Public Power

The blackout factor

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news@sfbg.com

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This chart shows how customers of Pacific Gas and Electric Co. face far more power outages than customers of any of the public power agencies in the Bay Area

Noel Birbeck makes signs. In a low, nondescript building tucked into a south of Market side street, a printing machine spits out personal greetings and corporate messages in all colors, shapes, and sizes.

Until the power goes out.

"We print things that are up to 50 feet long," said Birbeck, the business manager of Budget Signs. "If the power goes out at foot 35, we have to start the printing process all over and throw out all that time and money that went into the initial printing."

And that, unfortunately, has been happening far too often. In fact, a Guardian review of available data shows that customers of Pacific Gas and Electric Co. lose power much more frequently than customers of municipally-owned and operated utilities.

That costs money and harms the local business climate.

"[Any disruption] is a huge deal," Birbeck said. "If we’re in the middle of a deadline and a customer expects something at a certain time, that can cost Budget Signs a huge amount of money. No one is going to pay you for something that is only kinda done."

The last major outage cost Budget Signs more than $300 in employee and company time as Birbeck and her workers waited for the power to return. It’s a manageable amount, but she insists she can’t put a price on the inconvenience, the uncertainty, and the potential loss of business.

Reliable power is a basic requirement of most businesses. Restaurants and markets need refrigeration, factories need to power production lines, office buildings run large computing systems, retailers need to run cash registers, lights, and credit card machines. An unexpected power outage can cost San Francisco businesses thousands of dollars.

A 2001 study by the Electric Power Research Institute estimates the cost of power disruptions to California businesses is between $11.5 million and $17.8 million annually.

No utility can guarantee year-round power without disruptions, surges, brownouts, or severe weather-related outages. But reliability varies widely among California utilities.

PG&E breaks its service area into districts, and, according to reports it submits annually to the California Public Utilities Commission, San Francisco customers experienced an average of two hours of non-weather-related outages per year over the last six years. (Weather-related incidents are not reported at the district level.)

That’s better than the three-hour average across PG&E’s entire California service area. Still, PG&E customers in San Francisco lose power, on average, 2.5 times as often as customers of other Bay Area utilities.

The Palo Alto Utilities Department, Silicon Valley Power in Santa Clara, Alameda Municipal Power, and the Sacramento Municipal Utility District have dramatically better records, ranging from 82 minutes a year of outage time in Sacramento to only 16 minutes in Santa Clara — and these numbers include all weather-related events.

In other words, the municipal utilities deliver power more consistently and at considerably lower rates — even before factoring in PG&E’s impending rate hike of 3.3 percent to 5.4 percent.

"We consider any widespread blackout a major event," said Larry Owens, division manager at Silicon Valley Power. "Systems can be managed to minimize storm related events — we do [that]."

MONEY FOR MAINTENANCE


There are a number of reasons why these public power sources are more reliable than PG&E: size of the service area, age of the infrastructure, administration of the organization.

"The general concept is that the more complex the topography is and the older the urban areas are … the more unreliable the system is going to be," said Mark Loy, a ratepayer advocate at the CPUC.

"For PG&E there are negative powers of scale," he continued. "They are so large and spread out that being bigger actually makes things more difficult for them to fix. In San Francisco, the circuitry PG&E uses hasn’t even been mapped out in some places, so it is all haphazard and harder to keep on top of."

Public power agencies also have more incentive to invest in maintaining their infrastructure.

Patrick Valath, manager of electric engineering at the Palo Alto Utilities Department, attributes his city’s annual average of only 65 minutes of power disruption to an "aggressive and sustained infrastructure replacement program that is spread over many years."

Alameda Municipal Power’s Alan Hangar said the annual average of only 25 minutes of outage in that city is due to years of building stability and redundancy into the system.

Santa Clara is by far the most reliable utility company in the area, Owens said, and is often ranked second in the nation. "Our current operating philosophy is to load the system with only half of what it is capable of carrying," he said. "That allows us to switch a customer to another circuit quickly, so we restore their power and make repairs on our time, not their time."

He also noted that the vast majority of Santa Clara’s power lines are underground, making them far less susceptible to damage from storms, accidents, and other interference.

Municipal utilities have more freedom than investor-owned companies like PG&E to shift the focus away from profits, revenue, and shareholder returns toward quality and customer satisfaction.

"We are customer-driven," Owens said. "They repeatedly tell us that reliability is the No. 1 priority. The cost of power is second. We have some customers who say they lose $1 million a minute in an outage, and that by far trumps the cost they pay for energy."

THE RIPPLE EFFECT


Business owners don’t need studies to tell them they are losing money because of PG&E.

Arienne Landry, owner of Just for You Café in San Francisco’s Dogpatch neighborhood, faced a blackout during lunch service at her café several months ago.

"The power was out for four or five hours," she said. "During that time I’m paying people to work, but I can’t serve customers without power. I probably lost a couple of grand in sales. It’s not a severe loss, but it takes a little while to catch up."

Birbeck of Budget Signs remembers a power disruption that occurred when she was in the middle of two large printing jobs. She and an employee returned to the shop at 10:30 p.m. after a neighbor alerted her that the power had returned. She said they worked through the night to complete the jobs on deadline.

"They were our two largest jobs for our two largest companies at the time," she said. "Both jobs were over $10,000. Potential loss of either or both of these companies would have been disastrous to a small company. I really couldn’t even put a price on it."

And the cost of an outage doesn’t stop at that initial business. If the power goes out at Birbeck’s sign shop and a sign doesn’t get finished and a deadline isn’t met, Birbeck might lose money or even a client. But that client might have needed that sign for a business event, and that business event may have needed that client … and the losses can go on and on.

Those ripples are larger and go farther in many high tech industries. Larry Owens of Silicon Valley Power said that consistent, reliable power is especially important for the high tech firms located in Santa Clara, including Applied Technologies, Inc., McAfee, Inc., and Intel Corp.

"There are some processes that require a 21-day burn in," he said. "If there is a power outage, they have to start all over again. An outage can cause a company to lose market share or dominance or preferred vendor status. It ripples out a long way."

Some companies have such sensitive systems that a drop in voltage for a mere fraction of a second can shut them down and require rebooting.

"Our customers have become power-quality sensitive," Larry Owens said. "It doesn’t take an outage to harm a business. A fault on a transmission line causes the whole system to dip, a voltage dip. If you have a heavy load, it knocks the voltage down for milliseconds. If it drops enough, companies’ systems drop out."

State Sen. Mark Leno is intimately familiar with the problem — he owns Budget Signs. And he has called on the California Public Utilities Commission to investigate the problem.

"As a San Francisco small business owner, I am personally aware of the lost business I experience as a result of PG&E’s performance failures," Leno said in a press release. A June 18 letter Leno sent to the CPUC noted: "As the commission considers PG&E’s request to upgrade its grid, I would ask you to include both an investigation of these problems and PG&E’s proposed solutions to them."

Almost a month later Michael R. Peevey, president of the CPUC, responded, arguing that PG&E’s reliability rate in 2008 was better in the previous few years. He also pointed out that the utility has a formal process for filing claims and that the commission has no authority over system reliability.

That, Leno said, is unacceptable. "From reading that letter, one would never know that the mission of the California PUC is to be the protector of the ratepayer," he told us. "The ratepayers are being badly served by PG&E and the CPUC."

FILING A CLAIM


In theory, state law requires PG&E to reimburse businesses for losses caused by blackouts. A business owner or manager can find the claim form on PG&E’s Web site or can call the claims office. Each case is assigned to one of the 21 claims investigators who cover the utility’s service area. With the help of supporting documents, investigators look into the occurrence, determine PG&E’s liability and the degree of monetary loss, and compensate the business accordingly. All, according the Web site, within an average of 30 days.

Emily Mitra, owner of Dosa, which operates Indian restaurants in the Mission District and the Fillmore District followed this process — and it wasn’t that simple.

On Dec. 18, 2008, a PG&E transformer blew and both locations of Dosa lost power. Mitra had to contend with food spoilage, staff costs, down equipment, lost business, all of which added up to about $12,000.

"We filed claims, but it was a long process," she said. "A check came for the Valencia Street location immediately but for the Fillmore location, PG&E didn’t even have record of an outage."

After three months of badgering PG&E to no avail, Mitra said she contacted Sup. Ross Mirkarimi’s office and the Small Business Commission.

"I was ready to sue them," she said. "I had dozens of witnesses, but that didn’t seem to faze them. It could have been a coincidence that they found the data right after we talked to the Small Business Commission. But it was a pretty quick turnaround after that."

A check arrived for the full amount of the claim. But Mitra couldn’t claim compensation for the time, energy, and frustration the claims process cost her over its three-month duration.

Birbeck told us PG&E never informed her that there was a formal claims process. "No one ever mentioned a claim to me — that has never been offered at all," she said. That’s a common complaint — although the forms are on PG&E’s Web site, the utility doesn’t widely promote or advertise that fact.

PG&E also asks business owners to provide a slew of paperwork ranging from tax records and bank statements to payroll records, revenue and expense statements, and sales receipts.

"We had to give them a lot of data," Mitra said. Because Dosa’s records are mostly digital and automated, supplying them to PG&E was the least of her problems. But, she conceded, "if you don’t run your business in a way that keeps all that data, it would be a pain in the ass."

Of course, the claims process does nothing to address issues of reliability. Neither does it guarantee that Mitra’s refrigerators won’t fail without notice, leaving her without food to serve.

It is, however, another reminder that San Francisco is not being well-served by its private utility monopoly.

Fixing PG&E’s blackout problem

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EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see "The blackout factor, page 8). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.

During the worst days of the California energy crisis, rolling blackouts were a regular event, and the press and public talked constantly about the impact of power outages on businesses and the economy. Now that the worst of that crisis is over, many blackouts get no news media attention at all. But the problem is still serious: reliable power is critical to most business in the Bay Area, and even short-term outages can hit the bottom line.

That’s why public power agencies like Silicon Valley Power in Santa Clara and Palo Alto’s municipal utility put substantial resources into infrastructure upgrades and repairs. PG&E, which as a private company seeks to keep costs down to fatten profits and reward highly paid executives, has fallen far behind on its system upgrades. That’s why, for example, underground explosions keep happening in San Francisco, shorting out power systems and plunging neighborhoods like the Tenderloin into blackouts.

