of production) and all categories of affordable will be even greater than Table 3 indicates.


To be fair, one could argue that some of the market rate housing on the Business Times chart may not be built soon either given that banks have been reluctant to lend money lately. However, a recent article in the SF Chronicle (8/11/11) entitled “Rents Go Through Roof” indicates that the city’s housing market is roaring back; Dennis Robal, property manager with Chandler Properties, reports “Noe Valley apartments that were $2,000 a month a year ago are now going for $2,400”. These kinds of increases, driven by new renters from the tech sector, are prompting major increases in investments by financial institutions in new rental housing.


Regarding the condo market, the one group of potential condominium buyers that
have not suffered financially from the economic meltdown are the very people who
caused it, the Wall Street investors, derivatives specialists, hedge fund managers,
etc. who are now making record salaries and bonuses. These are some of the people
8 Washington will be marketing to because they have the cash to spend $2.5-$10
million on a second, third or fourth home in San Francisco.


NONE of this housing analysis appears in the DEIR yet including it in the DEIR is
critical to the ability of public officials to make informed, rational decisions on this
project, particularly claims by the developer that this project will “help meet
projected City housing needs”. The information and analysis described above is
necessary to allow city officials and all readers to determine accurately and
objectively what portion of San Francisco’s unmet affordable and middle income
housing needs, if any, 8 Washington would meet.


Each year, as the City assesses how well it is meeting its RHNA (state) housing goals, the one area that has consistently over produced is high-end market rate housing affordable to people making $250,000 to $1 million+ a year.
How does building second, third and fourth homes for this demographic “help the city meet its housing needs?”


The unmet housing needs in San Francisco are for people making from 30%-50% of median income all the way up to 100-120%, not people making $250,000 to $1,000,000+ a year (200-500% or more of area median income). The DEIR needs to discuss the following questions to be considered complete, adequate and accurate, questions such as:


How does this project relate to the objectives, policies and goals of San Francisco’s recently enacted 2009 Housing Element of the General Plan?


What portion of San Francisco’s affordable and middle-income housing needs will this proposed project actually meet?


How many other projects under construction, approved or in the pipeline (see June 24,
2011 SF Business Times chart) will meet the needs of San Franciscans who can afford market rate housing vs. those that meet the needs of  the 61% of SF residents needing below market housing?


What percentage of “residents” of these condos will be using this housing as their primary residence vs. as second, third and fourth vacation homes?


Given that numerous studies show transit use goes down as income goes up,
how likely is it that these new owners will use public transit?


Again, the answer to each of these questions provides critical information that public
officials need to assess for themselves whether the proposed condos will or will
not “help meet the projected City housing needs.” 


Everything that’s happened since the 2008 economic/housing meltdown has made our housing problems worse, something the DEIR doesn’t attempt to analyze, arguing instead that a 2007 NOP/Initial Study—competed a year before the housing bubble burst—absolves it of all such responsibility, an argument that is factually absurd.


D. The DEIR fails to acknowledge, measure or analyze the unique environmental impacts generated by owners who can pay $2.5 to $10 million for luxury condos.


Building housing for this demographic has measurable impacts on transit and energy use that were not included in the DEIR. We know from national studies that low-and middle- income residents are far greater consumers of public transit than people with higher incomes. Imagine how much different public transit use will be when this inverse relationship includes people who can afford $2.5-10 million condos that come with             1-for-1 parking (costing almost $100,000 a space to build).


But a far greater environmental impact than driving private cars was not addressed in this DEIR, an impact resulting from lifestyle differences one can anticipate with some members of this highest of high-end demographics: owning and/or using private jets.


It’s reasonable to assume that five of the 165 condo buyers at 8 Washington (just 3% of   all buyers) are Wall Street hedge fund managers, derivatives traders or venture capitalists using these condos as second, third or fourth homes. It’s also reasonable to assume that these five buyers will use their condos 1.5 times a month on average and commute to and from SF aboard private business jets, a perfectly rational assumption for Wall Street executives making tens of millions in salary and bonuses each year. Why would they fly private jets rather than take Southwest…because they can. The fact that a handful of  people that are this wealthy will buy units at 8 Washington must be factored into any environmental analysis of a project that will explicitly market to this high-end demographic. That analysis must include, among others, the following:


 
                           Table 4: The Jet Fuel Burn Rate for Luxury Condominiums
___________________________________________________________________________
Mid to large size business jets used to fly cross country (e.g. Hawker 800XP, Gulfstream G2/G3, Bombardier Global Express) average 400 gallons of jet fuel per hour and take six hours to fly New York to SF and five hours to fly back for an 11 hour round trip  :


     · 11 hours X 400 gallons per hour = 4,400 gallons of jet fuel per trip
          a typical family car burns 1,200 gallons of gas per year so one flight from
          NYC to SF equals almost four years of driving a typical family car.
               ————————————————————————————————————————————————————————————————————-
       
        ·  1.5 trips/mo. = 6,600 gallons/mo. X 12 mo. = 79,200 gallons of jet fuel/year


        ————————————————————————————————————————————————————————————————————-
Using our example of 5 residents, the numbers over one year and 20 years are:


        ·  5 X 79,200 gallons/per year = 396,000 GALLONS OF JET FUEL A YEAR or
         equivalent to driving a family car 330 years, A THIRD OF A MILENNIUM, per year.


        ·  396,000 gallons/year X 20 years = 7,920,000 GALLONS of jet fuel in 20 years
         equivalent to driving family car 6,600 years, OVER 6 MILLENIUM, in 20 years.



Given these condos cost $2+ million to build and will sell for $2.5 to $8 million or more,    it seems quite reasonable to assume a mere 3% of these buyers—just five (5) buyers out of 165 —will be part-time residents wealthy enough to commute to San Francisco by business jet. If this is a reasonable assumption , then the DEIR must include the mathematical calculations above to show the true energy costs of this project. In fact, it would also be reasonable to assume a few other buyers will use private business jets to commute from LA, San Diego, Denver, etc. The only way to prevent this, forbidding buyers to own or use corporate jets, is of course impossible.
This is just one example of how housing prices—and who lives in that housing—greatly changes environmental impacts and why this analysis must be included in the DEIR for    8 Washington. As condo prices reach $2.5-10 million, it’s reasonable to assume a number of buyers will use them as a second, third or fourth homes and that some of those buyers will travel here by jet, not car or public transit. On the other hand, if units at 8 Washington were affordable or market rate rental or affordable-by-design condos (80%-150% AMI), it’s very unlikely any of its residents would own or use business jets. Price does matter with regard to energy consumption and transit use.


Given these facts, the 8 Washington DEIR must analyze such questions as:


How many solar panels do you need to make up for 396,000 gallons of jet fuel per year?


How many low flow toilets make up for 396,000 gallons of jet fuel per year?


How many double pane windows make up for 396,000 gallons of jet fuel per year?


How many on-demand hot water heaters make up for 396,000 gallons of jet fuel per year?


Looking at the longer term impacts of this excessive consumption of energy resources:


How many solar panels compensate for 7,920,000  gallons of jet fuel over 20 years?


How many low flow toilets make up for 7,920,000 gallons of jet fuel over 20 years?


How many double pane windows make up for 7,920,000 gallons of jet fuel over 20 years?


How many on demand water heaters make up for 7,920,000 gallons of jet fuel over 20 years?


Having this information in the DEIR is necessary for the Planning Commissioners or Board of Supervisors to make informed decisions about 8 Washington, especially when the project sponsor keeps touting it as state-of-the-art, sustainable, LEED certified (at Gold or Platinum level), etc. When added to the project sponsor’s insistence on building a 420-car underground (below sea level) garage, one has to question how one can call this a model of sustainable development or let the DEIR include sustainability as a project objective.


Unless the DEIR seriously and objectively addresses questions of how the price of housing and who lives in that housing impacts environmental sustainability, we risk creating a backlash against things like LEED certification and terms like “sustainability”. They could easily become just another example of slick marketing and “greenwashing”. Everyone agrees that building 10,000 s.f. McMansions in the Sierra Foothills on 2-acre lots—even if they’re LEED certified at the highest level—is NOT sustainable development. Why is it any less absurd to use “green” and “sustainable” to describe $2.5-$10 million condos built as second and third homes for extremely wealthy part-time residents, some of whom commute from their primary residence by private jet?


The DEIR must provide public officials with the data and information they need to analyze all the significant impacts that units this expensive have on the environment. With this information, decision makers might choose to require a much smaller garage or no garage at all (insisting on more efficient use of nearby existing garages). They might also choose to support a much smaller project or no project at all, based on the lack of demonstrable need for this housing type and all the other negative impacts described above. But they cannot make any of these decisions in a rational and objective manner without all the facts, many of which are missing from this DEIR.


E. The DEIR confuses project “objectives” with city mandated requirements with regard to Inclusionary Housing, then fails to discuss any of the relevant issues around this city policy.


The project objective (Pg II.14) that talks about the project’s ability “to help meet
projected City housing needs” reads in full:


 “To develop a high-quality, sustainable and economically feasible
   high-density, primarily residential, project within the existing
   density designation for the site, in order to help meet projected
   City housing needs and satisfy the City’s inclusionary affordable
         housing requirement;” 


Satisfying the city’s inclusionary affordable housing requirement, for this or any market  rate housing development, IS NOT an Objective, and stating it as such is misleading. It is,  in fact, legally mandated by city ordinance. The developer doesn’t have a choice in the matter and it should be stricken from this Objective. However, this reference to inclusionary housing leads one to ask several questions that are never addressed in the DEIR but should be. An Inclusionary Housing section must be added that answers questions such as:


What are the specific requirements for including permanent below market rate (BMR) units in all market rate projects and how many would be required on-site for this one?


Did the developer ever consider building on-site BMR units and if not, why not?


If the developer did consider and reject on-site BMR units, why?


If the developer has decided to pay the in-lieu affordable housing fee, what would it be and how and where (e.g. within a 1-mile radius of the project) would it be spent?


Given that the in-lieu fee charged developers to buy out of providing BMR units on-site is based on construction costs and sales prices for “average” condos, how will the extraordinarily high construction costs and sales prices for these condos impact the in-lieu fee? If it doesn’t impact the fee, would an appropriate mitigation measure be amending the Inclusionary Housing policy so that it does?


Mentioning the inclusionary requirement as part of an objective stating that the project seeks to “help meet projected City housing needs” is misleading and inaccurate. It tries to infer that the funding for 30 affordable units provided by the developer’s inclusionary requirement is helping to meet this objective when, in fact, relying on inclusionary payments to advance the city’s affordable housing goals will only drive the city further   out of compliance with its state mandated RHNA goals. The following example clearly demonstrates the validity of this claim:


TNDC’s proposed affordable family apartment project at Eddy and Taylor Streets is typical of the projects now stalled in the city’s affordable housing pipeline due to the lack of affordable housing funding from traditional sources. But the Eddy and Taylor project is a 150 unit development, not 30 units. For it to go forward, you would need the inclusionary housing funds from FIVE market rate projects like 8 Washington. What would that do to San Francisco’s RHNA goals:


         If:  165 market rate units are needed to fund 30 affordable units,
  Then:   825 market units (5X) are needed to fund 150 affordable units (975 total units).
      
         If:  out of a every 975 new housing units, 825 are market rate & 150 are affordable,
   Then:  for each new 975 units built in SF: 85% are market rate, 15% affordable.


But the 2009 Housing Element of San Francisco’s General Plan (based on the state RHNA goals) calls for 39% OF NEW HOUSING TO BE MARKET RATE (NOT 85%). Relying on Inclusionary Housing off-site payments to fund affordable housing clearly runs counter to the housing production goals set forth in the 2009 Housing Element in the General Plan as well as the RHNA goals for San Francisco established by the state of California. Furthermore, as SB375 Sustainable Development funding criteria begins influencing state funding decisions, by driving our RHNA numbers toward 85% market rate, projects like 8 Washington could jeopardize San Francisco’s ability to apply for and receive state and federal infrastructure and transit funding.


The only way to bring San Francisco’s housing production numbers back into line with the goals in the Housing Element (and RHNA numbers) is to create a new local permanent and dedicated source of funding for affordable housing. These relevant facts regarding the impacts of inclusionary housing must be included in the DEIR.



III. THE DEIR IGNORES THE GENTRIFICATION/DISPLACEMENT IMPACTS OF THIS PROJECT THAT WILL RESULT IN THE LOSS OF HUNDREDS OF RENT CONTROLLED UNITS IN THE GOLDEN GATEWAY BY ENCOURAGING THE FURTHER HOTELIZATION OF ITS 1,200 RENTAL APARTMENTS


The other ‘partner’ in this project is Timothy Foo, who bought Golden Gateway from Perini Corp. about 20 years ago. Only 20% of the 8 Washington site is on Port land, while 80% of the site is on land owned by Mr. Foo and currently occupied by Golden Gateway’s community recreation center. However, Mr. Foo’s only mention in the DEIR is in a footnote to the first sentence of the Introduction which states: “On January 3, 2007, an environmental evaluation application (EE application) was filed by San Francisco Waterfront Partners II (the “project sponsor”) on behalf of the Golden Gateway Center*”. That footnote says “*Golden Gateway Center, Authorization Letter from Timothy Foo, December 27, 2006”).


In addition to violating the original Golden Gateway development agreement that required Perini (and future owners) to preserve the recreation center in exchange for deep discounts in land prices charged by Redevelopment, for some time now Mr. Foo has also been converting rent controlled apartments in the Golden Gateway to short term rental use (e.g. on one floor of a high-rise tower, a third of the units are rented this way). These conversions have been documented by the Golden Gateway Tenants Association, the Affordable Housing Alliance and the San Francisco Tenants Union. While such conversions are not unique to the Golden Gateway Center (see attached Bay Citizen article), they are illegal and violate city zoning, rent control and apartment conversion ordinances.


The DEIR must address this issue by posing the following questions to Mr. Foo and incorporating his answers into the DEIR. He must provide this information because as the owner of 80% of the underlying land that comprises the 8 Washington site, he has had and continues to have a direct financial stake in this project. He must be asked the following questions:


How many of Golden Gateway’s 1,200 rental apartments are currently being used as hotel rooms and/or short-term rentals and/or rented to persons other than those using them as primary residences or directly related to the person residing there (e.g. corporations, business organizations, apartment brokers).


Has Mr. Foo consulted with either the Rent Board or the Planning Department as to the legality of his use of apartments in Golden Gateway as hotel rooms or short-term rentals under applicable city zoning codes, the San Francisco Rent Control ordinance or the city’s Apartment Conversion Ordinance?


Upon receiving and analyzing this information from Mr. Foo, the DEIR must then answer the following questions:


Is the ‘hotelization’ of Golden Gateway and other large apartment complexes likely to increase with the approval of 8 Washington, a development that:


a) builds 165 high-end luxury condos ($2.5 – $10 million each)
 on Mr. Foo’s property—creating a much more upscale
environment adjacent to his Golden Gateway apartments;


b) provides Mr. Foo with $10-15 million (what he’s likely to
be paid for his 80% of the site) that can be used to upgrade
his rent controlled apartments at Golden Gateway in order                             to attract even more higher paying hotel users; and


c) if no mention of these conversions is made in the DEIR, after                     these written comments have been submitted, will send a clear
message to Mr. Foo and others that the City has no intention of
enforcing its own zoning, rent control and apartment conversion
ordinances, thereby encouraging even more conversions.


If conversions like those at Golden Gateway are not stopped soon, the city is at risk of losing thousands of residential apartments in its downtown neighborhoods.


What kind of mitigations would prevent the further hotelization of the Golden Gateway’s 1,200 rent controlled apartments?


With larger apartment complexes such as Golden Gateway, Parkmerced and Fox Plaza, owners get around the current prohibition on renting residential apartments for less than 30 days as hotel rooms (an action that is legally prohibited by the San Francisco Apartment Conversion Ordinance) by leasing them for more than 30 days to third parties (e.g. corporations, apartment brokers). These intermediaries then rent the apartments for anywhere from a day or two to a few weeks to a month or two.


A simple amendment to the Apartment Conversion Ordinance that changes “you cannot rent an apartment for less than 30 days” to “you cannot rent or occupy an apartment for less than 30 days” would prevent Golden Gateway and others from renting apartments for anywhere from a few days to up to four weeks. Preventing 30-60 day rentals would be a more complicated matter.


The DEIR must address how constructing 8 Washington could encourage, help fund and accelerate Mr. Foo’s conversion of the 1,200 units at Golden Gateway from rent controlled apartments to hotel use as well as the impacts this would have on the city’s housing goals as set forth in the San Francisco’s 2009 Housing Element and its RHNA goals. For instance, if we’re converting housing to non-housing (hotel) uses as fast or faster than we are creating new housing units, we will never dig ourselves out of our current housing crisis and that outcome would have catastrophic impacts on the environmental and economic sustainability of San Francisco as a city.


The DEIR must also describe, in detail, the kind of mitigations (see above) that, if enacted, could mitigate the potential impact of losing more that 165 rent controlled apartments at the Golden Gateway, erasing the gain, on paper, of 165 luxury condos.



IV. FREQUENT USE OF THE WORD “PRIVATE” AS A MODIFIER OF THE GOLDEN GATEWAY RECREATION FACILITIES THROUGHOUT THE DEIR  IS BOTH MISLEADING AND INNACCURATE IN LIGHT OF THE RECENT PRIVITIZATION AND FEE STRUCTURES IMPOSED ON THE CITY’S “PUBLIC’ RECREATION FACILITIES AND SWIMMING POOLS.


The current fee structure for public recreation facilities in San Francisco results in situations where the cost of attending ‘public’ pools can often exceed fees charged by    the “private” Golden Gate Tennis & Swim Center (GGTSC).


The use of the term “private” in this context throughout the DEIR appears to be an attempt to justify the loss of GGTSC facilities for the 3-4 years that it would be shut down if the “preferred project” were approved (see section I.A for actual construction schedule) as well as the permanent loss of five of nine tennis courts, the basketball court and the current, family-friendly ground level swimming pools, Jacuzzi and open space.


In the past, the city’s public recreation facilities, including its swimming pools, were  “public” in every sense of the word—open long-hours, open 6-7 days a week and “free” to residents. In recent years, however, the San Francisco Recreation & Parks Department has increased resident user fees, reduced hours and increased the privatization of its facilities in response to ongoing budget deficits. Today, both the ‘private’ Golden Gateway facility and ‘public’ pools are open to anyone, anyone who is willing to pay   the fees that they charge. Neither is free.


A. The DEIR fails to discuss the privatization of the City’s  recreation centers: According to a 7/9/11 SF Chronicle article, the city is now leasing 23 of its 47 recreation centers to outside interests (e.g. nursery schools, private classes) with the city staffing only a dozen (12) of the 47 former “public” recreation centers. Seven (7) of the remaining recreation centers are under renovation and five (5) are vacant, unavailable for any kind of use “because no one has leased them and there is no money for city workers to run them”. Out of a total of 47 city recreation centers, only 12 are staffed by city workers who run programs for residents, many of them for a fee, during reduced days and hours.


The City also runs nine “public” swimming pools in neighborhoods such as North Beach, the Mission, Bayview, Visitacion Valley, etc. These pools used to be open five or six days a week and were free for residents. Today, residents pay $5 for each swim and $7 for adult swim lessons/water exercise. Children under 17 pay $1 per swim and $2 for swim lessons/water exercise ($3 for a swim & a class together).


Active Recreation Facilities: Public vs. Private… is there a difference anymore?


Each time a family of two adults goes to a city pool it costs $10 per visit to swim and up to $14 per visit if they participate in swim lessons or water exercise. If that family went three times a week, it would cost them $120-$168 per month depending upon how many times they took a swim vs. participated in swim lessons/water exercise. That comes to at least $1,440 dollars per year. Additional swim lessons/water exercise classes drive costs of using a “public” pool even higher.


Now imagine a family of two adults living at the Golden Gateway who currently       swim every day at the Golden Gate Tennis and Swim Center. At the city’s North Beach (public) pool, it would cost them $200 a month ($10/swim X 20 days) to swim Tuesday through Saturday (the pool is closed Sunday/Monday) and their schedules would have to match specific windows each day when the pool is available for adult lap swimming. Compare that to the two pools at the Golden Gateway Tennis and Swim Center—one just for swimming laps; one for kids, families and seniors that are open seven days a week for longer hours.


B. Comparative Costs. Because our hypothetical couple live at the Golden Gateway Apartments they automatically receive a discounted membership of about $170  per month ($85 each) to use the two pools, full gym across the street and have the ability to reserve tennis courts at $20 per use. Since the Golden Gateway was built (1960’s), residents have always received discounted membership at this facility, one of two community benefits Redevelopment required, along with Sidney Walton Square, in exchange for entitlements to build both the Golden Gateway (1,150 rental units) and the adjacent Gateway Commons (condominiums). Redevelopment felt both amenities were needed to meet the open space and active recreation needs of what was to become one of the densest residential communities in San Francisco and discounted the land for the GGTSC and Gateway Commons in exchange for the owner maintaining an active recreation facility at the GGTSC in perpetuity.


Even for those who don’t get the Golden Gateway resident discount, memberships to the Tennis and Swim Center that don’t include automatic access to the tennis courts cost about $220 a month to swim 30 days a month, the same price two adults would pay to swim only 20 days a month at the North Beach pool, a facility with no gym and only   one pool and therefore greater restrictions on when they could swim laps. It should also be noted that over 300 “guests” are admitted free to the Golden Gateway recreation facility each month, a total of 3,000 to 4,000 guests each year. We are not familiar with   a similar policy for free guests at the North Beach pool (or any other city pools).


Clearly, the recent privatization and escalating fee structures at the city’s “public” recreation centers/swimming pools have erased any real distinctions between public facilities and private facilities as viewed by local families and residents. But one of          8 Washington’s main justifications for closing the Golden Gateway Tennis and Swim Center for 3-4 years during construction—and downsizing the replacement facility—
is that it is a “private” club maintained for the selfish interests of the few.


Putting aside the fact that 8 Washington’s condos will cost $2 million each to build  and will sell for $2.5 to $5 million each and up (for upper floors), making them unaffordable to 97% of all San Franciscans (talk about catering to “the few”), the issue of who uses the current recreation facilities on this site is an important one that the DEIR must address. The similarities outlined above between today’s Golden Gateway recreation facilities and the City’s current “public” recreation centers/swimming pools contradicts the impression created by the DEIR in its current form with so many derogatory references to GGTSC as a ‘private’ club.


It is imperative that public officials have the information outlined above regarding the current costs of “public” recreation in front of them so they can decide for themselves what distinctions, if any, exist in today’s world between this ‘private’ club and so called “public” alternatives. This information is precisely what an EIR is suppose to provide to officials charged with making these kinds of decisions.


For these reasons, we must insist that you provide—in the Comments and Responses document—a clear, complete explanation of this issue, with a chart (see attached for potential template) that compares the facilities, hours, programs and costs to San Francisco residents of the city’s nine (9) “public” swimming pools with the current Golden Gateway recreation facility fee structure. Without such an analysis critical information will be lacking, information that Planning Commissioners, Park and Recreation Commissioners, Port Commissioners and the Board of Supervisors will clearly need as they assess the validity of the developer’s claims about who is served by the current facilities (and what environmental impacts they have) versus those who’ll be served by the proposed project (and its environmental impacts).


Without this information, it will be difficult for these public bodies to make informed decisions as to whether to grant or not grant the conditional use authorizations, upzonings and dozens of separate approvals and permits needed for this complicated and controversial project to proceed.


V. THE DEIR FAILS TO ADDRESS OR ANALYZE ANY OF THE MAJOR ECONOMIC ISSUES RELATED TO THIS PROJECT, ISSUES THAT HAVE SIGNIFICANT ENVIRONMENTAL AND FINANCIAL IMPACTS ON THE NEIGHBORHOOD AND THE CITY.


Several of the project sponsor’s and the Port’s objectives for this project speak to the “economic” benefits of the project for the developers, the Port and the City. The DEIR and other Port documents talk about the need to develop SWL 351 in order to generate revenue for badly needed Port infrastructure work. But the Port’s financial term sheet for this project is unrealistic, misleading and relies on depriving the city of $32 million in general fund dollars as part of a proposed Infrastructure Financing District.


This section addresses the DEIR’s lack of analysis or scrutiny regarding the ‘alleged’ financial benefits of the project as described in the Port’s Term Sheet for Seawall Lot 351 with San Francisco Waterfront Partners (“Term Sheet”) and how that Term Sheet, if executed, would have very real environmental impacts with regard to transit, open space, recreation, housing and population.  An examination of the Term Sheet demonstrates that the stream of income on which the term sheet’s finances rely cannot be achieved.  An objective analysis of “payments” described in this Term Sheet leads one to a much more pessimistic set of income projections than those presented in the September 23, 2010 Director’s Recommendation to the Port Commission. That report describes three payment sources as follows:


(1)  a land lease with annual payments of $120,000 per year;
(2)  future payments triggered by resale of condos created by the Project;
(3)  a to-be-established Infrastructure Financing District (IFD) that allows
              a portion of growth in property taxes to be reinvested in public facilities;  
 
That third source of funding is particularly troubling since it requires a sizeable appropriation of City General Fund revenues ($32 million) by the Port for its own purposes. We will now examine each of these proposed “payment” schemes to determine how realistic they are as well as the potential environmental and economic consequences they create for San Francisco’s residents and taxpayers:
1.  Lease Payments. It is easy to refute the likelihood of the $120,000/year lease payment for parcels to be used as open space with related facilities.  The second paragraph of Director’s Recommendation (page 5) states: “If engineering and cost analyses deem additional funding is needed to finance agreed upon public improve- ments, the Port agrees to designate some or all of the $120,000 per year park rent to augment financing of these public improvements.”  If the developer produces “engineering and cost analyses” showing “additional funding is needed to finance agreed upon public improvements,” the Port will “designate some or all of the $120,000/year in park rent to finance public improvements,” improvements that the developer is responsible for.  Suddenly this $120,000 of alleged “rent” could become no rent. Is that likely to happen? You be the judge:



A Little Recent History


The developer of 8 Washington is San Francisco Waterfront Partners, a partnership between Pacific Waterfront Partners and CALSTRS, the same partnership that  developed Piers 1½, 3 and 5 across the street. According to the Port’s rent rolls, San Francisco Waterfront Partners makes rent payments for Piers 1½, 3  and 5 of  $41,666.67 per month or $500,000 annually. But 90% of this is wiped out by a rent credit of a $450,000 annual rent credit ($37,500.00 per month). This means that the actual rent for Piers 1½, 3 and 5 paid by San Francisco Waterfront Partners isn’t $500,000/year, but $50,000/year or 1/10 of the original rent. Knowing this, it seems highly likely that the Port will grant a similar rent credit to 8 Washington, a credit that it has already offered in the Term Sheet approved last year.



The DEIR needs to discuss this and ask the following questions to help establish for public officials whether or not 8 Washington has the possibility of generating resources to fix up the Port’s historic infrastructure.


Was the $450,000 rent rebate given Piers 1½, 3 and 5 given for “public improvements” in the same way the 8 Washington Term Sheet proposes to give      8 Washington an up-to-$120,000/year (100%) rebate for “public improvements?


