Mayor

Going to a club — or boarding an airplane?

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news@sfbg.com

The War on Fun — a term coined by the Guardian in 2006 to describe the crackdowns on nightclubs, special events, and urban culture by police, NIMBY neighbors, and moderate politicians — continues to grind on in San Francisco.

The latest attack was launched by Mayor Gavin Newsom and the San Francisco Police Department, which has proposed a series of measures to monitor and regulate individuals who visit bars or entertainment venues, proposals that the embattled Entertainment Commission will consider at its Dec. 14 meeting.

Perhaps most controversial among the dozens of new conditions that the SFPD would require of nightclubs is an Orwellian proposal to require all clubs with an occupancy of 100 persons or more to electronically scan every patron’s identification card and retain that information for 15 days. Civil libertarians and many club owners call this a blatantly unconstitutional invasion of privacy.

Driving the latest calls for a crackdown is a stated concern over isolated incidents of violence outside a few nightclubs in recent years, something Newsom and police blame on the clubs and that they say warrants greater scrutiny by police and city regulators.

But the proposals also come in the wake of overzealous policing of nightclubs and parties — including improper personal property destruction and seizures, wrongful arrests and violence by police, harassment of disfavored club operators, and even dumping booze down the drain — mostly led by SFPD Officer Larry Bertrand and his former partner, Michelle Ott, an agent with the California Department of Alcoholic Beverage Control.

Those actions were documented in back-to-back cover stories by the Guardian (“The New War on Fun,” March 24) and SF Weekly (“Turning the Tables,” March 17), and they are the subject of multiple ongoing lawsuits by nightclub owners, patrons, and employees, including a racketeering lawsuit alleging that officials are criminally conspiring against lawful activities.

Yet rather than atoning for that enforcement overreach, Newsom and SFPD officials seem to be doubling down on their bets that San Franciscans will tolerate a more heavily policed nightlife scene in the hopes of eliminating the possibility of random violence.

A series of nighttime shootings this year has grabbed headlines and prompted calls to action by the Mayor’s Office and Board of Supervisors President David Chiu, whose District 3 includes North Beach. In February, there were shootings at Blue Macaw in the Mission and Club Suede at Fisherman’s Wharf, followed by a shooting at the Pink Saturday fair in June, one outside Jelly’s in SoMa in July, and the high-profile murder of a German tourist near Union Square in August.

Chiu responded with legislation to give the Entertainment Commission greater authority to close down problem nightclubs and, more recently, with legislation to require party promoters to register with the city so that officials can take actions against those who act irresponsibly.

In September, Newsom asked the SFPD for its recommendations and he received a laundry list of proposals now before the Entertainment Commission. That body held a closed session hearing Nov. 30 to discuss a confidential legal opinion by the City Attorney’s Office on whether the identification scan would pass constitutional muster, an opinion that has so far been denied to the Guardian and the public, although officials say it may be discussed in open session during the Dec. 14 hearing.

“Everything is being considered,” Jocelyn Kane, acting executive director of the Entertainment Commission, told the Guardian. Her office already has looked at the different types of scanners that clubs could use and has discussed the idea with several technology companies.

SFPD Inspector Dave Falzon, the department’s liaison to the nightclubs and ABC, told the Guardian that he believes the data gathered from nightclub patrons would allow police to more easily find witnesses and suspects to solve any crimes committed at or near the nightclubs.

“It’s not intended to be exploited,” Falzon said, stressing that the recommendations are a work in progress and part of an ongoing dialogue with the Entertainment Commission — an agency Newsom, SFPD officials, and some media voices have been highly critical of over the last two years.

Along with the proposal for the ID scanners, SFPD proposed many other measures such as increased security personnel (including requiring clubs to hire more so-called 10-B officers, or SFPD officials on overtime wages), metal detectors at club entrances, surveillance cameras at the entrances and exits, and extra lighting on the exterior of the night clubs.

Though this may sound to many like heading down the dystopian rabbit hole with Big Brother potentially watching your every move, Falzon thinks it’s the opposite. “It isn’t that police department is acting as a militant state,” Falzon said. “All we’re trying to do is to make these clubs safer so they can be more fun.”

Yet critics of the proposals don’t think they sound like much fun at all, and fear that employing such overzealous policing tools will hurt one of San Francisco’s most vital economic sectors while doing little to make anyone safer.

Jamie Zawinski is the owner of the DNA Lounge, which recently celebrated its 25th anniversary. He has been a leading voice in pushing back against the War of Fun, including running a blog that chronicles SFPD excesses. He said the proposed regulations go way too far.

“It’s gang violence happening on the street. The nightclubs are being scapegoated. You don’t solve the problem by increased security in the clubs,” Zawinski told us, adding that the lack of proper policing on the streets should be addressed before putting the financial strain on the entertainment industry.

“It’s ridiculously insulting. I will not do that to my customers. It’s not a way to solve any problems,” Zawinski said. “It sets the tone for the evening when you start demanding papers.”

It’s also a gross violation of people’s rights, says Nicole Ozer, the director of Technology and Civil Liberties Policy for the American Civil Liberties Union of Northern California. She said that recording people’s personal information when they enter a public venue raises troubling legal issues.

“There are some real implications of tracking and monitoring personal data. The details of what you visit reveal things about your sexuality and political views,” Ozer said, adding that the ACLU would also have issues with how that information is used and safeguarded.

In response to police crackdowns on nightlife, club owners and advocates earlier this year formed the California Music and Culture Association (CMAC) to advocate for nightlife and offer advice and legal assistance to members. CMAC officials say they are concerned about the latest proposals.

“The rise in violence has to be looked at from a societal point of view,” said Sean Manchester, president of CMAC and owner of the nightclub Mighty. He noted that most of the violence that has been associated with nightclubs took place in alleys and parking lots away from the bars and involved underage perpetrators. “In many instances [the increased security measures] wouldn’t have done anything to stop it,” he said.

While there are plenty of ideas to combat crime at nightclubs, nightlife advocates say the city is going to have to look beyond club venues to address what can be done to combat crime without infringing on any civil liberties or damaging the vibrant nightlife. Or officials can just listens to the cops, act on their fears, and make the experience of seeing live music in San Francisco more like boarding an airplane.

The Entertainment Commission meets Dec. 14 at 6:30 p.m., Room 400, City Hall.

The class of 2010

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In about a month, the first class of district-elected supervisors since the 1970s will be gone, termed out, done with the transformative politics they brought to San Francisco. It’s a milestone worth marking: in 2000, when the city returned to district elections, everything changed. Machine-driven politics, controlled by money and mayoral power, vanished almost overnight. Constituencies that were virtually shut out of the corridors of power — tenants, labor, environmentalists, economic progressives, public power activists, the list goes on — suddenly had a seat at the table. Neighborhood issues started to matter. And downtown power brokers were no longer the only game in town.

But term limits mean that none of the members of the class of 2000 can remain in office beyond Jan. 8, 2011; and along with the new members elected two years ago, the class of 2010 will feature four new faces. It’s a diverse group. Two (Malia Cohen and Mark Farrell) have never before run for, much less held, elective office. One (Jane Kim) is Asian, one (Cohen) is African American, one (Scott Wiener) is gay. Farrell, who will replace Michela Alioto-Pier in District 2, is the only straight white guy. (Carmen Chu was reelected from District 4).

Overall, it’s safe to say, the ideological balance of the board hasn’t changed much — but the political approaches will be very different. In 2000, the election was all about then-Mayor Willie Brown, about fighting (or appeasing) the Brown Machine. This group of candidates didn’t run against anything in particular — and with the balkanized nature of local politics, they all have divergent bases of support.

So we sat down with the Class of 2010 and asked them to tell us what they plan to do with the next four years. Two trends emerged: all of the new supervisors want to be seen as independent of any political operation. And most have no clear agenda whatsoever for addressing the biggest problem facing the city — a looming budget deficit that will define almost everything they do in their first year.

At a moment of major fiscal crisis and political change, these four people will on center stage — and what they do could determine both the direction of the city and the hopes of the progressive movement. Click below for our exclusive interviews and profiles:

>>CLASS OF 2010: MARK FARRELL

>>CLASS OF 2010: MALIA COHEN

>>CLASS OF 2010: SCOTT WIENER

>>CLASS OF 2010: JANE KIM


Supervisors punt mayoral decision back a week

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The San Francisco Board of Supervisors today voted to delay until Dec. 14 the process of choosing a mayor to succeed departing Mayor Gavin Newsom after taking about 40 minutes worth of public testimony, most of it calling on supervisors to act quickly to choose a public-spirited mayor to deal with a variety of neglected issues.
After Assembly member Tom Ammiano announced earlier today that he would not accept the board’s nomination to become mayor, it seemed unlikely that anyone could get the required six votes. But Sup. Chris Daly, who led the campaign to recruite Ammiano, argued for beginning the process today as agendized.
“While the Board of Supervisors is not prepared today to appoint someone as successor mayor of San Francisco, we shouldn’t truncate the conversation,” Daly argued, reiterating his call last week for a mayor who is experienced, compassionate, and willing to work cooperatively with the board.
But Sup. Sophie Maxwell didn’t want to have that conversation, making the motion to continue the item for one week, a motion seconded by Sup. Bevan Dufty. Neither offered reasons or arguments for the action.
Yet Daly noted that the board has an approved process for selecting a new mayor and “it might be a good idea to try it out and see how it works,” even if six votes aren’t there yet to approve a nominee. “I’m prepared to make a nomination.”
He addressed calls for delaying the mayoral succession decision by noting that Oakland Mayor-elect Jean Quan and Governor-elect Jerry Brown have both put together transition teams to prepare for taking power at the same time that Newsom will resign as mayor to become lieutenant governor.
“Typically, a mayor would have had about a month to put together a transition team,” Daly said, also noting, “We are now borrowing time against the next administration of San Francisco.”
Sups. David Campos and Eric Mar also spoke in support of this board making the mayoral succession decision “sooner rather than later,” as Campos put it. “We do have a very tough budget year we will be facing and many challenges in front of us,” he said. Campos said he was open to the delay, but he said “it would be a mistake” not to begin dealing with the decision in earnest next week.
Mar said he was open to the delay because he was interested to read the “Values-based Platform for the next Mayor” that a coalition of labor and progressive groups called San Francisco for All distributed at the meeting. The four-page document called for a mayor to value accessibility, consensus-building, making appointments who are accountable to the community, more equitable budget priorities, and transparency.
The motion to delay was approved on a 9-2 vote, with Daly in Sup. John Avalos in dissent.