State law requires PG&E to pay claims for economic damage caused by system failures. Restaurants that lose frozen food, for example, can fill out a form, go through a cumbersome process of proving the extent of the losses, and get reimbursed. But PG&E rarely advertises or promotes that program, and lots of small businesses know nothing about it or never manage to file claims.

And even the claim process doesn’t cover lost business, lost customers, and the loss of reputation.

State Sen. Mark Leno, who owns a small sign shop (and has suffered from blackouts) has asked the California Public Utilities Commission to investigate PG&E’s reliability and mandate that the company meet basic standards for keeping the lights on. But so far, that agency is ducking. Leno has promised legislation if he gets no results from the CPUC, and he should proceed with a bill that would set minimum reliability standards for private utilities and provide significant penalties for failing to meet those targets.

San Francisco needs to take action on the local level, too. The supervisors should hold hearings on electricity reliability and demand that PG&E executives explain the reason system failures are so much higher here than in other Bay Area communities with public power systems. The Small Business Commission should set up (and publicize) a process for filing complaints about PG&E and include information about filing claims in its outreach material.

And as the city continues to wallow in budgetary disaster, city officials (and small business groups) should take note of the lesson here. Public power is not only cheaper — it’s more reliable. And that means it’s good for business and the San Francisco economy. *

Editorial: Fixing PG&E’s blackout problem

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State law requires PG&E to pay claims for economic damage caused by system failures.

EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see “The blackout factor, page 8). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.

During the worst days of the California energy crisis, rolling blackouts were a regular event, and the press and public talked constantly about the impact of power outages on businesses and the economy. Now that the worst of that crisis is over, many blackouts get no news media attention at all. But the problem is still serious: reliable power is critical to most business in the Bay Area, and even short-term outages can hit the bottom line.

Nip it in the bud

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rebeccab@sfbg.com

GREEN CITY Imagine if San Franciscans had the choice of sending the check for their monthly electricity fees to one of two places. Option A is a massive private utility company, serving up fossil fuel-fired and nuclear-powered energy, presided over by a CEO who got paid nearly $9 million last year. Option B is a publicly-owned program run by local government that offers a substantial percentage of green electricity from sources such as wind, solar, and tidal power. In San Francisco, which one would people be more likely to pick?

The intent behind community choice aggregation (CCA) programs, which in San Francisco is known as Clean Power SF, is to make Option B a reality. If successful, the program would signify not just a major advance on the green front, but a dent in Pacific Gas & Electric Co.’s longstanding monopoly in the Bay Area.

The program development is inching along under the direction of the San Francisco Public Utilities Commission and the Local Agency Formation Commission (LAFCo). Sup. Ross Mirkarimi, who chairs LAFCo, has poured a tremendous amount of time and energy into the city’s fledgling CCA program.

So when a proposed state ballot initiative surfaced that threatens to thwart statewide CCA programs before they launch, Mirkarimi came out swinging hard.

Titled the "Taxpayers Right to Vote Act," the proposed initiative would require that any effort to create or fund a CCA program be ratified by two-thirds of the voters. The measure would erect an almost impossibly high barrier to CCA development around the state, effectively snuffing out PG&E’s would-be competition and sullying local governments’ plans to embrace publicly-owned, cleaner energy alternatives.

Mirkarimi wasted no time in drafting a resolution against the measure and submitting it to the Board of Supervisors, telling his colleagues that the utility’s proposal undermines years of effort "to allow municipalities to go ahead and chart their own energy destiny so they don’t have to be on the syringe of fossil fuel-driven corporations like PG&E."

He also took issue with the name of the proposal, calling it deceptive and misleading. "The point is that we should not be manipulated by measures such as this, where voters would be required to have a two-thirds vote on something the state Legislature has already allowed us to pursue," Mirkarimi said. "It’s our own right, and corporate special interests shouldn’t dictate otherwise." The state law that grants local governments the right to pursue community choice aggregation, which was sponsored by then-Sen. Carole Migden, specifically prohibits actions that impede the progress of a CCA.

PG&E’s name does not appear anywhere on the ballot-initiative proposal, but a spokesperson for the initiative confirmed that the utility had paid the submission fee. The law firm listed as a contact for the proposal, meanwhile, has been enlisted by PG&E before. And Robert Lee Pence, who is named as the proponent of the initiative, has teamed up with PG&E ally Townsend, Raimundo, Besler and Usher on campaign measures in the past. That Sacramento-based political consulting firm describes its strategic consulting services online with this brazen slogan: "Moving opinions is what we do best."

PG&E did not return calls for comment.

At the June 30 Board of Supervisors meeting, supervisors approved Mirkarimi’s resolution on a 10 to 1 vote, with Sup. Michela Alioto-Pier voting no. And while a resolution does little more than create a formal record of the board’s position on a matter, Mirkarimi seemed to suggest that it was only the start of a battle mounting against this proposal. "Don’t be surprised [if] a number of municipalities align themselves in potential litigation against this," he said.

Sup. David Campos, an attorney who also sits on LAFCo, hinted that the city could enter into litigation on the issue. "I hope the city is carefully looking at legal issues that might be raised by the actions of PG&E," he noted at the June 30 Board meeting. "I think that there are legal protections we need to avail ourselves of, and I hope the City Attorney’s Office, working with the Board of Supervisors, can make sure that the city takes all steps that it needs to take to protect its legal rights."

Campos later told the Guardian that he had not yet spoken with the City Attorney’s Office about it.

When asked about pursuing legal action, the City Attorney’s Office would only say that "we’re aware of it, and we’re evaluating what we will be doing," according to spokesperson Jack Song.

Barbara Hale, general manager for power at the San Francisco Public Utilities Commission, told the Guardian, "We have certainly been talking with other cities about the initiative." But Hale added that the agency hadn’t taken a formal position yet because it is so early in the process. "It hasn’t actually been placed on any ballots yet."

Since the initiative was submitted, public power activists across the state have taken notice. Jeff Shields, general manager of the South San Joaquin Irrigation District, has gone toe-to-toe with PG&E on public power issues before. One of the most memorable battles occurred when a political consulting firm hired by PG&E hacked into SSJID’s computers in the midst of a tug-of-war over control of the area’s electricity infrastructure — only to get caught by the FBI and publicly denounced by PG&E. "Obfuscation is PG&E’s middle name," Shields says. "I know there are lots of people looking at this initiative, but I don’t know that there’s a specific organizational effort against it at this time."

Jerry Jordan, executive director of the Sacramento-based California Municipal Utilities Association — a statewide organization representing 70 public utilities — told the Guardian that CMUA would oppose the initiative. However, "we may wait until it qualifies," Jordan said. The initiative is still in its earliest stages, and the attorney general has yet to certify it as legal to the secretary of state.

Meanwhile, efforts to move forward with the CCA model in other regions are floundering in these tough fiscal times. The San Joaquin Valley Power Authority voted June 25 to temporarily suspend its CCA, an effort in the works for years that had a goal of offering electricity to customers at lower and more stable rates.

Spokeswoman Cristel Tufenkjian said the greatest obstacle was a contract with CitiGroup’s energy branch that was marred by tight credit markets. "When things started to go south with the markets, CitiGroup said it could not execute that contract," Tufenkjian explained. She also added, "We are opposed to the initiative."

The SJVPA bid to create a CCA was also hindered by opposition from PG&E. "For the last few years, PG&E has continually placed roadblocks in front of our program in an attempt to stop us from implementing community choice and ultimately not providing residents and businesses the opportunity to have a choice about who will provide them electrical energy," said Ron Manfredi, city manager of Kerman and chair of the San Joaquin Valley Power Authority.

The Board of Supervisors’ resolution against the ballot initiative condemns such roadblocks and vows to push through this one. "PG&E has a history of acting to maintain its monopoly in its service region, including opposing public power initiatives at the ballot and lobbying officials of California cities [and] counties against community choice aggregation in apparent violation of the provisions [of state law]," the text of the resolution reads.

As this ballot initiative moves through the approval process, it’s clear that a battle is going to heat up very quickly. "I think we have to fight this as hard as we can," Campos told us. "PG&E has been unsuccessful in killing [CCA] here in San Francisco, but they have certainly delayed it. Now they’re trying to make sure it doesn’t happen anywhere else."

PG&E

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Fixing PG&E’s blackout problem: State law requires PG&E to pay claims for economic damage caused by system failures

Guardian Editorial

EDITORIAL The electricity that San Franciscans buy from Pacific Gas and Electric Co. isn’t just expensive — it’s unreliable. That’s what figures from the California Public Utilities Commission show (see story below). In fact, PG&E has more blackouts than any of the public power agencies in the Bay Area.

That has a significant impact on local businesses — but neither City Hall nor the small business community is paying much attention to a multimillion dollar problem.
Click here to continue reading editorial.

The blackout factor: PG&E’s poor reliability record costs businesses millions
By Megan Rawlins

Noel Birbeck makes signs. In a low, nondescript building tucked into a south of Market side street, a printing machine spits out personal greetings and corporate messages in all colors, shapes, and sizes.

Until the power goes out.

“We print things that are up to 50 feet long,” said Birbeck, the business manager of Budget Signs. “If the power goes out at foot 35, we have to start the printing process all over and throw out all that time and money that went into the initial printing.”
Click here to continue reading.

PUC nomination delayed

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By Tim Redmond

The nomination of Anson Moran for a seat on the San Francisco Public Utilities Commission was delayed today after Sup. David Campos asked for more time to review Moran’s record.

We’ve argued against the nomination, as have many public-power advocates. There is, of course, the argument that Moran is better than some of the turkeys Mayor Newsom might put forward and at least has some qualifications for the job. But on balance, this is someone who, when he had a chance as the agency’s general manager, did his best to sabotage public power.

After the jump is an excerpt from a detailed chronology of the PG&E/Raker Act scandal that we did back in 1997. The entire chronology — the most detailed history of the scandal every published, as far as I know, is available here.

PG&E attacks consumer choice

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rebeccab@sfbg.com

A ballot initiative backed by Pacific Gas and Electric Co. could amount to a death sentence for community choice aggregation (CCA) and expanded public power in California.

