Supervisors

Oakland school cop comes forward as a whistleblower

Two years after his involvement in a police shooting that took the life of a 20-year-old African American man, an Oakland School Police Department officer has come forward as a “whistleblower” in sworn testimony, making allegations of unethical behavior within a department that is already under the scrutiny of federal investigators.

In a deposition delivered earlier this month as part of a civil suit, police Sergeant Jonathan Bellusa gave a detailed account of what transpired just before his patrol partner, Sgt. Barhin Bhatt, fired several rounds and killed Raheim Brown as the youth was positioned in the passenger’s seat of a car outside a high school dance in January of 2011.

Bellusa gave testimony that in the months that followed, he came under retaliatory pressure from within the department and was “uncomfortable” with various aspects of how the investigation unfolded.

An unedited, uncertified transcript of Bellusa’s deposition, which contains some grammatical and punctuation errors because it was transcribed by an automated system, was made public Feb. 28 by a group of activists organized under a project called “Against Hired Guns.” The group sent a detailed summary and analysis of the deposition, as well as the unedited transcript, to reporters. The activists also posted the contents on a website, againsthiredguns.wordpress.com.

Asked who is behind Against Hired Guns, spokesperson Cat Brooks said they are Oakland activists “who have been doing this work either together on campaigns, or separately inside of our own groups, that see strength in numbers rather than apart. We in general are tired of having flashpoint reactions to police corruption or violence, and are interested in bringing as many people or groups together as possible to have a sustained campaign that is focused on eradicating police violence.”

Bellusa is currently on leave from employment at the Oakland school police department, and the Guardian was unable to reach him by phone on the number listed on the OUSD website. “He’s been gone for quite awhile,” OUSD spokesperson Troy Flint told the Guardian when reached by phone. Asked to comment on the myriad allegations raised in Bellusa’s testimony, Flint said, “We’re going to refrain from comment until we’ve seen the actual suit.”

The deposition was conducted by Attorney Adante Pointer of the Law Offices of John Burris, in connection with a civil rights suit that is being filed against OUSD by Brown’s mother, Lori Davis. Reached by phone, Pointer confirmed that he had taken Bellusa’s deposition several weeks ago, and was surprised that its contents had been made public, since it “is not complete yet.” He added, “I’m thinking to myself, who put that out there?” As of press time, Pointer had not returned a follow up phone call.

Brooks declined to answer questions about how the activists obtained a copy of the uncertified transcript.

Allegations of retaliation for whistleblowing

Roughly a month after the shooting incident, Bellusa said in his deposition, former OUSD Police Chief Pete Sarna let out “a boisterous yell with his [fist] up in the air” and seemed “excited” that “we as a department don’t have to worry about anything.” According to Bellusa’s testimony, Sarna had just received word that his “friend” Pete Peterson had “agreed to do the investigation” of the fatal shooting of Brown.

Asked if he felt pressured by supervisors to make statements consistent with Bhatt’s account of the shooting incident, Bellusa stated, “I have felt that if I gave statements that went against the district that I would be thrown in jail for perjury.”

In the months after the shooting, Bellusa testified that he filed a formal complaint alleging that Sarna drunkenly made racist remarks to an African American sergeant in July of 2011. Sarna resigned the following month.

Bellusa also testified that on an August morning in 2011, after he’d filed the complaint against Sarna for allegedly making racial slurs, he overheard a conversation between OUSD General Counsel Jacqueline Minor and Superintendent Tony Smith. “I over heard Jackie Minor… say they were not going to let John get away with this,” he stated.

In another incident, Bellusa testified that a different OUSD officer informed him that “Chief Sarna’s assistant, Jenny Wong, told a bunch of officers something like: ‘Don’t worry, Sarna is going to beat this case. He’s going to fire John [Bellusa].’”

After Sarna stepped down, Bhatt was briefly appointed interim police chief, unleashing an outcry from OUSD parents outraged that an officer would be promoted to the top post after shooting and killing Brown just months before. Alameda County prosecutors had since cleared Bhatt of any wrongdoing in the shooting that resulted in Brown’s death.

In response to the backlash, Bhatt was removed and replaced with Police Chief James Williams in September of 2011. The shooting of Brown, coupled with Sarna’s alleged use of racial slurs, prompted a federal grand jury investigation into the OUSD police force last year. Bellusa noted in his testimony that he had described his experience to federal investigators.

Taken as a whole, Bellusa’s testimony renders a disturbing internal portrait of the Oakland School Police Department, which consists of about a dozen officers and operates independently of the Oakland Police Department as a division of the school district.

The alarming account raises serious questions about internal operations of the department, particularly since it is an independent force operated by the school district at a time when funding cuts have placed the public school system under tremendous budgetary pressure, resulting in recent school closures.

Allegations of corruption

A detailed summary of the transcript provided by Against Hired Guns highlights more disturbing allegations made by Bellusa in the course of his testimony. Among them:

  • Bellusa asserted that he witnessed Bhatt pour Wild Turkey into a glass while he was on duty. He also said he felt concerned about Bhatt after observing him “clean his firearm for a long period of time.”                                                                      
  • Bellusa testified that he “found out” that Sarna and Lou Silva, a former OUSD officer and current district-wide Campus Security and Safety Manager, were “sending their personal cars down to a shop on 16th Avenue… [and] were overcharging the police cars,” apparently in order to have their personal cars repaired for free or at a deep discount.
  • Bellusa testified, “I found out that he [Sarna] called another officer [and] told him [not to report] what had happened in front of the African American who is a witness to the … racial slurs.”

Officer-involved shooting

Brown was shot and killed outside a dance at Oakland’s Skyline High School on Jan. 22, 2011. He was sitting in the passenger’s seat of a Honda with a friend, Tamisha Stewart, who was in the driver’s seat. Bellusa and Bhatt pulled up behind them in an unmarked patrol car after noticing the lights of the Honda were flashing. Bhatt made his way to the driver’s window, Bellusa testified, while he flanked the rear passenger’s side of the car.

As Bhatt began a verbal exchange with Stewart, Bellusa testified that he noticed Brown was “fidgety” rather than cooperative, which he interpreted as a “red flag.” He opened the passenger door, crouched into what he described as a “catcher’s stance,” and initiated a verbal exchange with Brown. Shortly after opening the door, Bellusa said he made observations that led him to conclude that the car had been stolen.

When Pointer asked him where his hands were at that point, Bellusa stated, “They were on his lap,” according to the transcript. “Were they holding anything?” Pointer asked. “No,” Bellusa responded. “And so did you ask him to step out of the car when you’re having this conversation with him?” Pointer asked. “Not at that time,” Bellusa answered. 

Bellusa said Brown then grabbed a screwdriver and stuck into the ignition of the vehicle, directing Stewart to drive. This prompted a struggle between Brown and Bellusa. According to a summary of the transcript written by the group of activists:

“Bellusa lunged into the car, grabbing [Brown] from behind as Brown was leaned over toward the ignition. …Bellusa tried to hold Brown, and then grabbed him, pulling Brown’s shirt and ripping it. Bhatt, leaning in through the driver’s window, hit Brown with his flashlight. … Brown had not yet made any aggressive move toward anyone, according to Bellusa’s description of events.”

A struggle ensued, and Bellusa testified that at one point Brown bit Bellusa’s wrist, prompting Bellusa to pull his hand away and use his “hammer fist” to strike him. Brown then grabbed the screwdriver from the car’s ignition, and “I believe that the backside of the screwdriver [was what] he used at that point to strike me in the chest,” Bellusa testified.

“As the struggle ensued and neither fighter gave in,” activists wrote, “[Brown] turned the screwdriver around and tried to make contact with Bellusa.”

According to Bellusa’s sworn testimony, “I was afraid that I was going to get stabbed in the throat clear as day.” He told his partner to shoot Brown: “I just screamed shoot him, shoot him,” he testified.

The Against Hired Guns summary describes what happened next. “As Bellusa pulled himself out of the car, two shots were quickly fired through the driver’s open window … by Bhatt before his gun jammed. Raheim Brown, Jr. had two bullets lodged in his body. It took Sergeant Bhatt five to ten seconds to clear the chamber of his gun, during which time he said loudly: ‘Fuck! Fuck!’ By this time, Bellusa was out of the car and at a safe distance, he said in his deposition. When asked whether he thought Brown was still a risk after the first two shots, Bellusa replied plainly: ‘No,’ and said that by this point, he had his own gun out. When asked why he didn’t pull his trigger, he replied: ‘Just like I said my statement with OPD, I didn’t see a threat.’

‘Tell me … about the gun’ 

Bellusa explained in his deposition that he’d noticed a gun sitting in the side pocket of the vehicle during the incident, but did not alert Bhatt that the gun was there until after the shooting had occurred. When Pointer asked, “And prior to you screaming ‘shoot him, shoot him’ you hadn’t said anything related to the gun?” Bellusa responded: “No.”

Shortly after the shooting, Bellusa testified he had an interaction with Sarna, then-OUSD chief, and Smith, the OUSD superintendent. According to details included in the deposition, this conversation took place at Oakland Police Department (OPD) headquarters, after Bhatt and Bellusa had been separated, prior to any formal interview with OPD regarding the shooting.

According to Bellusa’s testimony, Smith questioned him directly. “He said specifically ‘John, tell me where the gun was. Tell me everything you can remember about the gun and what it looked like.’”

Penetrating the Thin Blue Line

An introductory statement from Against Hired Guns notes that Bellusa “will likely be considered a ‘good’ cop” for publicly airing these allegations and making an unusual break from the code of silence that typically binds police departments.

Yet the activists aren’t willing to let the sergeant off the hook so easily. Asked why they took steps to preempt release of this information, Brooks, the spokesperson for Against Hired Guns, told the Guardian, “We thought that it was important so that the debate could be framed as part of the larger context of police and violence in Oakland, as opposed to this cop has now done something good, which makes him a good cop. … He was still present the night Raheim was murdered.”

Against Hired Guns wrote in an analysis included in press materials, “It has now been over two years since Raheim’s family lost him to the violence of policing.  They have relentlessly searched for justice and still do not know exactly what happened to him. At the very least, Bellusa or any of the people or agencies he spoke with, could have explained the context of Raheim’s killing to his family members, who continue to grieve and struggle with the loss of their son, father and lover.” 

The activists’ summary frames the issue in this way: “Sergeant Bellusa has now penetrated the ‘thin blue line’ that shields corrupt, abusive, violent police officers and departments. We are releasing this information as part of … a series that places the statements of Bellusa’s testimony in the larger overall context of policing in our society [and] the ‘thin blue line’ that protects officers from any consequences.”

Western SoMa Plan changed to lessen development impacts to nightlife and Muni

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The Western SoMa Community Plan had its first hearing before the Board of Supervisors Land Use and Economic Development Committee today, with dozens of speakers praising the eight-year citizen-based planning effort that developed it but with much of the testimony criticizing the plan’s emphasis on facilitating housing development to the exclusion of other goals.

As we’ve reported, the nightlife community has in recent months been pushing for changes to the plan that would better protect nightclubs from complaints and pressure from nearby residents, particularly along 11th Street. Area Sup. Jane Kim has supported that effort and those concerns were echoed by Sup. Scott Wiener, the committee chair and a strong nightlife advocate.

“I have had significant concerns about this plan…and I’m hoping we can address them over the course of this hearing,” Wiener said.

Wiener also opened another front of attack on the plan by noting that it doesn’t adequately pay for the impact that thousands of new housing units would have on Muni and other aspects of the transportation system. In particular, he criticized a policy in the plan that would let 13 large properties get increased density in exchange for higher affordable housing fees that would be offset by lower transit and other impact fees paid to the city.

“What are we doing to make sure our transportation system keeps pace?” Wiener asked of Planning Department staff, later asking again, “Where would we get the money to improve transit for these increased residents?” Wiener didn’t get back any answers that seemed to satisfy him, so he asked for a more detailed report when the plan returns next week for a second hearing. That concern was echoed by the third committee member, Board President David Chiu, who said, “Building housing without money for transit will lead to long-term problems.”