EDITORIAL: No PG&E caretaker

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We’ve made it clear in several editorials that the Board of Supervisors would be wasting a great opportunity and making a political mistake by choosing a mayor who vows to serve only as a “caretaker” and not run in the fall. A caretaker would lack the authority to make the significant changes that are needed at City Hall — and a vow not to run again would deprive the voters of the right to choose the next chief executive of the city. What would happen if the interim mayor did a great job? What if the so-called caretaker turns out to be the perfect person to continue on in the role?

But the real danger is that the board might choose a caretaker who not only continues the dangerous and divisive policies of Mayor Gavin Newsom, but sends the city in the wrong direction on the key decisions that will come up in the next 12 months.

The budget crisis is going to be the central concern of both the mayor and the supervisors, but there’s plenty more on the agenda. For example, the city will be moving next year to implement community choice aggregation — and since Pacific Gas and Electric Co. fought bitterly (and apparently illegally) to block Marin County from implementing a similar program, the next mayor needs to be prepared to fight PG&E vigorously. So anyone who lacks a record of taking on PG&E, or is weak on CCA, should be disqualified.

There will be a significant number of commission appointments coming up — and since the members of some panels serve at the mayor’s pleasure, and other commissioners often resign to give a new mayor the chance to put his or her own people in charge, the next mayor can remake city government on a larger level. We just saw, in the atrocious vote to evict the Haight Ashbury Neighborhood Council’s recycling center, how badly the Recreation and Park Commission functions. The Public Utilities Commission has dragged its feet on CCA. The Port and Airports Commission need new blood. And quite a few department heads should be replaced. Anyone serving in the Mayor’s Office next year needs to be willing to make those moves.

A bad caretaker could do real, lasting damage to the city; allowing PG&E to torpedo CCA would set progressive energy policy back a decade. Let’s remember, the progressives have six votes on the board; if they’re unable to agree on a longer-term replacement and want a caretaker, that person needs to have strong progressive, anti-PG&E credentials. Otherwise San Franciscans will be regretting the decision for a long time to come

Mayor? Ammiano says no thanks

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Assemblymember Tom Ammiano made it official today, Dec. 7th — despite the efforts of Sup. Chris Daly and others to get him to serve as the city’s interim mayor, he’s declining. I just got the official statement:


I sincerely appreciate and understand the recent public efforts asking that I seek the nomination for interim mayor when Mayor Newsom steps down in January to become Lt. Governor but I must respectfully decline any nomination from the Board of Supervisors.


I was sworn in yesterday for my second term in the California State Assembly and I believe that the same strong progressive values that have inspired my twenty years as an elected official are needed now more than ever in the State Capitol.  One of the weaknesses of our current state government is a lack of true investment in the various elected offices due to the revolving door syndrome caused by term limits but I am committed to finishing the work that I have begun in Sacramento, including reforming our antiquated marijuana laws, closing the corporate loopholes in Proposition 13, ensuring adequate funding for the on-going battle against AIDS and continuing the struggle for equal rights for our LGBT community.


Since the board meets this afternoon to start the process of choosing a new mayor, Ammiano clearly wants to be sure that his name isn’t placed into nomination — a move that would force his many allies and supporters on the board either to vote against him (a potential show of disrespect for a man who many see as the father of the modern progressive movement in San Francisco) for vote for him (and push him toward a job he doesn’t want).


I don’t know if Daly will still nominate Ammiano; he was quoted today in the Bay Citizen saying that Ammiano “knows the gravity of the situation … I think if he has to opportunity to let that sink in a bit he might change his mind.” But I do know that Ammiano isn’t happy about being pushed by Daly, and would like to get his name out of the mix and move on.


So with all due respect to the many folks I know who want to encourage Tom (and I personally think he’d be a great mayor), he’s made his decision, and we have to respect that.

Legal fight brewing over HANC Recycling Center eviction

The Haight Ashbury Neighborhood Council (HANC) Recycling Center, located at the Kezar Triangle in Golden Gate Park, received a 90-day eviction notice following a Dec. 2 Recreation and Park Commission meeting approving plans for a community garden in its current location. However, tenant lawyer Robert De Vries, who is representing HANC, submitted in a Dec. 2 letter to Rec & Park Commissioners that HANC could not legally be made to vacate until the end of June.

The eviction has prompted an outcry from progressive groups, environmental organizations, and other HANC supporters, who turned out en masse at the Dec. 2 meeting and voiced strong disapproval over the proposal. It now appears that the issue may wind up in court.

“HANC has no intention of vacating the premises any earlier than legally required,” De Vries wrote to Rec & Park Commissioners. “HANC is also not willing to allow disruptive construction work or other activities to go forward on the leased property while it is in possession.”

In an earlier memo to Rec & Park Commissioners, city staff proposed issuing HANC a 30-day eviction notice, which would have ousted the recycling center by the end of December. That timing was significant, because it would have occurred under the administration of Mayor Gavin Newsom, a proponent of the eviction, who will vacate office Jan. 8 to be sworn in as Lieutenant Governor. Citing advice from the San Francisco City Attorney, the memo noted that Rec & Park could proceed with a 30-day eviction without commission approval.

But that initial advice was erroneous, City Attorney spokesperson Matt Dorsey told the Guardian, because it did not take into account HANC’s quarterly rental payments. Since the organization pays rent once every 90 days, instead of once a month, it cannot be evicted with just 30 days notice, according to state law. Once it was informed of HANC’s quarterly payments (by city staff, not De Vries’ letter, Dorsey said), the City Attorney advised Rec & Park that it should extend the eviction notice to 90 days.

The extra 60 days doesn’t just buy HANC time, it gives them hope. Newsom will be in Sacramento by then, and it’s possible that he could be replaced with an interim mayor who’s sympathetic to their cause.

De Vries, however, contends that 90 days is still too soon, and that HANC can’t legally be evicted until June 30, 2011. HANC’s original five-year, fixed-term lease ended on June 30, 2001. Since then, it’s been paying rent to the city every 90 days. De Vries wrote that under state law, this arrangement means that “the lease is automatically renewed” for one year, and that it’s renewed annually since 2001. California courts have found that “a tenancy from year to year is created where a tenant holds over after the expiration of a former lease for one or more years and pays rent,” De Vries wrote in his letter. His analysis is based on his reading of California Civil Code Section 1945.

“I don’t really see any other interpretation, frankly,” De Vries told the Guardian. In his view, by issuing a 90-day notice, “they’re putting something into the statute that isn’t there.”

The City Attorney’s office rejects De Vries’ analysis, and insists that the eviction notice is legal. “The lease does not expire on June 30,” Dorsey said, “and Rec & Park delivered a proper notice of termination.”

If this dispute winds up in court, it’s possible that the question won’t be settled until June of 2011 anyhow.

Rec & Park trashes HANC Recycling Center

At yesterday’s Recreation & Park Commission meeting on Dec. 2, hundreds of San Francisco residents turned out to urge commissioners not to replace the Haight Ashbury Neighborhood Council (HANC) Recycling Center with a community garden. Their pleas fell on deaf ears.

It didn’t matter that a sunnier spot for a community garden had already been identified in the same area, with funding approved by the commission more than a year ago. It didn’t matter that thousands of people use the recycling center every month, and that the nonprofit bolsters community gardens throughout the city with donations and funding. It didn’t matter that we’re in a recession and there were jobs on the line. It didn’t matter that HANC pays rent to a city department facing a $12.5 million deficit, but the community garden would cost $250,000.

All that mattered in the end was that Rec & Park, and Mayor Gavin Newsom, wanted the HANC recycling center out. They thought removing it might discourage homeless people from sleeping in the park and hanging around the neighborhood. After nearly four hours of listening to residents urge them not to do it, the commissioners yawned and pushed the eject button. They unanimously voted in favor of the community garden. A 90-day eviction notice is expected to go out to HANC today.

The fight over HANC’s eviction has been described as a political battle between progressives and moderates, a showdown between heroes who stand up for public safety versus intimidating thugs and the lefties who enable them, and even a sequel to the sit /lie controversy. I think there’s an 800-pound gorilla sitting in the middle of this fight that no one wants to talk about: Class.

Community gardens are wonderfully empowering. I used to volunteer at one at a public housing complex in North Carolina. It was especially important for people who lived in that low-income community, since they benefited from nutritious produce that also lowered their grocery bills. Under the city’s plan for this new, gated community garden, 30 of the 40 garden plots will go to area residents. Given the affluence of that neighborhood, the garden beds will likely go to people who can afford organic groceries at Whole Foods without breaking into a sweat. For well-to-do San Franciscans, growing produce is not a means of survival — it’s about feeling good, and being green. By itself, there’s nothing wrong with that.

The problem is that it will be installed at the expense of a long-standing community resource that employs 10 people and lightens the load for hundreds of others during a recession, when people are truly struggling to get by. The Rec & Park Commission has essentially decided that this parcel of public space should be taken from a nonprofit that benefits people of all classes, and given to a small number of residents who’ve voiced complaints about “quality-of-life issues.”