Dubbed the Taxpayers Right to Vote Act, the proposed initiative would require a two-thirds majority vote at the ballot before any local government could establish a CCA program, use public funding to implement a plan to become a CCA provider, or expand electric service to new territory or new customers.

The new hurdle would make it very difficult for a local government to move forward with a CCA, while at the same time making it much easier for a utility to defeat public power at the ballot.

Signed into state law in 2002, CCA allows local governments to buy up blocks of power to sell to residents, making it possible for cities and counties to set up alternatives to private utilities such as PG&E and, in many cases, to offer electricity generated by clean, renewable power sources.

The initiative is in its earliest stages, and it likely would not be placed on the state ballot until the June 2010 election. At this point, "it’s unclear how much of a campaign it’s going to be," according to Greg Larsen of the Sacramento public relations firm Larsen Cazanis, a spokesperson for the effort. "It’s a long way off."

That hasn’t stopped local CCA supporters from sounding alarm bells. "Urgent/Bad! PG&E State Ballot Measure To Kill Public Power & CCA," public power activist Eric Brooks wrote in the subject line of a widely disseminated e-mail last week. "It’s red alert time boys and girls," he wrote, saying the proposal "will kill all new Public Power and Community Choice Aggregation projects statewide."

Brooks isn’t alone: everyone the Guardian spoke with who is involved in the creation of San Francisco’s CCA voiced concern that the proposal could kill any future community choice efforts.

The proposed initiative was submitted to the California Attorney General’s office May 28 with the contact listed as the Sacramento law firm Nielsen, Merksamer, Parrinello, Mueller & Naylor, a powerful player with a long history of working with PG&E on ballot initiatives. Larsen confirmed that PG&E had provided the $200 filing fee, the only amount spent so far on the embryonic proposal.

The official proponent of the initiative is Robert Lee Pence, apparently the same person who was listed as an opponent of Proposition 80, a 2005 ballot measure that dealt with utility regulation. Opposition to Prop. 80 was heavily funded by PG&E and other utilities, and the initiative failed by a wide margin.

Pence’s group, Californians for Reliable Electricity, listed Steve Lucas as a contact on 2005 campaign documents. Lucas is also listed as the point person at Nielsen, Merksamer, Parrinello, Mueller & Naylor for questions regarding the Taxpayers Right to Vote Act.

The address listed for the organization is the same as that of Townsend, Raimundo, Besler and Usher — a Sacramento political consulting firm that also has a long history of working with PG&E on political campaigns. When asked about the PR firm’s role in the Taxpayer Right to Vote Act, Larsen acknowledged that they "may be involved as the campaign goes forward," but cautioned that any discussion so far has been preliminary.

The rationale behind the initiative is to protect taxpayers, Larsen said, because CCA programs "are major issues that communities undertake and require millions or billions of public dollars." The proposed initiative, he said, seeks to "ensure that voters — and frankly, their descendents — who will wind up being responsible for these programs have a say." If the measure passes, Larsen added, voters could still approve CCA programs — but with two-thirds of the vote, a supermajority that he contends is "staying in line with many other California requirements."

California Sen. Mark Leno, however, has a very different opinion. "I would hope that Californians would have come to understand that two-thirds vote thresholds are probably more responsible for damage to the state of California in the past 30 years than any other single factor," he said. "To hand a small minority controlling power is anti-democratic. This must be defeated." Leno also said he believes that the initiative would have drastic consequences for CCA programs if it passes.

Meanwhile, local CCA supporters say there is more to this than merely sticking up for taxpayers’ rights. If programs like Clean Power SF — the CCA initiative currently being developed in San Francisco — are fully implemented, then PG&E, which makes good money from its monopoly status, would face some actual competition. Naturally, the powerful utility would have an incentive to eliminate the alternative altogether.

Under the current system, PG&E "has to rely on the elected officials to kill CCA, and its much harder … to do that," says John Rizzo of the San Francisco Bay Chapter of the Sierra Club. But if the Taxpayers Right to Vote Act is enshrined in state law, "they could just pour in money and spread propaganda. Particularly the two-thirds requirement is just outrageous — it basically makes it impossible" to secure approval for any step toward CCA implementation.

"It’s a nasty ballot initiative," Mike Campbell, director of San Francisco’s CCA at the Public Utilities Commission, told us. "I think it’s clearly aimed at the heart of CCA." Campbell added that while he has been in discussion with SFPUC staff and others involved in hammering out Clean Power SF, he wasn’t at liberty to discuss a strategy for fighting the proposed initiative just yet.

Ross Mirkarimi, who chairs the city’s Local Agency Formation Commission — the body tasked with working in tandem with the SFPUC to implement San Francisco’s CCA — called the proposal "heinous — and yet I expect nothing less from PG&E.

"They can try to win by well-funded misinformation blitzkrieg," Mirkarimi noted. "If they’re able to spend $10 million without blinking here in San Francisco [on defeating a public power measure], they’re poised to spend tens of millions on this. As a state battleground, this elevates the fight that much more. We have to act in solidarity with other municipalities. We should be well-armed in repudiation of this effort."

There may be ways to attack the initiative in advance. The CCA legislation bars private utilities from seeking to undermine local CCA efforts. Assembly Member Tom Ammiano told us that the Legislature should look at how PG&E could be blocked from mounting a statewide effort to kill CCAs. "I think there’s some potential there," he said.

Julian Davis, who chaired the Prop. H campaign for public power last year, said he found the proposal very worrisome. "If you shut down community choice, you’re shutting down one of the major vehicles for clean energy," he said. To Davis, the initiative highlights "a disturbing trend of corporate America finding ever-more clever ways of tying the hand of local government in general. You know they’ll dump millions into this," he added. "The ultimate irony here is that none of us have the right to vote on anything PG&E does. None of us has a seat at the PG&E board table. It’s doublespeak."

Rachel Buhner contributed to this report.

Stop PG&E’s alarming ballot measure

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EDITORIAL One of the greatest threats to public power in a generation is quietly working its way toward the California ballot.

As Rebecca Bowe reports on page 12, a proposed initiative that would require two-thirds of the voters to approve any sort of public electricity measure, including community choice aggregation (CCA), has been submitted to the state attorney general’s office. And Pacific Gas and Electric Co.’s fingerprints are all over it.

There’s no doubt whatsoever that this measure is designed to derail successful CCA efforts in places like Marin County and San Francisco, where the supervisors are moving forward to set up the equivalent of a buyer’s co-op for electricity. A San Francisco CCA would offer lower costs and much greener power — and would give the city far more control over its energy future.

The measure could also hamper the efforts of existing public power agencies to expand their territories or offer service to new customers.

The state Legislature approved a bill back in 2002 allowing California cities to replace private utility service with CCAs — and the bill included language barring PG&E and the other giant electricity companies in the state from spending money to undermine CCA efforts. In other words, it’s illegal for PG&E to use its immense resources and lobbying clout to try to block San Francisco’s efforts.

And PG&E has spent tens of millions of dollars in San Francisco, Davis, and elsewhere trying to block public-power programs.

So now the utility is going to the state ballot, where a campaign with enough money on an issue that’s sufficiently complicated can often pass. The law firm that filed the initiative papers, Neilsen Merksama (a political powerhouse that represents, among others, PG&E) won’t divulge much about the funding sources — except to say that the filing fee came from … PG&E. So there’s little doubt the measure will have the funds it needs to gather more than 600,000 signatures and mount a campaign of lies and disinformation.

That’s why supporters of CCAs and public power need to rally, now, to start planning to defeat this thing.

Mustering a two-thirds majority at the ballot for almost anything is difficult. Even in liberal San Francisco, bond measures requiring a two-thirds vote often pass only narrowly — and that’s if there’s no opposition. Even the most popular sorts of measures — say, for funding schools or libraries — can go down to defeat if anyone mounts serious opposition.

And PG&E, with its unlimited resources, would have the ability to kill the current CCA plans — or anything in the future that threatens the company’s illegal monopoly.

The two-thirds majority requirement is undemocratic and has paralyzed state government. Two-thirds mandates for new tax measures have made it almost impossible for cities and counties in this state to raise new revenue, even in desperate times like these.

The San Francisco supervisors need to immediately pass a resolution opposing the measure. Assembly Member Tom Ammiano and state Sen. Mark Leno have told us they oppose it, and they should see if there’s any way the Legislature can add language to the CCA bill to bar regulated utilities from spending money to undermine public power statewide. The San Francisco Public Utilities Commission should be talking to public power agencies all over the state and helping organize the opposition. If the measure makes it onto the ballot, the Sacramento Municipal Utility District, the Los Angeles Department of Water and Power, and every other municipal utility agency in the state will need to raise money — millions — and marshal forces against it.

This is a very serious threat, and the time to start defusing it is now. *

P.S.: Mayor Newsom has nominated Anson Moran, the former general manager of the San Francisco Public Utilities Commission, for a seat on the commission. This is a terrible idea. Moran had a notoriously anti-public power record when he was running the agency. In fact, in 1994, he tried to stop the city from bidding on the lucrative contract to supply electricity to the Presidio, saying that going up against PG&E would be "too political." And although he later said he would be willing to bid on the contract, he privately urged then-Mayor Frank Jordan to veto then-Sup. Angela Alioto’s measure pushing for public power at the Presidio. With all the battles over CCA and public power, the last thing the city needs is a PG&E call-up vote on the PUC. The Rules Committee hears the nomination June 18, and should vote to reject him.

PG&E’s new attacks on public power

2

B3: ON guard! PG&E is quietly moving on several fronts to lock up its illegal private power monopoly in San Francisco and keep San Francisco from generating its own public power and moving to enforce the public power mandates of the federal Raker Act. Rebecca Bowe reports on PG&E’s ballot initiative that could kill community choice aggregation (cca) and kill public power moves in San Francisco Meanwhile, Mayor Gavin Newsom, who is running as the PG&E candidate for governor, put up Anson Moran, a callup vote for PG&E, to the San Francisco Public Utilities Commission. And the PUC is working with PG&E and Mirant to bring more dirty fossil fuel power into San Francisco on the Transbay Cable.

Tip: pin down Newsom and pin down the supervisors and everybody who is running for mayor on these critical PG&E moves. After all, in this budget crisis, public power is the largest potential source of new revenue for San Francisco (upwards of $300 million a year) and public power would stop the enormous financial drain of PG&E’s expensive private power (PG&E yanks upwards of $650 million a year out of the local economy in high rates.)