How much of this $120,000/year lease payment to the Port is guaranteed?


Based on recent history with this developer (see above box), it would appear that claiming a $120,000 per year lease payment is, at best, a gross overestimate.


2.  Future payments triggered by resale of condos (aka increased transfer tax). The second source of payments (around $25 MILLION over life of the lease) involves the developer recording covenants “committing all owners to transfer payments to the Port of ½ percent of sale value for all sales of the residential condominiums and all re-sales of commercial condominiums” (from Director’s Report, Page 4), in other words, a ‘voluntary’ increase in the transfer tax.  


This idea of obligating future owners to a special transfer “fee” was already tried, unsuccessfully, several years ago by then Mayor Gavin Newsom’s office as a way to provide ‘stimulus’ for large condo developers with approved projects who were trying to get financing. In exchange for agreeing to binding future condo owners to ‘voluntarily’ pay a 1% increase in the real estate transfer tax (but not calling it a “tax”), the Mayor’s Office proposed relieving the developers of 1/3 of their affordable housing requirement. That idea failed to get off the ground for both legal and political reasons. Regarding this proposal:


How does the Port plan to argue this increase in the real estate transfer TAX is not really a tax and do so in a way that convinces the Pacific Legal Foundation, Howard Jarvis Taxpayers Association and SF Board of Realtors not to sue?
Mayor Newsom’s failed proposal did trigger an multi-stakeholder discussion of a broader, legally defensible strategy, going to the voters for a permanent, across the board increase in the transfer tax on ALL real estate transactions (above the median home price) generating tens of millions of dollars a year for affordable housing. A portion of this new money would fund traditional affordable housing built by non- profit housing development corporations, but a portion would also be available to for-profit housing developers to buy down their affordable housing obligations. All sides agreed to this compromise and to place it on the November 2010 ballot, because it HAD to go to the voters, just as the ½% transfer tax increase proposed     in this Term Sheet would need voter approval.


NOTE: The reason that this proposal was not on the ballot that November, as reported in the New York Times, was because Mayor Newsom refused to support it or ANY tax increase, no matter how much support it had, for fear of giving his Republican opponent in the Lt. Governor’s race an issue to use against him in the 2010 election.


If the best legal and political minds in the city couldn’t figure out a way to “voluntarily” increase the real estate transfer tax without going to the voters then, how does the Port propose to do the same thing for 8 Washington now?


3.  New IFD Funding Mechanism. The third weak link in this financing plan is the as yet “to-be-established Infrastructure Financing District (IFD) that will allow a portion of growth in property taxes to be reinvested in public facilities.”  Port Director’s Recommendation, page 2.   While the concept is an interesting one, it is in its infancy in San Francisco. The Board of Supervisors is in the process of setting up a pilot IFD with seven or eight property owners on Rincon Hill to test this model.


To date, citywide discussions about the use of tax increment financing tools, such as the IFD, have linked their use to funding a larger set of neighborhood infrastructure needs and public benefits previously identified through adopted Area Plans such as Eastern Neighborhoods, Market Octavia and Rincon Hill and not for the specific needs of individual projects or developers (e.g. 8 Washington).


Looking ahead, it isn’t hard to imagine the kind of criteria the Board of Supervisors might adopt to determine what developments could avail themselves of IFDs. Those with significant legal, political and financial challenges, such as 8 Washington, would not score well.  Nor would projects that dramatically reduce and eliminate active recreation facilities serving middle-income families and seniors for over 45 years.  Finally, projects that undo decades old community benefits agreements, provided as part of a Redevelopment plan (e.g. Golden Gateway’s permanent active recreation center), probably wouldn’t pass muster .


Assuming the city eventually creates IFDs in certain circumstances, how does the Port make the case for THIS project, given the growing political and legal opposition to it, the long standing community resource that it destroys and the fact that the Board of Supervisors won’t give up $32 million for it (see below).


 4. Diversion of property taxes from the General Fund to the Port. The majority of the 8 Washington/SWL 351 site is NOT Port property, but under the jurisdiction of the City and County of San Francisco. Exhibit A of the Term Sheet shows the boundary of the 0.64 acre under Port control (SWL 351) and the 2.51 acres portion currently privately owned by Golden Gateway on AB168, 171, 291 (80% of the site). SWL 351 (the Port land) is only 20% of the total development site.


While these blocks were under the jurisdiction of the Redevelopment Agency, the property tax increment was diverted from the City’s General Fund to that Agency.  Following termination of the Redevelopment project area several years ago, however, ALL property tax revenue from this land flows to the General Fund.  The Port now proposes to divert the property tax increment from the portion of this site NOT UNDER PORT JURISDICTION away from the General Fund and to the Port.


The Port Director’s Term Sheet Recommendation on page 6 proposes “a new Port IFD” covering both SWL 351 and the Golden Gate Tennis and Swim Club (WHICH IS NOW ENTIRELY UNDER THE CITY’S JURISDICTION AND TAXING AUTHORITY).  Under the “new Port IFD” all the property tax increment from development on non-Port property would be diverted FROM the General Fund TO the Port.  Toward the end of the Term Sheet recommendation the Port Director does state that the Board of Supervisors would have to agree to this arrangement, which prompts several questions that should have been asked and answered in the DEIR:


Who from the city, not the Port, agreed to including these IFD financial terms in the Term Sheet?


Which members of the Board of Supervisors were consulted regarding this planned appropriation of property tax revenue from the city’s general fund?


What would lead the Port to think ANY current or future Board of Supervisors would  ‘voluntarily’ turn over $32 million in General Fund dollars to the Port, providing a $32 MILLION CITY SUBSIDY FOR LUXURY CONDOS when the Board is struggling with massive budget deficits, layoffs and cuts to vital city programs?


The DEIR must address whether or not this project is financially viable because if it is not, then the public facilities and infrastructure the project has promised to provide cannot be built. The DEIR must also assess the likelihood of the Board of Supervisors turning over $32 million in General Fund monies as a subsidy to the Port for this and other Port projects and analyze what environmental impacts this loss of $32 million to the city would create over time: what parks wouldn’t be maintained, which parks and recreation centers closed, what transit lines discontinued or run less frequently, etc.; actions that would not have been necessary had the city kept that $32 million. Specifically, the DEIR must answer the following questions:


Can 8 Washington’s public facilities (e. g. Jackson Commons, other open space) ever  be built with IFD funding, given that:


a) the IFD is predicated on the Port capturing 100% of the tax increment generated by 8 Washington even though the Port only owns 20% of the site, and


b) according to recent testimony before the Planning Commission by Michael Yarne (OEWD), under state law IFD’s are prohibited on land that “is currently,  or was previously part of a redevelopment area”?
 
Under what circumstances does the Port anticipate that the current (or a future) 
Board of Supervisors would voluntarily give up its 80% of this tax increment
($32 million out of $40 projected by the Port) to fund public improvements for   
LUXURY CONDOS at 8 Washington or other Port projects?


Has the Port had any discussions with the Board of Supervisors regarding this?


If so, what was the Board’s reaction?
    
Has the Port or project sponsor had state legislation passed (or introduced) that
provides the necessary waivers from the current state prohibition against
setting up IFD’s in former redevelopment areas?


Again, this is information that public officials must have to make informed, objective
decisions about the impacts of this project.


 


 


 


VI. THE DEIR FAILS TO DISCLOSE THAT 8 WASHINGTON IS THE FOURTH ATTEMPT TO CONVERT THE GOLDEN GATEWAY TENNIS & SWIM CLUB FROM CITY MANDATED ACTIVE RECREATION USE TO CONDOMINIUMS. IT PRESENTS VERY BRIEF AND MISLEADING INFORMATION REGARDING THE HISTORIC RECORD SUPPORTING THE REQUIREMENT TO PRESERVE THE CURRENT ACTIVE RECREATION FACILITIES ON SITE IN PERPETUITY.


The DEIR addresses this issue very briefly in a footnote on page II.3 that states:


2 The original development agreement governing the Golden Gateway Center Lots required the developer to provide non-profit community facilities as part of the overall development with the Golden Gateway Center. In Section 4 (a) of the Agreement for Disposition of Land for Private Development (“Agreement”) between Perini-San Francisco Associates (the “Developer’) and the Redevelopment Agency, dated August 27, 1962, the Developer agreed to maintain “community facilities of  a permanent nature… designed primarily for use on a nonprofit basis” (page 25 of the Agreement). Subsequent to the Agreement, the Agency and Golden Gateway Center (the successor to the Developer) entered into a Second Supplement and Amendment to the Agreement (“Second Supplement”) on March 14, 1976. Section 1(d) of the Second Supplement deleted Section 4(a) of the agreement (page 12 of Second Supplement) and thereby removed the requirement to maintain community facilities on the property in exchange for the dedication of Sydney Walton Park for perpetual use as a public park.


This interpretation of those documents contradicts evidence previously by individuals with intimate, first hand knowledge of those Golden Gateway redevelopment agreements. Those comments are attached as:


Exhibit A: A May 9, 1984 letter from then Mayor Dianne Feinstein that begins:“As a supervisor and as mayor, I have a long history with the redevelopment plan and agree with those who maintain that this site has always been considered set aside for recreation and open space.”


Exhibit B: An August 8, 1990 letter from Robert Rumsey to then redevelopment director Ed Helfeld that states:


  “I happened to be Deputy Director of Redevelopment in the late 1950’s and early  
    1960’s when the Golden Gateway redevelopment plan was adopted by the city and
    when Perini Corp. was subsequently selected as the developer of the Golden Gateway
    over eight other competitors… I feel it is important to place on the record the view of  
    the staff and commissioners of the agency at the time of selection: The provision of that
    open space and recreational space was a significant factor in the selection of the
    Perini proposal. And clearly, the space was presumed to be kept that way in
    perpetuity” (underlining Mr. Rumsey’s).


 


Exhibit C: A January 24, 2003 letter from Senator Dianne Feinstein reiterating that: 
  
   “I have a long history with the redevelopment area at Washington and Drumm Streets     
    and concur with those who believe this space was intended for recreation and open
    space. Please oppose further development of the Golden Gateway Tennis & Swim Club.”


These letters came in reaction to THREE previous unsuccessful attempts to develop the Golden Gateway Recreation Center as condominiums. Those attempts included:


1. Perini Corp. (early 80’s). The original developer of the Golden Gateway project proposed replacing the Golden Gate Tennis & Swim Club (GGT&SC) with a 9-story condominium project, in violation of its original approvals for the larger project that called for the GGTSC to serve as one of two major community benefits (along with Sidney Walton Sq.) in perpetuity. NOTE: This took place after the Second Supplement and Amendment to the Agreement referenced in Footnote 2 (above) was executed. Clearly, then Mayor Feinstein, had a very different interpretation of the Second Supplement than that of the author of Footnote 2 when she says in her letter that  “I agree with those who maintain that this site has always been considered set aside for recreation and open space.”


2. Perini Corp. (early 90’s). Again the owners of the Golden Gateway proposed replacing the project’s active recreation center with a condo project. This time, a letter from former Redevelopment Director Robert Rumsey date 8/8/90 provides extensive evidence that the interpretation of events contained in Footnote 2 is neither complete nor accurate. His detailed first hand description of that transaction which took place in the 1970’s is quite instructive. In addition to his comment that:


     “I feel it is important to place on the record the view of the staff and commissioners  
      of the agency at the time of selection: The provision of that open space and
      recreational space was a significant factor in the selection of the Perini proposal.
      And clearly, the space was presumed to be kept that way in perpetuity”


his letter states that “if it is now proposed that there is a loophole permitting that space to be invaded by condominiums, I would consider that to be most unfortunate for the city” and describes the land use negotiations that allowed Perini to substitute 155 low-rise condos for the four remaining high-rise rental towers that were suppose to be built as Phase III of the redevelopment plan. According to Rumsey, the agency finally, “albeit reluctantly” agreed to let Perini make this change “because some seven years had elapsed since completion of Phase II and there was otherwise no prospect for building on those long-barren blocks”.


Rumsey then states that the Agency’s October 28, 1975 minutes show the debate over what the Agency should charge Perini for the land that made up Phase III (now Gateway Commons condominiums) focused on “whether it should be $8.45 a square foot, the price established 15 years earlier, or a more realistic 1975 price of $15-$20 a square foot”. He then states:


      “My new successor, Arthur F. Evans, said he might agree with the higher number if
      the land was offered without restrictions, such as requirements of open space. And
      he added: Amenities such as Sidney Walton Square and the Golden Gateway tennis
      courts were on land that was not income producing, and since no one could build
      highrise buildings on this area, its value could be considered zero.”


As a result of this discussion, according to Rumsey, “Evans and the commission agreed to hold the land sales price to the original $8.45 a square foot, as the agency continued to view the open and recreation space to be in perpetuity.”


Based on Rumsey’s letter and substantial community opposition, this second attempt to replace the GGT&SC was defeated.


3. John Hamilton, developer (2003-04). In the mid-90’s Perini sold Golden Gateway to Timothy Foo and a group of investors. In 2003, developer John Hamilton proposed another condo tower on the site. Senator Feinstein’s January 24, 2003 letter was responding to that proposal. After reiterating her conclusion that “this space was intended for recreation and open space”,  she goes on to say, “increasing the height of the Club would drastically change the picturesque panorama of the Bay and would create shadow effects on the newly constructed Embarcadero. Further, development of more residential units would increase traffic noise and pollution, and disregard the original understanding between City officials and area residents that open space and recreational amenities should be preserved.”


4. Current 8 Washington Street/SWL 351 proposal is the 4th Attempt (2006-present) to develop condos on this site and demolish the Golden Gateway’s active recreation center, a facility that’s successfully fulfilled its intended purpose for almost 50 years.


In his written comments on 8 Washington’s DEIR dated August 11, 2010, Mr. Edward Helfeld, Director of the Redevelopment during the second attempt to demolish the Golden Gateway Tennis and Swim Club speaks to the original purpose of the facility, how it has successfully served San Francisco’s recreation needs for over four decades and how relatively inexpensive it is compared to other tennis facilities in the city. He also writes that “As Executive Director (1987-1994) I was in total support of retaining Golden Gateway Tennis and Swim Club”.


Any public official or member of the general public reading the current DEIR would have no knowledge of these three previous attempts to build on this site, their outcome and the role former city officials have played in confirming that the Golden Gateway active recreation center was meant to be preserved as an active recreation center in perpetuity. The Comments and Responses to the 8 Washington Street/SWL 351 DEIR must include this historic information in order to be considered accurate, complete and objective.


 


 



VII. ADDITIONAL COMMENTS ON THE 8 WASHINGTON DEIR


A.  The DEIR’s Introduction presents confusing and conflicting information regarding how, when and by whom environmental review for this project was initiated. The first two paragraphs of the DEIR’s Introduction (pg. Intro.1) raise some troubling questions about how environmental review for 8 Washington was carried out that need to be addressed more completely and forthrightly. The timeline for environmental review is described as follows (quoting from the DEIR):


1. “On January 3, 2007, an environmental evaluation application (EE application) was filed by San Francisco Waterfront Partners II (the “project sponsor”) on behalf of the Golden Gateway Center for a project at 8 Washington Street and the adjacent Seawall Lot 351, which is owned by the Port….(the Port is not a co-sponsor of the proposed project, but has authorized San Francisco Waterfront Partners II to submit an EE application that includes Seawall Lot 351).”


2. “On August 15, 2008, the Port issued a Request for Proposals (RFP) for the development of Seawall Lot 351. Two parties submitted timely proposals: SF Waterfront Partners II and a development group led by Dhaval Panchal (which later withdrew its proposal).”


3. “On November 10, 2008, the Port reissued the RFP for this project.”


4. “On February 24, 2009, the Port Commission authorized Port staff to enter into an exclusive negotiating agreement with SF Waterfront Partners II, finding that the proposal submitted by SF Waterfront Partners II meets the requirements of the RFP and meets the Port’s objectives for Seawall Lot 351.”


It appears from this timeline that the ‘project sponsor’, SF Waterfront Partners, was selected to carry out the 8 Washington project on January 3, 2007 when they were “authorized” (by the Port) to submit an Environmental Evaluation (EE) application officially beginning environmental review. However, there’s no explanation in the DEIR as to why, 18 months later (August 2008), the Port decided to issue an official RFP to select a developer for Seawall Lot 351.


This makes no sense given that Seawall Lot 351 was included in the January 3rd EE application submitted by SF Waterfront Partners (if not as designated developer, then in what capacity?). Then three months later (November 2008), we’re told the Port reissued the RFP with no explanation as to why. Finally, on Feb. 24, 2009, twenty five months after SF Waterfront Partners filed the EE application and began the environmental review process, the Port Commission authorizes staff to enter into an exclusive negotiating agreement with SF Waterfront Partners (SFWP) to develop  SWL 351. This raises troubling questions that need to be addressed in the DEIR to give public officials (and the general public) a clearer sense of the appropriateness, completeness and legality of the current environmental review process.


The DEIR must explain:


1. Is this how environmental review is normally sequenced? Is it routine for a developer that has not yet been selected by the Port to undertake a specific project, let alone negotiated an Exclusive Negotiating Agreement (ENA) with the Port for said project, to submit an EE application to Planning for this project that they haven’t yet been selected to develop and then for the Port, eighteen months later, to issue the first RFP to select a developer for the project and have a developer other than the one who submitted the EE respond to the RFP—then drop out (with     no explanation why in the DEIR), then have the RFP reissued six months later and then finally,
25 months after the current developer of 8 Washington submitted the EE, the Port finally selects said developer (SFWP) as the official developer of 8 Washington and begins negotiating an ENA? Is this NORMAL procedure?


2. How could the Port authorize SFWP’s EE application without a written agreement designating SFWP as the approved developer of SWL351? Is this standard procedure in these matters?


3. If this EE process was, in fact, legal prior to August 2008, why did the Port reverse course on August 15, 2008 and issue an RFP for SWL 351 (a site already included in the EE application filed 18 months earlier)? Doesn’t the initial applicant in the EE process have to be either the property owner or his designated developer and be able to demonstrate site control? How would that have been possible back in January 3, 2007 for SWL 351?


4. What role did SFWP play in drafting the RFP (and Port’s objectives for SWL351)?



5. What reasons did the second respondent to RFP give for “withdrawing his proposal?”



6. Why was the RFP reissued on November 10, 2008?



7. When on January 3, 2007, the Planning Department accepted an environmental evaluation application (EE) “filed by San Francisco Waterfront Partners II (the “project sponsor”) on behalf of Golden Gateway Center for a project at 8 Washington Street and the adjacent Seawall Lot 351”, was Planning aware that San Francisco Waterfront Partners had not been and could not be legally designated as “project sponsor” for SWL 351 at that time?


8. Why didn’t the fact that SFWP had no legal basis to claim that it was the “project sponsor” for SWL 351 invalidate the EE application? The DEIR states that the Port “authorized San Francisco Waterfront Partners II to submit an EE application that includes Seawall Lot 351” but wouldn’t that imply SFWP would eventually be selected as the developer and discourage other developers from submitting responses to the Port’s August 15, 2008 RFP given that SFWP had been working with Planning staff on the environmental evaluation for 18 months already?


9. Is what happened in January 2007 legal? If not, when did the Planning Department become aware of this problem and what did it do about it?


10. Having now publicly described this chronology in the DEIR, what legal impact does this have today on the environmental and project review process?


11. Would any other developer be allowed to begin the environmental review process on a project for which they had neither been designated developer nor had site control?



These questions MUST be answered in the DEIR given the bizarre and confusing chronology that now appears in it regarding how environmental review was initiated for this project.


 


B. In other Port documents related to 8 Washington, San Francisco Waterfront Partners II is described as a partnership between Pacific Waterfront Partners (PWP) and California State Teachers Retirement System (CalSTRS). However, the involvement of CalSTRS in this project appears nowhere in the DEIR. Given that CalSTRS has already spent over $23 million dollars in predevelopment funds for 8 Washington, the DEIR must contain some mention of CalSTRS as a member of this partnership and the fact that the same partnership (PWP and CalSTRS) developed Piers 1½, 3 and 5 across The Embarcadero from this site.


Finally, the first sentence of the Introduction to the DEIR refers to the fact that “on January 3, 2007 an environmental evaluation application (EE) was filed by SF Waterfront Partners on behalf of the Golden Gateway Center   for a project at 8 Washington”. That footnote references “Golden Gateway Center, Authorization Letter from Timothy Foo dated Dec. 27, 2006.”


For this DEIR to be complete and accurate it must address several key questions including:


1. Who is developing this project? Pacific Waterfront Partners?  CalSTRS? Golden Gateway Center (Timothy Foo)? What are their relationships to each other and the proposed project?


2. What precisely is the relationship between these three entities and the Port?


3. What was the understanding between SFWP, Timothy Foo and the Port when SFWP submitted its EE application on behalf of Golden Gateway Center? All three are mentioned in the relevant discussion in the DEIR.


C. The DEIR is inadequate and incomplete due to its failure to include A Community Vision for San Francisco’s Northeast Waterfront. The DEIR is inadequate and biased in discussing the Planning Department’s Northeast Embarcadero Study (NES), while failing to include an equally detailed discussion of the background and recommendations of the study prepared by Asian Neighborhood Design entitled A Community Vision for San Francisco’s Northeast Waterfront, dated February 2011, which was presented to the Planning Commission on July 7, 2011. 


The second sentence in the third paragraph of the Introduction states that the purpose of the Northeast Embarcadero Study (NES) was “to foster consensus on the future of Seawall Lot 351 and at other seawall lot properties on the northern waterfront” and leaves the reader with the impression that it succeeded in this goal by stating how many public workshops were held (five) and “on July 8, 2010, the San Francisco Planning Commission adopted a resolution that it ‘recognizes the design principles and recommendations of the Study’ and urges the Port of San Francisco to consider the recommendations of the NES when considering proposals for new development in this area”.


To be accurate and truthful, the DEIR should mention the level of anger and frustration expressed by the majority of the public that attended these five workshops who felt the Port, who was paying for the NES, was dictating its conclusions in order to facilitate the approval of the
8 Washington. For example, when 30-40 people at a workshop opposed the notion advanced by Planning staff that The Embarcadero needed a “hard edge” and that “higher heights” were appropriate for the 8 Washington site and only 6-8 people expressed support for these ideas, the notes from that meeting would later say that opinion was divided on these matters. To its credit, the Planning Department states clearly in the final draft of the NES that they failed in their goal   of achieving consensus on the future of SWL 351.


The DEIR needs to include this information to provide a more accurate representation of the outcome of the NES process.


People were so upset by what they perceived as a transparent attempt to ‘justify’ 8 Washington, that they began their own community-based planning process to address the larger issues of reconnecting Chinatown, North Beach, Russian Hill and Telegraph Hill to the Waterfront; healing the wounds left by the ramps to the Embarcadero Freeway by making Broadway, Washington and Clay Streets more pedestrian, bicycle and transit friendly; and fostering consensus on the future of Seawall Lot 351 and at other seawall lot properties on the northern waterfront.


Four major community organizations representing thousands of local residents, small businesses        and property owners became the primary sponsors/organizers of this “Community Vision for the Northeast Waterfront” and hired Asian Neighborhood Design to assist them in developing it.    These organizations included: Friends of Golden Gateway; Golden Gateway Tenants Association; Telegraph Hill Dwellers and Barbary Coast Neighborhood Association. Stakeholders from Chinatown, Russian Hill, Nob Hill, Fisherman’s Wharf and other neighborhoods also participated.


On July 7, 2010, when the Planning Department staff presented the NES to the Planning Commission, AND and the four sponsors of the “Community Vision for the Northeast Waterfront” were invited to present a summary of their planning work to date.


The DEIR fails to make any mention of the alternative plan created by these four community groups with AND’s help. It needs to describe this study, how it differs from Planning’s NES and include it in the final EIR so public officials can evaluate the merits of both studies for themselves.
 
The DEIR must describe the reasons why this alternative community planning process was undertaken and include a detailed discussion how the proposed project would or would not conform to each of the recommendations contained in A Community Vision for San Francisco’s Northeast Waterfront?


I am attaching a copy of the AND Study: A Community Vision for San Francisco’s Northeast Waterfront to these comments and ask that it be included in the EIR so that readers and public officials can gauge for themselves if it was more successful in “fostering consensus on the future of Seawall Lot 351 and at other seawall lot properties on the northern waterfront” than the Planning Department’s Northeast Embarcadero Study (NES).


D. The DEIR tries, unsuccessfully, to minimize the loss of iconic views of Coit Tower and Telegraph Hill from in front of the Ferry Building with its argument about ‘episodic’ views and a new claim that “trees” already obscure the views of Coit Tower from in front of the Ferry Building, views enjoyed by millions of tourists, residents and office workers each year.  As demonstrated in Figure IV.B-3: View B (page IV.B.7), the height and mass of the proposed project would completely obstruct views of Coit Tower and Telegraph Hill currently seen from the Embarcadero Promenade at the northern end of the Ferry Building. This significant adverse effect on the visual quality and scenic vistas enjoyed by the public puts the project in direct conflict with a number of city and Port planning policies. The DEIR’s conclusion that this would not create a substantial adverse effect on a scenic vista because “Coit Tower and Telegraph Hill would continue to be visible from numerous vantage pointes in the vicinity of the Project site and the City” is a biased and subjective judgment that is not based on fact. This ‘episodic’ argument could be used to claim that NO building ever blocks an important view because if you walk far enough past the offending structure, you might get the view back.
The comment about trees blocking the view of Coit Tower from in front of the Ferry Building must be stricken from the document. I just came from standing at the main entrance of the Ferry Building and I could clearly see Coit Tower and most of Telegraph Hill. While several trees in front of the F-line stop across the street did impede the view around the edges, these trees could easily be pruned to eliminate the problem.



E. The DEIR’s Traffic and Transit Data is Seriously Out of Date.


The traffic data relied upon by the DEIR in reaching its conclusions is incredibly stale, having been based on surveys done in 2006-2007 and with 2000 census data (page IV.D.5 of the DEIR).  These studies must be updated.  For example, the assumptions made in the DEIR that the existing conditions at the Embarcadero/Broadway and Embarcadero/Washington intersections are “satisfactory” (at LOS D) defy logic.  Anyone familiar with the real time conditions at these intersections knows that this assessment could not be based on a factual analysis of current conditions at peak periods which, by the way, often occur on weekends (not studied in DEIR).


Also out of date is the transit information relied upon by the DEIR in reaching its conclusion that the project would not result in significant transportation impacts to transit systems (Impact TR-2), having been based upon data on capacity and utilization of individual MUNI lines from 2007 (page IV.D.9 of the DEIR).  This data should also be updated. For example, whoever was responsible for the assumption in the DEIR that the F-Line is not at capacity during peak periods has never ridden the F-line at peak periods. The America’s Cup will only make this worse.



F. The DIER belittles Pedestrian Safety Issues. The DEIR states that: “Conflicts between pedestrians and vehicles could occur at the project garage driveway, which could cause the potential inbound vehicles to queue onto Washington Street. Outbound vehicles would queue inside the garage and would not affect street traffic. Conflicts between outbound vehicles and pedestrians could still occur, but their effect on pedestrians would be reduced because pedestrians on the sidewalk have the right-of-way.” (page IV.D.25). I’m sure the fact that pedestrians have the right-of-way is of great comfort to families of children and seniors who’ve been struck and killed by cars. This statement is insulting and MUST be stricken from the DEIR. It’s also not true.


