Ross Mirkarimi

PG&E’s blank check

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› amanda@sfbg.com

For a complete list (2.35 MB) of everyone who signed on to a PG&E-paid ballot argument and a full list of all of the individuals, companies, and nonprofits that get PG&E money every year, click here (Excel).


It’s Saturday morning, Aug. 23, and at the plumber’s union hall on Market Street, Pacific Gas and Electric Co. employees are leading a rally in opposition to San Francisco’s Clean Energy Act. A table at the back of the room sags with urns of coffee and uneaten pastries. To the side are towers of glossy black "Stop the Blank Check" window signs. E-mails sent by event organizers said Sen. Dianne Feinstein and Mayor Gavin Newsom were expected to attend, but so far, there’s no sign of either.

"On behalf of the men and women at PG&E, thanks for giving up your Saturday," PG&E vice president John Simon tells participants, who will be spending the afternoon walking San Francisco’s streets passing out No on Proposition H propaganda.

But the audience isn’t listening.

Most of the people packed into the room are Asian kids, giggling and chatting and ignoring the English-only presentation. One group of boys playfully pushes each other, accidentally bumping into some stage lighting and earning a reprimand from a rally organizer. The kids ignore him. I ask some of the young people if they’re with a school or club, or if they’re part of JROTC, which has an informational booth in the vestibule. They look at me blankly and turn away, muttering in Cantonese. I question a few others and get similar responses.

Outside, I find a young man who speaks English. He tells me the kids aren’t really here for the rally. "It’s just a job," he says. They’re getting $15 an hour to hang flyers on doorknobs — flyers that read "hand-delivered by a Stop the Blank Check Supporter."

The Committee to Stop the Blank Check is the official campaign committee fighting the Clean Energy Act, which will appear as Prop. H on the November ballot. The group, however, is funded by a blank check from PG&E.

"They’ve pledged enough to educate every voter in San Francisco," the committee’s campaign manager, Eric Jaye, told the Guardian at the Saturday rally.

It’s no surprise that the campaign workers are paid for by PG&E — in fact, just about everyone who has come out against Prop. H seems to be getting money from the utility.

The Clean Energy Act sets ambitious goals for moving the city into renewable energy — goals that go far beyond current state mandates. It also calls for a study into San Francisco’s energy options and authorizes the city to issue revenue bonds to buy or build energy facilities.

An investigation into the elected officials, committees, and groups that oppose Prop. H shows cash from PG&E in nearly every coffer.

The official ballot argument against the Clean Energy Act is signed by Feinstein, Newsom, and three supervisors initially appointed to the board by the mayor: Michela Alioto-Pier, Carmen Chu, and Sean Elsbernd.

Feinstein’s loaded with PG&E money. Since 2004, Feinstein has received $15,000 in direct contributions from PG&E, according to OpenSecrets.org. More significant, perhaps, is that Feinstein’s husband, Richard Blum, serves as chairman of the board of CBRE, a real estate firm that did $4.8 million in business with PG&E in 2007, according to an annual report the utility files with the state of California.

Campaign finance disclosure statements from Feinstein state that her husband receives fees and income from CBRE, and has $250,000 and $500,000 in investment holdings.

Feinstein’s spokesperson, Scott Gerber, said there was no conflict of interest. But Citizens for Responsibility in Ethics spokesperson Naomi Seligman added, "The ethics rules are so incredibly narrow that unless Senator Feinstein was pushing or voting for something that would impact only Mr. Blum, it doesn’t count as a conflict."

Still: Feinstein’s getting cash directly from PG&E, and then doing the company’s political bidding.

NEWSOM’S PG&E PARTY


Newsom, who has won campaigns with PG&E’s financial support in the past, is hosting a party called "Unconventional ’08" in Denver this week. Guess who’s one of the three listed sponsors? PG&E. (The other two are AT&T and the carpenter’s union.) And, of course, the person running Newsom’s campaign for governor is PG&E’s main man, Eric Jaye.

Sups. Alioto-Pier and Elsbernd? Both had PG&E money shunted through independent expenditure committees. Sup. Chu is currently running to keep her seat in District 4.

Former Mayor Willie Brown tops the list of endorsers on Committee to Stop the Blank Check’s Web site. PG&E paid Brown $200,000 in consulting fees during 2007.

Neither Brown nor PG&E returned calls for comment and clarification on what exactly Brown’s consulting involves, or how much he’s getting this year.

Of the 30 paid ballot arguments that will be listed in November’s Voter Information Pamphlet, PG&E bought 22 of them — many for well-funded organizations like the Bay Area Council, Golden Gate Restaurant Association, and the Republican Party that could presumably pay for their own $2-per-word screeds against the measure.

The arguments all make the same points and parrot the same PG&E lines.

Jaye said that ballot arguments were routinely paid for by other entities, and of the groups that have healthy bank accounts, he said, "We’d rather those groups invest their money in capacity building for November."

The San Francisco Chamber of Commerce, the Building Owners and Managers Association, and Plan C all paid for their own ballot arguments. In 2007 the Chamber received more than $350,000 from PG&E in the form of dues and grants. BOMA got a $26,500 grant from the utility company, which also hired the outfit for almost $100,000 worth of consulting work. Plan C’s Political Action Committee regularly receives deposits from PG&E during election season.

Other entities that signed arguments paid for by PG&E include: the San Francisco police and firefighter unions, which are constantly asking the city for more money (and now oppose a potential revenue source); the Asian Pacific Democratic Club; the Small Business Network; the Rev. Amos Brown, and the Hispanic Chamber of Commerce.

Paying for their own No on H arguments: former San Francisco Public Defender and California Public Utilities Commission member Jeff Brown, the Coalition for San Francisco Neighborhoods, BART board member James Fang, and prominent small businessowner Harold Hoogasian.

PG&E spends millions each year on consultants — and at campaign time, that money turns into political support.

"PG&E’s philanthropy has been paying off into manipuutf8g a network of supporters who believe [Prop. H] is going to do something adverse to their interest when in reality it’s not," said Sup. Ross Mirkarimi.

Money isn’t everything for some organizations. Oakland’s Ella Baker Center for Human Rights received a $10,000 grant from PG&E in 2007. Cofounder Van Jones has endorsed the Clean Energy Act.

There’s no paper trail for how much PG&E has spent to date on this campaign and the utility will be free to spend money without scrutiny until Oct. 6, when the first financial statements related to the November election are due at the Ethics Commission.

THE OTHER SIDE


But PG&E can’t buy everyone — and the coalition supporting the Clean Energy Act is large, broad, and growing.

Prop. H has been endorsed by eight of the city’s 11 supervisors, Assemblymembers Fiona Ma and Mark Leno, and environmentalist and author Bill McKibben. Groups with a variety of different interests, like the League of Conservation Voters, the SF Democratic Party, SEIU 1021, the Harvey Milk LGBT Democratic Club, and the Senior Action Network also have given it a green light.

"I think the coalition for it is a much broader coalition than has been for it in the past," said Susan Leal, former head of the San Francisco Public Utilities Commission, who supports Prop. H. "Because of that, PG&E has ramped up the campaign and put a lot more money into it than in the past."

Mirkarimi, who authored the measure, called the early phone banking, mailers, and door knocking a "signature blitzkrieg campaign," similar to what he witnessed as the manager of the 2001 public power measure that also raised PG&E’s ire — and which lost by about 500 votes. "That’s why PG&E is working so hard now. We were so close in 2001."

John Rizzo of the Bay Chapter of the Sierra Club said his group has already committed money and people to walk districts. But he noted that he has already seen Committee to Stop the Blank Check signs posted in windows on the west side of the city. "We expected it," he said of the resources PG&E has spent to date. "The only thing they have is money."

Rizzo said the Sierra Club has endorsed past public power measures and considers this an environmental issue. "We are finding it’s a pretty broad coalition of folks who might not be together on an environmental issue. The San Francisco Women’s Political Committee PAC just recommended endorsing it to their membership, and that’s not normally an environmental group — though they are a good group."

Leal says the Clean Energy Act really transcends arguments against public power. "I’m mystified why people would not be on board for something that’s cleaner and cheaper," said Leal. "I think I know why a number of others have gotten on board. They recognize that this is the path to clean energy for power."

Jaye wouldn’t assign a specific dollar amount to how much the company is willing to spend to defeat the measure — but he made it clear that there are no limits: "It could take $1 million, it could take $5 million." In 2006, when public power was on the ballot in Yolo County, PG&E spent almost $10 million keeping the 77,000 customers they would have lost to the Sacramento Municipal Utility District. The measure lost by one percentage point.

Jaye, who also manages Newsom’s gubernatorial campaign, is quick to point out that the committee has already received 12,000 signed cards of support. Still, he said, they weren’t asking for money from these potential campaign donors "because we have significant and sufficient resources pledged from PG&E."

PG&E’s Lie of the Week

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The mailer that arrived last week shows a bullet hole blown through a pile of money and urges voters to beware the Board of Supervisors’ $4 billion takeover of Pacific Gas and Electric Co. It was paid for by the "Committee to Stop the Blank Check, a coalition of concerned consumers, small businesses, labor, community organizations and Pacific Gas and Electric Company." PG&E, needless to say, is picking up the check for the campaign.

Nowhere does the mailer specify the legislation it’s attacking. Why not? Because the charter amendment is called the Clean Energy Act, a proposition mandating that the city pursue a comprehensive plan for 100 percent renewable energy. That plan may include buying or constructing an electricity distribution system — which is what PG&E is really fretting about.

"The only thing green about it is cost," the flyer says. "The fact is, this proposal is backed by many of the same supervisors who are trying to build fossil fuel power plants in San Francisco."

Actually, the Clean Energy Act was authored by Sup. Ross Mirkarimi, who consistently opposes burning more fossil fuel for energy and is against the city power plants.

PG&E, on the other hand, gets 41 percent of its electricity from burning fossil fuels and the company is not on track to meet the state’s meager mandate of 20 percent renewables by 2010. In fact, the company’s record is only getting worse: four new PG&E-owned fossil fuel plants are under construction — the Tesla plant in Alameda County, Gateway in Antioch, and two other facilities in Colusa and Humboldt.

Black exodus emergency

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› sarah@sfbg.com

San Francisco is losing its black population faster than any other large city in the United States — and the trend is unlikely to stop unless the city takes immediate action.

So says a draft report from an African American out-migration task force put together by the Mayor’s Office last year. It wasn’t published in final form early enough to have an impact on the June 3 election, when voters green-lighted Lennar Corp.’s plan to develop thousands of luxury condos in Bayview/Candlestick Point, one of the few remaining African American neighborhoods in San Francisco.

Task force members didn’t get to present their draft recommendations, which include preserving and improving existing housing and producing new affordable housing, until an Aug. 7 public hearing called by Sup. Chris Daly.

The out-migration task force, which used 2005 US Census and state demographic data, places the city’s African American population at 1/16 of San Francisco’s total population in 2005, compared to its two largest minorities, Asians and Hispanics, which make up 1/3 and 1/8, respectively.

"We saw that the African American population has declined by 40.8 percent since 1990, and as a share of the population decreased from 10.9 percent in 1990 to 6.5 percent in 2005," the report states.

"That’s not enough people to fill Candlestick Park," observed Fred Blackwell, executive director of the San Francisco Redevelopment Agency, which has been faulted for deliberately displacing blacks from the Fillmore District during the 1960s and for not doing enough to protect blacks in its Bayview-Hunters Point redevelopment plans.

The task force further projects that the city’s black community will continue to decline to 32,300 in 2050, or 4.6 percent of the total population.

Blackwell cited the lack of affordable housing, as well as a lack of educational and economic opportunity, severe environmental injustice, an epidemic of violence, and lack of cultural and social pride, as the reasons blacks are leaving, or not moving to, San Francisco.

"A lot of people mentioned the notion of being an outsider looking in," Blackwell said. "People can see a Chinatown and a Little Italy, but there wasn’t an area of town that seemed to celebrate the African American community."

The findings were not exactly news to the task force or the black community.

"We could paper the walls of this building with reports that have been made on this issue," said task force chair Aileen Hernandez, citing similar studies in 1995 and 1972.