PG&E’s new attacks on public power

The ability of cities to switch to public power could be eliminated if a proposed state ballot initiative moves forward

By Rebecca Bowe
rebeccab@sfbg.com

A ballot initiative backed by Pacific Gas and Electric Co. could amount to a death sentence for community choice aggregation (CCA) and expanded public power in California.

Dubbed the Taxpayers Right to Vote Act, the proposed initiative would require a two-thirds majority vote at the ballot before any local government could establish a CCA program, use public funding to implement a plan to become a CCA provider, or expand electric service to new territory or new customers.

Click here to continue reading.

Editorial SOS: Stop PG&E’s alarming ballot measure

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And stop Anson Moran, a PG&E callup vote, from getting a Mayor Newsom appointment to the San Francisco Public Utilities Commission. (See footnote) And scroll down to see the Rebecca Bowe story disclosing how the Transbay Cable would bring dirty PG&E power from a PG&E substation in Pittsburg to a PG&E substation at Potrero Hill.

EDITORIAL
One of the greatest threats to public power in a generation is quietly working its way toward the California ballot.

As Rebecca Bowe reports, a proposed initiative that would require two-thirds of the voters to approve any sort of public electricity measure, including community choice aggregation (CCA), has been submitted to the state attorney general’s office. And Pacific Gas and Electric Co.’s fingerprints are all over it.

There’s no doubt whatsoever that this measure is designed to derail successful CCA efforts in places like Marin County and San Francisco, where the supervisors are moving forward to set up the equivalent of a buyer’s co-op for electricity. A San Francisco CCA would offer lower costs and much greener power — and would give the city far more control over its energy future.

Editor’s Notes

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› Tredmond@sfbg.com

The absolute most stunning statement of how messed up the state of California is emerged last week from the state director of finance, explaining why the proposed budget cuts fall so heavily on services for the poor. Let me quote directly from The New York Times:

"Government doesn’t provide services to rich people," Mike Genest, the state’s finance director, said on a conference call with reporters on Friday. "It doesn’t even really provide services to the middle class.

"You have to cut where the money is," he added.

Um … government doesn’t provide services to rich people? What about, say, the roads they drive on, and the airports they fly in and out of? What about the vast sums the state spends putting out fires that threaten wealthy enclaves in Southern California? What about the public education system, which trains workers for businesses? What about the entire criminal justice system, which exists to a significant extent to prevent poor people from taking rich people’s money?

Do you think Sergey Brin and Larry Page would have become Google billionaires if the Internet — developed and paid for by the government — didn’t exist?

No. Federal, state, and local governments all spend money on services for the rich. And by and large, those services don’t get cut when budgets are busted, and by and large, the rich don’t pay their fair share for the services they get — and by and large, nobody in politics talks about that when these nasty decisions get made.

It doesn’t have to be this way. Let’s just remember that as 900,000 kids lose their health insurance and California becomes, in the words of Mayor Gavin Newsom, the first state in the industrialized world to have no welfare system at all. It doesn’t have to be this way.

Cutting services for the poor, as opposed to cutting things rich people want and need, or making them pay a tiny bit more to keep society stable, is a political choice.

The American Federation of State, County, and Municipal Employees just put out a fascinating document looking at alternatives to the governor’s cuts — including a bunch of things that can be done without the two-thirds vote required to raise taxes. There are, for example, about $2.5 billion worth of useless and wasteful tax loopholes identified by AFSCME that could be closed (hurting the rich, helping the rest of us). That would save a lot of health and welfare programs.

San Francisco has choices, too. Downtown parking fees hit wealthier people; Muni fare hikes are a tax on the poor. A congestion management fee on downtown would overwhelmingly hit wealthier commuters; cuts in public health overwhelmingly hit the poor. The Tenderloin’s Community Justice Center hurts low-income people (and helps rich tourists and the hotels scare away the homeless).

The thing that kills me is that some of us have been saying over and over — for years and years — that the city needs to develop a better tax system (which will require a public vote) to minimize these cyclical crises. And some of us have been pointing out that a public power system would generate several hundred million a year (and that private power is sucking $600 million a year out of the local economy).

Do we have to keep blundering from disaster to disaster? For how long?

*

PG&E’s latest malevolence

1

By Steven T. Jones
shameonpge.jpg
Image of environment justice protest from Greenaction.org

As the Bay Guardian has documented for over 40 years, Pacific Gas & Electric Company has a sordid history of malevolent actions, including illegally cheating San Franciscans out of public power (from its initial violation of the federal Raker Act to its record-setting sums spent to defeat public power initiatives), corrupting local politics, lobbying against higher clean energy standards and consumer empower measures at all levels of government, greenwashing its dirty power portfolio (including the state’s largest nuclear power plant), transferring billions in ratepayer money to its parent company just before its utility declared bankruptcy (the lawsuit over which was recently dropped by Attorney General Jerry Brown, to his shame), screwing the city and ratepayers and then aggressively fighting the myriad resulting lawsuits, and on and on.

But now, we can add to the list mistreatment of its own employees. PG&E has reportedly ended negotiations with its Engineers and Scientists of California Local 20 labor union and announced its intention to unilaterally implement its final offer. The move has enraged both that union and its brothers and sisters on the larger House of Labor, which will be rallying and picketing outside PG&E headquarters at 77 Beale Street tomorrow at noon.

Recurrent debacle

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By Julian Davis

(Julian Davis is on the board of San Francisco Tomorrow, an urban environmental organization. He chaired last November’s Clean Energy campaign, prop H.)

In the wake of Tuesday’s vote on the Recurrent solar power deal for the Sunset Reservoir, long time progressive activists have to ask themselves, what happened?

A widespread commitment to positive government courses through the veins of San Francisco’s political community. Whether it’s defending the public health care system against cuts or the perennial advocacy of public power, one thing that unites progressives is a belief that government should work for the people and that corporate special interests have no place dictating or writing the terms at City Hall.

Send the solar project back to committee

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By Tim Redmond

We’re all in favor of buidling a solar-energy generating station on the Sunset reservoir. But the plan that’s coming before the Board of Supervisors today is deeply flawed. At best, it ought to be amended to ensure that the city winds up with the power plant after seven years at an affordable rate; at worst, it ought to be scrapped and the city should start over again, with the idea that this is and ought to be a public-power project, built and run by the city.

“I don’t understand how we can keep talking about public power while we give these resources over to private businesses,” Sup. David Campos told me. He’s right.

He and Sup. Ross Mirkarimi are trying to slow this thing down. Sup. John Avalos voted for it in the Budget Committee, but told me he’d consider sending it back for more discussion. I hope he does that; this thing isn’t ready for approval at this point, and the progressives on the board ought to stick together and make sure it’s a better contract.

Otherwise we’ll wind up with a private company controlling local energy resources, and Gavin Newsom trumpeting it as his latest environmental triumph.

Energy deficiency

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More in this issue:

>>Fed money for green jobs?

>>Green living resource guide

rebeccab@sfbg.com

As the window of opportunity for averting the worst-case global warming scenarios narrows, wise use of energy seems increasingly urgent. So millions of dollars in state and federal funding and significant contributions from utility customers are devoted each year to improving energy efficiency in California.

It’s a crucial program designed to reduce consumption and planet-damaging emissions and eliminate the need for new fossil-fuel burning power plants. Yet the state’s energy-efficiency programs are often run by investor-owned utility companies, such as Pacific Gas & Electric, that have been missing efficiency targets yet demanding ever more public money anyway.

Critics say the programs would yield more energy savings on the dollar if local governments or nonprofits were in charge. The utilities have not only fought to maintain control of these programs, they’re now seeking even more taxpayer money by trying to claim federal economic stimulus funds.

Meanwhile, the San Francisco Public Utilities Commission is engaged in a long, slow process of rolling out an ambitious community choice aggregation (CCA) program, Clean Power SF, which would utilize 50 percent renewable energy and promote green technologies in the city.

While state law guarantees that energy-efficiency funding generated by San Franciscans could be funneled into Clean Power SF, it isn’t likely to happen without a fight from the state’s most powerful utility.

AN ‘A’ FOR EFFORT


Although PG&E and other utilities are entrusted with millions in ratepayers’ money to promote energy efficiency, independent analysis demonstrates that they’ve had limited success. But last December, they garnered rich rewards anyway, at ratepayers’ expense.

In 2007, the California Public Utilities Commission adopted a system to encourage utilities to strive for high energy efficiency standards. Utilities could receive hearty payouts for achieving a certain threshold of energy savings, the commission decided. Conversely, if the companies failed miserably, they’d be slapped with penalty fees. Rather than take the utilities’ word for it, the CPUC directed its Energy Division to inspect the companies’ energy efficiency program performance and report on it each year.

About a third of the funding for these programs is amassed with a mandatory fee on every ratepayer’s monthly energy bill, called the Public Goods Charge. This is combined with a second pot of ratepayer money and collected by utilities to fund initiatives such as rebates, light-bulb discounts, energy retrofits, and consumer-education drives. The program budget for all the utilities from 2006 through 2008 was around $2 billion. For the 2009 to 2011 program, the utilities are collectively seeking closer to $4 billion.

Last December, based on the utilities’ own claims that they’d hit the targets for the 2006 — 2007 program, the CPUC handed over nearly $82 million in incentive payments — with some $41 million going to PG&E. The commission accepted the utilities’ claims because the Energy Division’s verification report was behind schedule, and the utilities argued that this delay would postpone their payments and thus undermine the whole incentive.

At the same time, the commission noted, "We have profound concerns that accepting the [utilities’] proposal … would subject ratepayers to significant risk of overpayment." In an attempt to strike a balance, the CPUC voted to award $82 million rather than the $152.7 million that the utilities claimed they were owed.

But the independent report, which was finally released two months later, concluded that PG&E and two other utilities shouldn’t have been entitled to any incentive payments at all. Based on this analysis, they’d missed the targets.

The move drew criticism from groups like The Utilities Reform Network (TURN), Women’s Energy Matters, and the California Public Utilities Commission’s Division of Ratepayer Advocates, which charged that investor-owned utilities are more concerned about the payouts they receive for running these programs than maximizing energy savings.