In the very next paragraph the DEIR makes the following statement about these potential vehicular and pedestrian conflicts at the garage driveway:


“The number of vehicles and pedestrians per minute are relatively small (about one vehicle and three pedestrians every 30 seconds on average) and it is therefore not anticipated that the proposed project would cause any major conflict or interfere with pedestrian movements in the area.” (page IV.D.25)


These numbers translate to 2 cars and 6 pedestrians every minute or 120 cars and 360 pedestrians an hour (or approximately 1,440 cars and 4,320 pedestrians coming into potential conflict in any given 7 am to 7 pm period).  The DEIR’s conclusion that such conflict between vehicles and pedestrian movement would be “less than significant” makes no logical sense and is simply not supported by the facts presented in the DEIR. 


G. The DEIR must include a new fence around the Golden Gateway Tennis and Swim Club in its NO PROJECT Alternative. Finally, the comments often heard about the “ugly green fence” around the GGTSC reminds us that the DEIR must let the reader know that it is the owner of the property, Mr. Timothy Foo, who is responsible for the ugly “green fence”. First, he has put the GGTSC operator on a month-to-month lease making it difficult for them to make a substantial investment in a nicer fence. Second, Mr. Foo himself stands to gain financially if 8 Washington is approved, so he has no incentive to fix the fence since its unsightliness is being used as an argument for demolishing the current facility. This simplest way to correct this bias would be to:


Include a rendering of the site with a new, attractive fence in the NO PROJECT alternative .


For the reasons stated in this letter, I believe this DEIR is seriously incomplete and inadequate to address the potentially significant impacts of this project.  I urge you to revise the document and re-circulate it in draft form.


Sincerely,


 


Brad Paul


 


 


 


 


 


 


 


 


 


 


 


 


 

California dreaming

2

arts@sfbg.com

HAIRY EYEBALL In his review of the latest Venice Biennale, Boston Globe art critic Sebastian Smee threw down something of a gauntlet when he wrote, “The received wisdom is that contemporary art is mostly about ideas. In truth, however, it’s mostly about gestures.”

Smee’s generalization offers plenty to chew on and plenty to disagree with. For starters, it implicitly presents one of art’s oldest chicken-egg scenarios — one that was muddied decades ago by Marcel Duchamp and later Conceptual Art — as a false choice between thought and spectacle, sustained engagement and capricious showmanship.

But it can also be read as a pretty spot-on diagnosis of the current moment in art — at least, as refracted through the fun house mirror of the Biennale — in which having a gimmick, however thought through or critically engaged, or bringing out the big guns guarantees attention in an increasingly crowded market already clogged with gimmicks and big guns.

Bay Area Now, Yerba Buena Center for the Arts’ triennial snapshot of local creative culture, is the closest thing the Bay Area has to the Biennale and also, thankfully, the furthest thing from it. Still, Smee’s comment provides a useful rubric for navigating its sixth installment, which is full of gestures (some well-executed, others not so much) that at times overshadow the ideas (some half-baked, others worth mulling over) they’re meant to put across.

Visual art curators Betti-Sue Hertz and Thien Lam have pared the number of participating artists, now augmented by art collectives, to a tidy 18. This smaller range gives each participant’s work — most of it created especially for BAN6 — a little more breathing room, although the exhibition’s layout isn’t exactly conducive to following the connecting threads (environmentalism, geopolitics, Americana, and local subcultures, among other topics) unspooled in their curators’ statement.

Tammy Rae Carland’s wonderful series of work about the self-effacing price female comedians have had to pay (and continue to pay) to get a laugh is the first thing you see when you enter. But her photographs of local comediennes in ambiguous forms of self-presentation, text pieces that isolate the painful punch lines of Phyllis Diller, Joan Rivers, et al., and banana peels cast in brass are spread between two floors: a confusing arrangement if you don’t directly proceed up the stairway next to which Carland has created an elegiac installation that, save for the large helium balloons suspending a porcelain microphone, is also easy to miss.

YBCA’s main gallery is another case in point: it’s a good site for large installations that pack a lot of visual impact (think Song Dong’s Waste Not or Nick Cave’s soundsuits), but can pose a challenge for arranging groups of smaller-scale pieces coherently. It’s too bad, then, that the three box-like structures housing works by Brion Nuda Rosch, Rio Babe International, and Chris Sollars cut diagonally across the space like a semipermeable wall of shipping crates. Incidentally, these installations are also some of BAN6’s least compelling pieces.

Harder to ignore is Ben Venom’s See You on the Other Side, a giant quilt whose centerpiece motif of snakes sprouting from a human skull, all made from old metal band T-shirt scraps, only becomes visible as your eyes adjust to the surrounding negative space. It is, in a word, awesome. But it’s also a canny fusion of craft traditions already present in metal subcultures — the quilt is flanked by two cut-off embroidered and studded denim vests, familiar handmade vestments of the tribe — with an older American precedent.

Quilting is also taken up in Suzanne Husky’s nearby Sleep Cell Hotel installation, a collection of three potentially inhabitable nest-like wooden structures that resemble porcupines, replete with quilts covered in radical slogans. A goofy infomercial touts the dwellings as the next development in politically conscious eco-tourism, while a hand-drawn sign warns of their structural unsoundness. Husky’s isolation tanks take the piss out of radical chic and backpackers alike while questioning the impact even the most well-intentioned and off-the-grid 21st century nomads leave in the wake of their habitats beyond carbon footprints.

That question is reframed in more ambiguous terms by Ranu Mukherjee’s wonderful series of drawings and watercolors of “nomadic artifacts” located in YBCA’s smaller second gallery. Each work is based on an image or stories sent to Mukherjee by friends and associates that reflect their conception of the nomadic, a process of translation neatly embodied by the blank fields against which a camper van or an ancient Egyptian temple is depicted. Isolated from their original contexts, these purloined postcards from the edge form an ongoing archive of mobile existence (the call for submissions is still open).

This second room — darkened to accommodate a video projection by Mukherjee as well as Sean McFarland’s crepuscular, large-format photographs of forest interiors — is actually BAN6’s most coherent grouping, with Weston Teruya’s architectural model-like paper sculptures and Richard T. Walker’s winsome three channel video installation rounding out a chorale of differing takes on land use, abuse, occupation, and representation.

In many cases at BAN6, ambition tends to exceed execution, but the results — as with Tony Labat’s large neon marijuana leaf that, seen from the outside, makes YBCA’s Mission Street lobby look like the city’s chicest pot dispensary — still pack a punch. Whether that is enough, or enough for a “moment in time” group survey such as this, is another question.

BAY AREA NOW 6

Through Sept. 25

Thurs.–Sat., noon–8 p.m.; Sun, noon–6 p.m., $5–$7

Yerba Buena Center for the Arts

701 Mission, SF

www.ybca.org

 

Guardian forum: Tenants, housing and land use

18

Should be a great forum July 14. We’ve got a panel on tenants, housing and land-use issues, some of the key stuff for the future of the city. Great group of speakers — and, as always, we’ll be looking for ideas and input from the audience. This isn’t a mayoral debate (that comes later); it’s a chance for progressives to talk about the issues that the next mayor needs to address and come up with a platform.

Speakers:

FEATURING:
Sara Shortt, Housing Rights Committee
Ted Gullickson, SF Tenants Union
Nick Pagoulatos, Dolores St Community Services
Sue Hestor, Land Use Attorney

We may have some more suprise guests, too.

Lots of time for discussion afterward.

It’s at 6 pm (until 8 pm) at the City College Mission Campus, 1125 Valencia. More details here. See you there.

 

 

Parks Inc.

6

steve@sfbg.com

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Is LEED really green?

news@sfbg.com


The archangel of sustainable development has arrived, promising much needed city housing that will add to the “social fabric of the waterfront community” with its glamorous green rooftops and unheard-of bay views. This is going to be the greenest building of them all, or so we’ve been told, but the truth is a bit more complicated.


A condominium development 25-plus years in the making, 8 Washington would transform the site of the Golden Gateway Tennis and Swim Club near Pier 39. The developer plans to renovate the recreation center with a larger fitness facility, provide two new waterfront parks with public access, and supply 30,000 feet of ground-floor retail stores and restaurants beneath its 165 new luxury apartments.


Sounds nice, doesn’t it? The problem with this $345 million project is that it’s being touted, with its “green building” LEED certification, as the most sustainable structure it can possibly be.


But there’s nothing sustainable about building high-end condos in San Francisco, a city with too many high-end condos and not enough affordable housing. And LEED (Leadership in Energy and Environmental Design), the most popular sustainable development certification system in the country, is a lie — at least as your friendly neighborhood building developer is marketing it.


LEED, the baby of the U.S. Green Building Council (USGBC) is a great marketing tool for developers in San Francisco, the city with the single most LEED certified buildings in the United States. San Francisco was just named the “greenest” city in North America at the 2011 Aspen Ideas Festival, largely due to its extensive representation of green buildings — which normally means structures built with recycled materials, near a transportation hub, featuring some solar panels or other renewable energy sources.


“LEED is certainly a positive thing,” Planning Commission President Christina Olague told us. “There’s this whole push toward green sustainability.”


The project’s “platinum” LEED status is all a San Francisco developer could hope for to attract the green — and more important, the city’s approval.


“LEED certification is part and parcel to the vision for the project,” said PJ Johnston of PJ Johnston Communications, speaking for the developer. “The city, neighborhood, and waterfront deserve healthy, sustainable structures, living spaces, public spaces, and amenities. That’s exactly what 8 Washington will bring.”


LEED has become the final word in green building — if your building is LEED certified, you’re golden. But all this green they’ve been feeding us is really a misleading, incomplete rating system.


The first thing to consider is that sustainable development, even if it uses recycled materials and 10 percent sun-powered electricity, is still development. Any time a structure is torn down, “the energy and materials in that [original structure] are going to get sent to landfills somewhere. You gotta calculate all that,” said sustainable development activist Brad Paul, a former SF deputy mayor, who believes in considering the entire “life cycle of a building” in determining its sustainability.


Even the Environmental Protection Agency sometimes discounts essential considerations of sustainable building. When it sought a new SF office space in 2009, its intention was to find a home that was “a model of sustainable development,” the SF Biz Times reported. But its first choice was to build new development, at the site at 350 Bush Street — with its environmental costs of demolition, throwing out old materials, and starting from scratch.


Last month, the EPA decided to remain at 75-95 Hawthorne Street instead of moving to a new building, but not because it was the sustainable choice. No deal was reached for 350 Bush, and as Regional Public Affairs Officer Traci Madison said, “There was no other option to choose from.”


Although it’s a measure of a structure’s material sustainability, LEED does not consider a building’s life cycle, or even its use. Consider 8 Washington. The developer has boasted that it’s the most expensive housing project in San Francisco history, with a hefty price tag of $3 million to $10 million per apartment.


“Who can afford these luxury condos, and what do they use them for?” Paul asks. “These guys who work for hedge funds on Wall Street,” who use the condo as a second or third home and commute on their private jets to get there.


Johnston said 8 Washington will be marketed to a “mix of buyers, including young professionals, empty-nesters looking to move back to San Francisco, and families … The project has many two- and three-bedroom units, encouraging family living,” he said. But it’s unlikely that those who can afford a condo of this luxury will make it their only home.


“[Board President] David Chiu says he’s worried about SF becoming a bedroom community for Silicon Valley,” said Paul. “I’m more worried about this being a bedroom community for New York, Boston, L.A.”


Instead of providing the affordable housing that San Francisco so needs, projects like 8 Washington attract the wealthy, who aren’t using public transportation. Instead, Paul said, they burn tons of fossil fuels using their new condos as weekend getaways.


 


LEED FOR THE RICH


LEED certifies buildings as “sustainable developments” based on the following categories: sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, and innovation in design and regional priority.


Earning points in each category brings a building closer to LEED certification, which requires at least 40 points. Above “silver” and “gold” status, a “platinum” LEED certification requires 80 points. But how builders get the points is what matters. For example, a developer might skimp on the insulation to install extra solar panels and get more points for a less efficient building.


Does LEED consider a building’s actual use? “The short answer is no,” said Jennifer Easton, a communications associate at the USGBC who added, “We want [LEED] to be used by every type of project.” But despite its billing, LEED tells an incomplete story.


“It’s just green drapery,” said SF attorney Sue Hestor, a slow growth advocate. “They’ve really had a PR machine. They keep touting all this greenness.”


LEED certification has value, Paul said, but it doesn’t turn multimillion dollar condos green. “There is absolutely no need for high-end luxury housing in the city right now,” he said.


Building luxury condos in place of affordable housing encourages the “Manhattanization” phenomenon, attracting wealthy out-of-towners to expend fuel on their private jets to get to their new crash pads.


“They aren’t gonna be living there all year,” Olague said of residents of luxury housing. “We hear a lot of, ‘We need more housing.’ If you keep building housing for the top 2 percent, how does it lessen the demand on your average workforce?”


But not everyone sees luxury condo-building as counterproductive. “Building that project actually allows for more affordable housing,” said Gabriel Metcalf, executive director of SPUR (San Francisco Planning + Urban Research Association). “It’ll provide housing for some people, and that can only be helpful to the housing market. If you don’t build new condos, then people just compete for the crumbs, and that means people who are rich push the rest of us out.”


In other words, if you give the rich housing, then they won’t take over your flat in the Mission — if they ever really wanted it in the first place. “I don’t think we can impose some kind of hipster elitism that they’re not our kind of people so they’re not allowed in,” Metcalf said of the wealthy out-of-towners.


LEED agrees. “We don’t want [LEED] to be for one specific group of people,” Easton said. “We have LEED-certified homeless shelters, but having a LEED certified luxury condo building is an advantage. We can’t control if someone is flying across the country in a jumbo jet every day — but we can control their energy efficiency in a building.”


 


WHO RIDES BUSES?


For the typical working class San Franciscan, living modestly is a must and public transportation is essential. So there’s an inherent environmental advantage to attracting residents who don’t rely on polluting planes and cars.


“There’s a definite need for workforce housing, middle class housing in San Francisco,” Paul says. “I guarantee you none of those people get there by private jet. The less income people have, the more likely they’re going to be to use public transit.”


But 8 Washington and luxury developments like it don’t foster public transit. The more wealthy people who move in, the more low-income residents get displaced — to the East Bay or other areas with more affordable housing. It’s another strike against sustainability when these workers opt to drive back into the city for work instead paying for BART, says Paul, particularly when they drive older, less-efficient cars.


“LEED was a way to spell an environmentally friendly product, but you have to figure in the extra driving,” said Paul.


But 8 Washington gets LEED points for building on a site close to public transit in an attempt to discourage individual car pollution. But will wealthy condo owner actually take the infrequent F-line with all the tourists instead of parking their $150,000 car in the underground parking garage right below their feet?


“When you’re talking about sustainable practices and reducing greenhouse gas emissions and how it relates to land use planning, it makes you wonder if that’s supposed to [solely] relate to housing people near transit corridors,” said Olague. “It seems to me you have to look at equity.”


The garage at 8 Washington, to be built below sea level under the condos, will house 415-plus parking spaces. The developer says that 250 of the spaces will be offered as public parking for the busy Ferry Building down the street, but the 165 additional spaces guarantee one parking space for each residential unit.


“Given the larger size of the residential units and the fact that the majority of the units are two to three bedrooms, we believe that one parking space per dwelling is appropriate,” said Johnston. Appropriate, maybe, but not environmentally friendly.


 


PROMISES AND REALITY


Wealthy people and affordable housing aside, LEED doesn’t actually measure the energy used in a building, says New York City-based architectural associate Henry Gifford. He filed a $100 million class action lawsuit against LEED last October for gaining a monopoly on the sustainable development market by making false claims about buildings’ energy savings.


“They say that the building is required to be energy efficient. But the building doesn’t have to be energy efficient — it just has to earn points, to promise it’s going to be energy efficient,” Gifford said.


It’s up to the developer what computer software is used to predict a building’s energy efficiency, and Gifford says that computer diagrams can easily be manipulated and do not consider inconsistent factors, like weather.


“California is the promise land,” said Gifford. “All you’re required to do is provide a promise. The sad thing is that it removes all the integrity from the process — it encourages lying.”


Furthermore, once the building is built and has achieved LEED certification, the building’s actual energy use in its life cycle isn’t considered. The only way you can truly know if a building is energy efficient is by looking at the utility bills, says Gifford. But once it’s LEED-certified, who cares?


There is a voluntary program called Building Performance Partnership (BPP) that tracks a building’s energy and water use over time. “The idea is we want LEED to be a system where it enacts change in the actual building,” said Easton. But the problem is the building has already gained LEED certification before the first utility bill is even mailed.


“We publish baseball scores. With everything in life, people get scored,” said Gifford, who operates with transparency in developing energy efficient buildings in New York, hosting open houses after buildings are built with printouts of their recent utility bill history.


LEED was never intended to have the final say on sustainable building, to be a seal of green approval, according to a New York Times op-ed by Alec Appelbaum last year (“Don’t LEED us astray,” 5/19/10). “Rather it was to be a set of guidelines for architects, engineers, and others who want to make buildings less wasteful. However, developers quickly realized that its ratings — certified, silver, gold, or platinum — were great marketing tools, allowing them to charge a premium on rents.”


Therein lies the issue. Yes, 8 Washington will “allow for more ‘eyes on the street’ at all hours of the day” and provide two or three-bedroom units for families who can afford them, as it promises. But a sustainable structure is far different than the promise of a sustainable life cycle of a building. And a promise is just that. *


UPDATE: Jennifer Easton at LEED wrote to inform us that, although the 8 Washington website clearly states that the project will include LEED certified buidlings, “We would like to clarify that 8 Washington is not a LEED-certified project, nor a LEED-registered project.”


 


PLANNING COMMISSION HEARINGS


July 7: Community Vision for San Francisco’s Northeast Waterfront


July 14: City demographics and sustainability; the need for low-income housing; presentation of “jet fuel burn rate” argument.


July 21: 8 Washington’s EIR approval hearing


All hearings to be held at 12 p.m. in the Commission Chambers, Room 400, City Hall, 1 Dr. Carlton B. Goodlett Place.




JET FUEL BURN RATE FOR LUXURY CONDOS


 


Let’s assume that just five of the 165 condo buyers at 8 Washington (3 percent) are Wall Street hedge fund traders or venture capitalists using them as second or third homes. Let’s also assume they’ll use them 1.5 times a month and commute to SF aboard their business jet, a reasonable assumption for Wall Street execs making tens of millions in salary and bonuses. Why would they fly by private jet rather than take Southwest or Amtrak? Because they can. This must be factored into any environmental analysis of a project that explicitly markets to this demographic and include the following:


Mid to large size business jets used to fly cross country (Hawker 800XP, Gulfstream G2/ G3, Bombardier Global Express) on average burn 400 gallons of jet fuel/hour, take 6 hours to fly New York to SFO and 5 hours for return trip. Therefore, a single round trip burns:


11 hours X 400 gallons per hour = 4,400 gallons of jet fuel per trip. A typical family car uses 1,200 gallons of gas per year, so one flight from NYC to 8 Washington equals almost four years of driving a family car.


1.5 trips/mo. = 6,600 gallons X 12 months = 79,200 gallons of jet fuel/year or the equivalent of driving a family car for 66 YEARS each month.


Using our example of five residents, the numbers over one year and 20 years are:


5 X 79,200 gallons/per year = 396,000 GALLONS OF JET FUEL A YEAR or equal to driving a family car 330 years, A THIRD OF A MILLENNIUM, each year.


396,000 gal. X 20 yrs. = 7,920,000 gallons of jet fuel, equivalent of driving family car 6,600 years, OVER 6 MILLENNIUM, in 20 years.


Given this reality, the 8 Washington environmental impact report must analyze such questions as:


How many solar panels are needed compensate for burning 396,000 gallons of jet fuel/year? How many low flow toilets would make up for burning 396,000 gallons of jet fuel/year? Etc.

Not in our neighborhood

6

news@sfbg.com

San Francisco faces an enormous shortage of affordable housing for young people at risk of homelessness, but a pair of projects intended to address the issue are under fire from neighborhood activists in supervisorial District 2, home to the city’s wealthiest residents.

The proposed conversion of the defunct Edward II Hotel and the major overhaul at the Booker T. Washington Community Service Center (BTWCSC) could create a combined 74 units of affordable housing for vulnerable youth, complete with services and support systems to help young people coming from foster or homeless families.

“We are building houses for young people who are getting their start in life,” said Julian Davis, president of the board of BTWCSC. “There was a great need for foster youth housing that has been studied ad nauseam … Our center wanted to contribute.”

But both projects have run into strong neighborhood opposition that appears to have turned D2 Sup. Mark Farrell against the projects as proposed, despite initial support for the BTWCSC project by both Farrell and his predecessor, Michela Alioto-Pier. Farrell’s approach has frustrated project opponents and caused the representative of a neighboring district, Sup. Ross Mirkarimi, to sponsor the project.

“The project emanated from Michela Alioto-Pier and she supported the original project, which is why I joined her in support and it initially appeared that Sup. Farrell was joining that support,” Mirkarimi told us, noting that he is continuing to champion the project because it borders his district and because “the Booker T center has a long reach and serves clients from throughout city.”

After hearing from constituents concerned about parking, the size of the five-story building that is proposed, and other issues, Farrell dropped his sponsorship of the project and submitted alternative legislation that cut the building to four stories, presenting it to project proponents without their input as a take-it-or-leave-it proposal.

“The thing I find most puzzling about this is the lack of communication with me personally,” BTWCSC Executive Director Pat Scott said of Farrell, noting how helpful Alioto-Pier and Farrell’s staff had been before opponents convinced him to drop his support for the project. “I was a little taken aback, quite frankly. I would just assume that he’d talk to me.

But Farrell said he was simply trying to heed neighborhood concerns and craft a compromise that would get neighbors to drop their lawsuit threats and appeal of the Planning Commission’s 6-1 vote to approve the project. “I can’t control what happened in the past, I’m only here to make sure everyone is happy now,” Farrell told us. “I absolutely support the project, I think the community center is great … We’re arguing over a story.”

Yet Scott noted that project proponents already had compromised on a project that was initially proposed for eight stories, and she said that even at five stories, it isn’t coming anywhere near what the city actually needs. So while Farrell casts it as a fight over one story, Scott said, “10 units is a big thing in a city that has nothing for these kids.”

That need was outlined in a 2007 report by the Mayor’s Transitional Youth Task Force. The group of city officials and nonprofit providers, convened by then-Mayor Gavin Newsom, studied issues affecting at-risk youth between the ages 16 and 24 and one of the major needs identified was housing.

A follow-up study found that 4,500 to 6,800 young people are “homeless or marginally housed each year.” The citywide affordable housing stock for this population sat at meager 314 units at the time.

“We are not doing a good enough job as a city and as a state [to help at-risk youth],” Davis said. “Once they leave the foster care system, there is very little support for them.”

The report called for 400 new affordable housing units for this population to be completed or under construction by 2012. Edward II and BTWCSC are located in the Marina and the Western Addition, respectively, in proximity to affluent neighborhoods in a district with a dearth of affordable housing.

“With supportive housing [going] into neighborhoods that never had affordable housing, there is a certain unknown and it makes people uncomfortable,” said Gail Gilman, Executive Director of Community Housing Partnership, which owns and manages the Edward II project.

Patricia Vaughey, a resident of the Marina-Cow Hollow area since 1976, is perhaps the most vocal critic of the project. She has used the neighborhood associations and every other city forum she can find as platforms to lambaste the plans. “It just kills my soul to see this project,” she told us, voicing a variety of concerns about how the project would be managed. “I am so worried about the kids … We are asking for the best program in the country and we are not getting it.”

Yet Gilman said that considerable energy and many resources have been invested in designing Edward II and that she trusts Larkin Street Youth Service, a respected nonprofit agency, to do the programming. “We chose to partner with Larkin Street because they are the experts in this area,” she said.

Vaughey characterized the stretch of Lombard Street between Divisadero and Van Ness streets, where Edward II will be located, as marred by crime and prostitution and unsuitable for this project. “We have a little Tenderloin down here,” she said.

Gilman disputed that characterization and said the building was chosen after an extensive search and that it met the criteria of having the right sized building in a safe neighborhood with good access to public transit and open space.

But many residents have expressed concern over the pending change to zoning for the building. And if the BTWCSC project couldn’t win Farrell’s support, the Edward II project faces an even more uphill battle because Farrell told us, “There’s an even stronger level of neighborhood concern over that project…. It’s going to be a tough hill to climb.”

The contentious issue under review by the Planning Department is an application to expand the density limit from 16 units to 24.

John Miller, president of the Marina Community Association, said that “from a neighborhood dynamic perspective,” a change to density is problematic. He said changing the density for one building is a slippery slope that could hurt the entire neighborhood. “Higher density is inconsistent with the neighborhood. It could work beautifully at lower density.”

Miller said potential renters in the vicinity would be concerned with “loitering that could occur when people are coming and going … With so many people there is no sense of community”

Yet as with BTWCSC, proponents say simply slashing the project to a smaller size would kill it because then it wouldn’t pencil out financially. Making an issue of density is therefore obstruction of the project because compromise cannot be reached on the issue.

Farrell, a venture capitalist, said he ran the numbers on BTWCSC and believes it would still be a viable project at four stories if the Mayor’s Office of Housing is able to offer some unspecified assistance, as he said the officials there have pledged to him they would. “I know we need more affordable housing,” Farrell said, rejecting suggestions that D2 residents tend to oppose all affordable housing projects. “I don’t think that should be a part of this conversation.”

Farrell criticized the outreach done by Edward II proponents, telling us, “I don’t think it was done in a tactful way.” But Miller said a recent meeting with Gilman and others was positive. “It was an effort on their part to respond to the neighborhood concerns as best they can,” Miller said.

“We are confident we can partner with the community in a proactive way to address the concerns that are addressable,” Gilman said. “If we diligently work with the community, we can have positive project.”

Edward II is on track to come before the Planning Commission in mid-July, while the appeal of the BTWCSC project is scheduled to be heard by the Board of Supervisors Land Use Committee on June 6 at 1 p.m. Neither Mirkarimi nor Farrell offered predictions, but both said the issue of whether the project should be four or five stories will likely be a key part of the discussion.

“Coming through the process has made me super supportive of all plans for transition age housing. I was already a supporter but this made me a fervent supporter,” Scott said. “The amount of opposition by people who don’t care what happens to our children — it makes you want to fight.”

Editor’s notes

8

tredmond@sfbg.com

I’m tired of stories about poor San Francisco landlords. Because residential landlords in San Francisco have a great gig — and almost none have any right to complain about it.

The latest tale appeared in The New York Times May 1, with a longer version in the Bay Citizen the same day. It involves Wayne Koniuk, who owns a building on Divisadero Street. He has a shop where he makes prosthetic devices and two units upstairs.