The concern seemed to revive a losing fight that Wiener led in December over expanding who pays the city’s Transit Impact Development Fee, which pitted transportation advocates against affordable housing activists. Fernando Marti of the Council of Community Housing Organizing rued the revival of that conflict. “We’ve been here before, pitting [transportation against affordable housing needs] as if it were a zero sum game,” Marti told the committee, noting the importance of policies to balance out market rate housing and calling it a “plan for stability in a neighborhood facing large-scale gentrification.”

Marti’s COCHO colleague Peter Cohen, who was closely involved with the plan’s creation, also urged the committee not to tweak the housing policies or the revenues it creates for affordable housing. “This is a major upzoning,” Cohen said. “In 20 years, perhaps all the market rate stock [of housing in the plan area] will be gentrified.”

But the issue raised most often during more than two hours of public testimony involved nightlife and the need to strike a better balance between housing development and entertainment, much of the input stirred up by the California Music and Culture Association, a industry-backed trade group that formed largely in response to crackdowns on clubs in SoMa.

“It’s often said San Francisco can plan more for fun, and this is a great opportunity to do that,” said Guy Carson, a CMAC founder who owns Cafe du Nord. Longtime nightlife advocate Terrence Alan took part in the Western SoMa Task Force for four years before resigning in frustration, and he told the committee, “We are bringing up issues we felt marginalized in bringing up earlier.”

But several people involved with the task force, as well as speakers representing development interests, urged supervisors to pass the place without significant modifications. “There are dozens or hundreds of compromises in this plan,” Cohen said, urging supervisors not to upset that careful balance.

Task Force Chair Jim Meko – whose leadership was widely praised in the testimony – detailed the extensive outreach and detailed work that went into the plan, and offered a simple plea to the committee: “Please pass this plan so we can get on with our lives.”

The committee unanimously voted to support the change made to the plan by the Planning Commission to ban new residential development on the raucous 300-block of 11th Street, but to reverse the commission’s decision to grandfather in one final 24-home residential project on that block, in the so-called “purple building” at 340 11th Street. A number of other small changes to the plan were also unanimously approved.

But Kim objected to Wiener’s motion to eliminate the plan provision that would reduce the transit and open space fees and raise the affordable housing fees that developers of those 13 large parcels would pay. “I don’t think it’s good policy to reduce transit impact fees when we’re increasing population,” Wiener said.

“This has gone through an extensive community process,” Kim countered, adding that, “I hate that we’re always having this discussion about transit versus affordable housing.”

But Chiu sided with Wiener and the amendment was approved on a 2-1 vote with Kim in dissent. Yet Chiu held open the possibility of changing his mind next week when the plan returns to committee for a final vote – the delay prompted by the other revisions in the plan – when Planning staff will provide more information on the fee structure and its impacts.

If the committee gives final approval to the plan next Monday, it could be before the full board for approval the next day.

Supervisors consider Western SoMa Plan, lots of new condos, and “the purple building”

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The fate of the “purple building” – which has become caught up in the clash between nightlife and residential interests on the clubgoer-saturated 300-block of 11th Street – remains undecided as the Western SoMa Community Plan heads into its first hearing before the Board of Supervisors Land Use and Economic Development Committee on Monday.

As we reported in this week’s paper, a unique citizen-based task force has spent the last eight years developing the plan, which will allow thousands of units of new housing – most of it along Folsom Street – to move forward once the plan gets final approval from the board. But the California Music & Culture Association and other nightlife advocates successfully amended the plan to ban new housing on that 11th Street block as the Planning Commission approved it in December.

Yet the commission also decided to grandfather in a 24-home project at 340 11th Street, the so-called purple building, which nightlife advocates say would put those new residents on a collision course with Slim’s, DNA Lounge, and other big nightclubs on that busy block. As we went to press, both sides and District 6 Sup. Jane Kim were all hopeful that a compromise was imminent, likely involving switching from residential to office.

But with just days to go before that hearing, building owner Tony Lo still hasn’t decided whether to make the change or fight it out in front of the supervisors. His architect John Goldman – whose residential design for the site was placed on hold by the city since shortly after he submitted it in 2005 – had hoped to hear by now but he’s still waiting for Lo to make the call.

“Based on my analysis, it looks feasible to change to offices if you want to do it, and I mean feasible financially and architecturally and planning-wise,” Goldman today told the Guardian, referring to what he told Lo.

Meanwhile, Western SoMa Task Force Chair Jim Meko – who has not been supportive of tweaking the plan after all the work he oversaw – yesterday sent out an email blast to stakeholders and supporters urging them to attend Monday’s hearing and show support for the plan.

“You don’t often get a chance to participate in making decisions about your own neighborhood from start to finish. Some special interest groups are expected to come out of the woodwork to take pot shots at the Plan so the hundreds of participants in this process need to make their voices heard. Your testimony at the hearing next week will make all the difference,” Meko wrote.

The hearing starts at 10am in board chambers in City Hall. This item might have been heard later in the day considering the agenda opens with a continuation of the controversial condo lottery bypass legislation, on which Board President David Chiu and others have been trying to forge a compromise between tenant advocates and homeowner groups. But committee Chair Scott Wiener just told us that item “will be continued. No compromise yet.”

Look for a quick decision on D4 appointment

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A Democratic Party resolution calling on Ed Lee to appoint a mother to the Board of Supervisors may have driven the slow-moving mayor to fill the seat of departing Sup. Carmen Chu quickly, perhaps as soon as today (Feb. 21), City Hall sources are saying.

Lee appointed Chu to fill the post of Assessor-Recorder vacated when Phil Ting moved to the state Assembly. But he’s been dragging his feet on naming Chu’s replacement.

Alix Rosenthal, a member of the Democratic County Central Committee, has put a resolution on the agenda for the group’s Feb. 27 meeting urging the mayor to name a woman with a family. Her argument:

Political office is often beyond the reach of mothers, because balancing a political life with family and work is often an insurmountable challenge.  Appointing a mother to fill the District 4 seat will demonstrate the Mayor’s commitment to stemming the tide of families leaving San Francisco, and it may serve to inspire women with children to be politically engaged, and to run for office themselves in the future.

That, of course, could put the mayor’s allies on the DCCC in a tough situation. Will they vote to urge the mayor to do something he doesn’t want to — or will they vote against, you know, motherhood?

Of course, if the mayor makes an appointment before Feb. 27, the resolution becomes moot.

Rosenthal and some other politically active women are supporting Suzy Loftus, a member of the Police Commission and a mom. But D4 is more than half Asian, and has always had an Asian supervisor, so it’s unlikely the mayor would appoint a non-Asian to the job.

One obvious candidate: Katy Tang, who is now Chu’s legislative aide.

The mayor will want someone he can count on as loyal — and who he’s pretty sure can win an election. His last two appointees to elective office, Christina Olague and Rodrigo Santos, were both defeated the first time they faced the voters.

But at this point, Lee isn’t saying anything. Look for an announcement soon.

 

 

 

Why do cops use hollow-point bullets?

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A Board of Supervisors committee will tomorrow (Thu/21) consider a pair of proposals to regulate the sale of ammunition in San Francisco. And while the legislation is all but certain to pass – gun control is always popular in San Francisco, even when it has minimal impact – one of the measures raises some interesting questions about our understanding of the purpose of deadly weapons.

Sponsoring Sup. Malia Cohen and Mayor Ed Lee held a press conference in December, shortly after the horrific shootings in Newtown, Connecticut, announcing proposals to require notification of the San Francisco Police Department when someone buys 500 round or more of ammunition and banning “the possession or sale of law enforcement or military ammunition.”

The latter measure concerns the sale of hollow-point bullets that are designed to expand after entering the bodies of their targets, which General Hospital Dr. Andre Campbell told those assembled at the press conference “create absolute devastation in the victims. When they strike a victim it’s like a bomb going off.”

So why do we let police officers use them? After all, while officers are instructed to shoot-to-kill when firing their guns, do we really need to make extra sure that those hit by police bullets die? I’m sure the families of the long list of people shot by police who are at most guilty of less than a capital offense — let alone innocent victims of overexuberant policing — might disagree with that approach.

Well, one reason that law enforcement sources cite for their use of hollow-point bullets is that they tend to stay in their targets, thereby reducing collateral damage from bullets exiting a victim and hitting someone else. Fine, but doesn’t that same logic also apply to criminals shooting at rivals in the street? Isn’t it better for their intended target to suffer more damage if it might save other innocent bystanders?

Incidentally, the use of hollow-point bullets was once recognized as a war crime, banned under the Hague Convention of 1899, precisely because of the extra damage they inflicted on human bodies. But now, San Francisco seeks to protect them for cops but ban them for citizens, which certainly seems to violate the spirit of the Second Amendment and intent of allowed an armed citizenry to stand against police state tyranny.

The board’s City Operations and Neighborhood Services Committee takes up the measure starting 10am in City Hall Room 263.

Clubs vs. condos

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steve@sfbg.com

The Western South of Market area is ground zero for the city’s War on Fun, a place where nightlife often comes into conflict with residential expectations, particularly on the raucous 300 block of 11th Street and, to a lesser degree, Folsom Street’s old “miracle mile” of predominantly gay bars.

As the city’s Planning Department and its development community looks to accommodate another 4,000 homes for 10,000 new residents on less than 300 acres of Western SoMa — most of it along Folsom Street between 7th and 13th streets — that potential for conflict could grow in the coming years as funky old buildings give way to shiny new stacks of expensive condos.

And efforts to sort it out may hinge on the future of a 105-year old purple building.

After nearly eight years of work by a unique citizen-led task force, the Western SoMa Community Plan is now before the Board of Supervisors, with the Land Use Committee set to hold its first hearing on Feb. 25. Despite dozens of task force meetings seeking to strike the right balance between residential and entertainment interests, the plan is still being tweaked.

When the Planning Commission approved the plan and some related projects on Dec. 6, it followed King Solomon’s approach of cutting the 11th Street baby in half. The commission heeded the recent recommendation of the nightlife community and District 6 Sup. Jane Kim to modify the plan to prohibit new residential development on the 11th Street block where tipsy visitors to Slim’s, DNA Lounge, and other big clubs clog the sidewalks every weekend. But it also voted to grandfather in a 24-unit residential project at 340 11th Street, which everyone now involved in closed-door negotiations simply calls “the purple building,” a two-story masonry structure built in 1907 that is awaiting demolition.

The building houses light industrial businesses and is the former home of Universal Electric, whose owner, Tony Lo, wants to develop the property. Along with architect John Goldman, Lo submitted a residential project application in 2005, only to have it placed on hold pending adoption of the Western SoMa Community Plan.

“It was well along when the Planning Department put the project on hold,” Goldman told us.

City officials and even many of the nightlife advocates say they sympathize with the long wait that Lo and Goldman have endured, even if many oppose housing on the site and have been urging Lo to find another use for the site, such as an office building.

“They would have no idea what they’re getting into until that first Saturday night,” nightlife advocate Terrance Alan said of the would-be residents of the building, envisioning a young couple who had only visited during daytime hours trying push a baby stroller past the throngs of club-goers. Alan took part in recent meetings Kim facilitated with Lo and Goldman, and Alan told us, “There was, for the first time, a very frank discussion about the problems that owners would experience and the pressure they would put on clubs in the area.”

For example, just one neighbor of Slim’s — a popular live music venue on the block owned by singer Boz Scaggs — has waged a relentless campaign that has forced temporary shutdowns and cost the club more than $750,000 in mediation costs, Alan said, despite the club’s sound buffering and general compliance with local codes.

Alan said that it’s simply unthinkable to add more than two dozen new homeowners to that busy block in a condominium building that only allows access on 11th Street. Alan is hopeful for a negotiated compromise with Lo, something that Kim told us she also thinks is likely.