"They didn’t seem troubled by the fact that they hadn’t met the goals. They were only troubled by the fact that they weren’t going to get the financial reward," said Mindy Spatt, communications director for the Utility Reform Network (TURN). "I suppose there’s a message in there about just how seriously they take energy efficiency."

Loretta Lynch, a former CPUC commissioner, told the Guardian that she’d been watching the proceedings closely. "They had already promised Wall Street they were going to get this money, and so they had to meet Wall Street’s expectations regardless of whether or not they met the technical requirements of the program," Lynch said.

The CPUC’s Division of Ratepayer Advocates opposed the decision to award the incentive money. "[The utilities] are being rewarded for something they say they’ve done, but that independent analysis shows they just didn’t do," DRA Regulatory Analyst Thomas Roberts told the Guardian. "It’s like rewarding a student for getting a D."

Part of the problem is that PG&E’s program relied heavily on giving away compact-fluorescent light bulbs, and then the utility inflated estimates for how much energy savings they would provide and how long they would last. In other words, CFLs are a good first step to energy conservation, but not enough to make the greatest strides in reducing demand.

Roberts also said PG&E often delivered the bulbs to what he called "free riders," or people who would’ve made the switch on their own. TURN once discovered a box of light bulbs posted on eBay by some crafty entrepreneurs who had purchased them at a discount, courtesy of PG&E. At that point, the bulbs could have wound up anywhere in the country, Spatt points out, instead of reducing electricity demand in California.

"There is no clear connection that we are not building new power plants due to energy efficiency programs," said Cheryl Cox, senior policy analyst and project manager for energy efficiency at the CPUC’s Division of Ratepayer Advocates. "And we do not appear to be on track to achieve long-term, persistent energy savings. Given the dependence of energy efficiency portfolios on short-term savings like lighting, it appears that the utilities would have to spend additional dollars to play catch-up — yet they persist on proposing the same old, non-progressive, CFL programs."

WHO’S IN CHARGE OF YOUR SURCHARGE?


For some, the incentive payouts provided new fuel for a longstanding argument that utilities shouldn’t be in charge of administering state-mandated energy efficiency programs in the first place. Barbara George, executive director of Women’s Energy Matters, points out that states with financially disinterested third parties managing energy efficiency measures tend to be more careful with the money they’re granted, resulting in more energy savings per dollar.

She points to a report completed by analyst Richard Estevez, which ranked 37 statewide energy efficiency programs by cost-effectiveness. "Non-utility implemented programs make up 18 out of the top 20 rankings; utility-implemented programs make up 15 out of the 17 poorest rankings," that report concludes.

Under the current system, "PG&E makes a profit on every dollar," says Lynch. "In addition, all of PG&E’s costs are covered. Then, of course, all the subcontractors’ costs are covered too, so it gets down to only 50 or 60 cents of every dollar that is actually going into programs. The rest of the money is going into PG&E’s profit, PG&E’s overhead, and the subcontractors’ overhead. Not surprisingly, if you’re a nonprofit or a government, you’re doing that service directly at no profit and lower administrative costs."

Paul Fenn, a consultant to Clean Power SF, sounds a similar note. In his view, PG&E "doesn’t want to reduce energy consumption. Why? Because every year, they go to their shareholders and they predict next year’s load growth. That’s their business. They burn gas, and they sell power. They’re a gas and electric company. The idea that a gas and electric company could be adequately incented to reduce their sales is naïve."

Fenn is the founder of Local Power, Inc. and the author of Assembly Bill 117 — a state bill passed in 2002 under the sponsorship of then-Assembly Member Carole Migden that allows municipalities to set up community choice aggregation programs. Local Power has been a key player in San Francisco’s own embryonic CCA.

AB 117 also gave cities the option to gain control of Public Goods Charge funds generated by their own ratepayers. In SF, that would mean funneling roughly $18 million annually into Clean Power SF’s energy efficiency budget.

Sup. Ross Mirkarimi, who chairs a committee overseeing the CCA implementation, told the Guardian he supports the idea. But he warned that the city probably wouldn’t be able to wrest the funding away from PG&E without a fight. "It’s completely appropriate for city government to be in charge of those funds," he says. "PG&E shouldn’t be in the driver’s seat with all that money anyway."

San Francisco is already hailed as a green city, but Clean Power SF, which has renewable energy as its centerpiece, would set a new standard for what cities can do to address climate change. The plan calls for 50 percent renewable energy, compared with PG&E’s energy mix of 11 to 12 percent renewable power. The SFPUC is slated to present CCA program plans to the state next year.

SFPUC’s Michael Campbell, the CCA program director, rejects the idea of going after Public Goods Charge funds just yet. "It’s premature to do that now," Campbell says. "About one-third of the energy efficiency dollars that PG&E collects … come from Public Goods Charge, and the other two-thirds are charges associated with procurement portions of customers’ bills. If a CCA were formed … to have an equal amount of dollars, we would need to have additional charges to CCA customers that would be associated with the energy portion of their bill."

Yet Fenn said applying to administer those funds is long overdue. Not knowing whether that $18 million is in place every year could derail the CCA bidding process, Fenn argues, since it would be difficult for prospective power suppliers to draft a plan if they lack clarity on the program budget.

The other problem, Fenn said, is that without the energy-efficiency funds, it would be harder for the city’s CCA to get its rates down low enough to compete with PG&E. Given the CCA is required to beat PG&E rates, it could make or break the success of the project.

"Energy efficiency is the cheapest resource," Fenn said. "It helps the economic feasibility of the portfolio by creating surplus revenue. If you’re just doing green supply, and not green load reduction, it’s going to be really hard not to pay more than PG&E."

BROUGHT TO YOU BY PG&E


While Clean Power SF lags, energy efficiency programs are percoutf8g throughout the city — usually touted by Mayor Gavin Newsom and funded through public-private partnerships with PG&E.

In a recent post on TriplePundit.com, Newsom announced the creation of an Existing Buildings Efficiency Task Force — composed of landlords, developers, PG&E, and other downtown interests — tasked with greening buildings and creating green jobs.

"The Task Force builds upon a great deal of work we’re doing already — taking full advantage of the $7 [million] to $11 million provided in energy efficiency block grants by the federal stimulus, leveraging our ongoing … partnership with PG&E, and working with private partners to create a San Francisco Clean Energy Fund," Newsom wrote.

A recent initiative to install energy efficient streetlights in the Tenderloin is the result of another PG&E partnership. While there’s no doubt that these programs will have positive results, they also serve to further entrench PG&E into citywide green initiatives, which render it more difficult for Clean Power SF to gain footing further down the road.

With federal stimulus money flowing into state coffers, the utilities are back at the table, recommending to the CPUC that some of the federal funding go into their existing energy-efficiency programs. "We believe that the Recovery Act or ARRA funds should work in conjunction with [investor-owned utility] programs to minimize potential customer confusion and leverage the success we have had with the programs," Marc Gaines, a representative for the state’s four investor-owned utilities, said during a recent All-Party CPUC meeting to discuss the stimulus funds. "Rather than competing with the programs, we would like to use ARRA funding to supplement existing energy efficiency [and other] programs."

Not so fast, countered George, who stood up to speak during the meeting. "We have to worry about if these funds are commingled with current programs, are the utilities going to rake off profits?" she wondered. "These funds need to be used for authorized purposes, and not for fraud, waste, error, and abuse. The energy efficiency programs have been used to fight public power and community choice efforts. The competition is brutal when it comes to the utilities."

Gav for Guv! Do it to ’em, Newsom

7

A special Guardian endorsement

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POTUS here he comes!

California’s a tough place. It’s a state of clashing values — of coastal liberals who want good public services, environmental protection, and gay marriage and central valley conservatives who want nothing of the sort. It’s run by a fractious, divisive legislature that desperately needs a firm hand. It’s a state so big and complex that it has defied the abilities of generations of talented politicians, from Jerry Brown and George Deukmejian to Gray Davis and Arnold Schwarzenegger.

And yet, we refuse to give up on the Golden State. It’s been the Guardian‘s home since 1966, the place where we launched what would be the first alternative paper on the West Coast. It’s a place with endless possibilities, from sunshine to public power to tax reform, and we can’t risk its future on another worthless, wimpy chief executive.

That’s why we’re taking the unusual step of announcing an early endorsement for governor. We’re backing the only candidate strong enough, smart enough, sober enough, and secure enough in his own self worth and image to take on the Sisyphean task of running California. Today, we’re endorsing Gavin Newsom.

The mayor of San Francisco may look like a lightweight fop, but that’s unfair — we know him better. This is a young man who grew up cleaning toilets then went on to found his own successful business, using nothing but the wealth and connections of a billionaire family friend to help him. A man who has never spent a day in his life without comfortable surroundings yet developed a remarkable empathy for the less fortunate, and capitalized on their misery to promote his career. A man who travels the world in the company of movies stars and brilliant entrepreneurs, fearlessly promoting his home town while the rest of the whiney little twerps at City Hall just sit in committee meetings and bitch.

Losers.

Newsom’s platform is perfect for this state, at this time. He supports marriage; after all, he’s done it twice himself. He’s even gotten involved in the marriages of close friends and advisors! And he thinks the rest of us, no matter what our sexual proclivities, should have the right to be miserable too.

Newsom talks not just of change, but of "gigantic order-of-magnitude change." He thinks we should all come together to solve the state’s problems instead of pointing fingers of blame — and isn’t that just the sweetest?

The LA Times nails APRI

1

Fascinating story in the LA Times today about the A. Philip Randolph Institute.

It focuses on James Bryant, the APRI president who earns $117,000 a year from the nonprofit while also working full-time for the city as a Muni station agent (at $68,000 a year), who hired his son as a $62,000 acting executive director and who charged APRI $5,000 in rent for the use of his half-million-dollar house.

“There is just a conflict of interest all over this thing,” said Ken Berger, president of Charity Navigator, an online review service. “It looks like something that should be reported to a government entity.”

Daniel Borochoff, president of the American Institute of Philanthropy, said Joseph Bryant’s job — the son says his salary last year was $62,000 — is similarly troubling.

“In effect, it’s like putting himself on the payroll,” Borochoff said of James Bryant.