Fellow task force member Barbara Cohen said the draft recommendations "should have long ago been called the final recommendations."

The Rev. Amos Brown accused Daly of not bonding with the black community. "I’d like to see you coming to church on Sunday, to NAACP meetings, to be down in the trenches, walking arm-in-arm," Brown said. "Let me know next time there’s a NAACP meeting, and I’ll be there," Daly replied.

Calling the city’s black depopulation an emergency, the Nation of Islam Minister Christopher Muhammad urged the Board to take the issue out of Mayor Gavin Newsom’s hands.

"It’s time to begin to change the culture of redevelopment," said Muhammad, who wants to establish endangered community zones in BVHP and the Western Addition.

"It’s revolutionary, but doable," said Muhammad, who characterized the city’s Redevelopment Agency as a "cheap grant-hustling operation" after the agency admitted that it cooked a state grant application this May by claiming it needed $25 million so it wouldn’t have to mothball a project the city and Lennar are developing at Hunters Point Shipyard.

Blackwell defended the mayor.

"This is not a set of recommendations that have been sitting on the shelf," said Blackwell, claiming that Newsom is working to implement a violence prevention plan and rebuild public housing.

Blackwell also recommended expanding the agency’s certificate of preference program citywide, an idea that Sup. Ross Mirkarimi has already placed before the Board.

And now, the controller’s big lie

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By Bruce B. Brugmann (Scroll down for links to our current editorial on PG&E shenanigans on the Clean Energy Act initiative and a similar l982 Guardian story on PG&E shenanigans on the public power initiative of that era)

To repeat: When PG&E spits, City Hall swims.

In September of l982, public power forces placed Proposition K on the ballot, an initiative that would authorize a city study of the feasibility of municipalizing PG&E’s electric distribution system in San Francisco.

The Guardian headlines told the emerging story of the standard PG&E response whenever its illegal monopoly in San Francisco is threatened.

Front page: “Uncovered! PG&E’s inside moves at City Hall to squash public power: To subvert Prop. K, the utility sets up a front group, circulates a secret poll and recruits Feinstein, Kopp, Molinari and the city controller and city attorney.” (Feinstein was the mayor and Kopp and Molilnari were powerful supervisors. This time around, PG&E won’t have that luxury of public officials falling over themselves to run their errands and they have been forced to scramble for political support as never before.)

The head on our inside story: “PG&E attempts a coup against public power in San Francisco, The controller puts a misleading, one-sided and apparently illegal $1.4 billion cost-estimate for Prop. K in the voters’ handbook–using PG&E’s numbers.” The story pointed out that the data submitted by the controller for the handbook was originally supplied by a PG&E attorney and a City Hall lobbyist for PG&E. And the controller never bothered to talk to the public power group nor do any independent investigation of his own. Why? The big PG&E Lie ran in the controller’s statement in the voters’ handbook and was a major factor in PG&E’s victory over the public power initiative. PG&E’s major campaign theme, then and now, is the relentlessly repeated argument, “too risky, too costly.”

Today, as our current editorial discloses, the situation is much the same in the controller’s office.
Controller Ben Rosenfeld wrote in an Aug. 7 letter to the Department of Elections for the voters’ handbook that the costs to the city of acquiring PG&E’s local distribution facilities are “likely to be in the billions of dollars.”
What’s his evidence for this astounding figure? The only evidence is a July 24 letter to the controller from David Rubin, PG&E’s director of service analysis, who argues that the company’s San Francisco system is worth $4.18 billion.

Once again, the controller took PG&E’s word without gulping. He didn’t check with the public power people. He didn’t check with the state Board of Equalization, which sets a much lower value on PG&E property (which PG&E doesn’t protest at tax time.) He didn’t do his own research. He misinterpreted the initiative (which provides for revenue bonds, which would be paid off through a dedicated income stream and thus would cost the city nothing.) And he didn’t discuss revenue (public power cities have cheaper power and lower rates than PG&E and they make gobs of money). In short, public power in San Francisco, with its own power source at the Hetch Hetchy dam, is the biggest potential source of new revenue for the city. Again, why didn’t the controller do normal due diligence and research on such a vitally important issue for a cash-strapped city? Why is the controller once again so slavishly buying the PG&E Lie and propaganda line? The public deserves an explanation.

Sups. Ross Mirkarimi and Aaron Peskin, authors of the measure, and the clean energy forces are working hard to get PG&E out of the controller’s proposed ballot information and get some honesty in. Our suggested language: “The costs of purchasing or building energy facilities would be substantial–but those costs would be covered entirely by the revenue from operating the facilities. The net cost for the city would, at worst, be minimal and the potential exists for the city to bring in significant new revenue to offset taxes and general fund expenses.”

Let’s kick PG&E out of the controller’s office. Let’s kick PG&E out of City Hall. B3

Click here to read this week’s editorial And now, the controller’s big lie.

Click here to read a similar Guardian story from Sept, 1982, outlining PG&E’s mode of attack on a public power initiative

Breaking: Leno endorses Sanchez

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Just got word that state Assemblymember (and Senator-elect) Mark Leno is going to endorse School Board member Mark Sanchez for supervisor in District 9. “We’ve got his endorsement,” Sanchez just told me by phone. “We’re putting out the press release today.”

That makes two Green Party members the Democratic lawmaker is backing; he’s also endorsed Ross Mirkarimi in D5. Good for Leno not to let the irrational fear of Greens that so many Democrats harbor influence him; this is, after all, a nonpartisan race.

It’s a tough choice in D9 — Sanchez, Police Commission member David Campos and housing activist Eric Quezada are all good progressives and any of the three would be a great supervisor. Quezada, I think, never had much of a chance with Leno; he’s pretty close to Sup. Chris Daly, who was a strong backer of Carole Migden in the bitter Migden-Leno senate race. Campos is close to Sup. Tom Ammiano, who was neutral in the Leno-Migden brawl — but Campos, who is on the Democratic County Central Committee, voted for Aaron Peskin as chair. Leno’s candidate (and he was pusing him hard) was Scott Weiner, who narrowly lost.

Quezada also ran for DCCC, but didn’t win.

Sanchez, as a Green, was able to stay out of both the Migden-Leno fight and the Peskin-Weiner contest. Oddly enough, not being a Democrat may have helped him here.

Campos, by taking the stand he thought was right and voting for Peskin (despite immense pressure), may have scotched any chance of getting Leno’s endorsement. “That’s politics,” he told me. Yes, it is.

(UPDATE: Sanchez corrects me: He endorsed Leno for state Senate months before the election. So the Leno endorsement is even less of a surprise.)

SFPUC shuffle

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› sarah@sfbg.com

The San Francisco Public Utilities Commission is arguably the city’s most important commission. It provides water to 1.6 million customers in three Bay Area counties and handles sewage treatment and municipal power for San Francisco. But right now, it lacks a governing body.

Until recently there were no minimum job requirements for its five commissioners, who are all appointees. The only way the Board of Supervisors could block the mayor’s picks for these all-important posts was through a two-thirds vote (that requires eight supervisors) made within 30 days of the selection.

That changed June 3 when voters approved Proposition E. The board placed this legislation on the ballot in response to Mayor Gavin Newsom’s "without cause" firing of SFPUC former General Manager Susan Leal last year, and his reappointment this spring of Commissioner Dick Sklar, a former SFPUC general manager whose anti–public power tirades and rudeness to SFPUC staff was at odds with the goals and values of the board’s majority.

Prop. E’s passage required that the current SFPUC be disbanded by Aug. 1, set minimum qualifications for future nominees, and stipulated that new commissioners cannot take office until at least six supervisors confirm the mayor’s picks.

Newsom responded by renominating Sklar, along with two other incumbents—former PUC President Ann Moller Caen, and F.X. Crowley, who works for the International Alliance of Theatrical Stage Employees.

Newsom also nominated two newcomers — Nora Vargas, executive director of the Latino Affairs Forum, a statewide nonprofit advocacy group, and Jell-O heiress Francesca Vietor, director of the city’s Department of the Environment from 1999 to 2001.

Kicked to the curb in this preliminary shuffle was David Hochschild, a solar advocate who steered the SFPUC away from building peaker plants and toward retrofitting the aging Mirant power plant. Also ousted was E. Dennis Normandy, whom Mayor Frank Jordan appointed in 1994.

On July 29, the board unanimously approved Caen and Crowley, and seemed inclined to favor Vietor, though she has yet to appear before them to answer questions.

But they rejected Vargas after Sups. Tom Ammiano, Chris Daly, and Bevan Dufty expressed misgivings about her lack of experience with local politics and the SFPUC, not to mention concerns about the $150,000 worth of community grants PG&E gave to Vargas’ Latino Issues Forum between 2004 and 2006.

And Sklar withdrew his nomination before the board could vote on it, apparently aware that the seven votes against his nomination last time meant he was destined to fall short of the new requirement.

These initial changes have led Leal to believe that Prop. E is already having the desired effect. "The rules before meant that the supervisors had 30 days to come up with eight votes, and that’s a very tough thing to do," Leal told the Guardian. "The fact that Dick Sklar had to get six votes, when he barely got four votes in February, is why he withdrew his name. And if you look at the way the supervisors handled the process last time around, this time they seem more vested in it."

Newsom has not yet forwarded any more picks to the Board, so the makeup of the body that will govern the SFPUC until August 2012 is still undecided. But it’s likely that the first matter of business for the new SFPUC will be responding to board recommendations that are sure to flow from an August hearing into CH2M Hill’s study on the feasibility of retrofitting Mirant’s Potrero units 4, 5, and 6.

Leal believes the retrofit plan is "sketchy at best."

"I think that trying to retrofit a 1973 plant is like one former PUC commissioner thinking you can repair the 50-year-old digesters out at the southeast wastewater treatment plant," Leal told the Guardian, referring to Sklar’s equally unpopular attempt to block a costly but necessary rebuild of the SFPUC’s sewage digesters.

"To me, this is Mirant and PG&E still deciding whether there will be something polluting in the air," Leal added.

On July 22, at its last meeting before being disbanded, the Sklar-led SFPUC voted to rescind its former plan to build a new peaker power plant in the city’s southeast sector, and to instead pursue the Mirant retrofit.

Sup. Bevan Dufty notes that a retrofit of this kind "hasn’t been done anywhere else in the world." Board President Aaron Peskin observes that, "unlike the peaker plan, which was subjected to thousands of pages of analysis, the retrofit plan was cooked up behind closed doors with no public hearings."

Noting that Mirant only needs a building permit to keep operating at the site, Peskin says that is why he joined Sups. Sophie Maxwell, Jake McGoldrick, and Dufty in introducing legislation to require conditional use permits of future power plants.

"ATM machines, bakeries, and restaurants need conditional uses, so why not power plants?" Peskin said.

Sup. Ross Mirkarimi believes the peakers and retrofit are competing as the lesser of two evils, which is one reason why he and Ammiano wrote the fall ballot measure called the Clean Energy Act, which would create ambitious goals for renewable power. Mirkarimi told us, "There needs to be a robust campaign for a third plan that combines a transmission-only mandate and a strong renewable energy mechanism that compensates for the Mirant shutdown."

Editor’s Notes

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› tredmond@sfbg.com

They’re tearing up Bernal Heights. I came back from vacation and all the streets around my house were blocked off with "no parking" signs and the heavy equipment was ripping the pavement open. We’re getting new sewer pipes, which is a fine thing. Your neighborhood will be in the queue pretty soon; it’s a citywide project, and in the end it will cost $4 billion.

A lot of that money will go for digging trenches in the streets. Trenching and backfilling is pricey, tens of thousands of dollars a block. And it’s making me crazy that we’re spending all that money on excavation contractors and we’re not taking advantage of the opportunity.

Every ditch I see, every detour sign, every annoyed resident who can’t find a place to park, makes me want to scream. We’re doing all this work for the sewer lines, which are a crucial part of the civic infrastructure. Why aren’t we using the same money, the same equipment, the same holes in the streets to lay electrical and fiber optic cable?