“I’m hoping we can come to a consensus of the property owners and business owners on 11th street, including the purple building,” Kim said, echoing Alan’s point that, “Just one resident can really shut down a business and hurt its financing.”

Goldman said he understands the concern and “my client is considering alternatives to housing.” While he was a little frustrated that it wasn’t until November that they first heard about a proposal to ban residential projects on the block, “We’ve definitely heard the concerns of the nightlife entertainment folks…No decision has been made yet, but it’s the goal of my client to decide fairly soon.”

A ban on housing is just one of the changes that Alan and other members of the California Music And Culture Association (CMAC) are pushing the supervisors to make to the plan, provisions he was unable to get into the plan as a member of the Western SoMa Task Force for four years before resigning in frustration.

“The task force was made up of people primarily interested in residential development,” Alan told us. “The plan is pretty much about protecting residential.”

That perspective irritates task force chair Jim Meko, who said he held about 60 meetings on entertainment and nightlife issues and bent over backward to accommodate that community. “Overall, the Western SoMa Plan is very friendly to the entertainment industry,” Meko said, noting that the plan grandfathers in all existing nightclubs, even after a building is demolished, and requires new residential construction to buffer against street noise. “They’re never satisfied.”

But Meko does concede that accommodating existing residents and new residential development was central to the task force’s work, as it was charged with doing by the Planning Department. “The most important thing was to do no harm to anyone,” Meko said was the guiding philosophy behind the task force’s approach. “We’re the real test case for a mixed use community in the city.”

While Folsom Street has more bars that 11th street, and those bars will be protected under the plan, Meko said the idea was to keep them limited in scale and prevent the proliferation of large clubs that operate into the wee hours.

“Folsom Street is where the residential growth will go,” Meko said. “That’s the area where we want to add the most residential growth and it seems dumb to add more nightclubs there.”

But he also doesn’t think it makes economic sense for many clubs to open there anyway. With allowable height limits in that corridor being increased from 50 feet now up to 65 feet, and with the plan’s approval allowing development projects to move forward, many of what he called the “old junky buildings” where clubs could find cheap rent will likely be demolished.

“With the height increases, those buildings are going to be history in five years,” Meko said.

Kim said she is supportive of both nightlife and the plan’s facilitation of residential development.

“It’s transit-first and a good place to be able to handle the density that’s close to downtown,” Kim said, noting that she’s supportive of even the massive residential project proposed for 801 Brannan Street, mostly because it includes units with up to two and three bedrooms and an elegant design by architect David Baker.

That project would have 432 housing units with a total of 606 bedrooms, 22,124 square feet of retail, and a 422-car parking garage on a site of just over four acres. In many ways, it is typical of the housing density that will begin to crowd into Western SoMa.

Meko was critical of how the entertainment community was able to make changes to the plan after all the hard work of the task force, and he told us, “It was a choice Jane Kim had to make, and she will have to answer to her constituents in the future.”

But Kim said the change on 11th Street made sense and that it’s important to strike a balance. “Entertainment is clearly an important part of Western SoMa and 11th Street is unique in showcasing that community,” Kim said.

Alan and Glendon Hyde — an LGBT activist who, like Meko, ran against Kim for D6 supervisor two years ago — are also pushing for other changes in the rules governing nightlife in SoMa, including who can get the limited live music permits that the city issues and extending the 10pm curfew in those permits.

“I think small businesses throughout the district should be able to use the limited live music permits, and they’re available only on Folsom Street under the plan,” Hyde told us, noting that otherwise he thinks nightlife fares well until the plan, particularly after Kim’s intervention on 11th Street.

Kim said that she in reluctant to start tweaking too many provisions of the plan, which she characterized as a separate discussion that doesn’t have to happen now: “I’m open to further discussions after we get the plan passed.”

The Western SoMa Plan was broken off from the larger Eastern Neighborhoods Plan by then-Sup. Chris Daly in 2005 to let a citizen-based effort tackle this area’s unique challenges, and Kim said the plan is a testament to the diligent efforts of Meko and a diverse set of members.

“I think it was a really good process with lots of stakeholders involved,” Kim said. “I like the balance. I’m happy.”

 

Will it fly? Drones in Alameda County and (almost) San Francisco

During what one official called the “show-and-tell” portion of a public hearing held yesterday by a committee of the Alameda County Board of Supervisors, a representative from the Sheriff’s Office held up a drone so the crowd of 100 or so attendees could have a look. The small, lightweight device consisted of a plastic box to house technical equipment, a camera, and four spidery legs affixed with tiny black propellers.

“It’s cuute!” someone exclaimed. But that was likely a sarcastic wisecrack – concerned citizens had packed the board chambers in hopes of convincing the two-person Public Protection Committee that the civil liberties implications of surveillance drones were too great to justify flying them over Oakland and other cities. 

Last summer, Alameda County Sheriff Gregory Ahern submitted a Department of Homeland Security (DHS) grant request for an “unmanned aircraft system” (UAS), police-speak for drone. The agency intends to purchase one or two, depending on the manufacturer, for uses ranging from thermal imagery to crime detection.

The Sheriff now seeks supervisors’ approval, and is working to secure a Certificate of Authorization (COA) from the Federal Aviation Administration, required for aircraft flown at 400 feet. But the Sheriff’s plan has been met with strong resistance from civil liberties advocates worried that drones would open the gates to aerial surveillance and runaway data collection.

Concerns revolve around surveillance

Representatives from the Northern California chapter of the American Civil Liberties Union (ACLU), the Electronic Frontier Foundation (EFF) and the grassroots Alameda County Against Drones voiced myriad concerns about what they viewed as flimsy privacy protections put forward by the department. “The potential concerns with drones are too great to justify any use of drones at all in Alameda County,” said Nadia Kayyali of Alameda County Against Drones.

In turn, Sheriff representatives sought to defend its plan to use the devices, at one point practically asking critics to think of the children.

“We get several hundred calls a year for search and rescue, and deployment of our teams, to find lost children, lost hikers, or elderly persons,” Capt. Tom Madigan explained, and his co-presenter even referenced the case of famed kidnap victim Jaycee Dugard as a possible scenario where a drone could have been deployed. Commander Tom Wright assured supervisors that the drones would not be equipped with weapons, and stated that UAS devices would “not be used for indiscriminate mass surveillance.”

Yet the use of drones for surveillance and intelligence gathering lies at the heart of the controversy. “Data collected in the name of search and rescue could be retained for intelligence gathering and analysis,” ACLU staff attorney Linda Lye warned in comments delivered to the Public Protection Committee. “In conjunction with other existing policies, this would lead to the submission of UAS-collected data to the Northern California Regional Intelligence Center, also known as a ‘fusion center,’ where data – in some instances, about constitutionally protected activity –are stockpiled and analyzed in the name of so-called terrorism prevention.”

According to documents obtained by EFF and MuckRock News, the Sheriff’s Office indicated in its grant request that the unmanned aircraft could be used for “surveillance (investigative and tactical),” “intelligence gathering,” “suspicious persons” or “large crowd control disturbances,” the latter bringing to mind street clashes that flared up in downtown Oakland in 2011 when riot police sought to crush protests organized under the banner of Occupy Oakland. 

If the Alameda County Sheriff’s Department obtains drones, the unmanned aircraft could be deployed anywhere from Monterey to the Oregon border, Madigan noted, if regional law enforcement agencies determined that emergency circumstances warranted jurisdictional waivers.

Technology advancing

Unlike helicopters, drones can gather high-resolution footage and other kinds of data without detection, transmitting live video feed to a command post for real-time viewing. While the Sheriff’s Department is eyeing drones that travel a quarter of a mile from base with a 25-minute flight time capacity, the technology is advancing quickly. It’s technically possible for drones to be equipped with facial recognition technology, radar, or license-plate readers.

Those growing capabilities are part of the reason civil liberties advocates are so focused on hammering out strong privacy safeguards. “We’re wading into uncharted waters here,” Lye cautioned, noting that any privacy safeguards established for these drones would apply to more advanced models down the line. “We have to bake in the privacy safeguards into this template.”

The Alameda County Board of Supervisors held off on approving a drone purchase by the Sheriff Department late last year when faced with controversy. It was originally included as an agenda item before any public meeting had been scheduled, but was later removed after civil liberties advocates intervened. At a December meeting, Undersheriff Richard Lucia told supervisors that including drone approval on the agenda had been “an oversight.”

If Alameda County obtains a drone, it will be the first California law enforcement agency to do so. Several other cities are proceeding cautiously: Last week, for example, Mayor Mike McGinn of Seattle canceled a drone program amid heated controversy.

San Francisco also sought a drone 

Meanwhile, the Alameda County Sheriff’s Department is not the only Bay Area law enforcement agency eyeing unmanned aircraft devices. According to a document unearthed by an EFF and MuckRock News, the San Francisco Police Department (SFPD) submitted a $100,000 funding request to the Bay Area Urban Areas Security Initiative for a “remote pilot video camera,” basically a drone, that could be outfitted to “transmit real-time, geo-coded data to command centers.” The SFPD initially hoped to clear the FAA approval process by June of 2013, according to the document. However, its funding request was rejected. (It is unclear why San Francisco’s funding request for a drone was more than three times the funding request submitted by Alameda County.)

The grant request form notes that Lieutenant Thomas Feledy of the SFPD’s Homeland Security Unit sought funding for “the deployment of mobile compact video cameras in the visual and infrared spectrum … to provide live overhead views of critical infrastructure” in the event of a terrorist attack or natural disaster.

“It was rejected,” Officer Albie Esparza told the Guardian when we called SFPD media relations to ask about it. “And we have no plans of getting a drone.”

Supes scramble to find TIC deal

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Some San Francisco supervisors are scrambling to find an acceptable compromise that would prevent condo-conversion legislation by Sups. Scott Wiener and Mark Farrell from becoming a bitter battle that could be a no-win situation for centrists.

Board President David Chiu is meeting with tenant groups and trying to craft an alternative to the proposal, which would allow some 2,000 tenancy in common units to convert to condominiums. Wiener says the legislation is needed to provide housing stability to people in the almost-but-not-quite-a-condo world of TICs. Tenant activists who have met with Chiu say he’s discussing ways to limit speculation, which might include a five-year ban on the resale of converted condos. But that won’t be anywhere near enough for the tenant groups.

In fact, tenant and landlord groups are both talking to Sup. Norman Yee, who will be one of the swing votes, and who could introduce a series of amendments to the Wiener/Farrell bill that would be more palatable to tenants.

“They’ve had a couple of meetings,” Yee told me. “We’re just examining the issues to see if there’s a compromise. It would be great if we could work something out so the supervisors could feel better about voting on this.”

But any deal, Ted Gullicksen of the San Francisco Tenants Union told me, would require “structural reform of the future condo-conversion process.”

Yee could probably get away with that — he’s never relied on landlords or real-estate interests for his campaign money, and there aren’t that many TIC owners in his district, which is largely single-family homes. This won’t be a vote that will make or break his future in District 7.

On the other hand, it could be a huge issue for Sup. London Breed, who represents a district with a huge majority of tenants and the most progressive voting record in the city. Breed insists that she hasn’t made up her mind on the issue, and she told me she agrees she’s on the hot seat here: Much of her political and financial support came from Plan C and real-estate interests that want more condo conversions, but she would face furious policial fallout if she voted against tenants. “I am open to a compromise, but only if it’s good policy for the city,” she said.

Supervisors David Campos and John Avalos are strongly against the TIC bill, and it’s likely that Sups. Eric Mar (who got immense support from tenants in his recent re-election) and Jane Kim (who didn’t support the measure in committee) will oppose it unless it’s altered in a way that tenants can accept.

Naturally, Farrell and Wiener are on the yes side, as is, almost certainly, Sup. Carmen Chu.