The story also notes that Bryant is on the executive board for SEIU Local 1021 and that there’s an internal union complaint against him.

But it mentions only in passing that APRI has received $290,000 from Pacific Gas and Electric Company since 2005, and tens of thousands more from Lennar Corp;, and in many ways, that’s the real scandal here.

Because APRI, named after the legendary African American trade unionist, has become little more than a shill for PG&E and Lennar. APRI worked against the public power campaign, worked against city efforts to install peaker plants (and thus compete with PG&E for energy generation), and worked in favor of giving Lennar control of the entire Bayview Hunters Point revedelopment project.

It’s a bogus astroturf front group for corrupt big businesses. That’s the real issue with Bryant and his sleazy organization.

Why is this guy chairing the political committee for Local 1021, a progressive union that has always supported public power? Now that the whole world knows that he’s PG&E’s guy, he should resign from that job.

Money talks

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› news@sfbg.com

The economy’s a mess, and the housing crisis, financial meltdown, and skyrocketing unemployment rates have left a lot of San Franciscans short of cash. But the flow of big downtown money into political campaigns hasn’t slowed a bit.

In fact, a tally of all 2008 monetary and in-kind political contributions logged in the SF Ethics Commission Campaign Finance Database shows that even in the face of the worst financial crisis since the Great Depression, money spent on local political campaigns in the city swelled to a whopping $20.6 million. That grand total, which does not include loans or so-called "soft money" like independent expenditures, is higher than that of any previous year recorded in the Ethics database, which tracks campaign spending back to 1998.

A review of the entire database paints of picture of how influence money flows in San Francisco: Six of the top 10 donors over the past 10 years are big businesses and downtown organizations that promote the same conservative political agenda. The campaign cash often wound up in the same few political pots — a handful of supervisorial campaigns and some coordinated political action committees.

And despite spending ungodly sums of money, downtown lost more races than it won.

More than half the total money spent in 2008 came from one source: Pacific Gas and Electric Co., which plunked down $10.2 million last fall for the No on Proposition H campaign against the San Francisco Clean Energy Act. That November ballot measure, which lost under PG&E’s barrage, would have paved the way for public power, initiating a process to make the city the primary provider of electric power in San Francisco with a goal of 50 percent clean-energy generation by 2017.

The powerful utility wasn’t only the biggest spender last year — it claims the No. 1 slot on a list of all campaign contributions spanning from 1998 to 2008, which the Guardian compiled using Ethics data. PG&E dropped a juicy $14.7 million into local political campaigns over that period, beating out runner-up Clint Reilly by more than $10 million.

Below are brief introductions to the 10 biggest spenders, 1998-2008.

They’ve got the power. The colossal sums PG&E has forked over to influence ballot measures over the years puts the utility in a category all its own. SF isn’t the only municipality where the company has poured millions into defeating a public power proposal. In 2006, when Yolo County put measures on the ballot to expand the Sacramento Municipal Utility District (SMUD), which would have edged PG&E out of the service area, the utility spent $11.3 million to try and keep it from happening.

Pay to the order of Clint Reilly. Reilly, the former political consultant, now runs a successful real estate company. While his name routinely comes up on the roster of campaign contributors, he owes his status as No. 2 to his 1999 campaign for SF mayor, into which he poured some $3.5 million of his own money. "Most of the money we give is for Democratic candidates or progressive politicians, or neighborhood-oriented issues," said Reilly, who also served as president of the board of Catholic Charities.

Committee on really high-paying jobs? Third in line is the Committee on Jobs, a political action committee that aims to influence local legislation affecting business interests. The PAC is bankrolled in part by the Charles Schwab Corporation, Gap, Inc., and Gap founder Don Fisher — all of whom surface on their own in our Top 30 list. With a grand total just shy of $3 million, the committee coughed up about $100,000 in campaign-related spending in 2008. Much of that funding went to similar political entities, including the SF Coalition for Responsible Growth, the SF Chamber of Commerce 21st Century Committee, and the SF Taxpayers Union PAC (see "Downtown’s Slate," 10/15/2008). This past November, the COJ also backed the Community Justice Court Coalition, formed to pass Proposition L, which would have guaranteed first-year funding for Mayor Gavin Newsom’s small-crimes court in the Tenderloin. Prop. L failed by 57 percent.

Bluegrass billionaire. San Francisco investment banker and billionaire Warren Hellman has dropped nearly $1.2 million over the years into local political campaigns, our results show. Dubbed "the Warren Buffet of the West Coast" by Business Week for his sharp financial prowess, Hellman co-founded Hellman and Friedman, an investment firm, in 1984. Hellman is known for putting on Hardly Strictly Bluegrass, an annual SF music festival. While he tends to contribute to downtown business entities such as the Committee on Jobs and the Golden Gate Restaurant Association, in 2008 he devoted $100,000 to supporting a June ballot measure, Proposition A, that increased teacher salaries and classroom support by instating a parcel tax to amp up funding for public schools.

Fisher king. Don Fisher, founder and former CEO of Gap, Inc., is another one of SF’s resident billionaires. While Gap, Inc. turns up in 17th place in our results, Fisher himself has poured more than $1.1 million into entities such as the Committee on Jobs, SFSOS, the San Franciscans for Sensible Government Political Action Committee, and other conservative business groups. Fisher’s total includes money from the "DDF Y2K family trust," a Fisher family fund that shows up in Ethics records in 2000. In that year, $100,000 from that trust went to support the Committee on Jobs’ candidate advocacy fund, and another $40,000 went to a pro-development group called San Franciscans for Responsible Planning.

Not a very affordable campaign, either. Sixth up is Lennar Homes, the developer behind the massive home-building project at Hunters Point Shipyard, which the Guardian has covered extensively. The vast majority of its $1 million reported spending was directed to No on Prop. F, a campaign sponsored by Lennar to defeat a June ballot measure that would have created a 50 percent affordable-housing requirement for the Candlestick Point and Hunters Point Shipyard development project. The measure failed, with 63 percent voting it down.

Chuck’s bucks. Charles Schwab Corp., which set up shop in San Francisco in the mid-1970s, is an investment banking firm that reports having $1.1 trillion in total client assets. The corporation ranks seventh in our Top 30 list, with some $973,000 in donations. In 27th place is Charles R. Schwab himself, the company’s founder and chairman of the board (and the guy they’re referring to in those "Talk to Chuck" billboards posted all over SF). If Schwab’s individual and corporate donations were combined, the total would be enough to bump Warren Hellman out of fourth place. Schwab’s dollars are infused into the Committee on Jobs, the San Francisco Association of Realtors, the Golden Gate Restaurant Association, SF SOS, and other downtown-business interest organizations. "We’re a major company here in the Bay Area and a major employer," company spokesperson Greg Gable told the Guardian. "We’re interested in political matters across the board — it’s not limited to any one party." But it’s limited to one pro-downtown point of view.

The brass. The San Francisco Police Officer’s Association is another major player, spending some $913,000 since 1998 on political campaigns. The organization backed candidates Carmen Chu, Myrna Lim, Joseph Alioto, Denise McCarthy, and Sue Lee for supervisors in 2008, contributions show. All but Chu lost.

At your service. SEIU Local 1021 and SEIU 790 crop up frequently in Ethics data, with a grand total of about $860,000 in spending over the years. SEIU representatives recently turned out en masse at a Board of Supervisors meeting to urge the supervisors to support a June 2 special election to raise taxes in order to boost city revenues and save critical services from the hefty budget cuts that are coming down the pipe.

Friends in high places. No real surprises here: the Friends and Foundation of the San Francisco Public Library contributed its money to, well, ballot measures that would have affected the library. In 2000, for example, the F and F plunked $265 thousand into an effort called the "Committee to Save Branch Libraries — Yes on Prop. A."

Top 30 San Francisco campaign donors, 1998-2008

1. Pacific Gas & Electric $14,831,486
2. Clint Reilly $4,138,089
3. Committee on Jobs $2,970,857
4. Warren F. Hellman $1,191,970
5. Don Fisher (incl. Don & Doris Fisher Y2K trust) $1,164,286
6. Lennar Homes $1,002,861
7. Charles Schwab Corporation $973,176
8. S.F. Police Officers Association $913,834
9. SEIU Local 1021 & SEIU Local 790 $860,979
10. Friends & Foundation of the S.F. Public Library $858,082
11. California Academy of Sciences $818,154
12. Residential Builders Association of S.F. $753,857
13. Steven Castleman $665,254
14. S.F. Association of Realtors $647,299
15. S.F. Chamber of Commerce $614,824
16. SEIU United Health Care Workers West & Local 250 $585,937
17. Gap, Inc. $573,959
18. California Issues PAC $556,238
19. Corporation of the Fine Arts Museums $541,474
20. Wells Fargo $464,899
21. Building Owners & Managers Association of S.F. $464,027
22. Bank of America $429,316
23. Golden Gate Restaurant Association $422,685
24. SF SOS $407,491
25. AT&T Inc. and affiliates $404,704
26. Clear Channel $391,783
27. Charles R. Schwab (individual) $362,250
28. Yellow Cab Cooperative $344,907
29. S.F. Apartment Association $280,376
30. San Franciscans for Sensible Government PAC $279,009

Bad budget ideas

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EDITORIAL There’s nothing easy about solving a half-billion-dollar budget shortfall, and most of the people involved in the grisly process of making the numbers add up at San Francisco City Hall know there will be blood on the floor. Labor unions representing city workers know there will be layoffs, salary concessions, or both. Community-based organizations handling critical front-line services know they’ll have to reduce staff and curtail their mission-driven operations. The supervisors know that a lot of good projects and great ideas won’t get funded this year.

The mayor, unfortunately, isn’t acting as if this were a crisis at all — he’s been out of town more than he’s been around the past few weeks. The San Francisco Chamber of Commerce and, sadly, some small business leaders, are refusing to accept the idea that taxes — some taxes, not enough to stave off deep cuts, but enough to prevent disaster — ought to be part of any budget package.

And along with the cuts — which, as Rebecca Bowe reports on page 11, will have far-reaching implications for San Franciscans — a number of really bad ideas have been floated, most of them quick fixes that would generate cash for now, but lead to serious problems later.

