Mayor

Dufty to run for mayor?

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Stephen Seewer, the LGBT chair of the Commonwealth Club, called to tip me off to a big story that the media missed: Sup. Bevan Dufty announced on Monday at the Commonwealth Club that he’s running for mayor of San Francisco! Political watchers have long known this was a possibility, but how did we miss such an important announcement?
So I spoke with Dufty, who told me that he is indeed thinking about it, but far from making it official: “I don’t feel like it was a formal announcement.”
Dufty said Seewer caught him off-guard at the event with a question about whether he plans to run for mayor. Dufty says he answered by talking about the ambitious agenda he intends to pursue over the next two years and, as he tells it to us, he then told the audience, “Hopefully, I’ll look like a strong candidate for mayor.”
OK, maybe that’s not quite an official declaration, but it’s no secret that Dufty has his eye on the job. Others who seems to be setting themselves up for a run and have made similar statements of interest include Sup. Ross Mirkarimi, City Attorney Dennis Herrera, Assessor-Recorder Phil Ting, Sup. Aaron Peskin, and District Attorney Kamala Harris (provided she doesn’t get tapped by President Barack Obama to be attorney general). And I wouldn’t be surprised if Senator Carole Migden takes a step back after losing reelection, licks her wounds, and returns to the fray as a mayoral candidate.

A vote for public power in November

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EDITORIAL Working with environmentalist cover, Mayor Gavin Newsom and Pacific Gas and Electric Co. have moved aggressively to derail a move that would have given the city control over some local power generation. Instead, the mayor is now pushing to keep Mirant Corp. running the one electricity plant that still operates within city limits.

The politics of the deal are complicated, but the driving force is clear: PG&E didn’t want the city moving even a small step toward public power, and as usual, the big utility is getting its way.

The power plant deal proves exactly why Supervisors Ross Mirkarimi and Aaron Peskin should move forward with a November charter amendment for public power.

As Amanda Witherell reports, the San Francisco Public Utilities Commission has been trying for years now to win approval for three city-owned combustion turbines that would generate electric power at a plant at the foot of Potrero Hill. The idea: the turbines, also known as "peakers," would generate enough power during peak-use periods to convince the state to shut down the dirtier Mirant Plant.

Many environmentalists opposed the proposal, saying that the city shouldn’t be building any new fossil-fuel plants. That’s a legitimate argument. But California’s Independent System Operator (Cal-ISO), the agency that controls the electric grid, insisted that renewable energy alone wouldn’t provide enough reliable power for San Francisco, and said the only way to shut down Mirant was to put in the peakers.

PG&E has been trying for months to derail the peakers — not, of course, out of any concern for the environment, but because the city would own the power plants. At first Newsom stuck by his PUC — but after seven PG&E lobbyists came into his office and gave him the facts of life (see "PG&E offers Newsom a blank check" at sfbg.com), he backed down. And now, after meeting with the CEOs of PG&E and Mirant, Newsom is pushing the worst possible alternative: he wants to retrofit the Mirant plant and let the private company operate its own peakers.

Same fossil fuel plants in the Bayview. Same type of air pollution. And the facility would be owned by a private company.

The supervisors need to reject this proposal with extreme prejudice — and the environmentalists who fought the city peakers ought to be just as loud in their opposition to Mirant’s retrofit.

The good news is that this ridiculous Newsom–PG&E deal ought to put the focus at City Hall back on public power, because that’s the only way to create a really green power profile in San Francisco.

Matthew Wald, who has coved energy policy for decades, wrote an interesting piece in the New York Times June 8 discussing why no private company wants to invest money in technology that would reduce carbon emissions from power plants. "Cutting carbon dioxide emissions is a fine idea, and a lot of companies would be proud to do it," Wald wrote. "But they would prefer to be second, if not third or fourth."

That’s because no private utility wants to take the risks and try something new that another company could then copy. In economic terms, carbon reduction is a public good — it’s something that benefits everyone, and nobody has the exclusive right to make money off of it. Private companies have been notoriously bad at investing in public goods.

But that’s not how public power agencies work. A San Francisco power agency would have every motivation to develop and use technology that saves consumers money or protects the environment. There’s no issue of profits to protect; in fact, one of the mandates of a city agency should be reducing carbon emissions and promoting renewable energy.

We have always been sympathetic to the concerns that the city-owned peakers would emit greenhouse gases. But if the city owned the plants, the city could shut them down anytime, whenever enough renewables were available. Mirant won’t shut down anything that is bringing in cash.

Mirkarimi and Peskin are working on the details of a public power measure, but the outlines ought to be clear: it should mandate that the SFPUC create and implement a plan to put the city in the retail power business, in compliance with the letter and spirit of the Raker Act — and get rid of PG&E and Mirant. The supervisors should put that on the November ballot.

$2.8 million for Newsom’s Community Justice Center? Hell, no.

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“There are so many things on the chopping block that this seems out of whack.”

So said Sup. Tom Ammiano at yesterday’s Board hearing on the Mayor’s Community Justice Center, sounding diplomatic compared to some of the pointier comments that his fellow supervisors made, as the Board voted 7-3 to send Newsom’s $2.8 million CJC back to committee.

But then again, all the supervisors sounded outspoken compared to Sup. Geraldo Sandoval, who recused himselffrom the discussion , on the grounds that he is running for judge. (Sandoval’s absence felt even more ironic as the hearing progressed and a couple of sitting judges spoke in favor of the center.)

Now, everyone knows that wannabe governor Mayor Gavin Newsom has been itching to add the CJC t to his political resume ever since visiting a similar one in New York.

The public power initiative: let’s roll

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By Bruce B. Brugmann

Coming home after almost two weeks in Sweden with the annual World Association of Newspapers (WAN) assembly and study tour, I was struck once again how nothing seems to change in San Francisco when it comes to the PG&E/Raker Act scandal.

PG&E was still firmly in control of the city’s energy policy in the mayor’s office. Mayor Gavin “The Green Knight” Newsom had capitulated spectacularly to PG&E and had reversed his policy of supporting a plan by his PUC that would have given the city control over some local power generation at the Mirant power plant (the peaker proposal.) The mayor had met secretly with PG&E executives and stiffed representatives from the Potrero Hill neighborhood and the environmental, environmental justice, public power, and community choice aggregation (CCA) movements.

The Hearst-owned Chronicle continued its long corporate tradition of blacking out the real story of the accelerating PG&E/Raker Act scandal. The utility was beautifully executing its divide and conquer strategy it has honed ever since the days that John Muir and the Sierra Club fought in vain to stop the damming of Hetch Hetchy Valley in Yosemite National Park for the city’s public water and power supply. (In that battle at that time, the Guardian would have stood with Muir.)

Amanda Witherell laid out the latest sorry episode in her story in Wednesday’s Guardian. Her lead: “Green City Mayor Gavin Newsom finally outlined what he calls a ‘more promising way forward than the current proposal’ of building two publicly owned power plants in San Francisco. The way forward: retrofit three existing diesel turbines at the Mirant Potrero Power Plant, while simultaneously shutting down Mirant’s most polluting smokestack, Unit 2.”

Our editorial laid out the political context: “The politics of the deal are complicated, but the driving force is clear: PG&E didn’t want the city moving even a small step toward public power, and as usual, the big utility is getting its way…PG&E has been trying for months to derail the peakers–not, of course, out of any concern for the environment, but because the city would own the power plants. At first Newsom stuck by his SPUC but when seven PG&E lobbyists came into his office and gave him the facts of life (see ‘PG&E offers Newsom a blank check‘), he backed down.

“And now, after meeting with the CEOs of PG&E and Mirant, Newsom is pushing the worst possible alternative: he wants to retrofit the Mirant plant and let the private company operate its own peakers. Same fossil fuel plants in the Bayview. Same type of air pollution. And the facility would be owned by a private company.”

Repeating for emphasis: When PG&E spits, City Hall swims. When PG&E spits, the mayor swims.

And so PG&E and Newsom have set the stage for the next phase in this great battle to kick PG&E out of City Hall, enforce the federal Raker Act mandating public power for San Francisco, and bring our own cheap, clean Hetch Hetchy public power to the residents and businesses of San Francisco.

The next stage is the emerging new public power initiative that Supervisors Ross Mirkarimi and Aaron Peskin are working on, with a wide swath of neighborhood and public power forces, aimed for the November ballot as a charter amendment.

This would be the third go at taking on PG&E head-on on the November ballot. This time it has a good chance of succeeding since PG&E and Newsom have gone out of their way to make the case for public power in 96 point Tempo Bold for all to see and savor. The measure will also be helped by massive turnout with Obama, seven supervisorial races, a clutch of solid progressive measures, and a smart, aggressive Obama like grassroots organizing campaign.

Let’s roll. B3, who wonders when he will no longer see the fumes from the Mirant plant from his office window at 135 Mississippi Street at the bottom of Potrero Hill

Click here to read this week’s article, Newsom’s power play.

Click here for this week’s editorial, A vote for public power in November.

Mo’ Jello

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› kimberly@sfbg.com

SONIC REDUCER What do you give a 50-year-old punk icon who has everything? A silver-studded dog collar? A reason to believe — or rebel? Peace of mind?

"Boy, I can’t think of much," Jello Biafra, né Eric Boucher, says with a chuckle at the question of what to gift him for his 50th birthday June 17. "I’m already such a pack rat, the last thing I need is more stuff. The main vice is vinyl, but I archive a lot of stuff. I’m a librarian’s kid."

Instead, the ex–Dead Kennedys vocalist, in characteristically against-the-grain fashion, will gift celebrants at his birthday-bash-to-end-all-bashes, the two-day "Biafra Five-O" at Great American Music Hall, with turns alongside the Melvins and a newly assembled band, the Axis of Merry Evildoers, which includes Victims Family’s Ralph Spight on guitar, Faith No More’s Billy Gould on bass, and Sharkbait’s Jon Weiss on drums. Oh yeah, and each punk-rock fire-/party-starter will receive a poster, or if it arrives in time, a 7-inch of Biafra and members of Zen Guerilla covering Rev. Horton Heat’s "Speed Demon" and Frankie Laine’s "Jezebel."

So what gives with the very public celebration of three decades of punky monkey-wrenching? "I saw the Stooges on Iggy’s 60th last year, and that was a great show," Biafra tells me while snacking in his San Francisco digs. "I got carried away with the moment and promised myself, if he’s that good at 60, I better be a tenth as good at 50 and get something together."

Expect Biafra’s new group to be part of a continuum: one that began with Dead Kennedys and has manifested in collaborations with the Melvins, DOA, No Means No, Al Jourgensen, Mojo Nixon, and others. "The hope is you’re still going to get a pretty sharp set of teeth," he promises. And speaking of DK, the man who would be SF’s mayor ("It was done as a prank") — and who was nominated as the Green Party’s 2000 presidential bid, right on the coattails of Ralph Nader ("It kind of got dumped in my lap") — is also recognizing the 30th anniversary of the Dead Kennedys, which played its first show in July 1978 opening for the Offs, DV-8, and Negative Trend, despite an extremely acrimonious lawsuit between the vocalist and his bandmates that led a jury to award control of the catalog to the rest of the group.

Despite intimations of a reunion on the part of the remaining Dead Kennedys, the bitterness of the conflict still rankles, with Biafra confessing with a wry chuckle, "I’ve had battles with suicidal depression — especially after that ugly Dead Kennedys lawsuit." Further, he says, "I really resent all the times they played these so-called reunion shows advertised as reunions, and there’s my picture in the ad. I think we have a new genre of punk, and it’s called fraudcore!"