That leaves Breed, Chiu, Yee, and Sup. Malia Cohen — and three of them have to vote Aye for the bill to pass. Chiu wants to run for state Assembly from the tenant-heavy side of the city, but, as always, he’s looking for a way to avoid an ugly fight.

The problem is that the tenants aren’t going to sign off on anything modest; if they’re going to accept the conversion of 2,000 units that used to be rental housing, they’re going to want to be absolutely certain it doesn’t happen again — and that there are new rules in place that halt the rampant assault on existing rent-controlled housing.

So either the folks in the center — Yee, Breed, Chiu, and Cohen — are going to have to force the landlords to accept some long-term reforms that they won’t like, or politicans like Breed are going to be forced to take a yes or not vote that could come back to haunt them.

 

 

 

 

Earthquake safety legislation could hit renters hard

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Pending legislation that would require seismic retrofitting of thousands of properties at the building owners’ expense could hit renters harder than anyone, causing evictions and increasing rents by up to 10 percent, impacts that tenant advocates are trying to get the Mayor’s Office and sponsoring Supervisors David Chiu and Scott Wiener to address.  

As stated in the Earthquake Safety Implementation Program (ESIP) Workplan, retrofit costs are expected to range from $10,000 to $20,000 per dwelling unit. In a five-unit building, this could add up to as much as $100,000. According to a public statement by Mayor Ed Lee, before the first retrofit is required, they will “develop financial incentives and assistance programs to help defray costs for property owners.”

But with apartment owners allowed to pass the cost of the work on to their tenants — a class of San Franciscans already being hit with rising rents, a wave of evictions, and legislation that would encourage more conversation of apartments into condos — this earthquake safety measure could make their situation even worse.

“We have concerns about this, mainly that landlords will be able to pass on the costs to tenants and that landlords will use it as a pretext to evict long-term tenants with affordable rents, so we’ll be working to increase tenant protections in this plan,” says Ted Gullicksen from the San Francisco Tenants Union.

According to the San Francisco Rent Board (SFRB) website, for seismic work that is required by law, 100 percent of the capital improvement cost may be passed through to the tenants, regardless of property size, over a period of 20 years. The increases are subject to an annual limitation of 10 percent of the tenant’s base rent. Gullicksen says that rent increases will be up to $100 a month for many tenants, which is on top of the annual 1.9 percent increase landlords are allowed to impose in rent-controlled apartments.

Another worry for long-term tenants is the possibility of eviction. The SFRB also states some of the just cause evictions these landlords could use would be “…non-payment or habitual late payment of rent… to perform capital improvements which will make the unit temporarily uninhabitable while the work is being done, and… to perform substantial rehabilitation of a building that is at least 50 years old, provided that the cost of the proposed work is at least 75 percent of the cost of new construction.” This would mean rent increases and nearly any construction could be the reason a long-term tenant would be evicted.

This seismic retrofitting could drive up rent prices around the city and be one more obstacle tenants have to face. As Gullicksen said, “I think the mayor and sponsors don’t understand the impact this will have on tenants, so we will look to educate them and press for amendments to lower the rent increases.”

Time out by the Bay

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OPINION Pretend that you and your best friends are entrusted — temporarily — with responsibility to run a big city. The energy of its people, the diversity of its residential neighborhoods, and its natural beauty have made this a successful city. The centerpiece of its natural beauty is its front yard, a body of sparking water called “The Bay.” You are entrusted with keeping the Bay accessible and visible to the people — all of whom own it.

One day developers come along and say that they want to build an entertainment complex on public property, right on this Bay. It will be a big, 14-story structure. It will bring in some 2 million patrons for more than 200 entertainment events each year. And, the developers go on, it will be in the middle of a residential community, mess up traffic and block physical and visual access to the Bay. Furthermore they tell you, we will need you to violate all the controls you have painfully placed on building heights and uses on the waterfront. And, by the way, they will need a subsidy of $120 million in public money.

Lastly they tell you, they will play 41 professional basketball games in the building. This will double or triple the value of their franchise — but unfortunately requires that they significantly increase the ticket price for their fans.

As a good manager you might ask what the landlord, the Port — which holds the land as a public trust — will get in return for its $120 million subsidy and for the use of public property. You are astonished to learn that, for the next many decades, the Port receives not a penny. Knowing the environmental damages, the impact on transportation in your city and being concerned about maintaining livable neighborhoods, you might then say: “Hold on — this is a bad deal. Is there not a better, less costly, less destructive, less divisive location in our city?”

You might say that — but SF’s city management has not. There has been no effort whatsoever to find a more appropriate location, one less destructive to San Francisco’s environmental values, that would require less than a $120 million subsidy.

And time has virtually run out to ask the basic question of whether the proposed site on Pier 30/32 is an appropriate site for this entertainment complex. The city is rushing headlong into making this deal. The Board of Supervisors does have final authority, but when it gets there, so much time and effort will have been spent that the likelihood of it being stopped is virtually zero.

You, the pretend manager, would surely call a time out. You would put together city officials and representatives of the city’s neighborhoods with the developer and require that they, together, come up with a site that all could gladly support. That might be what you’d do -– but it is not what is happening in the real world of City Hall.

It’s time for people like you, and others like you, to demand that the real city officials call a temporary halt to their juggernaut and provide a process that would first answer the basic question of whether Pier 30/32 is an appropriate site for this entertainment complex or whether alternative sites would not better serve the city and its Bay.

Rudy Nothenberg has held senior positions in the administrations of six San Francisco mayors.

Hearing called on America’s Cup “fundraising fiasco” as Mayor Lee talks about scaling back the event

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Amid reports that San Francisco taxpayers could be on the hook for more than $20 million in America’s Cup expenses because of anemic fundraising efforts by the America’s Cup Organizing Committee, today Mayor Ed Lee talked about scaling back the event and offering public naming rights to wealthy donors and Sup. John Avalos called for a Board of Supervisors hearing to look into the matter.

Following his monthly question time appearance before the Board of Supervisors, Lee was questioned about the issue by reporters, and he downplayed the idea that the city will go into the hole for its overzealous sponsorship of billionaire Larry Ellison’s big boat race.

“We’re not in the hole, but we will be if we don’t raise enough money. And I don’t want the pressure on the General Fund, and that would end up being an obligation that we have. By the way, while I’m raising, or helping to raise, some $20 million to cover that, I’m also asking all departments now that we have a, relative to what was going to be a larger race, now we don’t have as many boats, the expenses might be off so we have to kind of update it and reduce it. So with the combination of reducing the expense side and then raising some money as we’re doing from the private sector, we’re getting some new traction,” Lee said.

“We still have plans to spend upwards of $30 million to cover all the expenses, and we’re hoping that gets down to much less than that. But my goal right now is to get reports from all the departments about how to reduce their spending on this. I’m still going to try to raise the $20 million with the help of Senator Feinstein, Nancy Pelosi, and Lt. Gov. Newsom,” Lee said.

He also alluded to public goodies that he may offer to wealthy potential donors, including making a passing reference that “we’ve created some ongoing legacies, naming rights in areas that haven’t been named yet, we’ve cleared that with the Port to make sure it’s a very attractive package for them.” But ultimately, he said that city taxpayers are on the hook to pay for the impacts of this race: “This is a financial obligation that we signed on.”

Earlier in the day, the Telegraph Hill Dwellers – which has been active since the America’s Cup was first proposed in trying to ensure the event makes financial sense for the city – sent a letter to the board calling for a hearing and highlighting the ethically dubious actions by city officials that got us into this mess.

That letter follows in its entirety:

February 12, 2013

Supervisor Carmen Chu, Chair

Supervisor David Campos

Supervisor Malia Cohen

Government Audit and Oversight Committee

San Francisco Board of Supervisors

1 Dr. Carlton B. Goodlett Place

San Francisco, CA 94102

Re: Request for Oversight Hearing on America’s Cup Organizing Committee “Fundraising Fiasco”

Dear Members of the Government Audit and Oversight Committee:

As a northern waterfront neighborhood leader who has supported bringing the America’s Cup to San Francisco since Day One, I feel compelled to urge you to take urgent action to begin to restore a profound breach of public trust while there is still time left to salvage this event. 

News reports this week revealed the stunning news that San Francisco taxpayers may have to pay upwards of $20 million to subsidize the America’s Cup[1] despite public commitments stating that the event would not be taxpayer-funded and a signed contract designed to make that happen.[2]  In light of such astonishing news this close to the race, I request that you schedule a public hearing now to get answers to this critical question: what happened and how can we fix it?

Specifically, I encourage you to solicit testimony and an appearance before the Committee from the two individuals most responsible for the current $20 million shortfall out of the $32 million in private fundraising that was committed to prevent the need for taxpayer subsidies:  America’s Cup Organizing Committee Executive Director Kyri McClellan and America’s Cup Organizing Committee Chair Mark Buell.  These are the two individuals whose primary job it has been for the past two years to ensure that the America’s Cup Organizing Committee complied with its fundraising obligations.  Both Ms. McClellan and Mr. Buell have made numerous public statements over the past two years aimed at rebuffing all concerns about their ability to raise the $32 million. 

For example:

1)  “I have every confidence we will meet our obligations,” – Kyri McClellan, 6/13/11[3]

2)  “Yep, we are not running behind in the least bit,” – Kyri McClellan, 9/19/11[4]

3)  “I am confident that all the money will be raised,” – Mark Buell, 1/6/12[5]

4) “I’m busting my ass raising (money) for it.” – Mark Buell, 2/7/12[6]

5)  “we are confident that the agreement we have with the (America’s Cup) Event Authority coupled with our continued fundraising successes will ensure we meet our obligations to the city.” – Mark Buell, 2/7/12[7]

6)  “There is definitely more heavy lifting to be done, but we think we’re well-positioned to do that,” – Kyri McClellan, 2/8/12[8]

The role that Ms. McClellan has played in creating what is being referred to as a “fundraising fiasco”[9] should particularly be evaluated in light of the two ethics laws that were waived by the San Francisco Ethics Commission at the urging of members of the Board of Supervisors to enable her to shift seats across the negotiating table from her previous job working as the Mayor’s America’s Cup deal negotiator on behalf of the City into her private role working for the America’s Cup Organizing Committee.[10]  The twin dangers of reduced accountability and lax scrutiny that stem from this kind of “revolving door” between government and the private sector are precisely what the ethics laws that were summarily waived were put in place to prevent.  The question now must be asked whether the decision to waive ethics rules to allow someone playing such a central role to shift sides deserves a significant part of blame for the problems that have begun to come to light.

As a long-time supporter of the America’s Cup, I hope you will take swift action to get answers and correct the course of the event before it is too late.  Thank you very much for your time and consideration. 