Fiber’s cheap — compared to the cost of bringing all the gear out, hiring the people to operate it, putting the dirt back in the holes, and pouring new blacktop. The thin wires that could carry the world’s information system directly and cheaply to every house in the city is on the order of what Sup. Ross Mirkarimi likes to call "decimal dust." Electrical conduit, which will one day be the backbone of a city-owned power system, costs a little more, but not that much.

Face it: we’re going to do all this at some point anyway. I’m an optimist (about San Francisco, anyway), and before long Gavin Newsom will be gone, and we’ll have a mayor who believes in the public sector, and public power and public broadband will be the order of the day. And running those utilities underground makes perfect sense in a city where earthquakes make elevated electrical wires a visible hazard.

But since nobody at City Hall is putting up a modest amount of cash to do this now, in a few years we’re going to have to spend a whole lot of cash to dig up all the streets all over again.

Am I the only person who thinks this is insane?

I was way off on the St. Lawrence River, in a place that had no Internet access and only spotty cell phone reception, so I missed the news that Sen. Dianne Feinstein was sorta, maybe, kinda thinking about running for governor of California. It was a chilling little welcome-home message for me. Anyone who lived through the days when Feinstein was mayor of San Francisco ought to share my revulsion at the idea of her running the entire state. She’s a Democrat only in name; on economic issues, she’d be as bad as Gov. Schwarzenegger. She’s also an autocrat — and with term limits, there’s nobody in the Legislature who could stand up to her.

The deals are already in the air; Willie Brown just floated out a key one in the Chron. Maybe Gavin Newsom would drop out of the governor’s race, and Feinstein would give him her US Senate seat if she wins.

What a rotten concept. If Feinstein runs, she needs real competition. Feinstein vs. Jerry Brown would be fascinating, and Newsom ought to stay in too. I’m not terribly impressed with the way he’s run the city either, but in the end, I think she was a lot better at being bad than he is.

It’s good to be home.

Extra! Extra! Exposing PG&E’s Big Lies

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By Bruce B. Brugmann

For connoisseurs of PG&E’s Big Lies in political campaigns, the company’s early massive carpet bombing against the Clean Energy Initiative is most revealing. They are panicked.

Most likely, PG&E will not attack the fundamental premise of the pioneering measure (after all, clean and renewable energy is in this year). But, as our editorial this week notes, PG&E’s theme is to try and scare voters into thinking that the Clean Energy Act is too risky and too expensive in these difficult times. (The last time out, PG&E just used the phrase “too risky, too costly.”)

And they use just plain Big Lies, repeated endlessly in mailers, ads, astroturf campaigns. The reason they often get away with the ads is that they spend millions of dollars to push them and the local media retails them allegro furioso and does little to correct them. and even, in the case of the San Francisco Chronicle, just leaves the initiative out of the news and has yet to do a decent story or insert the local clean initiative angle on their energy stories.
For example, take David Baker’s otherwise creditable front page story in the Saturday (Aug. 2) Chronicle, “”Utiliies To Miss Energy Deadline, PUC says providers are failing to harness 20% from sun, wind.”

Baker doesn’t says nothing about the initiative, which sets ambitious goals for renewable energy. He didn’t quote its sponsors (Sups. Ross Mirkarimi and Aaron Peskin). He didn’t talk to any of the campaign leaders (chair Julian Davis, the Sierra Club’s John Rizzo et al). He didn’t point out that other studies, including one for the California Energy Commission, gave higher marks to public utilities. Why did he ignore the hottest issue on the fall ballot that tied directly into his story? I put the question to him in an email. No answer.

The point: since the local mainstream media don’t correct PG&E’s Big Lies, we’ll do so on a regular basis. .
Let us know if you spot one we haven’t covered. On guard, B3

P.S. A Potrero Hill martini to Matthew S. Bajko, who corrected a PG&E whopper in the Bay Area Reporter blog.
He noted that PG&E got “glowing media coverage” for its $250,000 shareholder donation to the campaign to defeat Proposition 8, the anti-gay marriage ban on the November ballot. The news, he said, was “just the latest in a string of pink steps the company hs taken this summer.”

However, he reported that the pro-gay moves “strike some San Francisco officials as suspect, as the company is locked in a fierce battle with state and local officials over two similar clean energy bills on the fall ballot.”
Some are questioning “PG&E’s altruism in the marriage fight” to shield it from the company’s “homophobic smear campaign” this spring against openly gay Assemblyman Mark Leno in his successful primary victory and that PG&E was behind the mayor’s ouster of Susan Leal as general manager of the PUC.

And he did what Chronicle reporters have not done: called the Clean Energy Campaign for comment. Spokesperson Julian Davis had a good one, “I think addition to greenwashing, PG&E is engaged in gay washing.”

Clean Energy Act makes ballot

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› news@sfbg.com

GREEN CITY The San Francisco Clean Energy Act isn’t the only charter amendment on the November ballot, but it’s already shaping up to be the political lightning rod of this fall’s election.

Pacific Gas & Electric Co. sent out mailers opposing the measure even before the Board of Supervisors voted 7-4 on July 22 to place it on the Nov. 4 ballot. Mayor Gavin Newsom also announced his opposition to the act moments after Assemblymember Mark Leno, former San Francisco Public Utilities Commission General Manager Susan Leal, and a cadre of progressive supervisors announced their support for it on the steps of City Hall.

Authored by Sups. Ross Mirkarimi and Aaron Peskin, the Clean Energy Act requires San Francisco to fulfill 51 percent of its electricity needs through renewable sources by 2017. That requirement rises to 75 percent by 2030, and to 100 percent, “or the greatest amount technologically feasible or practicable,” by 2040.

The SF Clean Energy Act also mandates that a feasibility study be undertaken to look at the best way to provide clean, green energy, which could lead to PG&E losing its stranglehold on energy if the study finds public power to be the best option.

Explaining the importance of mandating a feasibility study, Mirkarimi said, “Otherwise PG&E has a monopoly here until the planet dies.”

Supporters say it is important for San Francisco to set up a model that others can follow. “As goes San Francisco, so goes the state of California, and so goes the nation,” Peskin said at the July 22 rally, just before the Board voted to place the act on the ballot. “This is a time when people can change the destiny of the planet.”

Moments after that rally ended, Mayor Newsom took a minute to explain his opposition.

“We have other things we should be focusing on,” Newsom told reporters at a press conference at the War Memorial Building to announce housing bonds for veterans. “Let’s call it what it is. It’s a power takeover of PG&E,” he said.

But the elected officials and myriad organizations who showed up at City Hall to support the Clean Energy Act say that public vs. private power is not the main issue.

“The public power considerations have been drafted in a thoughtful and reasonable way,” Leno told the crowd. “It would involve study after study after study, and testimony from experts.”

Leno noted that 42 million Americans have public power, and if San Francisco did turn to public power, it would be embracing something as American as mom and apple pie. “Unlike their private power company counterparts, public power systems serve only one constituency: their customers,” Leno said.

Sup. Gerardo Sandoval opined that government is better able to assume renewable energy risks. “The private industry is not going to take that risk,” Sandoval said. “It’s always going to take the cheap way out, which is fossil fuels.

Others warned the audience not to be swayed by PG&E’s anti–Clean Energy campaign, which Newsom’s chief political consultant Eric Jaye is working on.

“This is not some crazy takeover scheme,” Leal said. “It’s about protecting the environment and the rights of San Franciscans and their rate payers.”

The Clean Energy Act has been endorsed by the Sierra Club, San Francisco Tomorrow, ACORN, the San Francisco Green Party, the League of Young Voters, Green Action for Health and Environmental Justice, the San Francisco Green Party, and the Ella Baker Center for Human Rights.

Mark Sanchez, president of the San Francisco Board of Education and a supervisorial candidate in District 9, described showing “An Inconvenient Truth” to the eighth-grade science class he teaches. “What can I say to my kids — we don’t have the policies in place to mitigate the damage they see?”

The Sierra Club’s John Rizzo noted, “This act insures that San Francisco is at the center of this economy. Not in Japan, China, or Germany. It will be here.”

Aliza Wasserman of the League of Young Voters stated that “PG&E is not investing $1 in renewable energy beyond state mandates, and they lobby against measures to raise those mandates.”

Desperate developer lashes out

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If the would-be developers of a massive grocery store and condo project at the corner of Haight and Stanyan streets hope to win over the community they want to serve, the nasty hit piece they mailed out this week attacking activist Calvin Welch was exactly the wrong way to go.

The project is sort of a political wobbler. Everyone is anxious to get another grocery store into the former Cala Foods site, but the Haight Ashbury Neighborhood Council (of which Welch is a key member) has understandably raised concerns about the scale of the proposed project, which includes 62 condos, a Whole Foods of up to 35,000 square feet (more than double the old Cala), and three stories of underground parking that will generate about 2000 new car trips per day at the already congested intersection.

Yet rather than trying to work with the community, developer Mark Brennan resorted to character assassination that was both childish and ageist, slamming Welch as a “fossil” who is maniacally trying to maintain blight and keep fresh food away from hungry children. He even took a few swipes at Dist. 5 Supervisor Ross Mirkarimi – clearly, not a smart move.

As Welch told us, “This hit piece is a desperate act of a desperate bunch.”

Summing up SF’s historic rally for clean energy

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By Bruce B. Brugmann and Janna Brancolini (Scroll down for Jean Dibble’s photo essay of the rally and comments by the speakers)

It was a historic rally Tuesday on the City Hall steps to kick off the third initiative aimed at bringing clean energy and public power to San Francisco.

As our photo essay shows, there was a formidable and diverse array of politicians and environmental and social justice organizations lined up with their signs and speeches to support the measure.

Five supervisors, including the board president, spoke at the rally (Ross Mirkarimi, Aaron Peskin, Tom Ammiano, Bevin Dufty, and Gerardo Sandoval) and then went into a board meeting in City Hall and hours later voted with two other colleagues (Sophie Maxwell and Chris Daly) to put the pioneering initiative on the November 2008 ballot. The vote was 7-4, with Sups. Sean Elsbernd, Michaela Alioto-Pier, Carmen Chu, and Jake McGoldrick voting against. The rally and the vote were cannon shots heard round the city, the state, and the nation.

Susan Leal, former general manager of the SF Public Utilities Commission, made her first public appearance since her dismissal by Mayor Newsom, at the urging of PG&E, for her moves toward public power. The Sierra Club, which fought the damming of Hetch Hetchy Valley in Yosemite National Park a century ago and still wants to tear the dam down, was standing tall with the group (John Rizzo).

All in all, it was one of the most impressive starts to a tough initiative campaign that i have seen in 42 years of covering City Hall for the Guardian. More: having covered the clean energy/public power beat since l969 and our first expose of the PG&E/Raker Act scandal, I think this initiative and this emerging campaign has an excellent chance of winning in November. Remember: when the public power movement revved up in the late l990s, it faced a PG&E-friendly mayor (Willie Brown), a PG&E friendly City Attorney (Louise Renne, whose husband worked for a downtown law firm getting big PG&E money) and a PG&E-friendly Board of Supervisors (only Tom Ammiano and the late Sue Bierman were pro-public power) and had to go around City Hall by going the route of a Municipal Utility District (MUD) ala the Sacramento Municipal Utility District (MUD). This time around, the board turned against PG&E and the city attorney’s office drafted the initiative for the board president and an emerging mayoral candidate.

The November ballot is filled with the juicy issues that bring out the voters: Obama, seven supervisorial races, and a raft of good initiatives aimed at dealing with major city problems (an affordable housing plan, two new tax plans focused on bringing in revenue from the wealthy, a big bond act to rebuild San Francisco General hospital, and the green energy and public power plan.) This time around, clean energy and public power are in the news and the media carried the story widely. PG&E is more worried than ever before and is already launched an early carpet bombing campaign and setting up astroturf and greenwashing operations allegro furioso. And their operatives are out and about and lurking everywhere. On guard!