Nonetheless, he hasn’t completely ruled out a reconciliation: "Sure, if those guys were ever willing to undo every last bit of damage they’ve done, I’d consider going back on stage with them. But so far they’ve been way too greedy and way too cowardly to even consider it."

So leave it to the Melvins to convince Biafra to tackle a few DK songs in honor of his birthday. The once SF-based band — in a near-original lineup including Mike Dillard — also will attack early hardcore tunes culled from a 1984 demo sent to Biafra. It turns out those pack-rat tendencies, coupled with Biafra’s abiding love of music, led him to hold onto that ancient tape, which the Melvins lost long ago. "It’s a good thing I saved these things," Biafra says. "They’d forgotten those songs existed." *

BIAFRA FIVE-O

With Jello Biafra and the Melvins, Biafra and the Axis of Merry Evildoers, the Melvins, and (Mon/16) Drunk Injuns and Los Olvidados, and (Tues/17) Triclops! and Akimbo

Mon/16–Tues/17, 8 p.m., $22-$40

Great American Music Hall

859 O’Farrell, SF

www.gamh.com

COUNTRY TEASIN’ WITH NEIL HAMBURGER

Moanin’ and groanin’ has never been so hammily hilarious. Comedian Neil Hamburger has a brand new hat — namely, a sorry-ass Stetson — to go along with his new bag: the recently released Neil Hamburger Sings Country Winners (Drag City). Teaming with longtime Bay Area–ite Dave Gleason on guitar, Amoeba Music co-honcho Joe Goldmark on pedal steel, and Todd Rundgren cohort Prairie Prince on drums, Hamburger, a.k.a. onetime Bay stalwart Gregg Turkington, plans to stir misery-loving odes to classic backwoods grimness ("Please Ask That Clown to Stop Crying") into his archetypal miasma of whining/joke-telling during his present tour. So why turn to C&W, which currently seems to consist of "songs about shopping," rather than tears, beer, and chicken dinners? "A lot of rock ‘n’ roll is just people screaming," groans Hamburger from Los Angeles, far from the SF storage locker he claims to have once dwelt in. "You hear enough of that in San Francisco on the streets. With those big, bushy beards and screaming — what’s the difference between a contingent of homeless guys carrying signs and the Doobie Brothers?"

June 11, 9 p.m., $13–<\d>$15. Great American Music Hall, 859 O’Farrell, SF. (415) 885-0750, www.gamh.com

IT’S TIME FOR TIMES NEW VIKING

They may be pegged as part of the so-called shitgaze underground — thanks to their pals in Psychedelic Horseshit who coined the term — but Columbus, Ohio, trio Times New Viking are as grounded as a trio of Midwestern ex-art-schoolers can be. Keyboardist Beth Murphy met guitarist Jared Phillips and drummer Adam Elliott while attending Columbus College of Art and Design, and the three found that their education came in handy when it came to playing together nicely — and noisily, particularly on their new Matador album, Rip It Off. "When you’re in art school you’re always forced to critique your work and think about everything you’re doing," Murphy, 26, explains from her hometown. "That got, like, really annoying to have to validate every mark you made. But now I think it’s kind of like ingrained in us, so we can’t help but think about every aspect of what we do." Their creative approach to music-making? "One of the first rules we set up was 300 percent creative control," she says. "We all have 100 percent say in everything, and we don’t ever tell each other what to do."

With Hank IV, Psychedelic Horseshit, and Fabulous Diamonds. Fri/13, 9 p.m., $12. Bottom of the Hill, 1233 17th St., SF. www.bottomofthehill.com

Newsom’s power play

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› amanda@sfbg.com

GREEN CITY Mayor Gavin Newsom finally outlined what he calls a "more promising way forward than the current proposal" of building two publicly owned power plants in San Francisco.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while simultaneously shutting down Mirant’s most polluting smokestack, Unit 3.

Newsom wrote a letter to the Board of Supervisors just before a June 3 hearing on the power plants, describing a May 23 meeting that he convened with SFPUC General Manager Ed Harrington, City Attorney Dennis Herrera, California Independent System Operator President Yakout Mansour, California Public Utilities Commission Chair Mike Peevey, Mirant CEO Ed Muller, and Pacific Gas & Electric Co. CEO Bill Morrow.

"In the meeting, we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative," Newsom wrote. The board then voted to shelve the power plant plan until July 15 so the retrofit option can be vetted.

Most significant, Newsom’s meeting with top dogs at energy companies, who stand to lose a lot from San Francisco owning its own power source — and the resulting correspondence elicited a new response from Cal-ISO, the state’s power grid operator, about exactly how much electricity generation San Francisco needs.

For the first time, Cal-ISO said it will allow Mirant’s Unit 3 to close as early as 2010, when the 400-MW Transbay Cable comes online, saying that the city no longer needs to install a combustion turbine peaker plant at the airport.

Sup. Sophie Maxwell expressed frustration that the questions she, her staff, and other stakeholders have been asking for the past several years are suddenly getting different answers. "I think we’re seeing a big movement by Cal-ISO. This is huge. Before, we asked all these questions, [but] they weren’t saying what they’re saying now," she told the Guardian after the hearing.

When asked why she thought this was happening now, she simply pointed to PG&E. "Who stands to benefit from us not generating our own power? Who sent out all that stuff?" she asked, referring to the flyers depicting filthy power plants that PG&E has been mailing to residents in an effort to drum up public sentiment against the city’s plan to build peakers. "Have they been concerned about what’s clean, about our people?"

Some environmental activists are hailing the change as a triumph. "David has just moved Goliath, but we need to keep pushing," said Josh Arce of Brightline Defense, which sued to stop the city’s plan to build the two power plants. He said his organization’s goal is ultimately to have no fossil fuel plants in the city. But when asked about the retrofit alternative, he said, "We don’t support it; we don’t not support it."

Cal-ISO has insisted that San Francisco needs 150 MW of electricity to stave off blackouts. This grid reliability is currently provided by Mirant-Potrero, but the plant’s Unit 3 is the greatest stationary source of pollution in the city. Bayview residents, who have borne a disproportionate share of the city’s industrial pollution, have been agitating for more than seven years to close the plant. Much of the leadership has come from Maxwell, who represents the district and has championed the plan to replace the older Mirant units with four new ones owned and operated by the city.

That vision was integrated into San Francisco’s 2004 Energy Action Plan, which Cal-ISO has used as a guiding document for the city’s energy future. The plan outlines a way to close Mirant by installing four CTs and 200 MW of replacement power. "Cal-ISO has consistently said in writing, in verbal instructions, and at meetings, that the CTs are the only specific project that was sufficient to remove the RMR [reliability must-run contract] from Mirant," said SFPUC spokesperson Tony Winnicker.

As San Francisco’s energy plans have evolved over recent years, SFPUC staff have been instructed at numerous public hearings in front of the Board of Supervisors to ask Cal-ISO if all four CTs are still necessary. Letters obtained by the Guardian show Cal-ISO has never said the airport CT isn’t necessary until now. When asked why, Cal-ISO spokesperson Stephanie McCorkle said, "The questions are not the same. That’s why the answers are different."

When pushed for more details on what’s different, she said, "We feel the introduction of the Mirant retrofit fundamentally changes our approach to the fourth peaker. I think it’s the megawatts. It’s basically the retrofit that changes the picture."

Mirant’s peakers currently put out 156 MW, an amount that may be reduced by retrofitting. The city’s three peakers would produce 150 MW. Winnicker couldn’t explain why the story is changing, telling us, "We’re really deferring to the leadership of the mayor and the board because they’ve been able to get a really different view from Cal-ISO than we’ve been able to get."

"We’ve always said we’re open to alternatives," McCorkle said. "We can only evaluate what’s presented to us and the Mirant retrofit was only presented in mid-May." Opponents of the peaker plan say the new position indicates SFPUC officials haven’t been pushing Cal-ISO hard enough or asking the right questions.

"The city hasn’t done its due diligence insisting on different configurations of the peakers," Sup. Ross Mirkarimi told us. "What we’re learning now we could have learned two years ago." He went on to add, "With the abundant paper trail, one can only surmise or conclude there may have been a presupposed bias on the part of the PUC to the answers expected from Cal-ISO."

The SFPUC has been instructed by the mayor’s office to determine if Mirant retrofit diesels would be as clean as the city’s CTs. Until that can be proved, some are withholding support.

"I haven’t seen any information that a Mirant retrofit is as clean as the peakers," City Attorney Dennis Herrera told the Guardian. "From my perspective, I want the most environmentally clean solution."

To that end, some would like to see a formal presentation to Cal-ISO of a "transmission-only" alternative, which would outline a number of line upgrades and efficiencies that would obviate the need for any in-city power plants. Sup. Maxwell introduced a resolution urging the SFPUC to put such a proposal before Cal-ISO and to enact strict criteria for any alternative to the city’s CTs.

"We need to remember that Mirant was a bad actor. Mirant is not to be trusted," Maxwell said. "We sued them and we won our suit," she added, citing litigation brought by the city against the private company for operating the power plants in excess of its permitted hours and for market manipulation during the 2001-02 energy crisis.

Maxwell’s legislation, cosigned by six other supervisors, lays those concerns out and cautions, "In view of this history, the city should be cautious and vigilant in taking any steps that expand the operation of Mirant’s facilities in San Francisco."

The legislation also reminds policymakers that San Francisco’s Electricity Resource Plan identifies eight specific goals — one of which is to "increase local control over energy resources." It goes on to say, "City ownership of electric generating supplies can reduce the risk of market power abuses and enable the city to mandate the use of cleaner fuels when feasible or to close down any such generation when it is no longer needed."

Maxwell’s resolution also outlines a series of conditions that any alternative to the city’s peakers would have to meet. The alternative would have to be as clean or cleaner than the city peakers, have the same comprehensive community benefits package that was attached to the city’s peaker plan, have no impact on the bay’s water, and only be run for reliability needs.

The City Attorney’s Office said these criteria are not set in stone — it’s a resolution and therefore requires some level of enforcement or action. Mirkarimi, who signed on to the resolution, is still uncomfortable with it as it stands, saying it should include discussion of the city’s new community choice aggregation (CCA) plan for creating renewable public power projects.

Some environmentalists cautioned that the transmission-only approach still leaves too much control in the hands of others. "We shouldn’t let PG&E be the ones to solve this problem," said Eric Brooks, a Green Party rep and founder of Community Choice Energy Alliance. He’s urging city officials to put all the city’s energy intentions — from the CCA plan for 51 percent renewables by 2017 to an exploration of city-funded transmission upgrades — into a presentation for Cal-ISO.

Brooks noted a conspicuous absence from the May 23 meeting with the mayor: "CCA and environmentalists weren’t at the table, as usual."

The house that Hiero built

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› a&eletters@sfbg.com

**Update: The Paid Dues Independent Hip Hop Festival has been cancelled. See below for more details.

I’m not accustomed to receiving rappers at my home at 8 a.m. — an hour most rappers have only heard of — but I made an exception for Tajai Massey, member of Souls of Mischief and Hieroglyphics. A self-confessed early riser and the first MC to ever accept my offer of a cup of coffee, Massey is a busy man.