In its current function, the HANC Recycling Center is empowering to many different kinds of people. Most aren’t homeless. Tough-as-nails Asian grandmas show up with bags full of cans that they can exchange for some extra spending money. Urban gardeners purchase native plants in hopes of pleasing native insects and birds. People on fixed incomes get a small financial boost by turning in recyclables.

A small number of the HANC Recycling Center patrons do sleep outside. In order to earn small amounts of cash for things like food, many of them have to go digging around in garbage cans, which is gross and humiliating. Why would someone paw through the garbage for hours, battling bees and germs, and then haul smelly bottles uphill in a shopping cart just to make a few bucks? My guess is that it’s to ward off desperation. They make their own work, and they get to eat.

“Some of them may use drugs,” one of the speakers acknowledged last night. “But,” he paused for dramatic effect. “Some of us use drugs, too.”

When sit / lie was under debate, critics wondered where the homeless were supposed to go, if they couldn’t sit on the sidewalks. Often, the reply was that they could go to the parks. But this latest attack on the homeless shows that they aren’t welcome there, either.

This is an opinion piece.

Tax breaks we can’t afford

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The big front-page headline on today’s Examiner: “Workers we can’t afford.” It’s a classic story of the Ex genre, a look at how much labor costs are increasing and eating a hole in the city budget. But what gets me is thal it’s not just the Ex; the Chron takes this line, too, and so do news outlets all over the state (and all over the country). The problem is always labor.


You never see a big headline telling the other side of the story: “Tax breaks we can’t afford.”


The thing is, tax cuts and tax breaks are expenses, just like labor costs. The impact the budget in the same way. And at least city workers DO something; a lot of the tax cuts don’t.


I was watching the City Channel last night (yes, Mr. Mayor, I was one of the “ten people” you joked about who were actually watching) and Newsom was giving a speech out at Mission Bay, welcoming a new biotech outfit to the city. And he went on and on about how his administration has attracted all these companies by giving them tax breaks.


He said that, unlike South San Francisco, this city “taxes jobs.” (That’s just silly; we have a payroll tax because you have to have some form of business tax, and the state won’t let us tax corporate income, and a gross receipts tax also has problems, and a payroll tax is at least an approximation of the size of a company. If we taxed gross receipts instead he’d complain that we were “taxing success.”)


And then when he was done with his prattle, the guy from UC who sets up the Mission Bay incubator space for biotech businesses spoke, and talked about all the reasons busineses want to move into the area, mainly the direct connection with UC researchers and experts in business development and the quality of the workforce. He didn’t say a word about taxes.


Because taxes, particularly the very modest payroll tax the city charges, are such a minor factor in business location decisions that tax breaks like Newsom’s don’t do much good in attracting employers. But they do cost the city money.


And those are expenses — yes, expenses — that we can’t afford.


 

EDITORIAL: Save the HANC recycling center

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The foes of the Haight Ashbury Neighborhood Council recycling center — including the mayor and Rec-Park Director Phil Ginsberg, who desperately want to get the low-income riff-raff who sell cans and bottles for a living out of the Haight and Inner Sunset — pulled out all the stops Dec 2, dragging good ol’ Chuck Nevius, who’s always ready to stand up for what isw clean and well-manicured and free of urban grit, into the fight. The Nevius column in the Chron is almost too perfect; he describes the center as “a noisy, ugly industrial plant” that doesn’t belong in Golden Gate Park. Well, the center is technically in the park, I suppose, but it’s not exactly smack amid Speedway Meadow or the Arboretum; it’s way off on the edge, in an area that most people don’t even think of as the park.

But see, here’s the real issue:

It is a magnet for the down and out, some of whom use the can and bottle payout as an ATM for booze and drugs, and even raid the neighborhood bins to fill their carts.

Imagine: A magnet for the “down and out” in the Haight. Imagine: A way for people to make some money without panhandling (which Nevius dislikes) or hassling tourists (which Nevius dislikes) or selling drugs (which Nevius dislikes) or stealing (which all of us dislike). Imagine: A community-run institution that actually creates green jobs for people who might otherwise be homeless (and doing things that Chuck Nevius dislikes).

The real issue is that the mayor never liked HANC (since he lives in the Haight, he ought to stop by a HANC meeting sometime; it’s really not that scary) and doesn’t like the idea of homeless people congregating around the recycling center, and would just as soon get rid of anything that doesn’t fit his vision of a squeaky clean, fully gentrified city.

And it’s not as if Ginsberg wants to restore that corner of the park to native flora; it will be, in his vision, a community gardening center. Nice, but not exactly a natural space. The new center would also attract small crowds — but of a very different demographic. Which, again, is what this is all about.

The HANC recycling center does everything that Gavin Newsom claims to support. It provides green jobs. It offers employment opportunities for people who are on the margins of society, and lets them get back on their feet — without a penny of taxpayer money. It promotes recycling and sound urban ecology.

The private company that collects our garbage and recycling, which is called Recology, doesn’t like the fact that poor people go around and collect cans and bottles from the blue bins on the sidewalk; the stuff is worth money, and the company would rather keep it. But in the end, the material goes to the same place and stays out of the landfills, which ought to be the point. And honestly, isn’t scavenging and recycling cans and bottles a better occupation than agressive panhandling and crime?

The center’s a bargain for San Francisco, and the personal peeves and suburban sensibilities of Newsom, Ginsberg and Nevius shouldn’t shut it down. The Recreation and Parks Commission should direct Ginsberg to back off on eviction proceedings and let the center stay.

 

 

Let’s play the “local hire” numbers game

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There’s been a lot of discussion at City Hall about the pressing need for mandatory local hire legislation, as opposed to San Francisco’s current “good faith” efforts. And it seems that everyone agrees upon is that something needs to be done, as the Board prepares to vote December 7 on Sup. John Avalos’ local hire proposal, which seeks to ensure that 50 percent of workers hired on city-funded construction projects will be local residents.
The move comes at a time of high unemployment in the recession-hit construction industry, but would kick in as San Francisco stands poised to spend $27 billion on public works projects over the next decade.
‘The city needs to leverage its funding position to ensure that our residents benefit from these investments,” Avalos said at a Dec. 1 committee hearing on his legislation, which would require 25 percent of hours on city-funded construction projects, to be worked by local residents in the first year. This rate would rise 5 percent each year to 50 percent.
It would also require 50 percent of apprentice hours to be worked by local residents in the first year (with out-of-state workers exempt from these requirements).

These requirements currently apply to each individual construction trade (carpenters, painters, laborers, operators, brick masons, plasterers) and not to overall project hours.

The city would pay incentive bonuses to contractors that exceed the requirements.
Contractors who failed to meet the requirements would have the option of paying liquidated damages to the city, or sponsoring apprentices during the project.

But a December 1 report from Ted Egan, the city’s chief economist, estimates the legislation would raise the city’s contracting costs by $9.3 million per year, while creating 350 jobs.
 
Egan breaks down the city’s estimated $9.3 million in contracting and administrative costs into three distinct piles: $2 million in higher bid costs from hiring the unemployed, $4.5 million in higher bid costs from hiring the already unemployed, and $2.8 million in higher costs associated with penalties.

‘This cost represents approximately 1 percent of the city’s $934 million estimated annual spending on covered projects,” Egan noted, adding that the cost to the city will be lower in early years, because unemployment is high now and labor is widely available.

“This is a conservative estimate,” Egan added, “as it assumes no contractor exceeds the target and receives incentive bonuses from the city, and also excludes any contractor productivity losses caused by breaking up core crews.”

Egan acknowledges that most city expenses are associated with inflated contractor bids.
“These will occur because the local supply of skilled trades workers is insufficient to meet the local hiring requirements of the legislation,” he observed. “Contractors will be forced to pay above-the-market wages to workers that already have jobs, and pay the city penalties because resident labor is unavailable in many trades. These costs will be passed on to the city. This excess cost to the city could largely be mitigated by choosing local hiring targets that better reflect local supply.”

“The legislation will increase local employment and associated spending at local businesses, at the cost of higher City contracting costs,” Egan warned. “The legislation creates a net spending and jobs benefit, as written; with recommended mitigations, the positive economic impact can increase, and the cost to the city can decline.”

Egan calculated that estimated costs to the city could be reduced to $2.4 million, if Avalos’ proposed legislation is amended in the following ways:

1.    Replace across-the-board 50 percent mandatory requirements with trade-specific mandates to reflect “supply and demand in each trade.”
Egan argues that across-the-board requirement would lead to higher contracting costs “for several trades where required demand exceeds current supply.”
These impacted occupations include operators, brick masons and plasterers, and represent 50 percent of projected demand for city projects, over the next ten years, Egan said.
“Other occupations, such as carpenters, painters, laborers, and drivers are less impacted and can sustain the scheduled mandate, provided goals are set on an industry-wide and not a project-by-project basis,” Egan stated.

2.    Require a study every two years “to modify requirements and assess progress to a 50 percent mandatory requirement.”
Egan’s report suggests that the city conduct a review for two years, and then set mandatory participation levels for two years for brick masons, block masons, stone masons, cement masons, carpet, floor and tile installers and finishers, concrete finishers and terrazzo workers, construction equipment operators (except paving, surfacing and tamping equipment operators), drywall installers, ceiling tile installers and tapers, electricians, pipe layers, plumbers, pipe fitters and steam fitters, plasterers, stucco masons, roofers and sheet metal workers.
Egan’s proposal is that the city assess the length of time required for each of these trades to develop a pool of qualified resident workers to support a 50 percent local hire mandate, and then, if necessary, propose amendments to the mandatory levels for these trades.

3.    Allow contractors to transfer credit hours
Egan suggests that contractors and sub-contractors could accumulate credit for hiring local residents on non-City funded projects, transfer those accumulated credit hours to other contractors, and apply those credit hours to contracts for covered projects to meet the applicable minimum mandatory hiring requirements, or work off assessed liquidated damages. “Transferred credit hours may only be applied against mandatory hiring requirements for the trade in which they were accumulated,” Egan’s report states.