The Jean Dibble photo essay

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Julian Davis, campaign chair, leads off the event and introduces the speakers.
The group stretching across the steps from left to right: representatives from the SF Green Party, the Green Guerrillas Against Greenwash Network, the Sierra Club, Mark Sanchez, president of the San Francisco Board of Education, Julian Davis of San Francisco Tomorrow, John Rizzo of the Sierra Club (speaking), Mirkarimi,
Sierra Club, Green Action, Green Guerrillas Against Greenwash, League of Young/Pissed Off Voters, more Sierra Club, Global Exchange, Power Vote, and League of Young Voters. (Not pictured in this photo were some l5 people from ACORN.

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Another overview of the group with Davis at the microphone.

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Assemblyman Mark Leno: “Jimmy Carter predicted 30 years ago that by 2000 we could be down from 40 per cent dependence on foreign oil to 20 per cent dependence. We didn’t listen. Instead we were up to 60 per cent by 2000 and now we’re pushing 70 per cent…This measure will take our fate out of PG&E’s hands and put it into the hands of our communities, who have a profound stake in providing clean, sustainable, reliable, and reasononably priced electric services.”

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Former PUC General Manager Susan Leal: “This initiative is about protecting the environment and the rights of San Franciscans and their ratepayers…It’s 167 miles (from San Francisco) to Hetch Hetchy (valley.). The first 140 miles of movement is cheaper than the last 27 miles because PG&E controls it. There’s an economic piece and an environmental piece. We have the technology–geothermal and solar trough. How are you going to move that power? We aren’t going to be able to make it (financially) because PG&E jacks up the rates on the last 27 miles. In 20l5 they’re jacking them up again…this is taking back what is ours.”

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Sup. Ross Mikarimi, co-author of the initiative: “This is not a ‘hostile’ take over,”he said. This is a “meaured way to make the city l00 per cent green and clean in 20 years. This act mandates a feasibility study on how we can provide green and clean energy…otherwise PG&E has a monopoly here until the planet dies.”

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Sup. Aaron Peskin, board president and co-author of the measure: “It’s a very profound thought. This is a time when people (and San Francisco) can change the destiny of the planet…As goes San Francisco, so goes California. As goes California, so goes the nation.”

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Sup. Tom Ammiano, author of two previous public power initiatives: “This issue has a sordid history….500 missing ballots (in the first election), where did they go? …It involves environmental justice. Some have called the (green movement) the Queenhouse effect.” He then said PG&E is avaricious, immoral, and takes homophobic measures. “It wants to shoot the messenger.” He concluded, “This is our time. We’re going to win. We’ll keep the lights on for years.”

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Sup. Bevin Dufty: PG&E’s utility undergrounding system is “an example of PG&E mismanaging things.” He said people in his district were without electricity for 24-48 hours. “This is a referendum for change.”

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Sup. Gerardo Sandoval: “As we’re leaving office, a lot of us want this to be our crown jewel. ..Government works. Government works well because government is better able to assume risk. There is still a lot of risk in renewwable energy, investments, and so on. The private industry is not going to take that risk. It’s always going to take the cheap way out, which is fossil fuels.”

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Mark Sanchez, president of the San Francisco Board of Education, said that children in our schools were affected by the ramifications of PG&E’s monopoly.

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John Rizzo of the Sierra Club: “(Al) Gore said the future of civilization is at stake. Gore’s challenge is a moral one–one that we’ve embraced in San Francisco.” He said that “renewable energy and the green movement will change the world’s economy. Not in Japan, China, or Germany. It will be here.”

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Another overview photo.

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Aliza Wasserman of the League of Young/Pissed Off Voters: She warned of PG&Es propaganda campaign claiming to be green. “Take a step back and think about where they’re investing. PG&E is not investing one dollar in renewable energy beyond state mandates and they lobby against measures to raise those mandates.
PG&E is one per cent solar, one per cent wind, and 98 per cent hot air.”

Nicholas Perez, my l4-year-old grandson from Santa Barbara, attended the rally with his dog Charlie.
Early on, as the speakers warmed up on PG&E, Charley summed up PG&E’s position eloquently. He made a timely deposit on the sidewalk in front of the rally. (Nicholas cleaned it up quickly.) Much more to come,

B3, still watching the fumes from the Potrero Hill power plant from my office window at the bottom of Potrero Hill, courtesy of PG&E and Mayor Gavin Newsom

P.S. Incidental question: how can Newsom pretend to be the “green” mayor and be the “green” candidate for governor when he buckles under to PG&E so ignominously? He’s buckled twice to PG&E, first by flip flopping on the Potrero Hill peakers, then on coming out so strong and so quickly against the Clean Energy Act initiative.
Brugmann’s Law: you can’t be a “green” mayor or a “green” anything if you knuckle under to PG&E on the big green issues.

P.S.: A tip of the Potrero Hill martini glass to the seven supervisors who defied PG&E and voted for clean energy: Aaron Peskin, Ross Mirkarimi, Bevin Dufty, Tom Ammiano, Gerardo Sandoval. Sophie Maxwell, and Chris Daly.
The opposition four will be known from now on as the PG&E Four (Sean Elsbernd, Carmine Chu, Michaela Alioto-Pier, and (gulp) Jack McGoldrick). Jake? Jake? What happened to you? Can you please explain? It’s not too late to change your position.

What the candidates need to tell us

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EDITORIAL The traditional kick-off date for fall campaigns is Labor Day, but in San Francisco, the candidates for supervisor have been in full campaign mode for months now, and some of the races are beginning to take shape. As political groups start making endorsements, it’s worth looking at what’s at stake here — and what the candidates ought to be talking about.

For starters, it’s going to be a crowded fall ballot, and there’s the potential for a broad progressive coalition to come together around a clear agenda for the future. Among the proposals headed for the ballot are an affordable housing plan, a green energy and public power measure, two new tax plans that focus on bringing in revenue from the wealthy, and a huge bond act to rebuild San Francisco General Hospital. All of the progressive candidates should be backing those measures and working together for their passage.

But the candidates also need to offer long-term solutions to the serious problems facing San Francisco. This is a city under enormous pressure, and unless some dramatic policy changes take place, San Francisco will continue its rapid slide toward becoming a city of and for the very rich.

A few items that ought to be on every progressive candidate’s platform:

<\!s>The city’s energy future. The fall ballot measure, the Clean Energy Act, will lay the groundwork for a sustainable local energy policy, although the supervisors will have to aggressively push the key element: creating a city-run electric utility. As long as Pacific Gas and Electric Co. controls the local grid, San Francisco will never meet its environmental goals. Rates will remain high, conservation will be an afterthought, and PG&E will resist any type of renewable program it doesn’t control. The candidates need to make clear that they’re committed to a full-scale public power system and tell us how they will move the goals of the Clean Energy Act forward.

<\!s>The housing crisis. San Francisco’s housing policy today is utter insanity. If it continues, the city in 10 years will look nothing like it does now. The middle class will be gone. Families with kids will be a vanishing species. Tens of thousands of people who work in this city — and keep its economy going — will be forced to live far away. Fancy new towers filled with millionaires will destroy entire neighborhoods and displace the city’s remaining blue-collar jobs.

The affordable housing ballot measure is a good first step, but much more is needed. Solutions aren’t easy, but they start with one premise: the city doesn’t need any more housing for the rich. Affordable-housing programs that set aside, say, 20 percent of new units for non-millionaires are a losing game because they accept as reality the prospect of a city where 80 percent of the residents are millionaires.

San Francisco needs a comprehensive policy that forces the city to meet its General Plan goals, which call for 64 percent of all new housing to be available at below-market rates. We need to hear how the candidates would make that happen.

**The structural budget deficit. San Francisco is a wealthy city, but there’s never enough money in the budget for the level of services residents want and need. With the exception of the rare boom years, the city has always had a revenue shortfall. Sup. Aaron Peskin’s two tax measures could bring in another $50 million per year — no chump change by any means. But the city needs about $200 million more per year to make the numbers balance. The candidates need to talk about where that will come from.

**The Muni meltdown. You can’t have a transit-first policy without effective transit, and Muni’s in trouble. Budget cuts are a big part of the problem, but the city needs a modern transit program — and that’s barely even on the drawing board. How are the candidates going to fix one of the city’s most important services? Will the candidates support the long-overdue completion of the city’s bicycle network and other bold efforts to decrease reliance on the automobile?

**The war on fun. As the city gets richer, it gets more uptight. Street fairs are under attack. Clubs are facing police crackdowns. Permit fees and red tape are making it almost impossible to hold events in Golden Gate Park. Sup. Ross Mirkarimi has a ballot measure to make some of the permitting easier, but what are the candidates going to do to end the Gavin Newsom–era attack on arts and entertainment?

There’s much more: The police aren’t solving homicides. Small businesses feel utterly ignored by City Hall. The Planning Department is run by developers. The list goes on. And the next Board of Supervisors will need to address all those issues. Over the next few months, the candidates that want the progressive vote need to give us some clear explanations of where they stand.

SF Weekly bashes the left — and misses the point

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I’m not surprised that Matt Smith is once again looking for ways to bash the left, and that the SF Weekly is once again looking for ways to attack public power. But Smith’s latest piece is really screwy.

His thesis seems to be that the public-power movement is supporting the move to build city-owned power plants at the foot of Potrero Hill. Actually, that’s completely wrong.

There’s a measure headed for the fall ballot called the Clean Energy Act that would, among other things, move the city toward public power. But it has very little to do with the battle over the power plants.

The two cosponsors of the Clean Energy Act, Ross Mirkarimi and Aaron Peskin, are on opposite sides of the power-plant issue. And even a cursory read of the Guardian blogs demonstrates that the activists are by no means of one mind on this.

The whole idea that the peakers were a public-power plot is pretty laughable, since NONE of the leading public-power activists had anything to do with the idea in the first place. (And later, when it came out of the SFPUC — which again, has NEVER been a bastion of public-power activism) some of us liked the idea and some of us didn’t.

And the Peskin measure that Smith talks about has nothing to do with public power either.

Newsom and the Clean Energy Act

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EDITORIAL A progressive measure that would make San Francisco one of the greenest cities in the nation will be on the ballot this fall. It’s designed to lower energy costs, reduce greenhouse gas emissions, and promote green-collar jobs. It has all the elements that Mayor Gavin Newsom has been talking about in his high-profile speeches, press conferences, and celebrity appearances. It’s a perfect vehicle for a mayor who wants to stand out as a candidate for governor of California. It has the backing of some of Newsom’s close allies, like state Sen. Mark Leno.

That’s why Newsom ought to support the Clean Energy Act.

The charter amendment, sponsored by Sups. Aaron Peskin and Ross Mirkarimi, seeks to make San Francisco more energy independent. It sets ambitious goals for renewable energy and would put the city on track to create its own public power system. It’s not a radical measure — in fact, it’s milder than we would have liked. It doesn’t mandate an immediate takeover of Pacific Gas and Electric Co.’s facilities. It doesn’t turn the Public Utilities Commission into an elected body. And no matter what lies PG&E puts out, it won’t raise electric rates or cost the taxpayers money.

It does, however, mandate that the PUC look at the best ways to ensure that by 2017, 51 percent of the electricity used in the city comes from renewable resources. By 2040, that number should be 100 percent. And the evidence from across the nation shows that the best way to promote renewable energy is to shift from private control of utilities to public power.

Again, that’s hardly a radical notion: more than 2,000 cities in the United States have public power. Palo Alto is among them; so are Alameda and Santa Clara. The Sacramento Municipal Utility District provides reliable service to Sacramento County at rates 30 percent below what PG&E charges customers in adjoining areas — and SMUD has one of the best records in the nation for promoting conservation and renewable energy.

Of course, the very existence of any sort of plan to consider energy alternatives for San Francisco seems to terrify PG&E. Already the giant private utility is pulling political strings and retailing outrageous lies to try to scare the supervisors away from placing the charter amendment on the ballot. And we expect to see a savage, multimillion-dollar campaign against the measure this fall.

That’s because PG&E wants no hint of competition, no chance that the city might actually consider the benefits of public power. It’s no secret why. When you look at the facts, compare how public and private systems have fared in the past decade, and line up the financial figures and the prospects for sustainable energy policies, public power wins.