Sincerely,

Jon Golinger

President

Telegraph Hill Dwellers

 


[1] America’s Cup could cost S.F. millions, Matier & Ross, S.F. Chronicle 2/10/13

[2] “[T]he [America’s Cup Organizing] Committee will endeavor to raise up to $32 million over a three year period from private sources, to reimburse the City for a portion of the City’s costs (including, without limitation, costs associated with CEQA review), and lost revenues, and City expenditures required to meet its obligations under Sections 8 and 10 (including resources from the police, and public works departments, the Port, DPT and MTA). The Committee’s fundraising targets for the three year period are $12 million for year one, and $10 million for years two and three.” – Section 9.4, 34th America’s Cup Host and Venue Agreement, 12/14/10

[3] America’s Cup Fundraising is Floundering, NBC News, 6/13/11

[4] America’s Cup reach tax exempt status, KGO ABC News, 9/19/11

[5] America’s Cup organizers hit first fundraising goal, SF Chronicle, 1/6/12

[6] America’s Cup needs ‘significant additional fundraising,’ SF Chronicle, 2/7/12

[7]Significant’ fundraising needed for America’s Cup group, SF Business Times, 2/7/12

[8] Controller:  America’s Cup needs more fundraising to cover city costs, SF Examiner, 2/8/12

[9] City Pushes to Fill Fundraising Gap for America’s Cup, KTVU Ch. 2, 2/11/13

[10] “In order to accommodate McClellan, commissioners agreed to waive two post-employment restrictions for city officials.  The first is a yearlong post-employment communications ban, and the second prohibits former city employees from receiving compensation from city contractors for two years. . . . Asked what would happen if ACOC somehow failed to raise the agreed-upon funds, placing McClellan in the position of having to explain the shortfall or re-negotiate with her former coworkers, Ethics Commission Deputy Executive Director Mabel Ng allowed, ‘If something like that happened, there might be a conflict.’ And what justification was given for waiving the ban on former employees receiving compensation from city contractors? “For that one, in the law itself, it says the commission may waive it … if it would cause extreme hardship,” Ng explained. “There would be a hardship, because … this is a great opportunity for her, and there was a short timeline for her to do it.”  Pressed on that point, Ng confirmed that the “hardship” in this case was the possibility of being barred from a great job opportunity, not the threat of financial impact or job loss. The other issue, Ng said, was that without McClellan serving in that post, the committee’s fundraising effort might not be successful. “It just seemed like, you need to have somebody take charge,” she said. “The committee may suffer without her at the helm. If she were not able to do that, the committee — which plays a very crucial role in this — may not be able to meet its obligations.’” Mayoral staff member to direct America’s Cup Organizing Committee, SF Bay Guardian, 4/7/11

 

 

Two good questions for Mayor Lee

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UPDATED When Mayor Ed Lee appears before the Board of Supervisors this afternoon (Tues/12) for the voter-mandated monthly “Formal Policy Discussions” (aka Question Time), he will be asked a couple of good, relevant questions with no easy answers. This is exactly what voters and progressive supervisors intended, a serious policy discussion, rather than sterile, hollow ritual that our current crop of politicians have turned it into.

The first question is by Sup. Eric Mar, who asks, “The Municipal Transportation Agency recently released its Draft Bicycle Strategy, which lays out an aggressive plan to upgrade San Francisco’s bicycle facilities. It supports biking for everyone, including seniors, families, and persons with disabilities. However, I am hearing growing concerns both in my district and city-wide about the mismatch between verbal commitments to better bicycling and budget realities. Currently, bicycle projects account for just 0.46 percent of all MTA capital. This is not enough to get us to the goals laid out in the Bicycle Strategy. How will you fund the Bicycle Strategy to make San Francisco a national leader in bicycling safety and use?”

Great question! This report, which came out in December, has the modest, realistic goal of increasing the share of vehicle trips taken by bike from 3.5 percent last year up to 8-10 percent by 2018. That already seems to abandon the official city goal – heavily touted by Lee and Board President David Chiu – of 20 percent by 2020. But even this new plan isn’t fully funded, so the question is simply asking the mayor whether he will put his money where his mouth is.

The second question comes from Chiu, who is trying to find a way to mediate the very real and challenging dispute between the city’s renters and those trying to convert more apartments into condos. Understanding where Lee stands on the issue is important to solving this problem, and Chiu’s question seems to genuinely seek guidance from the chief executive.

He asks, “Mr. Mayor, the Board of Supervisors is considering legislation to allow existing owners of Tenancies in Common (TICs) to bypass the condominium conversion lottery and be converted after the payment of a fee. I recently asked supporters of the legislation and tenant advocates to engage in negotiations, which Supervisor Farrell and I are hosting.

“What is your position on this pending legislation? What protections would you support to prevent the loss of rent-controlled housing in our increasingly unaffordable city? How would you address the concern that if we allow the current generation of TIC owners to convert, we will replace then with a new generation of TIC owners and additional real estate investments that will lead us right back to an identical debate within a short time?”

Again, excellent questions that go right to heart of one of the central struggles facing this city: Who gets to live here? And given Lee’s role in relentlessly promoting taxpayer-subsidized economic development strategies that are gentrifying the city and fueling this clash, one could argue that he has a moral obligation to help find a solution to this problem, or at the very least to say where he stands so voters can judge him accordingly.

Mayor Lee received these questions last week, so he and his staff have had plenty of time to think about them and prepare real, substantive answers. Will we get real answers or just the normal political platitudes that kick the can down the road in dealing with these pressing problems? We’ll see. Tune in at 2 pm to SFGOVTV to watch yourself, or check back here later and I’ll tell you what Mayor Lee said.

4PM UPDATE: And the winner is…meaningless political platitudes, misleading data, and shameless fence-sitting.

“I can’t say that I have a magic solution to this issue that will make everyone happy,” was how Mayor Lee answered Chiu’s question about the condo lottery bypass legislation, after saying he understood the positions of TIC owners who want to convert to condos and tenant groups concerned about the loss of what he called “the precious few rent-controlled units.”

Lee said he hopes that the two sides can find a “consensus solution” to the problem, which seems to indicate that he does indeed believe in magic considering the diametrically opposed viewpoints of the two sides and the zero sum game this issue represents. Afterward, I told the mayor that he didn’t seem to take a position on the issue and asked him to elaborate on what should be done, and he maintained that, “I actually did take a position, even though it didn’t sound like it, because I actually believe they have good points on both sides.”

Yet when KCBS reporter Barbara Taylor tried to help discern what that position may be, asking whether we could at least say that Lee didn’t support the legislation in its current form, he wouldn’t even agree to that weak stance. No, his position was that both sides have good points, even though they’re opposing points, and he’s hoping for the best. Next question.

Lee didn’t provide a clear or responsive answer on the bike question either. He reiterated his support for cycling improvements and said, “SFMTA’s prime responsibility is to ensure the streets are safe for all San Franciscans, and that includes bicyclists.” And he tried to dispute Mar’s point about how less than a half of 1 percent of the agency’s capital budget goes to bicycling improvements.

“To look at the percentage might not tell the whole story,” Lee said, citing how the SFMTA and the Transbay Joint Powers Authority are now seeking about $40 million in state and federal grants for transportation projects that would include cycling infrastructure improvements.

And that might have seemed like a somewhat responsive answer to the casual listener who isn’t aware that the price tag for improvements identified in the SFMTA Bicycle Strategy total about $200 million, of which the agency has only identified about $30 million in available funding. So the question of “How will you fund the Bicycle Strategy?” remains unanswered.

Perhaps it was too much to expect straight answers from a politician.

High-rise risk

The fate of 8 Washington, a luxury high-rise project planned for San Francisco’s northern waterfront, remains uncertain after landing at the center of a political firestorm last year. Yet a whopping $42 million, invested by the California State Teachers Retirement System (CalSTRS), is currently tied up in the project.

Months from now, in the November 2013 election, San Franciscans will vote on a building height-limit variance crafted for this particular development. If the variance goes down, the luxury development – in spite of winning entitlements last June with an 8-3 vote of the Board of Supervisors – will be toast. That outcome could jeopardize CalSTRS’ $42 million contribution, and some retired teachers are beginning to ask questions.

“We have been watching with particular concern what appears to be an incredibly risky investment by CalSTRS,” four retired CalSTRS members from San Francisco wrote in a letter to the pension fund’s investment committee last October, requesting information about how project developer Pacific Waterfront Partners had made use of the funds.

Investment amount increased 

In response to the teachers’ request for information, CalSTRS indicated that the investment committee had actually increased its contribution up from $31.7 million last March, when final project approval seemed imminent.

The CalSTRS investment committee added the project to its investment portfolio in 2006 with an initial $26.7 million commitment. Prior to that, the pension fund had partnered with Pacific Waterfront Partners in a different venture to refurbish San Francisco Piers 1 ½, 3 and 5. That development was well received by the community, and since CalSTRS earned a healthy return on investment, the 8 Washington project seemed like a safe bet at the time.

But now that it’s frozen for months and faces possible reversal, pressure is mounting on the CalSTRS investment committee.

Earlier this week, a Change.org petition created to ask the CalSTRS board to reconsider its investment garnered 150 online signatures in the first 24 hours. The online petition website lists the initiator as “Lorraine Honig, Retired Teacher,” but could just as easily read No Wall on the Waterfront, the name of the opposition campaign created last year to amass signatures for a voter referendum on 8 Washington. Honig and several retired teachers initially queried the pension fund’s investment committee in league with Jon Golinger, a key driver behind No Wall on the Waterfront and chairman of the Telegraph Hill Dwellers, a neighborhood organization.

Honig, who is actually a retired social worker, explained that she used to be a member of the Golden Gateway Tennis and Swim Club, a community fitness center that would be razed to make way for 8 Washington. She’s since moved away from the neighborhood, but feels the planned 8 Washington waterfront housing complex is the wrong kind of development for San Francisco.

“The thing I object to is, it’s high end luxury housing,” she said. “There’s nothing that’s going to cost under a million. A lot of it is going to be absentee owners.” As for the CalSTRS investment, Honig said she felt worried: “I’m concerned that our money will be used to influence the voting.”

Funding used to counter signature gathering campaign

CalSTRS’ response letter also revealed that project developer Pacific Waterfront Partners had used nearly $31,000 to counter No Wall on the Waterfront’s efforts to gather enough signatures to qualify for a referendum. An expense roster showed that funds were used to cover graphic design, flyer printing, legal and compliance advice and “outreach personnel” costs.

A flurry of news reports from last July, however, indicated that some “outreach personnel” did no more than stand on the streets and physically block signature gatherers from asking passersby to sign the petition against 8 Washington. According to one account, when a signature gatherer approached project principal Simon Snellgrove to complain about this behavior, he responded: “That’s their job.”

At the end of the day, Pacific Waterfront Partners’ $31,000 expenditure to try and derail No Wall on the Waterfront’s bid for the ballot is decimal dust compared with the full investment in a building that has not been constructed, and may never be.

CalSTRS spokesperson Michael Sicilia declined to offer comment to the Guardian, instead pointing to the CalSTRS letter of response to its members. That letter stated in part: “CalSTRS is optimistic that the successful development of the underutilized space along the San Francisco waterfront will provide benefits to CalSTRS members in the form of investment income, as well as many direct benefits to the neighboring community and the city.”

So far, CalSTRS has not provided documents in response to a public records request submitted by the Guardian seeking more information about the investment. And neither CalSTRS nor Pacific Waterfront Partners has answered questions about just what would become of that significant investment if the project were ultimately killed. When we put this question Pacific Waterfront Partners spokesperson PJ Johnston, he responded: “I certainly would not speculate on what happens after the outcome of the election.”

How is the money being spent?

All of this leaves some open questions. Will that investment be washed away if voters effectively reject the project? Is the rest of the money still sitting in Pacific Waterfront Partners’ accounts, or was it eaten up by pre-construction costs? Is Snellgrove’s firm biding its time until November, when some of the funding can be tapped as a war chest to respond to No Wall on the Waterfront’s ballot referendum with an oppositional blitzkrieg?

“I don’t have a breakdown of their investment costs,” Johnston told the Guardian when posed with questions about how the funds had been used. “All pre-development phases require funding,” he added, referencing environmental impact studies, permitting, and other pre-construction hurdles that major developments must clear. “This process was drawn out over a number of years.”

Johnston also criticized the No Wall on the Waterfront campaign, saying, “A small band of corporate and really, really rich neighbors have put this on the ballot.”

And the project opponents who have deep pockets know a thing or two about investment, Golinger suggested in a letter to CalSTRS. He wrote, “The supporters of No Wall on the Waterfront who have experience with institutional investing warn that some money managers resist learning from their mistakes and, instead, double down on them, trying to prove they were right all along. The beneficiaries of the funds with which you are entrusted are sensitive to warning signs … that may be happening here.”

CalSTRS is the nation’s second largest pension fund and a source of financial support for retired educators throughout the state. About 70 percent of the money used to provide benefits is derived from investment income, and the $152.1 billion pension fund had $21.8 billion invested in real estate as of July 2, 2012. The Sacramento Bee reported earlier this week that the pension fund faces a $64 billion deficit, and would need $4.5 billion per year to become fully solvent.