While gearing up for the Hieroglyphics’ Freshly Dipped tour, which kicks off June 14 with the Paid Dues Festival at the Berkeley Community Theatre, the lanky 33-year-old head of the group’s Hiero Imperium label was about to head to Seattle for a spot date with his new rock outfit, Crudo, with Dan the Automator and ex-Faith No More frontman Mike Patton. Meanwhile Massey’s been juggling two upcoming projects, one of which he hopes to release in the fall: a new, self-produced Hieroglyphics disc and the fourth studio release by Souls of Mischief, produced by legend Prince Paul. In the interim, he’s prepping fellow Souls-member Opio’s second solo album, Vulture’s Wisdom, Vol. 1 (Hiero Imperium), for July.

Yet none of this accounts for our meeting. Our conversation instead focused on Massey’s other job: overseeing his own imprint within Hiero, Clear Label. Though begun in 1999 to release his SupremeEx trip-hop collaboration with Hiero Web designer StinkE, Projecto: 2501, Clear Label really established itself circa 2005 with two artists of a very different sort: Shake Da Mayor of "Stunna Shades" fame and Beeda Weeda, whose 2006 full-length, Turfology 101, yielded the hit "Turf’s Up."

While Shake has since departed, Beeda has cemented his Clear Label connection, moving his whole camp, Pushin’ the Beat (PTB), into Hiero’s two-story East Oakland compound, which was purchased by the veteran collective in 2004. Known within Hiero as "the Building," though designated "Hiero" by everyone else, the space houses nine rooms, five studios, and a small warehouse of T-shirts, CDs, and other goods. Soon Beeda’s friend and collaborator, J-Stalin — himself signed to one of the Bay’s biggest rap independent labels, SMC — began bringing his own Livewire crew by, including Shady Nate, Clear Label’s next signee.

Bulging with the usual conglomeration of computers, mixing boards, rough-hewn vocal booths, and a fine layer of empty 1800 bottles and Swisher Sweet ashes, PTB’s two ground floor studios contrast with the Building’s general tidiness, like a kids’ playspace in an otherwise adult house. Yet they also exhibit an atmosphere of dedication. Dropping by on any given day, among the crowd of just-past-high-school aspiring MCs, you might see Beeda and Stalin studiously hunched over spiral notebooks with Mistah FAB, working on their NEW (North-East-West) Oakland project.

And FAB isn’t the only high profile visitor: everyone from San Quinn to the Federation comes through. Too $hort stops by regularly, and even national acts like Dem Franchize Boyz and Cease of Junior Mafia have found their way here. Given that Beeda and Stalin are two of the hottest young Oakland rappers and attract such elite company, Hiero suddenly finds itself at the center of what might be called the Bay’s post-hyphy moment, one embodied in a tougher, less dance-oriented sound, combined with classic Bay slap and tempered by R&B overtones.

"I wasn’t after a bunch of streeter-than-street dudes," Massey said, laughing. "But I sure ended up with some."

THE OTHER BAY BRIDGE


Intentional or not, the current emphasis on street rappers is consistent with Clear Label’s overall mission.

"Our fans aren’t that forgiving. Even bringing up other acts like Knobody or Musab, who are on the same tip as Hiero — our fans want Hiero music," Massey said, in reference to Hiero Imperium artists and the group’s demanding backpacker following. "So we’ll give it to them, and let Clear Label be the outlet for other acts, especially my relationship with PTB/Livewire."

HieroSlideShow.gif
Oakland hip-hop converges on the Hiero HQ. Photos by Alexander Warnow

It helps, Massey continued, that J-Moe, the CEO of PTB, has a vision. "That dude is a genius," the Clear Label honcho said. "He’s called the Machine, because he’s always working." With an uncanny ability to spot new talent — like 17-year-old phenom Yung Moses, who J-Moe dubs "the future face of the franchise" — the Machine is a crucial part of the evolution of Clear Label.

But Clear isn’t just a "street label," Massey continued. He’s working with a "rock ‘n’ roll" dude, Chris Maarsol, as well as League 510, which he describes as working in "really a new genre." Hailing from East Oakland, 510 blends lyrical, positive rap and house-influenced grooves in a mix the group calls "Town Techno." "It’s like bridging the hyphy movement and the alternative crowd," Massey said. "I know they’ll do well in cities like Miami, Chicago — where they have a house scene — and in Europe."

Interestingly, according to Massey, European fans have been more receptive to Hiero’s new connections than the domestic audience. "It’s crazy," he said with a laugh. Among other acts, Massey also scooped up Baby Jaymes, digitally re-releasing his 2005 debut, The Baby Jaymes Record (Ghetto Retro), and dropping a new single, "The Bizness," including Turf Talk. "Baby Jaymes is huge in Germany and Belgium, even Australia," Massey added. "I’m in Amsterdam and people are like, ‘Where’s Beeda Weeda?’ Out there people understand the association, whereas in Oakland, they have no idea. It’s odd how Europeans look deeper into it, and it’s a whole different language."

‘WE ALL FROM OAKLAND’


Perhaps it isn’t so odd. The language barrier may even facilitate European acceptance, because despite the differences between Hiero’s conscious lyricism and PTB/Livewire’s grimy topics, the musical bond is already there.

"There are more similarities than differences," Opio told me. "We all from Oakland. Hiero looked to Too $hort and E-40 when we began our independent hustle."

Though he admittedly can’t keep track of the crews’ ever-expanding rosters, former Hiero Imperium head Domino — who, after helming the organization from its mid-’90s inception, stepped down in 2006 to concentrate on production — also welcomes the influx of young talent. "As you get older," he said, "there’s not the same excitement as an artist. You can’t totally get it back, but you can feed off their new energy."

Beyond their shared approval, members of Hiero have already begun to collaborate with PTB/Livewire. Souls member A-Plus, for example, produced the dancehall-inspired opener, "Da Town," on Beeda’s new all-original mixtape, Talk Shit Swallow Spit possibly the hottest Bay Area disc this year — while Casual appears on Beeda’s forthcoming album, tentatively titled Turf Radio. PTB, moreover, has added a more conscious lyricist, Tre Styles, upsetting what Opio describes as "the boxes the corporate market puts people in."

Massey agrees. "Look at Beeda or Shady. Their mentality isn’t ‘go dumb, go stupid,’<0x2009>" he noted. "Their lyrics are militant, and these guys are growing." Massey was also quick to point out the multidimensional side of J-Stalin, whose crime-ridden raps are infused with melancholy ambivalence about street life. "Stalin could be big like 2Pac," he opined. "He’s not trying to look hard. He’s a little dude, but he’s got all this heart and emotion."

Stalin himself is more modest, albeit slightly, at least concerning his upcoming SMC disc, The Pre-Nuptial Agreement. "Pre-Nup is going to be one of the greatest Bay Area albums ever," he said. "I ain’t saying I’m the best rapper. I’m saying I put together a great album." Judging by the songs he played for me that day — including the radio-ready "Get Me Off" with E-40 — he’s right. SMC’s Will Bronson is sufficiently confident in Stalin — and Beeda — to partner with Thizz Entertainment this summer to bring out the former’s Gas Nation as well as the latter’s The Thizzness, both pre-albums designed to tide fans over before their full-lengths in the fall.

"Stalin and Beeda are the only two new artists really buzzin’," Bronson said. "I couldn’t go a week without hearing about them."

As a result, Stalin and SMC plan to collaborate on future Livewire projects, including a group disc showcasing up-and-comers Shady and J Jonah, longtime members such as ROB, Lil Blood, and Ronald Mack, and newer recruits like Philthy Rich and 17-year-old Lil Ruger, whose wild, almost Keak-esque flow foretells fame.

The connection to SMC and Vallejo’s Thizz, moreover, suggests a serious new coalition which, given the waning of hyphy, threatens to become the next major force in Bay Area rap. "We’re just trying to keep the unity," Stalin concluded. "Because we’re all from different places, we wouldn’t be able to do this in the street."

UNITED FRONT


Such unity, always in short supply in the Bay, is one of the most intriguing aspects of the Hiero/PTB/Livewire situation. "We’ve got a movement, but it’s not a movement," said Jamon Dru, who, along with DJ Fresh, Tower, and others, formed the Whole Shabang, an autonomous production squad linked to both PTB and Livewire. "We’re trying to make music everyone will feel, not just the Bay. That’s put a hurt on us because we do have a ‘fuck everyone else’ attitude, like, ‘I don’t care if anyone else likes this shit.’ But we got families, friends, people in jail we gotta feed. We can’t be half-steppin’ like that."

Like Traxamillion, and unlike many local producers, Dru is candid about the influence of the radio on his sound. "It’s a little Southern-influenced," he said, "a little East Coast with Fresh chopping up samples, but with the 808s and a West Coast bassline. Every beat we make with samples, we gotta put an 808 knock in it." While it’s difficult to generalize, given the work of so many producers, Dru’s statement is a good sketch of the PTB/Livewire sound: it looks to the Bay’s older mob music through the modern lens of hyphy, even as it sheds the more gimmicky excesses of the latter.

Beginning his career under Beeda Weeda’s wing, Dru is already a mogul of his own, currently developing 19-year-old Gully, whose work can sampled on his mixtape Hustla Movement. Like Yung Moses, the saltier-voiced, vowel-stretching Gully is considered one of the most promising rappers in the camp, and the two are already slated for a collaboration. A song like Gully’s "Bush," imagining the life of a ghetto youth who suddenly finds himself a soldier in Iraq, even suggests that Hiero’s more politically progressive themes are creeping into the youngster’s work.

At present, however, Beeda remains the "face of the franchise" for PTB and Clear Label.

"Beeda’s got the biggest buzz," Massey said, "so it makes sense to lead off with him. I just want to set him up properly." Proper set-up in the Bay generally involves a "pre-album," and Beeda’s got three. Besides the all-original Talk Shit mixtape and The Thizzness, Beeda’s collaboration with DJ Fresh, Base Rock Baby an ’80s-themed disc referring to Beeda’s generation as the first to be born after the crack epidemic began — appears in July.

"We’re going to push that online," Massey said, though there will be hard copies for sale. "Right now, if Beeda’s record sales matched his popularity, I’d be ready to retire." Still, he confessed, "everyone has Turfology, but only a few people bought it," citing the difficulties of selling albums in the era of burnt CDs and file-sharing, not to mention ongoing recession under the George W. Bush administration.

Another problem was the lag between Beeda’s video for "Turf’s Up" becoming popular on YouTube and the actual release of Turfology, confusing consumers who assumed the CD was already out. "This time we got the timing down," Beeda said. "We’ll build that buzz first, and everything will be ready to go." Nonetheless, as falling numbers of mainstream releases attest, selling albums has grown increasingly difficult regardless of timing.

"That’s not how we eat anymore," Dru said. "You put out an album to get shows and verse features [guest appearances on other artists’ songs]. So we gotta look at these songs as bait." Massey, meanwhile, is seeking other income streams to support his label and artists, like soundtracks and licensing.

As Massey confirms, street rap comes with headaches not usually associated with Hiero. A few weeks ago, as Clear Label began preparing Shady Nate’s debut, Son of the Hood, for release, Shady was arrested on an alleged weapons violation and remains incarcerated pending trial.

"They’re trying to throw the book at him," Massey said. "I’m hoping we can work it out because Shady’s a good dude, and his album is great." Even if Shady has to do a stretch in prison, Son of the Hood will probably see the light of day sometime later this year.

Ultimately the big question for PTB/Livewire is whether the coalition can achieve the mainstream success that eluded the hyphy movement. Beeda and Stalin think so, and with the support and mentorship of the Hiero camp, they have as good a chance as any in the Bay — and maybe even the best.