The biggest misinformation PG&E is putting out these days involves the cost of creating and running a public power system in San Francisco. The company is throwing out numbers like $4 billion, and suggesting that the taxpayers would be on the hook for all of it if the city tried to take over the company’s system.

For starters, there’s nothing in the Clean Energy Act that requires a takeover. It might turn out to be more prudent, for example, to slowly build a new city-owned infrastructure. More important, if the city did decide to buy out PG&E’s wires, poles, and meters, the cost would be nowhere near what the company is claiming.

How much is the system really worth? Well, one way to find out is to check the assessed value, the figure the state uses for property-tax purposes. And as Amanda Witherell reported July 2 (see "The dirty fight over clean power"), the state says all of PG&E’s property within San Francisco city limits is worth only $1.2 billion — and that includes the company’s downtown office complex, which is worth at least several hundred million. So the actual cost of the system might wind up at less than a quarter of what PG&E claims.

And none of that money — none — would come from taxpayers. The PUC could issue only revenue bonds, backed by future electricity sales, to finance any buyout or construction. No tax money would ever be in play. And our past analyses have consistently shown that the city could buy out PG&E’s system, cut electric rates, and still wind up with a sizable surplus every year.

Newsom is aware of all of this, and has said that he’s willing to consider supporting public power. Now there’s a measure heading for the ballot that would also mesh with all of the mayor’s environmental goals. The only argument against it is that PG&E — in the past a backer of the mayor — doesn’t want it to pass.

Newsom needs to support the Clean Energy Act. If he doesn’t, it will demonstrate that he lacks the backbone to stand up to special interests — and has no business running for governor of this state.

A kickoff press conference on the Clean Energy Act will be held at 11 a.m. Tuesday, July 22 on the steps of City Hall.

I’m for PG&E, at 50 bucks a head

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If public power can work in Rock Rapids, Iowa, why can’t it work in San Francisco?

By Bruce B. Brugmann

When I came into yesterday’s public hearing at City hall on the emerging clean energy act initiative, I wasn’t surprised to see the room stacked with people obviously rounded up by PG&E for the occasion. After 42 years of covering PG&E, I know how private utility operates.

I asked the man sitting next to me, obviously not a
City Hall regular, why he was attending the hearing. His answer was vague but he was obviously agitated about the clean energy act initiative. Was he going to testify against the initiative? Yes, he said. Was he paid to attend the hearing?
He mumbled a bit and then said, yes, $50 bucks. But, he pointed out, he hadn’t been paid yet.

The word got around the hearing room that PG&E’s going rate for this hearing was $50. Julian Davis, the chair of the clean energy campaign, was first up to testify and promptly mentioned the going rate.
He then said that he considered it “cynical and tragic” for a corporation like PG&E to take advantage of communities of color into advocating on behalf of an agenda that ultimately does not serve their interests. (Many of the members of the audience were persons of color. Davis is black.)

Many of them testified, arguing that the initiative, which calls for setting renewable energy goals and making San Francisco the nation’s greenest clean energy city, would be too expensive and burdensome and ought to be killed forthwith. They testified that they couldn’t afford higher electric rates, higher taxes, higher anything in the city’s tight economy. Several said they were living on fixed incomes and simply could not afford another penny on anything.

Sup. Ross Mirkarimi, sponsor of the bill, and Sup. Chris Daly, chair of the rules committee meeting, Sup. Bevin Dufty, and many pro-clean energy speakers pointed out the many advantages of clean energy and public power. Cities with public power across the state and country had lower electric rates, better service, and extra money for their general funds. The Sacramento Municipal Utility District (SMUD) is a national leader in renewable energy and conservation efforts, while still keeping its rates far below PG&E rates in adjoining communities.

After hearing the clean energy speakers, several people came up to Davis after the hearing and said they were confused and annoyed that they had been misled by PG&E. They were interested in the arguments for clean energy and the initiative and wanted to know more.

Davis said he told them, among other things, that “one of the essential components of the clean energy act is a mandate to offer the kind of jobs and job training in the clean energy industry that PG&E is not currently offering to the very communities they are willing to exploit to promote their status quo agenda.” The jobs idea was of particular interest, he said.

And, yes, I testified at the hearing. I sometimes do this to counter the time worn PG&E line that, gosh, golly, gee, electricity is so complicated, city workers are so lazy, dumb, and incompetent, how in the world can they run an electrical company if they can’t make the muni run on time. Wheeze, wheeze, and wheeze again.

And so I pointed out that in my hometown of Rock Rapids, Iowa, population 2,800, a bedrock conservative Republican farming community way out in the northwestern part of the state,
the town has successfully operated a public utility since l896, and it’s doing just fine. It provides good, reliable, hometown electricity, has good low rates and excellent service, makes money for the general fund and subsidizes projects such as the local swimming pool, and doesn’t gratuitously cut off service with no way to appeal or complain, as is PG&E policy. And the public utility is locally accountable to a local board of directors composed of local townsfolk, such as my old friends Dave Foltz, a local real estate man, and Eugene Metzger, a local banker.

To this day, I told the supervisors, II always carry in my pocket a little blue coin purse that eloquently makes the local point. And I pulled the purse out of my pocket and read the inscription to the supervisors: “Call before you dig, Rock Rapids Municipal Utilities, (7l2) 472-2513.)”

And so my central argument is unbeatable: If public power works in Rock Rapids, Iowa, why can’t it work in San Francisco, California? PG&E has yet to get back to me on this one. Meanwhile, I’ll keep you posted throughout the campaign on public power in Rock Rapids. On guard, stay plugged in for the duration, the fun has just started, B3

Support SF’s Clean Energy Act

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EDITORIAL The long-awaited charter amendment that would transform San Francisco’s energy policy will come before the Board of Supervisors within the next few weeks. The measure, known as the Clean Energy Act, deserves strong support.

The proposal is fairly simple, but far-reaching. It includes ambitious targets for reductions in greenhouse gas emissions and a mandate that the city shift to entirely renewable electricity by 2040. That would turn Mayor Gavin Newsom’s green city rhetoric into enforceable reality and put the city where it ought to be — in the forefront of global efforts to end reliance on fossil fuels.

And the sponsors of the charter amendment, Sups. Ross Mirkarimi and Aaron Peskin, realize that the only way the city will ever get serious about sustainable energy programs is to get rid of Pacific Gas and Electric Co.’s monopoly and shift to a publicly-run local utility.

The measure would, for the first time, create a detailed municipal energy policy and put control of the city’s energy future in the hands of city officials, not those of a private corporation. The San Francisco Public Utilities Commission would have a mandate to ensure that by 2017, 51 percent of the electricity used in the city came from renewable sources. By 2030 that number would rise to 75 percent, and by 2040 the city would be seeking a 100 percent renewable portfolio. (Energy from the city’s existing Hetch Hetchy hydroelectric project would count as renewable power, and since Hetch Hetchy already covers a significant percent of the municipal load, the targets are entirely reasonable.)

The PUC would have to prepare a report every two years advising the supervisors on how it is moving to meet the targets.

The measure also directs the PUC to come up with a plan to put San Francisco into the business of retail electric power. That’s something activists have been pushing for since the 1920s. The federal law that gave the city the unique right to build a dam in a national park additionally mandated that San Francisco use the electricity from the dam to establish a public power system. The city has been in violation of the Raker Act for some 90 years now. As we’ve reported in numerous stories going back to 1969, the city built the dam in Yosemite and managed to construct a world-class municipal water system — but PG&E, through bribery, corruption, and political influence, hijacked the dam’s electric power. Although San Francisco is the only city in the nation with a federal public-power mandate and one of the few that owns and operates a major public hydroelectric project, residents and businesses are still stuck with PG&E’s soaring rates and lousy service.

And PG&E — which uses fossil fuels for much of its power and operates a nuclear plant — won’t make even the state’s mild mandate of 20 percent renewable energy by 2010.

Public power cities all over California have lower rates and better service. The Sacramento Municipal Utility District, one of the largest public power systems in the state, is a national leader on renewable energy and conservation efforts. And public power makes tremendous economic sense: a municipal utility would bring tens, maybe hundreds of millions of dollars per year into the city’s coffers. That money could be invested in solar, wind, and tidal energy, and some could go to reduce the structural budget deficit that haunts City Hall every year.

PG&E is already nervous about the prospect of a renewable energy and public power measure passing this fall, and has cranked up a campaign of lies and misinformation. The news media are already starting to pick up the pro-PG&E stance — the San Francisco Business Times is running a "poll" on public power that leads off with the tired old claim that "San Francisco can’t make the buses run on time. But it can find power to keep the lights on?" (A bit of reality here: urban bus systems are tough to run because they lose money. Public power systems make money. The lights stay on in Sacramento, Palo Alto, Los Angeles, Alameda, Santa Clara, and a lot of other cities — and the people who live there pay less, get more reliable service, and are more likely to see reductions in greenhouse gas emissions.)

Six votes are needed to put the Clean Energy Act on the ballot. Any supervisor who doesn’t support it will forever be known as someone who puts the interests of PG&E ahead of the needs of San Francisco, the nation, and the planet.

The dirty fight over clean power

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› amanda@sfbg.com

A charter amendment for renewable energy and public power appears headed for the November ballot, and already Pacific Gas and Electric Co. is rounding up front groups and touting inaccurate figures in an attempt to scuttle the plan.

The San Francisco Clean Energy Act, introduced by Sup. Ross Mirkarimi, would mandate that the San Francisco Public Utilities Commission "produce a comprehensive plan for providing clean, secure, cost-effective electricity for city departments and residents and businesses."

If passed, San Francisco would exceed state standards by requiring 51 percent clean, renewable energy by 2017; 75 percent by 2030; and 100 percent by 2040. Workforce development is also part of the plan, and if it’s determined that public ownership of the grid is the way to go, any employees fired by PG&E will be hired by the SFPUC.

"The San Francisco Board of Supervisors is talking about taking over PG&E," Brandon Hernandez, the corporation’s manager of government relations, said at a June 27 Rules Committee hearing on the legislation. "PG&E’s system is not for sale," he asserted. He then went on to say a takeover would cost the city "at least $4 billion."

PG&E spokesperson Darlene Chiu told the Guardian: "That’s our estimate for what our system costs in San Francisco."

But the California State Board of Equalization says all of PG&E’s state-assessed San Francisco property was worth $1.2 billion in 2007. The board’s appraisers assess PG&E’s property for tax purposes and their final figure includes millions of dollars of property that San Francisco would not want to own.

PG&E threw other punches at the city. Hernandez threatened the loss of as much as $29 million per year in taxes and charitable giving. "We no longer will be contributing to San Francisco’s nonprofits and service organizations," he said of groups that received $5 million from PG&E last year.

That money buys some political loyalty. The only organizations that spoke against the measure — the San Francisco Chamber of Commerce, the Bay Area Council, and the A. Phillip Randolph Institute — all received bucks deluxe from PG&E. Between 2004 and 2006, the Chamber of Commerce Foundation received $166,000 from the utility; the Bay Area Council and Economic Forum grossed $132,500; and APRI banked slightly more than $100,000.

The Chamber’s vice president of public policy, Rob Black, criticized the move toward municipalization because it would make San Francisco, like other municipal utilities, exempt from the state-mandated 20 percent renewable energy by 2010. "The Los Angeles utility is at 48 percent coal. That’s not green, that’s not renewable. That’s something we need to be very careful about," he told the committee.

According to the Los Angeles Department of Water and Power, their power mix is actually 44 percent coal. But Black didn’t bother to check; he just took his figures from PG&E moments before, while conferring with Hernandez and Chiu. When questioned by the Guardian, Black said, "They didn’t come to me. I went to them."

He reiterated the concern that municipally-owned power isn’t required by the state to be clean and green, and becoming so could increase rates. "If we’re creating cheaper energy, where’s the incentive to do conservation?" he asked.

According to statistics from the meeting, the average PG&E household spends $74.55 per month on electricity, with 12 percent of the energy used hailing from renewable resources. An equivalent customer in the Sacramento Municipal Utility District has a bill of $46.60 for 18 percent renewable.