Uncertain outlook

With the fate of 8 Washington now hitched to the unpredictable forces of San Francisco politics and voter sentiment, this luxury high-rise investment looks far riskier than it likely did when Pacific Waterfront Partners approached CalSTRS’ investment committee years ago.

On a broader scale, there are signs that higher-risk investments are becoming problematic for pension funds across the board. An academic study released by researchers from Yale University and Maastricht Univeristy in the Netherlands tracked public pension systems in the U.S. and elsewhere, and determined that major U.S. funds like CalSTRS are trending toward higher risk investments.

“Gradually, U.S. public funds have become the biggest risk-takers among pension funds around the globe,” the authors concluded. “A major worry is that their increased risk-taking is reckless and could lead to substantial future costs to taxpayers or public entities if their more volatile risky investments fail to meet the expected rates of return.” 

At this stage of the game, it’s too soon to say whether CalSTRS’ investment in 8 Washington will ultimately become a statistic backing up that worrisome finding. Early polling results from David Binder Research showed that voters would likely reject the height-limit increase by 56 percent. But November is still many months away.

Pot hearing cancelled — but why?

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The state Senate Business, Professions, and Economic Development Committee was slated to hold a hearing Feb. 11 on Assemblymember Tom Ammiano’s efforts to create a regulatory framework for medical marijuana. That’s a fairly common practice when a new set of professional regulations is proposed; it’s called a “sunrise” hearing, and the idea is to get all the players in the room and see what kinds of concerns they have. A bill Ammiano introduced last year, AB 2312, would have put the authority to set state regs under the Department of Consumer Affairs; it died in the state Senate, but it will come back in some form or another.

So the committee chair, Sen. Curren D. Price, a Los Angeles Democrat, set the hearing, and committee staff went about rounding up witnesses — and then five days before the gavel dropped, the whole thing was called off.

What happened? Couple of things.

For starters, the office of Gov. Jerry Brown officially doesn’t like marijuana. And the DCA is part of the governor’s office. And the attorney general, Kamala Harris, has been awfully careful about getting into the medical marijuana fray. And the feds — or at least, the US attorney for Northern California — officially hates anything to do with the devil weed.

And all of those people should have been part of the regulatory discussion, except that somehow, they couldn’t quite make it to the hearing. “We had difficulty getting representatives of the administration and the attorney general to come,” Committee Consultant G. V. Ayers told me.

Then there’s the fact that Price is running for Los Angeles City Council (funny — in San Francisco, the supervisors want to be in the state Legislature. In LA, the state legislators want to be on the City Council. Possibly because there are no term limits, and there’s a huge city budget). And the election is in March. And anything Price (who has supported medical marijuana in the past) said or did that suggested he loves loco weed might get slung at him in the waning days of a long, expensive campaign.

So in 2013, everyone’s still afraid of pot. “What’s up with marijuana?” Ammiano asked me. “You can’t even have a hearing?”

Apparently not.

Out of place

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news@sfbg.com 

In his State of the City address last week, Mayor Ed Lee cheerfully characterized San Francisco as “the new gravitational center of Silicon Valley.” He touted tech-sector job creation. “We have truly become the innovation capital of the world,” Lee said, “home to 1,800 tech companies with more than 42,000 employees — and growing every day.”

From a purely economic standpoint, San Francisco is on a steady climb. But not all residents share the mayor’s rosy outlook. Shortly after Lee’s speech, renowned local author Rebecca Solnit published her own view of San Francisco’s condition in the London Review of Books. Zeroing in on the Google Bus as a symbol of the city’s housing affordability crisis, she linked the influx of high-salaried tech workers to soaring housing costs. With rents trending skyward, she pointed out, the dearth of affordable housing is escalating a shift in the city’s cultural fabric.

“All this is changing the character of what was once a great city of refuge for dissidents, queers, pacifists and experimentalists,” Solnit wrote. “It has become increasingly unaffordable over the past quarter-century, but still has a host of writers, artists, activists, environmentalists, eccentrics and others who don’t work sixty-hour weeks for corporations — though we may be a relic population.”

LIMITED OPTIONS

The issue of housing in San Francisco is highly emotional, and there is perhaps no greater flashpoint in the charged debate than Ellis Act evictions.

When the housing market bounces upward, Ellis Act evictions tend to hit long-term tenants whose monthly payments, protected by rent control, are a comparative bargain. Even if they’ve submitted every payment on time and upheld every lease obligation for 20 years, these renters can find themselves in the bind of being forced out.

And they don’t just lose their homes; often they lose their community. San Francisco has become so expensive that many Ellis Act victims are tossed out of this city for good.

Enacted in 1986, the state law allows a landlord to stop renting units, evict all tenants, and sell the building for another purpose. Originally construed as a way for landlords to “go out of business” and move into their properties, the Ellis Act instead gained notoriety as a driving force behind a wave of evictions that slammed San Francisco during the tech boom of the late 90s. Between 1986 and 1995, just 29 Ellis evictions were filed with the San Francisco Rent Board; in the 1999-2000 fiscal year alone, that number ballooned to a staggering 440.

Under the current tech heyday, there are indications that Ellis Act evictions are gaining fresh momentum. The San Francisco Rent Board recorded 81 this past fiscal year, more than double that of the previous year, and there appears to be an upward trend.

TIC CONTROVERSY

Buildings cleared via the Ellis Act are typically repackaged as tenancies-in-common (TIC), where several buyers jointly purchase a multi-unit residence and each occupy one unit. Realtors often market TICs as a path to homeownership for moderate-income individuals, creating an incentive for buyers to enter into risky, high-interest shared mortgages in hopes of later converting to condos with more attractive financing.

The divide between TIC owners and renters came into sharp focus at a contentious Jan. 28 hearing, when a Board of Supervisors committee met to consider legislation that would allow some 2,000 TIC units to immediately convert to condos without having to wait their turn in a requisite lottery system.

One TIC owner said he was financially burdened, but had only entered into the arrangement because “I wanted to stay here and raise my family, but we couldn’t afford a single family home.” Yet tenants brought their own set of concerns to the table, saying the temptation to create TICs was putting a major dent in the city’s finite stock of rent-controlled units — the single greatest source of affordable housing in San Francisco.

“My feeling is, let’s stop doing TICs,” Tommi Avicolli Mecca, a tenants right activist with the Housing Rights Committee, told the Guardian following the hearing. “The city has to just start making sure that the condos that are built are the kind of thing [TIC buyers] can afford. Instead, we cannibalize our rental stock? That’s a reasonable way? You evict one group of people to house another: How does that make sense?”

The grueling five-hour hearing illustrated the sad fact that San Franciscans in a slightly better economic position were being pitted against economically disadvantaged renters. The two groups were bitterly divided, and all seemed weary, furious, and frustrated by their housing situations.

The condo-conversion legislation, co-sponsored by Sups. Scott Wiener and Mark Farrell, did not move forward that day. Instead, Board President David Chiu made a motion to table the discussion until Feb. 25, to provide time for “an intensive negotiation process.” Chiu, who rents his home, added: “While I myself would like to become a homeowner someday … I do not support the legislation in its current form.”

Sup. Jane Kim sought to appeal to the tenants as well as the TIC owners. “It’s very tragic that we have set up a situation where [TICs and renters] are pitted against one another,” she said. She hinted at what a possible alternative to might look like. “We should be looking at a ban of scale,” she said. “If we allow 1,800 potential units to go thru this year, are we willing to do a freeze for the next 8 to 10 years?”

It’s unclear what will happen in the next few weeks, but if this legislation makes it back to the full board in some form, the swing votes are expected to be Sups. London Breed, Malia Cohen and Norman Yee.

CASH OR EVICTION?

New protections were enacted following the late-90s frenzy to discourage real-estate speculators from using the Ellis Act to turn a profit on the backs of vulnerable seniors or disabled tenants. Yet a new wave of investors has discovered they can persuade tenants to leave voluntarily, simply by offering buyouts while simultaneously wielding the threat of an Ellis Act eviction. “The process got more sophisticated,” explains San Francisco Rent Board Deputy Director Robert Collins.

Once a tenant has accepted a check in lieu of eviction, rent-controlled units can be converted to market rate, or refurbished and sold as pricey condos, without the legal hindrances of an eviction blemish. Buyouts aren’t recorded with the Rent Board, and the agency has no real guidance for residents faced with this particular dilemma. “We don’t have the true number on buyouts,” says Mecca. “We don’t know how many people have left due to intimidation.”

Identity-wise, renters impacted by the Ellis Act defy categorization. A contingent of monolingual Chinese residents rallied outside City Hall recently to oppose legislation they believed would give rise to evictions; in the Mission, many targeted tenants are Latinos who primarily speak Spanish. From working immigrants, to aging queer activists, to disabled seniors, to idealists banding together in collective houses, the affected tenants do have one thing in common. When landlords or real-estate speculators perceive that their homes are more valuable unoccupied, their lives are susceptible to being upended by forces beyond their control.

The upshot of San Francisco’s affordability crisis is a cultural blow for a city traditionally regarded as tolerant, forward thinking, and progressive. In the words of Rose Eger, a musician who faces an Ellis Act eviction from her apartment of 19 years, “it changes the face of who San Francisco is.

Out of the Castro

By Tim Redmond

You can’t get much more Castro than Jeremy Mykaels. The 62-year old moved to the neighborhood in the early 1970s, fleeing raids at gay bars in Denver. He played in a rock band, worked at the old Jaguar Books, watched the rise of Harvey Milk, saw the neighborhood transform and made it his home.

He’s lived in a modest apartment on Noe Street for 17 years, and for the past 11 has been living with AIDS. Rent control has made it possible for Mykaels, who survives on disability payments, to remain in this city, in his community, close to the doctors at Davis Hospital who, he believes, have saved his life.

And now he’s going to have to leave.

In the spring of 2011, his longtime landlords sold the building to a real-estate investment group based in Union City — and the new owners immediately sought to get rid of all the tenants. Two renters fled, knowing what was coming; Mykaels stuck around. In September of 2012, he was served with an eviction notice, filed under the state’s Ellis Act.

He’s a senior, he’s disabled, his friends are mostly dead and his life is in his community — but none of that matters. The Ellis Act has no exceptions.

Mykaels spent a fair amount of his life savings fixing up his place. The walls are beige, decorated with nice art. Dickens the cat, who is chocolate brown but looks black, wanders in and out of the small bedroom. Mykaels has been happy there and never wanted to leave; “this,” he told me, “is where I thought I would live the rest of my life.”

There’s no place in the Castro, or even the rest of the city, where he can afford to move. Small studios start at $2,500 a month, which would eat up all of his income. There is, quite literally, nowhere left for him to go.

“A lot of my friends have died, or moved to Palm Springs,” he said. “But this is where my doctors are and where I’m comfortable. I’m not going to find a support system like this anywhere else in the world.”

Mykaels is the face of San Francisco, 2013, a resident who is not part of the mayor’s grand vision for bringing development and high-paying jobs into the city. As far as City Hall is concerned, he’s collateral damage, someone whose life will have to be upended in the name of progress.

But Mykaels isn’t going easily. The former web designer has created a site — ellishurtsseniors.org — that lists not only his address (460 Noe) and the names of the new owners (Cuong Mai, William H. Young and John H. Du) but the addresses of dozens of other properties that are facing Ellis Act evictions. His message to potential buyers: Boycott.

“Do not buy properties where seniors or the disabled have been evicted for profit by real estate speculators using the Ellis Act,” the website states.

Mykaels is a demon researcher — his site is a guide to 31 properties with 94 units where seniors or disabled people are being evicted under the Ellis Act. In some cases, individuals or couples are filing the eviction papers, but at least 14 properties are owned by corporations or trusts.

Mai told me that he knew a disabled senior was living in the building when he and his two partners bought it, but he said his plan all along was to evict all the tenants and turn the three-unit place into a single-family house. He said he hasn’t decided yet whether to sell building; “I might decide to live there myself.” (Of course, if he wanted to live there himself, he wouldn’t need the Ellis Act.)