With the long view of a rapper 15 years into his career, Massey is philosophical about the prospects of his Clear Label empire. "If we break even it’s cool," he said. "If we make money, even better. But if I break even, I’m happy, because it wasn’t a loss for me to put out great music."

PAID DUES FESTIVAL***

With Hieroglyphics and others

Sat/14, 5 p.m., $40

Berkeley Community Theatre

1900 Allston, Berk.

www.ticketmaster.com

***This show has been cancelled. From the promoters: Guerilla Union and MURS 3:16 regret to announce that the PAID DUES INDEPENDENT HIP HOP FESTIVAL scheduled for Saturday, June 14 at the Berkeley Community Theatre in Berkeley, CA, has been cancelled due to matters beyond our control.

For fans that have purchased tickets to the show, we apologize for any inconvenience this may have caused. Refunds are available for ticketholders at the point-of-purchase.

Election as prologue

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› steve@sfbg.com

San Francisco politics shifted June 3 as successful new coalitions altered the electoral landscape heading into the high-stakes fall contests, when seven of the 11 seats on the Board of Supervisors are up for grabs.
Progressives had a good election night even as lefty shot-caller Sup. Chris Daly suffered a pair of bitter defeats. And Mayor Gavin Newsom scored a rare ballot box victory when the southeast development measure Proposition G passed by a wide margin, although voters repudiated Newsom’s meddling with the San Francisco Public Utilities Commission by approving Prop. E.

But the big story wasn’t these two lame duck politicians, who have served as the two poles of local politics for the past few years. It was Mark Leno, who handed Sen. Carole Migden her first electoral defeat in 25 years by bringing together progressives and moderates and waging an engaged, effective ground campaign. In the process, he may have offered a portent of things to come.

The election night speech Leno gave just before midnight — much like his entire campaign — didn’t break along neat ideological lines. There were solidly progressive stands, like battling the religious right’s homophobia, pledging to pursue single-payer health care, and blasting Pacific Gas & Electric Co. for funding sleazy attack pieces against him, reaffirming his commitment to public power.

But he also thanked Newsom and other moderate supporters and heaped praise on his political consulting firm, BMWL, which has run some of downtown’s nastiest campaigns. "It was clean, it was smart, and it was effective," Leno said of his campaign.

The Migden campaign, which had the support of Daly and many prominent local progressives, often looked dirty by comparison, marred by past campaign finance violations that resulted in Migden getting slapped with the biggest fine in state history and by Daly’s unethical misuse of the Guardian logo on a mailer that made it appear as if we had endorsed Migden.

Old alliances seemed to crumble around this election, leaving open questions about how coalitions will form going into an important November election that’s expected to have a crowded ballot and huge turnout.

UNITY AND DIVISION


There are things that unite almost all San Franciscans, like support for public schools. In this election that support came in the form of Prop. A — a measure that will increase teacher salaries through a parcel tax of about $200 per property owner — which garnered almost 70 percent of the vote.

"These numbers show that people believe in public education. They believe in what we’re doing," school superintendent Carlos Garcia told a jubilant election night crowd inside the Great American Music Hall.

Also uniting the city’s Democrats was the news that Barack Obama sewed up the party’s presidential nomination June 3, ending a primary battle with Hillary Clinton that had created a political fissure here and in cities across the country.

"The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory," Leno said on election night, triggering a chant of "Yes we can" from the crowd at the Upper Market bar/restaurant Lime.

Local Clinton supporters were already switching candidates on election night, even before Clinton dropped her campaign and announced her support for Obama four days later.

"As a strong Hillary person, I’m so excited to be working for Obama these next five months," DCCC District 13 member Laura Spanjian, who won reelection by placing fourth out of 12 slots, said on election night. "It’s my number one goal this fall."

Leno also sounded conciliatory themes. In his election night speech, Leno acknowledged the rift he created in the progressive and LGBT communities by challenging Migden: "I know that you upset the applecart when you challenge a sitting senator."

But he vowed to repair that damage, starting by leading the fight against the fall ballot measure that would ban same-sex marriage and overturn the recent California Supreme Court decision that legalized it. He told the crowd, "I invite you to join together to defeat the religious right."

A day later we asked Leno about whether his victory represented a new political center in San Francisco and he professed a desire to avoid the old political divisions: "Let’s focus on our commonalities rather than differences," he said, "because there is real strength in a big-tent coalition."

But this election was more about divisions than unity, splits whose repercussions will ripple into November in unknown ways. Shortly before the election, Daly publicly blasted "Big Labor" after the San Francisco Labor Council cut a deal with Lennar Corporation, agreeing to support Prop. G in exchange for the promise of more affordable housing and community benefits.

On election night, Newsom couldn’t resist gloating over besting Daly, whose affordable housing measure Prop. F lost big. "I couldn’t be more proud that the voters of San Francisco supported a principled proposal over the political proposal of a politician," Newsom told us on election night, adding, "Today was a validation of community investment and involvement over political games."

While Daly and some of his progressive allies have long warned that Leno is too close to Newsom to be trusted, one of the first points in Leno’s speech was the celebrate the passage of Prop. E, which gives the Board of Supervisors more power to reject the mayor’s appointees to the San Francisco Public Utilities Commission. "As an early supporter I was happy to see that," Leno said.

Susan Leal, the former SFPUC director who was ousted by Newsom earlier this year, said she felt some vindication from the vote on Prop. E, but mostly she was happy that people saw through the false campaign portrayals (which demonized the Board of Supervisors and erroneously said the measure gave it control over the SFPUC.)

"This is one of the few PUCs where people are appointed and doing the mayor’s bidding is the only qualification," Leal told us on election night.
Sup. Tom Ammiano, who will be headed to the Assembly next year, agreed: "It shows the beauty contest with the mayor is over and people are willing to hold him accountable."

ANALYZING THE RESULTS


On the day after the election, during a postmortem at the downtown office of the San Francisco Planning and Urban Research Association, political consultants Jim Stearns and David Latterman sized up the results.

Latterman called the Prop. E victory "the one surprise in the race." The No on E campaign sought to demonize the Board of Supervisors, a strategy that clearly didn’t work. Firing Leal, a lesbian, helped spur the city’s two major LGBT groups — the Harvey Milk and Alice B. Toklas Democratic clubs — to endorse the measure, which could have been a factor when combined with the high LGBT turnout.

"This may have ridden the coattails of the Leno-Migden race," Stearns said.

In that race, Stearns and Latterman agreed that Leno ran a good campaign and Migden didn’t, something that was as big a factor in the outcome as anything.
"Migden did too little too late. The numbers speak for themselves. Leno ran a really good race," Latterman said, noting how Leno beat Migden by a large margin in San Francisco and came within a few thousand votes of beating Joe Nation on his home turf of Marin County.

"It was a big deal for Leno to get so close to Nation in Marin," Stearns said.

Leno told us the polling his campaign did late last year and early this year showed he had a strong advantage in San Francisco, "so with that, I invested a lot of time and energy in Marin County."

Stearns attributed the big Prop. G win to its large base of influential supporters: "The coalition-building was what put this over the top." Daly chalked it up to the $4 million that Lennar spent, saying it had bought the election. But Stearns, who was a consultant for the campaign, didn’t agree: "I don’t think money alone ever wins or loses campaigns."

Yet he said the lack of money and an organized No on G/Yes on F campaign did make it difficult to stop the Lennar juggernaut. "You need to have enough money to get your message out," Stearns said, noting that "Nobody knew that the Sierra Club opposed [Prop. G]."

In the one contested judge’s race on the ballot, Gerardo Sandoval finished in a virtual dead heat with incumbent Judge Thomas Mellon. The two will face off again in a November runoff election because a third candidate, Mary Mallen, captured about 13 percent of the vote.

"How angry is Sandoval with Mallen now?" Latterman asked at the SPUR event. "If that 13 percent wasn’t there, Sandoval wins."

Both Latterman and Stearns agreed that this election was Sandoval’s best shot at unseating a sitting judge. "He’s going to face a tougher test in November," Stearns said.

The other big news was the lopsided defeat of Prop. 98, which would have abolished rent control and limits on condo conversions in addition to its main stated aim of restricting the use of eminent domain by local governments.

"It just lost bad," Latterman said of Prop. 98, the second extreme property rights measure to go down in recent years. "It just needs to go away now…. This was a resounding, ‘Just go away now, please.’<0x2009>"

LOOKING FORWARD


Aside from the Leno victory, this election was most significant in setting up future political battles. And progressives won a big advantage for the battles to come by picking up seats on the city’s two Democratic County Central Committees, a successful offensive engineered largely by Daly and Peskin, who were both elected to the eastside DCCC District 13.

"On the DCCC level, we took back the Democratic Party," said Robert Haaland, a progressive who was reelected to the DCCC District 13.

"The fight now is over the chair. The chair decides where the resources go and sets the priorities, so you can really do a lot," Haaland told us.

Many of the fall supervisorial contests feature races between two or three bona fide progressives, so those candidates are going to need to find issues or alliances that will broaden their bases.

In District 9, for example, the candidates include housing activist Eric Quezada (who lost his DCCC race), school board president Mark Sanchez, and Police Commission member David Campos — all solid progressives, all Latino, and all with good bases of support.

Campos finished first in his DCCC District 13 race just ahead of Peskin. Speaking on election night at the GAMH, Campos attributed his strong showing to walking lots of precincts and meeting voters, particularly in the Mission, an effort that will help him in the fall.

"A lot of Latino voters are really eager to be more involved [in politics]," Campos said. "Speaking the language and being an immigrant really connects with them."

Campos thinks public safety will be a big issue on voters’ minds this fall, an issue where he has strength and one that progressives have finally seized. "Until Ross Mirkarimi came along, progressives really weren’t talking about it," Campos said.

So, does Campos’ strong DCCC showing make him the front runner? When I asked that question during the SPUR event, Latterman said he didn’t think so. He noted that Sanchez has always had strong finishes on his school board races, citywide contests that includes the Portola area in District 9 but not in DCCC District 13. In fact, Latterman predicted lots of acrimony and close contests this November.

"If you like the anger of Leno vs. Migden, we’ll have more in the fall," Latterman said of the competitive supervisorial races.

Leno hasn’t been terribly active in local contests since heading to Sacramento, and he told us that his focus this fall will be on state ballot fights and the presidential race. He hasn’t made endorsements in many supervisorial races yet, but his two so far are both of progressives: Ross Mirkarimi in District 5, and David Chiu in District 3. And as he makes more supervisorial endorsements in the coming months, Leno told us, "I will be fighting for progressive voices."

Sarah Phelan contributed to this story.

And so it begins

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› sarah@sfbg.com

Mayor Gavin Newsom chose a telling site for the June 2 release of his budget: the San Francisco Police Department’s Special Tactical Operations Center at Hunters Point Shipyard. And if its relationship to Proposition G, the mayor’s plan to let Lennar Corporation develop the southeast part of the city, wasn’t clear enough, Newsom made it explicit.

"You’ll have the opportunity to support Proposition G and reject Proposition F, the one that is getting in the way," Newsom told department heads and the press as police, who warned budget protesters that it is illegal to campaign on city property, looked on in silence. It is also illegal for the mayor to campaign for ballot measures on city property.

In his speech, Newsom labeled as the "heroes" of this year’s budget the unions that have agreed to unpaid days off, including the Laborer’s Union, the Deputy Sheriff’s Association, Firefighters Local 798, and the Municipal Executives Association. Conversely, he vowed to remember that the police, nurses, and lawyers unions wouldn’t amend the contracts Newsom negotiated last summer.