4.    Eliminate incentive payments
Egan recommends eliminating incentive payments, “since the ability to transfer accumulated credit hours provides a similar, and more efficient, incentive for contractors to exceed targets.”

Egan notes that his analysis assumes that annual public works spending is equal to the 10-year average in the city’s capital plan, which is $3.1 billion.
“60 percent of that will be spent on projects not covered by the legislation, because they are state- or federal-funded,” Egan stated.

He predicts that unemployment in the trades will average 10 percent in the next decade.
“Current unemployment in construction is 20 percent in San Francisco,” Egan said.

Egan argued that allowing contractors that exceed local hire requirements to transfer the additional hours, within a trade, to other contractors “would allow the same local hiring targets to be met on an industry-wide basis, not a project-by-project basis.”

He also recommended eliminating proposed incentive payments.
‘Giving contractors the ability to sell their excess hours creates a private incentive to exceed hiring targets. Contractors which do not meet the local hire requirements will compensate those that do,’ Egan wrote.

But at a Dec. 1 hearing by the Board’s Budget and Finance committee, not everyone agreed with Egan’s findings.

Missing from his “economic costs” equation, some speakers observed, were estimated savings from reduced law enforcement costs and poverty rates, if residents got jobs.
Egan acknowledged that his report does not factor in socio-economic benefits of the plan.
‘It’s a very fair point, but it’s hard to quantify,” Egan told the Guardian.

And while Avalos’ legislation proposes to phase in the local hiring mandate over the course of six years, Egan’s report simply focuses on costs when the city hits 50 percent.

Egan said he could have broken down his report into a phased-in, year by year, basis.
“But it gives the impression of greater certainty,” Egan said, noting that it’s not clear how much the city is going to spend on construction next year. “So, given what we’re planning to spend over the next 10 years, here’s an average estimate,” he explained.

I asked Egan about his report’s claim that there is a 20 percent unemployment rate in the construction industry in San Francisco, given that other city officials, including Mayor Gavin Newsom and Sup. John Avalos, have cited a 40 percent rate.

“The 2009 census figures came out in November and it said that 20 percent of San Francisco residents who are in construction say they are unemployed,” Egan said.

He acknowledged that the 40 percent unemployment rate that Newsom and Avalos cited likely refers to unemployment among folks who work in San Francisco’s construction industry, but live outside the city, where housing prices are cheaper.

Asked if his office was recommending that the local hire percentage start at 20 percent, as some building trades requested during the Budget Committee hearing on Avalos’ proposal Egan indicated this was not the case.
“We don’t see a problem in year one,” Egan explained. “There are a lot of unemployed people in year one that are available, so that target is not hard to meet.

The main problem, to Egan’s mind, was not the mandatory 50 percent local hiring goal, per se, but the requirement that it be achieved by every individual trade.
“That’s why we recommend doing a process every two years to take a look at how good a job individual trades are doing, and then set targets based on the rates of producing a supply of qualified workers,” he said.

“Some won’t take seven years to achieve a 50 percent rate, but others could take much longer,” Egan explained. ‘Otherwise, contractors, will have to raise bids so they can afford to pull qualified workers off other contracts. That would lead to shuffling people around, and the city paying for it, without new people being trained.”

So, that’s where the conversation seems to be headed going into Tuesday’s Board meeting, with the building trades still pushing for amendments, and Avalos, the chief sponsor of the legislation, reportedly trying to win support from Sup. Bevan Dufty, so that he can pass veto-proof legislation before the end of the month. Stay tuned.

Newsom and downtown groups court Cohen

18

A rogue’s gallery of downtown power brokers and moderate politicians is lining up to give D10 supervisor-elect Malia Cohen money during a fundraiser at Democratic Party money man Wade Randlett’s house tonight (Wed/1). And while the group may be trying to buy the support of a candidate they didn’t support in the election, Cohen and some of her progressive supporters say she’s been open to developing relationships across the ideological spectrum.

“Fear not,” Cohen told us when we raised an eyebrow at the host committee, and she noted that most of those on the list didn’t endorse her candidacy. “It is a fundraiser event, and now that I’m a newly elected supervisor, I look forward to meeting everyone.”

The guest list includes Mayor Gavin Newsom, former Mayor Willie Brown, Sup. Sean Elsbernd, Assembly member Fiona Ma, Building Owners and Managers Association director Ken Cleaveland, lobbyist Sam Lauter, Brook Turner with Coalition for Better Housing, Kevin Westlye of Golden Gate Restaurant Association, Janan New of San Francisco Apartment Association, as well as building trades head Michael Theriault and Tim Paulson of the San Francisco Labor Council.

“That’s not my perception of it,” Randlett – who used to run the downtown political organization SFSOS – told us when we asked about downtown’s attempt to buy influence with a candidate who finished the campaign about $20,000 in debt. He also rejected the characterization that it was a high-roller event, noting that prices initially listed at $100-$500 have since been lowered to $50. “Anyone who wants to attend at any price is welcome,” he said.

“I think it’s smart of their part, because they didn’t support her in the election, to try to give her money in the end,” said Gabriel Haaland of SEIU Local 1021, which did endorse Cohen. “It remains to be seen where she’s going to land [politically], but it seems clear what this group is attempting to do, to influence her votes.”

Cohen also received endorsements from the San Francisco Democratic County Central Committee, its Chair Aaron Peskin, and Board of Supervisors President David Chiu, who says he isn’t concerned about the Randlett fundraiser. “I understand that she has been celebrating with people from across the ideological spectrum,” Chiu said.

Indeed, Cohen said she is anxious to get to know representatives of San Francisco constituencies across the spectrum, borrowing a line from Shirley Chisholm, the first African-American women elected to Congress, in calling herself “unbought and unbossed.” Cohen said, “I will do a great job representing everyone. I will protect the interests of District 10 residents.”

Randlett, who flamed out with SFSOS before reviving his standing as a top-tier Democratic Party fundraiser by being an early backer of Barack Obama’s presidential bid, told us that was a connection he shares with Cohen. “The only reason I supported Malia from the beginning and am hosting the event for her is that like me she was there for Barack from Springfield through election night, never wavered in her support for him, and continues to stick by him now, when fair weather friends are carping from the sidelines,” Randlett told us.

Paulson told us that Cohen asked him to co-host a fundraiser with Newsom – who Cohen once worked for although he didn’t support her in this election – and that he didn’t see the complete roster until a couple days ago. “I am surprised there was this list,” Paulson said of the groups that regularly oppose progressive candidates and legislation.

But Haaland said that labor and the left will also be reaching out to Cohen, whose lack of a strong ideological grounding and representation of a district slated for the city’s most ambitious redevelopment plans will make her a pivotal vote on the new board. “We have to do our best to reach out to her as well,” Haaland said.

 

The process begins

0

steve@sfbg.com

The Board of Supervisors has unanimously adopted a set of procedures for choosing a new mayor to replace Gavin Newsom when he becomes California’s lieutenant governor on Jan. 3. The board is scheduled to formally begin the mayoral selection process Dec. 7 with a discussion of what people want in a new mayor and perhaps even the first votes on nominees for the office.

If the process of approving a process was any indicator, choosing a new mayor won’t be easy. Just sorting out how supervisors will vote on nominees, which the board spent hours doing Nov. 23, illustrated the complex political dynamics and potential for parliamentary gamesmanship at play on a body with a deep ideological divide.

Progressives are on the dominant side of that divide, with Sups. John Avalos, David Campos, David Chiu, Chris Daly, Eric Mar, and Ross Mirkarimi sticking together on a pair of 6-5 procedural votes that sought to dilute their voting power, an effort led by Sup. Sean Elsbernd and supported by his moderate colleagues.

Both sides accused the other of playing games with this all-important process, but the greatest complicating factor seems to be the California Political Reform Act and related conflict-of-interests case law. Because the mayor is paid more than supervisors, board members are barred from doing anything to influence the process to become the new mayor.

That means they can’t publicly voice a desire to become mayor or lobby colleagues for votes. And once supervisors have been nominated to be mayor and they accept that nomination, they must immediately leave the room and be sequestered incommunicado until they decide to withdraw their nominations and participate in the process, after which they may not be renominated.

But the newly adopted details of exactly how that process plays out — including when the vote is called on each nominee, how it is taken, and in what order — will determine if any nominees can get the six votes they need to serve as mayor for the final year of Newsom’s term.

If the current board can’t do it, then the newly elected board — which has an ideological breakdown similar to the current board, but with slightly different personal relationships and alliances — will take up the matter when it is sworn in on Jan. 11. And that board’s challenge won’t be any easier.

Board of Supervisors Clerk Angela Calvillo and the Santa Clara County Counsel’s Office (legal counsel in the matter after our own City Attorney’s Office recused itself, largely because City Attorney Dennis Herrera wants to be mayor) proposed procedures whereby all nominees leave the room while the remaining supervisors vote.

But as Daly noted, clearing several supervisors from the room would make it unlikely that those remaining could come up with six votes for anyone. He also said the system would deny too many San Franciscans of a representative in this important decision and allow sabotage by just a few moderate supervisors, who could vote with a majority of supervisors present to adjourn the meeting in order to push the decision back to the next board.

“The process before us is flawed,” Daly said.

So Daly sought to have the board vote on every nomination as it comes up, but Elsbernd argued that under Robert’s Rules of Order, nominations don’t automatically close like that and to modify a board rule that contradicts Robert’s Rules requires a supermajority of eight votes. Calvillo, who serves as the parliamentarian, agreed with that interpretation and Chiu (who serves as chair and is the final word on such questions) ruled that a supermajority was required.

Although some of his progressive colleagues privately grumbled about a ruling that ultimately hurt the progressives’ preferred system, Chiu later told the Guardian, “I gotta play umpire as I see the rules … We need to ensure the process and how we arrive at a process is fair and transparent.”