Mai said he “felt bad about the whole situation,” and he had offered to buy Mykaels out. The offer, however, wouldn’t have covered more than a few months of market rent anyplace else in the Castro.

By law, Mykaels can stay in his apartment until September. If he can’t stave off the eviction by then, San Francisco will lose another longtime member of the city community.

 

Dark days in the Inner Sunset

By Rebecca Bowe

The living room in Rose and Willie Eger’s Inner Sunset apartment is where Rose composes her songs and Willie unwinds after playing baseball in Golden Gate Park. Faded Beatles memorabilia and 45 records adorn the walls, and a prominently displayed poster of Jimi Hendrix looms above a row of guitar cases and an expansive record collection.

It’s a little worn and drafty, but the couple has called this 10th Ave. apartment home for 19 years. Now their lives are about to change. On Jan. 5, all the tenants in their eight-unit building received notice that an Ellis Act eviction proceeding had been filed against them.

“The music that I do is about social and political things,” explains Rose, dressed from head-to-toe in hot pink with a gray braid swinging down her back. Determined to derive inspiration from this whole eviction nightmare, she’s composing a song that plays with the phrase “tenants-in-common.”

Cindy Huff, the Egers’ upstairs neighbor, says she began worrying about the prospect of eviction when the property changed hands last summer. Realtor Elba Borgen, described as a “serial evictor” in online news stories because she’s used the Ellis Act to clear several other properties, purchased the apartment building last August, through a limited liability corporation. The notice of eviction landed in the mailbox less than six months later. (Borgen did not return Guardian calls seeking comment.)

“With the [average] rent being three times what most of us pay, there’s no way we can stay in the city,” Huff says. “The only option we would have is to move out of San Francisco.” She retired last year following a 33-year stint with UCSF’s human resources department. Now, facing the prospect of moving when she and her partner are on fixed incomes, she’s scouring job listings for part-time work.

The initial notice stated that every tenant had to vacate within 120 days, but several residents are working with advocates from the Housing Rights Committee in hopes of qualifying for extensions. Huff and the Egers are all in their fifties, but some tenants are seniors—including a 90-year-old Cuban woman who lives with her daughter, and has Alzheimer’s disease.

Willie works two days a week, and Rose is doing her best to get by with earnings from musical gigs. Both originally from New York City, they’ve lived in the city 35 years. When they first moved to the Sunset, it resembled something more like a working-class neighborhood, where families could raise kids. The recent tech boom has ushered in a transformation, one that Rose believes “changes the face of who San Francisco is.” Willie doesn’t mince words about the mess this eviction has landed them in. “I call it ‘Scam-Francisco,'” he says.

The trio recently joined tenant advocates in visiting Sup. Norman Yee, their district supervisor, to tell their stories. Yee, who is expected to be one of the swing votes on an upcoming debate about condo-conversion legislation vehemently opposed by tenant activists, reportedly listened politely but didn’t say much.

As for what the next few months have in store for the Egers? “I can’t really visualize the outcome,” Rose says. “I can only visualize the day-to-day fight. And that’s scary.”

 

Fighting for a home in the Mission

By Tim Redmond

Eleven years ago, Olga Pizarro fell in love with Ocean Beach. A native of Peru who was living in Canada, she visited the Bay Area, saw the water and decided she would never leave.

Fast forward to today and she’s built a home in the Mission, renting a small room in a basement flat on Folsom Street. The 55-year-old has lived in the building for eight years; polio has left her wearing a leg brace and she can’t climb stairs very well, but she still rides her bike to work at the Golden Gate Regional Center. She’s a sociologist by training; the walls in her room are lined with bookshelves, with hundreds of books in Spanish and English.

The place isn’t fancy, and it needs work, but it’s hard to find a ground-floor apartment in the Mission that’s affordable on a nonprofit worker’s salary. Since 2011, when she moved in, she and her three housemates have been protected by rent control. And Pizarro’s been happy; “I love the neighborhood,” she told me.

The letter warning of a pending eviction arrived Jan. 16. A new owner of the building wants to turn the place into tenancies in common and is prepared to throw everyone out under the Ellis Act. There’s no place else in town for Pizarro to go.

“I’ve looked and looked,” she said. “The cheapest places are $2,500 a month or more. Maybe I’ll have to move out of the city.”

Pizarro’s building is owned by Wai Ahead, LLC, a San Francisco partnership registered to Carol Wai and Sean Lundy. I couldn’t reach Wai or Lundy, but their attorney, Robert Sheppard, had plenty to say. “San Francisco is going the way of New York,” he told me. “Manhattan is full of co-ops that used to be rentals, and lower-income people are moving to Brooklyn and Queens. That’s happening here with Oakland and further out.” He argued that TICs, like co-ops, provide home-ownership opportunities for former renters.

Sheppard, who for years represented tenants in eviction cases, said the Ellis Act is law, and America is a capitalist country, and “as long as there is a private housing market, there will be shifts of people as the housing market shifts.” He agreed that it’s not good for lower-income people to lose their homes, but “the poor will always be hurt by a changing economy. It’s called evolution.”

Pizarro told me she’s shocked at how expensive housing has become in the Mission. “It’s gotten so gentrified,” she said. “People show up in their BMWs. It’s starting to feel very isolated.”

She’s fighting the eviction. “I didn’t intend it to be this way,” she explained. “I just want to live here.” Lacking any family in the area, the Mission has become her community — “and I’m frustrated by the violence of how expensive it is.”

 

Affordability goes out of style

By Rebecca Bowe

Hester Michael is a fashion designer, and her home doubles as a project space for creating patterns, sewing custom clothing, weaving cloth, and painting. She’s lived in her Outer Sunset two-bedroom unit for almost two decades, but now she faces an Ellis Act eviction. Michael says she initially received notice last June. The timing was awful -– that same month, her husband passed away after a long battle with terminal illness.

“I’ve been here 25 years. My friends are here, and my business. I don’t know where else to go, or what else to do,” she says. “I just couldn’t picture myself anywhere else.”

Michael rents the upstairs unit of a split single-family home, a kind of residence that normally isn’t protected by rent control. Yet she leased the property in 1994, getting in under the wire before that exemption took effect. Since she pays below-market-rate rent in a home that could be sold vacant for top dollar, a target was essentially inscribed on her back when the property changed hands in 2004. That’s about when her long battle with the landlords began, she says.

From the get-go, her landlords indicated that she should look for a new place, Michael says, yet she chose to remain. The years that followed brought things falling into disrepair, she says, and a string of events that caused her feel intimidated and to fear eviction. Finally, she consulted with tenant advocates and hired an attorney. A complaint filed in superior court alleges that the property owners “harassed and retaliated [Michael] when she complained about the defective and dangerous conditions …telling [her] to move out of the property if she did not like the dangerous conditions thereat … repeatedly making improper entries into [the] property, and wrongfully accusing [her] of causing problems.”

Records show that Angela Ng serves as attorney in fact for the property owner, Ringo Chung Wai Lee. Steven Adair MacDonald, an attorney who represents both landlords and tenants in San Francisco housing disputes, represents the owners. “An owner of a single family home where the rent is controlled and a fraction of market has virtually no other choice but to terminate the tenancy,” MacDonald said when the Guardian reached him by phone. “They’ve got to empty it, and the only way to empty it is the Ellis Act.”

While Michael received an extension that allows her to remain until June 5, she fears her custom sewing business, Hester’s Designs, will suffer if she has to move. There’s the issue of space. “I have so much stuff in this house,” she says. And most of her clients are currently located close by, so she doesn’t know where her business would come from if she had to relocate. “A lot of my clients don’t have cars,” she says, “so if I live in some suburb in the East Bay, forget it. I’ll lose my business.”

The prospect of eviction has created a major dilemma for Michael, who first moved to San Francisco in 1987. While moving to the East Bay seems untenable, she says renting in San Francisco feels out of reach. “People are renting out small, tiny bedrooms for the same price as I pay here,” she says. With a wry laugh, she adds: “I don’t think there’s any vacant apartments in San Francisco -– unless you’re a tech dude and make seven grand a month.”

Avalos to call on SF retirement system to divest from fossil fuels

San Francisco’s city pension fund may have as much as $1 billion tied up in companies that control fossil fuel reserves, such as Exxon, BP, Shell and Chevron. At the Board of Supervisor’s meeting this afternoon, Sup. John Avalos plans to introduce a resolution calling on the San Francisco Employees Retirement System (SFERS) to divest from leading fossil fuel giants. 

The resolution, which urges the San Francisco Retirement Board to stop investing in stocks and and mutual funds with shares in coal, oil and gas companies, was created with input from nationwide environmental organization 350.org. Last year, 350.org launched a campaign calling on universities to divest from 200 targeted fossil fuel companies as a way to tackle global climate change.

“They’re the companies that own the vast majority of the world’s fossil fuel reserves – who actually own the carbon that’s sitting in the ground,” explains Jamie Henn, cofounder and communications director of 350.org. When these fossil fuel reserves are extracted and burned to generate power, they’ll emit greenhouse gases such as carbon dioxide, worsening the impact of global climate change.

Scientists have calculated that from here on out, a total of 565 gigatons of carbon dioxide can be emitted into the atmosphere before the planet’s global average temperature increases by two degrees Celsius. Despite widespread international consensus that crossing this threshold would bring unacceptable consequences, says Henn, the 200 targeted companies can access enough oil and gas reserves to eventually emit five times as much CO2 into the atmosphere.

“Their share prices are based on their ability to burn those reserves,” Henn said. “The only way we can tackle climate change in this country is if we weaken the fossil fuel industry.”

To that end, Avalos is acting locally.

“San Francisco has aggressive goals to address climate change,” the District 11 supervisor noted. “It’s important that we apply these same values when we decide how to invest our funds, so we can limit our financial contributions to fossil fuels and instead promote renewable alternatives.”

Supervisors do not have control over the investment decisions of the San Francisco Retirement Board, which controls the city’s $16 billion pension fund, so Avalos’ resolution would not impose a legal obligation to divest. Yet a Budget & Finance Committee hearing about the proposed resolution could help raise awareness of the issue, noted Jeremy Pollock, a legislative aide to Avalos. The idea is to start a conversation about “what our social investment policy is, with regard to retirement funding,”  he explained.

If Avalos’ resolution to divest in fossil fuels is ultimately approved by the full board, San Francisco would become the second city in the nation to take such a step. Seattle Mayor Mike McGinn called on city retirement funds to abandon stocks in coal, oil and gas companies last December.

In addition to the resolution calling for divestment from fossil fuels, Avalos also plans to introduce a resolution urging the San Francisco Retirement Board to divest from publicly traded manufacturers of firearms and ammunition.

City considers making building owners do seismic upgrades

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City Hall sources have confirmed the basic details of a San Francisco Public Press report from Friday afternoon that the Board of Supervisors will consider requiring the owners of soft-story buildings of three stories or more to seismically retrofit them by 2020 – at the expense of building owners, something sure to rouse controversy.

The legislation was developed and introduced by the Mayor’s Office and it’s being sponsored by the board’s two most prolific and effective supervisors, Board President David Chiu and Sup. Scott Wiener, which is probably a signal that city officials know this one is going to be “challenging,” as one source told us.

Details are still being hammered out before the measure is introduced at tomorrow’s board meeting, including some of the financing options that would be open to property owners. But after voters in 2010 narrowly rejected Measure A, a bond that would have provided low-cost loans for the seismic retrofits, property owners could be forced to dig deep to ensure their buildings don’t collapse in an earthquake.

Wiener confirmed that the legislation would be mandate on building owners without public money attached: “It would be a mandate that they within a certain time frame do an earthquake retrofit,” Wiener told the Guardian.