Sounding more like a gubernatorial candidate intent on winning over Orange County voters than the leader of the most progressive city in the nation, Newsom said, "We are living within our means and being fiscally prudent, without out-of-control borrowing and without tax increases. But we still have a $338 million shortfall."

But there has been widespread criticism of the mayor’s plan as details emerge of its massive cuts to health and human services, while increasing the city’s budget for street repaving, pothole repair, and police academies.

"It’s the least democratic, least transparent budget process in many years, in terms of lack of information from the Mayor’s Office to the city departments and the community-based organizations that are affected," said Coleman Advocates for Children and Youth organizer Chelsea Boilard. "In the past, programs were given a heads-up. This year it continues to be a frantic scramble."

According to Boilard, city departments were still finding out the extent of the cuts even after Newsom made his presentation, including the news that the budget addbacks approved by the Board of Supervisors last year are not being continued in the 2008-09 budget.

"A nightmare," was how Debbi Lerman of the San Francisco Human Services Network described the budget.

"If we listen to mayor’s presentation, everything is rosy, revenue-wise. It’s just a spending problem. But from the community’s perspective, it’s shocking," Lerman said, citing $15.5 million in cuts to the Department of Public Health, $3.5 million in cuts to the Human Services Agency, and a 20 percent cut to domestic violence programs.

"And [the cuts] have been a constantly moving target," Lerman added. "We’re mere weeks away from the implementation of this budget, but no one knows which clients, programs, or services will be lost, though we are sure that there will be a lot of layoffs in our sector. The mayor should not balance his budget on the backs of the poor."

She believes the city needs to look at some non-essential services during a bad budget year and see what can be deferred to the future — and find ways to increase its revenue.

"The mayor is not a stone. He does get it to some degree. But it’s unfortunate that he’s not chosen to put forth revenue measures at this point," Lerman said.

Robert Haaland of Service Employees International Union Local 1021 agrees that the city has a revenue problem. He also believes that it’s not OK to ask the city’s lowest-paid workers to make concessions, again and again: "[SEIU 1021] has repeatedly stepped up to the table, we’d like to see some others do it."

Jonathan Vernick, executive director of Baker’s Place, which is facing the prospect of having to close one floor of its medical detox program, argues that many of the mayor’s proposed cuts are in conflict with Newsom’s stated goal of getting the homeless and inebriated off the street. "Ironically, this budget seems to fail to meet a simple criteria — that the proposed cut actually saves money," Vernick said. "All I can see is cuts that by end of fiscal year will have dismantled a system that’s been working for 35 years."

John Eckstrom of the Haight Ashbury Clinics believes the budget cuts will decimate the model of integrated services. "These are very deep cuts," said Eckstrom, who expects to lay off 40 to 50 of his 170 employees.

"It’s a testament to the willpower of the nonprofits that we are able to stay alive," Eckstrom said. "But what are the mayor’s priorities? There’s his rhetoric that says it’s not a revenue problem, and then there’s the reality."

With the Board of Supervisors set to conduct public budget hearings throughout June, Board President Aaron Peskin sees Newsom’s proposal as a "law and order budget."

"Domestic violence programs have lost $750,000 in funds, substance abuse programs have been taken to the woodshed, and mental health programs are being cut by 25 percent," said Peskin, criticizing the mayor for "introducing and extolling new programs while failing to protect the safety net of human and health services that San Francisco has put together over many years."

"Last time we had a budget like this, Mayor Willie Brown was much more forthright and honest about its disastrous impact on the poor," Peskin added. "This administration has cloaked this disaster in a press blitz. But any way you dress it, it’s a pig."

As chair of the Board’s Budget and Finance Committee, Sup. Jake McGoldrick was equally blunt in his criticisms as he set about deciphering the details of Newsom’s proposal

McGoldrick refuted as "a deception" Newsom’s claim of having cut 1,085 jobs. "The real number is 99.08 positions," McGoldrick said, factoring in preexisting vacancies, Newsom’s three proposed police academy classes, and the 26 staff positions for Newsom’s 311 program, not to mention other new proposed programs and initiatives.

Upset that Newsom has budgeted $500,000 for a Community Justice Court that will divert people to the kinds of programs that Newsom’s budget is undermining, McGoldrick told the Guardian that he "aims to identify at least $30 million to $40 million in deceptions and redirect these funds to top priority human needs and services that are already woefully underfunded."

"The mayor is trying to pump all the problems over to the Board of Supervisors," McGoldrick said. "It’s going to be a labor of love to figure out how to direct money to folks who are hurting now."

Peskin said he expects the supervisors to discuss three new revenue proposals in the next month in order to avoid another slash-and-burn budget next year. These proposals include a property transfer tax, closing a payroll tax loophole on partnerships, and preserving the city’s 911 fee, which is under legal attack.

As of press time, the Mayor’s Office had not returned calls about revenue creation. Maybe Newsom’s handlers were busy figuring out how to deal with a budget protest slated for 6 p.m. June 11 outside the his residence in the Bellaire Tower building, 1101 Green St.

Organized by Jennifer Friedenbach, executive director of the Coalition on Homelessness, the protest aims to draw attention to what Friedenbach calls "Mayor Newsomator’s plans to terminate the poor."

These plans include closing the Ella Hill Hutch Homeless Shelter as well as the Tenderloin Health Homeless Drop-in, and the almost total elimination of the SRO Families United Program. The Board has until July 31 to adopt a revised budget.

Interfaith demonstration challenges Newsom to remember homeless

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By Marianne Moore

At the foot of the rotunda stairs in City Hall, a young bride in a short white dress shifts her weight from side to side, holding a bouquet of bright yellow lilies. Maybe she’s watching intently as the solemn procession of roughly 120 clergy and activists winds slowly up the steps and towards the bronze bust of Harvey Melk. Or maybe she’s just annoyed at being made to wait.

religiouswitness2a.jpg

The demonstration, which began in the South Light Court at 10:30 on Thursday, June 5, was organized by Religious Witness for Homeless People, an interfaith organization that pushes for policy change on behalf of San Francisco’s homeless. Though Religious Witness has been responsible for hundreds of actions during its 15-year existence, including a much-publicized 1996 campaign to preserve the Presidio’s Wherry housing for low-income tenants, today’s protest was specifically directed at the ongoing budget process. The city is facing a $338 million dollar deficit, and Mayor Newsom is expected to balance the budget by cutting city funding to key service organizations. “The proposed budget is a disaster for San Francisco’s homeless,” said Sister Bernie Galvin, the founder of Religious Witness and a Catholic nun. She cited the 137 documented homeless deaths in San Francisco in 2007, suggesting that if the mayor and the board of supervisors cut crucial services, homeless deaths could rise this year.

The demonstrators processed through the corridors of city hall, singing softly, past signs reading “Silence: meeting in progress.” The procession halted outside the office doors of each of the city’s 12 supervisors, and each time Sister Bernie rapped loudly on the glass. As the door opened, retired Catholic priest John “Fitz” Fitzgerald spoke each supervisor’s name loudly, and the crowd responded in unison: “we call on you to remember that our moral compass always points in the direction of compassion.” Sister Bernie presented the supervisor with a plaque (usually accepted with an embarrassed smile by an aide) and the slow marching and singing resumed, punctuated by the sound of the heavy wooden doors slamming shut. When the demonstration reached the office of Gerardo Sandoval, the 11th district supervisor, a grinning Sandoval joined the procession, chatting with the clergy, shaking hands and clapping backs. “I’m with you one hundred percent,” he said, addressing the crowd.

Beyond the budget spin

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OPINION Local government is frozen. The mayor’s office and the Board of Supervisors have been engaged in open warfare for months. This week, Mayor Gavin Newsom announced that in order to balance San Francisco’s budget, city services and community-based organizations will have to undergo draconian cuts.

In a preemptive move against embarrassing protests, the mayor’s press office did not reveal the location of the annual budget presentation to the news media until late Friday afternoon. Even the supervisors, who will be debating and voting on the budget during the month of June, were left in the dark until then.

While the mayor didn’t blame city workers for the financial crisis, he did suggest that Service Employees International Union Local 1021, which represents the low-wage, frontline, service-providing city workers, should "help out."

Well, we have. SEIU members stepped up to "help out" in fiscal years 2003–04 and 2004–05 by agreeing to wage freezes and self-funding our pensions. All the recent midyear cuts were in public health agencies and among SEIU-represented nonprofits.

Most recently we stepped up by helping draft and vigorously campaigning to pass Proposition B, which freezes city workers wages for two years and tightens eligibility for retiree health care benefits in exchange for a modest increase in city pension benefits.

The mayor’s budget director repeatedly has said that this is a spending problem, not a revenue problem. Talk about spin.

Moreover, in his June 2 budget presentation, the mayor made no mention of raising revenue as an answer to our fiscal problems. You could almost hear Gov. Schwarzenegger’s voice as Newsom presented a slash-services budget with a "no-new-taxes" slogan waiting in the wings for his next campaign.

Everyone knows it’s expensive to live in San Francisco. Paying city employees a wage that allows them to stay in the community they serve isn’t a budget "problem." It ought to be a basic part of what City Hall does and cares about. And if that means looking at bringing in new sources of money, we should have that conversation.

We believe there are various revenue sources that make more sense to explore than some of these service cuts, including a real estate transfer tax increase for high-level properties.

Fortunately, the mayor’s proposal is just a starting point. Soon we will be proposing specific alternatives.

Toward that end, the San Francisco Human Services Network and Coleman Advocates for Children and Youth have organized a citywide forum on the mayor’s proposed budget cuts. SEIU 1021 is cosponsoring this event. The San Francisco budget and revenue town-hall meeting will be held June 9 from 2-4 p.m. in the San Francisco Main Library’s Koret Auditorium, 100 Larkin (at Grove)

Don’t get angry. Get organized.

Robert Haaland

Robert Haaland is a longtime San Francisco activist who works for Local 1021.

Shit equity

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› sarah@sfbg.com

GREEN CITY At long last, the San Francisco Public Utilities Commission appears to be moving forward with plans to address long overdue environmental justice issues (“It Flows Downhill,” 08/08/06) that are directly related to its sewage treatment plant in the city’s southeast sector.

At a May 27 SFPUC meeting, SFPUC staff recommended that the agency build a new digester facility in the southeast part of town and divert 12 percent of its sewage flow to the west side’s Oceanside plant, (which, incidentally, a current signature-gathering campaign hopes voters in November will rename the George W. Bush Sewage Treatment Plant).

For decades residents of Bayview–Hunters Point have endured foul smells, thanks to the close proximity to their homes of the Southeast treatment plant. The site treats 76 percent of the city’s sewage in facilities that are almost entirely outdoors. By contrast, facilities at the Oceanside plant, in a wealthier side of town, are mostly indoors and/or underground.

It’s an unequal division that has long had southeast residents claiming environmental racism. To make matters worse, the Southeast plant contains nine pancake-shaped digesters that could experience problems in an earthquake, with worrisome corrosion on the undersides of the digesters’ covers.

Cost estimates for a new digester facility range from $700 million to $1.3 billion. This variation depends on the location choice for the new digesters: if the agency builds new digesters on the south side of its existing Southeast plant, the agency is looking at the cheaper end of the scale.