Koniuk inherited the building from his father. He cleared out one of the units and moved in one of his sons. Now he wants to evict the tenant in the remaining unit — Robert Murphy, a senior citizen and retired union worker living on a fixed income — so he can move in his other son. Turns out that’s not easy. Koniuk is upset, and the Times presents his case: after all, Koniuk owns the building. Why can’t his children live there?

It’s an interesting question that drives a lot of passions in this town (the Bay Citizen has almost 100 comments on the story; my blog post on the subject has 65). And it gets to the heart of what rent control and regulations on property and land use are about.

See, by law — and public policy — the fact that Koniuk owns the building and Murphy rents is largely irrelevant. A long-term tenant in a protected class (in this case, someone over 60) who pays the rent on time every month and has created no nuisance has a right to stay there, except in limited circumstances. Yes, that’s an infringement on the “ownership” right of the landlord — but those rights are already strictly limited. I own a house — but not the right to demolish it, or the right to build a second unit in the basement and rent it out, or the right to add three stories to the top, or the right to turn it into a gas station or a Burger King. I knew those things when I bought the place — and if I didn’t, I should have. In San Francisco — a dense city with tight zoning laws and a legally certified housing crisis — property owners have limited rights.

They also have low property taxes (under Prop. 13), and the value of their investments keeps rising. Not a bad deal at all.

When you buy, or inherit, a building with a tenant who qualifies for protection under the city’s Rent Stabilization Ordinance, you don’t have the right to raise the rent more than a certain percentage every year. And you don’t have the right to evict the person, except for what the law calls just cause. (Just cause, by the way, typically does allow eviction to move in a relative — but it’s harder if you’ve already done one such eviction and if the tenant is a senior or disabled.)

Koniuk has a place to live (in Belmont); both his sons have places to live. They are, by definition, better off than Murphy, who is facing the prospect of no place to live at all. I’m not shedding any tears for the poor landlord. 

 

Historic preservation debate raises a slew of questions

The Board of Supervisors Land Use Committee spent several hours yesterday hearing from city officials and members of the public on the hot-button issue of historic preservation. The informational hearing was called by Sup. Scott Wiener, who framed it as a discussion about “the impact of historic preservation policies on other major public policy goals and the need to adopt legislation to ensure that the policies are achieved” — a statement that raised alarm bells among historic preservationists and sent members of that community out in droves to defend preservationist efforts and to urge Wiener not to weaken any of the city’s existing policies.

Wiener raised concerns about the time and expense associated with environmental impact reviews (EIR) that could be triggered if a property falls within an historic district, saying, “there’s a sense that the cost is rather high, and the time it takes is rather high,” and added, “a lot of times we order an EIR, and that’s the end of the project.” He also raised questions about whether historic preservation efforts placed too many constraints on upgrading transit-oriented neighborhoods, parks, and libraries.

While Wiener had opened the debate in order to highlight problems associated with historic preservation policies, preservationists packed the room to defend their efforts. “I am dismayed that the importance of historic preservation is being challenged,” June Osterberg noted during public comment. She charged that San Francisco had gone from being “a paradise for residents to a developers’ paradise, to my despair. Please do not diminish the importance of what’s left in San Francisco.”

Arthur Levy noted, “If you go back to 1967 [when policies were first created] you will see that preservation has not thwarted or trumped development” in the decades since. “There’s nothing the matter systematically,” he added.

Wiener seemed surprised by some of the strong reactions. “They thought I was going to start knocking down the Golden Gate Bridge and the painted ladies,” he told the Guardian. He insisted that while he supported historic preservation, he wanted to have a conversation about balancing it with other policy goals, since “it’s an issue that has a lot of pent-up demand.”

The Historic Preservation Commission (HPC), created in 2008 with voter approval of Proposition J, has drawn criticism from members of the development community who’ve suggested that the panel would “shrink wrap” the city, stifling new building projects at a time when unemployment is particularly high in the construction sector. Yet Mike Buhler, executive director of San Francisco Architectural Heritage, noted that the city’s Historic Preservation Commission had given the green light to all but one project proposal that came before the it, suggesting that fears of the HPC freezing out potential development were unfounded.

Asked after the hearing how he reacted to those sending the message that everything was fine, Wiener noted, “In some respects, things are not fine,” citing the lengthy historic review process and lack of clarity on certain requirements.

Meanwhile, Sup. Malia Cohen took a different tack in her line of questioning on this issue. She wanted to know if teams of surveyors who conduct neighborhood assessments for designating historic districts reflected the ethnic diversity of the city, and whether historic context statements generated by those surveys took into account the myriad cultural and ethnic histories in a given neighborhood.

Planning officials assured Cohen that the surveyors were ethnically diverse, and community outreach was done in multiple languages. But one man who spoke during public comment charged that the planning department was “tone deaf” when it came to responding to concerns raised by the African American community, and that efforts to designate certain properties as historic, such as Sam Jordan’s Bar on Third Street in the Bayveiw, had “hit roadblocks.”

Speaking to the Guardian after the hearing, Cohen said she’d been hoping to highlight the omission of certain cultural perspectives when it came to decision-making about which properties are deemed historic. Cohen spoke about the contributions of Filipino, Chinese, Japanese, and African-American communities to the city’s historic landscape.

“And the Native Americans — they’re never included in the conversation,” she said, referencing a Shellmound on Bayview Hill leftover from an era when the Ohlone resided on the San Francisco peninsula. She said she was concerned that cultural contributions may not be reflected in the neighborhood surveys, or in which buildings are ultimately designated. “It’s systemic,” she noted.

Board delays Yellow Pages vote

3

In an attempt to assuage big business interests, the Board of Supervisors decided yesterday (Tues/29) to delay the vote on an ordinance regulating the Yellow Pages, a piece of legislation that would create a three-year pilot program to rid the city of unsolicited phone books. A vote on the legislation is set for May 10.

The ordinance by Board President David Chiu passed the Land Use Committee on March 22. In attendance was a large opposition including the Yellow Pages Association, representatives of International Brotherhood of Electrical Workers and AT&T Advertising Solutions to stress the importance of the directory to small businesses and local jobs.

Although it appears the votes are there to pass it, supervisors including progressive David Campos and business-friendly Sean Elsbernd pushed for the delay so the city’s chief economist could undertake an analysis to understand how the “ban” would affect city businesses and to allow the public to continue to voice its opinions on the issue.

According to a previous Guardian article on the ordinance, many local businesses have chosen to advertise elsewhere, and many residents, including populations generally seen to use the Yellow Pages such as the elderly and non-English speakers, will still be able to easily obtain phone books if need be.

Alexia Marcous, Vice President of the Green Chamber of Commerce and a strong advocate in favor of the ordinance, said she was disappointed that the board chose to delay the vote.

“It’s politically motivated,” she told the Guardian. “Instead of doing what’s best for the city, they are stalling.”

While Marcous noted that it’s always prudent to obtain more information, it was unnecessary for the public to “provide further rebuttal” on the ordinance that she believes already has overwhelming support. Marcous states that some of the consequences of delaying the vote include the costs the city incurs for “dealing with the blight and litter and diverting the vital funds from more important issues.”

If the board decides to authorize the ordinance, Marcous sees San Francisco as a success story for other cities to emulate.

“It shows we are willing to do something about the egregious distribution practices that are only helping the Yellow Pages,” she said.

YPA Vice President of Public Policy and Sustainability Amy Healy posted on the Yellow Pages blog last week, before the vote was made, that the Yellow Pages Coalition “will be working diligently over the next week to influence the other members of the Board of Supervisors.”

The Parkmerced investors

8

rebeccab@sfbg.com

Parkmerced is one of the largest rental properties west of the Mississippi, and with more than 1,500 rent-controlled units, it’s an important piece of the city’s affordable-housing stock. Among the residents who live in the neighborhood-scale apartment complex are seniors, young families, and working-class San Franciscans, some of whom have called it home for decades.

A plan for an extraordinary overhaul of the property envisions tearing down the existing low-rise apartments and nearly tripling the number of units with a construction project that could take up to 30 years. On March 29, after Guardian press time, the Board of Supervisors was scheduled to vote on whether to uphold the plan’s environmental impact report (EIR), a key milestone of the approval process.

The Planning Commission voted 4-3 to certify the EIR, and if the board followed suit by rejecting four different appeals filed against it, Parkmerced would be on track to clear final approval sometime in May.

San Francisco Tomorrow was among the groups that filed appeals against the Parkmerced plan. “They want to destroy a neighborhood without sufficient justification or mitigation,” said Jennifer Clary, the group’s president, citing concerns about traffic congestion, loss of an historic landscape, and the destruction of rent-controlled housing.

Julian Lagos, a resident of 18 years, filed an appeal on behalf of the Coalition to Save Parkmerced. “It’s a very blue-collar community, and they want to replace it with wall-to-wall luxury high-rise condos,” said Lagos, who lives in a unit that would be targeted for demolition under the development plan. “I call it ground zero,” he said. “And I tell my neighbors, ‘You’re living at ground zero.’ “

Mayoral development advisor Michael Yarne noted that most points highlighted in the EIR appeals had already been addressed, except one charging that there hadn’t been adequate consideration over whether a Pacific Gas & Electric Co. gas pipeline running underground near Parkmerced could be jeopardized by construction activity. “The answer to that is, that’s a really good question for PG&E,” Yarne said. But he asserted that it wasn’t a project EIR issue.

Elected officials’ reactions to the overall plan were mixed. Lagos noted that campaign filings showed that Sups. Carmen Chu and Sean Elsbernd had accepted donations from people related to the project, and he predicted that Board of Supervisors President David Chiu would be a swing vote on the issue. Chiu spent several hours touring Parkmerced the Friday before the vote. He did not return Guardian calls seeking comment.

A development agreement between the city and the developer, Parkmerced Investors LLC, promises that existing tenants will keep their rent control at the same monthly rates — even after the apartments they now reside in are razed to make way for new residential towers.

Such a plan typically wouldn’t fly under state law because the Costa-Hawkins Act prohibits a city from imposing rent control on newly constructed housing. Yet city officials, with input from the City Attorney’s Office, say they’ve constructed this deal so that it falls within one of the exceptions written into the state law, offering a legal defense in the event of a court challenge and a guarantee against affordable housing loss.

“The development agreement is like a constitution for land use,” said Yarne. “You can’t get rid of it.” If the project changed hands or the developer went bankrupt, the new owner would be bound by the same terms, Yarne said.

However, Mitchell Omerberg of the Affordable Housing Alliance cautioned that he didn’t believe there was any guarantee that rent-control housing qualified as an exception under Costa-Hawkins. “Like parking a semitruck in a motorcycle space, it’s a poor fit and a risky bet — even before you consider the antipathy to rent control of the California courts,” Omerberg wrote in an argument against the plan.

Tenants advocacy groups have pointed to recent court decisions negating affordable-housing agreements in development projects, saying the legal precedent makes the Parkmerced pact vulnerable to a court challenge. In response, Yarne said those cases had strengthened the city’s legal strategy for formulating the agreement to guard against such a challenge. “This agreement is actually greatly improved because of those cases,” he said.

Nevertheless, there’s a clear financial incentive for the developer to strip away the rent-control unit replacement and other valuable community benefits it is required to deliver under the terms of its agreement with the city. An independent analysis of the project’s financial plan found that if Parkmerced Investors LLC adheres to all the terms of the agreement as planned, its financial rate of return would be less than ideal.

Drafted by consultant CB Richard Ellis (CBRE) to provide an objective financial picture for the city, the report found that the developer’s estimated 17.8 percent rate of return was “slightly below the threshold required to attract the necessary private investment” because investors aim for at least 20 percent in this market. “This means that, based on current and reasonably foreseeable short-term market conditions, the project may not be economically feasible,” the report noted. It added a disclaimer saying that cash flow from rent payments could offset that risk.

That lower rate of return isn’t a cause for concern, Yarne said, but rather a sign of the city’s negotiating prowess, since “we’ve gotten as much as we can in terms of public benefits. That 17.8 percent rate of return shows that we’re probably at the max.”

At the same time, the financial analysis showed that the developer’s prospects improved under hypothetical “tested scenarios” where the expensive community benefits promised in the development agreement weren’t a factor. As part of the analysis, CBRE looked at how the numbers would change if the developer decided to build new market-rate units instead of replacing all the existing rent-controlled units, and found it would fetch a 19 percent rate of return. In a scenario where it stripped out additional costs such as a community garden and new transit line, the rate of return would jump to an eye-catching 23 percent.

But those scenarios are just a hypothetical way to arrive at conclusions about a project’s value, said consultant Mary Smitheran, who drafted the report. “The development agreement specifies that those items need to be provided,” she said.

City officials have given the impression that they’re nailing down a set of requirements that the developer, or any future property owner, cannot get out of. But the people behind this project are some savvy Wall Street investors who are no strangers to controversy.

Fortress Investment Group, a New York City-based hedge fund and private equity firm with directors hailing from Lehman Brothers and Goldman Sachs, gained a controlling interest in Parkmerced last year after Stellar Management couldn’t make the payment on its $550 million debt.

Stellar jointly purchased the property in 2005 with financial partner Rockpoint Group, setting up Parkmerced Investors LLC as the official ownership company. Stellar still manages the property, but Fortress has seized financial control. A recent report on the Commercial Real Estate Direct website noted that its $550 million debt had been modified recently with a five-year extension to 2016.

Fortress made headlines in 2009 after it stopped providing funds to Millennium Development Corp. for the Olympic Village project in Vancouver, British Columbia leaving the city on the hook for hundreds of millions to finish the job in time for the winter games. Meanwhile, Fortress CEO Daniel Mudd recently got formal notification from the U.S. Securities & Exchange Commission (SEC) that he could potentially face civil action relating to his former job as CEO of Fannie Mae, the government-backed mortgage giant, for allegedly providing misleading information about subprime loans.

Stellar, a New York City company run by real-estate tycoon Larry Gluck, was profiled in a 2009 Mother Jones article about Riverton Homes, a 1,230-unit Manhattan rental housing project built in a similar style to Parkmerced, which Stellar purchased in 2005. Although Stellar assured residents that their affordable rental payments would remain unaffected, hidden from view was its business plan estimating that half the tenants would be paying almost triple the rental rates by 2011. Since rents couldn’t ultimately be raised high enough to cover the debt payments, the complex went into foreclosure — but Stellar was shielded against loss because, on paper, Riverton was owned by a separate LLC.

Linh Le, a 36-year resident of Parkmerced and former Chevron employee, wrote to the Board of Supervisors in advance of the March 29 hearing to warn of the financial troubles the investors had experienced before.

“This project reflects a pipe dream that was hatched during an era of reckless spending, fake prosperity, and seemingly limitless money that has since crashed and nearly destroyed America,” he wrote. “The business model that Parkmerced based this plan on has failed and nearly ruined their enterprise. That era is over and the world has changed.”

For safety’s sake

6

rebeccab@sfbg.com

A federal investigative hearing on the deadly Sept. 9, 2010 San Bruno explosion triggered by the rupture of a high-pressure Pacific Gas & Electric Co. pipeline was all about getting answers — but it has also sparked new questions.

For instance, why didn’t the San Bruno Fire Department have maps of the 30-inch gas line running beneath the neighborhood where the blast destroyed 37 homes and killed eight people? Why did PG&E’s records list that section of pipe as seamless when the federal investigation revealed that it actually consisted of shorter pieces of pipe, called pups, welded together? Why has PG&E been unable to produce records of close to 30 percent of its pipeline infrastructure, proving that the lines are in decent shape? And does the paperwork it has produced contain reliable information?

These shortcomings speak to a broader issue gaining attention as more fatal pipeline ruptures grab headlines. On a national scale, at least 59 percent of onshore gas transmission pipelines were installed before 1970, according to a report issued by the U.S. Department of Transportation’s Office of Pipeline Safety, making most of the infrastructure a minimum of four decades old.

Pipelines everywhere are getting older, and in some cases, weaker. Yet there tends to be a lack of awareness about the risks associated with the subsurface transport of hazardous materials, and as the San Bruno disaster demonstrated, there is often a lack of communication between utilities, local governments, and property owners about minimizing the risks.

These gaps are especially apparent in the process of approving new development projects. Tried-and-true systems are in place for indicating to contractors where they should and shouldn’t dig to avoid making direct contact with underground infrastructure, but that information seldom takes into account what condition a pipeline is in. The general assumption is that the pipeline operator (in this case, PG&E) is keeping up with maintenance, and that it’s safe to dig. Yet with the gaping questions surrounding PG&E’s infrastructure in the wake of the San Bruno blast, there’s a new level of uncertainty.

Pipeline safety isn’t just a problem for utilities and pipeline regulators to worry about, according to a report issued by Pipelines and Informed Planning Alliance (PIPA), an initiative led by the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), which brought together more than 100 experts in the field. It should also be on local governments’ radar when they’re making decisions about land use. Yet in San Francisco, this level of awareness seems to be absent.

According to PIPA, “Changes in land use and new developments near transmission pipelines can create risks to communities and to the pipelines.” The hefty report contains an exhaustive set of best practices for planning near pipelines, many specifically targeting local governments. Priority No. 1 for local planning departments should be to “obtain mapping data for all transmission pipelines within their areas of jurisdiction … and show these pipelines on maps used for development planning.” The report also suggests taking special precautions in areas spanning 660 feet on either side of a gas-transmission pipeline; creating systems of communication so information can be readily shared between local governments, utilities, and landowners; and identifying emergency contacts who can halt dangerous excavation activities in case something goes wrong.

The Guardian sent e-mail queries to the Planning Department and Department of Building Inspection (DBI) to find out if the city was adhering to any of the practices recommended by PIPA as the best ways to ensure safe planning near pipelines. Reached by phone, a spokesperson from Planning told the Guardian, “DBI is where you need to call.”

But DBI spokesperson Bill Strawn said, “Those questions you were asking really don’t fall into the Department of Building Inspection’s jurisdiction.”

Strawn added that the issue of underground infrastructure is not really taken into account when building permits are issued. “We don’t go to the [Public Utilities Commission] or [Department of Public Works] or PG&E” for that kind of information, Strawn said. “That would be the responsibility of the property owner, and the plans they submit to us don’t include that kind of utility information.”

PG&E is scrambling to meet a March 15 deadline imposed by the California Public Utilities Commission to turn over records proving its lines are intact. Until it can prove the integrity of its system either on paper or through costly, high-pressure water testing, the condition of some lines is unknown. PG&E did not return calls for comment.

In San Francisco, a densely populated urban hub on an earthquake-prone peninsula where major development projects are being permitted all the time, these issues are particularly pressing. Charley Marsteller, former chair of San Francisco Common Cause, certainly thinks so.

Last December, Marsteller penned a letter to a well-respected geotechnical engineer, raising a question about pipeline safety in light of California Pacific Medical Center’s plans to construct a massive hospital at its Cathedral Hill site on Franklin Street. According to a map of underground gas lines published by the Guardian (See “PG&E’s Secret Pipeline Map,” 9/21/10) using several sources of data, a PG&E gas main appears to run beneath Franklin.

Marsteller was worried about whether excavation for CPMC — or other projects requiring excavation, or even simple contractor digging — could cause vibrations that could affect that pipe.

“As CPMC digs its 100-foot hole, and due to the massive construction vibrations, is there not a risk that the PG&E gas pipeline is at risk of rupture?” he wanted to know.

The engineer, who preferred not to have his name published, responded in an informal letter that “it is indeed possible that soil movement generated by excavation and/or foundation construction could rupture a deteriorated gas main.” He added that while he wasn’t familiar with the details of CPMC’s or other excavation projects on Franklin Street, he did know that the area in question “consists of relatively weak soil” underlain at depth by a geologic feature called the Franciscan Formation, made of sandstone and fine-grained, sedimentary rock.

Yet no one seems to be giving this question any kind of professional attention or study. Eerily, Marsteller seems to be the only person in San Francisco who’s asking what happens if a major excavation project is permitted nearby a corroded pipeline — and he says he hasn’t received much of a response from the “rather blistering memos” he’s fired off to planning commissioners and members of the Board of Supervisors to ask about it. “I’m very concerned that we’re not suspending contractor digging proximate to a pipeline,” Marsteller said, until PG&E can offer proof that the lines nearby excavation projects are in good shape. Whether these issues will ever be considered as part of the local planning process, Marsteller predicted: “The answer is, no one ever thinks about this.”

Excavation damage accounts for nearly one-quarter of pipeline “incidents” nationwide, according to the federal Office of Pipeline Safety report. Yet safeguards are in place to prevent these things from happening.

When the Guardian initially phoned the Planning Department to ask about digging near pipelines, the phone call was returned by the Department of Public Works. Anytime a street excavation project is planned, DPW’s Gloria Chan explained, a notice of intent is issued 120 days beforehand to PG&E, AT&T, the Public Utilities Commission, and any other stakeholders that might have something running underground. Projects are then designed to integrate existing lines. “Sometimes the information we get may be 40 years old,” Chan said. Through a mandated process called USA Service Alert, people go out to physically mark where the underground infrastructure begins and ends on the project site before a contractor starts breaking ground.

That same process occurs with private development projects, explained Alan Kropp, a geotechnical engineer with the firm Alan Kropp & Associates. Kropp said it’s left up to a private contractor to work out the technical details for digging, which are governed by a set of regulations. “If you’re one foot away or three feet away, most pipes don’t care,” Kropp said, but he acknowledged that if a pipe is deteriorated, there could be instances where digging a normally safe distance away could still pose a problem.

“Almost all the time, the system works well,” Kropp said. As for the condition of the pipe, Kropp said, that information generally doesn’t guide project decisions. “It’s really up to the owner of the pipeline,” he said. “They would be the ones in control of that information.”

The future of the San Francisco left

72

That, at least, was the title of the Milk Club forum March 1. Quite a panel, too: Sups. Avalos, Campos, Chiu, Kim and Mar. Tim Paulson from the Labor Council. Former Milk Club Prez Jef Sheehy. Tiny from Poor Magazine. And me.


I told the assembled that it was worth reminding ourselves how far we’ve come — when I started in this business, in 1982, Dianne Feinstein was mayor, there was exactly one reliable progressive on the Board of Supervisors (Harry Britt) and it was impossible for grassroots types without big gobs of money to get elected to high office. I’ve lived through Feinstein, Agnos, Jordan and Brown, all (until the end of the Brown Era) with at-large boards. It was awful trying to get anything good done; all we could do was fight to prevent the truly horrible from happening. Under Brown, as Sheehy noted, San Francisco politics was locked down, tight; the machine ruled, the Democratic Party was not a force for progressive issues and only a few exceptional leaders, like Tom Ammiano, kept the spirit alive.


Today, the very fact that five supervisors showed up at a Milk Club event to talk about progressive politics shows how district elections has transformed the city and how far we’ve come.


That said, we’ve still failed to make much progress on the most important issue of the day — the gap between the rich and the poor, the fact that this city has great povery and great wealth and the utterly unsustainable economic and tax system that has made us the most socially unequal society in the industrialized world.


Sheehy talked about the schools (both he and are are parents of kids in the public schools). Good schools, he said, are one of the most important socialequalizers; with a good education, poor kids have a chance. But while our local billionaires enjoy nice tax breaks, we’re starving the schools.


Kim talked abou the need for summer school and longer school years (I would add longer school days). These are things San Francisco can do — if we’re willing. “We’re talking about taxes,” Sheehy said, and he’s right.


In the past five years, I think we’ve cut about a billion dollars out of the General Fund, labor has given back more than $300 million — and we’ve raised $90 million in new taxes. Not good enough, not even close.


Yes, the bad economy is to blame for our fiscal problems, but so is the fact that we have a tax structure that systematically underfunds the public sector. (And yes, my conservative friends, cops shouldn’t retire with $250,000 a year pensions. Got it.)


Tiny made a strong statement about the essential problem facing the city when she asked, “who isn’t here?” She didn’t just mean that there were too many white people in the room (althought that was true); she meant that there were were too many working-class and poor people who can no longer live in San Francisco.


Sheehy was even more blunt: “In five years,” he said, looking out at the room, “none of us are going to be here.”
And my essential message to the crowd (and the elected officials on the panel) was: We don’t have to accept that. These are problmes we can address, right here in San Francisco. If we want to, we can shift the burden of paying the costs of society at least a little bit off the backs of the poor and middle class and onto the rich.


Nobody directly disagreed with me. In fact, Chiu announced that “income inequality is something all of us care about.”
How agressively he and others try to turn that concern into legislation will tell us something.


Two other interesting moments:


1. Every single person on the panel talked about how important Tom Ammiano was to the modern progressive movement. One by one, every panelists described the 1999 Ammiano for Mayor campaign as a defining moment in their lives and in the emergence of today’s progressive politics. Good to see the guy get the recognition he so richly deserves.


2. Campos, who was sitting next to Chiu, made a point of saying that there’s no longer a progressive majority on the board, and he pointed to the committee assignments that gave conservatives control of some key panels. Chiu responded: “At the end of the day, we have a progressive majority on the board that will serve as a backstop” to anything bad that comes out of committees.


It was curious; it sounded almost as if Chiu was disappointed in his own assignments. Why would you need a “backstop” if the committees were good in the first place?


So I called him the next day and asked him about it. First he said he thought the commitees were balanced and it was all going to be fine. But when I asked him directly — why not appoint progressive majorities on the key committees? — he responded:


“I wish the board presidency vote hadn’t turned out the way it did.”


In other words: If the progressives had all voted for Chiu, he wouldn’t have appointed conservatives to key posts of power. Instead, some progressives voted for Avalos, and Chiu won with the votes of Carmen Chu, Scott Wiener, Sean Elsbernd and Mark Farrell (along with Kim and Mar). The payback, the deal, the whatever you want to call it, means that bad decisions will be made at Land Use and Rules and maybe in the Budget Committee, and Chiu as much as admitted that the progressive majority will have to go to unusual lengths to undo them.


I know how politics works; I know you have to dance with the ones that brung you and all that. But it would be nice if every now and then someone would do something just because it was the right thing to do, and to hell with the political consequences.


I suppose that’s too much to ask.


 

Political activists still oppose Chiu’s handbill regulation

12

Progressive political activists and First Amendment advocates continue to have concerns about how Sup. David Chiu’s legislation to regulate handbill distribution will affect low-budget political campaigns, despite Chiu’s efforts to address the criticism.

Two weeks ago, he delayed deliberation on the measure, saying it wasn’t his intention to curtail political speech. The measure returns to the Board of Supervisors tomorrow (Tues/15), but the activists are asking that it be sent back to committee for more work.

Chiu and the Department of Public Works Menu and Flyer Littering Task Force introduced the legislation in an effort to clean up littering and to effectively penalize handbill distribution that doesn’t meet the new regulations of securing literature and ensuring it does not become litter. The new law would require handbills to be securely fastened on doorways or placed under doormats preventing them from becoming litter on the sidewalks and streets.

“You can’t just throw something on a stoop that can be blown away,” Catherine Rauschuber, one of Chiu’s legislative aides who worked on the measure, told us. Handbills can be anything from a menu for a local restaurant to a flyer promoting a community event to campaign advertising and political information. Newspapers are exempt.

But critics of the measure, including California First Amendment Coalition Director Peter Scheer, say it needs a lot more work to pass constitutional muster and safeguard free speech rights.