Nonetheless, Chiu voted with the progressives on the rule change, which failed on a 6-5 vote. But Daly noted that supervisors may still refuse nominations and remain voting until they are ready to be considered themselves, which could practically have the same effect as the rejected rule change. “If we think that’s a better way to do it, we can do it. But we don’t need to fall into the trap and subterfuge of our opponents,” Daly told his colleagues.

Elsbernd then moved to approve the process as developed by Calvillo, but Daly instead made a motion to amend the process by incorporating some elements on his plan that don’t require a supermajority. After a short recess to clarify the motion, the next battleground was over the question of how nominees would be voted on.

Calvillo and Elsbernd preferred a system whereby supervisors would vote on the group of nominees all at once, but Daly argued that would dilute the vote and make it difficult to discern which of the nominees could get to six votes (and conversely, which nominees couldn’t and could thereby withdraw their nominations and participate in the process).

“It is not the only way to put together a process that relies on Robert’s Rules and board rules,” Daly noted, a point that was also confirmed at the meeting by Assistant Santa Clara County Counsel Orry Korb under questioning from Campos. “There are different ways to configure the nomination process,” Korb said. “Legally, there is no prohibition against taking single nominations at a time.”

So Daly made a motion to have each nominee in turn voted up or down by the voting board members, which required only a majority vote because it doesn’t contradict Robert’s Rules of Order. That motion was approved by the progressive supervisors on a 6-5 vote.

After the divisive procedural votes played out, Chiu stepped down from the podium and appealed for unity around the final set of procedures. He said that San Franciscans need to have confidence that the process is fair and accepted by all. So, he said, “It would be great if we have more than a 6-5 vote on this.”

As the role call was taken, Sup. Carmen Chu was the first moderate to vote yes, and her colleagues followed suit on a 11-0 vote to approve the process.

That unity isn’t likely to last long as supervisors fill an office that wields far more power than any other in city government. But both sides voiced an appreciation for what a monumental task they’re undertaking. “This is without a question the most important vote that any of us will take as a member of the Board of Supervisors and one that everyone is watching,” Elsbernd said of choosing a new mayor.

Daly called for supervisors to open the Dec. 7 meeting with a discussion about what qualities they all want to see in a mayor. “We owe it to the public, we owe it to the city, to discuss it and have it out in the open,” he said, going on to criticize the idea of a nonpolitical “caretaker mayor” and say, “I would like to see a mayor that works with the Board of Supervisors.”

But as the parliamentary jousting between Daly and Elsbernd en route to a bare-bones set of procedures shows, such high-minded ideals are likely to be mixed with some tough political brawls, back room deals, and power plays using arcane rules that guide the deliberations of legislative bodies.

In fact, when Korb was asked whether the adopted process precludes new amendments or procedural gambits, he noted that the Nov. 23 vote was probably just the beginning “given the parliamentary skills of this board.”

 

The America’s Cup rip-off

10

EDITORIAL Gigantic international sporting events tend to be great fun for the people who attend. They make great promotional videos for the host city. They can generate big revenue and profits for some private businesses.

But when the party’s over and the bills come due, these extravaganzas aren’t always a boon to the municipal treasury. And at a time when San Francisco can’t afford to pay for teachers and nurses and recreation directors, the supervisors ought to be giving much greater scrutiny to the deal that could bring the America’s Cup yacht races to the bay.

In 2009, as the city of Chicago was preparing an unsuccessful bid for the 2016 Olympics, the Chicago Tribune took a look at what the 1996 games had meant to another U.S. city, Atlanta. The Trib’s conclusion: lots of private outfits and big institutions did well — the Atlanta Braves got a new baseball stadium and the Georgia Institute of Techology got a new swimming and diving center — but the city itself didn’t get much money at all.

That’s exactly the way the deal that Mayor Gavin Newsom negotiated with Larry Ellison, the multibillionaire database mogul and yachtsman, is shaping up. A shadowy new corporation controlled by Ellison would get control of more than 30 acres of prime waterfront land worth hundreds of millions of dollars. The city could lose $42 million, and possibly as much as $128 million.

We don’t dispute the huge economic impact of holding an event that could attract more than 1 million visitors to the Bay Area. Those people will spend money in bars, restaurants, shops, and hotels. The waterfront improvements and increased tourism will create, according to economic reports, 8,840 jobs.

But as the Board of Supervisors budget analyst points out, those are not permanent, full-time jobs; much of the increased employment needs would be met by increased productivity (bartenders and waiters handling more customers than usual), overtime, and temporary jobs. And again: Most of the benefits will go to the private businesses in the tourist industry. The city’s increased tax revenue won’t be nearly enough to cover the expenses. Even if the America’s Cup group raises $32 million — and that’s not guaranteed in the deal — the city would still be down $10 million.

So in effect, San Francisco is preparing to spend $42 million of taxpayer money (and to forego as much as $86 million more by giving away waterfront land that could be developed) to benefit the sixth-richest person in the world, a new company he’s going to create and control, and the tourist-related businesses in town.

Oh, and to make it even juicier: the city is promising to seek state approval for Ellison to build condos or a hotel on the waterfront — something nobody else can legally do.

This doesn’t strike us as a terribly good deal.

It looks worse when you consider how the negotiations proceeded: The mayor and other city officials insisted they were scrambling to give Ellison everything he wanted to make sure that San Francisco beat out two other competitors. But as Rebecca Bowe reports on page 12, there were no other formal bids; Ellison’s team, based at the Golden Gate Yacht Club, was only negotiating with one city, San Francisco.

There are alternative proposals. The Telegraph Hill Dwellers Association wants to see the race complex moved from the Central Waterfront to the Northern Waterfront, and there may be ways of saving money. And Sup. Ross Mirkarimi points out that if Ellison wins the races in 2013 and comes back again the next time around, San Francisco could become what Newport, R.I., once was: a repeat host to an event that will bring more and more benefits as time goes on. That, however, involves a number of risks and variables that are far from certain at this point.

We’d like to know a lot more about what Ellison’s development plans are. We’d like to know who, exactly, will be running his new corporation that will get development rights for a couple of nice waterfront parcels.

But before the supervisors sign off on any deal, they need to set a bottom line: this can’t cost the city any net revenue. The San Francisco city treasury and local taxpayers shouldn’t be subsidizing an event created by and for the very wealthy.

 

The biggest fish

6

rebeccab@sfbg.com

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

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

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

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

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

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

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

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

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

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

 

THE CREW

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

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

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

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

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

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

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

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

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

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

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

 

TRANSFORMING THE WATERFRONT

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

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

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

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

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

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

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

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

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

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

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

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

 

PHANTOM BIDS?

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

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

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

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

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

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

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

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

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

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

 

WIND IN WHOSE SAILS?

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

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

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

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

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

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

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

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

Emergency forum Tues. / 30 on HANC recycling center eviction

8

An emergency community forum will be held tonight, Nov. 30, about the Recreation and Parks Department’s plan to evict the Haight Ashbury Neighborhood Council (HANC) Recycling Center from a parking lot in Golden Gate Park. If Mayor Gavin Newsom and his former chief of staff, Rec & Park General Manager Phil Ginsburg, succeed in their plan to evict the 36-year old recycling center, they’ll kill 10 green jobs, eliminate a rare source of income for poor people, and put an end to a community resource that costs San Francisco taxpayers nothing.

HANC believes the recycling center is being targeted by Newsom’s administration as a form of political payback, since the progressive organization opposed Proposition L, the sit / lie ordinance, which Newsom supported.

Ginsburg wants to evict the recycling center, which pays rent to the city, and replace it with a community gardening center that would cost $250,000. The shaded lot doesn’t seem like an ideal site for growing produce.

A memo issued Nov. 29 from Ginsburg to Rec & Park Commissioners notes that it is legal for the department to move forward with the eviction without commission approval. Apparently, Newsom’s administration intends to send 10 people to the unemployment line and kick a 36-year-old green resource to the curb without any public input, despite receiving 400 postcards from San Francisco residents opposing the eviction. The Rec & Park Commission will take up the issue of the new community garden center at its Thurs., Dec. 2 meeting.

Tonight’s emergency forum, organized by Keep Arboretum Free, is an attempt to open up a space for public dialogue.

A stakeholder meeting took place this afternoon with Ginsburg, District 5 Sup. Ross Mirkarimi, Department of the Environment Director Melanie Nutter, representatives from the San Francisco Police Department, represenatives from the offices of Assembly Member Tom Ammiano and City Attorney Dennis Herrera, HANC, and area residents.

Jim Rhoads of the HANC Recycling Center told the Guardian just after the meeting, “They’re going to evict us by the end of December. That’s their goal. The mayor has it in for us and he wants to get us out before he leaves.”

The recycling center, located at Frederick and Arguello streets, operates a buyback program for recyclable materials as well as a San Francisco native plant nursery. Residents from the Inner Sunset Park Neighbors have voiced complaints about “quality-of-life issues” that they link with some of the center’s patrons. During buyback hours, held from 10 a.m. to 3 p.m., people arrive with shopping carts filled of cans and bottles to exchange for small amounts of cash. Some of them are homeless.

Representatives from HANC, Rec & Park, and the Inner Sunset Park Neighbors have been invited to speak at tonight’s forum. “There are strongly felt opinions on both sides,” a flier for the event notes. “In the interest of a broad discussion, a number of long time local residents organized this forum for a full public airing of the issues prior to the Dec. 2 Commission meeting.”

The forum will be held tonight, Tuesday, Nov. 30, from 7 to 9 p.m. at St. John of God, 5th Avenue at Irving St.

To voice your opinion about Rec & Park’s plan to evict HANC, call Phil Ginsburg at 415-831-2701 or email him at Philip.Ginsburg@sfgov.org.