But if the SFPUC follows another option to build a new facility on the back lot of Pier 94, a Port of San Francisco property, it would remove the plant from a residential neighborhood but be left facing a near doubling of the cost.

Replacing the digesters was a pet cause of former SFPUC General Manager Susan Leal, and continues to be a priority for District 10 supervisor Sophie Maxwell, so it’s likely to remain a key focus for former City Controller Ed Harrington, who took over as general manager of the agency after Mayor Gavin Newsom ousted Leal.

"You’ll see immediate work on the digesters," Harrington assured the commissioners. "The PUC is suggesting doing on an environmental impact report on both sites."

That report likely won’t be complete until 2010, when the agency leaders will have to choose an option. PUC project manager Jon Loiacono seems to be keenly aware of the thorny issues at play and told the commission that "staff would like to work with an advisory group and hire a consultant sensitive to community issues to find the best solution."

"It would almost certainly be less expensive to rebuild on the current site, but we don’t want anyone to make the digester decision based on cost," PUC spokesperson Tony Winniker told the Guardian.

"We really want it to be a public health and safety decision," PUC Citizens Advisory Committee chair Alex Lantsberg told the Guardian.

The digester replacement cost represents a significant chunk of the total estimated price tag of the PUC’s proposed sewer system master plan, which ranges from $3.8 billion to $4.4 billion. PUC staff is also outlining plans to send some of the waste westward in what the PUC currently calls "the Upper Alemany diversion."

The plan involves building a tunnel near Cayuga Creek, where runoff water tends to back up, and carrying it to the Oceanside plant. So, is this the return of the dreaded cross-town tunnel, an idea that had irate Bernal Heights residents waving plungers at City Hall three decades ago? PUC staff claim it is not.

"It’s a different concept, but similar," Loiacono said of the current plan.

"This reduces how much waste is treated in the Bayview and shifts it to a plant where there is excess capacity," Winniker explained, further noting that while the old cross-town tunnel would have run under Bernal Heights, this diversion will use city rights of way.

The project would improve drainage for the Cayuga and divert about 10 million gallons of sewage per day from the Southeast plant to the Oceanside plant, PUC spokesperson Tyron Jue told us. The alignment hasn’t been chosen yet, but Jue said, "we’re considering different routes, like Brotherhood Way or Ocean Avenue."

Whatever path the SFPUC pursues, the project won’t be cheap — economically or politically.

A fall revenue measure

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EDITORIAL If you think the June ballot was busy, wait until November. San Francisco will be electing six district supervisors. The mayor and organized labor are going to be pushing the mother of all bond acts, roughly $1 billion to rebuild San Francisco General Hospital. There’s likely to be a public power charter amendment mandating that the city mount a real effort to take over the electric grid. There will probably be a major affordable-housing initiative that includes a set-aside for low-income housing and perhaps some affordable-housing bond money. It’s shaping up as an election that will change the city’s direction for years to come — but there’s still a crucial piece missing.

There’s no money.

Public power will, of course, generate vast amounts of new revenue, but not immediately: the process of setting up the system and fighting Pacific Gas and Electric Co. in court could drag out for several years. That, of course, is all the more reason to get started — if the city had done this years ago, we wouldn’t have a budget crisis today.

But in the meantime, right now, San Francisco needs cash — and there needs to be a November ballot measure that brings in new revenue to pay for more affordable housing and to save the services Mayor Gavin Newsom is cutting.

It’s tough to pass new taxes in California. Most of the time, state law mandates a two-thirds majority vote by the people to enact any new form of taxation. But it’s a bit easier when the supervisors are up for election; on those ballots, the threshold is only 50 percent. And with at least four tightly contested supervisorial races bringing out voters, labor bringing out the troops for the General Hospital bond, and the Democratic Party pushing to get voters out for Barack Obama, the turnout should be excellent.

So if there’s ever a good time to try to pass a tax measure, November 2008 ought to fit the bill.


All sorts of tax proposals have floated around City Hall in recent years and some of them — for example, a higher real-estate transfer tax — were defeated at the ballot. Some groups will oppose any tax proposal, and it’s hard to find constituencies that want to work hard for higher taxes.

So the key to crafting a revenue measure is to ensure that it’s as progressive as possible, and that it takes into account the concerns of those small businesses and homeowners who aren’t rich and can’t afford huge new levies. We see two good options:

1. A city income tax. This hasn’t been seriously discussed since the 1980s, but it ought to be. California law bars cities from collecting traditional income taxes — that is, San Francisco can’t tax the incomes of everyone who lives here. But in 1978 the state Supreme Court ruled that cities can tax income earned from employment in the city. The upside is that a San Francisco employment income tax would hit commuters, a huge group who use city services and don’t pay for them. The downside is that people who live here but work, say, in Silicon Valley would escape the tax.

But overall, income taxes are the fairest method of collecting revenue, and a city tax could be set to hit hardest on the wealthiest. The city could exempt, say, the first $50,000 of earned income, levy a modest (say, 1 percent) tax on the next $50,000, then increase the marginal percentage so that people with enormous salaries pay as much as 2 or 3 percent.

The beauty of this: most of the people who paid the top-end income tax would simply write it off their federal income taxes — meaning this would be a direct shift of cash from Washington DC to San Francisco. And it would come primarily from people who have already received a huge tax windfall from the Bush administration.

Yes, some people would cheat. Some businesses would try to claim their employees all really worked out of a satellite office in another city. But New York City has a municipal income tax. So does Philadelphia. They manage to deal with the cheaters. The supervisors at least ought to consider the idea.

2. A new business tax. Almost everyone agrees that San Francisco’s business taxes are unfair. The city places a flat tax on businesses — a small merchant pays the same percentage as a giant corporation — and some partnerships, like law firms, get away with paying no city taxes at all. The best way to fix that may be to create a single, progressive business tax (probably on gross receipts), with no loopholes, that exempts the first $100,000 or so and actually lowers the levy on small businesses while significantly raising it on big ones. Most small businesses would get an actual tax cut while the big guys would pick up the tab.

Together, a tax package like this could bring in the $250 million a year or so the city needs — and some of the money could go to cutting, say, Muni fares or reducing the sales tax so working-class San Franciscans would pay less.

Almost everyone at City Hall knows the current tax system is unfair, regressive, and inadequate. We’ve been calling for the supervisors to do something about it for years now. November 2008 seems like an excellent time.

Editor’s Notes

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› tredmond@sfbg.com

I think it’s safe to say that most people in the real estate business tend to oppose raising taxes on real estate. And generally speaking, you don’t find the industry well represented at dinners for urban environmental groups. But John Barry is different. He’s a Sunset District Realtor who is full of ideas about how to get the city more revenue, and after I ran into him at the San Francisco Tomorrow dinner May 21, he sent me a proposal he says would bring in more than $5 million a year.

Barry was digging around in property records recently and learned that a parcel out on 19th Avenue sold a year ago, in June 2007, for $2.5 million — and the new owners still hadn’t received a property tax bill. The owner "most likely won’t be getting the bill until July or later," Barry wrote. "He will then have another 30 to 90 days to come up with his payment."

Although the city will eventually get the money, the late property tax bill means that cash is sitting in a property owner’s bank account, earning interest that ought to go to the city. At the current tax rate of 1.141 percent of market value, which is typically the sale price, the lost interest on this one property is about $2,800. Multiply that times all the commercial and residential sales in the city, and Barry estimates San Francisco is losing some $5 million in interest every single year.

"Who is to blame? All of us," he wrote. "If taxpayers had been raising a fuss, the city would have found ways to do this all quicker."

When property changes hands, it typically goes through a title company and an escrow procedure and, at closing, a bunch of money changes hands. The buyer pays a whole list of fees — to the title company, the broker, the mortgage company, etc. Why can’t the city be in the mix?

Here’s how it could work, Barry suggests: "The title company calls the tax collector and says, ‘We are closing a sale in two days. The sale price is $1 million. Send us an interim estimated tax bill.’ The tax collector multiplies .01141 [the property tax rate] against $1 million and instantly prints an interim bill of $11,410 and e-mails it to the escrow officer."

Makes sense to me.

So the day I got Barry’s e-mail, I called Assessor-Recorder Phil Ting and left him a message saying I’d found him $5 million. He called back right away. I ran Barry’s idea by him, and he told me it was worth pursuing.

It’s a bit more complicated than it seems, he said, particularly with commercial property — which is where the big money is, anyway. In many cases the city doesn’t accept the sales prices as the actual value, and under Proposition 13, you can’t raise a tax bill once you set it. But I have great faith that City Attorney’s Office can figure a way around that.

Of course, Ting has another problem: he doesn’t have the staff to catch up on the existing backlog — and Mayor Gavin Newsom wants to cut his budget. "Nobody wants to stand up and fight to fund the tax man," he told me. That, of course, is lunacy. If you’re short of money, you don’t cut the folks who are bringing it in.

It’s hard to talk about taxing anyone, even in San Francisco. "I write this," Barry said, "because I am a founding member of the How a Realtor Can Commit Professional Suicide Club." But you know he’s right.

Leno celebrates tough win

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Lime on Market Street near Castro was crowded with Mark Leno supporters when the candidate took the microphone just before midnight. He had already taken the concession calls from Carole Migden and Joe Nation and was primed to celebrate his victory over an incumbent senator, whom Leno supporter Bevan Dufty had just taken a couple subtle digs at as he introduced Leno, suggesting that Migden didn’t listen to her constituents or play by the rules.
Leno then gave a speech that demonstrated the unique package of issues, enemies and allies that he has turned into a winning coalition. “Tom Ammiano, it’s gonna be a helluva lot of fun serving with you,” Leno said of the man who will succeed him with his endorsement. “I just heard Prop. E passed,” Leno continued, referencing the measure that will submit the mayor’s SFPUC appointments to Board of Supervisors approval. “As an early supporter, I was happy to see that.” That stand was already a hopeful sign of his independence from Mayor Gavin Newsom and PG&E, but then he really went after the company, which had funded a hit piece mailer by a group calling itself Californians to Protect Children, trotting out some old sleaze about Leno being soft on pedophiles because he resisted right wing efforts to capitalize on crime fears.
“When you attack one gay man like this, you attack all gay men,” Leno said. “All gay men should be outraged with PG&E tonight.” He thanked Dennis Kelly of United Educators of San Francisco for giving his campaign early credibility. Then Leno returned to the LGBT community, promising to heal the rift his challenge of Migden opened by leading the fight against the fall ballot measure that would ban same sex marriage. “I invite you to join together to defeat the religious right,” Leno said.
He then thanked a long list of leaders who endorsed him, from Mayor Gavin Newsom and House Speaker Nancy Pelosi to District Attorney Kamala Harris and former SFPUC director Susan Leal to members of the late night entertainment community, which rallied for Leno with signs on nightclubs all over town. And then he thanked his campaign consultants, the downtown darlings BMWL, affectionately naming a list of people from there and saying of the campaign they created: “It was clean, it was smart, it was effective.”
And Leno’s final name check was to the presidential candidate he supports, who also had a good night: “The winds of change are blowing tonight. Let me congratulate Barack Obama on his victory.”

Cold wind in the Bayview

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When the chill wind of early returns showed Prop. G leading Prop. F in the polls, (67 percent to 33 percent ) the folks at the Prop. F campaign HQ put it down to all the money that Lennar spent to influence the election.

Inside the Prop. F party at 5030 Third Street, supporters munched on pizza, listening to the Nation of Islam’s Minister Christopher Muhammad expounding on “the $4 million of known money that Lennar has spent, not to mention the unknown slush funds.”