“The proposed amendment to the San Francisco ordinance is not a ‘reasonable’ regulation of handbills and leaflets because it leaves the distributor of such constitutionally protected materials in doubt as to how to comply,” he told the Guardian. “Specifically, the materials are required to be ‘secured.’ However, the most efficient means of doing so—using tape or other adhesive—is itself prohibited.”

Littering a neighborhood with unsecured handbills is already a criminal infraction, one that is rarely enforced, and Chiu’s legislation would make it an administrative penalty managed at the discretion of DPW. Rauschuber said the penalty would usually be a fine of around $100.

The DPW requested the authority to administer the penalties because it wasn’t a priority of the District Attorney’s Office to prosecute violators, and DPW officials said it would be more effective in lowering the instances of littering, Rauschuber told us.

Political activists such as Karen Babbitt worry about the effect the new legislation will have on grassroots campaigns. She believes that the language of the ordinance creates a disadvantage to political candidates with low-budget campaigns.

“If you place a piece of literature under a doormat and it still somehow ends up on the sidewalk, the campaign can be fined,” she told the Guardian. “I can’t think of a way that I, as a volunteer, could prove that I’d initially placed the piece of lit securely. I try to place them securely, but the wind sometimes still blows them away—especially in windy neighborhoods like Diamond Heights.”

The board’s Land Use and Economic Development Committee approved the measure on Jan. 24, and while political activists say it needs more work, those concerned about litter welcome the change.

Dawn Trennart, a member of the Middle Polk Neighborhood Association and the Menu and Flyer Littering Task Force, saw the handbills become a litter problem in her neighborhood last spring and brought it to Chiu’s attention.

“It is a litter and security problem,” said Trennart said. “The handbills get stuck in doors and cannot lock properly.”

The law would also allow buildings to post a smaller “no handbills” sign with 30-point font, instead of the current requirement of eight square inches, to prohibit distribution. Babbitt believes the ordinance is superfluous to the efforts political volunteers already make.

“Most folks I’ve volunteered with over the years already try to place pieces of literature in ways that keep them from blowing away. It makes your candidate look bad, after all, to have her or his literature blowing all over the neighborhood,” she said.

But she and other activists complain that the new law would presume the campaigns are guilty without offering proof. Scheer also pointed to a 1943 U.S. Supreme Court ruling in the case of Martin v. City of Struthers, which found that litter is not a compelling enough argument to regulate handbill distribution.

Scheer believes that, in order to satisfy the First Amendment, the ordinance should not only state what handbill distributors cannot do, but also state what they can do to avoid penalties, which is commonly called a “safe harbor” provision.

Still, political activists complain that they were not involved in the drafting of the ordinance. While the Sierra Club, ACLU, SF Labor Council, and other groups that distribute political handbills were not consulted, the activists note that Golden Gate Restaurant Association and other business groups were brought in to help shape the legislation.

By asking for the measure to be sent back to committee, where public testimony is taken, the political activists hope their concerns will finally be addressed.

Early indicators

13

Land use politics and the way development decisions are made at City Hall fed San Francisco’s ascendant progressive movement over the last decade. So in the wake of a still-unfolding political realignment, an early key vote is making some preservationists and developer foes nervous.

At the center of that concern is Sup. Jane Kim, who broke with her progressive colleagues Jan. 25 to be the swing vote in the board’s 6-5 approval of attorney Richard Johns to the historian’s seat on the Historic Preservation Commission. Progressives and preservationists opposed the nomination on the grounds that Johns isn’t a historian and that he has close ties to former Mayor Willie Brown, a friend of developers whose longtime chief of staff was Johns’ wife, Eleanor.

And they’re suspicious of Brown’s support – both overt and stealthy – for Kim’s supervisorial campaign (see “Willie Brown and the accusations of machine politics in D6,” 10/16/10, Guardian Politics blog).

Kim didn’t explain her vote at the full board meeting, and her comments at the Rules Committee (which she chairs) and to the Guardian that Johns “was qualified” and she could “see no reason not to support his nomination” irked many of her progressive supporters who consider development the big issue.

Feeding concerns about the potential blunting of historic preservation and other tools used to scrutinize development projects was the Jan. 25 announcement by Sup. Scott Wiener that he is calling for hearings into whether the commission is improperly hindering development and other policy priorities.

“The Historic Preservation Commission — and I supported the creation of the Historic Preservation Commission — has become an increasingly powerful commission reaching into a lot of different areas of policy in the city,” Wiener said during the discussion of Johns’ nomination, citing housing, parks, and libraries as areas the commission has affected. “It’s important to have a diversity of backgrounds and viewpoints on this commission, and if we’re going to have a committee made up exclusively of advocates for historic preservation, only advocates, that is a problem.”

Former board President Aaron Peskin, who led the effort to create the commission through the voter-approved Proposition J in 2008, disputes the allegation that the commission has become too powerful, as well as the claim that Johns is qualified to serve in the historian’s seat, one of six seats on the commission that now requires professional qualifications.

“The facts do not support Sup. Wiener’s allegations,” Peskin told us, noting that the Board of Supervisors and the mayor retain the authority to decide what is and isn’t historically significant. Yet Wiener said that even commission- and staff-level actions affect other city goals. “The conducting of a survey does have legal impact,” Wiener told us.

But Peskin said San Francisco has very few protected buildings compared with other major U.S. cities, something voters sought to change through Prop. J, and Peskin said he was disappointed that Kim didn’t support the law’s dictates. “This is the second time in 2011 when the slim alleged progressive majority has not stayed together,” he said, referring also to the election of David Chiu as board president.

Peskin and others who fight land-use battles say they don’t yet want to jump to the conclusion that developers might have an easier time with this board. “It’s my profound hope is that this is a learning experience,” Peskin said of Kim’s vote.

Veteran land use attorney Sue Hestor noted that neither Kim nor Wiener has a record on land use issues by which to judge them and she didn’t want to make a big deal of their Jan. 25 actions. Yet she said that development is a huge issue in the Tenderloin, SoMa, and Rincon Hill areas that Kim represents, so there are major tests of her progressive values coming soon.

“In District 6, it’s the defining issue because it’s the most explosive district in terms of growth,” Hestor said. “Land use is about who gets to live in the city.”

 

WHOSE CITY?

While most of the discussion about the Johns nomination focused on his qualifications as a historian — indeed, that was the basis of most of the opposition to his nomination, by both activists and progressive supervisors — there was some telling subtext focused on Hestor’s point that land use is the most fundamental progressive issue.

At the Jan. 20 Rules Committee meeting, Kim even asked Johns about his “vision for affordable housing as it related to preservation.” But the answer she received wasn’t terribly reassuring to those who see the lack of affordable housing for low-income city residents as a serious problem that the city is failing to address (see “Dollars or sense?” 9/29/10).

“San Francisco is made up of lots of different groups of people with lots of different backgrounds,” Johns said at the hearing, noting that it is important to “preserve the culture and the past that have brought us to where we are. But part of that past is the ability to grow.”

In an interview with the Guardian, Johns expanded on the point, sounding a more pro-growth point-of-view than many of his colleagues on the commission are likely to share. “Development and preservation can go hand-in-hand,” Johns said. “Maybe it’s the development that allows what might be a slowly deteriorating building to be fixed up properly.”

As an example, he cited his 20 years of work on preserving the Old Mint Building — his main claim to expertise as a historian — which was ultimately accomplished as part of the development project that included office and commercial development and the Mint Plaza public space.

“People of all income levels have a right to live in San Francisco,” Johns said, adding, “The real need some people would say is the need for middle class housing.” When we noted that it’s often the low-income residents who are ousted when old buildings get modernized, he said, “You have to think about the desirability of people to live in crummy housing.”

Chiu and Kim both downplayed the importance of the Johns vote. “People are trying to read too much into this,” Chiu said, explaining that he opposed the nomination because he simply felt Johns didn’t meet the criteria as a historian. “What was relevant is what city law says.”

Kim told us that it wasn’t until the full board meeting that she learned how her progressive colleagues felt about the matter, and that she didn’t want to change how she voted in committee. “It was not important enough for me to change my vote based on my verbal commitments,” Kim said later.

Yet on the evening of the vote, Kim told the Guardian that she felt “pressure” to support Johns, although she wouldn’t say from whom. “I was put in a bad position on this issue,” she said. Many progressives have speculated that pressure came from Brown, which Kim denies. “We didn’t talk about this, not once,” she said.

But in his Jan. 30 column in the San Francisco Chronicle, Brown crowed about the victory by “my friend Richard Johns” and called Chiu’s opposition to him “a mistake that could haunt him for some time,” saying Chiu has set up Sups. Malia Cohen and Kim “to be the swing votes on every issue where moderates and progressives split.”

Rebecca Bowe contributed to this report.

SF’s new political era

31

news@sfbg.com

You can argue about what the word “progressive” means, and you can argue about the process and the politics that put Ed Lee in the Mayor’s Office. And you can talk forever about which group or faction has how much of a majority on the San Francisco Board of Supervisors, but you have to admit: this city has just undergone a significant political realignment.

Some of that was inevitable. The last members of the class of 2000, the supervisors who were elected in a rebellion against the sleaze, corruption, and runaway development policies of the Willie Brown administration, have left office. Gavin Newsom, the mayor who was often at war with the board and who encouraged a spirit of rancor and partisanship, is finally off to Sacramento. For the first time since 1978, the supervisors will be working with a mayor they chose themselves.

For much of the past 15 years, progressive politics was as much about stopping bad things — preventing Brown and then Newsom from wrecking the city — as it was about promoting good things. But the “politics of anti,” as San Francisco State political scientist Rich DeLeon describes is, wasn’t a central theme in the November elections, and this generation of supervisors comes into office with a different agenda.

Besides, one of the clear divisions on the board the past seven years was the Newsom allies against the progressives — something that dissipated instantly when Lee took over.

But the realignment goes deeper.

Until recently, the progressives on the board had a working majority — a caucus, so to speak — and they tended to vote together much of the time. The lines on the board were drawn almost entirely by what Newsom disparagingly calls ideology but could more accurately be described as a shared set of political values, a shared urban agenda.

There are still six supervisors who call themselves progressives, but the idea that they’ll stick together was shattered in the battle over a new mayor — and the notion that there’s anything like a progressive caucus died with Board President David Chiu’s election (his majority came in part from the conservative side, with three progressives opposing him) and with Chiu’s new committee assignments, which for the first time in a decade put control of key assignments in the hands of the fiscal conservatives.

 

A PROGRESSIVE MAJORITY?

The progressive bloc on the board was never monolithic. There were always disagreements and fractures. And, thanks to the Brown Act, the progressives don’t actually meet outside of the formal board sessions. But it was fair and accurate to say that, most of the time, the six members of the board majority functioned almost as a political party, working together on issues and counting on each other for key votes. There was, for example, a dispute two years ago over the board presidency — but in the end, Chiu was elected with exactly six votes, all from the progressive majority that came together in the end.

That all started to fall apart the minute the board was faced with the prospect of choosing a new mayor. For one thing, the progressives couldn’t agree on a strategy — should they look for someone who would seek reelection in November, or try to find an acceptable interim mayor? The rules that barred supervisors from voting for themselves made it more tricky; six votes were not enough to elect any of the existing members. And, not surprisingly, some of the progressives had mayoral ambitions themselves.

When state Assemblymember Tom Ammiano — who would have had six votes easily — took himself out of the running, there was no other obvious progressive candidate. And with no other obvious candidate, and little opportunity for open discussion, the progressives couldn’t come to an agreement.

But by the Jan. 4 board meeting, five of the six had coalesced around Sheriff Mike Hennessey. Chiu, however, was supporting Ed Lee, someone he had known and worked with in the Asian community and whom he considered a progressive candidate. And once it became clear that Lee was headed toward victory, Sup. Eric Mar announced that he, too, would be in Lee’s camp.

A few days later, when the new board convened to choose a president, the progressive solidarity was gone. Sups. David Campos, John Avalos, and Ross Mirkarimi, now the solid left wing of the board, voted for Avalos. Chiu won with the support of Mar, Sup. Jane Kim, and the moderate-to-conservative flank.

Now the Budget Committee — long controlled by a progressive chair and a progressive majority — will be led by Carmen Chu, who is among the most fiscally conservative board members. The Land Use and Development Committee will be chaired by Mar, but two of the three members are from the moderate side. Same goes for Rules, where Sup. Sean Elsbernd, for years the most conservative board member, will work with ideological ally Sup. Mark Farrell on confirming mayoral appointments, redrawing supervisorial districts, and promoting or blocking charter amendments as Kim, the chair, does her best to contain the damage.

You can argue that having independent-minded supervisors who don’t vote as a caucus is a good thing. You can also argue that a fractured left will never win against a united downtown. And both arguments have merit.

But you can’t argue any more that the board has the same sort of progressive majority it’s had for the past 10 years. That’s over. It’s a new — and different — political era.

What happens now? Will the progressives hold enough votes to have an influence on the city budget (and ensure that the deficit solutions include new revenue and not just cuts)? What legislative priorities will the supervisors be pushing in the next year? How will the votes shake out on difficult new proposals (and ongoing issues like community choice aggregation)?

Mayor Lee has pledged to work with the board and will show up for monthly questions. How will he respond to the sorts of progressive legislation — like tenant protections, transit-first policies, immigrant rights measures, and stronger affordable housing standards — that Newsom routinely vetoed?

How will this all play out in a year when the city will also be electing a new mayor?

 

IDENTITY POLITICS?

When Sups. Chiu, Mar, and Kim broke with their three progressive colleagues to support Chiu for board president — just as Chiu and Mar helped clear the path for Ed Lee to become mayor days earlier — it seemed to many political observers that identity had trumped ideology on the board. There’s some truth to that observation, but it’s too simple an explanation. There’s also the fact that Chiu strongly supported Kim, who is a personal friend and former roommate, in her election, so it’s no surprise she went with him for board president.

And the phrase itself is so laden with baggage and problems that it’s hard to talk about. It has come to signify a wide range of political activity and theorizing founded in the shared experiences of injustice of members of certain social groups. “Rather than organizing solely around belief systems, programmatic manifestoes, or party affiliation, identity political formations typically aim to secure the political freedom of a specific constituency marginalized within its larger context,” says the Stanford Encyclopedia of Philosophy, an ongoing research project by the students and faculty at Stanford University.

Although the notion of identity politics took hold during the social movements of the 1960s and ’70s — when liberation and organizing movements among women and various ethic and other identity groups fed a larger liberal democratic surge that targeted war, economic inequity, social injustice, and other issues — it’s also a political approach that has divided the populace.

“One of the central charges against identity politics by liberals, among others, has been its alleged reliance on notions of sameness to justify political mobilization,” says the Stanford Encyclopedia. “Looking for people who are like you rather than who share your political values as allies runs the risk of sidelining critical political analysis of complex social locations and ghettoizing members of social groups as the only persons capable of making or understanding claims to justice.”

Mar explains that the reality of identity politics and whether it’s a factor in the current politics at City Hall is far more complex.

“With me, David Chiu, and Jane Kim as a block of three progressive Asians — and I still define David Chiu as a progressive though I think some are questioning that — we all come out of what I would call a pro-housing justice, transit-first, and environmental sustainability [mindset],” Mar told us. “But I think because of our ethnic background and experiences, we may have different perspectives at times than other progressives.”

For example, Mar said, many working class families of color need to drive a car so they’ll differ from progressives who want to limit parking spaces to discourage driving. He also has reservations about the proposed congestion pricing fee and how it might affect low-income drivers.\

“I think often when progressive people of color come into office — Jane Kim might be one of the best examples — that sometimes there’s an assumption that her issues are going to be the same as a white progressive or a Latino progressive,” he said. “But I think kind of the different identities that we all have mean that we’re more complex.”

Campos, a Latino immigrant who is openly gay, noted that “as a progressive person of color, I have at times felt that the progressive movement didn’t recognize the importance of identity politics and what it means for me to have another person of color in power.”

But, he added, “I don’t think identity politics alone should guide what happens. A progressive agenda isn’t just about race but class, sexual orientation, and other things. It’s not enough to say that identity politics justifies everything.”

University of San Francisco political science professor Corey Cook told the Guardian that identity has always been a strong factor in San Francisco politics, even if it was overshadowed by the political realignment around progressive ideology that occurred in 2000, mostly as a reaction to an economic agenda based on rapid development and political cronyism.

“I’m not sure that identity wasn’t relevant, but it was swamped by ideology,” Cook told the Guardian. Now, he said, another political realignment seems to be occurring, one that downplays ideology compared to the position it has held for the last 10 years. “I’m not sure that ideology is dead. But the dynamics have definitely changed.”

Cook sees what may be a more important change reflected in Chiu’s decision to put the political moderates in control of key board committees. But he said that shift was probably inevitable given the difficulties of unifying the diverse progressive constituencies.

“It’s hard to hold a progressive coalition together, and it’s amazing that it has lasted this long,” he said.

There’s another kind of identity politics at play as well — that of native San Franciscans, who often express resentment at progressive newcomers talking about what kind of city this is, versus those who see San Francisco as a city of immigrants and ideas, a place being shaped by a wider constituency than the old-timers like to acknowledge.

“I’m honored to join Sups. Elsbernd and Cohen in representing the neighborhoods they grew up in,” Sup. Mark Farrell said during his opening remarks after being sworn in Jan. 8., sobbing when he thanked his parents for their support.

As he continued, he fed the criticism of the notion of ideology-based politics that has been a popular trope with Gavin Newsom and other fiscal conservatives in recent years, telling the crowd he wanted “to turn City Hall into a place based on issues and ideas, not ideology.”

Cohen also placed more importance on her birthright than on her political philosophy, telling stories about entering board chambers through the back door at age 16 when she was part of a youth program created by then-Mayor Frank Jordan, and with former Mayor Dianne Feinstein coming to speak at Cohen’s third-grade class. “I am a San Francisco native, and that is a responsibility I take seriously,” said Cohen, who graduated from the Emerge Program, which grooms women for political office,

“We will have another woman as president of the Board of Supervisors, and we will have a woman as mayor of San Francisco,” she added. And as the sole African American on the board, she also pledged, “I will be working to add more members of the African American community to the elected family of San Francisco.”

But what issues she plans to focus on and what values she’ll represent were unclear in her comments — as they were throughout her campaign, despite the efforts of journalists and activists to discern her political philosophy. In her public comments, her only stated goal was to build bridges between the community and City Hall and let decisions be guided by the people “not political ideologies.”

Oftentimes in recent San Francisco history, identity and ideology have worked in concert, as they did with former Sup. Harvey Milk, who broke barriers as the first openly gay elected official, but who also championed a broad progressive agenda that included tenants rights, protecting civil liberties, and creating more parks and public spaces.

Sup. Scott Wiener, shortly after being sworn into office, acknowledged the legacy of his district, which was once represented by Milk and fellow gay progressive leader Harry Britt, telling the crowd: “I’m keenly aware of the leadership that has come through this district and I have huge shoes to fill.”

Yet Wiener, a moderate, comes from a different ideological camp than Milk and Britt and he echoed the board’s new mantra of collaboration and compromise. “I will always try to find common ground. There is always common ground,” he said.

 

GETTING THINGS DONE?

Chiu is making a clear effort to break with the past, and has been critical of some progressive leaders. “I think it’s important that we do not have a small group of progressive leaders who are dictating to the rest of the progressive community what is progressive,” he said.

While he didn’t single out former Sup. Chris Daly by name, he does seem to be trying to repudiate Daly’s leadership style. “I think that while the progressive left and the progressive community leaders have had very significant accomplishments over the past 10 years, I do think that there are many times when our oppositional tactics have set us back.”

When Chiu was reelected board president, he told the crowd that “none of us were voted into office to take positions. We were voted into office to get things done.”

Some progressives were not at all happy with that comment. “I thought that was a terrible thing to say,” Avalos told the Guardian, arguing the positions that elected officials take shape the legislation that follows. As an example, he cited the positions that progressive members of Congress took in favor of the public option during the health care reform debate.

Talking about getting things done is “a sanctimonious talking point that fits well with what the Chronicle and big papers want to hear,” Avalos said. He said the Chronicle and other downtown interests are more interested in preserving the status quo and blocking progressive reforms. “It’s what they want to see not get done.”

Campos even challenged the comment publicly during the Jan. 11 board meeting when he said, “It’s important to get things done, but I don’t think getting things done is enough. We have to ask ourselves: what is it that we’re getting done? How is it that we’re getting things done? And for whom is it that we’re doing what we’re doing? Is it for the people, or the downtown corporate interests? I hope it’s not getting things done behind closed doors.”

Chiu said that, for him, getting things done is about expanding the progressive movement and consolidating its recent gains. “I think we all share a political goal. As progressives, we all share a political goal of getting things done and growing mainstream support for our shared progressive principles so that they really become the values of our entire city.”

To do that, he said, progressives are going to need to be more conciliatory and cooperative than they’ve been in the past. “I think it’s easy to slip into a more oppositional way of discussing progressive values, but I’m really pushing to move beyond that.”

The biggest single issue this spring will be the budget — and it’s hard to know exactly where the board president will draw his lines. “I have spoken to Mayor Lee about the need for open, transparent, and community-based budget processes and he’s open to that,” Chiu told us — and that alone would be a huge change. But the key progressive priority for the spring will be finding ways to avoid brutal budget cuts — and that means looking for new revenue.

When asked whether new general revenue will be a part of the budget solution, instead of Newsom’s Republican-style cuts-only approaches, Chiu was cautious. “I am open to considering revenues as part of the overall set of solutions to close the budget deficit,” he said. “I am willing to be one elected here that will try to make that argument.” But with his political clout and connections right now, he can do a lot more than be one person making an argument.

Chiu has always been open to new revenue solutions and even led the way in challenging the cuts-only approach to both the city budget and MTA budget two years in a row, only to back down in the end and cut a deal with Newsom. When asked whether things will be better this year given his closer relationship to Lee, Chiu replied, “I think things are going to be different in the coming months.”

During the board’s Jan. 7 deliberation on Lee, Sup. Eric Mar also said that based on his communications with Lee, Mar believed that the Mayor’s Office is open to supporting new revenue measures. He echoed the point later to us.

In addition to supporting the open, inclusive budget process, Mar called for “a humane budget that protects the safety net and services to the most vulnerable people in San Francisco is kind of the critical, top priority.

“I think it’s going to be difficult working with the different forces in the budget process,” he added. “That’s why I wish it could have been a progressive who was chairing the budget process.”

Mar said progressive activism on the budget process is needed now more than ever. “The Budget Justice Coalition from last year I think has to be reenergized so that so many groups are not competing for their own piece of the pie, but that it’s more of a for-all, share-the-pain budget with as many people communicating from outside as possible, putting the pressure on the mayor and the board to make sure that the critical safety net’s protected.”

 

CUTS WILL BE CENTER STAGE

But major cuts — and the issue of city employees pay and benefits — will also be center stage.

At the board’s Jan. 11 meeting, before the supervisors voted unanimously to nominate Lee as interim mayor, Sup. Elsbernd signaled that city workers’ retirement and health benefits will once again be at the center of the fight to balance the budget.

Elsbernd noted that in past years he was accused of exaggerating the negative impacts that city employees’ benefits have on the city’s budget. “But rather than being inflated, they were deflated,” Elsbernd said, noting that benefits will soon consume 18.14 percent of payroll and will account for 26 percent in three years.

“Does the budget deficit include this amount?” he asked.

And at the after-party that followed Lee’s swearing-in, Public Defender Jeff Adachi, who caused a furor last fall when he launched the ill-considered Measure B, which sought to reform workers’ benefits packages, told us he is not one to give up lightly.

“We learned a lot from that,” Adachi said. “This is still the huge elephant in City Hall. The city’s pension liability just went up another 1 percent, which is another $30 million”

Chu agreed that worker benefits would be a central part of the budget-balancing debate. “Any conversation about the long-term future of San Francisco’s budget has to look at the reality of where the bulk of our spending is,” she said.

Avalos noted that he plans to talk to labor and community based organizations about ways to increase city revenue. “I’m going to work behind the scene on the budget to make sure the communities are well-spoken for,” Avalos said, later adding, “But it’s hard, given that we need a two-thirds majority to pass stuff on the ballot.”

Last year, Avalos helped put two measures on the ballot to increase revenue: Prop. J, which sought to close loopholes in the city’s current hotel tax and asked visitors to pay a slightly higher hotel tax (about $3 a night) for three years, and Prop. N, the real property transfer tax that slightly increased the tax charged by the city on the sale of property worth more than $5 million.

Prop. N should raise $45 million, Avalos said. “I’ve always had my sights set on raising revenue, but making cuts is inevitable.”

 

THE IDEOLOGY ARGUMENT

Newsom and his allies loved to use “ideology” as a term of disparagement, a way to paint progressives as crazies driven by some sort of Commie-plot secret agenda. But there’s nothing wrong with ideology; Newsom’s fiscal conservative stance and his vow not to raise taxes were ideologies, too. The moderate positions some of the more centrist board members take stem from a basic ideology. Wiener, for example, told us that he thinks that in tough economic times, local government should do less but do it better. That’s a clear, consistent ideology.

For much of the past decade, the defining characteristic of the progressives on the board has been a loosely shared urban ideology supported by tenants, immigrant-rights groups, queer and labor activists, environmentalists, preservationists, supporters of public power and sunshine and foes of big corporate consolidation and economic power. Diversity and inclusiveness was part of that ideology, but it went beyond any one political interest or identity group.

It was often about fighting — against corruption and big-business hegemony and for economic and social equality. The progressive agenda started from the position that city government under Brown and Newsom had been going in the wrong direction and that substantive change was necessary. And sometimes, up against powerful mayors and their well-heeled backers, being polite and accommodating and seeking common ground didn’t work.

As outgoing Sup. Daly put it at his final meeting: “I’ve seen go-along to get along. If you want to do more than that, if you think there’s a fundamental problem with the way things are in this world, then go-along to get along doesn’t do it.” When Chiu announced that the new progressive politics is one of pragmatism, he was making a break from that ideology. He was signaling a different kind of politics. He has urged us to be optimistic about the new year — but we still don’t know what the new agenda will look like, how it will be defined, or at what point Chiu and his allies will say they’ve compromised and reached out enough and are ready to take a strong, even oppositional, stand. We do know the outcome will affect the lives of a lot of San Franciscans. And when the budget decisions start rolling down the pike, the political lines will be drawn fairly clearly. Because reaching across the aisle and working together sounds great in theory — but in practice, there is nothing even resembling a consensus on the board about how the city’s most serious problems should be resolved. And there are some ugly battles ahead.

They have issues: Members of the new Board speak

20

Board President David Chiu touched off a broad political discussion in recent weeks with his statement that officials were elected “not to take positions, but to get things done.” Delivered just before his reelection as Board President with the solid backing of the board’s moderate faction, Chiu’s comment has been viewed in light of City Hall’s shifting political dynamic, a subject the Guardian explores in a Jan. 19 cover story. Politics aside, Chiu’s statement also begs the question: Just what do members of the board hope to get done, and how do they propose to accomplish the items on their agenda?
Last week, Guardian reporters tracked down every member of the board to find out. We asked, what are your top priorities? And how do you plan to achieve them? Some spoke with us for 25 minutes, and others spoke for just 5 minutes, but the result offers some insight into what’s on their radar. Not surprisingly, getting the budget right was mentioned by virtually everyone as a top priority, but there are sharp differences in opinion in terms of how to do that. Several supervisors, particularly those in the moderate wing, mentioned ballooning pension and healthcare costs. Aiding small business also emerged as a priority shared by multiple board members.