As the Public Press reported, the legislation would apply to all wood-framed buildings of three stories or more built before 1978, with smaller buildings and single-family homes exempted. In the most recent print edition of the Public Press, extensive coverage of the city’s earthquake vulnerabilities estimated that about 58,000 San Franciscans live in the nearly 3,000 soft-story buildings deemed dangerous places to be when the next big earthquake hits.

Wiener said city officials have been deeply involved with negotiations with various effected groups, including building owners and their tenants, who could face displacement as the work is done or higher rents if landlords pass through those costs. Wiener said the legislation is bound to evolve as talks and hearings continue: “There are a lot of variables and the introduction is really just a preliminary step.”

Supes call for stronger SRO safety measures

It’s no secret that tenants living in single room occupancy hotels (SROs) often grapple with health and safety issues, from bedbug infestations to plumbing problems.

At a committee hearing this afternoon, members of the Board of Supervisors will consider legislation [PDF] introduced by Sup. Eric Mar that would amend the housing code to require owners of SROs to install grab bars in common-area bathrooms, and to provide working phone jacks in each SRO unit.

These measures may seem relatively small, but Tony Robles of the Senior & Disability Action Housing Collaborative says installing grab bars can go a long way toward preventing falls, a leading cause of injury deaths for people older than 65.

In SROs, “there’s a lot of folks who have mobility problems,” Robles explains. “Many are disabled, or elders.” He said knows an elderly woman living in an SRO who recently fell and now faces hip surgery.

“This legislation is about safety, and it’s about quality of life,” Robles said. “It’s not just affluent folks who deserve to live in reasonably habitable conditions.”

Last June, advocates with Senior Action Network and several SRO collaboratives published detailed findings [PDF] from an in-depth survey of 151 SRO residents living in Chinatown, the Mission, SoMa and the Tenderloin. Most respondents were older than 55, and 62 percent identified as having a disability.

The in-depth study found that safety issues topped the list of residents’ concerns. Many respondents said they feared falling on the stairs or in the shower, and less than half reported having grab bars in their bathrooms.

The legislation, which was co-sponsored by Supervisors Jane Kim, David Campos and David Chiu, would also require SRO operators to install working phone jacks in residents’ rooms, which can be critical for tenants who need a way to communicate in case of an emergency.

According to the study findings, these low-income tenants face a host of other issues too:

“About one-third or more of survey respondents said their hotel had a problem with bedbugs, other infestations, visitor policy violations, electrical problems, unsanitary bathrooms, and harassment/ disrespect. One-fifth of respondents also cited problems with heat, plumbing, personal safety, fire safety, and maintenance and repairs. 
More than half (53%) had no access to a kitchen in their building, and 18% of respondents said they skip meals due to lack of resources or facilities.”

San Francisco has more than 500 residential hotels, according to city records, with more than 19,000 units. An estimated 8,000 seniors and adults with disabilities live in SROs.

Robles remarked that it took courage for the SRO residents to speak up in hopes of improving their living conditions. “Tenants in theses SROs oftentimes are intimidated to say anything,” he said. “Some folks might have feared reprisal.”

More unregulated cabs on the street

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So the state regulators have decided that it’s just fine for companies that pretend not to be taxi operators to operate taxis in San Francisco. That means Lyft and Uber can keep picking up passengers, charging them a “recommended donation” and avoiding the regulations that San Francisco wisely put in place to protect the public.

But the fact that the state thinks this is just fine and dandy, for now anyway, doesn’t mean San Francisco has to do the same. This city has the right to put rules in place for people conveying passengers within its 49 square miles — and those rules ought to apply to Lyft and Uber and Sidecar, too.

Cabs have to carry medallions, or permits. There are a limited number, and they can’t be owned by corporations, only by active cab drivers. You can buy one now — for about $200,000 — or you can get in line and wait, for about 15 years. If the city wants more cabs on the streets and likes the Lyft model, fine: The Municipal Transportation Agency can issue more permits, and if the venture capitalists backing Lyft want to pay for them, they can do so.

I’m not against Lyft or anyone else who has a good idea to serve the public in a way that isn’t being offered now, and I agree that this is the kick in the pants a slow-moving industry needs to develop (fairly simple) apps that allow people to figure out where the nearest cab is and when it’s coming.

But right now, we have an unregulated industry operating in competition with a heavily regulated industry, and it’s not fair. The City Attorney’s Office ought to look into this; the supervisors ought to investigate and force the newcomers to follow the rules. Sure: Lyft. But not this way.

Activists slam hollow report on SFPD-FBI spying

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UPDATE: SUHR APOLOGIZES FOR REPORT The San Francisco Police Department continues to resist meaningful oversight of its partnership with the FBI’s Joint Terrorism Task Force. After last year pressuring Mayor Ed Lee into vetoing a strong oversight measure and signing a weaker version, the SFPD last week issued a required report that activists are slamming as “grossly inadequate.”

The Coalition for a Safe San Francisco – which includes civil libertarians and members of Muslim groups and other targets of racial and religious profiling by the FBI – last May stood with Police Chief Greg Suhr and sponsoring Sup. Jane Kim as Lee signed what they called this “historic civil rights legislation.”

But at the time, the activists told the Guardian that the value of the watered-down legislation depended entirely on how it was implemented, particularly in the annual reports on SFPD-FBI operations that it required. To ensure they were specific enough to be meaningful, the coalition says it communicated with Suhr several times asking him to include the number of joint investigations undertaken, how many times FBI requests were denied by the SFPD, and possible violations of department policy and how they were handled.

Instead, when Deputy Chief John Loftus gave the first of these annual reports to the Police Commission on Jan. 23, he spoke for only a couple minutes and said the SFPD was in “full compliance” with the ordinance and a Suhr general order banning surveillance of law-abiding citizens, offering no further details.

“We were very clear with the chief about what we expected to see,” Nadia Kayyali of the Bill of Rights Defense Committee, a coalition member, told the Guardian. She also said the report “was slipped on the agenda at the last minute,” despite assurances that the coalition would be notified and given a chance to respond. “It does show a lack of regard for the ordinance and the work that went into it.”

The activists say that Suhr broke his promise to them to include the more specific information that they sought, even after they recently followed up with messages reminding him about that assurance. “I was in the meeting where he said he would,” Nasrina Bargzie with the Asian Law Caucus, another coalition member, told us. Bargzie said she was disappointed and dismayed by what the report included, “but we’re going to keep pushing on it.”

The controversy surrounding possible SFPD-FBI spying on people who haven’t violated any laws – which is illegal under local and state law – broke almost two years ago when the American Civil Liberties Union obtained a secret 2007 SFPD-FBI memorandum of understanding placing SFPD officers under FBI command. It seemed to bypass local restrictions adopted after past SFPD scandals involving police spying on political groups.

Suhr tried to quell the controversy by issuing a general order banning officers from participating in surveillance that violates local rules or the state constitution’s privacy protections, but activists pushed for a stronger assurance. The Board of Supervisors then voted 6-5 to codify those protections into city law, but Suhr objected and Lee vetoed the measure. A weaker version calling for annual reports and Police Commission reviews of future SFPD-FBI MOUs was approved unanimously by the board.

Now, it appears the SFPD has done little to soften the “trust us” stance that it has taken from the beginning, frustrating activists who had pushed for more, here and in other cities that do domestic surveillance with the FBI.

“These policies are explicit and unequivocal. San Francisco Police Department members and their Joint Terrorism Task Force supervisors are aware of and familiar with these policies,” Loftus told the commission, explaining that the SFPD did its required quarterly reviews in November and two weeks ago, finding nothing to report.

Police Commissioner Suzy Loftus asked if he could “explain a bit more” and Suhr – who was at the stand giving his report as Deputy Chief Loftus (no relation) gave his from the lectern – answered: “All San Francisco police officers are held to the San Francisco Police Department policies and procedures and the policies and laws of San Francisco, whichever is more strict. So depending on wherever they are, their fallback, if you will, is whatever the policies, procedures, laws, ordinances, and all of San Francisco.”

Suhr’s answer seemed to satisfy the commission, which defended the SFPD’s secretive approach rather than asking any more questions.

“Our officers will not participate in any investigation unless there is a predicate offense that is a violation of the California Penal Code or the United States code, so they will not be involved in random surveillance or random assessments or talking to people,” Commission President Thomas Mazzucco said.

Commissioner Joe Marshall also said he trusts Suhr and we all should too: “I want the public to feel reassured that when the chief says that’s going to be the way it is, that’s the way it is.”

But the coalition, which includes 79 organizations, was less than satisfied with that answer. In a statement issued today, it wrote, “Deputy Chief Loftus’ report completely failed to provide the information required to ensure the accountability and transparency required under the Safe San Francisco Civil Rights Ordinance. The Coalition calls on the Chief of Police to promptly issue a public written report containing the information he promised he would provide.”

Neither Kim – who sponsored both the original legislation and weaker alternative – nor the SFPD have returned Guardian calls for comment yet, but I’ll update this post if and when they do. You can watch the hearing yourself here, with that item beginning at the 48:20 mark.

 

Housing stability for all

9

OPINION San Francisco is in the midst of a housing affordability crisis. It’s way too expensive to live here, and for those fortunate enough to have housing they can afford, we need to provide stability. This need for housing stability applies to renters as well as homeowners. If we’ve learned anything from the foreclosure crisis, homeowners are not all rich, and they are not all stable in their housing.

Last week’s Guardian argued against legislation I’m co-sponsoring, which provides one-time relief to owners of tenancies-in-common (TICs) — mostly middle- and working-class first-time homeowners who reside in their units — while providing strong protection to renters. While the editorial correctly stressed the need to support rent control, it failed to acknowledge the need to support housing stability for homeowners as well.

Rent control is one of the pillars of our city. It stabilizes housing prices, recognizes that housing isn’t just another commodity, keeps communities intact, and helps maintain San Francisco’s diverse fabric. I’ve long supported rent control, as reflected by my voting record. I supported a series of rent control measures designed to reduce evictions, including requiring sales disclosure of a unit’s eviction history, requiring increased relocation benefits to evicted tenants, outlawing harassment of tenants, and restricting use of the Ellis Act by real-estate speculators. As a member of the Board of Supervisors, I authored successful legislation to ban conversion of rent-controlled units to student dorms and to provide temporary affordable units to renters displaced by disasters.

The current legislation I’m co-sponsoring will provide needed relief to struggling TIC owners, many of whom are experiencing serious financial distress, while protecting the small number of tenants who live in these units. TIC owners have group mortgages, meaning that if one owner defaults, all owners default. They pay double the interest rate other homeowners pay and usually cannot refinance. The legislation will allow them to convert their units to condos and obtain their own mortgages, at lower rates and less foreclosure risk.

While some caricature TIC owners as speculators and wealthy people, that’s untrue. Many TIC owners are quite middle class, former renters who scraped together a down payment to purchase a home. Many are teachers, social workers, public employees, and other workers who are anything but speculators. These are people who, if they didn’t own TICs, would be renting. They aren’t Martians who dropped out of the sky. They’re our neighbors, co-workers, and fellow San Franciscans. They are part of the city’s fabric.

Under the legislation, owner-occupied TICs that are in the condo lottery will be able to convert to condos by paying a fee of $20,000 per unit, with the proceeds dedicated to affordable housing. Buildings with Ellis Act and other problem evictions are typically prohibited from condo converting in San Francisco, under a 2006 law, and that restriction applies to this legislation. In other words, this legislation won’t encourage Ellis Act evictions. Moreover, buildings that aren’t owner-occupied can’t condo convert. Nor can buildings with more than six units. The legislation is one-time in nature and not an ongoing invitation to condo convert.

The legislation covers very few units with tenants — 85% are owner-occupied — and protects this small number of tenants by mandating they receive lifetime leases, with full rent and eviction controls identical to our rent control laws. This protection is stronger than what most tenants receive in buildings that win the condo lottery currently.

Renters and homeowners both deserve housing stability. This legislation moves us in that direction.

Supervisor Scott Wiener represents District 8.