Caretaker mayor concept blasted by Daly

18

There’s been much talk about naming a “caretaker mayor” to replace Mayor Gavin Newsom in January – most of it coming from downtown-oriented politicians, advocates, and publications, who are in the minority on the Board of Supervisors – but Sup. Chris Daly offered a full-throated denunciation of the idea this week.

At the end of Tuesday’s long debate on adopting a procedure for choosing a successor mayor, Daly appealed to his colleagues, “Can we please spend a minute talking about what we’d like to see in the new mayor of San Francisco?” And in his remarks that followed, he focused on shooting down the notion that a caretaker mayor is what this troubled city needs.

The idea behind a caretaker would be to choose a technocrat who would pledge not to run for reelection in the fall, thus keeping any prospective candidate from gaining an advantage from incumbency. Names most frequently cited by moderate politicians and media voices are SFPUC head Ed Harrington, Sheriff Michael Hennessey, and City Administrator Ed Lee. Some more progressive caretaker names that get dropped include former Mayor Art Agnos and SF Democratic Party chair Aaron Peskin.

But Daly – publicly sounding a perspective that’s been widely discussed in progressive circles, who question why the board’s progressive majority would purposefully punt away the chance to lead – said the idea is fundamentally flawed: “You would be putting someone in office who is necessarily weak and hamstrung.”

While Daly acknowledges that he’d like to see a progressive in Room 200 and that “the political divide is real” between progressives and moderates, he said the flaws in installing a caretaker mayor should be apparent to everyone. To deal with a $400 million deficit and other structural budget issues, the new mayor is going to have to show leadership and have a base of support, which a caretaker mayor wouldn’t.

Although the Hearst-owned Chronicle has been promoting the idea of a caretaker mayor now, Daly noted that the Hearst-owned Examiner editorialized against the idea last time the city was in this position, in 1978 after Mayor George Moscone was assassinated and the board picked Dianne Feinstein to become mayor. “The City should not have to accept a “caretaker” mayor invested with only a thin veneer of authority,” editorialized the Examiner.

“It would be a colossal mistake,” Daly said of choosing a caretaker mayor. “We need to do better than just someone who knows the inner workings of city government.”

But the fear that the board’s progressive majority would put a progressive in office – or even a moderate politician with some progressive inclinations and connections – seems to be downtown’s greatest fear right now. The fun begins Dec. 7 when the board resumes its discussion of the issue and could start taking nominations.

Chronicle finally uses the P word: Progressive

41

The San Francisco Chronicle ran a good story yesterday on progressives hopes for appointing one of our own as the next mayor. But beyond being fair to progressives that are often demonized by a newspaper whose political sympathies lie with the downtown crowd, the article was notable for something else: it’s use of the word “progressive.”

For years, Chronicle editors have refused to use the word that is most commonly used to describe the people and ideology that controls a majority of the Board of Supervisors, opting instead to label progressives as “far-left” or “ultra-liberal,” while the economic conservatives in town get the reasonable-sounding label “moderate.”

Sources tell the Guardian that this bit of Orwellian wordsmithing started with former Editor Phil Bronstein and was fueled by Mayor Gavin Newsom complaining to Chronicle editors that calling his political enemies “progressives” made us sound too reasonable, rather than the wild-eyed radicals he considered us to be.

I and others have discussed this with Chronicle Metro Editor Audrey Cooper, and her bewildering argument is that progressive “is a politically loaded term that doesn’t mean much to our readers.” I’ve pointed out that the word is quite descriptive and has deep historical roots in California and its own caucus in Congress – and that labeling us “ultra-liberal” is far more loaded and pejorative – but to no avail.

I ran into the writer of yesterday’s story – Rachel Gordon, a solid reporter and former colleague from the City Desk NewsHour television program – at the Board of Supervisors meeting yesterday afternoon and she said that political reporters at the Chronicle have long been pushing to use “progressive” and the editors finally changed the policy.

I have a message in to Cooper and I’ll follow up in Comments if I learn anything more about how and why the decision was made. But it’s good to know the paper of record is now letting progressives be progressives. Maybe now we can get rid of the “moderate” label. How about SoLibEconoCons (socially liberal economic conservatives)? OK, maybe that still needs some work.

Progressives show unity as board approves mayoral succession process

21

The San Francisco Board of Supervisors unanimously approved a process for replacing Mayor Gavin Newsom last night after the progressive majority stuck together on a pair of key procedural votes and some parliamentary jousting provided a preview of the high-stakes power struggle that will begin Dec. 7.

Sup. Sean Elsbernd led the board moderates (Sups. Carmen Chu, Michela Alioto-Pier, Bevan Dufty, and Sophie Maxwell) in trying to dilute the voting power of the six progressives on the board (Sups. David Chiu, Chis Daly, David Campos, Eric Mar, Ross Mirkarimi, and John Avalos) and ensure they can’t vote as a bloc to choose the new mayor.

State conflict-of-interest rules spelled out by the California Political Reform Act and associated rulings prevent supervisors from voting in their economic interests, as becoming mayor would be. So Board Clerk Angela Calvillo and the Santa Clara County Counsel’s Office (legal counsel in the matter after our own City Attorney’s Office recused itself) created procedures whereby all nominees leave the room while the remaining supervisors vote.

But as Daly noted, clearing several supervisors from the room would make it unlikely that those remaining to come up with six votes for anyone. He also said the system would deny too many San Franciscans of a representative in this important decision and allow sabotage by just a few moderate supervisors, who could vote with a majority of supervisors present to adjourn the meeting in order to push the decision back to the next board that is sworn in on Jan. 11.

“The process before us is flawed,” Daly said.

So Daly sought to have the board vote on every nomination as it comes up, but Elsbernd argued that under Robert’s Rules of Order, nominations don’t automatically close like that and to modify a board rule that contradicts Robert’s Rules requires a supermajority of eight votes. Calvillo, who serves as the parliamentarian, agreed with that interpretation and Chiu (who serves as chair and is the final word on such questions) ruled that a supermajority was required.

Although some of his progressive colleagues privately grumbled about a ruling that ultimately hurt the progressives’ preferred system, Chiu later told the Guardian, “I gotta play umpire as I see the rules…We need to ensure the process and how we arrive at a process is fair and transparent.”

Nonetheless, Chiu voted with the progressives on the rule change, which failed on a 6-5 vote. But Daly noted that supervisors may still refuse nominations and remain voting until they are ready to be considered themselves, which could practically have the same effect as the rejected rule change. “If we think that’s a better way to do it, we can do it, but we don’t need to fall into the trap and subterfuge of our opponents,” Daly told his colleagues.

Elsbernd then moved to approve the process as developed by Calvillo, but Daly instead made a motion to amend the process by incorporating some elements on his plan that don’t require a supermajority. After a short recess to clarify the motion, the next battleground was over the question of how nominees would be voted on.

Calvillo and Elsbernd preferred a system whereby supervisors would vote on the group of nominees all at once, but Daly argued that would dilute the vote and make it difficult to discern which of the nominees could get to six votes (and conversely, which nominees couldn’t and could thereby withdraw their nominations and participate in the process).

“It is not the only way to put together a process that relies on Robert’s Rules and board rules,” Daly noted, a point that was also confirmed at the meeting by Assistant Santa Clara County Counsel Orry Korb under questioning from Campos. “There are different ways to configure the nomination process,” Korb said. “Legally, there is no prohibition against taking single nominations at a time.”

So Daly made a motion to have each nominee in turn voted up or down by the voting board members, which required only a majority vote because it doesn’t contradict Robert’s Rules of Order. That motion was approved by the progressive supervisors on a 6-5 vote.

Both sides at times sought to cast the other as playing procedural games, and both emphasized what an important decision this is. “This is without a question the most important vote that any of us will take as a member of the Board of Supervisors and one that everyone is watching,” Elsbernd said of choosing a new mayor.

So after the divisive procedural votes played out, Chiu stepped down from the podium and appealed for unity around the final set of procedures. He said that San Franciscans need to have confidence that the process is fair and accepted by all, and so, “It would be great if we have more than a 6-5 vote on this.”

As the role call was taken, Carmen Chu was the first moderate to vote “yes,” and her colleagues followed suit on a 11-0 vote to approve the process. At that point, the board could have begun taking nominations, but it was already 7 p.m. and both Daly and Chiu argued to delay that process by couple weeks.

“We owe it to ourselves and this city to have a discussion [of what qualities various supervisors want to see in a new mayor] before we get into names and sequestration,” Daly said.

He and other progressive proposed to continue this discussion to Dec. 7, but Elsbernd – who was visibly agitated by the discussion – suddenly moved to table the item (which would end the discussion without spelling out the next step), a motion rejected on a 4-7 vote, with Maxwell joining the progressives.

The discussion ended with a unanimous vote to continue the item to Dec. 7, when supervisors will discuss what they want in a new mayor and possibly begin the process of making and voting on nominations. Anyone who receives six votes will need to again be confirmed during the board meeting on Jan. 4, a day after Newsom assumes the office of lieutenant governor.

Green vs. “green”

12

rebeccab@sfbg.com

Years ago, Greg Gaar was a scavenger, wandering the neighborhoods around Twin Peaks picking up bottles and other kinds of recyclable trash. He began working at the Haight Ashbury Neighborhood Council (HANC) Recycling Center in 1982.

During his tenure, a project designed primarily to divert waste from the landfill expanded to include a unique San Francisco native plant nursery. Located on a converted parking lot on Frederick Street near Lincoln Boulevard, the recycling center is a drop-off for recyclable materials, including used veggie oil, and a source for soil and 65 species of potted plants.

Gaar started small. “I took some seeds,” he explained, “and scattered them into a flat. They came up like fur on a dog’s back.” Over the years, he researched the natural history of the area, saved seeds, and cultivated the grounds surrounding the recycling center. HANC also converted a traffic triangle across the street into a thriving garden.