Sup. Eric Mar
District 1

Issues:
*Budget
*Assisting small businesses
*Programs and services for seniors
*Food Security
*Issues surrounding Golden Gate Park

Elected in 2008 to represent D1, Sup. Eric Mar has been named chair of the powerful Land Use & Economic Development Committee and vice chair of the City Operations and Neighborhood Services Committee.

Asked to name his top priorities, Mar said, “A humane budget that protects the safety net and services to the must vulnerable people in San Francisco is kind of the critical, top priority.”

It’s bound to be difficult, he added. “That’s why I wish it could have been a progressive that was chairing the budget process. Now, we have to work with Carmen Chu to ensure that it’s a fair, transparent process.”

A second issue hovering near the top of Mar’s agenda is lending a helping hand to the small businesses of the Richmond District. “There’s a lot of anxiety about the economic climate for small business. We’re trying to work closely with some of the merchant associations and come up with ideas on how the city government can be more supportive,” he said. Mar also spoke about the need to respond to the threat of big box stores, such as PetCo, that could move in and harm neighborhood merchants. “I’m worried about too many of the big box stores trying to come in with an urban strategy and saying that they’re different — but they sure have an unfair advantage,” he noted.

Programs and services for the senior population ranked high on his list. Mar noted that he’d been working with senior groups on how to respond to a budget analyst’s report showing a ballooning need for housing – especially affordable housing – for seniors. “It’s moving from the Baby Boom generation to the Senior Boomers, and I think the population, if I’m not mistaken, by 2020 it’s going up 50 percent,” he said. “It’s a huge booming population that I don’t think we’re ready to address.”

Addressing food security issues through the Food Security Task Force also ranked high on Mar’s list, and he noted that he’s been working with a coalition that includes UCSF and the Department of Public Health to study the problem. “We’ve had a number of strategy meetings already, but we’re trying to launch different efforts to create healthier food access in many of our lowest income neighborhoods,” Mar said.

Finally, Mar talked about issues relating to the park. “I do represent the district that has Golden Gate Park, so I’m often busy with efforts to preserve the park, prevent privatization, and ensure enjoyment for the many residents not just in the Richmond but throughout the city that enjoy the park.” Although it’s not technically in his district, Mar noted that he is very supportive of HANC Recycling Center – and plans to advocate on their behalf to Mayor Lee.

Sup. Mark Farrell
District 2
Issues:
*Pension reform
*Long-term economic plan for city
*Job creation
*Quality-of-life issues

Elected to replace termed-out D2 Sup. Michela Alioto-Pier, Farrell has been named vice-chair of the Government Audits & Oversight Committee and a member of the Rules Committee. A native of D2, Farrell told the Guardian he believes his roots in the city and background as a venture capitalist would be an asset to the city’s legislative body. “I know at the last board, Carmen [Chu] was the only one who had any finance background,” he said. “To have someone come from the private sector with a business / finance background, I really do believe … adds to the dialogue and the discussion here at City Hall.”

Along those lines, Farrell said one of his top priorities is the budget. “I’m not on the budget and finance committee this time around, but given my background, I am going to play a role in that,” he said.

So what’s his plan for closing the budget deficit? In response, he alluded to slashing services. “In the past, there have been views that we as a city don’t provide enough services and we need to raise revenues to provide more, or the perspective that we first need to live within our means and then provide more services. Everyone’s going to disagree, but I’m in the latter camp,” he said. “I do believe we need to make some tough choices right now – whether it be head count, or whether it be looking at …pension reform. I do believe pension reform needs to be part of the dialogue. Unfortunately, it’s unsustainable.”

He also said he wanted to be part of “trying to create and focus on a framework for a long-term financial plan here in San Francisco.”

Secondly, Farrell discussed wanting to put together a “jobs bill.”

“Jobs is a big deal,” he said. “It’s something I want to focus on. There are only so many levers we can pull as a city. I think the biotech tax credits have spurred a lot of business down in Mission Bay.”

Next on Farrell’s agenda was quality-of-life issues, but rather than talk about enforcing San Francisco’s sit/lie ordinance – supported by political forces who organized under the banner of maintaining ‘quality-of-life’ – Farrell revealed that he is incensed about parking meter fines. “It is so strikingly unjust when you are 1 minute late to your parking meter and you have a $65 parking fine,” he said.

Farrell also mentioned development projects that would surely require time and attention. “CPMC is going to be a major dominant issue,” he said. He also mentioned Doyle Drive, and transitional age youth housing projects proposed in D2 – but as far as the housing project planned for the King Edward II Inn, which has generated some controversy among neighborhood groups, he didn’t take a strong position either way, saying he wanted to listen to all the stakeholders first.

Board President David Chiu
District 3
Issues:
*Budget
*Preserving neighborhood character
*Immigrant rights
*Preserving economic diversity
*Transit

Elected for a second two-year term as President of the Board, D3 Sup. David Chiu is rumored to be running in the mayor’s race, after he turned down former Mayor Gavin Newsom’s offer to appoint him as District Attorney. That offer was made after Kamala Harris won the state Attorney General’s race this fall. And when Chiu turned it down, former Mayor Gavin Newsom shocked just about everybody by appointing San Francisco Police Chief George Gascon, who is not opposed to the death penalty and was a longtime Republican before he recently registered as a Democrat, instead.

A temporary member of the Board’s Budget acommittee, Chiu is also a permanent member of the Board’s Government Audits & Oversight Committee.

Asked about his top priorities, Chiu spoke first and foremost about  “ensuring that we have a budget that works for all San Franciscans, particularly the most vulnerable.” He also said he wanted to see a different kind of budget process: “It is my hope that we do not engage in the typical, Kabuki-style budget process of years past under the last couple of mayors, where the mayor keeps under wraps for many months exactly what the thinking is on the budget, gives us something on June 1 for which we have only a couple of weeks to analyze, and then engage in the tired back-and-forth of debates in the past.” Chiu also spoke about tackling “looming pension and health care costs.”

Another priority, he said, was “Ensuring that our neighborhoods continue to remain the distinctive urban villages that they are, and protecting neighborhood character,” a goal that relates to “development, … historic preservation, [and] what we do around vacant commercial corridors.”

*Immigrant rights also made his top-five list. “I was very sad that last November we didn’t prevail in allowing all parents to have a right and a voice in school board elections,” he said, referencing ballot measure Proposition D which appeared on the November 2010 ballot. “I think we are going to reengage in discussion around Sanctuary City, another topic I have discussed twice already with Mayor Lee.”

Another issue for Chiu was  “ensuring again that hopefully San Francisco continues to remain an economically diverse city, and not just a city for the very wealthy.” He spoke about reforming city contracts: “In particular, dealing with the fact that in many areas, 70 to 80 percent of city contracts are awarded to non-San Francisco businesses. … I think there is more significant reform that needs to happen in our city contracting process.” Another economic-diversity measure, he said, was tax policy, “particularly around ensuring that our business tax is incenting the type of economic growth that we want.”

Finally, Chiu spoke about “Creating a transit-first city. This is not just about making sure MUNI is more reliable and has stable funding, but ensuring that we’re taking steps to reach a 2020 goal of 20 percent cycling in the city. Earlier this week I called for our transit agencies to look at pedestrian safety, because we are spending close to $300 million a year to deal with pedestrian deaths and injuries.”

Sup. Carmen Chu
District 4
*Budget
*Core Services
*Jobs
*Economy

Chiu has just named Sup. Carmen Chu as chair of the powerful Board and Finance Committee. And Chu, who worked as a budget analyst for Newsom’s administration, says the budget, core services, employment and the economy are her top priorities.

“My hope is that this year the budget is going to be a very collaborative and open process,” Chu said.

Chu believes workers benefits will be a central part of the budget-balancing debate.
“Any conversation about the long-term future of San Francisco’s budget has to look at the reality of where the bulk of our spending is,” she said.

Chu noted that the budget debate will have to take the state budget into account.
“At the end of the day, we need to take into account the context of the state budget, in terms of new cuts and taxes, because anything we do will be on top of the state level.

“We need to ask who do these measures really impact,” she added, noting that there were attempts to put revenue measures on the ballot last year.

Sup. Ross Mirkarimi
District 5
* Local Hire / First Source / Reentry programs
* Budget / generating revenue
* Infrastructure improvements
*Reversing MTA service cuts

With only two years left to serve on the Board, D5 Sup. Ross Mirkarimi has been named chair of the Board’s Public Safety Committee and vice-chair of the Budget and Finance Committee.

“One of my top priorities is building on and strengthening the work that I’ve already done and that Avalos is doing on mandatory local hire and First Source programs,” Mirkarimi said. He also spoke about “strengthening reentry programs for those coming out of the criminal justice system, because we still have an enormously high recidivism rate.”

The budget also ranked high on Mirkarimi’s list, and he stressed the need for “doing surgical operations on our budget to make sure that services for the vulnerable are retained, and looking for other ways to generate revenue beyond the debate of what’s going on the ballot.

“For instance, I helped lead the charge for the America’s Cup, and while the pay-off from that won’t be realized for years, the deal still needs to be massaged. What we have now is an embryonic deal that still needs to be watched.”

Mirkarimi mentioned safeguarding the city against privatization, saying one of his priorities was “retooling our budget priorities to stop the escalating practice of privatizing city services.”

 He spoke about “ongoing work citywide to make mixed-use commercial and residential infrastructure improvements, which coincide with bicycle and pedestrian improvements.”

Finally, Mirkarimi said he wanted to focus on transportation issues. “As Chair of the Transportation Authority, if I even continue to be chair, to take the lead on signature transit projects and work with the M.T.A. to reverse service cuts.”

Sup. Jane Kim
District 6
Issues:
*Jobs
*Economic Development
*Small Business
*Pedestrian Safety
*Legislation to control bedbug infestations

Elected to replace termed-out D6 Sup. Chris Daly, Kim has been named chair of the Rules Committee and a member of the Budget & Finance committee.

Kim believes that she will prove her progressive values through her work and she’s trying to take the current debate about her allegiances on the Board in her stride.

“The one thing I learned from serving on the School Board was to be really patient,” Kim told me, when our conversation turned to the issue of “progressive values.”

“I didn’t want to be President of the School Board for the first few years, because I loved pushing the envelope,” Kim added, noting that as Board President David Chiu is in the often-unenviable position of chief negotiator between the Board and the Mayor.

But with Ed Lee’s appointment as interim mayor, Kim is excited about the coming year.
“There are a lot of new opportunities, a different set of players, and it’s going to be very interesting to learn how to traverse this particular scene.”

Kim is kicking off her first term on the Board with two pieces of legislation. The first seeks to address bedbug infestations. “Particularly around enforcement, including private landlords,” Kim said, noting that there have also been bedbug problems in Housing Authority properties.

Her second immediate goal is to look at pedestrian safety, a big deal in D6, which is traversed by freeways with off-ramps leading into residential zones.
“Pedestrian safety is a unifying issue for my district, particularly for all the seniors,” Kim said, citing traffic calming, speed limit enforcement and increased pedestrian traffic, as possible approaches.

Beyond those immediate goals, Kim plans to focus on jobs, economic development and small businesses in the coming year. “What can we do to create jobs and help small businesses? That is my focus, not from a tax reduction point of view, but how can we consolidate the permitting and fees process, because small businesses are a source of local jobs.”

Kim plans to help the Mayor’s Office implement Sup. John Avalos’ local hire legislation, which interim Mayor Ed Lee supports, unlike his predecessor Mayor Gavin Newsom.

“Everyone has always liked the idea of local hire, but without any teeth, it can’t be enforced,” Kim observed. “It’s heartbreaking that young people graduate out of San Francisco Unified School District and there’s been not much more than retail jobs available.”

She noted that jobs, land use and the budget are the three overarching items on this year’s agenda. “I’m a big believer in revenue generation, but government has to come half-way by being able to articulate how it will benefit people and being able to show that it’s more than just altruistic. I think we have to figure out that balance in promoting new measures. That’s why it’s important to be strong on neighborhood and community issues, so that folks feel like government is listening and helping them. I don’t think it’s a huge ask to be responsive to that.”

Kim said she hoped the new mayor would put out a new revenue measure, enforce local hire, and implement Sup. David Campos’ legislation to ensure due process for immigrant youth.

“I think Ed can take a lot of the goodwill and unanimous support,” Kim said. “We’ve never had a mayor without an election, campaigns, and a track record. Usually mayors come in with a group of dissenters. But he is in a very unique position to do three things that are very challenging to do. I hope raising revenues is one of those three. As a big supporter of local hire, I think it helps having a mayor that is committed to implement it. And I’m hoping that Ed will implement due process for youth. For me, it’s a no brainer and Ed’s background as a former attorney  for Asian Law Caucus is a good match. Many members of my family came to the U.S. as undocumented youth, so this is very personal. Kids get picked up for no reason and misidentified. People confuse Campos and Avalos, so imagine what happens to immigrant youth.”

Sup. Sean Elsbernd
District 7
Issues:
*Parkmerced
*Enforcing Prop G
*Pension & healthcare costs
*CalTrain

With two years left to serve on the Board, D7 Sup. Sean Elsbernd has been named vice-chair of the Rules Committee and a member of the City Operations & Neighborhood Services Committee. He was congratulated by Chinatown powerbroker Rose Pak immediately after the Board voted 11-0 to nominated former City Administrator Ed Lee as interim mayor, and during Lee’s swearing-in, former Mayor Willie Brown praised Elsbernd for nominating Lee for the job.

And at the Board’s Jan. 11 meeting before the supervisors voted for Lee, Elsbernd signaled that city workers’ retirement and health benefits will be at the center of the fight to balance the budget in the coming year.

Elsbernd noted that in past years, he was accused of exaggerating the negative impacts that city employees’ benefits have on the city’s budget. “But rather than being inflated, they were deflated,” Elsbernd said, noting that benefits will soon consume 18.14 percent of payroll and will account for 26 percent in three years. “Does the budget deficit include this amount?” he asked.

And at the afterparty that followed Lee’s swearing in, Public Defender Jeff Adachi, who caused a furor last fall when he launched Measure B, which sought to reform workers’ benefits packages, told the Guardian he is not one to give up lightly. “We learned a lot from that,” Adachi said. “This is still the huge elephant in City Hall. The city’s pension liability just went up another 1 percent, which is another $30 million.”

As for priorities, Elsbernd broke it down into district, city, and regional issues. In D7, “Hands-down, without question the biggest issue … is Parkmerced,” he said, starting with understanding and managing the environmental approval process. If it gets approved, he said his top concerns was that “the tenant issue. And the overriding concern of if they sell, which I think we all think is going to happen in the near-term – do those guarantees go along with the land?”

Also related to Parkmerced was planning for the traffic conditions that the development could potentially create, which Elsbernd dubbed a “huge 19th Avenue issue.”

Citywide, Elsbernd’s top priorities included enforcing Proposition G – the voter-approved measure that requires MUNI drivers to engage in collective bargaining – and tackling pension and healthcare costs. He spoke about “making sure that MTA budget that comes to us this summer is responsive” to Prop G.

As for pension and healthcare, Elsbernd said, “I’ve already spent a good deal of time with labor talking about it, and will continue to do that.” But he declined to give further details. Asked if a revenue-generating measure could be part of the solution to that problem, Elsbernd said, “I’m not saying no to anything right now.”

On a regional level, Elsbernd’s priority was to help CalTrain deal with its crippling financial problem. He’s served on that board for the last four years. “The financial situation at CalTrain – it is without question the forgotten stepchild of Bay Area transit, and the budget is going to be hugely challenging,” he said. “I think they’ll survive, but I think they’re going to see massive reductions in services.”

Sup. Scott Wiener
District 8
Issues:
*Transportation
*Reasonable regulation of nightlife & entertainment industry
*Pension reform

Elected in November 2010 to replace termed-out D8 Sup. Bevan, Wiener has been named a temporary member of the Board’s Budget and Finance Committee and a permanent member of the Land Use and Economic Development Committee.

“Transportation is a top priority,” Wiener said. ‘That includes working with the M.T.A. to get more cabs on the street, and making sure that the M.T.A. collectively bargains effectively with its new powers, under Prop. G.”

“I’m also going to be focusing on public safety, including work around graffiti enforcement, though I’m not prepared to go public yet about what I’ll be thinking,” he said.

“Regulating nightlife and entertainment is another top priority,” Wiener continued. “I want to make sure that what we do is very thoughtful in terms of understanding the economic impacts, in terms of jobs and tax  revenues, that this segment has. With some of the unfortunate incidents that have happened, it’s really important before we jump to conclusions that we figure out what happened and why. Was it something the club did inappropriately, or was it just a fluke? That way, we can avoid making drastic changes across the board. I think we have been very reactive to some nightclub issues. I want us to be more thoughtful in taking all the factors into consideration.”

“Even if we put a revenue measure on the June or November ballot, we’d need a two-thirds majority, so realistically, it’s hard to envision successfully securing significant revenue measure before November 2012,” Wiener added. “And once you adopt a revenue measure, it takes time to implement it and revenue to come in, so it’s hard to see where we’ll get revenue that will impact the 2012 fiscal year. In the short term, for fiscal year 2011/2012, the horse is out of the barn”

“As for pension stuff, I’m going to be very engaged in that process and hopefully we will move to further rein in pension and retirement healthcare costs.”

Sup. David Campos
District 9
Issues:
*Good government
*Community policing
*Protecting immigrant youth
*Workers’ rights and healthcare

Elected in 2008, D9 Sup. David Campos has been named chair of the Board’s Government Audit & Oversight Committee and a member of the Public Safety Committee. And, ever since he declared that the progressive majority on the Board no longer exists, in the wake of the Board’s 11-0 vote for Mayor Ed Lee, Campos has found his words being used by the mainstream media as alleged evidence that the entire progressive movement is dead in San Francisco.

“They are trying to twist my words and make me into the bogey man,” Campos said, noting that his words were not a statement of defeat but a wake-up call.

“The progressive movement is very much alive,” Campos said. “The key here is that if you speak your truth, they’ll go after you, even if you do it in a respectful way. I didn’t lose my temper or go after anybody, but they are trying to make me into the next Chris Daly.”

Campos said his overarching goal this year is to keep advancing a good government agenda.

“This means not just making sure that good public policy is being pursued, but also that we do so with as much openness and transparency as possible,” he said.

As a member of the Board’s Public Safety Committee, Campos says he will focus on making sure that we have “as much community policing as possible.

He plans to focus on improving public transportation, noting that a lot of folks in his district use public transit.

And he’d like to see interim mayor Ed Lee implement the due process legislation that Campos sponsored and the former Board passed with a veto-proof majority in 2009, but Mayor Gavin Newsom refused to implement. Campos’ legislation sought to ensure that immigrant youth get their day in court before being referred to the federal immigration authorities for possible deportation, and Newsom’s refusal to implement it, left hundreds of youth at risk of being deported, without first having the opportunity to establish their innocence in a juvenile court.
‘We met with Mayor Lee today,” Campos told the Guardian Jan. 18. “And we asked him to move this forward as quickly as possible. He committed to do that and said he wants to get more informed, but I’m confident he will move this forward.”

Campos also said he’ll be focusing on issues around workers’ rights and health care.
“I want to make sure we keep making progress on those fronts,” Campos said.

“It’s been a rough couple of days,” Campos continued, circling back to the beating the press gave him for his “progressive” remarks.“But I got to keep moving, doing my work, calling it as a I see it, doing what’s right, and doing it in a respectful way. The truth is that if you talk about the progressive movement and what we have achieved, which includes universal healthcare and local hire in the last few years, you are likely to become a target.”

Sup. Malia Cohen
District 10
Issues:
*Public safety
*Jobs
*Preserving open space
*Creating Community Benefit Districts
*Ending illegal dumping
Elected to replace termed-out D10 Sup. Sophie Maxwell, Cohen has been named chair of the City & School District committee, vice chair of the Land Use and Economic Development Committee and vice chair of the Public Safety Committee.

Cohen says her top priorities are public safety, jobs, open space, which she campaigned on, as well as creating community benefits districts and putting an end to illegal dumping.

“I feel good about the votes I cast for Ed Lee as interim mayor and David Chiu as Board President. We need to partner on the implementation of local hire, and those alliances can help folks in my district, including Visitation Valley.”

“I was touched by Sup. David Campos words about the progressive majority on the Board,” she added. “I thought they were thoughtful.”

Much like Kim, Cohen believes her legislative actions will show where her values lie.
“I’d like to see a community benefits district on San Bruno and Third Street because those are two separate corridors that could use help,” Cohen said. 

She pointed to legislation that former D10 Sup. Sophie Maxwell introduced in November 2010, authorizing the Department of Public Works to expend a $350,000 grant from the Solid Waste Disposal Clean-Up Site trust fund to clean up 25 chronic illegal dumping sites.
“All the sites are on public property and are located in the southeast part of the city, in my district,” Cohen said, noting that the city receives over 16,000 reports of illegal dumping a year and spends over $2 million in cleaning them up.

Sup. John Avalos
District 11
*Implementing Local Hire
*Improving MUNI / Balboa Park BART
*Affordable housing
*Improving city and neighborhood services

Sup. John Avalos, who chaired the Budget committee last year and has just been named Chair of the Board’s City Operations and Neighborhood Services Committee, said his top priorities were implementing local hire, improving Muni and Balboa Park BART station, building affordable housing at Balboa, and improving city and neighborhood services.

“And despite not being budget chair, I’ll make sure we have the best budget we can,” Avalos added, noting that he plans to talk to labor and community based organizations about ways to increase city revenues. “But it’s hard, given that we need a two-thirds majority to pass stuff on the ballot,” he said.

Last year, Avalos helped put two measures on the ballot to increase revenues. Prop. J sought to close loopholes in the city’s current hotel tax, and asked visitors to pay a slightly higher hotel tax (about $3 a night) for three years. Prop. N, the real property transfer tax, h slightly increased the tax charged by the city on the sale of property worth more than $5 million.

Prop. J secured only 45.5 percent of the vote, thereby failing to win the necessary two-thirds majority. But it fared better than Prop. K, the competing hotel tax that Newsom put on the ballot at the behest of large hotel corporations and that only won 38.5 percent of the vote. Prop. K also sought to close loopholes in the hotel tax, but didn’t include a tax increase, meaning it would have contributed millions less than Prop. J.

But Prop. N did pass. “And that should raise $45 million,” Avalos said. “So, I’ve always had my sights set on raising revenue, but making cuts is inevitable.”

Chiu stiffs progressives on key committee appointments

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Belying his repeated claims to being part of the progressive movement, Board of Supervisors President David Chiu has ousted his progressive colleagues from key leadership positions on board committees, placing fiscal conservatives into the chairs and majorities on the three most important committees and giving downtown interests more control over city legislation and projects than they’ve had in a decade.

Most notably, the chair of the Budget & Finance Committee was taken away from Sup. John Avalos – who challenged Chiu for the board presidency on Saturday – and given to Sup. Carmen Chu. While Chu did work on budget issues as a staffer in the Mayor’s Office before being appointed supervisor, which Chiu cited in support of his decision, she has consistently voted with the three-member minority of fiscal conservatives throughout her tenure as supervisor, opposing even the most widely accepted revenue proposals and progressive initiatives.

Chiu also placed himself in the swing vote role on that committee, naming Sups. Ross Mirkarimi and Jane Kim as the permanent committee members and Scott Wiener and himself as the temporary members who serve on the committee from March 1 through budget season. Asked if that was intentional, Chiu told us, “Sure was.” With the city facing a budget deficit of almost $400 million after seven years of budget deficits that were closed almost entirely through service cuts and fee increases – rather than general revenue increases targeted at the city’s richest individuals and corporations – the committee will be a key battleground between progressives and fiscal conservatives this year.

“The makeup of the committee reflects a real need for collaboration at this time of transition,” Chiu said of the Budget Committee. But Sup. David Campos was among the many progressives calling the committee assignments a major political realignment, telling us, “I don’t see how you can look at the committee assignments and not see some kind of realignment. The progressives are no longer in control of the key committees.” Avalos called it, “the price of moderates voting for Chiu.”

Also disappointing to progressives were Chiu’s choices for the Rules and Land Use committees. On the Rules Committee, which confirms mayoral appointments, approves the placement of charter amendments on the ballot, and will play a big role this year in approving the redrawing of supervisorial districts in the wake of the 2010 Census, Chiu named Kim and Sups. Sean Elsbernd and Mark Farrell, the latter two childhood buddies who represent the city’s two most conservative districts.

The committee takes the lead role in proposing the board’s three appointees to a task force that will draw the new legislative lines, as well as reviewing the other six appointees (three each from the Mayor’s Office and Elections Commission) and approving the plan that the task force produces. Downtown groups are expected to use the opportunity to negate the gains progressives have made in electing supervisors, probably in collaboration with Elsbernd and Farrell, a venture capitalist new to politics.

“Sean and Mark understand that if they push things through Rules that are outside the mainstream of who the board is, I expect that the full board will stop them,” Chiu told us. He also emphasized that Kim is chairing the committee, a role that can influence what items the committee considers: “On Rules, Sup. Kim will set the agenda there.”

Chiu sounded a similar rationale in defending a makeup on the Land Use & Economic Development Committee, to which he named new Sups. Scott Wiener and Malia Cohen – who were backed by development interests and opposed by tenant groups in last year’s election – along with Sup. Eric Mar as chair.

“With Eric at the helm, he will do a very good job at fighting for neighborhoods, tenants, and other interests,” Chiu said. But Avalos noted that Mar will have his hands full trying to manage a high-stakes, high-profile agenda with little help from his colleagues. “There’s a lot on Eric Mar’s shoulders. It’s his coming of age moment and he’ll have to step up big time to run that committee,” Avalos said.

Avalos said he was disappointed to be removed from the Budget Committee after working on it for eight of the last 10 years, first as Sup. Chris Daly’s legislative aide and then as a supervisor. “But I’m going to work behind the scene on the budget to make sure the communities are well-spoken for,” he said.

Chiu said he has gotten assurances from both Chu and Mayor Ed Lee “about the need for an open, transparent, and community-based budget process.” Carmen Chu echoed the point, telling us, “My hope is that this year the budget is going to be a very collaborative and open process.”

But on the need for need for revenue solutions, which Avalos has said are vital, David Chiu only went this far: “I am open to considering revenues as part of the overall set of solutions to close the budget deficit.” And Carmen Chu wouldn’t even go that far.

“At the end of the day, we need to take into account the context of the state budget, in terms of new cuts and taxes, because anything we do will be on top of the state level,” she told us, adding this about the revenue measures that she opposed last year, “We need to ask who do these measures really impact.”

For progressives, the only bright spots in the committee appointments were Avalos chairing the City Operations & Neighborhood Services Committees, with Mar and Elsbernd also serving; and Sup. Ross Mirkarimi chairing the Public Safety Committee, with Cohen and Campos on it as well.