“I’m encouraged just by the fact that we forced them to spend so much,” Muhammad said, berating, “the Labor Council’s leadership for selling out its leadership in a backroom deal.”

Muhammad was referring to the community benefits agreement that the SF Labor Council negotiated with Lennar at the last minute, with Lennar promising to develop 32 percent affordable housing units at Bayview/Candlestick Point.

Bishop Ernest Jackson joined Muhammad in casting aspersions on Lennar ‘s deal with the SF Labor Council, by pointing to what he called Mayor Gavin Newsom’s “secret press conference” about the 2008-09 budget at the Hunters Point Shipyard on June 2, as a clue to why Labor capitulated to Lennar and Newsom’s demands.

Noting that Newsom announced his budget in a “police station surrounded by all kinds of weaponry and armored personnel carriers,” Jackson claimed that Newsom “held the unions hostage”.

“Newsom used the budget cuts as veiled threats over people of conscience,” Jackson said. “But the Prop. F movement proves there is another constituency in the Bayview. The City had no idea it would have its own cyclone in the southeast sector. This same groundswell can look at its supervisor and say, you’re not doing the right thing.”

Meanwhile, Muhammad was expressing his belief that San Francisco is going to the dogs, literally, a view he aired in the heart of the Bayview, earlier this week, as the following video shows:

“There are now more dogs than blacks living in the city,” Muhammad said, “San Francisco is becoming a playground for young urban multimillionaires.”

Cal-ISO totally changes tune on power plants

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Oh my. For all you folks that have been following the controversy around building new power plants in San Francisco, it just got even better.

Mayor Gavin Newsom sent a letter to the Board of Supervisors today outlining a “more promising way forward than the current proposal” to build two natural gas-burning “peaking” power plants in the city.

The way forward: retrofit three existing diesel turbines at the Mirant-Potrero Power Plant, while at the same time shutting down Unit 3, the most polluting part of the power plant, as soon as the Transbay Cable comes online.

“On Friday, May 23, Ed Harrington [General Manager of the SFPUC], City Attorney Dennis Herrera and I met with president of Cal-ISO – Yakout Mansour, the chairman of the CPUC – Mike Peevey, the CEO of Mirant – Ed Muller, the CEO of PG&E – Bill Morrow, and our respective staffs. In this meeting we vetted the possibility of retrofitting the diesel turbines [currently owned and operated by Mirant] and asked each stakeholder to give us the necessary commitments to advance this alternative,” Newsom wrote to the Board.

For anyone who’s been closely following the nuances of this argument, this is a significant change in position from the California Independent System Operator [Cal-ISO], and it should be noted that it took — not just the Mayor sitting down at the table — but top dogs from PG&E and Mirant (who both stand to lose money by the city building its own power plants), as well as the CPUC’s Peevey, who’s never expressed a positive opinion about the true need for more power plants in the city.

Now, suddenly, Cal-ISO is departing significantly from all previously expressed demands that we build power plants.

The background: The state, through Cal-ISO, has for the last several years insisted that San Francisco needs 150 megawatts of peak electricity at the ready. We currently get this from Mirant-Potrero, but Unit 3 of that facility has a bad rep as the greatest single source of pollution in the city. People in the Bayview neighborhood, which have carried more of their fair share of pollution, have been waiting a long time for the plant to close. Stakeholders have been meeting for over seven years, working on ways to close the plant, and much of the leadership on the issue has come from Sup. Sophie Maxwell, who represents the Bayview district.

Cal-ISO has insisted that the only way to close Unit 3 is to build new peakers, which would be owned and operated by the city, run cleaner and more efficiently, and still supply that 150 MW of peak power. Even when the 400 MW Transbay Cable was approved, Cal-ISO insisted San Francisco would still need the peakers.

But in a June 2 letter, Cal-ISO suddenly had a different response for the Mayor.

Budget picks on poor and infirm

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The Coalition on Homelessness has done a quick survey of the budget slashes that were announced today.

To sum, if you’re a cop, you’re psyched. If you’re down on your luck, without a place to stay and off your meds, and the city’s been helping you sort all that out….well, you’ve got until the end of the month to get it together.

From COH’s executive director, Jennifer Friedenbach:

Mayor Newsom released a budget today that will terminate critical health and human services, while pumping up salaries for police by 25% and adding many new high paid patronage positions into his own administration.

Some highlights of the devastating impact of the budget include:

1) Closure of Ella Hill Hutch shelter, serving up to 100 people every night in the Western Addition.

2) Closure of Caduceus Outreach Services, a mental health treatment and wrap around support program for severely disabled homeless adults with co-existing addictive disorders.

3) Almost total elimination (66% cut) of “SRO Families United,” a program for families with dependent children living in hotels.

4) Cut of 22% to residential substance abuse and mental health treatment programs budgets. This includes:

a. Removal of support from Conard supportive housing program for severe psychiatric disabilities.
b. Closure of Cortland Acute Diversion Unit for individuals in psychiatric crisis.
c. Loss of 12 out of 24 community based medically supported detox beds.
d. Many more residential cuts yet to be determined.

5) Cut of 30% to all outpatient substance abuse and mental health treatment

6) Almost total elimination of STOP treatment program.

7) 1,600 people lose psychiatric treatment through Private Provider Network.

8) Closure of Tenderloin Health, homeless multi-service center in the Tenderloin serving over 300 people a day, 16,000 unduplicated people a year. Program provides health services, HIV case management, HIV prevention, mental health services, harm reduction work, improving quality of life by getting people out of rain, providing hygiene kits, bathrooms, snacks, crisis intervention, 30, 000 shelter reservations a year.

Mayor’s plan for changing homeless shelters

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At today’s Local Homeless Coordinating Board meeting, Mayor Gavin Newsom’s homelessness “czar,” Dariush Kayhan, briefed the group on new ideas for improving city-funded shelters that he and the mayor have been hashing over.

There were just a few, and most of them seem like they need coordination more than cash, but they all answer, to some extent, some of the calls for help that have been coming from the city’s homeless shelter system.

All of this comes from a Feb. 14 announcement by Mayor Newsom that he’d like to redesign the city’s shelters, (the day after SFBG published an expose on conditions inside.) At the announcement, Newsom discussed possibly consolidating shelters into larger facilities, offering more medical respite care, and bringing Project Homeless Connect into the shelters. Ultimately, he called on the people working in San Francisco’s homeless services industry to come up with for how to make shelters better.

Since then, a series of long, comprehensive meetings have been held to gather ideas from homeless people, shelter clients and employees, non-profit groups, medical and mental services providers, and advocates. Meetings were held at shelters and other places convenient to the homeless population (though at all the meetings I attended there was a lot of criticism that the forums weren’t drawing in enough actual homeless people.) Topics tackled included problems accessing the shelters and the quality of medical and other support services — and suggestions were plenty. The Local Board pulled together a report, outlining the most frequent, concrete, and consensual, the most repeated being: don’t reduce the number of beds. (Too bad: The Human Services Agency cut the shelter at Ella Hill Hutch from their budget, which means, as of June 30, 100 fewer mats will be available every night unless advocates rally the Board of Supervisors to put the funding back.) The other biggest cry was for more services in general, made more easily accessible, and a number of really smart ideas came out for how to do that and are included in the report [PDF].

Kayhan said he and the Mayor would be putting together an official response to the report with more concrete details of their vision. In the meantime, he threw a few ideas to the meeting.

They include:

Will the real Newsom stop campaigning?

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As we predicted , Mayor Gavin Newsom used today’s budget announcement at at the Hunters Point Shipyard to campaign.
But there were, in fact, two Newsom’s at today’s event, but only one was told to shut it.

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‘You can’t campaign here, it’s city property,” police told the guy, who was wearing a Newsom mask and protesting the Mayor’s Budget.

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“I’m not campaigning,” the guy replied, his voice muffled by his mask, as his friend, who was wearing a Ronald Reagan mask handed out fliers that listed nine ways in which “Mayor Newsom terminates poor with massive budget cuts.”

(These included closing the Ella Hill Hutch shelter, Caduceus Outreach services, SRO Families United program, and a 22 percent cut of residential substance abuse and mental health treatment programs budgets.)

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But no one said diddley when the guy who one was wearing a very well tailored suit and presenting the Mayor’s $6.5 billion budget, began to campaign by unashamedly pushing Prop. G, which out-of-town developer Lennar has spent $4 million to promote.

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“You can’t have a budget speech about the future of the City and the structural challenges we face without talking about it,” Newsom said.

Nor did anyone say squat, when Newsom began to bash the competing Prop. F, which requires that 50 percent of housing built at the Shipyard and Candlestick Point be affordable to families of four who make $65,000 and under, which is the average median income for that size household in the Bayview.

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Yes, it was cool to be inside the SFPD’s unit, without being on the wrong side of the law.

Mayor uses Shipyard to announce budget, Monday

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It’s 4 PM on a Friday afternoon, that hour when most employees are counting the seconds to the weekend—and wishing that Monday morning wasn’t only 65 hours away.

But does the Mayor’s Office know what time it is?

And if so, why have we only just found out that Mayor Gavin Newsom is planning to make his Monday morning budget announcement, at 10: 30 am, June 2, at the Hunters Point Shipyard?

The announcement will be made at
View Larger Map“>606 Hunter’s Point Shipyard.
(Unless, Newsom is planning a repeat of his disappearing Olympic Torch stunt.)

The location happens to be the San Francisco Police Department’s Tactical Operations center. Press are being asked to present press credentials for entry.

Could it be that this announcement is being made at the very last minute because the choice of location gives Newsom the appearance of impropriety? Newsom backing Prop.G on the June 3 ballot, the measure that developer Lennar has spent over $3.5 million in an effort to grab even more of San Francisco’s waterfront real estate, adding highly desirable land at Candlestick Point to the shipyard’s wastelands, so it can develop even more luxury condos?

Or could it be because he didn’t want to tip of supporters of Prop. F, the competing measure on the June 3 ballot that requires that 50 percent of development in the Bayview is affordable to people who actually live there—households that tend to make $68,000 and under and can’t afford to buy $500,000 condos and million-dollar townhouses?

Whatever the reasons, the running dogs of the press weren’t the only ones left in the dark about the budget locale.

No one on the Board of Supervisors was informed until 4PM, Friday afternoon, either. That’s when a mayoral aide came by the office of Sup. Ross Mirkarimi, who sits on the Board’s Budget and Finance Committee, to deliver the news of this hitherto top secret location.

Normally, Board members get an invitation at least 10-14 days beforehand.

Mirkarimi calls the move “highly unorthodox and outrageous.”

“What’s really unforgivable is that we are facing the worst budget deficit in San Francisco’s history,” Mirkarimi said. “The Mayor needs to be fostering collaboration, and enlisting the support of everyone he can, especially those who have influence on the budget process. It’s unfortunate that the casualty in all this is our desire to work together.”

“Fuck Lennar!”

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I’ve witnessed my share of political rallies, but Prop. F’s “We Shall Not be Moved” event at 3rd Street and Palou in the Bayview takes the bumpin’-block-party prize.

Wedged between three cash checking stores, a beauty parlor, and a T-Third station, the rally was awash with multilingual “Yes on F” signs, edgy urban chic and fighting words.

But beyond the many powerful speakers who showed up to stir up the crowd, the afternoon’s three most memorable moments involved song, dance and the spoken word.

Turfaholics’ Johnal performed to a funky remix of “San Francisco (Be Sure to Wear Some Flowers in Your Hair).