The Recreation and Parks Department, directed by Phil Ginsburg — former chief of staff to Mayor Gavin Newsom — is seriously considering a plan to evict HANC recycling center and replace it with a garden resource center.

While trading one garden center for another might not seem like a big deal, it appears to be an attack on poor people who make their living recycling cans and bottles, a group that organized to oppose Proposition L, the sit-lie ordinance that Newsom supported in this election.

Or as HANC Executive Director Ed Dunn put it: “He’s going to take it from his enemies and give it to his friends.”

The HANC recycling center has leased Rec and Park property since its inception in 1974, and it’s been at its current location for 30 years. HANC does not receive any city funding for the center, and it pays a small amount in rent for use of the parking lot. It processes roughly 160 tons of recycling per month.

Newsom has worked hard to cultivate his reputation as a green mayor and promote green-job creation, but evicting the recycling center would kill 10 green jobs. Many of the employees were formerly homeless and previously earned petty cash gathering cans to exchange at the center’s buyback station. They were hired without any help from San Francisco taxpayers and now they’re earning living wages while diverting waste from the landfill.

But some neighborhood residents are annoyed by the presence of people who arrive at the center with shopping carts filled to the brim with bottles and cans that they can exchange for cash. Buyback hours are held from 10 a.m. to 3 p.m., so during those times, people who haul around bundles of recyclables line up to receive modest rewards for their hours of effort.

HANC, a progressive organization, publicly and vehemently opposed Prop. L, the voter-approved ordinance that bans sitting and lying down on city sidewalks. Newsom enthusiastically endorsed Prop. L.

Dunn believes the recycling center is being targeted due to HANC’s position on that issue. “It’s all about political payback,” says Dunn. Incidentally, Haight voters rejected sit-lie and HANC sees the pending recycling-center eviction as part of the same agenda. “It’s all part of the gentrification that’s enveloping San Francisco,” said Jim Rhoads, who chairs the HANC Recycling Committee.

Once word of the plans got out, letters started pouring into to Newsom’s and Ginsburg’s offices from the Sierra Club, San Francisco Tomorrow, the Senior Action Network, and other organizations. Additionally, the center’s supporters mailed at least 400 postcards opposing the eviction.

Residents have voiced complaints about the shopping-cart recyclers, some of whom are homeless. The Inner Sunset Park Neighbors (ISPN), which is petitioning Rec and Park to evict the recycling center, has a message posted on its website linking the shopping-cart pushers with “quality-of-life issues such as aggressive panhandling, drug use/dealing, and public safety.” ISPN also charges that the recyclers swipe cans and bottles from rolling curbside bins. The neighborhood group had not responded to requests for an interview by press time.

Rhoads believes that if the recycling buyback program is removed, it would only encourage panhandling — after all, people already lacking basic resources would lose a critical source of income. “People will be very desperate,” he said. According to the results of a HANC survey, one in six recyclers regularly turning up at the center to exchange bottles for cash sleeps outside.

The Recreation and Park Commission will discuss the possible HANC eviction at its Dec. 2 meeting. And since the recycling center is on a month-to-month lease, the 36-year-old green resource could soon suffer eviction. There’s likely to be significant resistance, since the HANC Recycling Center has forged partnerships with urban-agriculture projects throughout the city.

It was a fiscal sponsor of the Garden for the Environment and donated several tons of cardboard for mulching at Hayes Valley Farm. The HANC nursery project has distributed plants to urban agriculture projects throughout the city, including school garden plots, urban habitat corridors designed to protect rare species, and the Mission Greenbelt Project, a network of sidewalk gardens in the Mission.

Details on the proposed garden resource center that would be installed in lieu of the HANC Recycling Center are sketchy. An artist’s rendering of the plan, drawn up by the city’s Department of Public Works, envisions an outdoor classroom amphitheatre, raised garden beds, a semi dwarf orchard, and a composting area. However, Guardian inquiries to Rec and Park requesting more specific details about funding and operation went unanswered by press time. 

Boring through

2

news@sfbg.com

Despite an official groundbreaking ceremony last February, the Central Subway — an underground Muni connection to Chinatown — still doesn’t have its full $1.5 billion in funding lined up yet, and now the project is facing renewed criticism that the high cost isn’t worth the benefits.

The project was a promise by former Mayor Willie Brown to Chinatown leaders who were upset that the Embarcadero Freeway was torn down after the 1989 Loma Prieta earthquake and never rebuilt, leaving that densely populated part of town difficult to access. But not everyone in Chinatown wants the project.

Wilma Pang, founder and co-chair of A Better Chinatown Tomorrow (ABCT) stands firmly against it, while the Rev. Norman Fong, deputy director of programs for the Chinatown Community Development Center, takes a solid stand for building the project, as does Board of Supervisors President David Chiu, who represents the district.

Fong explains that the majority of Chinatown has united to make sure the subway comes through, and that he himself has never seen the community in Chinatown more set on something. “This is an environmental justice movement,” Fong said. “For me, this was the first time Chinatown had ever fought [for such a major infrastructure project].”

City staff is also focused on moving the project forward. “This project has been supported by our state, local, and federal officials,” Brajah Norris, external affairs manager for the Central Subway Project, told the Guardian.

But the group SaveMuni — formed last year by progressives, transit engineers, transit advocates, and other activists “working to reverse Muni’s death spiral” — recently called for the Central Subway to be shelved and its resources put to more efficient projects. “Now that the analysis has been done, it’s time to rethink the situation,” SaveMuni says in a white paper on the Central Subway.

The group argues that using the subway will take longer than other transit options, threatens many businesses on Stockton Street, and doesn’t even connect effectively with the Muni system. Even worse, they point out that Muni would have to spend an additional $4 million a year in local operating expenditures beyond the existing bus service, an expenditure that seems unnecessary to the organization members.

Although creating a subway for the crowded community seemed like a good idea initially, people like Tom Radulovich soon began to realize that a 1.7 mile subway stretch buried 20 feet underground is not the same as the plan he hoped for when considering an economically efficient transportation system for the people in Chinatown.

“People deserve a whole range of alternatives,” said Radulovich, executive director of Livable City and an elected member of the BART Board of Directors. “You have to be mindful of when the [current] project is not the same project you voted for.”

For those at SaveMuni, the project long ago strayed from its original goal. Although they agree that Chinatown community members deserve their own form of reliable transportation, they believe this is not the right way to be spending federal, state, and local money.

“It’s an important corridor, so funding should go there,” Radulovich said. But he thinks the same money could be better used other ways, such as for a dedicated Bus Rapid Transit (BRT) lane.

Jerry Cauthen, a retired SFMTA transportation engineer who cofounded San Francisco Tomorrow and SaveMuni, explained that he initially liked the concept of a subway but then became “bitterly disappointed” as the project progressed.

The subway line has three stops mapped out: one at Moscone Center, one at Union Square/Market Street, and one in Chinatown. From the Chinatown station, the tunnel will continue under Washington Square and remain there for future extensions to the subway, which is projected to begin service in 2018.

“There’s no reason to wait 10 years for a subway,” Cauthen said. “Because it is not going to do what it says it will do.”

Cauthen explained that the route for the Central Subway misses the most important lines anyway, which would be “serving Chinatown poorly.” Cauthen was not alone in his concern that the three-stop subway system will prove to be more of a hassle than a convenience.

But in a committee meeting held Nov. 16 at City Hall, the San Francisco County Transportation Authority (which oversees capital expenditures, while the SFMTA runs Muni) addressed the issue that the city in fact does not have all the money it needs to complete this project. While federal officials have already handed over $72 million out of $948 million, getting the rest of that federal money requires the city and its affected agencies to come up with local matching funds of between $137 million to $225 million.

Malcolm Yeung, public policy manager for the Chinatown Community Development Center, explained that based on the recent hearing, the SFMTA needs to find a viable source for the remaining $137 million. It has until February to inform the Federal Transportation Administration how it will obtain the rest of this money. The SFCTA meeting was an attempt to request an allocation of about $22 million in Proposition K (sales tax) funds.

Now that the city is having trouble meeting its fiscal goal by February 2011, the new question is, if city officials don’t come up with the money, will San Francisco lose the project and its funding?

“I don’t think it means that we lose the whole project,” Yeung said, but there could be delays. And every time there is a delay, there is also an associated cost to be paid.

According to SFMTA, the project received $948.2 million in federal money, $375 million from the state, and $255.1 million in local contributions. Norris explained that since the federal money was given for this specific New Starts program, then it can only be used for this project. And if the project comes to a halt, the money will go somewhere else. “People don’t realize that $948 million is part of the New Starts program,” Norris said. “If we don’t get it, we actually lose it.”

Fong, Chiu, and other supporters of the project rallied in its support outside City Hall on Nov. 15. As Fong told us, “[People against the project] don’t appreciate the hard work, that it takes a decade to get the federal funds … It cannot be simply shifted or “redirected” as some have said.”

For Fong, ending this project would be “disregarding two decades of hard work.” Although the ideas to improve Muni seem fair to Fong, moving forward with the subway is the only option for him right now.

 

*This article has been corrected from an original version.

The screwy rules for mayoral succession

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EDITORIAL The clerk of the Board of Supervisors, at the request of Board President David Chiu, has released a proposal for the selection process for a new mayor, and it’s about as complicated and confusing as everyone expected. That’s in part the result of the vagueness of the City Charter, which simply specifies that a vacancy in the office of mayor shall be filled by a San Francisco registered voter chosen by a majority of the supervisors but offers no procedural clues on how to get there. And the Political Reform Act sets very strict limits on conflicts of interest for elected officials in California; a supervisor, for example, can’t vote for himself or herself or do anything to promote his or her candidacy for an office that comes with a pay raise.

In the end, the proposal leaves limited room for public input — and makes it very difficult for any sitting supervisor, particularly one of the progressives, to wind up winning the job.