“I told people I was going to be fair in committee assignments and I have been,” Chiu said.

Sarah Phelan and Tim Redmond contributed to this report.

Class of 2010: Mark Farrell

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steve@sfbg.com

Mark Farrell is a 36-year-old venture capitalist and political newcomer who will represent the wealthy neighborhoods of District 2 (Pacific Heights, Sea Cliff, and the Marina) after narrowly beating Janet Reilly, whose extensive political endorsements ranged from the Guardian and local Democratic Party Chair Aaron Peskin to U.S. Sen. Dianne Feinsein and Mayor Gavin Newsom.

Challenging the city’s political power structure is why Farrell said he ran for office, playing up his outsider status and investment banking experience. He told visitors to his campaign website, “I am running for the Board of Supervisors to bring common sense back to City Hall” and railed against “career politicians who run for office again and again.”

In an interview with the Guardian, Farrell said he was motivated to make his first foray into politics by the dysfunction he has heard about at City Hall. “I’ve been frustrated with City Hall over the last few years, from the personal antics to the policies that have come out,” Farrell told us. “I humbly believe I have something different to bring to the table.”

Farrell calls himself a fiscal conservative who believes “our city government has gotten too large and we need to look at that,” a task he thinks he’s well-suited for given his background in finance. Yet when asked what government functions he would eliminate or cut deeply to help close a projected $700 million budget deficit over the next two years, Farrell said he can’t offer any specifics yet, saying only, “We need to make tough decisions.”

Would Farrell be open to new taxes or other revenue-side budget solutions? He told us that he won’t completely reject the idea of new taxes, but that he generally opposes them. “I don’t believe in raising taxes. We can’t raise enough revenue to get out of this problem,” Farrell said. “We need to learn to live within our means.”

Although he opposed Prop. B in this election, Farrell said public employee pension reform needs to be a part of the city’s budget solution, as well as scaling back how much the city gives to nonprofit groups, which provide many of the social services the city supports.

Farrell was born and raised in San Francisco — except for his college years, he’s spent his whole life in D2, where his parents still live — and has been friends with Sup. Sean Elsbernd since high school. Politically, Farrell also identifies with Elsbernd and fellow fiscally conservative Sups. Carmen Chu and Michela Alioto-Pier (who endorsed Farrell to replace her in D2), but he says that he doesn’t want to be politically pigeon-holed.

“I’m very much my own person and I look forward to working with everyone,” Farrell said. Indeed, part of Farrell’s frustration with City Hall politics has been the divisive relationship between the progressives and moderates, which he sees as a hindrance to finding “common sense solutions.”

“The progressive and moderate labels have been relatively destructive to San Francisco,” Farrell said. “We need to get beyond that to focus on issues.”

Yet people’s political values and worldview determine what issues they care about and the solutions they favor. For example, progressives decry the dearth of affordable being built for San Franciscans and cite city studies showing that deficit will get worse as developers build ever-more market rate housing (see “Dollars or sense?” Sept. 28), particularly in a city that is two-thirds renters.

Farrell said he supports rent control (saying he was unfairly attacked during the campaign as anti renter) and sees the dwindling rental stock and lack of new affordable units being constructed as problems, but he doesn’t have a solution to those problems. In fact, Farrell supports allowing more condo conversions, which would make the problem worse, telling us, “I believe home ownership is something we should promote.”

He was also vague about how he will approach land use issues and how tough he’ll be with developers in having them meet city design guidelines and provide affordable housing and other community benefits, saying only, “We need to have sustainable development in the city.”

Yet the issues that do animate Farrell are those typically focused on by conservative D2 voters. Farrell lists his top priorities as seeing to his district’s needs, promoting private sector job creation (“I think a lot of lip service has been paid to it, but not a lot of action by City Hall,” he said), public safety, and quality-of-life issues (he supported Prop. L, the sit-lie ordinance, calling it “very reasonable”). Generally Farrell sees San Francisco as a city in he midst of a serious fiscal crisis, “and I want to create a San Francisco that is secure for the future over the long haul.”

The biggest fish

6

rebeccab@sfbg.com

Shortly after Larry Ellison, the billionaire CEO of Oracle Corp. and owner of the BMW Oracle Racing Team, won the 33rd America’s Cup off the coast of Valencia, Spain, in February 2010, a reception was held in his honor in the rotunda at San Francisco City Hall.

The event drew members of Ellison’s sailing crew, business and political heavyweights such as former Secretary of State George Schultz, and other VIPs. Attendees posed for photographs with the tall, glittering silver trophy at the base of the grand staircase.

As part of the celebration, Ellison helped Mayor Gavin Newsom into an official BMW Oracle Racing Team jacket, and Newsom granted Ellison a key to the city, a symbolic honor usually reserved for heads of state and the San Francisco Giants after they won the World Series. Shortly after, the mayor and the guest of honor, whom Forbes magazine ranked as the sixth-richest person in the world, sat down for a face-to-face.

That meeting marked the beginning of the city’s bid to host the 34th America’s Cup in San Francisco in 2013. Since securing the Cup, Ellison has made no secret of his desire to stage the 159-year-old sailing match against the iconic backdrop of the San Francisco Bay, a natural amphitheater that could be ringed with spectators gathered ashore while media images of the stunningly expensive yachts are broadcast internationally.

Newsom and other elected officials have feverishly championed the idea, touting it as an opportunity for a boost to the region’s anemic economy. The city’s Budget & Legislative Analyst projects roughly $1.2 billion in economic activity associated with the event — the real prize, as far as business interests are concerned. It would also create the equivalent of 8,840 jobs, mostly in the form of overtime for city workers and short-term gigs for the private sector.

While the idea has won preliminary support from most members of the Board of Supervisors, serious questions are beginning to arise as the finer details of the agreement emerge and the date for a final decision draws near.

Ellison and the race organizers would be granted control of 35 acres of prime waterfront property in exchange for selecting San Francisco as the venue for the Cup and investing $150 million into Port of San Francisco infrastructure. But the event would result in a negative net impact to city coffers.

Hosting the event and meeting Ellison’s demands for property would cost the city about $128 million, according the Budget & Legislative Analyst, just as city leaders grapple with closing a projected $712 million deficit in the budget cycle spanning 2011 and 2012.

Part of the impact is an estimated $86 million in lost revenue associated with rent-free leases the city would enter into with Ellison’s LLC, the America’s Cup Event Authority (ACEA). In exchange for selecting San Francisco as a venue and investing in port infrastructure, ACEA would win long-term control of Piers 30-32, Pier 50, and Seawall Lot 330 — waterfront real estate owned by the Port of San Francisco, with development rights included. Seawall Lot 330, a 2.5-acre triangular parcel bordered by the Embarcadero at the base of Bryant Street, would either be leased long-term or transferred outright to ACEA.

The most vociferous opponent of the America’s Cup plan is Sup. Chris Daly, who has voiced scathing criticism of the notion that the city would subsidize a billionaire’s yacht race at a time of fiscal instability. “The question is whether or not the package that San Francisco’s putting together is good or bad for the city,” Daly told the Guardian, “and whether or not it’s the best deal the city can get.”

 

THE CREW

According to a Forbes calculation from September 2010, Ellison’s net worth is $27 billion, making him several times wealthier than the City and County of San Francisco, which has a total annual budget of about $6 billion. Ellison reportedly spent $100 million and a decade pursuing the Cup.

As soon as Ellison expressed interest in bringing the Cup to San Francisco, Newsom began charting a course. Park Merced architect and Newsom campaign contributor Craig Hartman of the firm Skidmore, Owings & Merrill was tapped to reimagine the piers south of the Bay Bridge as the central hub for the event, and soon Hartman’s vision for a viewing area beneath a whimsical sail-like canopy was forwarded to the media.

The mayor also issued letters of invitation to form the America’s Cup Organizing Committee (ACOC), a group that would be tasked with soliciting corporate funding for the event. ACOC was convened as a nonprofit corporation, and it’s a powerhouse of wealthy, politically connected, and influential members.

Hollywood mogul Steve Bing, who’s donated millions to the Democratic Party and funded former President Bill Clinton’s 2009 trip to North Korea to rescue two imprisoned American journalists, is on the committee. So is Tom Perkins, a Silicon Valley venture capitalist, billionaire, and former mega-yacht owner who was once dubbed “the Captain of Capitalism” by 60 Minutes. George Schultz and his wife, Charlotte, are members. Thomas J. Coates, a powerful San Francisco real estate investor who dumped $1 million into a 2008 California ballot initiative to eliminate rent control, also has a seat. Coates resurfaced in the November 2010 election when he poured $200,000 into local anti-progressive ballot measures and the campaigns of economically conservative supervisorial candidates.

Billionaire Warren Hellman, San Francisco socialite Dede Wilsey, and former Newsom press secretary Peter Ragone are also on ACOC. There are representatives from Wells Fargo, AT&T, and United Airlines. One ACOC member directs a real estate firm that generated $2.5 billion in revenue in 2009. Another is Martin Koffel, CEO of URS Corp., an energy industry heavyweight that made $9.2 billion in revenue in 2009. There’s Richard Kramlich, a cofounder of a Menlo Park venture capital firm that controls $11 billion in “committed capital.” And then there’s Mike Latham, CEO of iShares, which traffics in pooled investment funds worth about $509 billion, according to a BusinessWeek article.

There’s also an honorary branch of ACOC composed of elected officials including House Minority Leader Nancy Pelosi, Gov. Arnold Schwarzenegger, Sen. Dianne Feinstein, and others. Their role is to help the Cup interface with various governmental agencies to control air space, secure areas of the bay exclusively for the event, set up international broadcasts, and bring foreign crew members and fancy sailboats into the United States without a hassle from immigration authorities.

ACOC is expected to raise $270 million in corporate sponsorships for the America’s Cup. That money will be funneled into the budget for ACEA. It’s unclear whether the $150 million ACEA is required to invest in city piers will be derived from ACOC’s fund drive.

The city also anticipates that ACOC would raise $32 million to help defray municipal costs. “However,” the Budget & Legislative Analyst report cautions, “there is no guarantee that any of the anticipated $32 million in private contributions will be raised.”

A seven-member board, chaired by sports management executive Richard Worth, will direct the ACEA, according to Newsom’s economic advisors, but the other six seats have yet to be filled. ACEA’s newly minted CEO is Craig Thompson, a native Californian who previously worked with a governing body for the Olympics and has helped coordinate major sporting events internationally. In an interview with sports blog Valencia Sailing, Thompson provided some insight on why major corporations might be inspired to donate to the cause. Basically, the Cup is the holy grail of networking events.

“It’s a very difficult economic situation we are going through, and it’s not the best time to be looking for sponsors for a major event,” Thompson acknowledged. “On the other hand, the America’s Cup is one of the very few activities … that offer access to really top-level individuals in terms of education or economic situation. The America’s Cup is a unique platform for a lot of companies that want access to those individuals that are very difficult to reach under normal circumstances. I can tell you for example that Oracle is very pleased with the marketing opportunity the America’s Cup has presented to them. They invite their best customers and are very successful in turning the America’s Cup into a platform for generating business. The same thing can be true for a lot of different companies that need access to wealthy individuals.”

But should San Francisco taxpayers really be subsidizing a networking event for the some of the business world’s richest and most powerful players?

 

TRANSFORMING THE WATERFRONT

Over the past four months, Newsom’s Office of Economic and Workforce Development (OEWD) has been negotiating with race organizers to hash out a Host City Agreement outlining the terms of bringing the America’s Cup to San Francisco.

The proposal will go before the Board of Supervisor’s Budget & Finance Committee on Dec. 8, and to the full board Dec. 14. A final decision on whether San Francisco will host the race is expected by Dec. 31. ACEA and ACOC will each sign onto the agreement with the City and County of San Francisco.

From the beginning, the event was envisioned as “the twin transformation,” according to OEWD — the America’s Cup would be transformed by attracting greater crowds and heightened commercial interest while San Francisco’s crumbling piers would be revitalized through ACEA’s $150 million investment in port infrastructure.

The plan paints downtown San Francisco as the “America’s Cup Village” during the sailing events, and a study produced by Beacon Economics estimates that the financial boost would come primarily from hordes of visitors flocking to the event — more than 500,000 are expected to attend. The city expects a minimum of 45 race days, including one pre regatta in 2011 and one in 2012 (or two in 2012 if the one in 2011 doesn’t happen), a challenger series in 2013, and a final match in 2013.

The transformation of the city’s waterfront would be dramatic. In addition to the rent-free leases for Piers 30-32, 50, and Seawall Lot 330, ACEA would be granted exclusive use of much of the central waterfront, water, and piers around Mission Bay, and water and land near Islais Creek during the course of the event. Under the Host City Agreement, race organizers would have use of water space spanning Piers 14 to 22 ½; Piers 28, 38, 40, 48, and 54, a portion of Seawall Lot 337, and Pier 80, where a temporary heliport would be sited.

Seawall Lot 330, a 2.5-acre parcel valued by the Port at $33 million, lies at the base of Bryant Street along the Embarcadero and has a nice unimpeded view of the bay. Piers 30-32 span 12.5 acres, and Pier 50 is 20 acres.

The Budget & Legislative Analyst’s study predicts that the ACEA could opt to build a 250-unit condo high-rise on Seawall Lot 330, deemed the most lucrative use. Under the Host City Agreement, the city would be obligated to remove Tidelands Trust provisions from Seawall Lot 330, which guarantee under state law that waterfront property is used for maritime functions or public benefit. Tweaking the law for a single deal would require approval from the State Lands Commission, but Newsom, in his new capacity as lieutenant governor, would cast one of the three votes on that body.

The combination of construction, demolition, lost rent revenue, police and transit, environmental analysis, and other event costs would hit the city with a bill totaling around $64 million, according to the Budget & Legislative Analyst study. Since city government would recoup around $22 million in revenue from hosting the Cup, the net impact would be around $42 million. That doesn’t include the potential $32 million assistance from ACOC.

At the same time, the city would stand to lose another $86.2 million by granting long-term development rights to 35 acres of Port property for 66 to 75 years without charging rent, bringing the total cost to $128 million. OEWD representatives played down that loss in potential revenue, saying past attempts to redevelop piers hadn’t been successful because none could handle the upfront investment to revitalize the crumbling piers.

The Host City Agreement has raised skepticism among Port staff and the Budget Analyst that tempered initial enthusiasm for the event. “The terms of the Host City Agreement will require significant city capital investment and will result in substantial lost revenue to the Port,” a Port study determined. Faith in that plan seems to be eroding and it may be scrapped for an alternative plan that’s cheaper for the city.

The Northern Waterfront alternative substitutes Piers 19-29 as the primary location for the event and eliminates the Mission Bay piers from the equation. Under this scenario, ACEA would invest an estimated $55 million, instead of $150 million. In exchange, it would receive long-term development rights to Piers 30-32 and Seawall 330 on “commercially reasonable terms,” according to a Port staff report.

Board of Supervisors President David Chiu requested that the Port explore that second option more fully, and the Port report notes that it would reduce the strain on Port revenue. The Northern Waterfront plan would cost the Port a total of $15.8 million, instead of $43 million, the report notes. Port staff recommended in its report that both the original agreement and the alternative be forwarded to the full board for consideration.

 

PHANTOM BIDS?

Under the competition’s official protocol, Ellison, as defender of the Cup, has unilateral power to decide where the next regatta will be held. Race organizers have said it’s a toss-up between San Francisco and an unnamed port in Italy — though it’s anyone’s guess how seriously a European site is being considered by a team headquartered at the Golden Gate Yacht Club, a stone’s throw from the Golden Gate Bridge.

According to a San Francisco Chronicle article published in early September, Newsom issued a memo stating that San Francisco was competing against Spain and Italy to become the chosen venue. Valencia was said to be offering a “generous financial bid,” and a group in Rome was rumored to have offered some $645 million to bring the Cup to Italian shores, the memo noted. It was a call for the city to present Ellison with the most attractive deal possible to compel him to pick San Francisco.

Speaking at an Oct. 4 Land Use Committee hearing, OEWD director Jennifer Matz told supervisors: “San Francisco was designated the only city under consideration back in July. Now we are competing against the prime minister of Italy and the king of Spain.”

However, the veracity of those claims came into question in mid-November. Daly, incensed that the Mayor’s Office never communicated with him about the Cup despite wanting to hold it in his sixth supervisorial district, launched his own personal investigation. He fired off an e-mail to Team Alinghi, a prior America’s Cup winner, and began communicating with other European contacts until he got in touch with someone in Valencia’s municipal government.

“I got a call back from a representative who basically said I should know something,” Daly recounted. Valencia, his source said, never submitted a bid to host the Cup. At a Nov. 13 press conference, Valencia’s mayor Rita Barbera confirmed this claim, according to a Spanish press report, expressing disappointment that the city had been eliminated from consideration as a host venue. “There was no formal bidding process,” she charged. She also denied reports that any money had been offered.

Meanwhile, the Budget Analyst was unable to find any concrete evidence that other host city bids had been submitted. “We have nothing to confirm that other offers have been made,” Fred Brousseau of the Budget Analyst’s office told the Guardian.

In response to Guardian queries about whether the Mayor’s Office had evidence that Italy had indeed submitted a bid, Project Manager Kyri McClellan of the OEWD forwarded a one-page resolution from the Italian prime minister assuring race organizers that there would be tax breaks, accelerated approvals, and other perks guaranteed if the Cup came to Italy. However, an Italian journalist who looked over the resolution told the Guardian that the document didn’t appear to be a formal bid, merely a response to a query from race organizers.

Daly has his doubts that either Valencia or the Italian port were ever seriously considered. “I think they were phantom bids,” he said, “created by either Larry Ellison or the Newsom administration … to place pressure on the Board of Supervisors.”

A representative from OEWD told the Guardian that officials have no reason to doubt that the European bids, and accompanying offers of money, were real. However, the city wasn’t privy to race organizer’s discussions about possible European venues. A final decision is expected before the end of the year.

Daly hasn’t held back in voicing opposition to the America’s Cup and blasted it at an Oct. 5 Board meeting. “This tacking around Sup. Daly will not get you in calmer waters,” Daly said. “I told myself I was not going to make a yachting reference. But I will bring a white squall onto this race and onto this Cup, and I will do everything in my power starting on Jan. 8 to make sure these boats never see that water.”

 

WIND IN WHOSE SAILS?

The America’s Cup would undoubtedly bring economic benefit to the area and create work at a time when jobs are scarce. Police officers would get overtime. Restaurant servers would be scrambling to keep up with demand. Construction workers seeking temporary employment would get gigs. Hotels would rake it in. Pier 39 would be booming. However, the Budget Analyst report cautioned: “It is unlikely that any labor benefits would remain in the years after the America’s Cup event is completed.”

Certain small businesses would catch a windfall. John Caine, owner the Hi Dive bar at Pier 28, didn’t hesitate when asked about his opinion on the city hosting the Cup. “Please come fix our piers. It’s a shout-out to Larry Ellison,” he said. Caine said he supports the America’s Cup bid 100 percent, and is excited about the boost it could give his business. The Hi Dive would not be required to relocate under the proposal, he added.

At the same time, other small business would be negatively affected, particularly those among the 87 Port tenants who would be forced to relocate to make way for the America’s Cup. The Budget Analyst’s report also notes that retail businesses in the area whose services had no appeal to race-goers might suffer from reduced access to their stores, since crowding and street closures would shut out their customers.

The sailing community has rallied in support of the Cup, and Newsom has received hundreds of e-mails from yachting enthusiasts from as far away as Hawaii and Florida promising to travel to San Francisco with all their sailing friends to watch the world-famous vessels compete.

Ariane Paul, commodore of a classic wooden boat club called the Master Mariners Benevolent Association, told the Guardian that she was excited about the opportunity for the America’s Cup to showcase sailing on the bay. “In the long term, it’s a win-win,” Paul said. “It would be great to have that boost.” As for the financial terms of the deal, she remained confident, saying, “I don’t think that the city is going to let Larry Ellison walk all over them.”

Sup. Ross Mirkarimi is often politically aligned with Daly, but not when it comes to the issue of the America’s Cup. As a kid growing up on the island of Jamestown, a tiny blue-collar community located off the coast of Rhode Island, Mirkarimi learned to sail and occasionally spent summers working as a deckhand. Every few years, the America’s Cup would come to nearby Newport, transforming the area into a bustling hub and bringing the locals into contact with famous sailors. It left an everlasting impression. When the BMW Oracle Racing Team secured the 33rd Cup off the coast of Valencia, Mirkarimi did a double-take when he saw a photograph of the winning team — his childhood friend from Rhode Island was on the crew.

Mirkarimi told the Guardian he supports bringing the Cup to San Francisco because of the economic boost the area will receive — if the Cup continues to return to San Francisco as it did for 53 years in Newport, he said, the city could look forward to a free gift in improved revenue associated with the event, and that could help quiet the tired annual debates over painful budget cuts.

At the same time, he acknowledged that the Budget Analyst report had prompted what he called healthy skepticism. “I think the onus is on the city and Cup organizers to make sure the benefits far, far outweigh the investment,” Mirkarimi said. “This effort is not just about making one of the wealthiest men in the United States that much more wealthy … That can’t be the case,” he said. “It has to be about what will the Cup do in order to be a win-win for the people of San Francisco.” Mirkarimi said he expected scrutiny of the details of the agreement at the Dec. 8 Budget and Finance Committee hearing: “Naturally, in this time of economic downturn … people want to know, what’s the outlay of cost, and what are we going to get in return?” 

Critical care

5

Sarah@sfbg.com

A complex and controversial project that would involve five San Francisco hospitals — including building a huge showcase facility for the wealthy atop Cathedral Hill — has prompted a debate about what average city residents need from the health care system.

California Pacific Medical Center, an affiliate of Sutter Health, proposes to downsize St. Luke’s Hospital, which primarily serves a low-income population in the Mission District, as part of a $2.5 billion proposal to renovate and retrofit three existing medical campuses, close another one, and build housing and a megahospital on Cathedral Hill that would draw patients from around the country.

CPMC’s grandiose plan was being considered strictly as a land use decision, despite its far-reaching impact on the city’s health care system. So Sup. David Campos created legislation calling for the city to create a citywide health services master plan and to use that as another tool for gauging future medical projects.

Debate over that legislation left some activists on both sides unhappy, with progressives disappointed that it won’t be able to stop a CPMC project they see as neglectful of the poor, and moderates wary of creating a new way to challenge development projects in the face of widespread unemployment in the construction industry.

But it struck a fine enough balance to win 8-3 approval by the board Nov. 16, enough to override a threatened mayoral veto. “I’m really happy and excited about the passage of this legislation,” Campos told the Guardian after the vote.

The legislation has a two-part mandate, with the first part kicking in as soon as it has final approval. It requires the Planning Department, with input from the Department of Public Health, to prepare a health care services master plan to identify current and projected needs for health care services and where they should be provided.

The second part, which begins in 2013, requires Planning to determine whether medical projects are consistent with the findings of this plan. That delay is credited to a last-minute amendment Campos granted during a Nov. 15 committee hearing after the hospital industry complained that the process could jeopardize its ability to meet state-mandated seismic retrofitting deadlines for projects already in the planning pipeline.

The passage of Campos’ legislation comes eight months after President Barack Obama signed the Patient Protection and Affordable Care Act. Hailed by its supporters as the most significant change to the U.S. health care delivery systems in 40 years, the reform package has also been greeted with criticism on both ends of the political spectrum. Progressives complain that it relies too heavily on private insurance companies and medical providers, while Tea Party supporters says that it’s government run amok and they have vowed to “kill the bill.” Senate Minority Leader Mitch McConnell (R-Ky) recently compared so-called Obamacare to “tyranny” in a speech to conservative legal scholars.

But here in San Francisco, the debate over Campos’ legislation — as heated and divisive as it was at times — yielded a surprising amount of consensus around the long-neglected idea that government should play a role in health care planning.

 

PULLING THE PLUG

The passage of Campos’ legislation marks the first time in 30 years that a government entity has mandated health care services planning in California. That approach West Bay Health Systems Agency, whose creation he opposed as governor of California.

Lucy Johns, a San Francisco-based health care planning consultant who wrote the only health care services master plan California has ever had, recalls what happened in the mid-1970s after President Gerald Ford signed legislation that established health system agencies nationwide.

“California established 14 health systems agencies, including the West Bay Health System Agency, which governed the nine Bay Area counties,” Johns told the Guardian. “The legislation mandated that they be established by every state, with the federal government providing the funding. So every state had to decide how many, how big, and how structured the health system agencies would be.”

Johns notes that state legislators were constrained when it came to the decisions these health service agencies made. “The governing bodies of the health systems agencies had to have a membership that was 51 percent consumer and 49 percent healthcare provider, which included doctors, nurses, and hospital administrators,” she said.

That history served as a backdrop for discussion of the Campos legislation, with the Planning Department staff report noting, “With the elimination of the West Bay Health Systems Agency in 1981, there is no longer a routine or comprehensive analysis of health service resources, needs, trends, and local impacts conducted for changes to or within medical uses.”

“It’s truly a historic moment for San Francisco,” Campos said after his legislation passed its Nov. 16 first reading (the second and final reading is set for Nov. 23, after Guardian press time). “We are the first city in the country to make sure land use decisions are aligned to our health care needs. That’s an unprecedented step that will shape the future of healthcare planning for years to come.”

Campos acknowledged that the passage of Obama’s heath reform package — which includes a mandate to purchase private health insurance beginning in 2014 — was also a catalyst for his legislation, along with the CPMC project.

“But it had more to do with seeing that the city didn’t have the tools it needed to evaluate projects in terms of whether they met the city’s healthcare needs and how they might impact people’s access to healthcare,” Campos said. “The main catalyst came from the community, which felt it was being asked to make decisions that will have long-lasting health care implications, but didn’t have any way to understand those needs. Those concerns were compounded by changes at the national level — and the recognition that these changes offer us an opportunity to engage in planning.”

Campos’ legislative victory came two months after members of the Cathedral Hill Neighbors Association joined nurses, medical workers, patients, and community groups in voicing concerns at a Sept. 23 public hearing about the draft environmental impact report for CPMC’s Cathedral Hill hospital and the other facilities that are part of its proposal.

These groups collectively expressed fear that downsizing St. Luke’s, closing the CPMC California campus, and transforming CPMC Pacific campus to an outpatient-only hospital will force low-income people to travel farther to access health care services while offering better service to the wealthy at Cathedral Hill. And neighbors worried that the proposed complex would increase traffic and require the demolition of rent-controlled apartments.

Formed in 1991 through the merger of Pacific-Presbyterian Medical Center and Children’s Hospital of San Francisco, CPMC has been affiliated with Sutter Health since 1996 and currently has four medical campuses in San Francisco: Pacific in Pacific Heights, California in Presidio Heights, Davies in the Duboce Triangle, and St. Luke’s in the Mission.

But CPMC’s longtime goal was to build a facility intended to be like the Mayo Clinic of the West Coast, a 15-story, 555-bed full-service hospital and specialty care facility at the corner of Van Ness Avenue and Geary Boulevard. Company officials have made approval for that project conditional on keeping St. Luke’s open in the face of the state’s deadline on seismic safety standards that the hospital doesn’t now meet.