APRI’s James Bryant said his Bayview community group has issues with the costs and the idea that former PG&E employees would be hired by the city and subsequently receive worse retirement plans.

When asked if he was there because his organization gets money from PG&E, Bryant said, "Not really." He added, "I don’t have anything to do with their decisions. They don’t have anything to do with my decisions.

"Of all the amoral things PG&E does, they fund very worthy grassroots organizations and then lean on them to speak against things," Sup. Tom Ammiano said when expressing his support for the legislation. "Not only is San Francisco going to have public power, the state of California is going to have public power."

Other public comments overwhelmingly supported the measure. Some energy activists have been concerned that the legislation would derail or delay efforts to move toward renewables through the community choice aggregation (CCA) program.

Fighting for the right to party

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› steve@sfbg.com

It’s become increasingly difficult and expensive to stage street fairs, concerts, or other parties in San Francisco, a trend chronicled by the Guardian over the past two years (see "Death of fun," 05/23/06 and "Death of fun, the sequel," 04/25/07). But event and nightlife promoters have responded with a proposed ballot measure that would write the right to party into the city’s charter.

The "Promoting and Sustaining Music and Culture in San Francisco" charter amendment would acknowledge the importance of special events to the city’s character, streamline the process for obtaining city permits, and require the nine-plus city departments that promoters must deal with to submit reports outlining how their policies and fee structures will need to be altered to comply with the new mandate for fun.

The measure was developed by the Save SF Culture Coalition, whose members include the Entertainment Commission, Black Rock City LLC (which stages Burning Man as well as events here in town), the Late Night Coalition, and the Outdoor Events Coalition (a group formed last year to counter city policies and neighbor complaints that threatened to scuttle the North Beach Jazz Festival, How Weird Street Faire, concerts in Golden Gate Park, and other events). The measure is sponsored by Sup. Ross Mirkarimi and has picked up four other supervisors as cosponsors, so it needs just one more vote for the Board of Supervisors to place it on the November ballot.

"It was long overdue that the city produce a master plan and vision that promotes a sustainable environment for music, culture, and entertainment throughout the city," Mirkarimi said.

In fact, event promoters say they’ve been hit by a quadruple whammy that threatens their livelihoods and the vibrant nature of the city: rising fees charged by city departments looking to close budget gaps, increased concern over alcohol consumption and other liability issues, more conflicts over noise in increasingly dense neighborhoods such as SoMa, and the ability of a handful of complaining neighbors to create event-killing permit conditions. And those last two problems are only likely to get worse as the city grows.

"We want the city to create a sustainability policy that will save our outdoor events in the face of all the development that is going on," said John Wood, a member of the Late Night Coalition and a promoter who also serves on the San Francisco Love Fest board of directors. "We need to be able to say, ‘This is city policy and you’re not following it.’"

Promoter and club owner Terrance Alan was an original member of the Entertainment Commission, which was formed in 2003 in part to resolve complaints over noise and manage relations between nightclubs and their neighbors. But he said the agency has little staff and no leverage over other city departments involved in permitting, which includes the Planning, Building, Port, Police, Fire, Health, and Recreation and Park commissions and departments, as well as the Municipal Transportation Authority and Interdepartmental Staff Committee on Traffic and Transportation (ISCOTT), the body that approves street-closure permits.

"We have been completely unsuccessful at getting their attention," Alan said. But this new measure, he said, would "set the stage for ongoing discussions that need to be happening."

Or as Wood put it, "It would give us ammunition in the future battles we’re going to have. It’s not going to make those battles go away."

Recreation and Park Department spokesperson Rose Dennis said her agency must deal with many competing concerns, ranging from budgetary issues to being responsive to complaints raised by citizens. "We understand that it might feel heavy-handed, but we have a duty to do so because we have to balance a number of concerns," Dennis said. "[Event promoters] have a bottom line, and we have a bottom line. We have a lot of people to serve."

Yet she said the department will comply with the measure and adjust its policies, fees, and procedures as needed if the measure is approved by voters.

At a June 27 Board of Supervisors Rules Committee hearing, there was lots of support for the measure and no real opposition. "We’re concerned about the future of arts and culture in San Francisco," Steven Raspa, who does special events for Black Rock City, said at the hearing.

All three committee members voiced support for the measure, but because it needed some minor changes, a final vote was pushed back to July 9. Proponents characterize the measure as trying to bring some balance to a situation in which the loudest wheels — those of NIMBYs complaining about noise or party detritus — keep getting greased.

"The bureaucracy is hearing from these neighborhood groups all the time," Wood said. "We feel that we are the majority and we need to demonstrate that politically."

Amanda Witherell contributed to this report.

To read the measure or learn more, visit www.savesfculture.com

Save SF’s campaign finance program

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OPINION In 2000, San Francisco voters approved a system of public financing of campaigns for the Board of Supervisors, which in 2006 was expanded to the mayoral race. By eliminating the need for candidates to raise large amounts of private money, the program has been extremely successful at helping sever the link between big money and political decisions. But now this flagship program is threatened: Mayor Gavin Newsom is proposing to raid several million dollars from the public campaign fund.

Last September the mayor put forth a plan to take $6 million from the fund and give it to one of his pet programs: SF Promise. The cost of this program was only $525,000 the first year, begging the question of why the mayor was grabbing $6 million from the fund. Of course, Newsom had actively opposed public financing for the mayoral race, so it’s possible he wanted to defund the program. Supervisor Aaron Peskin wisely introduced legislation to fund SF Promise from the city’s reserve funds, thereby warding off the raid.

Now another proposal has surfaced to remove $5 million from the fund. According to Ethics Commission spending projections, removing $5 million will create a $1.7 million to $4.3 million shortfall for the next mayoral race in 2011 — and that’s just to meet minimum baseline funding.

The justification for this plan is that the city is facing a budget crunch and needs these funds. The mayor promises, promises, promises to return the funds later — but the only way to legally secure those funds is through a charter amendment, which the Mayor’s Office has declined to support.

This latest rationale rings hollow, and we only have to look across the bay to see why. Earlier in the decade, Oakland adopted public campaign funding, and after it was used in one election cycle, Oakland was hit with a budget deficit. The City Council decided to dip into the public financing funds in the gap. They promised, promised, promised that they would restore the funding once the deficit problems were resolved. Yet to this day Oakland still does not have public financing of campaigns — because, while it’s still the law, there’s simply no money in the fund.

Meanwhile, in San Francisco, members of the Budget Committee seem to be prepared to vote in favor of this dangerous proposal as early as July 3. While Supervisors Ross Mirkarimi and Chris Daly have wisely expressed opposition, Supervisor Jake McGoldrick, who has been a public financing supporter in the past, has so far expressed support for the cut. McGoldrick could end up being the swing vote, joining with public financing opponent Sup. Sean Elsbernd and mayoral ally Sup. Carmen Chu to support this legislation.

Dipping into the public financing fund for any reason sets a terrible precedent and undermines the integrity of this valuable program. Just as politicians should not draw their own district lines because of a conflict of interest, they should not undermine previously established campaign finance laws.

Rob Arnow and Steven Hill

Rob Arnow and Steven Hill have been the architects of public financing for mayoral and Board of Supervisors elections. Steven Hill also is director of the Political Reform Program at the New America Foundation. Contact them at info@voterownedelections.org.

 

Clean Energy Act excites supervisors

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At today’s Rules Committee, Supervisors Bevan Dufty, Tom Ammiano, and Chris Daly, all expressed enthusiasm for San Francisco’s Clean Energy Act. Daly and Ammiano even broke into chants of “victory, victory” during discussion of approving the measure for November’s ballot.

“In 2002 I supported Prop D and I look forward to supporting this measure,” said Dufty during his comments on this new public power ballot initiative. “I think PG&E has not held the public trust in San Francisco well,” he added, citing the smear campaign PG&E launched against Mark Leno during his bid for State Senate.

The measure, known as the “San Francisco Clean Energy Act,” would amend the city charter to require that, within 120 days of passing the legislation, the San Francisco Public Utilities Commission must “produce a comprehensive plan for providing clean, secure, cost effective electricity for city departments and residents and businesses.” This may include construction city-owned transmission lines, as well as procuring the resources to advance the Community Choice Aggregation plan of 51 percent renewables by 2017.

It actually goes one step farther and says if CCA falls through, the city must still get 51 percent of their energy from renewable and clean sources, 75 percent by 2030, and 100 percent by 2040. A green jobs workforce development must also be part of the plan, and if it’s determined that public ownership of the grid and resources is the way to go, any employees fired by PG&E, the private company that provides our power now, will be hired by the PUC.

Sup. Ross MIrkarimi, who introduced the measure, rattled off figures from Alameda, Santa Clara, Palo Alto, and Sacramento, all of whom have publicly-owned utilities and all of whom charge the average household rates far below PG&E.

His figures, for a 500 kilowatt hour household:

Clean Energy — tomorrow!

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The Board of Supervisors Rules Committee will hold a hearing tomorrow (Friday) to discuss the new clean-energy charter amendment. It’s a long-overdue measure that would give San Francisco control of its own energy future and set aggressive mandates for sifting to renewable resources for electricity.

The measure is sponsored by Supervisors Ross Mirkarimi and Aaron Peskin, and includes the following:

1. A mandate that 51% of the city’s electricity is generated from renewable resources by 2017, 75% by 2030, and 100% by 2040. This would be one of the few laws in the country that requires a city to move toward a 100 percent renewable portfolio. It also requires the Public Utilities Commission to issue a report every two years explaining how the city is meeting those goals. This would be a model for cities around the nation (and around the world), and would put San Francisco in the forefront of the movement to reduce carbon emissions and slow climate change. Since state and federal governments are moving far too slowly on the most important environmental issue of our lives, cities are going to have to take the lead, and San Francisco – one of the most progressive communities in the nation — should be showing everyone else how to do to that.

2. A mandate that the city move toward acquiring its distribution system for the sale of electricity. Pacific Gas and Electric Company, which now supplies the residential and business customers in San Francisco, is spending a huge amount of money on a greenwashing campaign to convince residents that it’s moving away from fossil fuels. That’s a big lie: PG&E’s current power profile is 44 percent fossil fuels, 24 percent nuclear, 20 percent large hydro, and only 12 percent renewable – and the utility admits that it will not even make the state’s mandate of 20 percent renewable by 2010. . The only way this city is going to have a truly environmentally sound energy program is if we run it ourselves.

Of course, a publicly run utility has other big advantages. Public-power agencies all over the country have lower electric rates and many bring in huge amounts of revenue, which the city desperately needs. And public-power is good for the economy

3. Mandate green jobs and job training for San Franciscans. There’s a lot of money in renewable energy, and thousands and thousands of good jobs. The measure mandates that the PUC as part of creating a public power agency create job-training programs to help San Franciscans build careers in green energy.

The hearing is at 10 am. Be there and support this crucial legislation.

Free solar power?

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› sarah@sfbg.com

GREEN CITY San Francisco’s new solar incentive program just might make the conversion to green power almost free to city residents when combined with other state and federal programs, some of which expire at the end of this year.

This is an unlikely city for such a dynamic, as we reported a couple months ago (see "Dark days," 04/16/08), given our small lot sizes, high costs, and the fact that we have about twice as many renters as homeowners. The solar program also hit some political snags.

Promoted since December 2007 by Mayor Gavin Newsom and Assessor/Recorder Phil Ting, the Solar Energy Incentive program has been struggling to get Board of Supervisors approval since January when Sups. Chris Daly, Jake McGoldrick, Ross Mirkarimi, and Aaron Peskin objected to the use of public money to fund the program, which will subsidize solar installations on private homes and businesses.

These San Francisco Public Utilities Commission funds were intended to expand publicly owned power projects such as solar panel installation on city property. But as the SFPUC’s Barbara Hale explained to the Guardian, new laws prevent cities from qualifying for state rebates if they convert municipally owned buildings to solar, making those conversions a comparatively losing financial equation.

So on June 10, the board approved Newsom’s program in an 8-3 vote, with Mirkarimi lending his support after he secured funding for a complementary $1.5 million, one-year solar pilot program targeted at nonprofits and low-income families. The San Francisco Solar Energy Incentive program will provide $3 million in solar rebates annually for 10 years.