Prop. F supporters put a smile on the crowd’s face with their soulful attempts at the Cha Cha Slide.

And last but not least was hiphop emcee Cobe Obeah

Stay with the following video for a minute and you’ll get to the part where Cobe announces that he doesn’t usually cuss, then gets the crowd joining in a “Fuck Lennar!” chant, before delivering a final FU to San Francisco’s Mayor Gavin Newsom.

Tales of the shitty

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› a&eletters@sfbg.com

REVIEW San Francisco is larger than the stories written about it. This is out of necessity: if we all tried to write down everything that happened here, our arms would get tired. And while the city itself is physically and culturally in thrall to many disparate groups, its history is surprisingly open, belonging most often to those who have nothing more than the inclination to take out a pen and start writing.

Exhibit A: Erick Lyle, a punk kid from Florida who makes zines about pulling off petty scams at chain stores. Mix Lyle and San Francisco and something interesting happens — he becomes a bard of the Tenderloin, distributing his missives (written under the name "Turd Caen") out of a stolen newspaper box. He quietly stocks the shelves of the San Francisco Public Library main branch with his work, leaving clippings and photographs in the library’s archives and inserting his zines in the periodicals section.

Lyle’s new book, On the Lower Frequencies: A Secret History of the City (Soft Skull Press, 272 pages, $14.95), is more likely to end up in the general collection of the library through official channels. After all, it’s reasonably book-size and reasonably book-shaped. It has an official-sounding title — and one that, charmingly, betrays a Tales of the City-like solipsism.

On the Lower Frequencies reminds me of Armistead Maupin’s early work in other ways too. Both are emblematic of the times in which they were written. Maupin’s characters fret about sex and identity (mostly sex) while squeezing melons at the Marina Safeway, while Lyle and his friends steal from Safeway and worry where to live next. The threat of eviction hovers over Lyle and his friends like an anvil, and they cope with a campy lightheartedness that is almost Judy Garland-esque. All they really want to do is throw parades, play music, paint murals, drink cheap beer, interview the mayor, and look for ancient steam vents. To achieve those ends, they live on the cheap and squat in building after building, often in the half-second before its conversion into condos (in one case, a wrecking ball almost takes out a few of them.)

None of these are uncommon tropes in punk writing, except for the "interview the mayor" part. The stories around that encounter — and the other interactions that the group has with city government — made me realize how insular and formulaic much zine content can be: interviews with bands x and y, a few squatting and train-hopping stories, and maybe one about hooking up with a girl who has a pet rat. Lyle’s writing is unusual in its intense curiosity about various subcultures and its sheer enthusiasm for discovering how the city does (and doesn’t) work.

Long-time fans of Lyle’s writing should note that virtually everything here has already been self-published, and that more than a little is lost in the transition to placid, even typography. It’s too bad On the Lower Frequencies didn’t get the warts-and-all reprint treatment that Last Gasp gave its Cometbus anthology. This book is for lending. Your earlier copies of Scam, if you have them, are for hoarding. The original format just feels, in some indefinable way, more secret. It’s hard to describe. Let’s just say that it’s the difference between exploring a building you’ve always been interested in under legitimate circumstances, and walking by that same building one night and finding the door unlocked. And that there’s a party going on inside. *


Pixel Vision: an interview with Erick Lyle

Assessing the deal

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› sarah@sfbg.com

Mayor Gavin Newsom stood with San Francisco Labor Council executive director Tim Paulson, flanked by Sup. Sophie Maxwell and representatives from megadeveloper Lennar, the San Francisco Organizing Project, and the Association for Community Organizations for Reform Now (ACORN) May 20 to announce "a historic community benefits agreement."

Lennar had been persuaded to promise more affordable housing and other giveaways in order to win some important new endorsements in their troubled bid to take control of Candlestick and Hunter’s points and cover them with about 10,000 new homes.

"This is a very big deal," Newsom said, plugging the Lennar-financed Prop. G and bashing Sup. Chris Daly for his leadership of the campaign to qualify Prop. F, which would require that half the new units be affordable to households making less than $75,000, a requirement that Lennar casts as a deal breaker.

"Prop. F is a pipe dream that guarantees you only one thing: what you already have," Newsom said. "We have to get the message out what a Trojan horse Prop. F is." Lennar’s top local executive, Kofi Bonner, added that the agreement "enables us to go forward, because now we have new allies."

The Labor Council’s ability to invigorate a campaign makes it an important ally. Yet Lennar’s giveaway of more than it had previously promised and the fact that the agreement comes just two weeks before the June 3 vote seem to indicate that the Prop. G supporters have grown desperate.

Lennar already has spent $3.26 million to promote Prop. G and oppose Prop. F, only to find polls showing Prop. F well ahead despite a campaign that has raised less than $10,000. The weak poll numbers clearly convinced Lennar and its backers in the political power structure that voters would be more likely to support Prop. G if Lennar came up with something that seemed legally binding.

But by supporting a deal that appears to pin down Lennar on levels of housing affordability and community investment, Newsom ironically seems to be validating the concern of Daly and Prop. F’s other backers that Prop. G lacks guarantees on these fronts (see "Promises and reality," 04/23/08).

Not even Newsom could deny that Prop. F’s presence on the political landscape pushed Lennar to seek a community benefits agreement with the Labor Council and ACORN, a group that had been a solid part of Daly’s affordable-housing constituency.

"It probably has," Newsom told the Guardian. "That said, I don’t think Prop. F should suggest the deal is better because of them. Perhaps it’s worse."

Daly dismissed Newsom’s attacks as more attempts to hurt Prop. F’s popularity by trying to attach it to Daly’s personal negatives. Daly also attacked the agreement as overstated in its promises and impossible to enforce.

"I really don’t know if there is any net gain from one deal to the next," Daly said. "And how is it enforceable? We’re not sure anything legally binding is on table now. If there was a development agreement then obviously we would have some surety, as we would if we had a development plan that had cleared the approval process — Lennar’s financial vulnerabilities notwithstanding."

Noting that the city has had "bad luck with big order projects before," Daly recalls how Lennar reneged on building rental units at the Shipyard’s Parcel A, where the developer also failed to properly monitor and control asbestos dust despite promising to do so.

The agreement, which doesn’t include the city or any government agency as a party, is certainly unconventional. But is the deal legally binding? And just who benefits from it?

The CBA purportedly commits Lennar to create 31.86 percent "affordable" housing units in the Bayview, contribute $27 million to provide affordable homes throughout District 10, rebuild the Alice Griffith public housing project, and give down payment and first-time homebuyer assistance on another 3 percent of the homes.

All told, Paulson claims the deal locks in an unprecedented 35 percent affordable housing into Lennar’s mixed-use proposal for the Bayview. The deal also obligates Lennar to invest $8.5 million in workforce development in District 10, hire locally, pay living wages, and allow worker organizing with a card check neutrality policy.

"This legally binding agreement is a way we can insure that our community gets the benefits it needs," said SFOP co-president and longtime Bayview resident Eleanor Williams.

Paulson said May 22 the deal is still being "lawyered up" to ensure its enforceability, and ACORN’s John Eller insists the deal was done with community input. "We have had numerous meetings in which the community was demanding accountability and clear commitments to the workforce and housing, including the possibility of home ownership," Eller told the Guardian.

But Julian Gross, director of the San Francisco–based Community Benefits Law Center, clarifies that the deal only becomes legally binding if Lennar builds a mixed-use project in Bayview/Candlestick Point. "A community benefits agreement gives people a way to work in a coalition," said Gross, who helped negotiate CBAs at Oakland’s Uptown and Oak to Ninth projects, and at Lennar’s development in San Diego’s Ballpark Village in 2005.

Michael Cohen, director of the Mayor’s Office of Economic Workforce and Development, said the city hopes to enter into its own legally binding agreement with Lennar over a mixed-use project by the end of 2009, once environmental reviews on the project are completed.

Given that the project is expected to take 12–15 years to complete, could Lennar change the CBA’s terms after it starts to develop the Bayview? Yes, says Donald Cohen of the San Diego–based Center for Public Policy Initiatives, but only if both sides agree to any changes.

"In a private deal between private parties, those parties can agree to change the terms of the deal at any time," Cohen explained.

That’s significant given the divisions over development within the Labor Council. As Paulson confirmed, the building-trade unions were pushing for outright endorsement of Prop. G and opposition to Prop. F, but he successfully pushed for the negotiations with Lennar, which lasted more than eight weeks and almost broke down several times, Paulson told us.

"I told them, I don’t think that’s where we are coming from because Prop. G doesn’t contain guarantees on affordable housing or jobs," Paulson said of his initial response to Prop. G supporters.

The agreement appears to stretch the definition of "affordable housing," reaching up to those earning 160 percent of area median income, which is essentially market-rate housing for the low-income southeast sector.

Prop. F supporter Alicia Schwartz of People Organized to Win Employment Rights said that what labor’s deal with Lennar means is that only 15.6 percent of the housing will truly be affordable to the folks who currently live in the Bayview. While "3,500 units sounds good," Schwartz observed, "Only 50 percent of them will be for families making 60 percent and less of area median income, while the other 50 percent are for 80 to 160 percent AMI. That means $500,000 condos, which 70 percent of the Bayview can’t afford."

Yet Cohen said it’s understandable that the Labor Council crafted a deal that caters to those with above-average incomes.

"Affordable-housing policies over the last 10 years have tended not to address the needs of many of their members," Cohen said. "Many families make more than $64,000, so they can’t qualify for affordable housing, but don’t make enough to buy. This provides a fantastic and large-scale opportunity to address the problem of the squeezing of the middle class in San Francisco."

Public records obtained from the Mayor’s Office show that prior to this latest deal, Lennar planned to build up to 75 percent market-rate housing at the site, including hundreds of million-dollar townhouses, thousands of high-rise units at $787,483, mid-rise units at $734,400, townhouses at $651,366, and low-rise units at $592,797.

But under the CBA, the top tier of condos that Lennar deems "affordable" cost about the same as the cheapest market rate units it had already planned to build, leaving only 1,566 rental units at rates truly affordable to San Francisco’s low-income workers.

Paulson believes the resulting agreement "ensures that residents, workers, tenants, and future homebuyers have a path to new jobs and housing." He also claims that it is tied to the land, "meaning that it would be transferable to other developers if Lennar pulls out."

Joseph Smooke, executive director of the Bernal Heights Neighborhood Center, said he believes the jobs agreements labor negotiated are good. "It’s the housing stuff where they gave away the store," Smooke said. "Why didn’t they stick to the jobs piece and support Prop. F?"

Pointing to the Board of Supervisors’ passage of policy saying that 64 percent of housing in eastern neighborhoods should be targeted at 80 percent of AMI and below, Smooke added, "There are ways to make 50 percent affordable work. This is free land. It’s not rocket science. But is it city policy to protect a developer’s stated desire for 18 to 22 percent profit?"

Meanwhile, Schwartz hopes SFOP and ACORN are being accountable to their base of low-income workers. "Lennar would like to tell you that if Prop. G doesn’t pass, nothing happens. But in reality, the community’s plan stays, plus now there is a 50 percent affordable-housing requirement," Schwartz said. "That’s a win-win."

"For Newsom and Lennar to say that Prop. F is a poison pill — the irony is not lost on the Bayview," Schwartz added, recalling the city’s failure to hold Lennar accountable for its promises and misdeeds. "We’re looking to change the way business is done in San Francisco." *