“St. Luke’s Hospital was the big issue that got our attention,” Le Tim Ly, lead organizer for the Chinese Progressive Association, told the Guardian. His group has worked with residents in the city’s southeast sector around environmental justice, air quality, and pollution issues when they became aware of the threat to St. Luke’s. “All this, coupled with efforts to downsize Luke’s, left us alarmed by the disproportionate impact on an already impacted area.”

But alarm over CPMC’s plans has now revived the idea of healthcare planning.

 

MAKING A PLAN

As recently as the beginning of November, representatives for the Hospital Council of Northern and Central California — whose members include CPMC, Chinese Hospital, Jewish Home, Kaiser Permanente, Laguna Honda, St Luke’s, St. Mary’s, San Francisco General Hospital, and Veterans Affairs Medical Center — seemed opposed to any change in the way healthcare planning is done in San Francisco.

At a Nov. 1 hearing on the Campos legislation at the board’s Land Use and Economic Development Committee, Ron Smith, the Hospital Council’s senior vice president for advocacy, said his organization favored maintaining the city’s current procedures. “We would like to propose that the Health Commission does the planning, the Planning Commission does the land use, and that there is a required determination process which is in the current legislation,” Smith said. “We’re proposing that that continue.”

But two weeks later, after Campos amended his legislation so projects now in the planning pipeline are exempt from having to comply with the city’s health care services master plan, some members of the Hospital Council seemed to have a change of heart.

CPMC’s Chief Executive Officer Warren Browner surprised just about everybody when he publicly stated in mid-November that CPMC supports health care planning. “We strongly support the efforts of the city — we are in favor of health planning,” Browner said at a Nov. 15 hearing on the legislation.

“That statement was extraordinary,” said Lucy Johns, recalling CPMC’s history of resisting government control. “The conversation about this legislation has already changed the discourse, at least in public.”

Linda Schumacher, chief executive officer of Chinese Hospital, a community-owned, not-for-profit facility, explained at the same hearing that her organization had been concerned that Campos’ legislation would affect her hospital’s ability to move ahead with a $150 million project that has been in the pipeline since 2003.

“We thank you for that amendment that allows the effective date to be changed,” she said.

“It shows how much progress had been made, even before this legislation goes into effect,” Campos said of the hospital industry’s apparent shift in attitude. “It’s a monumental step, something that was not expected as recently as a few months ago.”

But Ly of the Chinese Progressive Association said he believes the Hospital Council still doesn’t want to see the city getting involved. “As recently as a month ago, their folks were speaking out against any kind of legislation. But I think they started seeing the writing on the wall.”

Ly fretted about the potential negative impact of Campos’ last-minute amendments. Sup. Campos’ plan represents a victory. But we could use that information as soon as possible. The 2013 deadline means the city will be handicapped: it will have information it can’t use yet.”

Ly ventures that the hospital industry’s approach will be to try to lessen the impact of the legislation. “As written, it still provides the Planning Commission and the board with the discretion to approve projects,” Ly said. “Ultimately, the struggle is about values. Just because there are plans and guidance doesn’t mean the healthcare needs of the community will become a top priority — it just provides us with tools to make an assessment.”

Campos counters that his bill will allow the city to create incentives for, and apply pressure on, the hospital industry. “If they truly want their projects to be expedited and approved before state-mandated seismic retrofitting deadlines kick in, they’ll propose plans that work for the community,” Campos explained.

But even as it publicly vows to be supportive, the Hospital Council continues to express concerns about the Campos legislation. “It’s the council’s job is to be supportive now that the board has approved Campos’ plan,” Smith said. “And Sup. Campos was very generous. He started talking to us in June. But we really didn’t get a handle on his proposal until much later. We think the idea of healthcare planning is very good. We still have concerns about the process, but now the board has voted on the legislation, our goal is to do our best to work with the law.”

Concerns that the legislation would be used to mire projects in repeated appeals and give too much weight to critics’ concerns was raised at the Nov. 16 hearing by Sup. Sean Elsbernd.

“Right now, if anyone has concerns, there’s a conditional use process and a CEQA [California Environmental Quality Act] process,” Elsbernd told the Guardian. “But this turns up a brand new appeal. It means the appeals are heard at the same time, but you’ve now created a third route.”

Campos responded to these concerns by amending the legislation to clarify that the board must act on consistency determination appeals at the same time it acts on other related appeals, so projects won’t be delayed.

Evidently this wasn’t enough to appease the San Francisco Chamber of Commerce. “We cannot be supportive of that piece of legislation,” Rob Black, the Chamber’s vice president of public policy, told the Guardian after the legislation was approved. “We believe appeals should be done at the Department of Public Health in conjunction with service providers, since San Francisco provides 20 percent of service, and private organizations provide the remaining 80 percent.”

Black says the Chamber was pleased Campos amended his legislation so as not to slow down projects that are currently in the planning pipeline. But he claimed Campos’ legislation could actually limit access to healthcare services. “The Chamber is concerned that Campos’ legislation will make it harder for doctors to pool together in pods, and if we don’t do that, it won’t make healthcare more available because services will be more expensive,” Black said. “But we absolutely think” the city should analyze gaps in providing health care to San Franciscans.

Campos’ aide Hillary Ronen confirmed that Black is correct in saying that anyone can appeal a hospital project’s consistency determination. “But the final analysis will revolve around asking if the proposed project meets the health care needs of San Francisco,” she said. “If it doesn’t, and the board doesn’t believe there’s a compelling public policy reason to approve the project, [the board] can override the approval.”

 

PATIENTS VS. PROFITS

Mary Michelucci, a registered nurse for 40 years and a member of the California Nurses Association, is hopeful that Campos’ legislation will rein in the hospital industry.

“I hope that any plan that would favor patient care over profit would be the way to go,” Michelucci said. “Running a hospital is expensive. But with the profits that Sutter and CPMC are making, they can afford this.”

Michelucci says the dispute over St. Luke’s came to a head three years ago, when nurses began to suspect that CPMC was planning to let the facility fail, suspicions that intensified when CPMC closed St. Luke’s neonatal intensive care unit 18 months ago.

“Now the babies who need neonatal special care are transported to CPMC’s California campus, which is in the Richmond,” Michelucci said. “But the moms may be discharged and most of them live in the Mission or Bayview-Hunters Point.”

Michelucchi still fears that CPMC will wage “a horrific campaign” against the California’s Nurses Association as it continues to push the plan for its megahospital. “CPMC wants to be in complete control of the registered nurses,” she said. “We, unfortunately, are their conscience, while they are a business model in the business of healthcare. The decisions they make about healthcare are not in the interests of patients or nurses, and we are the thorn in their side.”

All this is happening against the backdrop of the worst economic recession since the Great Depression, and for construction workers facing high unemployment rates in San Francisco, CPMC’s megaproject clearly represents light at the end of a very dark tunnel.

“CPMC is my future,” William Hestor, a 28-year-old father of two and member of SEIU-United Healthcare Workers, said at the Nov. 15 hearing. “We worked hard on a contract and we just want to make sure our hospital is built on time.”

CPMC media spokesperson Kevin McCormack told the Guardian that the real issue between CPMC and the CNA is union membership at CPMC’s Cathedral Hill facility. “CPMC is reducing beds at St. Luke’s because the beds aren’t in use, but the facility will be able to take care of 90 percent of patients’ needs and if you need specialist care, a shuttle will take you to Cathedral Hill,” McCormack said. “This centralized arrangement is the best way to attract the best staff and equipment.”

McCormack noted that there are union members and 1,200 nonunion nurses working at CPMC facilities in San Francisco. “We are bringing together nonunion and union nurses together at this facility, and we don’t feel we have the right to force our nonunion nurses to join,” he said, adding that since the Teamsters, the Carpenters, and SEIU-United Healthcare Workers (UHW) are already unionized at the Pacific and California campuses, they’ll be allowed to unionize at Cathedral Hill.

CNA member Eileen Prendiville, who has worked in San Francisco as a registered nurse for decades, recalls the negative changes she has already seen at CPMC’s facilities, including eliminating registered nurses and specialty services.

“If you pull services, as they have, of course you’ll have fewer patients. And the physicians start leaving, so it’s a vicious cycle,” she said. “St. Luke’s was a small community hospital but now it’s all about corporate medicine.”

Sup. Eric Mar sided with those seeking to exempt current projects from the city’s health care services master plan. But Sup. Sophie Maxwell noted that the Planning Commission will take a facility’s historical role into account in determining whether projects are consistent with the city’s health care services plan.

“We believe that addressed community concerns,” Maxwell said. “St. Luke’s would never have been targeted for closure had this legislation been on the books in the past.”

Campos insists his legislation is not simply about CPMC. “Ultimately this legislation stems from a number of pleas we have heard in the last couple of years from people throughout the city,” he said. “It takes the institutional master planning process to the next level. We have tried to consolidate the appeal process under existing law. Important as the legislation is, it’s key to make sure we have the right master plan because that’s where the heavy lifting will take place.”

Meanwhile, the final EIR is being completed for the CPMC project, which should go before the Board of Supervisors for approval early next year.

The perils of unaccountable power

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By Saul Bloom

OPINION San Francisco has two redevelopment commissions that together have broad, sweeping authority over land use and development in the city. The Redevelopment Agency Commission and the Treasure Island Development Authority (TIDA) have more power in some respects than the Board of Supervisors — people you actually vote for.

There is no way to overstate the importance of the power of these commissions. The Candlestick Shipyard and Treasure Island projects by themselves account for an area the size of the Presidio. Over the next decade, the commissions will oversee the outcome of the Schlage Lock parcel in Visitacion Valley, the Bayview-Hunters Point Project Area, the Hunters Point Shipyard and Candlestick Point, India Basin, Mission Bay, South of Market, and Treasure and Yerba Buena islands.

Two important questions these commissions raise are: 1) Is It healthy for our city and county to vest so much authority into two essentially unaccountable authorities; and 2) Would it be better to vest this responsibility in the Board of Supervisors — considering that it’s the norm around the state for these local legislatures to also act as redevelopment commissions?

In San Francisco, redevelopment commissioners are appointed by the mayor and confirmed by the Board of Supervisors. The board cannot select its own representatives. The commissions wield the power of independent financial authority, multimillion dollar agency contracts, and the ability to destroy a community near you. This is a substantial amount of authority for an unelected body.

The mayor and six members of the Board of Supervisors are all that is required to allow a commissioner to serve for life. There are no term limits for commissioners. There are no meaningful criteria to judge a commissioner’s appointment. There is no yard stick by which to measure a panel member’s worthiness for reappointment every four years. The board’s confirmation and reappointment process is more a popularity party than a Supreme Court nominee review.

Other than the courts, there is no recourse to a commission decision. During the recent Candlestick Point-Hunters Point Shipyard debate members of the Board of Supervisors learned they actually has to seek the approval of these political appointees to modify an environmental impact report.

As a consequence, the appointment of commissioners is highly political. The power of the two commissions makes appointments prime objectives for influential sectors of the city’s political establishment. Those commissioners who disagree with the Mayor’s Office over important issues are not reappointed.

There’s no need to abolish the redevelopment authorities, which have unique legal benefits, particularly in project financing. But we can modify the way the city oversees the agencies.

In most counties in California the Board of Supervisors also serves as the Redevelopment Commission. While that could be a bit unnerving in a city as complicated as San Francisco, it is difficult to see how the process could become more politicized, less accountable, and less democratic.

Having the board oversee redevelopment would at least ensure that agency plans reflect the needs and interests of all 11 districts — and an elected body could be held accountable for those plans.

San Francisco deserves a dialogue about whether this is the best way to chart our course into a very foggy future. 

Saul Bloom is executive director of Arc Ecology.

Portrait of a San Francisco construction worker

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One of the many fascinating pieces of data to emerge in the discussion about Sup. John Avalos’ proposal to mandate local hiring is a recently published analysis of the characteristics of construction workers whose primary workplace is San Francisco.

In October, L. Luster & Associates published a labor market analysis, using data from EDD payrolls and the U.S. Census American Community Survey, that shows there were 14,629 construction workers employed in San Francisco in June 2010. And that five trades currently dominate this workforce and constitute more than 75 percent of the total numbers of construction workers employed in the city.

Carpenters are the biggest group (4,623 workers) followed by construction laborers (2,796 workers) painters (1,459 workers), electricians (1,119 workers) and plumbers, pipe fitters and steamfitters (1,023 workers).

But while this population shows racial diversity (whites and Latinos each make up about 40 percent of the workforce, followed by Asians and Pacific Islanders at 17 percent) African Americans and women each account for only 3 percent of this market. In other words, only 440 African Americans and 405 women were construction workers in June 2010, compared to 5,830 Latinos, 5673 whites, 2,528 Asians and Pacific Islanders.

So, how do these ethnic percentages compare with San Francisco’s overall distribution?
 “Latinos make up a considerably larger portion of workforce than they do the overall population (40 percent of construction workforce v. 13 percent of city’s population),” the Luster report states. “ All other major racial categories constitute a smaller portion of the construction workforce than they do of the total population: Whites (39 percent of construction workforce compared to 49 percent of city population overall) followed by Asian and Pacific Islanders (17 percent compared to 28 percent overall) and African Americans (3 percent compared to 6 percent overall.)

(That last statistic should be a shocker: What?! Only six percent of San Francisco’s current residents are African American?! But the city produced a report two years that detailed the “black out migration” –but provided little money or authority to help follow through on the report’s various recommendations).

Meanwhile, Luster’s report concludes that, “the main imbalance between the employed construction workforce and the San Francisco population lies with the gender distribution. Women comprise only 3 percent of the 14,629 construction workers in San Francisco, whereas they account for nearly half of the overall population.”

Next up in the Luster report was the question of residency. And according to its findings, only 39 percent of workers employed in San Francisco’s construction industry call the city and county of San Francisco their home.

San Mateo County is home to 18 percent of this workforce, Alameda County accounts for another 17 percent, Contra Costa County is home to 13 percent, Sonoma and Marin each are home to 8 percent, and Napa and Solano County each account for a further 5 percent.

These numbers are significant in a number of ways. For instance, 2, 636 workers commute in from San Mateo, 2,418 from Alameda, 1,929 from Contra Costa, 1,197 from Sonoma and Marin, and 773 workers from Napa and Solano, all of which adds up to wear and tear on roads, impacts on air quality, and increased levels of greenhouse gas generation (depending on whether these workers take public transit, car pool or drive the freeways solo, of course).

It also means that when communities oppose aspects of a local construction project—be it a proposed bridge over Yosemite Slough, or a proposed mega-hospital on Cathedral Hill—they are likely to encounter opposition from a workforce that increasingly lives outside San Francisco,  faces a 40 percent unemployment rate, and can be mobilized to show support for these projects, either through showing up physically at meetings or through union dues that can be used to wage political wars with far-reaching percussions for the ability of local residents to influence local land use and economic development decisions.

So, why do so many construction workers live outside San Francisco? The obvious reasons are their relatively low income levels and their related inability to afford housing in the city.
According to Luster’s report, “nearly 33 percent of these workers report earnings of less than $30,000 per year” (based on data that incorporates union and non-union workers, and part-time workers).

Another way of looking at this is to study Luster’s analysis of construction workers who currently live in San Francisco.

“From EDD payroll data and from historic employment relationships between San Francisco, San Mateo, and Marin counties, we estimate there were 7,855 construction workers residing in San Francisco and who were employed as of June 2010—roughly 1 percent of total residents in the city,” Luster reports.

The Luster report also notes that the same five trades make up an even higher proportion of the resident employed construction workforce than they did the total employed construction workforce in the city (86 percent v 75 percent). But now the top two places are reversed: Construction Laborers is the largest trade with 2,442 workers, followed by Carpenters (1,914 workers), Painters (1,122 workers), Electricians (814 workers) and Plumbers (484 workers).

The ethnic distribution of these resident workers is also diverse. Whites (34 percent,) Latinos (31 percent), Asians and Pacific Islanders (30 percent, which is considerably higher than for the overall workforce employed in San Francisco) and African Americans (5 percent).

But women, once again, make up only 3 percent of residents in construction employment.

The Luster report takes the analysis one step further by looking at age distribution. This criterion reveals that the white resident construction workforce is aging, as is the Asian resident construction workforce, though to a lesser extent.

“By contract, the Latino workforce is concentrated among the younger age groups, particularly among the 25-34 age group,” Luster notes. “Of note, 47 percent of the resident San Francisco construction workforce is over the age of 45. Moreover, 23 percent is already 55 years and older. Currently, the number of workers aged 55-64 is 1,544 and declines to 264 for workers aged 65 and older, dropping from 20 percent of the workforce to 3 percent. If construction workers continue to leave the sector in the same proportions by the time they reach 64, a sizeable number of new openings will be created.”

The report, which goes into detailed breakdowns of apprentices (each of the four largest ethnic groups have almost equal shares, and women have 10 percent), the construction trades (which has a greater participation of white workers) and journey people, also gets into workforce projections (the bulk of the jobs generated by the city’s Capital Plan will be generated within the first five years) local hire programs and policy issues. As such, it’s  a must-read for those following Avalos’ proposed local hire legislation, and you can view the full report by clicking here.

ABU to UCSF: adopt local hire plan or halt Mission Bay hospital construction

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Aboriginal Blacks United (ABU) President James Richards has asked UCSF Chancellor Susan Desmond-Hellmann to meet with the community before Nov. 15 about UCSF’s local hiring plan, or halt all work at its Mission Bay Hospital construction site.

Noting that ABU is still waiting for a call regarding a Nov. 2 letter that ABU hand delivered to the Chancellor’s office, requesting a meeting to discuss the lack of community jobs or even a community hiring policy at UCSF’s Mission Bay Hospital project, Richards is asking UCSF to “halt all work at the UCSF construction site until you sit down to sign a community hiring plan, one that guarantees local workers will perform half the work required to build the new Mission Bay Hospital.”

In his Nov. 2 letter to Desmond-Hellmann, Richards stated, “You are spending $1.7 billion on this construction right here in our backyard, but you and UCSF have no policy or plan in place to put San Francisco residents, especially those from neighboring committees such as Bayview-Hunters Point, to work on your project.”

‘Your staff’s excuse is that work has not yet started at the site and they are working on a plan,” Richards added. “This however is an untruth as there are people out there at the construction site as we speak and we have already seen your team’s haphazard attempts to hite a community worker only to fire them within a matter of days.”

“We represent men and women, black, brown, white and everything else, union workers from Bayview Hunters Point and the southeast sector, workers from our community, a community that no one gives a damn about,” Richards continued. “We believe that if the community doesn’t work, no one works and never again will we allow the lost opportunities before us pass us by as we struggle to survive and stay in the City.”

“Many hours have been wasted by many people in many meetings with various staff over the past year and a half, so now we come to meet with you,” Richards concluded.“We ask you to stop all work at the hospital immediately until you have a community hiring plan in place that has consensus approval from the community.”
 
Richard’s latest missive comes the same day that the Board’s land use and economic development committee is holding an informational hearing at 2 p.m. in Room 263 on San Francisco’s local hiring policy. And comes shortly after Barbara French, UCSF’s vice chancellor for university relations, told the Guardian that UCSF is working to evaluate hiring needs for phase of the project, talking to the unions, and intends to make its findings public in December.

“We have had a voluntary local hiring policy since 1993,” French told the Guardian, confirming that in the past 17 years, the university has reached a 12 percent local hire rate on average. “Sometimes it was 7 percent, sometimes it was 24 percent … Our [goal] is to reach a number that is beyond what we reached before but which is realistic.”

French also recently told community-based organizations that UCSF hadn’t signed a contract with the contractor at its Mission Bay hospital project, didn’t have the permits yet, and that the recent community celebrations didn’t mark the start of active construction at the site. French said general hiring at Mission Bay will begin in December. “We don’t get any city funds at this site, so our commitment is voluntary. But we feel very strongly that we have to reach out.”

To date, Sup. John Avalos, who has introduced legislation to impose phased-in fines on contractors that don’t achieve local hiring goals, has acknowledged that UC is not under San Francisco’s jurisdiction and can’t be compelled to do more local hiring.

“But we know that they are doing a critical amount of building and investing taxpayer dollars, and that this land use impacts the surrounding community,” Avalos told the Guardian. “So it makes sense that we have local hire legislation and access to serious end-use jobs at the hospital.”

Locals for hire

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sarah@sfbg.com

It’s no secret that San Francisco’s construction industry is going through hard times, a situation that translates into lost opportunities for working class San Franciscans. But that bad situation is being made worse by contractors on local projects hiring workers from outside the city.

Recent studies reveal that under the city’s First Source program, which requires contractors to make “good faith efforts” to reach the goal of hiring 50 percent of their workers from within the city, San Francisco has failed to meet its goals on publicly funded projects.

Sup. John Avalos has introduced legislation that seeks to address this shortfall by requiring contractors to meet the city’s hiring goals or face fines. But some union leaders whose members don’t live in San Francisco are grumbling that the proposal is not workable.

Local unemployed workers are expressing support for the Avalos legislation, as they step up efforts to get UC San Francisco to commit to local hiring plans at its $1.5 billon Mission Bay hospital construction site, which lies a Muni T-Third ride away from some of the city’s most economically distressed neighborhoods.

And now everyone is anxiously wondering where Mayor Gavin Newsom will land on the legislation and on UCSF’s hiring goals in what may be his last weeks as chief executive of San Francisco.

As of press time, Newsom was running neck-to-neck with Abel Maldonaldo in the lieutenant governor’s race, leaving voters uncertain whether Newsom will be mayor in January or second-in-command statewide — a promotion that would land him a seat on the UC Board of Regents but shift his primary allegiance from the City and County of San Francisco to the entire state of California.

When Avalos stood outside City Hall last month and announced his proposal to mandate local hiring on publicly-funded construction projects, he was joined by Sups. Sophie Maxwell and David Campos, Board President David Chiu, community advocates, construction contractors, neighborhood leaders, and union members.

“My legislation will ensure that San Franciscans have a guaranteed shot to work on the city’s public works projects and that the local dollars invested in public infrastructure will be recycled back into San Francisco’s economy and local communities,” Avalos said.

Avalos’ legislation came in the wake of two reports confirming that local construction workers were having a hard time getting work. A report that Chinese Affirmative Action and Brightline Defense released in August estimated that only 24 percent of workers on publicly funded sites are local residents.

And a report released by L. Luster and Associates in mid-October, at the behest of the Redevelopment Agency and Office of Economic and Workforce Development, found that only 20 percent of workers hired at 29 publicly funded construction projects in the past year were local residents.

Avalos’ legislation would mandate assessment of liquidated damages against contractors and subcontractors who fail to meet minimum local hiring requirements and establish monitoring, enforcement, and administrative procedures in support of this policy. It would phase in these requirements over three years, starting at 30 percent the first year.

Avalos noted that his legislation was developed through a series of meetings with city agencies, the Mayor’s Office, labor and building trade unions, the environmental community, neighborhood advocates, contractors, local hiring advocates, and unemployed workers. And he vowed to keep the roundtable approach.

Patrick Mulligan, financial secretary of Carpenters Local 22, told the Guardian that his union, whose members are specific to San Francisco, generally supports local hiring. “But there are some general concerns with the legislation,” said Mulligan, who has lived his whole life in San Francisco and got his first job through a local hiring program. “We have standing contractual agreements with contractors, so whatever legislation gets passed, it will have to be meshed with the existing situation. If these were boom times, people might see it differently. But it’s hard times at the union hall.”

Mulligan also lamented the lack of process for the community to vet whether UC has a local hiring plan at construction projects that impact their neighborhood. “But contractors want the best workforce they can get. And in lean times, they can afford to be more selective and don’t necessarily want to include training time on the job,” he said. “But we feel that it’s inappropriate for contractors to bring their entire crew from outside of town.”

Michael Theriault, secretary-treasurer of the San Francisco Building and Construction Trades Council, told the Guardian that Avalos’ legislation was unworkable because construction workers cannot afford housing in San Francisco and too few qualified workers live in the city.

“We take workers from San Francisco into our apprenticeship program constantly, but they get to a certain point in their careers and find that the city builds well on the low-end and the high-end, but doesn’t build workforce housing. So they end up in Antioch, Vallejo, Fairfield, and Modesto, and commute back in,” Theriault said. “That problem has not been addressed by the city, and it’s at the root of why local hiring programs aren’t working.”

Newsom spokesperson Tony Winnicker said the mayor “supports stronger local hire requirements” even as he expressed concerns with Avalos’ proposal. “We’ll continue to work with the supervisors, the building trade unions and the community on legislation that achieves both realistic and legally enforceable local job guarantees for city projects,” he said.

Winnicker noted that the city already supports local hiring through CityBuild and the San Francisco Public Utilities Commission. “But we believe we can do better,” he added.

Avalos, whose legislation is scheduled for a Nov. 8 hearing of the board’s Land Use and Economic Development Committee, said he sees his proposal as a starting point. “We’ll see where it ends up,” Avalos told the Guardian. “We could pass legislation that wants 50 percent local hiring next year, and it would probably get vetoed and it wouldn’t be realistic. So we have to phase it in and make sure we are creating a system that is going to push the trades to be more inclusive of local residents.”

Meanwhile, unemployed workers — some in unions, others not — continue to protest the lack of a local hire plan at UCSF’s $1.5 billion Mission Bay hospital project, which is funded through debt financing, philanthropic gifts, and university reserves.

“We want to make sure folks get trained and everything that’s necessary, so there is no dispute,” Aboriginal Blacks United member Alex Prince said at an Oct. 27 protest at the Mission Bay site. The protest came one month after Newsom wrote to UCSF Chancellor Susan Desmond-Hellmann noting that the hospital was breaking ground “just as continuing high unemployment rates were devastating the city’s most distressed communities,including neighborhoods impacted by the Mission Bay expansion.”

“There are estimates that up to 40 percent of the members of our local construction trade unions are currently out-of-work,” Newsom wrote. “It would be helpful if you could share the commitments that UCSF has made on the issue of local hiring, particularly around employing residents of San Francisco’s most distressed communities in southeast San Francisco, and the results of those efforts to date.” Winnicker said UCSF has not yet responded.

Barbara French, UCSF’s vice chancellor for university relations, told the Guardian that UCSF is working to evaluate hiring needs for phase of the project, talking to the unions, and intends to make its findings public in December.

“We have had a voluntary local hiring policy since 1993,” French said, confirming that in the past 17 years, the university has reached a 12 percent local hire rate on average. “Sometimes it was 7 percent, sometimes it was 24 percent … Our [goal] is to reach a number that is beyond what we reached before but which is realistic.”

Recently French told community-based organizations that UCSF hadn’t signed a contract with the contractor at its Mission Bay hospital project, didn’t have the permits yet, and that the recent community celebrations didn’t mark the start of active construction at the site.

French said general hiring at Mission Bay will begin in December. “We don’t get any city funds at this site, so our commitment is voluntary. But we feel very strongly that we have to reach out,” she said.

Avalos acknowledged that UC is not under San Francisco’s jurisdiction and can’t be compelled to do more local hiring. “But we know that they are doing a critical amount of building and investing taxpayer dollars, and that this land use impacts the surrounding community. So it makes sense that we have local hire legislation and access to serious end-use jobs at the hospital.”