As Mirkarimi aide Rick Galbreath told the Guardian, "Nonprofits can’t always move as fast as the private sector, and solar advocates, who have been pushing other programs since December, have already got things in the pipeline."

Some of those other programs combine with the new city one in interesting ways. "What if solar were free? Then everyone would install it, right?" was the question posed by Tom Price, whom we profiled in January (see "Solar man," 01/02/08) for founding Black Rock Solar, which does large public interest solar projects using volunteer labor.

Now Price thinks the free solar power that he’s been able to leverage for schools and hospitals just might be available to the average San Franciscan. "This program inadvertently could make solar in San Francisco the cheapest it’s ever been," Price told us. "At least for a short window of time."

Under the city’s program, solar rebates begin at $3,000 for homeowners — and rise in $1,000 increments to a maximum of $6,000 if residents use local installers, hire city-trained workers, and live in city-designated environmental justice districts. For private businesses, the rebate cap is set at $10,000. But that amount can rise if combined with the state and federal incentives that expire at the end of the year.

"I’m one of three tenants. Each of us has an electrical meter, each of us is eligible for a $5,000 rebate under the city’s program," said Price, who rents on Potrero Hill and hopes to pull off an almost no-cost conversion with his landlord.

Price estimates the solar conversation will cost about $15,000 per tenant. So, if two conversions are done (there’s only space for two conversions on most of the city’s Edwardian and Victorian homes), Price’s landlord can subtract two $5,000 cash rebates, plus the Pacific Gas and Electric Co.–administered California solar incentive, plus a $2,000 federal tax credit.

Price said landlords can also take advantage of a 30 percent investment tax credit on top of a 60 percent tax deduction that Dave Llorens of Next Energy found buried deep within the economic stimulus package signed by President George W. Bush earlier this year. Landlords can then arrange to sell cheap, renewable power to their tenants.

"What if I sign an agreement with my landlord to pay $50 per month for the right to have access to his solar system?" Price said. "So now the money that would have been going to PG&E goes to the landlord."

And it’s clean, free power, rather than PG&E’s expensive power generated largely from nuclear and fossil fuel sources.

"This makes San Francisco the first place a tenant and a landlord can really work together to make solar power affordable," Price said. "And that in turn will help drive adoption of renewable energy."

A heart once nourished

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› gwschulz@sfbg.com

Community court, every second Thursday at 10 a.m. Narcotics Anonymous on Wednesday. Apprenticeships for construction workers, Monday, bright and early.

The ancient letter board just inside the entrance of the Ella Hill Hutch Community Center tells much of the story of this neighborhood institution. Since 1981 it’s been a crucial hub for the Western Addition, a mostly level stretch of terrain west of downtown that rivals the Mission District and Bayview–Hunters Point as the source of the most despair from senseless gun violence.

For decades Ella Hill was a safe haven, a place where kids and seniors felt comfortable, where people could learn and teach and talk and work together, a little oasis in the world of urban hurt.

A placard affixed to one wall of the entryway honors Thurgood Marshall, the nation’s first African American US Supreme Court justice. In a small office nearby, a tutor assists a young girl with the multiplication table. Elsewhere, a list of rules forbids profanity, play-fighting, and put-downs.

There’s also a poster of Ella Hill Hutch, the first black woman elected to San Francisco’s Board of Supervisors, where she served from 1978-81.

But in 2006, a man was murdered during daylight hours in the center’s gymnasium before dozens of witnesses. That slaying was one of at least five brutal incidents that took place in the shadow of Ella Hill between 2006 and 2007; three more murders occurred within blocks. Many remain open cases today.

And now the center is having serious problems — troubles that reflect those of the city’s African American population, which has been plagued by violence and socioeconomic changes that are closing opportunities and forcing longtime residents out the city.

Several census tracts in the neighborhood that at one time contained between 3,000 and 6,000 black residents are down to 1,000 or far less, according to a San Francisco State University study commissioned by the city last year. The report showed that between 1995 and 2000 San Francisco lost more of its black population than 18 other major US cities.

Ironically, the city is now preparing to close the final dark chapter on 50 years of federally subsidized redevelopment in the Western Addition. But the displacement that the bulldozers set off half a century ago continues today, unabated.

That exodus has compounded structural problems at the center just when its remaining clients need it most. The nonprofit late last year underwent an organizational shake up and brief takeover by the Mayor’s Office to save it from imminent financial collapse. The center’s executive director of two years, George Smith III, was fired with little public explanation last year, and a permanent head was named only recently.

As with many aspects of this troubled community, it was unaddressed violence that fed the fire. Simply subsisting in the heart of a violent neighborhood was strain enough for Ella Hill. But suffering an attack from within seemed too much to bear for an institution some call "San Francisco’s Black City Hall."

The 2006 killing took one man’s life, but Ella Hill itself — still facing an uncertain financial future — felt the searing rounds too. Now some wonder if the nonprofit can survive the very violence and poverty it was created to help end in a neighborhood that’s changing forever.

In Ella Hill’s noisy gymnasium at the building’s east end, two teams of middle schoolers practice basketball.

"My job is to be in the best position to box him out for a rebound," their coach says as they crowd around the free throw line.

The kids are radiant and attentive now. But from this same basketball court on April 27, 2006, the Western Addition briefly edged ahead of the rest of the city in extreme bloodshed.

Donte White, 22, was working part-time at the center. As he supervised a basketball game, two unidentified males entered Ella Hill. One brandished a firearm and shot White at least eight times in the face, neck, and chest as several kids looked on in utter horror. Among them was White’s young daughter.

Police arrested 25-year-old Esau Ferdinand for the attack five months after White’s murder. But within two weeks prosecutors decided they could no longer hold him and declined to press charges when a key witness disappeared on the eve of grand jury proceedings.

Even with other witnesses filling the gym, police gathered few additional leads, an all-too-common story in a neighborhood where residents often prefer to avoid both law enforcement and vengeful criminal suspects.

The center installed cameras and an alarm. A buzzer was placed on the front door. But the new security measures cut against Ella Hill’s image as a demilitarized zone, and the center remains shaken by White’s murder. Some parents began barring their children from going there.

"Can you imagine something like that, someone coming into a rec center in the middle of the day with a firearm and shooting and killing a guy?" asks Deven Richardson, who resigned from Ella Hill’s board in 2007 to focus on his real estate business. "That really set us back big time in terms of morale. It really was a dark moment for the center."

Sup. Ross Mirkarimi, whose district includes Ella Hill, says that after he took office in 2004, he learned that the police weren’t stationed at the center during prime hours and had never created a strategy for attaching themselves to the center the way they had at other safe-haven institutions in the city, like schools. He told us he’s had to "really work" to get the nearby Northern Station more integrated into Ella Hill.

"Before the murder of Donte White, there had also been a series of incidences inside Ella Hill Hutch," Mirkarimi said over drinks at a Hayes Valley bar. "Nothing that resulted in anybody getting killed, but certainly enough indicators that really should have been taken more seriously by the mayor."

In June 2006, shortly after White’s shooting, the San Francisco Police Commission and the Board of Supervisors held a tense public meeting at the center. Residents, enraged over the wave of violence that summer in the Western Addition, shouted down public officials, including Chief Heather Fong, who was forced to cut short a presentation on the city’s crime rate.

That same month, the supervisors put a measure on the ballot to allocate $30 million over three years for violence-prevention efforts like ex-offender services and witness relocation. But Mayor Gavin Newsom, following a policy of fortifying law enforcement over community-based alternatives, opposed the measure because it excluded the police department. Prop. A, designed to finance groups like Ella Hill with connections to the neighborhood that the police will never have, lost by less than a single percentage point.

Meanwhile, four homicides in the neighborhood that year joined frequent anarchic shootouts in the Western Addition, including many that never made headlines because no one was killed. The fatalities led to promises by City Hall that the area would be saturated with improved security, including additional security cameras that have mostly proved useless in helping the police solve violent crimes.

On June 3, 2006, 19-year-old Antoine Green was standing on McAllister Street near Ella Hill early in the morning when he was shot to death in the head and back. On Aug. 16, 38-year-old Johnny Jackson’s chest was filled with bullets as he sat in the front seat of a Honda Passport on Turk Street not far behind Ella Hill. A woman next to him in the car suffered a critical gunshot wound to the head.

Two more killings occurred further east at Larch Way, a popular location for murder in the neighborhood.

Burnett "Booski" Raven, a 32-year-old alleged member of the Eddy Rock street gang, was found bleeding at 618 Larch Way early Oct. 7, his body laying halfway in the street and containing at least 10 gunshot wounds. On July 22, police found 23-year-old John Brown, another purported Eddy Rock member, wedged under a Chevy pickup truck, dead from up to seven gunshots.

Brown had reportedly survived two prior shootings, but the Western Addition’s cultural condemnation of "snitching" to police has so infected the neighborhood that he allegedly told police not to bother investigating either of the attacks.

Loïc Wacquant, a sociology professor at the University of California, Berkeley, says neighborhoods like the Western Addition that once contained stable black institutions — schools, churches, and community centers that glued residents together — have been overwhelmed by the rise of a white-collar, service-based economy, the decline of unions, and the withdrawal of meaningful social safety nets.

Cities have responded to the resulting marginalization with more police officers, more courts, and more prisons. But the failure of those institutions to cure rising violence "serves as the justification for [their] continued expansion," Wacquant quoted Michel Foucault, the famous late UC Berkeley sociologist, in the academic journal Thesis Eleven earlier this year.

The roots of the Western Addition’s tragedy go back to the early post-World War II era. In 1949, Congress enacted laws giving cities extraordinary powers to clear out land defined as "blighted." In San Francisco, that meant neighborhoods where low income people of color lived.

The Western Addition was devastated. Huge blocks of houses were bulldozed. Clubs, stores, restaurants — the heart of the black neighborhood — were wiped out. Many residents were forced out of the neighborhood and sometimes the city forever; others lost their property and their livelihoods (see "A half-century of lies," 3/21/2007).

By the 1970s, neighborhood activists were hoping that at the very least the Redevelopment Agency would pay for a recreation facility for kids. But city officials wouldn’t put up the money, recalls the Rev. Arnold Townsend, a longtime political fixture in the city and associate pastor of the Rhema Word Christian Fellowship.

Townsend said activist Mary Rogers — whom he calls "the greatest champion kids ever had in this community" and a famous critic of redevelopment — gave up on City Hall and went to Washington DC, where she sat in at a meeting that happened to include Patricia Harris, Secretary of the Department of Housing and Urban Development under President Jimmy Carter. Rogers, joined by a group of colleagues from San Francisco, bumped into Harris afterward.

"[Harris] shook Mary’s hand like politicians do, and Mary wouldn’t let her hand go until she had a meeting," Townsend said. "They were having a tug-of-war over her hand."

Rogers’ determination paid off, and enough political channels opened up that money for the center became available. Then-Mayor Dianne Feinstein cut the ribbon for the $2.3 million Ella Hill Hutch Community Center four months after the supervisor’s death, complete with outdoor seating for seniors, a gymnasium, tennis courts, and child-care facilities.

A young counselor named Leonard "Lefty" Gordon who worked at the Booker T. Washington Community Service Center, one of the city’s oldest black institutions — it was founded in 1919 on Presidio Avenue, where it remains today — was named executive director of Ella Hill three years later and led the center to wide acclaim for 17 years.

A recreation coordinator at Ella Hill started a reading program for young athletes after discovering that a local high school football star wasn’t aware he’d been named the city’s player of the year: the teenaged boy couldn’t read the newspaper to find out. Other programs for tutoring and job training targeting young and old residents were likewise started under Gordon.

Many of the people we interviewed recalled the "kitchen cabinet" meetings convened by Lefty Gordon at Ella Hill as among their fondest memories. Everyone from the "gangbangers to police" attended Gordon’s meetings, Townsend said, and made them a repository of complaints about what was happening in the neighborhood.