Among the worst ideas the mayor has put forward — in fact, it’s one of the worst budget ideas we’ve ever heard — is the notion of increasing the number of condominium conversion permits from 200 per year to 1,500 per year, and possibly allowing every property owner waiting for a conversion permit to get one, now, for a price.

It’s true that selling off condo conversion permits would bring in revenue. Raffling off building permits and planning code variances would bring in money, and so would selling development rights in city parks, and so would auctioning off appointments to boards and commissions. There are lots of stupid ways to generate cash, and the fact that a proposal would be lucrative is not by itself an argument in favor of it — even in times like these.

There’s a good reason the city limits condo conversions. Nearly every piece of property that becomes a condominium was once a rental unit, and the speculative pressure to take rent-controlled apartments and turn them into market-rate condos is immense. It’s bad enough that tenants — particularly those with relatively low rent — face eviction every day because of the state’s Ellis Act and the push by real-estate interests to create tenancies in common. Without conversion limits, the number of those evictions would soar; rent control would be eviscerated, the cost of housing would rise, and the economic cleansing of San Francisco would roll forward another few giant steps.

Newsom and his real-estate industry allies like to say that this sort of proposal is painless, since nobody has to pay higher taxes. Only people who want to convert their units, and are willing to pay a high fee for the right, would wind up paying. But that’s silly — the tenants of San Francisco would pay the cost — an immense cost — while the wealthier property owners made profits.

Selling off the taxi medallions (see "Don’t privatize the cab medallions, 1/21/09), another Newsom idea, fits in the same category. In the short term, it could bring millions into the city coffers. Long term, it would turn control of the taxi industry back to speculators and big companies, hurting the drivers and the public.

The mayor (and Sup. Sean Elsbernd) also like to talk about eliminating set-asides — those parts of the budget that voters have earmarked for particular purposes. But most of that money (the Children’s Fund, for example) goes to worthy programs: eliminating the "set-aside" protecting doesn’t save any money unless you cut those programs.

There are plenty of good budget ideas out there (see "Beyond the bloody cuts, 12/17/08). But the supervisors ought to make it clear that the bad ones are off the table.

PS: Where were all these anti-tax folks in the Chamber and the small business community, and supervisors like Elsbernd, when the city had a chance to bring in millions without any new taxes — by creating a public power system or raising utility franchise fees? They were siding with Pacific Gas and Electric Co. That’s part of the reason we’re in this fix.

The challenges for President Chiu

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EDITORIAL The ascension of Sup. David Chiu to the presidency of the Board of Supervisors gives a relative political newcomer considerable power. It also puts Chiu in position to carry on the legacy of Aaron Peskin and lead the opposition to Mayor Gavin Newsom’s pro-downtown, pro-Pacific Gas and Electric Co. agenda. Chiu, obviously, lacks the experience Peskin brought to the job, so he needs to move carefully at first. But he also needs to show that he’s more than a compromise candidate and that he has the ability to lead the board and promote the progressive agenda.

Let’s remember: Chiu was elected president entirely by the six progressive supervisors. The way the vote went down, five people, including Newsom’s closest allies, stuck together as a solid bloc and repeatedly voted for Sup. Sophie Maxwell. Maxwell had come down to the Guardian office a few days earlier to tell us that she was a solid progressive, but we saw the future of the board playing out when the votes were counted. Maxwell and Sup. Sean Elsbernd, who both have voiced concerns about the prospect of an inexperienced person taking the top job, could have broken with their bloc and voted for Sup. Ross Mirkarimi — that would have put him over the top. But through seven votes, as the progressives moved around trying to find a candidates all six could support, the Newsom Five stuck together. (Of course, if it hadn’t been for Sup. Chris Daly’s ill-conceived antics, Mirkarimi would have been able to get six votes, and we would have had an experienced leader in place).

Although Chiu talks (as he should) about bringing everyone together, he needs to keep in mind from day one that he is now the most visible member of a six-person board majority that can control the agenda and the set the tone for the city — if none of the six starts to drift toward the squishy center.

It’s going to be a rough, brutal year. The mayor has already made clear through his comments that he doesn’t even want to look at new revenue measures; he intends to solve the city’s half-billion-dollar budget crisis with cuts — deep, bloody cuts — alone. Chiu will have to stand up to him, publicly and privately, and make clear that a cuts-only budget isn’t going to fly in San Francisco.

And while Chiu will need some time to develop a leadership style and become familiar with the often-complex workings of the board, he should do a few things right away to show that he’s prepared to take on the difficult tasks ahead:

Support Peskin’s proposal for a special election in June. The proposal to allow the voters to consider raising taxes instead of just cutting is going to need a lot of help and support. The mayor opposes it, and some of his allies may oppose it too. But it’s absolutely crucial that San Francisco refuse to follow the lead of Gov. Arnold Schwarzenegger. It’s crucial that the progressives, while acknowledging that cuts will have to happen, also insist on looking at fair revenue ideas. Chiu needs to take the point on this.

In fact, now that the mayor and his allies on the board have made this a central battleground — and in effect have made this a litmus test for Chiu’s new presidency — it’s even more important that every one of the six progressive supervisors stands up to this challenge.

We’re not sure which of the dozen-odd tax proposals floating around is the right one. But it would be the worst kind of foolishness to take the whole idea off the table.

Put good people on the key committees. The Budget Committee at this point looks good, with Mirkarimi, Sup. John Avalos, and Elsbernd. When that panel expands to five members (and it should, soon) Chiu should make sure that either David Campos or Eric Mar joins the committee, keeping a progressive majority. The Land Use committee will be crucial as the Eastern Neighborhoods plan is implemented; Chiu needs to appoint a progressive chair and majority.

Save LAFCO. The Local Agency Formation Commission is the only board committee that has public power and energy policy as its primary agenda. Budget-cutters (spurred by PG&E, which more than any other company is responsible for the budget crisis) have made LAFCO a target; Chiu needs to make it clear immediately that LAFCO will remain in place, with strong appointments and a chair committed to making community choice aggregation work and pursuing public power as the largest potential new revenue source for the city.

Chiu has promised to work with the mayor, which is fine. But first he needs to show the progressives who elected him that he’s also ready to do battle.

Six aren’t enough

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› news@sfbg.com

The historic Jan. 8 vote electing Sup. David Chiu as president of the Board of Supervisors — rare for its elevation of a freshman to the post and unprecedented for a Chinese American — clearly illustrates the ideological breakdown of the new board.

The six supervisors who claim membership in the progressive movement (Chris Daly, Ross Mirkarimi, David Campos, John Avalos, Eric Mar, and Chiu) gave Chiu the presidency after their efforts to give it to Mirkarimi or Avalos fell short, while the other five supervisors voted for Sup. Sophie Maxwell in each of the seven rounds, refusing to support any of the progressive picks.

But there are limits to what a bare majority of supervisors can do in San Francisco, particularly when the mayor is threatening vetoes and the city is wrestling with a budget deficit of gargantuan proportions. Overriding a mayoral veto or approving some emergency measures requires eight votes.

So the first question is whether Mirkarimi and Daly can come together after their split divided progressives and led to Chiu as a compromise candidate. But the second, more important, question for progressives is whether they can attract swing votes such as Maxwell and Bevan Dufty when the need arises.

The answers to those questions could start coming immediately as supervisors consider proposals to close a looming $575 million budget gap, including the proposal for a special election on revenue measures in June. Mayor Gavin Newsom opposes that election, so the board would have to muster eight votes in the next month to move forward with it.

They might even need more than that. A confidential memo to supervisors and the mayor by the City Attorney’s Office that was obtained by the Guardian sorts out the complex requirements needed to approve new taxes, including the requirement of unanimous board approval to place tax measures that can be passed with a simple majority vote on the ballot this year.

So President Chiu, who pledges to bring his colleagues together, certainly has his work cut out for him.

 

POLITICS AND POLICY

Achieving a unanimous vote on anything significant or controversial seems impossible right now. Mirkarimi is unhappy with Daly for thwarting his presidential ambitions; Maxwell and Dufty are unhappy with progressives for keeping her out of their club; and Chiu must quickly learn his new job during a time of unprecedented turmoil.

Chiu told his colleagues that he was “incredibly humbled” by an election that he didn’t think he’d win, and said that he is “acutely aware that I am new to the institution and the body.” But observers say Chiu’s temperament, intelligence, and connections to both the business community and the progressive movement could serve the city well right now.

“I think Chiu is a great choice. He has the humility that will help him,” outgoing Sup. Jake McGoldrick told the Guardian.

This compromise pick for president was praised by all sides, from the progressive coalition that feted him after the vote at a party at the SoMa club Temple. Rob Black, government affairs director for the San Francisco Chamber of Commerce, told reporters that “David seems to be someone who is very willing to listen and willing to ask questions.”

“We have a progressive supervisor running the board,” Mirkarimi told the Guardian as he walked back to his office following the vote. Or, as Daly told us, “In the end, the progressive coalition stuck together and I’m happy about that.”

Walking back to Room 200 after the vote, Newsom told reporters that Chiu was “an outstanding choice” who represents “a fresh air of progress.” Asked whether he expects to have a better working relationship with Chiu than with outgoing president Aaron Peskin, Newsom replied, “That’s a gross understatement.”

“We’re looking forward to working with the new Board of Supervisors,” Newsom spokesperson Nathan Ballard told the Guardian after the vote. “The mayor has a long relationship with David Chiu. In fact, he was on our short list to be named assessor just a few years ago.”

Yet at the progressive party that night, Chiu sounded like a rock-solid member of that group, promising to help Mirkarimi with police reform, Campos with protecting undocumented city residents, Mar with strengthening city ties to the schools, and Avalos with safeguarding progressive budget priorities.

“I think this is the best outcome we could have,” Mirkarimi told the Guardian shortly after Chiu was elected. “I was the deciding vote that delivered Sup. David Chiu, the first Asian American president of the board. That doesn’t mean that the seasoned experience of Maxwell and myself wasn’t hard to pass by.”

In fact, both Dufty and Maxwell groused about the progressive bloc’s opposition to Maxwell, noting her positions on issues such as public power, affordable housing, and transportation issues. “The people that voted for me did so because they felt I would at least listen to them,” Maxwell told us, expressing frustration at not being accepted “by the board’s progressive clique” which, she noted, “are all males.”