The way the rules are laid out, the board would accept nominations — but any sitting supervisor who accepted the nomination would have to leave the room at once, cease all communication with his or her colleagues, and play no role in further deliberations or voting. Since it’s entirely possible that several supervisors — and possibly several progressives — could be nominated, the process would cripple the final outcome since the only ones allowed to vote would be the remaining board members whose names aren’t in the mix.

That skews the outcome heavily toward one of two options: the supervisors appoint someone who isn’t on the board — or Chiu winds up as both acting mayor and board president because nobody else can muster six votes. The only other option: The progressives all stick together, line up in advance behind a candidate who’s currently on the board, and find one more vote for that person.

The whole thing is so screwy that the supervisors ought to make some changes before they adopt it and try, to the extent that it’s legal, to inject some sanity into the process.

For example: Instead of opening the nominations, collecting a long list of names, sending all of the sitting supervisors on that list out of the room and then voting, the board could take the names one at a time. A supervisor gets nominated, leaves the room, and the votes are tallied; if he or she has fewer than six, the process starts again. (The problem: who goes first — because the first person eliminated can’t be nominated again. To be fair, there would have to be some sort of random drawing of which supervisor could make the first nomination — which alone might add too much random chance to the outcome.)

Then there’s the question of when this all takes place. If the process starts now and an interim mayor is chosen, the board will have to reconfirm that person Jan. 4 when Gavin Newsom actually resigns to take over as lieutenant governor. There’s a chance something could go wrong in the meantime and the board would have to change its vote, and there’s a chance that state law would prevent a supervisor who won from acting in any way to influence the final vote. But those are better risks than the option of leaving everything to the last day. And if the board decides that it can’t or shouldn’t act until Jan. 4, special meetings ought to be calendared for Jan. 5, 6, and 7 to give the current board more than one day to make the final decision.

And before anything happens, the board needs to schedule at lest one open hearing to get input from the public on the qualifications for the next mayor and on potential candidates.

The bottom line: any candidate who wants to get progressive support needs to be willing to do more than sign legislation and manage the city. He or she needs to be willing to use political capital and the mayor’s bully pulpit to make the case for progressive change — on taxes, services, the budget, and an overall civic vision. And the six board members on the left need to stick together, or that won’t happen.

Editorial: The screwy process for selecting a mayor

19

The clerk of the Board of Supervisors, at the request of Board President David Chiu, has released a proposal for the selection process for a new mayor, and it’s about as complicated and confusing as everyone expected. That’s in part the result of the vagueness of the City Charter, which simply specifies that a vacancy in the office of mayor shall be filled by a San Francisco registered voter chosen by a majority of the supervisors but offers no procedural clues on how to get there. And the Political Reform Act sets very strict limits on conflicts of interest for elected officials in California; a supervisor, for example, can’t vote for himself or herself or do anything to promote his or her candidacy for an office that comes with a pay raise.


In the end, the proposal leaves limited room for public input — and makes it very difficult for any sitting supervisor, particularly one of the progressives, to wind up winning the job.


The way the rules are laid out, the board would accept nominations — but any sitting supervisor who accepted the nomination would have to leave the room at once, cease all communication with his or her colleagues, and play no role in further deliberations or voting. Since it’s entirely possible that several supervisors — and possibly several progressives — could be nominated, the process would cripple the final outcome since the only ones allowed to vote would be the remaining board members whose names aren’t in the mix.


That skews the outcome heavily toward one of two options: the supervisors appoint someone who isn’t on the board — or Chiu winds up as both acting mayor and board president because nobody else can muster six votes. The only other option: The progressives all stick together, line up in advance behind a candidate who’s currently on the board, and find one more vote for that person.


The whole thing is so screwy that the supervisors ought to make some changes before they adopt it and try, to the extent that it’s legal, to inject some sanity into the process.


For example: Instead of opening the nominations, collecting a long list of names, sending all of the sitting supervisors on that list out of the room and then voting, the board could take the names one at a time. A supervisor gets nominated, leaves the room, and the votes are tallied; if he or she has fewer than six, the process starts again. (The problem: who goes first — because the first person eliminated can’t be nominated again. To be fair, there would have to be some sort of random drawing of which supervisor could make the first nomination — which alone might add too much random chance to the outcome.)


Then there’s the question of when this all takes place. If the process starts now and an interim mayor is chosen, the board will have to reconfirm that person Jan. 4 when Gavin Newsom actually resigns to take over as lieutenant governor. There’s a chance something could go wrong in the meantime and the board would have to change its vote, and there’s a chance that state law would prevent a supervisor who won from acting in any way to influence the final vote. But those are better risks than the option of leaving everything to the last day. And if the board decides that it can’t or shouldn’t act until Jan. 4, special meetings ought to be calendared for Jan. 5, 6, and 7 to give the current board more than one day to make the final decision.


And before anything happens, the board needs to schedule at lest one open hearing to get input from the public on the qualifications for the next mayor and on potential candidates.


The bottom line: any candidate who wants to get progressive support needs to be willing to do more than sign legislation and manage the city. He or she needs to be willing to use political capital and the mayor’s bully pulpit to make the case for progressive change — on taxes, services, the budget, and an overall civic vision. And the six board members on the left need to stick together, or that won’t happen.

The mayoral selection last time

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The last time the Board of Supervisors had to pick a mayor, things were very different. Former Sup. Dan White had just murdered Mayor George Moscone and Sup. Harvey Milk. The city was in shock. Board President Dianne Feinstein became acting mayor, and one week later, on Dec. 4, six of her colleagues — the narrowest possible margin — elected her to fill out Moscone’s term.

It’s worth looking back at what happened that week, not only because it’s a fascinating bit of political history, but because it gives some insights into how the current process should and shouldn’t go.
We’ve gone back and pulled not only the minutes of that meeting, but all of the relevant articles and editorials from the San Francisco Chronicle, the old San Francisco Examiner and the Bay Guardian, and while newspaper accounts are only the first, and often imperfect draft of history, the Chron had a good City Hall reporter, Jerry Burns, and you can get a lot from the day-by-day accounts.

For starters, everyone (even the Guardian) agreed that Feinstein did a good, almost uncanny job of keeping it together and managing the city in the week after the horrendous murders. But she was by no means the only, or consensus candidate for the job — Sup. Robert Gonzales announced his candidacy Dec. 1, and others were in the running until the end. The Guardian wrote at the time that Feinstein was fine as acting mayor – but shouldn’t be in office for the final 13 months of Moscone’s term.

Among the interesting elements of the drama:

— The process was riddled with Brown Act violations, and the selection of Feinstein was, in retrospect, almost certainly based on illegal meetings.  “Feinstein spent yesterday at her Pacific Heights home,where she talked with most of the supervisors,” a Dec. 4, 1978 Chronicle article by Burns noted. That would amount to an illegal meeting; under state law, then and now, meeting individually and serially in private with all or most of the members of a public board is a clear violation of the Brown Act.

At the time, however, nobody challenged Feinstein’s actions.

— Then, as now, there was a move to name a “caretaker” mayor who would fill out the remaining 13 months of Moscone’s term — and vow not to run again. But the conservative Examiner said that was a bad idea: In a Dec. 3 editorial, the paper, then owned by Hearst Corp., noted: “The City should not have to accept a “caretaker” mayor invested with only a thin veneer of authority.” The notion went nowhere.

— At least one name that was bandied around back then is in play again today: Then-Assembly Member Willie Brown.

— Feinstein got exactly six votes. Although in most casual historical accounts, she’s described as a clear, almost unanimous choice, that was far from true. In fact, Sup. Ron Gonzalez, who described himself as the board member most in synch with Moscone’s agenda, announced his candidacy Dec. 1, and as of Dec. 3, the day before the final vote, Russ Cone of the Examiner reported that “earnest and secretive negotiations among San Francisco’s nine supervisors to agree upon a mayor to replace the slain George Moscone today entered the final, feverish hours with no candidate ready to claim victory.”

At the Dec. 4th board meeting, Sup. Quentin Kopp moved to continue the decision for a week. Kopp – unlike most of his colleagues – had been avoiding the political furor in the days after the assassinations, saying it was unseemly to be making deals when city leaders ought to be in mourning. Feinstein and the six others who would ultimately elect her voted against the motion.

That would be a clear violation of law today; as a candidate, Feinstein would be unable to vote on anything that could promote her ascension to mayor. But no matter: The motion needed six votes, and only Kopp and Sup. Lee Dolson said Aye.

When the motion was made to name Feinstein as interim mayor, Kopp tried to ask her a few questions – particularly about her plans for various department heads. The city attorney quickly shut him down, saying Feinstein couldn’t legally answer or get involved in any debate.

Then six supervisors voted for Feinstein. Kopp and Dolson dissented. Feinstein by law had to abstain. And there were, of course, two empty seats; Dan White had just resigned and was in jail, and Harvey Milk was dead.

Why did Kopp vote no? There’s a back story, a key part of San Francisco political lore.

Feinstein had run for mayor twice before, in 1971 and 1975, both times finishing well out of the money. After her second defeat, she vowed she’d never do it again. In fact, the day before the assassinations, she had just returned from a trip to Nepal with her then-boyfriend (now husband) Richard Blum, and reporters asked her if she was going to run in 1979. “Not this time,” she said.

She and Kopp, longtime rivals, had cut a deal the year before. Feinstein wanted to be board president; Kopp wanted to be mayor. And Feinstein vowed that if Kopp would support her for board president, she’d stay out of the mayor’s race in 1979 and leave the field open for him.

And of course, immediately after the killings, she changed her mind. Kopp thought what was a bit slimly, and refused to vote for her for mayor. He challenged her in 1979, and narrowly lost, and her political career, so recently in the doldrums, was off and running again.

The next mayor: A very funny video

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This is a truly enjoyable (if a little off-base) video about the selection process for the next mayor. I particularly like the part about the duties of the acting mayor. Check it out after the jump