Alphonso Pines, a former Ella Hill board member and organizer for the Unite Here! Local 2 union, eagerly showed up at the meetings for months after attending 1995’s Million Man March in Washington.

"I hate to see brothers die, regardless of whether it’s at Ella Hill," Pines said of Donte White’s 2006 killing. "But that was personal for me, because that was the place where I had sat on the board for years. That was real shocking."

Lefty’s son, Greg Gordon, said that his legendary father — who died of a heart attack in May of 2000 — worked so hard for the center that he allowed his own health to deteriorate.

Most beneficiaries of Ella Hill’s social services now live in the southeast section of the 94115 ZIP code, roughly bordered by McAllister and Geary streets to the south and north, and Divisadero and Laguna streets to the west and east.

The majority of Ella Hill’s approximately $1.4 million annual budget comes from government sources, either through grants or nonprofit contracts.

Newsom, through his community development and housing offices, has given $860,000 over the past three years to Ella Hill to help job-ready applicants obtain construction work and other general employment in the neighborhood. The center launched its JOBZ program in 2006, targeting formerly incarcerated young adults and others with a "hard-to-employ" status.

Caseworkers must convince some participants to leave gangs, deal with outstanding warrants, pay back child support, expunge criminal records, or eliminate new offenses, all of which can exacerbate a desire to give up. Sometimes the center has to buy people alarm clocks.

"None of these other programs that are being funded in this community want to deal with the kinds of kids or people who come to Ella Hill…. [It] is the last stop for everybody," said London Breed, head of the African American Art and Culture Complex on Fulton Street and a Western Addition native. "That’s where people go who have no place else to go, which is why it’s so important."

Most nonprofits working for the city must regularly report their operational costs or show how program funds are being spent on graduation ceremonies and trips to university campuses. The required forms are mind-numbingly bureaucratic and reveal little about what a place like Ella Hill might face on a practical level each day. But last year, former executive director George Smith betrayed a crack in Ella Hill’s veneer.

"Once again violence has impacted the community with three incidents in close proximity to the complex this month alone," he wrote to the San Francisco Department of Children, Youth and Their Families, which supports the center with college preparation grants. "One of the victims was a young man scheduled to graduate from high school in June."

On May 25, 2007, 19-year-old Jamar Lake was leaving a store on Laguna and Eddy streets, northeast of Ella Hill, when a teen suspect opened fire on him. Paramedics were so worried about security in the neighborhood that they fled before attempting resuscitation, according to a report from the San Francisco Medical Examiner. Lake died at General Hospital that day.

Weeks later, a manic 12-hour long feud erupted between several gunmen on McAllister Street. Seven people were wounded during two daytime shootings that took place in the Friendship Village Apartments, across the street from Ella Hill.

Then in July, a suspect randomly and fatally stabbed 54-year-old Kenneth Taylor in the neck as he sat on a park bench near sundown at Turk and Fillmore streets, within easy view of the SFPD’s Northern Station. Police didn’t respond until Taylor stumbled to the sidewalk and collapsed; a witness had to flag down a patrol car.

Following the Lake shooting, the mayor and police department promised, as they had the year before, that foot patrols would be increased in the 193-unit Plaza East Housing Development and other public housing projects in the Western Addition.

But the city’s most visible response has bypassed Ella Hill — which has some street credibility — altogether. Instead, City Attorney Dennis Herrera went to court to get injunctions against street gangs in June 2007.

Herrera’s initial filing came days after the wild shootout on McAllister Street, but the timing was coincidental. The city attorney also had been preparing injunctions against gangs in the Mission and Bayview-Hunter’s Point for months. For the Western Addition, the city attorney noted a "recent rise in violent crimes perpetrated by the defendants," and asked that the members of three gangs be banned from associating with one another inside two "safety zones" marked along the contours of their respective territories, a 14-square-block area that straddles Fillmore Street and rests just north of Ella Hill.

"The conditions within the two safety zones have become particularly intolerable in 2007 as the deadly rivalry between the Uptown alliance and defendant Eddy Rock has intensified," Herrera’s office told the court. "In 2007 alone, this rivalry is the suspected cause of at least three homicides and numerous shootings within the two safety zones."

Some critics viewed barring people from congregating with one another a civil rights violation. And worse, they feared it would merely shove more African Americans and Latinos out of the Western Addition, which would benefit the city’s wealthiest white residents.

"All of this stuff about gang injunctions is a bunch of malarkey," said Franzo King, archbishop of the Saint John Coltrane African Orthodox Church on Fillmore Street. "You don’t really have gangs here…. [In San Francisco] they’re a big club."

Herrera nonetheless convinced a Superior Court judge to issue the injunctions after filing 1,200 pages of evidence arguing that the three "clubs," which include only about 65 people named by the city, are endless public nuisances and force organizations like Ella Hill to battle with them for the affections of Western Addition youth.

Police admit that the injunctions since last year have, in fact, led people to simply leave the neighborhood. Still, they insist the injunctions have reduced trouble in the Western Addition. The Knock Out Posse, for instance, is evaporating, they say.

Paris Moffett, a 30-year-old alleged Eddy Rock leader, told the Guardian in a separate story on the gang injunctions last November that he and others were organizing to quell violence in the neighborhood and would do so in defiance of the gang injunctions (see "Defying the injunction," 11/28/07).

But on the day that story ran, Moffett hampered his new cause when, according to a March 27 federal indictment, police arrested him in Novato for possessing a large quantity of crack and MDMA, as well as a Colt .45 semiautomatic.

After Lefty Gordon died, the center went through a couple of directors in relatively short order. Robert Hector, a second-in-command to Lefty Gordon, helmed the center briefly; he was replaced with George Smith III, who left in 2007.

Meanwhile, problems at Ella Hill grew.

"The seniors just stopped their participation," Anita Grier, a former Ella Hill board member who first ran for the San Francisco City College Board of Trustees in 1998 at Gordon’s encouragement, told us. "Things were never excellent, but they just got much worse once [Gordon] was no longer director."

The center, a standalone nonprofit, had long struggled financially in part because it relied so much on contracts and grants from the city rather than pursuing funds from private donors. Mirkarimi says Ella Hill’s structure is unlike any other community center in the city. Many other centers are directly maintained by the San Francisco Recreation and Park Department.

Contract revenue from one Ella Hill program, such as providing emergency shelter to the homeless, was often diverted to keep another on life support or to simply cover the center’s utility bills.

By early 2007, the center faced a financial catastrophe. Donald Frazier joined Ella Hill’s board as president in January 2007 and embarked on a reform effort to turn the center around. He commissioned what came to be a blistering audit that revealed the nonprofit owed over $200,000 in state and federal payroll taxes. As a result, the center faced $63,000 more in penalties and accrued interest.

Mirkarimi blames community leaders in his district for refusing to acknowledge a crisis at the center and for not turning to City Hall for help when Ella Hill appeared to be slowly rotting from the inside out.

The mayor’s staff, he adds, wanted to believe Ella Hill was working on its own and should’ve continued to do so because, despite its financial reliance on the city, it was technically an independent nonprofit. In reality, Mirkarimi said, "They were afraid to piss off black people, is what it comes down to. They were afraid to tell it like it is — that things weren’t working."

Sending delinquent invoices to the city, failing to institute reasonable accounting standards, and falling far behind on its payroll taxes all threatened the government contracts and grants that kept San Francisco’s Black City Hall afloat. By extension, the audit concluded, that meant Western Addition residents who relied on Ella Hill were "victimized" by the center’s improper use of its limited resources.

Aside from the audit, which Ella Hill instigated itself, there’s no indication in the records of agencies funding the center that any problems were occurring, which implies the city wasn’t paying attention.

"As far as I’m concerned," Mirkarimi said, "we had a renegade institution, and the only reason it wasn’t renegade in an illegal sense was because the lease allowed them to have a parallel governance structure. But it was renegade in the sense that the city neglected to supervise properly."

In November 2007, just after residents hijacked a chaotic board meeting with an extended public comment period, Frazier told the directors in closed session that the Redevelopment Agency was planning to restrict future funding for the center due to its management problems.

One month later, the mayor dispatched an aide, Dwayne Jones, along with redevelopment agency director Fred Blackwell, to a meeting at Ella Hill with an ultimatum. Jones told the assembled that new interim appointees would be taking over the center’s bank books, recreating its bylaws, and electing a new board and executive director. The old board would essentially be dissolved. According to observers at the meeting, Jones told them that if they resisted the plan, funds received by Ella Hill from various city agencies would be jeopardized, as would its low-cost lease of city property.

Two defiant board members viewed the move as a "hostile takeover" of a private nonprofit organization by the mayor and voted against it, but the rest of the board agreed to the restructuring. Mirkarimi says there was simply no alternative.

"Right now it needs to be shrunk to what it can do really well, instead of doing what they had to do in the last five years, an incremental sloppy way of programming," he said.

The interim board in April named a former Ella Hill employee and Park and Rec administrator, Howard Smith — unrelated to George Smith — to be the center’s new executive director. But after all the changes Ella Hill made to fix its leadership problems, there are no assurances the city won’t leave Ella Hill without the money it needs to keep the doors open next year.

It’s noon on a recent Friday and Ella Hill’s new executive director is scrambling to keep things together. An employee wants him to glance at a form. Another man wants to come in and play basketball. Smith has a board meeting minutes from now, but he’s scheduled an interview with the Guardian at the same time.

Smith’s a well-built man dressed in a pressed suit, polished shoes, and a sharply-knotted tie. He’d mostly avoided our calls for weeks. Word spread in the neighborhood that the Guardian was planning some sort of hit piece on Ella Hill.

But it won’t be a newspaper that capsizes the center.

A significant portion of the center’s funding will be threatened over the next year. The redevelopment agency is scheduled to end its 45-year reign in the Western Addition by then, a blessing of sorts since so many people in the neighborhood feel it’s done nothing but upend the lives of black residents. But the end of the agency means that redevelopment funds for Ella Hill’s job placement programs, about $400,000 annually, will disappear.

In addition, about $300,000 more a year will dry up since the San Francisco Human Services Agency hasn’t renewed an emergency homeless shelter contract with the center. Mirkarimi believes the mayor, too, will try to stop providing Ella Hill with funding through his community development office next year.

If Newsom does back away, Mirkarimi warns, there will be "a very loud showdown."

"What I’m worried about is that the Newsom administration is basically cutting and running on this, and I’m not going to allow that to happen, at least not without a fight," he said.

The alternative is for Rec and Park to take over managing Ella Hill’s facilities with DCYF continuing to fund youth programs there while the Redevelopment Agency commits community benefits dollars from a legacy fund to the center — the least it can do after a half-century of transforming the neighborhood, locals be damned.

An interagency council made up of the center’s primary funders could collectively watchdog its performance, Mirkarimi says. Once Ella Hill’s leaders prove that the center has fully returned to its original mission, it can consider expanding to serve other populations in the neighborhood, or even seek a plan to detach further from the city.

The mayor’s spokesperson, Nathan Ballard, did not respond to an e-mail containing detailed questions, and his aide, Dwayne Jones, did not return several phone calls. But Smith said during a later lunch interview at the Fillmore Café that he agrees with Mirkarimi’s idea.

"There are so many programs out there that say they’re doing something on paper, but they’re really not doing it," Smith said. "They’re running ghost programs. So what I’ve been saying at Ella Hill since I got there is, ‘We will do exactly what we said we were going to do.’<0x2009>"

In the meantime, Smith is determined to prove that Ella Hill’s history has only just begun. The mural of Lefty Gordon outside the center received a fresh coat of paint recently, and the color pops. The sidewalk is being repaved and new handrails installed. The walls inside are clear of the aging posters and letter board that hung there a few months ago.

Before heading off to his board meeting, Smith teasingly asks an adolescent boy meandering in the center’s entryway for 75 cents. The boy’s always hitting him up for pocket change.

"I don’t got any," the boy responds.

"You don’t have any," Smith corrects.

Smith suddenly realizes what time it is.

"Hey, why isn’t this guy in school?" he wonders aloud.

At that moment, only the Ella Hill Hutch Community Center was asking the question. *

Dufty to run for mayor?

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