“I think David will be great,” Dufty told the Guardian. “Obviously there was a desire to have someone strongly aligned with the progressive movement. I think it’s a mystery that Sophie isn’t considered part of the progressive movement.”

Progressives are going to have to work at resolving those differences if they are going to play a leadership role in the midyear budget cuts and prevent an expansion of the bloc of five supervisors who stuck with Maxwell and often align with the mayor.

“There has been tension between Ross and myself, but also between Sophie and Ross,” Daly told us. “Sophie is feeling that she might be a progressive, too. And some of the things we do on the board need eight votes. The rift between Ross and I is little. The real question is, when do we get Bevan and Sophie back?”

After fending off a progressive challenger in his reelection bid two years ago, Dufty seemed to move to the left, only to return to Newsom’s centrist faction — which mixes social liberalism with fiscal conservatism — in the last year. He prevented progressives from being able to override a mayoral veto of their decision to cancel $1 million in funding to Newsom’s Community Justice Center. And on Jan. 6, the old board delayed a vote on a mayoral veto of an ordinance that amends the Planning Code to require Conditional Use hearings and permits for any elimination of existing dwelling units through mergers, conversions, or demolitions of residential units, something sought by the tenant groups that are an important part of the progressive coalition.

Those issues, and the thicket that is the budget debate, illustrate what Daly admitted to us last week: “We can’t run this city with six votes.”

 

THE BUDGET MESS

The most pressing problem facing the new board is the budget, which requires $125 million in midyear cuts for the current fiscal year and will be an estimated $575 million out of balance for the fiscal year that begins in June. Chiu’s first move to deal with it — one lauded by progressives — was to name Avalos as budget chair.

“John Avalos has more experience on budget issues than me,” Daly, who chaired the Budget Committee for two years, said of his former board aide. But even Avalos was awestruck by the tsunami of bad budget news hitting the city, telling us, “I was visibly shaken.”

Mirkarimi and Elsbernd, the Budget Committee’s two other current members, also admit they face a daunting task.

“We can’t put a Band-Aid on the problem,” Elsbernd told the board last week. “This is not just about San Francisco now, but about San Francisco 20 years from now. We need to think about the next generation.”

Mirkarimi agrees with Elsbernd, at least in terms of the enormity of the problem.

“We cannot be incrementalist. We can’t dance around the edges,” Mirkarimi told his colleagues, shortly after making the surprise announcement that he’s expecting a child in April with Venezuelan soap opera star Eliana López, who he’s dated since meeting her last year at a Green Party conference in Brazil. Elsbernd and his wife are also expecting their first child.

Progressives strongly argue that such a large budget deficit can’t be closed with spending cuts alone, so one of Peskin’s final acts was to create legislation calling a special election for June 2 and having supervisors hold hearings over the next month to choose from a variety of revenue measures, but Newsom and the business community opposed the move.

“Basically, it’s not fully baked. It will take a citywide coalition (à la Prop. A) to win something like this and the coalition just hasn’t been built yet,” Ballard told the Guardian. Even Mirarimi echoed the sentiment, telling the Guardian, “I’m not opposed to a June election, but you can’t put something on the June ballot that’s half-baked because I doubt we could win in November if we put something half-baked on in June. My preference is that we work harder to create alliances to assure a healthy chance of getting something on the ballot and delivering a victory.”

Yet many progressives and labor leaders say it’s important to bring in new revenue as soon as possible, particularly because the cuts required by the current budget deficit would slash about half the city’s discretionary spending and devastate important initiatives like offering health coverage to all San Franciscans.

“For Healthy San Francisco to survive, the Department of Public Health has to have a minimum level of funding,” said Robert Haaland, a labor representative with the public employee union SEIU Local 1021. “Given the cuts that have been proposed, it’s not going to survive.”

While Peskin was criticized for acting prematurely, the City Attorney’s Office memo indicated that he couldn’t have waited and still allowed supervisors to play the lead role in determining what ended up on the June ballot. The memo was requested by Daly.

“In response to your specific inquiry about maximizing the amount of time a committee could deliberate the underlying measures and ensuring that the Board would have enough time to override a Mayoral veto, the emergency ordinance and the resolution calling for the special election should be introduced today,” the City Attorney’s Office wrote Jan. 6, the day Peskin introduced his revenue package.

Even then, supervisors would need to vote to waive certain election procedures, such as the 30-day hold for proposed ballot measures, and to move expeditiously forward with hearings, selection of the tax measures, and preparation of findings related to the special election and declaration of fiscal emergency.

The City Attorney’s Office wrote that the package needs final approval by Feb. 17. “We recommend that to meet this deadline, the Board adopt the resolution at its January 27 meeting and that the Mayor sign the resolution no earlier than February 2,” they wrote.

But Newsom has indicated that he would veto it, thus requiring eight supervisors to override. “Aaron had the right to do what he did, but in some ways he rushed the discussion, so it’s been a bit rockier than it otherwise might have been,” Dufty told us, noting that he’s still open to supporting a June ballot measure. “There is no way to avoid spending cuts, and we need more revenues and more givebacks from public employees … I think labor is spending a significant amount of time with the mayor, and he’s making a strong effort to work with the board. I’m trying to encourage us all to work together to the maximum extent possible.”

In fact, San Francisco Labor Council director Tim Paulson told the Guardian he couldn’t talk about the tax measures yet because of intense ongoing discussions. Ballard said Newsom might be open to tax measures in November, telling the Guardian, “Ideally we could do it all by streamlining government, reducing spending, etc. But the mayor lives in the real world and so he is open to the possibility of a revenue measure with a broad base of support.”

So, can the new board president help coalesce the broad base of support that he’ll need to avoid cuts that would especially hurt the progressive base of unions, tenants, social service providers, affordable housing activists, and others who believe that government plays an important role in addressing social problems and inequities?

“In light of the global meltdown, national slowdown, local crisis, and largest budget deficit in history, I believe this board understands the importance of unity and working together,” Chiu told his colleagues. “We don’t have time for the politics of personality when we have the highest murder rate in 10 years, when businesses are failing, and the budget deficit grows exponentially.”

Kucinich: How a utility blackmailed Cleveland

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Rep. Dennis Kucinich reports on how a big private utility and the banks in Cleveland tried to force him as then mayor of Cleveland 30 years ago to sell the city’s electric system, Muny Light, to the utility for what Kucinich calls a $50 million bribe. The Guardian was one of the few papers inside or outside of Ohio that at the time covered the scandal from a public power point of view.

I encourage you to read Kucinich’s account because it shows for San Franciscans, living in a city poisoned for decades by the ever more costly PG&E/Raker Act scandal, the lengths to which another private utility in a big metropolitan city will go to try to snuff out a public power system. Note also Kucinich’s point about how the private utility subverted the Cleveland media to back the utility in its brutal power play. It’s tough to go up against the private utility, their banking allies and the media, but Kucinich did it and ultimately won in Cleveland. B3

Truthdig.com Report: Rep. Dennis Kucinich on His Battle With the Banks

By Rep. Dennis Kucinich

Once they were as gods, but the deities of the American banking system are now in ruins, plunged from their pedestals into the maw of taxpayer largesse. Congress voted to give the banks $700 billion, lifting them temporarily out of their sepulcher of debt, while revealing a deep truth about the condition of America’s financial powers:

They never had the money they said they had as they constructed their debt-based monetary system which now lies in ruins. Their decisions on behalf of depositors, shareholders and investors were lacking in basic integrity and common sense. Green gods bailing out with their golden parachutes.

There was a time when their power was real. Come with me to Cleveland three decades ago.

Click here
to read the full article on Truthdig.com, where Kucinich is a contributing writer.

The class of 2008: an agenda

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OPINION Every few years, San Francisco’s political landscape is remade. But we, the new arrivals of the Board of Supervisors’ Class of 2008, know that the last decade of district elections helped ensure that the supervisors truly represent our neighborhoods and our shared San Francisco values.

Despite various efforts by special interests to paint us as out of step with everyday San Franciscans, the very strength of our campaigns was that they were rooted in the lives of actual residents who understood the choices before them. We campaigned on the best of our experiences — neighborhood activism, labor and community organizing, running nonprofits and small businesses, and championing public education and police accountability.

Despite our different districts and diverse constituencies, we rallied voters around real San Francisco values — the faith in the role of government to protect the most vulnerable and bring forth justice and equity; the trust in grassroots democracy and neighborhood-based activism; the pursuit of a safe and clean environment and sustainable development; the belief in the sanctity of immigrant, labor, and LGBT rights; the dignity of working families, seniors, and people with disabilities; and the pursuit of housing justice and economic opportunity for all.

While the Class of 2000 paved the way on many of these progressive values, we enter public office ready to build on this foundation while rising to the new and enormous challenges of today. San Francisco is not just facing a fiscal crisis; we are facing a quandary in which city government cannot do all that it aspires to do.

Our agenda is no less ambitious for the crisis we are in. It is because of the crisis that we need to create opportunity, direction, and hope where there is violence, confusion, and despair. Our San Francisco values mean that we will tackle public safety by addressing the root causes of violence by seeking rehabilitation and restorative justice and push for real police reform by promoting the kind of community policing that is built on relationships between neighborhood residents and the police.

Our San Francisco values prompt us to make our city budget more transparent. We will initiate new programs only with the certainty that important services are not cut in the process. We will do our best to protect critical frontline city workers from privatization and layoffs.

We will work collectively to maintain the city’s commitment to its public schools; promote public transit; foster sustainable development and new affordable housing connected to green and well-conceived public infrastructure; promote community choice aggregation and public power based on renewable energy; support local businesses and the hiring of San Francisco residents; safeguard our sanctuary city to make sure that immigrants can live free from fear of ICE raids; and fight to keep our vital neighborhood services working and our parks, libraries, and senior centers thriving.

We are committed to ushering in a new tone of cooperation and unity in San Francisco. Despite the enormous challenges and contending political views within the city family, we will work to ensure that our neighborhoods always win out over special interests. After all, politics is about improving the lives of everyday people. We look forward to working with you in this noble effort.

Supervisor John Avalos represents District 11. Supervisor David Campos represents District 9. Supervisor David Chiu represents District 3. Supervisor Eric Mar represents District 1.